UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

 


 

FORM 8-K

 

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported):  December 29, 2017

 

THE BON-TON STORES, INC.

(Exact name of registrant as specified in its charter)

 

Pennsylvania

 

0-19517

 

23-2835229

(State or Other Jurisdiction
Of Incorporation)

 

(Commission
File
Number)

 

(IRS Employer
Identification No.)

 

2801 E. Market Street, York, Pennsylvania 17402

(Address of principal executive offices, zip code)

 

(717) 757-7660
Registrant’s telephone number, including area code

 

Not Applicable

(Former Name or Former Address, If Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).  Emerging growth company o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 

 

 



 

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

 

On December 29, 2017, The Bon-Ton Stores, Inc. (the “Company”) accepted the resignation of its Executive Vice President - Chief Financial Officer, Nancy A. Walsh, effective January 22, 2018. Ms. Walsh is leaving the Company to accept a position as chief financial officer of a specialty retailer of decorative home furnishings and gifts. In connection with her resignation, Ms. Walsh has repaid the amount of the retention award paid to her by the Company in November 2017.

 

The Company also announced that Michael G. Culhane, age 55, joined the Company on January 2, 2018, to be the Executive Vice President — Chief Financial Officer.  Mr. Culhane will have responsibility for Accounting, Treasury, Tax, Credit, Investor Relations, Legal and Internal Audit. Mr. Culhane has held a variety of financial leadership roles, primarily in the department store industry, throughout his career. He most recently served as President and co-founder of TMAG, Inc., a firm providing CFO consulting services, from November 2016 to the present. Mr. Culhane served as Chief Financial Officer of Fareportal, Inc., an on-line travel booking provider, from April 2015 to October 2016.  From 2009 to 2014, he served as the Chief Financial Officer of Hudson’s Bay Company. Mr. Culhane served as the Chief Financial Officer and Executive Vice President of Lord & Taylor from 2004 to 2009 and held other executive financial positions with the May Department Stores Company from 1997 to 2004.  Additionally, he held several roles, including Partner with Arthur Andersen LLP from 1984 to 1997. Mr. Culhane holds a Bachelor of Business Administration degree from the University of Wisconsin-Madison. He is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants.

 

The Company and Mr. Culhane entered into an offer letter dated December 29, 2017 (the “Offer Letter”) and effective as of January 2, 2018 (the “Effective Date”). Mr. Culhane will assume his role with the Company on the Effective Date.

 

The Offer Letter does not provide for a term of employment and provides for an initial base salary of $600,000 per year. The Offer Letter also provides that Mr. Culhane will be paid a signing bonus of $600,000 on the Effective Date. The signing bonus is paid subject to an Agreement dated January 2, 2018. The Agreement provides that Mr. Culhane is paid a cash award (the “Award”) that is subject to repayment if Mr. Culhane’s employment is terminated under certain circumstances prior to January 1, 2019. In the event that his employment is terminated prior to January 1, 2019 due to a termination by the Company for “Cause” (as defined in the Agreement) or any termination by him other than for “Good Reason” (as defined in the Agreement), Mr. Culhane must repay to the Company the entire amount of the Award.  In the event that his employment by the Company is terminated prior to January 1, 2019 due to his death or disability, a termination by the Company without Cause or a termination by him for Good Reason, Mr. Culhane is not obligated to repay to the Company any amount of the Award.

 

The Offer Letter provides that Mr. Culhane will be eligible for a bonus under The Bon-Ton Stores, Inc. Amended and Restated Cash Bonus Plan under the following parameters: a target bonus of 75% of base salary, a threshold bonus of 37.5% of base salary, and a maximum bonus of 150% of base salary.

 

The Company has agreed to reimburse Mr. Culhane for commuting expenses up to $50,000 for each calendar year.

 

Mr. Culhane will also be eligible to participate in the Company’s health plans and other plans and programs generally available to the Company’s employees and executives. He will also be entitled to participate in The Bon-Ton Stores, Inc. Executive Severance Pay Plan (the “Severance Plan”) pursuant to which, if Mr. Culhane’s employment is terminated without cause or in the event he resigns for good reason, he will be entitled to a cash severance benefit equal to one times his annual base salary. Upon a qualifying termination, Mr. Culhane would be eligible to receive a cash stipend equal to the amount he is required to pay under COBRA in order to maintain the medical and dental insurance coverage he is receiving at the date of his termination for one year. In order to receive these payments, Mr. Culhane must, among other things, execute and deliver to the Company a Confidentiality, Non-Competition and Non-Solicitation Agreement.

 

2



 

The description of the material terms of the Offer Letter and the Agreement set forth herein are qualified in their entirety by the Offer Letter and the Agreement, which are attached to this Current Report on Form 8-K as Exhibit 10.1 and Exhibit 10.2, respectively, and incorporated herein by reference. The full text of the press release is attached hereto as Exhibit 99.1.

 

Item 9.01 Exhibits

 

Exhibit Number

 

Description

 

 

 

10.1

 

Offer Letter Dated December 29, 2017

 

 

 

10.2

 

Agreement dated January 2, 2018 

 

 

 

99.1

 

Press Release issued January 3, 2018 announcing the resignation of Ms. Walsh and the election of Mr. Culhane

 

3



 

EXHIBIT INDEX

 

Exhibit

 

 

Number

 

Description of Exhibit

 

 

 

10.1

 

Offer Letter Dated December 29, 2017

 

 

 

10.2

 

Agreement dated January 2, 2018 

 

 

 

99.1

 

Press Release issued January 3, 2018 announcing the resignation of Ms. Walsh and the election of Mr. Culhane

 

4



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

THE BON-TON STORES, INC.

 

 

 

 

 

By:

/s/ Nancy A. Walsh

 

 

 

Nancy A. Walsh

 

 

Executive Vice President — Chief Financial Officer

 

 

 

Dated: January 3, 2018

 

5


Exhibit 10.1

 

 

December 29, 2017

 

Mike Culhane

 

Dear Mike,

 

I am pleased to extend an offer of employment to join The Bon-Ton Stores, Inc., as EVP, Chief Financial Officer reporting to Bill Tracy, President & Chief Executive Officer.

 

In recognition of your responsibilities, your base salary will be $600,000 annually, paid according to the established bi-weekly payroll calendar.

 

Unless otherwise agreed upon, we would anticipate your start date to be January 2, 2018. Your base office will be located in York, Pennsylvania.

 

In addition, you will be paid a $600,000 signing bonus on your start date.

 

If you terminate your employment of your own accord or are terminated for cause within 12 months of your start date, you will be responsible for reimbursing Bon-Ton in full the net amount of the signing bonus as per the terms of a separate agreement.

 

Performance Incentive Program

According to the Cash Bonus Plan currently in place, your target bonus is 75% of base salary, a threshold of 37.5%, and a maximum of 150% for achievement of pre-determined objectives. The objectives for your position as currently defined are 70% Company adjusted EBITDA to plan and 30% on Company sales dollars to plan. Payouts at threshold or above are made upon the achievement of the minimum company Net Income threshold, as well as the achievement of your individual metrics.

 

Each year the metrics and payouts are evaluated and approved by the Human Resource Compensation Committee (HRCC) of the Board of Directors. As we discussed, this plan is subject to cancellation or change.

 

Commuting & Relocation Expenses

Expenses defined as commuting by our Tax department will be reimbursed up to $50,000 for each calendar year. Commuting expenses are expected to be airfare, overnight accommodations, and transportation to and from your defined base office and your home. This will not include meals. Commuting expense are defined by the IRS as taxable income. You will be responsible for all taxes as it applies to your commuting expenses.

 

Performance Appraisals

Performance Appraisals are conducted annually and based on results for the previous fiscal year. You will be eligible for a performance review and merit increase for your 2018 performance in May 2019.

 

331 West Wisconsin Avenue, Milwaukee, WI 53211

 



 

Benefits

You will be eligible to participate in our medical/prescription, dental, vision, supplemental life, long-term disability, and group legal plans on the 1st day after your 90th day of employment.

 

In order to assist in your transition to the Company sponsored medical, vision, and dental programs, we will provide you reimbursement in the form of a lump sum for the difference between your current insurance payments and the Bon-Ton medical premium, until otherwise qualified under the Bon-Ton plan.

 

Vacation

You will be eligible for five (5) weeks of vacation plus two (2) personal days. Because these exceptions are made on a case by case basis, we ask you to treat this exception as confidential.

 

Executive Severance Plan

As an Executive Vice President you are eligible to participate in our Executive Severance Plan. According to this plan, if your employment is terminated without cause or you resign for good reason, you will be provided one year of severance net of any pay from another employer, and a COBRA stipend (for one year or until otherwise qualified for health insurance by another employer) in exchange for the execution of a release of waiver and claims. In order to be covered by the Executive Severance Plan you are required to sign and not rescind a Non-Compete/Non-Solicitation agreement. Please find accompanying this letter a copy of these agreements for your review. As we discussed, this plan is subject to cancellation or change.

 

Indemnity

The Company will maintain a Directors and Officers insurance policy and include provisions or side letter providing coverage for payment of legal fees each month as incurred. A summary of the policy or a copy of the policy and any side letter will be provided to you prior to the start date of your employment. In addition, the Company agrees to defend, indemnify and hold you harmless from and against any and all claims, liabilities, lawsuits, costs and expense (including attorney fees) related to your acts or omissions during your employment excluding any proven fraud or criminal acts by you.

 

Acceptance

Given you accept our offer and the information provided, please sign, date, and return one copy of the offer to me. We look forward to your future success on the Bon-Ton team!

 

 

Sincerely,

 

THE BON♦TON STORES, INC.

 

 

 

/s/ Denise M. Domian

 

Denise M. Domian

 

SVP, Human Resources

 



 

ACKNOWLEDGEMENT:

 

Please return a signed and dated copy of this letter to me.

 

/s/ Michael G. Culhane

 

 

Signature

Michael G. Culhane

 

Date

 


Exhibit 10.2

AGREEMENT THIS AGREEMENT (this "Agreement") is entered into and effective as of January [Z], 2018 (the "Effective Date"), by and between The Bon-Ton Depmiment Stores, Inc., a Pellllsylvania corporation (the "Company"), and Michael Culhane, a prospective employee of the Company ("Employee"). RECITALS A. The Company has determined that (i) Employee's past performance of his duties as Chief Financial Officer and a senior financial executive for many department store companies has been and continues to be exceptional and will be highly valuable to the Company and (ii) Employee's undertaking of his duties as Chief Financial Officer of the Company will be critically important to the Company's ability to manage successfully its business and all activities and endeavors necessary therefor and ancillary thereto, particularly in light of the challenging business environment facing the Company. B. The Company desires to induce Employee to enter into this Agreement in view of his extensive expertise and experience and to assure itself of Employee's services for an extended period of time by paying Employee a cash award in the amount of $600,000.00 (the "Award") that is subject to repayment by Employee if Employee's employment with the Company is terminated under certain circumstances prior to the expiration of the Retention Period (as defined herein), as provided for in this Agreement. AGREEMENT NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, the Company and Employee agree as follows: I. Definitions. For purposes of this Agreement: (a) "A ffiliate" shall mean a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified. (b) "Cause" shall mean: (i) Employee's willful failure to perform Employee's duties (other than any such failure resulting from incapacity due to physical or mental illness); (ii) Employee's continuous willful failure to comply with any valid and legal directive of the individual to whom Employee reports or the Board of Directors of the Company (the "Board") or a committee of the Board; (iii) Employee's willful engagement in dishonesty, illegal conduct, or gross misconduct that is, in each case, materially injurious to the Company or its affiliates;

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(iv) Employee's embezzlement, misappropriation, or Jl·aud, whether or not related to Employee's employment with the Company; (v) Employee's conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony (or state law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude, if such felony or other crime (A) is work-related, (B) materially impairs Employee's ability to perform services for the Company or (C) in the reasonable judgment of the Company, has resulted or will result in material reputational or financial harm to the Company or its affiliates; or (vi) Employee's material breach of any obligation under this Agreement, if such breach causes material reputational or financial harm to the Company. For purposes of this Agreement, no act or failure to act on the part of Employee shall be considered "willfhl" unless it is done, or omitted to be done, by Employee in bad faith or without reasonable belief that Employee's action or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by Employee in good faith and in the best interests of the Company. Fmihennore, a termination of Employee's employment shall not be deemed for Cause unless and until the Company delivers to Employee a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the Board (after reasonable written notice is provided to Employee and Employee is given an opportunity, together with counsel, to be heard before the Board), finding that Employee has engaged in the conduct described in any of clauses (i)-(vi) above. Except for an action or breach described in clause (iv) or (v) above, or any other failure, breach, or refusal that, by its nature, cannot reasonably be expected to be cured, Employee shall have ten (I0) business days from the delivery of written notice by the Company within which to cure any acts or omissions constituting Cause, and the determination of whether such attempted cure is sufficient shall be in the Company's sole discretion; provided however, that if the Company reasonably expects irreparable injury or material reputational or financial harm from a delay of ten (I0) business days, the Company may give Employee notice of such shmier period within which to cure as is deemed reasonable by the Board under the circumstances, which may include the termination of Employee's employment without notice and with immediate effect. The Company may place Employee on paid leave for up to thirty (30) days while it is determining whether there is a basis to terminate Employee's employment for Cause. The placement of Employee on paid leave for up to thirty (30) days in such circumstances shall not constitute Good Reason. (c) "Code" shall mean the Internal Revenue Code of 1986, as amended. (d) "Disability" shall mean Employee is entitled to receive long-term disability benefits under the Company's long-term disability plan, or if there is no such plan, Employee's inability, due to physical or mental incapacity, to substantially perform Employee's duties and responsibilities for one hundred eighty (180) days out of any three hundred sixty-five (365) day period or one hundred twenty (120) consecutive days; provided however, in the event that the Company temporarily replaces Employee, or transfers Employee's duties or 2

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responsibilities to another individual on account of Employee's inability to perform such duties due to a mental or physical incapacity that is, or is reasonably expected to become, a Disability, then Employee's employment shall not be deemed terminated by the Company, and Employee shall not be able to resign for Good Reason as a result thereof. Any question as to the existence of Employee's Disability as to which Employee and the Company cam10t agree shall be determined in writing by a qualified independent physician mutually reasonably acceptable to Employee and the Company. If Employee and the Company cannot agree as to a qualified independent physician within fifteen (15) days, each shall appoint such a physician and those two physicians, within fifteen (15) days, shall select a third, who, within thirty (30) days, shall make such determination in writing. The determination of Disability made in writing to the Company and Employee shall be final and conclusive for all purposes of this Agreement. (e) "Good Reason" shall mean the occurrence of any of the following during the Retention Period, in each case without Employee's written consent: (i) a reduction in Employee's base salary; (ii) a relocation of Employee's principal place of employment by more than 50 miles; (iii) any material breach by the Company of any material provision of this Agreement or any material provision of any other agreement between Employee and the Company; (iv) the Company's failure to obtain an agreement from any successor to the Company to assume and agree to perform this Agreement in the same mmmer and to the same extent that the Company would be required to perform if no succession had taken place, except where such assumption occurs by operation of law; or (v) a material, adverse change in Employee's title, authority, duties, or responsibilities (other than temporarily while Employee is physically or mentally incapacitated) as of the date of this Agreement. For purposes of this Agreement, Employee's termination of his employment shall not be deemed for Good Reason unless Employee has provided written notice to the Company (a "Notice") of the existence of the circumstances providing grounds for termination for Good Reason within ninety (90) days of the later of (i) the initial existence of such circumstances and (ii) Employee's actual knowledge of the existence of such circumstances, and the Company has had at least thi1ty (30) days from the date on which such notice is provided to cure such circumstances. If Employee does not (i) provide a Notice of the existence of the circumstances providing grounds for termination for Good Reason within ninety (90) days of the later of (A) the initial existence of such circumstances or (B) Employee's actual knowledge of the existence of such circumstances, or (ii) terminate employment for Good Reason within sixty (60) days following Employee's delivery of a Notice to the Company (where the Company has not cured the circumstances providing such grounds for termination for Good Reason within thirty (30) days of the date of Employee's delivery of such Notice), then Employee will be deemed to have waived Employee's right to terminate for Good Reason with respect to such grounds. 3

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(f) on January I, 2019. "Retention Period" shall commence on the Effective Date and terminate (g) "Termination Date" shall mean the elate on which Employee's employment by the Company is terminated. 2. Duties. Except as specifically provided in Section 3(b) below, in order to retain the Award, Employee agrees that, during the Retention Period, Employee shall perform fully the terms of this Agreement and Employee's duties for the Company. 3. Award; Termination of Employment. (a) Award. On the Effective Date, the Company shall pay Employee, in cash in a single lump sum, an amount equal to the Award, less all applicable withholdings and deductions required by law. (b) Repayment of Award upon Termination. In the event that Employee's employment is terminated prior to the end of the Retention Period due to (x) a termination by the Company for Cause or (y) any termination by Employee other than for Good Reason, Employee must repay to the Company within sixty (60) days of the Termination Date the entire, gross amount of the Award. In the event that Employee's employment by the Company is terminated prior to the end of the Retention Period due to (i) Employee's death, (ii) Employee's Disability, (iii) a termination by the Company without Cause, or (iv) a termination by Employee for Good Reason, Employee shall not be obligated to repay to the Company any amount of the Award. For the avoidance of doubt, Employee's retirement from the Company without Good Reason shall constitute a termination by Employee other than for Good Reason for purposes of this Agreement and require the repayment of the Award pursuant to this Section 3(b). Except as may be limited by Section 409A of the Code, the parties acknowledge and agree that the Company may, subject to a judicial determination as to Employee's obligation to repay the Award, offset any amounts owed to the Company by Employee pursuant to Employee's repayment obligations under this Section 3(b) against any amounts owed to Employee by the Company as of or following the Termination Date. 4. Legal Fees and Expenses. If (i) either party commences any proceeding, action, or litigation against the other pmiy concerning the terms of this Agreement or the rights and duties of the pmiies hereto or for the breach of this Agreement by the other party of any of the terms hereof and (ii) Employee shall prevail in such proceeding, action, or litigation, in addition to any other relief granted, Employee shall be entitled to recover all costs and expenses incurred by Employee in connection with responding to and prosecuting or defending such action and the enforcement and collection of any judgment rendered therein, inch1ding without limitation all out-of-pocket expenses, court costs, administrative fees, attorneys' fees, consultant fees, expert witness fees, personnel expenses, duplicating expenses, and other related expenses that are associated with Employee's enforcement of his legal rights under this Agreement (including all such costs, fees, and expenses incurred in all appeals) and a right to such costs and expenses shall be deemed to have accrued upon the commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. 4

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Covenants. 5. (a) Non-Solicit. While Employee is employed by the Company and following the termination of Employee's employment for any reason and continuing for a period of twelve (12) months from the Termination Date, Employee shall not, directly or indirectly, for Employee or on behalf of, or in conjunction with, any other person, persons, company, partnership, corporation, business entity, or otherwise, hire away any employees or independent contractors of the Company or any Affiliate or entice any such persons to leave the employ of the Company or any affiliate without the prior written consent of the Company. (b) Non-Disparagement. While Employee is employed by the Company and at all times following the termination of Employee's employment for any reason, Employee shall not, directly or indirectly, for Employee or on behalf of, or in conjunction with, any other person, persons, company, partnership, corporation, business entity, or otherwise, make any statements that are inflammatory, detrimental, slanderous, or negative in any way to the interests of the Company or any affiliate. (c) Confidentiality. Employee acknowledges that, during the course of his employment by the Company, he has and will continue to have access to the Company's Confidential Information. Employee agrees not to use or disclose to any person or entity, at any time, any Confidential Information of Employee without first obtaining the Company's written consent. The term "Confidential Information" means any information not generally known to the public that concerns the Company's business or proposed future business and that gives or is intended to give the Company an advantage over its competitors who do not have the information. 6. Successors. (a) Assignment by Employee. TlJ.is Agreement is personal to Employee and, without the prior written consent of the Company, shall not be assignable by Employee otherwise than by will or the laws of descent and distribution. TIJ.is Agreement shall inure to the benefit of and be enforceable by Employee's legal representatives. (b) Assignment by the Company. This Agreement shall inure to the benefit of and be binding upon the Company and its successors. The Company shall require any successor to all or substantially all of the business or assets of the Company, whether direct or indirect, by purchase, merger, consolidation, acquisition of stock, or otherwise, expressly to assume and agree to perform tlJ.is Agreement in the same manner and to the same extent as the Company would be required to perform if no such succession had taken place. 7. Miscellaneous. (a) Impact of Award on Other Benetit Plans. The parties hereto agree that the Award to be paid by the Company pursuant to this Agreement (i) shall be considered a bonus, and hence not compensation, for purposes of the Company's benefit plans and programs (ii) shall not be construed as compensation or otherwise taken into account, for purposes of determining any benefits provided under any other compensation arrangement or benetit plan, 5

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practice or policy maintained by the Company or any of its subsidiaries for any of its or their respective employees. (b) Applicable Law. This Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of Pennsylvania, applied without reference to its principles of conflict of laws. (c) Jurisdiction and Venue. Each party irrevocably submits to the exclusive jurisdiction of any state or federal court sitting in York, Pennsylvania, for the purposes of any suit, action, or other proceeding arising out of or relating to tllis Agreement and agrees that all claims in respect of the suit, action, or other proceeding shall be heard and determined in any such court. Each party agrees to commence any such suit, action, or other proceeding in any such state or federal court sitting in York, Pennsylvania. Each party waives any defense of improper venue or inconvenient forum to the maintenance of any suit, action, or other proceeding so brought. Each party waives its right to a jury trial with respect to any action, or claim arising out of any dispute in connection with this Agreement, any rights or obligations hereunder, or the performance of such rights and obligations. (d) Amendments. Tllis Agreement may not be amended or modified other than by a written agreement executed by the parties hereto or their respective successors and legal representatives. (e) Entire Agreement. This Agreement shall constitute the entire agreement between the parties hereto with respect to the matters referred to herein and shall supersede all prior or existing agreements between the parties hereto with respect to such matters. There are no promises, representations, inducements, or statements between the parties other than those that are expressly contained herein. In the event that any provision of this Agreement is invalid or unenforceable, the validity and enforceability of the remaining provisions hereof shall not be affected. Employee is entering into this Agreement of his own free will and accord and has read this Agreement and understands it and its legal consequences. Notices. All notices and other communications hereunder shall be in (!) writing and shall be given by hand delivery to the other pmiy or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: If to Employee: To the most recent address on file at the Company The Bon-Ton Department Stores, Inc. 2801 East Market Street York, Pennsylvania 17402 Attention: Cllief Executive Officer If to the Company: or to such other address as either party shall have furnished to the other in writing in accordance herewith. Notices and communications shall be effective when actually received by the addressee. 6

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(g) Counterparts. This Agreement may be executed in separate counterparts, including by facsimile and electronic delivery, each of which is deemed to be an original and all of which taken together constitute one and the same agreement. (h) Section 409A Compliance. The parties intend that all amounts payable under this Agreement comply with Section 409A of the Code or an exemption therefrom, including regulations and guidance thereunder, so as not to subject Employee to the payment of any additional taxes, penalties, or interest imposed under Section 409A with respect to amounts paid under this Agreement or any other agreement or arrangement between the pmiies. The pm1ies agree to amend this Agreement to the extent necessary to bring this Agreement into compliance with Code Section 409A (or to meet an exemption therefrom) as it may be interpreted by any regulations, guidance, or amendments to Section 409A issued or adopted after the date of this Agreement. Nothing in this Agreement shall be interpreted to permit (i) accelerated payment of nonqualified deferred compensation, as defined in Section 409A, (ii) any other payment in violation of the requirements of Section 409A, or (iii) Employee to designate the taxable year of any payment. No provision of this Agreement shall be interpreted or construed to transfer any liability for failure to comply with the requirements of Section 409A from Employee or any other individual to the Company or any Affiliate, employee, or agent. All taxes imposed on or associated with payments made to Employee pursuant to this Agreement, including any liability imposed under Section 409A (but excluding the employer portion of any payroll taxes), shall be borne solely by Employee. (i) Confidentiality. Notwithstanding any disclosure by the Company of the fact or content of this Agreement, whether in whole or in part, Employee hereby covenants and agrees that Employee shall keep confidential this Agreement and the terms hereof, including the eligibility for the Award and the amount thereof, except as required by applicable law. [Signature Page Follows] 7

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IN WITNESS WHEREOF, Employee and the Company have each executed or caused the execution of this Agreement, as applicable, as of the Effective Date. COMPANY: THE BON-TON DEPARTMENT STORES, INC. By: -"a:Z:ac&.dz2ua:.,..,-· Denise M. Domian SVP, Human Resources EMPLOYEE: Michael Culhane [Signatm·e Page of this Agrecmentl

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Exhibit 99.1

 

 

The Bon-Ton Stores, Inc. Names Michael Culhane as Chief Financial Officer

 

YORK, PA—January 3, 2018 — The Bon-Ton Stores, Inc. (OTCQX: BONT) today announced the appointment of Michael Culhane to the position of Executive Vice President, Chief Financial Officer of the Company, effective immediately. Mr. Culhane will be responsible for Accounting, Treasury, Tax, Credit, Investor Relations, Legal and Internal Audit.  He succeeds Nancy Walsh, who is leaving the Company effective as of January 22, 2018, to take a position at another company.

 

Mr. Culhane brings more than 30 years of finance and accounting experience and a deep knowledge of the retail industry to Bon-Ton, having held several roles at retail companies throughout his career, including as Chief Financial Officer.  He was most recently President and Co-founder of TMAG, Inc., providing CFO consulting services.  Prior to TMAG, Inc., he served as Chief Financial Officer at Hudson’s Bay Company and has also held various executive roles with Lord & Taylor and May Department Store Group.  Mr. Culhane has a B.B.A. in Accounting from the University of Wisconsin-Madison.

 

Commenting on Mr. Culhane’s appointment, Bill Tracy, President and Chief Executive Officer, said, “We are very pleased to welcome Mike to our executive leadership team. We look forward to leveraging his extensive financial expertise and significant department store retail experience as we continue to execute on our initiatives to drive improved performance and strengthen our financial position. We are confident he will be an asset to our team as we continue to engage with our debt holders in our efforts to establish a sustainable capital structure for the Company.”

 

Mr. Tracy continued, “On behalf of the entire Board and management team, I want to thank Nancy for her service and many contributions as CFO over the past two years. We wish her all the best in her future endeavors.”

 



 

About The Bon-Ton Stores, Inc.

 

The Bon-Ton Stores, Inc., with corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin, operates 260 stores, which includes nine furniture galleries and four clearance centers, in 24 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers nameplates. The stores offer a broad assortment of national and private brand fashion apparel and accessories for women, men and children, as well as cosmetics and home furnishings. The Bon-Ton Stores, Inc. is an active and positive participant in the communities it serves. For further information, please visit http://investors.bonton.com.

 

CONTACT:

Christine Hojnacki

414-347-5329

Christine.hojnacki@bonton.com

 

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