Document:

exv10w6

 

Exhibit 10.6

THE TALBOTS, INC.

2003 EXECUTIVE STOCK BASED INCENTIVE PLAN

RESTRICTED STOCK AGREEMENT

August 7, 2007

The Talbots, Inc.

One Talbots Drive

Hingham, Massachusetts 02043

     The undersigned acknowledges receipt from The Talbots, Inc. (together with its subsidiaries,
the “Company” or “Talbots”) of (i) this Restricted Stock Agreement providing the terms and
conditions of a grant of restricted stock made on August 7, 2007 under the 2003 Executive Stock
Based Incentive Plan, as amended and restated (the “Plan”), and (ii) a copy of the Plan.

     The restricted stock grant (the “Award”) is for 350,000 shares of Common Stock of the Company,
$.01 par value (the “Restricted Stock”).

     The amount of $3,500.00 in full payment of the purchase price for each share of Restricted
Stock (being $.01 per share) has been paid by the Company on behalf of the undersigned, as
additional compensation to the undersigned.

     In consideration of the Company’s accepting this Agreement and delivering the shares of
Restricted Stock provided for herein, the undersigned hereby agrees with the Company as follows:

	 	1.	 	Restricted Period.
	 
	 	(a)	 	No Transfer of Shares. During the period of time that any shares of
Restricted Stock are unvested as set forth in paragraphs 1(b) below (the “Restricted
Period”), such unvested shares shall not be sold, assigned, transferred, pledged,

 

 

	 	 	 	hypothecated or otherwise disposed of, except by will or the laws of descent and
distribution or as provided in this Agreement.

	 	(b)	 	Vesting Period. Except as otherwise provided below, the Restricted
Stock subject to this Award shall vest as follows: (i) twenty-five percent (25%) on
March 15, 2008; (ii) twenty-five percent (25%) on March 15, 2009; and (iii) fifty
percent (50%) on March 15, 2010.

     2. The Company will have the option to repurchase the Restricted Stock that has not yet vested
at a price of $.01 per share, which price may be amended from time to time by the Compensation
Committee of the Company (the “Committee”) at its discretion. Such option will be exercisable with
respect to such unvested shares of Restricted Stock (i) if the undersigned’s continuous employment
for the Company or an Affiliate (as such term is defined below) shall terminate for any reason,
except solely by reason of a period of Related Employment (as such term is defined in the Plan), or
except as otherwise provided in paragraphs 3(a), 3(b) and 3(c) hereof, prior to the expiration of
the Restricted Period with respect to such unvested shares of Restricted Stock, and (ii) if, on or
prior to the expiration of the Restricted Period with respect to such unvested shares of Restricted
Stock or the earlier lapse of this repurchase option with respect to such unvested shares of
Restricted Stock, the undersigned has not paid to the Company an amount equal to any federal,
state, local or foreign income or other taxes which the Company determines is required to be
withheld in respect of such shares. At your election, the Committee hereby authorizes you to
satisfy any such withholding tax obligation in whole or in part by the Company withholding, or your
transferring to the Company, shares of Common Stock of the Company in satisfaction of any such
obligations, determined using the fair market value of such shares at the time of such vesting.
Any such shares of Common Stock delivered to the Company in satisfaction of all or any portion of
such withholding taxes shall be appropriately endorsed for transfer and assignment to the Company.
In all events, no share shall be issued until full payment therefor has been delivered to and
received by the Company.

     Any attempt by the undersigned to dispose of any unvested Restricted Stock in contravention of
the foregoing repurchase option of the

 

 

Company shall be null and void and without effect. If the Company’s repurchase option is not exercised by the Company with respect to any unvested shares of
Restricted Stock within 120 days after the later of (i) the date the undersigned is finally removed
from the payroll of the Company or its Affiliates or (ii) any later effective date of employment
termination (in each case, including any period of challenge or appeal by the undersigned), such
repurchase option shall terminate and be of no further force and effect.

     For purposes of this Agreement, “Affiliates” means all direct or indirect subsidiaries of the
Company, including without limitation The J. Jill Group, Inc., as well as any other entity which is
now or may later be directly or indirectly controlled by the Company.

	 	3.	 	Death or Disability; Termination without Cause or for Good Reason; Change in
Control.

	 	(a)	 	If the undersigned has been in continuous employment for the Company or an
Affiliate since the date on which the Award was granted, and while in such employment,
the undersigned dies, or her employment is terminated by reason of disability (as such
term is defined in Paragraph 12 of the Plan), and any such event shall occur prior to
the end of the Restricted Period with respect to any unvested Restricted Stock, the
Committee shall immediately cancel the repurchase option described in paragraph 2
hereof and any and all other restrictions on the unvested Restricted Stock subject to
the Award; and such shares shall no longer be subject to the restrictions under
paragraph 2 hereof and shall be deemed vested.
	 
	 	(b)	 	In the event that the undersigned’s employment is terminated without Cause (as
defined below) by the Company or by an Affiliate, or in the event that the undersigned
terminates her employment with the Company or an Affiliate for Good Reason (as defined
below), in each case prior to the end of the Restricted Period, with respect to any
unvested Restricted Stock, then (i) the Restricted Period shall be deemed to have
expired on such date with respect to such unvested Restricted

 

 

	 	 	 	 Stock, (ii) the Company
agrees not to exercise any repurchase option described in paragraph 2 with respect to
such unvested Restricted Stock and (iii) such shares shall therefore no longer be subject to the
restrictions under paragraph 2 hereof and shall be deemed vested.

	 	(c)	 	If a Change in Control Event (as such term is defined in the Plan) occurs prior
to the end of the Restricted Period, with respect to any unvested Restricted Stock,
then (i) the Restricted Period shall be deemed to have expired on such date with
respect to such unvested Restricted Stock, (ii) the Company agrees not to exercise any
repurchase option described in paragraph 2 with respect to such unvested Restricted
Stock and (iii) such shares shall therefore no longer be subject to the restrictions
under paragraph 2 hereof and shall be deemed vested.
	 
	 	(d)	 	For purposes of clarity, in the event that (i) the undersigned’s employment is
terminated for Cause by the Company or by an Affiliate or (ii) the undersigned
terminates her employment with the Company or an Affiliate without Good Reason, in each
case prior to the end of the Restricted Period, then with respect to any then unvested
Restricted Stock, the Company shall have the repurchase option described in paragraph 2
above.

     “Termination without Cause,” “termination for Good Reason,” “termination for Cause” and
“termination without Good Reason” shall have the meanings set forth in the Employment Agreement
between you and the Company dated June 28, 2007 (“Employment Agreement”).

	 	4.	 	Issuance and Repurchase of Restricted Stock.

     Each certificate for Restricted Stock issued pursuant to this Award shall be deposited by the
undersigned with the Company, together with a stock power endorsed in blank, or shall be evidenced
in such other manner permitted by applicable law as determined by the Committee in its discretion.
If the Company chooses to exercise its option to repurchase unvested Restricted Stock as described
in paragraph 2 hereof, title to such

 

 

shares shall be deemed transferred to the Company without
further action by the undersigned. Contemporaneously with such transfer of title to such
shares, the Company shall pay to the undersigned, or in the event of her death, her personal representative, as the case may be, the $0.01 per share purchase price for
such shares of repurchased Restricted Stock.

	 	5.	 	Certificates.
	 
	 	(a)	 	The undersigned acknowledges that all certificates evidencing shares of
Restricted Stock of the Company issued pursuant to this Award and this Agreement shall
bear a restrictive legend as follows:

“THE SHARES EVIDENCED BY THIS CERTIFICATE ARE PARTLY PAID AND ARE SUBJECT TO
(i) RESTRICTIONS ON TRANSFER AND (ii) A REPURCHASE OPTION OF THE TALBOTS,
INC. UNDER CERTAIN CIRCUMSTANCES, PURSUANT TO THE PROVISIONS OF THE
TALBOTS, INC. 2003 EXECUTIVE STOCK BASED INCENTIVE PLAN, AS AMENDED AND
RESTATED, AND A RESTRICTED STOCK AGREEMENT DATED AS OF AUGUST 7, 2007 BY AND
BETWEEN TRUDY F. SULLIVAN AND THE TALBOTS, INC. THE PLAN AND THE AGREEMENT
ARE AVAILABLE FOR INSPECTION AT THE PRINCIPAL OFFICES OF THE TALBOTS, INC.”

(Place date stamp)

	 	(b)	 	The undersigned acknowledges that the certificate evidencing the shares of
Restricted Stock delivered pursuant to this Agreement may be issued in several
denominations. The date appearing immediately below the legend on each stock
certificate will be the date on which shares represented by such certificate are
scheduled to become free of the restrictions as set forth in paragraph 1(b) above,
subject to all of the other terms and conditions of this Agreement.

 

 

	 	6.	 	Restriction.

     The undersigned understands that the Company has filed with the Securities and Exchange Commission a Form S-8 registration statement under the Securities Act
of 1933 with respect to the Plan and the shares covered by this Agreement. The undersigned
understands that once shares have become free of restrictions, new certificates will be issued by
the Company’s transfer agent not containing the legend provided for in paragraph 5 hereof, and that
the undersigned will be free to sell the shares of Common Stock evidenced by such certificates not
bearing such legend, subject to applicable requirements of federal and state securities laws and
the requirements of this Agreement. The undersigned agrees that any such sales will be effected by
means of a broker’s transaction using the facilities of the stock exchange where the Common Stock
is then listed. The Company will endeavor to keep such registration statement effective to permit
such sale, but in the event the Company notifies the undersigned that such registration statement
is not then effective, the undersigned agrees to refrain from sales of shares of Common Stock until
such time as the Company advises her that such registration statement has become effective.

	 	7.	 	Rights with Respect to Shares.

     The undersigned shall have, after issuance of a certificate for the number of shares of
Restricted Stock awarded and prior to the expiration of any Restricted Period (or the earlier
repurchase of unvested shares of Restricted Stock by the Company), the right to vote the same and
to receive dividends or other distributions made or paid with respect to such Restricted Stock,
subject, however, to the options, restrictions and limitations imposed thereon pursuant to this
Agreement and the Plan.

	 	8.	 	Subject to Terms of the Plan.

     This Agreement shall be subject in all respects to the terms and conditions of the Plan and in
the event of any question or controversy relating to the terms of the Plan, the decision of the
Committee shall be final and conclusive, except as expressly set forth in this Agreement or as
expressly set forth in the Employment Agreement.

 

 

	 	9.	 	Trading Black Out Periods.

     By entering into this Agreement the undersigned expressly agrees that: (i) during all periods
of employment of the undersigned with the Company or its Affiliates, or while the undersigned is otherwise maintained on the payroll of
the Company or its Affiliates, the undersigned shall abide by all trading “black out” periods with
respect to purchases or sales of the Company’s stock or exercises of stock options for the
Company’s stock established from time to time by the Company (“Trading Black Out Periods”) and (ii)
upon any cessation or termination of employment with the Company or its Affiliates for any reason,
the undersigned agrees that for a period of six (6) months following the effective date of any
termination of employment or, if later, for a period or six (6) months following the date as of
which the undersigned is no longer on the payroll of the Company or its Affiliates, the undersigned
shall continue to abide by all such Trading Black Out Periods established from time to time by the
Company.

	 	 	 	 	 
	 

	 	Executive:
	 	/s/ Trudy F. Sullivan
	 

	 	 	 	 
	 

	 	 	 	TRUDY F. SULLIVAN

Agreed:

	 	 	 	 	 
	THE TALBOTS, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ John Fiske
 

John Fiske III
	 	 
	 

	 	Senior Vice President,	 	 
	 

	 	Human Resourcesexv10w7

 

Exhibit 10.7

THE TALBOTS, INC.

2003 EXECUTIVE STOCK BASED INCENTIVE PLAN

NONQUALIFIED STOCK OPTION AGREEMENT

August 7, 2007

	 	 	 	 	 
	To:

	 	Trudy F. Sullivan
	 	 
	 

	 	President and Chief Executive Officer	 	 

     We are pleased to notify you that by the determination of the Compensation Committee (the
“Committee”) of the Board of Directors of The Talbots, Inc. (together with its subsidiaries, the
“Company”) a nonqualified stock option to purchase 325,000 shares of Common Stock of the Company,
$0.01 par value (“Common Shares”), at a price of $22.70 per share, has been granted to you,
effective August 7, 2007, under the 2003 Executive Stock Based Incentive Plan, as amended and
restated (the “Plan”). This nonqualified stock option (the “Option”) may be exercised only upon the
terms and conditions set forth below.

     1.  Purpose of Option.

     The purpose of the Plan under which this Option has been granted is to advance the interests
of the Company and its shareholders by providing incentives to certain key employees of the Company
and its Affiliates.

     2.  Acceptance of Option Agreement.

     Your execution of this nonqualified stock option agreement (the “Agreement”) will indicate
your acceptance of and your willingness to be bound by all of its terms. It imposes no obligation
upon you to purchase any shares unless you choose to exercise the Option in the manner set forth in
paragraph 5.

 

 

     3.  When Option May Be Exercised.

     Your entitlement to exercise this Option shall vest as follows:

          (i) 33-1/3% of the total shares covered by the Option (subject to rounding down to a
whole share) shall vest on a date one (1) year following the effective date of the grant;

          (ii) 33-1/3% of the total shares covered by the Option (subject to rounding down to a
whole share) on a date two (2) years following the effective date of the grant;

          (iii) 33-1/3% of the total shares covered by the Option on a date three (3) years
following the effective date of the grant.

     This Option may not be exercised for less than ten (10) shares at any one time (or the
remaining shares then purchasable, if less than ten) and expires at the end of eight (8) years from
the date of grant, whether or not it has been exercised, unless sooner terminated as provided in
paragraphs 6, 7, 8, 9 and 10 below.

     4. Tandem Stock-Settled Stock Appreciation Right in Favor of Company.

          (i) Each Option includes a stock-settled stock appreciation right (“SAR”) relating to one
Common Share, exercisable solely by the Company in its discretion, with an exercise price per share
equal to the per share exercise price of the Option. The SAR may only be exercised by the Company
if, concurrently with the Executive’s notice of exercise of the Option, the Company causes its SAR
to be exercised in its discretion by providing notice of such exercise to you. An SAR may be
exercised for all or part of any Common Shares which are covered by each Option exercise by you.

          The SAR, if so exercised by the Company concurrently with your exercise of the Option,
represents the obligation of the Company to deliver to you a whole number of shares at the time you
exercise the
Option, equal in value (based on Fair Market Value on the exercise date) to the excess, if
any, of the Fair Market Value per share of the aggregate number of Common Shares covered by your
Option exercise over the exercise price per share of the Common Shares covered by your Option

 

 

exercise. Fractional shares will not be delivered and the number of shares to be delivered upon
any such exercise of the SAR shall be rounded down to the nearest whole share and cash shall be
paid to you for any fractional share.

          “Fair Market Value” means the closing price of the Common Shares on the Option exercise date
on the New York Stock Exchange or, if not so listed, on the then principal stock exchange on which
the Common Shares are then listed.

          (ii) The Company shall have no right to exercise an SAR hereunder except contemporaneously
with, and for up to the same number of shares covered by, your exercise of this Option. An SAR
with respect to a share shall vest, become exercisable, and terminate at the same times and under
the same terms as the Option. The exercise of an Option with respect to any share shall (unless and
to the extent the SAR is then exercised by the Company for shares covered by the Option exercise)
cause the related SAR to automatically terminate. The exercise by the Company of an SAR for
Common Shares hereunder shall automatically terminate the corresponding Option for such Common
Shares.

     5.  How Option May Be Exercised.

     This Option is exercisable by a written notice signed by you and delivered to the Company at
its executive offices, signifying your election to exercise the Option. The notice must state the
number of Common Shares as to which your Option is being exercised and must be accompanied by cash,
shares of Common Stock, or any combination thereof, or other payment in such form as the Committee
may determine in its discretion, for such amount (i) as is required for withholding taxes plus (ii)
where the Company does not concurrently exercise its SAR with respect to such Option exercise, the
full purchase price of the shares being acquired at the time of exercise. Any shares of Common
Stock delivered to the Company in satisfaction of all or any portion of such withholding taxes or
purchase price shall be appropriately endorsed for transfer and assignment to the Company. In all
events (including any “cashless exercise” procedure) no
share shall be issued upon an Option exercise until full payment therefor has been delivered
to and received by the Company.

 

 

     The Company shall prepare and file with the Securities and Exchange Commission a Form S-8
registration statement under the Securities Act of 1933 with respect to the Plan and the Common
Shares underlying the Option covered by this Agreement. The Company will endeavor to keep such
registration statement effective at all times that this Agreement is outstanding, but in the event
that such registration statement is not effective at the time of exercise, your written notice of
exercise to the Company must contain a statement by you (in form acceptable to the Company) that
such shares are being acquired by you for investment only and not with a view to their distribution
or resale, and the undersigned agrees to refrain from sales of Common Shares until such time as the
Company advises her that such registration statement has become effective. The undersigned agrees
that any such sales will be effected by means of a broker’s transaction using the facilities of the
stock exchange where the Common Shares are then listed.

     If a person or persons other than you give notice of the exercise of this Option, and provided
notice of exercise by such person or persons is permitted under the Plan, then the Company may
require the submission to the Company of appropriate proof of the authority of such person or
persons to exercise this Option.

     Certificates for the Common Shares purchased or issued hereunder will be issued as soon as
practicable. The Company, however, shall not be required to issue or deliver a certificate for any
shares until it has complied with all requirements of the Securities Act of 1933, the Securities
Exchange Act of 1934, any stock exchange on which the Company’s Common Stock may then be listed and
all applicable state laws in connection with the issuance or sale of such shares or the listing of
such shares on such stock exchange. Until the date of issuance of the certificate for such shares
to you (or any person succeeding to your rights pursuant to the Plan), you (or such other person,
as the case may be) shall have no rights as a stockholder with respect to any Common Shares subject
to this Option.

     6. Termination of Employment.

          (i) If your employment with the Company or an Affiliate (as
such term is defined in the Plan) is terminated without Cause by the Company or for Good
Reason by you, the then outstanding and unvested portion of this Option shall become immediately
exercisable and fully vested and will be exercisable at any time within three (3) years after the

 

 

date you ceased such employment (but in no event after the Option has expired).

          (ii) If your employment with the Company or an Affiliate is terminated for Cause by the
Company or terminated without Good Reason by you, the unvested portion of the Option shall
immediately lapse and expire and you may exercise, within three (3) months from the date of such
termination (but in no event after the Option has expired), that portion of the Option which was
vested at the date of such termination.

     “Termination without Cause,” “termination for Good Reason,” “termination for Cause” and
“termination without Good Reason” shall have the meanings set forth in the Employment Agreement
between you and the Company dated June 28, 2007 (“Employment Agreement”).

     7. Period of Related Employment.

     If your employment with the Company or an Affiliate shall cease solely by reason of a period
of Related Employment, you may, during such period of Related Employment, exercise the Option as if
you continued such employment.

     8. Disability.

     If your employment with the Company or an Affiliate is terminated by reason of your disability
(as such term is defined in Paragraph 12 of the Plan), the then outstanding and unvested portion of
this Option shall become immediately exercisable and fully vested and you may exercise the Option
at any time within three (3) years after the date you ceased such employment (but in no event after
the Option has expired).

     9. Retirement.

     If your employment with the Company or an Affiliate is terminated upon early, normal or
deferred retirement under a qualified retirement program of the Company or an Affiliate, the
unvested portion of the Option
shall immediately lapse and expire and you may exercise, within three (3) years from the date
of such termination (but in no event after the Option has expired), that portion of the Option
which was vested at the date of such termination.

 

 

     10. Death.

     If you die while employed by the Company or an Affiliate and this Option has not expired and
has not been fully exercised, the then outstanding and unvested portion of this Option shall become
immediately exercisable and fully vested and your executors, administrators, heirs or distributees,
as the case may be, may exercise the Option at any time within one (1) year after the date of death
(but in no event after the Option has expired).

     11. Change in Control.

     This Option, to the extent then outstanding and unvested, shall become immediately exercisable
and fully vested upon a Change in Control Event (as such term is defined in the Plan).

     12. Non-Transferability of Option.

     This Option may not be sold, assigned, transferred, pledged, hypothecated or otherwise
disposed of by you, except by will or the laws of descent and distribution, and shall be
exercisable during your lifetime only by you, except as otherwise set forth herein or in the Plan.

     13. Dilution and Other Adjustments.

     If at any time after the date of the grant of this Option, there is any change in the
outstanding Common Stock of the Company by reason of any stock split, stock dividend, split-up,
spin-off, recapitalization, merger, consolidation, rights offering, reorganization, combination or
exchange of shares, a sale by the Company of all or part of its assets, any distribution to
shareholders other than a normal cash dividend, or other extraordinary or unusual event, then the
number of Common Shares available for this Option including the related SAR as well as the terms of
this Option including the related SAR shall be appropriately adjusted for any such change by the
Committee, whose adjustment shall be conclusive and binding.

 

 

     14. Trading Black Out Periods.

     By entering into this Agreement the undersigned expressly agrees that: (i) during all periods
of employment of the undersigned with the Company or its Affiliates, or while the undersigned is
otherwise maintained on the payroll of the Company or its Affiliates, the undersigned shall abide
by all trading “black out” periods with respect to purchases or sales of Company stock or exercises
of stock options for the Company’s stock established from time to time by the Company (“Trading
Black Out Periods”) and (ii) upon any cessation or termination of employment with the Company or
its Affiliates for any reason, the undersigned agrees that for a period of six (6) months following
the effective date of any termination of employment or, if later, for a period of six (6) months
following the date as of which the undersigned is no longer on the payroll of the Company or its
Affiliates, the undersigned shall continue to abide by all such Trading Black Out Periods
established from time to time by the Company.

     15. Subject to Terms of the Plan.

     This Agreement shall be subject in all respects to the terms and conditions of the Plan and in
the event of any question or controversy relating to the terms of the Plan, the decision of the
Committee shall be final and conclusive, except as expressly set forth in this Agreement or as
expressly set forth in the Employment Agreement.

     16. Tax Status.

     It is the intent of the Company that this Option not be classified as an “incentive stock
option” under the provisions of Section 422 of the Internal Revenue Code of 1986, as amended. The
income tax implications of your receipt of this Option and your exercise of this Option should be
discussed with your tax counsel.

 

 

	 	 	 	 	 	 	 
	 	 	Sincerely yours,	 	 
	 
	 	 	 	 	 	 
	 	 	THE TALBOTS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John Fiske	 	 
	 

	 	 	 	 

  John Fiske III
	 	 
	 

	 	 	 	  Senior Vice President,	 	 
	 

	 	 	 	  Human Resources	 	 

	 	 	 
	Agreed to and accepted:
	 	 
	 
	 	 
	/s/ Trudy F. Sullivan
	 	 
	 

TRUDY F. SULLIVAN

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]