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Related Party Transactions
 12 Months Ended
Feb. 02, 2013
Related Party Transactions  
Related Party Transactions

7.     Related Party Transactions

  • Purchases of Common Stock by the Company's Chief Executive Officer

        Pursuant to the employment agreement with the Company's Chief Executive Officer, Henry Stupp, (i) on August 26, 2010, Mr. Stupp purchased 81,967 shares of common stock at a per share price of $18.30 (which was equal to the closing price of Cherokee's common stock on such date), for aggregate proceeds of $1.5 million and (ii) on July 28, 2011, Mr. Stupp purchased 12,562 shares of Cherokee's common stock at a per share price of $15.92 (which was equal to the closing price of Cherokee's common stock on such date), for aggregate proceeds of approximately $0.2 million.

  • Separation of the Former Executive Chairman

        On January 28, 2011, Robert Margolis resigned his positions as Executive Chairman and as a director of Cherokee. In connection with Mr. Margolis' resignation from Cherokee, Mr. Margolis and Cherokee entered into a Separation Agreement and General Release of all Claims (the "Separation Agreement"), dated January 28, 2011. Pursuant to the Separation Agreement: (i) Cherokee repurchased 400,000 shares of common stock from Mr. Margolis' affiliates at a per share price of $18.15, or $7.3 million in total; (ii) Cherokee paid Mr. Margolis a lump sum severance payment of an aggregate of $2.3 million; (iii) in early April 2011, Mr. Margolis was paid his final annual performance bonus of approximately $1.8 million for Fiscal 2011 in accordance with the management agreement previously governing the terms of Mr. Margolis' services to the Company; (iv) the vesting on Mr. Margolis' outstanding option to purchase up to 100,000 shares of Cherokee's Common Stock was accelerated; and (v) the management agreement previously governing the terms of Mr. Margolis' services to the Company was terminated. Mr. Margolis' Fiscal 2011 bonus was paid in early April 2011, and the Company does not have any further payment obligations to him.