Document:

exv10w1

Form 10-Q

Page 33

Exhibit 10.1

THE TIMBERLAND COMPANY

2010 EXECUTIVE LONG TERM INCENTIVE PROGRAM

(effective 1/1/10)

 

 

Form 10-Q

Page 34

THE TIMBERLAND COMPANY

2010 EXECUTIVE LONG TERM INCENTIVE PROGRAM

      This instrument sets forth the terms of The Timberland Company 2010 Executive Long Term
Incentive Program (capitalized terms used herein are used as defined in Section 2 hereof). The
Program is established under The Timberland Company 2007 Incentive Plan, and amounts paid under the
Program are generally intended to qualify as performance-based compensation under Section 162(m) of
the Internal Revenue Code.

      1.     Purpose. The purpose of the Program is (a) to attract, retain and motivate key employees
of outstanding ability; and (b) to provide competitive incentive pay and capital accumulation
opportunities to certain key employees in exchange for their attainment of specified Performance
Goals.

      2.     Definitions. The following terms shall have the following meanings unless the context
indicates otherwise.

	 	(a)	 	“Affiliate” shall mean any corporation or other entity that stands in
a relationship to the Company that would result in the Company and such
corporation or other entity being treated as one employer under Section 414(b) and
Section 414(c) of the Code, except that in determining eligibility for the grant
of a stock option or other similar equity award by reason of service for an
Affiliate, Sections 414(b) and 414(c) of the Code shall be applied by substituting
“at least 50%” for “at least 80%” under Section 1563(a)(1), (2) and (3) of the
Code and Treas. Regs. § 1.414(c)-2; provided, that to the extent permitted under
Section 409A of the Code, “at least 20%” shall be used in lieu of “at least 50%”;
and further provided, that the lower ownership threshold described in this
definition (50% or 20% as the case may be) shall apply only if the same definition
of affiliation is used consistently with respect to all compensatory stock options
or stock awards (whether under the Plan or another plan). The Company may at any
time by amendment provide that different ownership thresholds (consistent with
Section 409A of the Code) apply but any such change shall not be effective for
twelve (12) months.
	 
	 	(b)	 	“Award” shall mean an opportunity to earn, based on performance,
incentive pay in the form of PSUs and PSOs.
	 
	 	(c)	 	“Award Payout” shall mean the number of PSUs and PSOs earned by a
Participant as determined by the Committee.
	 
	 	(d)	 	“Board” shall mean the Board of Directors of The Timberland Company.
	 
	 	(e)	 	“Code” shall mean the Internal Revenue Code of 1986, as from time to
time amended.
	 
	 	(f)	 	“Committee” shall mean the Management Development and Compensation
Committee of the Board.
	 
	 	(g)	 	“Company” shall mean The Timberland Company.
	 
	 	(h)	 	“EBITDA” shall mean earnings before taxes, plus depreciation,
amortization, and interest expense, less interest income, adjusted to exclude the
following items: losses from discontinued operations, the cumulative effect of
changes in Generally Accepted Accounting Principles, any one-time charge or
dilution resulting from any acquisition or divestiture, extraordinary items of
loss or expense, and any other unusual or nonrecurring items of loss or expense
including restructuring charges. Any such adjustment shall be made only to the
extent the item is separately identified on the Consolidated Statement of Income
in the Company’s Annual Report on Form 10-K; the Notes to the Consolidated
Financial Statements; or in the Management Discussion & Analysis section of the
Company’s Annual Report on Form 10-K and is objectively quantifiable in the
Company’s accounting records as reviewed by the Company’s independent auditors.
The Committee may exercise discretion to include all or part of an item of loss or
expense.
	 
	 	(i)	 	“Named Executive Officer” shall mean the Chief Executive Officer, the
Chief Financial Officer and the next three highest paid officers of the Company on
the last day of the taxable year, for purposes of the executive compensation
disclosure rules under the Securities Exchange Act of 1934.

 

 

Form 10-Q

Page 35

	 	(j)	 	“Participant” shall mean an employee of the Company or an Affiliate
who is designated by the Committee or a designee of the Committee to receive an
Award.
	 
	 	(k)	 	“Performance Goal” shall mean the threshold, budget, target or
maximum level of performance that must be attained to earn a specified level of
incentive pay.
	 
	 	(l)	 	“Performance Measure” shall mean EBITDA and Revenue Growth.
	 
	 	(m)	 	“Performance Period” shall mean the PSU Performance Period or the PSO
Performance Period.
	 
	 	(n)	 	“Plan” shall mean The Timberland Company 2007 Incentive Plan.
	 
	 	(o)	 	“Program” shall mean The Timberland Company 2010 Executive Long Term
Incentive Program.
	 
	 	(p)	 	“PSO” shall mean an option entitling the holder to acquire shares of
Stock upon payment of the applicable exercise price, subject to the conditions and
restrictions described herein or in an Award agreement.
	 
	 	(q)	 	“PSO Performance Period” shall mean the one-year period commencing
January 1, 2010, and shall be the measurement period during which the attainment
of the Performance Goal for PSOs shall be determined.
	 
	 	(r)	 	“PSU” shall mean an unfunded and unsecured promise to deliver one
share of Stock, subject to the conditions and restrictions described herein or in
an Award agreement.
	 
	 	(s)	 	“PSU Performance Period” shall mean the three-year period commencing
January 1, 2010, and shall be the measurement period during which the attainment
of the Performance Goal for PSUs shall be determined.
	 
	 	(t)	 	“Revenue Growth” shall mean the Company’s change in annual revenue
disclosed in the Company’s Annual Report on Form 10-K during the three year period
January 1, 2010 through December 31, 2012 (restated to 2009 constant currency),
divided by 2009 annual revenue, divided by three.
	 
	 	(u)	 	“Stock” shall mean Class A Common Stock of the Company, par value
$.01 per share.

      3.     Administration. The Program shall be administered by the Committee, in accordance with the
terms of the Plan. The Committee shall have sole and complete discretion with respect to the
exercise of all permissive powers and authority granted to the administrator under the Plan;
provided, however, the Committee may not exercise its discretion to increase the amount of
incentive pay that would otherwise be due a Named Executive Officer upon attainment of a
Performance Goal. All actions, determinations, and decisions of the Committee shall be final,
conclusive, and binding on all parties.

      4.     Participation. Participants shall be as determined by the Committee at its regularly
scheduled meeting during the first quarter of the fiscal year, as reflected in the minutes of such
meeting. The Committee may delegate authority to determine certain participants, other than the
Named Executive Officers.

      5.     Awards. The type of Award and the number of Awards that can be earned under the Program
upon achievement of a Performance Goal shall be as determined by the Committee at its regularly
scheduled meeting during the first quarter of the fiscal year, as reflected in the minutes of such
meeting. The Committee shall determine the type of Award and the number of Awards for the Named
Executive Officers on an individual basis. The Committee may delegate authority to determine the
type of Award and the number of Awards for Participants other than the Named Executive Officers.
Each Award is expressed as a number of PSUs and PSOs contingent upon the achievement of certain
Performance Goals and subject to certain restrictions set forth herein or in an Award agreement.
Awards may vary according to a Participant’s salary grade or position. Awards for a Named
Executive Officer shall not be changed or modified during a Performance Period to increase the
amount of incentive pay that would otherwise become payable.

 

 

Form 10-Q

Page 36

      6.     Performance Measures and Performance Goals. The Performance Measures and Performance Goals
shall be as determined by the Committee at its regularly scheduled meeting during the first quarter
of the fiscal year, as reflected in the minutes of such meeting. Performance Goals for a Named
Executive Officer shall not be changed or modified during a Performance Period to increase the
amount of incentive pay that would otherwise become payable.

      7.     Award Payout Calculation and Approval.

	 	(a)	 	Award Payouts shall be based on the degree to which a Performance
Goal is attained, with nothing payable upon attainment of the threshold-level
Performance Goal, 60% of the target-level Award payable upon attainment of the
budget-level Performance Goal, 100% of the target-level Award payable upon
attainment of the target-level Performance Goal and 200% of the target-level Award
payable upon attainment of the maximum-level Performance Goal, all as established
by the Committee at its regularly scheduled meeting during the first quarter of
the fiscal year, as reflected in the minutes of such meeting. No Award Payouts
shall be made unless the threshold-level Performance Goal is surpassed. Award
Payouts shall be increased proportionately on a straight-line basis to the extent
the threshold, budget or target Performance Goals are surpassed. In no event
shall an Award Payout exceed the maximum-level Award.
	 
	 	(b)	 	The Company’s independent public accountants shall audit the
Company’s Award Payout calculations following the close of the Performance Period.
	 
	 	(c)	 	The Committee shall approve or disapprove the Award Payouts for all
Participants following completion of the independent audit. The Committee may
reduce a Participant’s Award Payout (or the Award Payouts to all or some
Participants) if such modification would better serve the purpose of the Plan.

      8.     Award Payment. For each PSU earned, as determined in accordance with Section 7, one share
of Stock shall be delivered to the Participant as soon as practicable and not later than March 31,
2013. For each PSO earned, as determined in accordance with Section 7 the Participant’s right to
exercise the option shall begin to vest as soon as practicable in accordance with Section 9 and not
later than March 31, 2011.

      9.     Vesting of PSOs. PSOs, to the extent earned, shall vest in three equal annual installments
beginning on the second anniversary of the grant date, as approved by the Committee following the
end of the PSO Performance Period. For example, for PSOs granted on March 4, 2010, and for which
the Committee approves an Award Payout, the first tranche of such PSOs would vest on March 4, 2012.

      10.     Agreements. Each award of PSUs and each grant of PSOs shall be evidenced by an Award
agreement, specifying restrictions on the transfer and vesting of such securities and including
such other terms, conditions and restrictions as the Committee shall determine.

      11.     Employment. Except as otherwise determined by the Committee, to be eligible to receive an
Award Payout, a Participant must be employed by the Company or an Affiliate on the date such Award
Payout is made, in the case of PSUs, and the date vesting commences, in the case of PSOs.
Receiving an Award or an Award Payout shall not give any Participant the right to be retained in
the employment of the Company or an Affiliate, or affect the right of the Company or an Affiliate
to discharge or discipline a Participant.

 

 

Form 10-Q

Page 37

          IN WITNESS WHEREOF, The Timberland Company has caused this document to be executed by its duly
authorized officer effective as of the 1st day of January, 2010.

	
 	 	 	 	 
	 	THE TIMBERLAND COMPANY

 	 
	 	By:  	/s/ Sidney W. Swartz
 	 
	 	 	Sidney W. Swartz 	 
	 	 	Chairmanexv10w1

EXHIBIT 10.1

PORTIONS OF THIS EXHIBIT MARKED BY AN (***) HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

February 18, 2010

Travelport, LP

Travelport Global Distribution System B.V.

300 Galleria Parkway, N.W.

Atlanta, GA 30339

			
	Re:	 	Sixth Amendment to Subscriber Services Agreement, dated as of July 23, 2007 (“Agreement”)
between Travelport, LP, (f/k/a Travelport International, L.L.C., hereinafter “Travelport”),
Travelport Global Distribution System B.V. (f/k/a Galileo Nederland B.V., hereinafter “TGDS”
and, together with Travelport, collectively, “Galileo”) and Orbitz Worldwide, LLC
(“Subscriber”)

Ladies and Gentlemen:

This letter constitutes a Sixth Amendment (“Amendment”) to the Agreement referenced above.
Capitalized terms used in this Amendment and not otherwise defined shall be used as defined in the
Agreement.

Effective as of the date of this Amendment (“Amendment Effective Date”), Galileo and Subscriber
hereby agree as follows:

	1.	 	The following new provision is inserted as Section 27 of the Agreement:

	 	27.	 	Galileo and Orbitz Funding of Orbitz Marketing Programs.

	 	A.	 	Marketing Program. From time to time during the Term of the Agreement,
Galileo and Orbitz may agree to contribute money toward a marketing program to be
conducted by Orbitz (each, a “Marketing Program”) pursuant to the terms of this Amendment.
The goals of such Marketing Programs shall be to generate bookings through Orbitz.com and
to generate Segments on one or more Travelport GDS or as otherwise mutually agreed between
the parties. In connection with each Marketing Program, Galileo and Orbitz shall enter
into a Summary of Marketing Program Terms, substantially in the form attached hereto as
Exhibit A.

	 	B.	 	Initial Marketing Program. Galileo and Orbitz agree to fund, and Orbitz
agrees to conduct, the following initial Marketing Program (“Initial Marketing Program”):

	 	 	 

	Total Marketing Dollars Cap:

	 	Up to $(***) (the actual total amount
to be referred to as “Total Marketing
Dollars”)

1

 

	 	 	 

	Galileo Marketing Contribution Cap:

	 	Up to $(***) (the actual total amount
to be referred to as “Galileo
Marketing Contribution”)
	 
	 	 
	Orbitz Marketing Contribution Cap:

	 	Up to $(***) (the actual total amount
to be referred to as “Orbitz Marketing
Contribution”)

	 	C.	 	Funding. Galileo and Orbitz shall fund the Initial Marketing Program, with
the amount of each Party’s contribution to be up to the Galileo Marketing Contribution Cap
and Orbitz Marketing Contribution Cap, respectively. Orbitz shall run online marketing
campaigns (each, a “Marketing Campaign”), with the timing and nature of each Marketing
Campaign to be determined by Orbitz after reasonable consultation with Galileo. The
parties will evaluate the results of each Marketing Campaign, and each party shall
determine in its sole discretion after such evaluation whether or not to contribute
additional money to the Initial Marketing Program for additional Marketing Campaigns. The
Marketing Campaigns may include (without limitation) paid advertisements on travel
research websites (for example, Travelzoo.com) or paid search marketing on search engines
(for example, Google). If the Total Marketing Dollars are not expended during the
Marketing Campaign, any unused amounts will be returned to the parties in proportion to
each party’s contribution.
	 
	 	D.	 	Other Terms. Provided that the parties agree on the amounts of the Orbitz
Marketing Contribution and Galileo Marketing Contribution on a timely basis, Orbitz shall
use commercially reasonable efforts to spend the Total Marketing Dollars on Marketing
Campaigns that will run by April 30, 2010. In connection with each Marketing Campaign,
Orbitz shall provide Galileo with (i) a summary of the payments made under the Marketing
Campaign, and (ii) Orbitz’s best estimate of the number of Segments booked as a result of
the Marketing Campaign (delineated by Travelport GDS and, to the extent practicable,
identifying the number of Segments generated during the Marketing Campaign that are
incremental in nature).

2. General. This Amendment shall be binding upon and inure to the benefit of and be
enforceable by the Parties hereto or their successors in interest, except as expressly provided in
the Agreement. Each Party to this Amendment agrees that, other than as expressly set out in this
Amendment, nothing in this Amendment is intended to alter the rights, duties and obligations of the
Parties under the Agreement, which shall remain in full force and effect as amended hereby. In the
event of a conflict between the terms and conditions of this Amendment and the terms and conditions
of the Agreement, the terms and conditions of this Amendment shall govern. This Amendment may be
executed by the Parties in separate counterparts and each counterpart shall be deemed to be an
original, but all such counterparts together shall constitute one and the same instrument.

2

 

The Parties have caused this Amendment to be executed by the signatures of their respective
authorized representatives.

	 	 	 

	Orbitz Worldwide, LLC

	 	Travelport, LP

By: WS Holdings LLC as General Partner
	 
	 	 
	Signature: /s/ Stephen C. Praven       

	 	Signature: /s/ Scott Hyden          
	 
	 	 
	Name: Stephen C. Praven

	 	Name: Scott Hyden
	 
	 	 
	Title: VP, Business Development

	 	Title: VP, Sales
	 
	 	 
	Date: 2/22/10

	 	Date: 3/2/10
	 
	 	 
	 

	 	Travelport Global Distribution System B.V.
	 
	 	 
	 

	 	Signature: /s/ Marco van Ieperen          
	 
	 	 
	 

	 	Name: Marco van Ieperen
	 
	 	 
	 

	 	Title: Director
	 
	 	 
	 

	 	Date: 03 March 2010

3

 

Exhibit A

Summary of Marketing Program Terms

This Summary of Marketing Program Terms (“Summary of Terms”) is entered into [INSERT DATE]
(“Effective Date”) by and between Orbitz Worldwide, LLC (“Orbitz”) and Travelport, LP (“Galileo”).
This Summary of Terms is subject to the terms and conditions of the Subscriber Services Agreement,
dated July 23, 2007, between Orbitz, Galileo and Travelport Global Distribution System B.V. as
amended (“Agreement”). In the event of a conflict between any term of the Agreement and this
Summary of Terms, the Agreement shall control, unless expressly stated in this Summary of Terms.
Any capitalized term used but not defined herein shall have the meaning assigned to it in the
Agreement.

Galileo and Orbitz agree to fund, and Orbitz agrees to conduct, the following Marketing Program:

Total Marketing Dollars:

Galileo Marketing Contribution:

Orbitz Marketing Contribution:

Orbitz Marketing Activities:

Other Terms:

The Parties have caused this Summary of Terms to be executed by the signatures of their respective
authorized representatives.

	 	 	 	 	 	 	 

	Orbitz Worldwide, LLC	 	Travelport, LP
By: WS Holdings LLC as General Partner
	 
	 	 	 	 	 	 
	Signature:

	 	 	 	Signature:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	 	 	Name:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	 	 	Title:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Date:

	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 

4

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