renewal terms. As President and Chief Executive Officer, Mr. Hicks will receive a base salary of not less than $1.1 million annually. During the employment term, Mr. Hicks will be entitled to participate in all bonus, incentive and equity plans maintained by the Company for senior executives. For fiscal years after the 2009 fiscal year, Mr. Hicks’s annual bonus at target under the Company’s Annual Incentive Compensation Plan (the “Annual Bonus Plan”) will be 125 percent of his then-current base salary. His long-term bonus at target under the Company’s Long-Term Incentive Compensation Plan (the “Long-Term Bonus Plan”) for any three-year performance period will be 90 percent of his base salary at the beginning of such performance period. For the 2009 fiscal year ending January 30, 2010, Mr. Hicks will be paid a pro-rated annual bonus, which shall not be less than an amount equal to 125 percent of the base salary paid to him during the period of August 17, 2009 to January 30, 2010.

               (c) During the employment term, Mr. Hicks will be eligible to participate in all pension, welfare, and fringe benefit plans, as well as perquisites maintained by the Company from time to time for senior executives, including the following: (i) Company-paid life insurance in the amount of his base salary; (ii) long-term disability insurance coverage of $25,000 per month; (iii) out-of-pocket medical expense reimbursement of up to $7,500 annually; (iv) reimbursement for financial planning expenses of up to $15,000 during the first year of the employment period and up to $7,500 annually thereafter; (v) participation in the Company’s Supplemental Executive Retirement Plan; (vi) reimbursement for the difference between the monthly cost of participation in the Company’s medical and dental insurance plans and the amount Mr. Hicks pays his former employer for continued coverage under COBRA for the period beginning with his employment commencement date and the date he becomes eligible to participate in the Company’s medical and dental plans; (vii) reimbursement of up to $15,000 for legal fees in connection with his employment agreement; (viii) automobile expense reimbursement for up to $40,000 annually; and (ix) reimbursement for car service for transportation within the New York metropolitan area.

               (d) Within 30 days of the commencement of his employment, Mr. Hicks will be granted (i) 100,000 shares of restricted stock, which shall vest on January 31, 2013, subject to Mr. Hicks’s continued employment as Chief Executive Officer, and (ii) an option to purchase 300,000 shares of the Company’s common stock at the fair market value on the date of grant, such option to vest in three equal annual installments beginning on the first anniversary of the date of grant. In addition, as a bonus in connection with executing his employment agreement and as an inducement to commence employment, (a) within 30 days of the commencement of his employment, Mr. Hicks will be granted an award of 400,000 shares of restricted stock, which will vest: 100,000 shares on January 31, 2011, 100,000 shares on January 31, 2012, and 200,000 shares on January 31, 2013, subject to Mr. Hicks’s continued employment as Chief Executive Officer, and an option to purchase 300,000 shares of the Company’s common stock at the fair market value on the date of grant, which will vest: 150,000 shares on the sixth-month anniversary of the date of grant and 150,000 shares on the one-year anniversary of the date of grant, subject to Mr. Hicks’s continued employment as Chief Executive Officer; and (b) Mr. Hicks will be paid the sum of $2 million, subject to

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