Document:

Exhibit
10.2

 

SAMSONITE
CORPORATION

11200
East 45th Avenue

Denver,
Colorado  80239

 

 

 

May 12, 2005

 

Mr. Marcello Bottoli

 

Re: 
Employment and Management Agreements

 

Dear Mr. Bottoli:

 

With reference to your employment agreement
with Samsonite Corporation (the “Company”) originally dated March 3,
2004, as amended on or about the date hereof (the Employment Agreement”),
and your separate management agreement with Samsonite Europe N.V., dated on or
about the date hereof (the “Management Agreement”), this will confirm
our understanding that, notwithstanding the terms of the Management Agreement,
we shall cause Samsonite Europe N.V. not to terminate the Management Agreement
unless and until the Employment Agreement is terminated.  You agree that if the Employment Agreement is
terminated, the Management Agreement shall be terminated at the same time,
provided that, notwithstanding such termination of the Management Agreement and
your duties thereunder, a pro rata
portion of the Management Fee, on a monthly (pro rated based on the annual
Management Fee) basis, as provided in Article 3.1 of the Management Agreement,
shall continue to be paid to you until the Non-compete Period set forth in
Paragraph 8 of the Employment Agreement terminates in accordance with Paragraph
8(c) of the Employment Agreement.

 

If the foregoing correctly reflects our
understanding, please countersign this letter in the space provided below.

 

	
  Very truly yours,

  	
  Agreed and accepted:

  
	
   

  	
   

  
	
  Samsonite Corporation

  	
   

  
	
  By:

  	
    /s/
  Richard Wiley

  	
   

  	
    /s/
  Marcello Bottoli

  	
   

  
	
  Name:  Richard Wiley

  	
  Marcello Bottoli

  
	
  Title:  CFOEXHIBIT 10.3

 

AMENDMENT NO. 1 TO STOCK
OPTION AGREEMENT

 

This
Amendment No.1 to Stock Option Agreement (the “Agreement”) is made and
effective as of March 17, 2005 (the “Effective Date”) by and among Samsonite
Corporation, a Delaware corporation (the “Company”), Marcello Bottoli
(the “CEO”), and Stonebridge Development Limited, a corporation
organized under the laws of the British Virgin Islands (the “Grantee”).

 

WHEREAS,
the Company, the CEO, and the Grantee entered into that certain Stock Option
Agreement dated April 19, 2004 (the “Option Agreement”) and said Option
Agreement was approved, adopted and ratified by the Compensation Committee (the
“Committee”) of the Board of Directors of the Company in a consent action dated
May 21, 2004; and

 

WHEREAS,
the Committee, on March 17, 2005, approved and adopted an amendment to the
Option Agreement with respect to the exercise price contained therein; and,

 

WHEREAS,
the Committee, on May 9, 2005, approved and adopted certain additional
amendments to the Option Agreement as desired and requested by the Company, the
CEO, and the Grantee.

 

NOW,
THEREFORE, in consideration of the mutual covenants contained herein and other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

 

1.             Amendment
of Section 3.  Section 3 (Exercise
Price) of the Option Agreement is hereby amended in its entirety as follows:

 

“3.  Exercise Price.  Tier One and Tier Two Options shall have
exercise prices per share of Common Stock issuable upon exercise of such
Options equal to $0.665 and $0.70, respectively (the “Exercise Price”).”

 

2.             Amendment
of Section 8.  Section 8
(Termination) of the Option Agreement is hereby amended and restated in its
entirety as follows:

 

“8.  Termination.

 

(a)           Resignation.  If the CEO resigns from his position as chief
executive officer of the Company (i) for Good Reason and (ii) in the fiscal
year immediately preceding CEO’s resignation the Company achieves EBITDA that
exceeded the performance model as agreed to between the Company and the CEO,
then all of the Grantee’s non-vested options shall become fully vested.  If CEO resigns and the above two conditions
are not met, the Grantee’s non-vested options shall be cancelled.

 

(b)           Termination for
Cause.  If the CEO is terminated from
employment by the Company for Cause, then all the Options (whether vested or
unvested) shall automatically terminate and be cancelled without any action on
the part of the Company on the date that employment is terminated.

 

 

(c)           Other
Terminations.  If the CEO’s
employment with the Company is terminated by the Company for any reason other
than Cause, then all unvested Options will automatically terminate and be
cancelled without any action on the part of the Company on the date of
termination.  All Options that have
vested prior to that date will remain exercisable until the earlier to occur of
(1) the 90th day following such date of termination or (2) the
expiration of the Option Term.

 

(d)           Company Call
Option.  In the event that the CEO is
no longer employed as the chief executive officer of the Company, for any
reason (the date of such cessation of office being referred to herein as the “Termination
Date”), the Options held by the Grantee and/or any Affiliates of the CEO
and/or the Grantee shall be subject to repurchase by the Company (unless such
purchase by the Company would violate Delaware law) or any third party
designated by the Company and the New Investors, pursuant to the terms and
conditions set forth in this Section 8(d) (the “Call Option”).  For the avoidance of doubt, the Company has
the right, but not the obligation, to utilize the Call Option.

 

(i)            For
a period of thirty (30) days beginning on the Termination Date, the Grantee
shall have the right to exercise its vested Options on a cashless basis, provided
that such Options are in-the-money.

 

(ii)           Provided
that (A) the Grantee does not exercise its vested Options during the period of
thirty (30) days beginning on the Termination Date either pursuant to Section
8(d)(i) above or in any manner permitted under Section 10(c) and (B) in the
event the CEO has been terminated without Cause, upon death or Permanent
Disability, or CEO has resigned for Good Reason, the Grantee’s unexercised
options may be acquired by the Company at Fair Market Value.

 

(iii)          In
all circumstances other than those described in Section 8(d)(ii) the Grantee’s
unexercised options shall automatically terminate and be cancelled without any
action on the part of the Company on the 31st day following the Termination Date.

 

(e)           Extension After Certain
Terminations.  If the CEO’s
employment with the Company is terminated other than for a reason described in
paragraph (a) or (c) of this Section 8 and the CEO dies or suffers from a
Permanent Disability within 90 days after termination, then the Grantee may
exercise the Options, to the extent vested and exercisable as of the date of
termination, until the earlier to occur of (1) the first anniversary of the
date of death or Permanent Disability or (2) the expiration of the Option Term.

 

(f)            Termination Prior to March 3, 2009.  Notwithstanding any provision in this
Agreement to the contrary, in the event that prior to March 3, 2009 the CEO is
no longer employed as the chief executive officer of the Company, for any
reason other than the Company is declared insolvent or bankrupt in any federal
or state bankruptcy or insolvency proceeding, the Company may, at its sole
discretion, offset any amounts the CEO owes it or its Subsidiaries or
Affiliates (including any indemnities Executive owes to the Company or its
Subsidiaries or Affiliates) by canceling a number, fraction, or combination of
Options and/or Option Shares that have a Fair Market Value equal to the amount
the CEO owes to the Company or its Subsidiaries or Affiliates.”

 

 

2

 

3.             Amendment
of Section 10(d).  Section 10(d)
(Discretion to Receive Cash on Exercise) of the Option Agreement is hereby
amended and restated in its entirety as follows:

 

“(d)         Discretion to Receive Cash on Exercise.  To the extent permissible by both applicable
law and the 1999 Plan, after the completion of an Approved IPO and provided
that the Grantee has exercised its vested Options pursuant to Section 8(d)(i),
the Grantee may, in lieu of delivering payment of the exercise price in
accordance with Section 10(c) above, elect to receive from the Company a cash
sum equal to the difference between the Fair Market Value of the Option Shares
in respect of which the Exercise Notice was given and the aggregate Exercise
Price of such Option Shares.  If payment
is made pursuant to this Section 10(d), the Grantee shall have no further
rights in respect of the Option Shares for which the notice of exercise was
given.  The Company may make any
deductions in respect of such payment which it is required to make under the
laws of any territory which laws are applicable to the Grantee, its Affiliates,
and the Company.”

 

4.             Effect
of Amendments.  In the event of any
inconsistency between the provisions of the Option Agreement and the applicable
provisions of this Agreement, the provisions of this Agreement shall control in
all respects.  Otherwise, the Original
Agreement shall remain in full force and effect.

 

5.             Benefits.  This Agreement will inure to the benefit of
and be binding upon each successor and assign of the Company.  All obligations imposed upon the CEO and the
Grantee and all rights granted to the Company under this Agreement will be
binding upon the CEO and the Grantee and, to the extent provided in this
Agreement, the CEO’s heirs and the CEO’s and Grantee’s legal representatives
and successors.  No other Person has any
rights under this Agreement.

 

6.             Severability.  If any one or more provisions of this
Agreement is deemed to be illegal or unenforceable, the illegality or
unenforceability will not affect the validity and enforceability of the
remaining legal and enforceable provisions, which will be construed as if such
illegal or unenforceable provision or provisions had not been inserted.

 

7.             Governing
Law.  This Agreement will be
construed and governed in accordance with the laws of the State of New York.

 

8.             Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

 

	
  SAMSONITE
  CORPORATION

  	
  MARCELLO
  BOTTOLI

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Richard Wiley

  	
   

  	
  /s/ Marcello Bottoli

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Richard Wiley

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  CFO

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  STONEBRIDGE DEVELOPMENT LIMITED

  
	
   

  
	
  By:

  	
  /s/ Stefania Tomasini

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Stefania Tomasini

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Sole Director

  	
   

  	
   

  

 

 

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