Document:

Exhibit 10.2

 

SAMSONITE
CORPORATION

EXECUTIVE STOCK OPTION AGREEMENT

 

This Agreement, dated as of March 17,
2005, is between SAMSONITE CORPORATION, a Delaware corporation (the “Company”),
and [see schedule] (the “Grantee”).

 

Throughout this Agreement,
the terms “Subsidiary” and “Subsidiaries” shall refer to one or more
subsidiaries of the Company, as the term “subsidiary” is defined in Rule 1-02
of Regulation S-X under the Securities Act of 1933, as amended (the “Securities
Act”)

 

The stock options granted hereunder
are awarded under the Company’s Amended and Restated FY 1999 Stock Option and
Incentive Award Plan (“1999 Plan”) and are subject to the terms thereof.  The shares of common stock of the Company,
par value $.01 per share (the “Common Stock”) to be issued upon exercise of the
Options (as defined below) (the “Option Shares”), will also be subject to the
terms of the Executive Stockholders Agreement, dated as of September 25,
2003, as amended and restated from time to time (the “Executive Stockholders
Agreement”), by and among (i) the Company (ii) ACOF Management, L.P.,
a Delaware limited partnership (“Ares”), (iii) Bain Capital (Europe) LLC,
a Delaware limited liability company (“Bain Capital”), (iv) Ontario
Teachers’ Pension Plan Board, a non-share capital corporation established under
the laws of Ontario (“OTPP” and together with Ares and Bain, the “New Investors”),
and (v) each of the Persons listed on Schedule I attached thereto.

 

The Option Shares have not
been registered under the Securities Act, or any other federal or state
securities laws.  The Option Shares may
not be transferred or resold except in compliance with the registration
requirements under the Securities Act and any applicable state securities laws
or an exemption therefrom.  Although the
Company may choose to register such shares prior to exercisability, the Company
is under no obligation to so register such shares or to assist in complying
with any exemption from registration.

 

The transfer or resale of
the Option Shares will be significantly restricted by the terms of the
Executive Stockholders Agreement and the Securities Act. Each person acquiring
the Option Shares may have to bear the economic and financial risk of the
investment for an indefinite period of time.

 

1.  Grant.  The Company confirms that the Grantee has
been granted, effective March 17, 2005 (“Date of Grant”), the right to
purchase from the Company an aggregate of [see schedule] shares of the Company’s
Common Stock (the “Options”), which for purposes of vesting in accordance with
Sections 5 and 6 hereof shall be divided equally into a group of [see schedule]
Options (the “Tier One Options”) and into a group of [see schedule] Options
(the “Tier Two Options”).  The Options
constitute Nonqualified Stock Options.

 

2.  Exercise Price.  The exercise price per share (the “Exercise
Price”) for the Options is US$0.665.

 

 

3.  Non-transferability.  The Options may not be assigned, transferred
or disposed of, or pledged or hypothecated in any way, and may not be subject
to execution, attachment or other process, other than by will or by the laws of
descent and distribution.  During the
Grantee’s lifetime, the Options may be exercised only by the Grantee.

 

4.  Option Term.  Subject to any terms and conditions in this
Agreement relating to the vesting or exercise of the Options granted herein,
the Options will remain outstanding during a period of 10 years from the Date
of Grant (the “Option Term”).

 

5.  Tier One Options Vesting
Schedule. So long as the Grantee is continually employed by the Company or
a Subsidiary from the Date of Grant through each applicable vesting date,
twenty percent (20%) of the Tier One Options are vested as of the Date of Grant
with an additional twenty percent (20%) of the Tier One Options vesting on the
anniversary date of the Date of Grant of each year thereafter until all the
Tier One Options are fully vested.

 

6.  Tier Two Options Vesting
Schedule.  So long as the Grantee is
continually employed by the Company or a Subsidiary from the Date of Grant through
each applicable vesting date, twenty-five percent (25%) of the Tier Two Options
will vest on the second anniversary of the Date of Grant with an additional
twenty-five percent (25%) vesting on each anniversary of the Date of Grant
thereafter until all the Tier Two Options are fully vested.

 

7.  Grantee Rights.  Options that have vested will first become
exercisable on the date of vesting and will, unless otherwise provided in this
Agreement, remain exercisable in whole or in part until the expiration of the
Option Term. The Grantee has no rights as a stockholder of the Company with
respect to any shares of Common Stock underlying the Options until the shares
have been issued to the Grantee upon exercise of the Options.

 

8.  Change of Control.  Upon a Change of Control, all unvested
Options granted to Grantee shall automatically vest.  For purposes of this Agreement, a “Change of
Control” shall mean the occurrence of any of the following events:  (i) any “person” (as such term is used
in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”)) or “group” (within the meaning of Rule 13d-1
under the Exchange Act), other than a Permitted Holder (as defined below),
becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company
representing 50% or more of the combined voting power of the then outstanding
securities of the Company; (ii) there is consummated an agreement for the
sale or disposition of the Company or of all or substantially all of its
assets, including, without limitation, a disposition by means of a merger,
consolidation or similar transaction, other than to a Permitted Holder; or (iii) during
any period of two consecutive years, individuals who at the beginning of such
period constituted the Board (together with any new directors whose election by
the Board was approved by a vote of a majority of the Company’s directors then
still in office who were either directors at the beginning of such period or
whose election or nomination for election was previously so approved) cease for
any reason to constitute a majority of the Board then in office.  A transaction or series of transactions
giving rise to more than one of the events described in clauses (i), (ii) and
(iii) of the immediately preceding sentence shall be deemed to constitute
only one Change of Control that shall be deemed to occur upon the occurrence of
the first such event to occur.  As used
herein, “Permitted Holder” means and includes the New Investors or any of their
affiliates

 

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(as
such term is defined in Rule 1-02 of Regulation S-X under the Securities
Act), and any corporation owned, directly or indirectly, by the stockholders of
the Company in substantially the same proportions as their ownership of stock
of the Company.

 

9.  Termination Events.

 

(a)  Cause.  If the
Grantee is terminated from employment with the Company or a Subsidiary for
Cause (as defined in the 1999 Plan), then all the Options (whether vested or
unvested) will automatically terminate and be canceled without any action on
the part of the Company on the date that employment is terminated.

 

(b)  Other Termination.  If the Grantee’s employment with the Company
or a Subsidiary is terminated or ceases for any reason other than as described
in subsection 9(a), then all unvested Options will automatically terminate
and be canceled without any action on the part of the Company on the date of
such termination.  Except as otherwise
provided in subsection 9(a) or subsection 9(c), all Options that
have vested either prior to or upon the termination date of Grantee’s
employment will remain exercisable until the earlier to occur of (i) the
90th day following such date of termination or (ii) the
expiration of the Option Term.

 

(c)  Extension After Certain
Terminations.  If the Grantee’s
employment with the Company or a Subsidiary is terminated due to death or
Permanent Disability (as defined in the 1999 Plan), or is terminated for any
reason other than Cause and the Grantee dies or suffers a Permanent Disability
within 90 days after termination, then the Grantee or Grantee’s executors,
administrators, legatees or distributes, as the case may be, may exercise the
Options, to the extent vested and exercisable as of the date of termination,
until the earlier to occur of (i) the first anniversary of the date of
death or Permanent Disability or (ii) the expiration of the Option Term.

 

10.  Adjustments.  The exercise price and the number of shares
purchasable upon exercise of the Options may be adjusted by the Compensation
Committee, at its discretion, in accordance with Section 5 of the 1999
Plan upon the occurrence of certain corporate actions that may affect the
Common Stock.

 

11.  Exercise of Options.

 

(a)  The Options will be exercisable by notice (an “Exercise
Notice”) and payment to the Company in accordance with the procedure prescribed
herein; provided, that the aggregate Exercise Price with respect to any one
such exercise will not be less than $10,000, unless the exercise represents an
exercise of all Options that are vested and exercisable as of the date of the
exercise.  If the Grantee fails to accept
delivery of and pay for all or any part of the number of shares specified in
the Exercise Notice upon tender or delivery thereof, the Grantee’s right to
exercise the Options with respect to the undelivered shares may be terminated
in the sole discretion of the Compensation Committee.

 

(b)  Each Exercise Notice will (i) state
the number of shares in respect of which Options are being exercised, (ii) be
accompanied by payment as provided in Subsection (c) below and (iii) be
signed by the person or persons entitled to exercise the Options.  If Options are being exercised by any person
or persons other than the Grantee, the Exercise Notice will be

 

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accompanied by proof, satisfactory to the Company and its counsel, of
the right of the person or persons to exercise the Options.

 

(c)  Payment of the Exercise Price will
be made by delivering to the Company any one or a combination of (i) a
certified or bank cashier’s check payable to the Company or its order or a wire
transfer directly to an account specified by the Company, (ii) one or more
certificates evidencing shares of Common Stock owned by the Grantee immediately
prior to the exercise, together with a duly executed stock power, having an
aggregate Fair Market Value (as defined in the 1999 Plan) on the date on which
the Exercise Notice is given equal to the aggregate Exercise Price or (iii) a
copy of irrevocable instructions to a registered broker/dealer to deliver
promptly to the Company an amount of proceeds from the sale of shares of Common
Stock to be issued pursuant to the Options being exercised or of a loan made
with respect to shares of Common Stock to be issued pursuant to the Options
being exercised sufficient, in either case, to pay the Exercise Price.

 

(d)  The certificate or certificates
representing the Option Shares will be registered in the name of the person or
persons exercising the Options, or, if the Options are exercised by the Grantee
and the Grantee so requests in the applicable Exercise Notice, in the name of
the Grantee and the Grantee’s spouse, jointly, with right of survivorship.  The certificate or certificates will be
delivered within 10 days after receipt of payment by the Grantee; provided,
that in the case of subsection 11(c)(iii), the Company will not make
delivery of the certificate or certificates until payment is actually received
from the broker/dealer.

 

(e)  The Company will have no obligation
to issue or deliver fractional Option Shares but may, in its sole discretion,
elect to do so. In lieu of issuing any fractional Option Share, the Company
will pay to the person exercising the Options, promptly following exercise, an
amount in cash equal to the Fair Market Value of the fraction of an Option
Share as of the date of exercise.

 

12.  Non-Competition and
Confidentiality.

 

(a)  During employment with the Company or a Subsidiary and for
one year after termination thereof, the Grantee will not, directly or
indirectly, as a principal, officer, director, employee or in any other
capacity whatsoever, without prior written consent of the Company, engage in any
activity with, or provide services to, any person or entity engaged in, or
about to engage in, any business activity that is competitive with the business
then engaged in by the Company or a Subsidiary (collectively, the “Company
Business”), in any geographic area in which the Company Business is then
conducted or has been conducted during the twelve months preceding the
termination of the Grantee’s employment with the Company or a Subsidiary;
provided that, if the scope of employment of the Grantee during the twelve
months preceding the termination of the Grantee’s employment with the Company
or a Subsidiary related solely to Company Business conducted in a specific
geographic area or areas, then following such termination the scope of this
non-compete provision shall be limited to the same geographic area or areas.
The Grantee may make or hold any investment in securities of a competitive
business traded on a national securities exchange or traded in the over the
counter market, provided the investment does not exceed 1% of the issued and
outstanding stock of the competitive business. 
To the extent limitations or restrictions on the Grantee’s employment or
business activities

 

4

 

contained
in this subsection 12(a) conflict or are inconsistent with the
provisions of any other agreement between the Company or Subsidiary and
Grantee, the provisions of this subsection 12(a) shall govern.

 

(b)  Unless otherwise required by law or
judicial process, the Grantee shall, for a period of three (3) years
following termination of employment with the Company or a Subsidiary, retain in
the strictest confidence all confidential matters of the Company and its
Subsidiaries, including, without limitation, “know how”, trade secrets,
customer lists, pricing policies, operational methods, technical processes,
formulae, inventions and research projects and other business affairs of the
Company and its Subsidiaries (collectively “Confidential Information”) learned
by the Grantee heretofore or hereafter and shall not disclose such Confidential
Information to anyone outside of the Company and its Subsidiaries, either
during or after the Grantee’s employment with the Company or a Subsidiary,
except in the course of performing the Grantee’s duties as an employee of the
Company or a Subsidiary or with the Company’s or Subsidiary’s express written
consent; provided, that the Grantee shall provide notice to the Company or its
Subsidiary in advance of any disclosure required by law or judicial process in
a timely manner to permit the Company or Subsidiary to oppose such compelled
disclosure.  The limitation on disclosure
contained herein shall not apply to any portion of the Confidential Information
that (i) is or becomes part of the public domain through no fault of
Grantee, (ii) is obtained from a third party whom Grantee has no reason to
believe, following reasonable inquiry, is breaching a confidentiality or other
contractual undertaking by disclosing such information or (iii) is
otherwise disclosed to a third party by the Company or a Subsidiary on a
non-confidential basis.  To the extent
limitations or restrictions on Grantee’s disclosure of Confidential Information
(“Restrictions”) contained in this subsection 12(b) conflict or are
inconsistent with Restrictions contained in any other agreement between the
Company or a Subsidiary and Grantee, the Restrictions contained herein shall
govern.

 

(c)  The Grantee agrees that, if any
provision of subsections 12(a) or (b) is breached, monetary damages
would be difficult, if not impossible, to calculate and that injunctive relief
is the only appropriate remedy. If a breach of any provision of subsections 12(a) or
(b) is alleged to have occurred, the Grantee by execution of this
Agreement agrees to the entry of a temporary restraining order against Grantee
in regard to this Section 12 until such time that a determination is made
as to whether a breach has occurred.  The
Grantee further agrees that, if a court of competent jurisdiction determines or
if a stipulation is entered into that the Grantee has breached any provision of
subsections 12(a) or (b), a permanent injunction shall issue prohibiting
the Grantee from any further breach thereof. 
The Grantee agrees that the Company may refuse to allow the exercise of
any otherwise vested Options in the event of an alleged breach by the Grantee
of any provision of subsections 12(a) or (b), that these Options will be
terminated and canceled upon determination of a breach and that the Company is
not liable for the gain or loss by the Grantee due to the increase or decrease
of the Fair Market Value of the Common Stock during any period in which the
Company may have refused to accept exercise instructions pending final
determination of the Grantee’s breach of this Agreement.

 

13.  No Right To Continued
Employment.  Nothing in this
Agreement confers upon the Grantee the right to continue in the employ of the
Company or a Subsidiary, entitles the Grantee to any right or benefit not set
forth in this Agreement or interferes with or limits in any way the right of
the Company or a Subsidiary to terminate the Grantee’s employment.

 

5

 

14.  Withholding Taxes.  The Company may require the Grantee (or such
other person, if any, who has the right to exercise the Options) to pay to the
Company in cash the amount of any federal, state, local and foreign income and
other taxes that the Company or Subsidiary may be required to withhold before
delivering to the Grantee (or the other person) a certificate or certificates
representing shares of Common Stock. The Grantee may elect to have Common Stock
issuable upon exercise of any Options, having a Fair Market Value on the day
immediately preceding the date on which the certificates are delivered equal to
the amount of the withholding obligation, be withheld by the Company in
satisfaction of this obligation.

 

15.  Approval of Counsel.  Any exercise of Options and the issuance and
delivery of shares of Common Stock is subject to approval by the Company’s
counsel of all legal matters, including compliance with the requirements of the
Securities Act and the Exchange Act, as amended, the requirements of any stock
exchange upon which the Common Stock may then be listed and any applicable
state securities or “blue sky” laws.

 

16.  Certificates.  The certificates evidencing the shares of
Common Stock issued upon exercise of the Options will bear a legend (unless the
Company requires otherwise) stating:

 

THE SHARES EVIDENCED BY THIS
CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR
OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR UNLESS, IN THE OPINION OF COUNSEL FOR THE COMPANY, SUCH
REGISTRATION IS NOT REQUIRED.

 

17.  Registration.  The Company may, but shall have no obligation
to, register the shares of Common Stock issuable upon exercise of the Options.

 

18.  Notices.  All notices, demands and other communications
with respect to this Agreement will be in writing and be deemed to have been duly
given (i) when hand delivered, (ii) when sent, if sent by overnight
mail, overnight courier or facsimile transmission or (iii) when mailed by
United States registered mail, return receipt requested, postage prepaid,
addressed as follows:

 

Samsonite Corporation

11200 East
Forty-Fifth Avenue

Denver,
Colorado  80239-3018

Attention:
Corporate Secretary

 

All notices to the Grantee
or other person or persons entitled to exercise the Options will be addressed
to the Grantee or the other person or persons at the then current address of
the Grantee contained in the employee payroll records of the Company or a
Subsidiary.  Anyone to whom a notice may
be given under this Agreement may designate a new address by notice to that
effect.

 

19.  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 Grantee and
all rights granted to the Company under this Agreement will be binding upon the
Grantee and, to the

 

6

 

extent
provided in this Agreement, the Grantee’s heirs, legal representatives and
successors.  No other person has any
rights under this Agreement.

 

20.  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.

 

21.  Entire Agreement.  This Agreement and the Executive Stockholders
Agreement contain the entire understanding and agreement between the parties
and supersede all prior understandings and agreements between the parties
respecting the subject matter of this Agreement. This Agreement may not be
modified, waived or discharged unless agreed in writing signed by the parties.

 

22.  Waiver.  No waiver by either party of any breach by
the other party of this Agreement will be deemed a waiver of similar or
dissimilar breaches at the same, prior or subsequent time.

 

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

 

24.  Time Periods.  Any action required to be taken under this
Agreement within a certain number of days must be taken within that number of
calendar days; provided, that if the last day for taking an action falls on a
weekend or a holiday, the period during which the action may be taken will be
automatically extended to the next business day.

 

25.  Counterparts.  This Agreement may be executed in
counterparts.  Each counterpart is deemed
to be an original, but both together constitute one and the same instrument.

 

26.  Compliance.  The Grantee will abide by laws concerning
insider trading and the policies and decisions of the Company’s management in
all matters concerning the Options.

 

27.  Cancellation of Prior
Option Agreement.  The Company and
Grantee are parties to the Samsonite Corporation Executive Stock Option
Agreement, dated February 1, 2005, (the “Prior Option Agreement”).  In executing this Agreement, the Company and
Grantee acknowledge and agree that, as of March 17, 2005, (i) the
Prior Option Agreement is terminated and of no further force and effect and any
options provided for therein are cancelled, (ii) neither Company nor
Grantee have any vested or continuing rights or obligations with respect to or
arising out of the Prior Option Agreement, (iii) Grantee waives any and
all claims or rights arising out of or with respect to the Prior Option
Agreement and (iv) this Agreement and the Deferred Compensation Award
Agreement, both dated March 17, 2005, between the Company and Grantee
constitute full and complete consideration to Grantee for the termination,
cancellation and waiver of Grantee’s rights with respect to the Prior Option
Agreement.

 

28.  Executive Stockholders
Agreement.  The Grantee acknowledges
that Grantee is a signatory party to the Executive Stockholders Agreement and
is an “Executive” as defined therein. 
Grantee understands and acknowledges that the Executive Stockholders
Agreement shall be fully applicable to all Option Shares acquired by exercise
of the Options and that said

 

7

 

Option
Shares are “Common Stock” and “Executive Securities” as defined in the
Executive Stockholders Agreement.

 

 

	
  SAMSONITE CORPORATION

  	
  GRANTEE

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Thomas
  J. LeBlanc

  	
   

  	
   

  	
   

  
	
   

  	
  Thomas J. LeBlanc

  	
   

  
	
   

  	
  Vice
  President, Human Resources

  	
   

  
					

 

8

 

Stock
Option Schedule

 

	
  Executive Name

  	
   

  	
  Number of

  Options Granted

  	
   

  	
  Tier One Options

  	
   

  	
  Tier Two

  Options

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Richard
  Wiley

  	
   

  	
  6,000,000

  	
   

  	
  3,000,000

  	
   

  	
  3,000,000

  	
   

  
	
  Thomas
  Korbas

  	
   

  	
  3,000,000

  	
   

  	
  1,500,000

  	
   

  	
  1,500,000

  	
   

  

 

9Exhibit 10.3

 

SAMSONITE
CORPORATION

 

EXECUTIVE
DEFERRED COMPENSATION AWARD AGREEMENT

 

This Award
Agreement, dated March 17, 2005, sets forth the terms and conditions of
the grant to [see schedule] (“Grantee”) by Samsonite Corporation (the “Company”)
of a deferred compensation award (the “Award”). 
This Award Agreement relates to (i) the cancellation, as of the
date hereof, of the stock option (the “Prior Option”) previously granted to
Grantee by the Company, evidenced by the Executive Stock Option Agreement
entered into by Grantee and the Company, effective February 1, 2005 and (ii) the
grant, as of the date hereof, of a stock option which shall have such terms and
conditions as are set forth in the agreement evidencing such option (the “New
Option Agreement”).  The Award (as
defined in Section 1 of this Award Agreement) is granted under the
Samsonite Corporation Amended and Restated FY 1999 Stock Option and Incentive
Award Plan (the “1999 Plan”) and shall be subject to all of the terms and
conditions thereof.

 

1.                                       Grant
of Award.  The Company hereby grants
to Grantee effective as of March 17, 2005 (the “Award Grant Date”), an
Award in the amount of $[see schedule] (the “Award Amount”).  The Award Amount has been calculated as the
product of (i)             
(the number of shares of Stock subject to the Original Option as of the date of
grant of the Original Option) multiplied by (ii) $0.14 (the difference
between the per share Fair Market Value (as defined in the 1999 Plan) of the
Stock (as defined in the 1999 Plan) as of the Award Grant Date — $0.665 — and
the per share exercise price of the Prior Option — $0.525).  The Award Amount is subject to adjustment
pursuant to Section 2 of this Award Agreement.  In addition, for purposes of vesting in
accordance with Section 3(b) hereof, the Award shall be divided into
two equal parts—the Tier One Award and the Tier Two Award.

 

2.                                       Adjustment
to Award Amount.  Under certain
circumstances, the Award Amount is subject to downward adjustment.  If, on the date of vesting of any portion of
the Award, the per share Fair Market Value of the Stock is less than $0.665,
the Award Amount shall be adjusted so as to be equal to the product of (i) the
excess (if none, then this sub-clause (i) shall equal zero) of the per
share Fair Market Value of the Stock on such vesting date over $0.525,
multiplied by (ii) the number of shares of Stock subject to the Prior
Option as of the date of grant of the Prior Option, which amount shall then be
multiplied by the percentage of the Award to be paid pursuant to Section 3
of this Award Agreement.

 

3.                                       Vesting
of Award.

 

(a)                                  Subject
to paragraph (b) below, the Award shall vest in full on the earlier to
occur of (i) a “Change of Control” (as defined in the 2005 Option
Agreement) and (ii) September 25, 2013, in each case, provided
Grantee is employed by the Company or one of its subsidiaries as of such event
or date (each such date or event, a “Vesting Event”).

 

 

(b)                                 In
the event that, prior to the occurrence of a Vesting Event, Grantee is no
longer employed by the Company or any of its subsidiaries as a result of (i) Grantee’s
death or Permanent Disability (as defined in the Executive Stockholders
Agreement, dated as of September 25, 2003, by and among (A) the
Company, (B) ACOF Management, L.P., (C) Bain Capital (Europe) LLC, (D) Ontario
Teachers’ Pension Plan Board and (E) each of the persons listed on Schedule I
thereto (such agreement, the “Executive Stockholders Agreement”)) or (ii) Grantee’s
termination without Cause (as defined in the 2005 Option Agreement), all or a
portion of the Award shall become vested as of the effective date of such a
termination of employment, according to the following schedule:

 

Tier One Award:

 

	
  Termination
  prior to March 17, 2006

  	
   

  	
  20

  	
  %

  
	
  Termination
  on or after March 17, 2006 and prior to March 17, 2007

  	
   

  	
  40

  	
  %

  
	
  Termination
  on or after March 17, 2007 and prior to March 17, 2008

  	
   

  	
  60

  	
  %

  
	
  Termination
  on or after March 17, 2008 and prior to March 17, 2009

  	
   

  	
  80

  	
  %

  
	
  Termination
  on or after March 17, 2009

  	
   

  	
  100

  	
  %

  

 

Tier Two Award:

 

	
  Termination
  prior to March 17, 2007

  	
   

  	
  0

  	
  %

  
	
  Termination
  on or after March 17, 2007 and prior to March 17, 2008

  	
   

  	
  25

  	
  %

  
	
  Termination
  on or after March 17, 2008 and prior to March 17, 2009

  	
   

  	
  50

  	
  %

  
	
  Termination
  on or after March 17, 2009 and prior to March 17, 2010

  	
   

  	
  75

  	
  %

  
	
  Termination
  on or after March 17, 2010

  	
   

  	
  100

  	
  %

  

 

Any portion of the Award that does not become
vested in accordance with this Section 3(b) upon termination of
Grantee’s employment with the Company and its subsidiaries shall be immediately
forfeited and cancelled and Grantee shall have no further rights with respect
to such cancelled portion of the Award.

 

4.                                       Payment
of Award.  Grantee shall be entitled
to receive payment in respect of any portion of the Award that becomes vested
in accordance with Section 3 no later than one month following the date
upon which such portion becomes vested.

 

5.                                       Form of
Payment.  Payment of the vested
portion of the Award shall be made in a lump sum, in cash or Stock or a
combination of cash and Stock (the “Payment”), in the

 

2

 

discretion of
the Company; provided, however, that any Payment shall include an amount of
cash at least equal to the amount necessary to satisfy all income and
employment tax obligations incurred by Grantee with respect to such Payment
(the “Tax Obligation”).  The amount of
Grantee’s Tax Obligation shall be reasonably determined by the Company,
provided that Grantee shall be deemed to pay federal income tax at the highest
marginal rate of federal income taxation applicable to individuals in the year
such Payment is to be made and state and local income taxes at the highest
marginal rate of taxation applicable to individuals in the state and locality
of Grantee’s residence on the date such Payment is to be made.  If any portion of the Payment is paid in
Stock, the number of shares to be issued shall be calculated by dividing the
dollar value of such portion of the Award by the Fair Market Value of a share
of Stock on the relevant vesting date. 
Any fractional shares shall be paid in cash.  Shares of Stock payable pursuant to the Award
shall be issued under the 1999 Plan.

 

6.                                       Executive
Stockholders Agreement.  As a
condition to the grant of the Award, Grantee acknowledges that Grantee is a
signatory party to the Executive Stockholders Agreement and is an “Executive”
as defined therein.  Grantee understands
and acknowledges that the Executive Stockholders Agreement shall be fully
applicable to all shares of Stock, if any, payable upon payment of the Award and
that such shares of Stock, if any, will be considered “Common Stock” and “Executive
Securities” as defined in said agreement.

 

7.                                       Non-transferability.  The Award may not be assigned, transferred or
disposed of, or pledged or hypothecated in any way, and may not be subject to
execution, attachment or other process, other than by will or by the laws of
descent and distribution.  During Grantee’s
lifetime, payments with respect to the Award may be made only to Grantee.

 

8.                                       Withholding.  The Company shall have the right to withhold
from any Payment otherwise due to Grantee amounts necessary to satisfy any
applicable federal, state, local taxes or other withholding requirements that
may be applicable to the Award, or to require Grantee to make other arrangements
(which may include a payment to the Company in cash) with respect to the
satisfaction of such withholding requirements.

 

9.                                       Approval
of Counsel.  Any issuance and
delivery of Stock hereunder is subject to approval by the Company’s counsel of
all legal matters, including compliance with the requirements of the Securities
Act, the Securities Exchange Act of 1934, as amended, the requirements of any
stock exchange upon which the Stock may then be listed and any applicable
foreign securities laws, state securities or “blue sky” laws.

 

10.                                 Registration;
Certificates.  The Company may, but
shall have no obligation under this Award Agreement to, register under the
securities laws of any jurisdiction the shares of Stock issuable pursuant to
the Award.  Unless the Company determines
otherwise in its discretion, certificates evidencing Payment of the Award in
Stock will bear a legend stating:

 

THE SHARES EVIDENCED BY THIS CERTIFICATE MAY NOT
BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED,

 

3

 

OR UNLESS, IN THE OPINION OF COUNSEL FOR THE
COMPANY, SUCH REGISTRATION IS NOT REQUIRED.

 

11.                                 Notices.  All notices, demands and other communications
with respect to this Award Agreement shall be in writing and be deemed to have
been duly given (i) when hand delivered, (ii) when sent, if sent by
overnight mail, overnight courier or facsimile transmission or (iii) when
mailed by United States registered mail, return receipt requested, postage
prepaid, addressed as follows:

 

Samsonite Corporation

11200 East Forty-Fifth Avenue

Denver, Colorado 80239-3018

Attention: 
Corporate Secretary

 

All notices to Grantee or another person or
persons entitled to receive payment in respect of the Award shall be addressed
to Grantee or such other person or persons at Grantee’s then current address
contained in the employee payroll records of the Company or a Company
subsidiary.  Anyone to whom a notice may
be given under this Award Agreement may designate a new address by notice to
that effect.

 

12.                                 Successors
and Assigns.  This Award Agreement
shall inure to the benefit of and be binding upon each successor and assign of
the Company.  All obligations imposed
upon Grantee and all rights granted to the Company under this Award Agreement
shall be binding upon Grantee and, to the extent provided in this Award
Agreement, Grantee’s heirs, legal representatives and successors.  No other person has any rights under this
Award Agreement.

 

13.                                 No
Right to Continued Employment. 
Nothing in this Award Agreement confers upon Grantee the right to
continue in the employ of the Company or any of its subsidiaries, entitles
Grantee to any right or benefit not set forth in this Award Agreement or
interferes with or limits in any way the right of the Company or a Company
subsidiary to terminate Grantee’s employment.

 

14.                                 Governing
Law; Compliance with Law; Waivers. 
This Award Agreement will be construed and governed in accordance with
the laws of the State of New York. 
Grantee agrees to abide by any laws concerning insider trading and the
policies and decisions of the Company’s management in all matters concerning
the Award.  No waiver by either party of
any breach by the other party to this Award Agreement shall be deemed a waiver
of similar or dissimilar breaches at the same, prior or subsequent time.

 

15.                                 Severability;
Counterparts.  If any one or more
provisions of this Award Agreement are 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.  This Award Agreement may
be executed in counterparts, each of which shall be deemed an original and both
together shall constitute one and the same instrument.

 

4

 

IN WITNESS WHEREOF, the parties hereto have
set their hands as of the date first hereabove written.

 

	
  SAMSONITE CORPORATION

  	
  GRANTEE

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Thomas
  J. LeBlanc

  	
   

  	
   

  	
   

  
	
   

  	
  Thomas J. LeBlanc

  	
   

  
	
   

  	
  Vice
  President, Human Resources

  	
   

  
					

 

5

 

Deferred
Compensation Schedule

 

	
  Executive Name

  	
   

  	
  Award Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Richard
  Wiley

  	
   

  	
  $

  	
  840,000

  	
   

  
	
  Thomas
  Korbas

  	
   

  	
  $

  	
  420,000

  	
   

  

 

6

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