Document:

Matters to be covered at preliminary injunction hearing

Exhibit

10.64

 

                                                                                                                December

4, 2001

 

 

Mr. John T. Toolan

31 Van Holten Road

Basking Ridge, New Jersey  07920

 

Dear Jack:

 

Reference is made to the Offer Letter (the “Offer

Letter”), dated January 29, 2001, between you and Russ Berrie and Company, Inc.

(a copy of which is attached hereto as Exhibit A).  The purpose of this Letter Agreement is to amend portions of the

Offer Letter as described below.

 

1.         Paragraph 4 of the Offer Letter shall be deleted in its

entirety and replaced with the following:

 

“4.       STOCK OPTIONS.       For the 2001 calendar year, you will be

granted, effective on your first day of employment, stock options equal to 40%

of your base salary pursuant to the terms and provisions of an option

agreement, in form and substance satisfactory to the Company setting forth

substantially all of the terms and provisions of grants made under the Company’s

1999 Stock Option and Restricted Stock Plan (the “Plan”).  Beginning in the 2002 calendar year, you

will be eligible to participate in the Plan based on its current

provisions.  Pursuant to the Plan, if

you are eligible, you will receive stock options equal to 40% of your base

salary.  Although participants in the

Plan are generally required to have 18 months of service prior to the initial

grant of options, the committee that administers the Plan may authorize the

participation of persons having less than 18 month’s employment.  In your case, the committee will make such

authorization and waive such requirement. 

If eligible, you will receive your first grant under the Plan on the

first trading day of the 2002 calendar year for the Company’s Common Stock on

the New York Stock Exchange.”

 

 

 

2.         Paragraph 5 of the Offer Letter shall be deleted in its

entirety and replaced with the following:

 

“5.       STOCK OPTIONS BASED ON OPERATING

PROFIT.

In addition to the

stock options set forth above, you will be eligible to receive 10,000 stock

options (“Performance Options”) for each year in which the Company’s domestic

operating profit exceeds the prior year’s domestic operating profit by at least

15%.  You will be eligible to receive

such Performance Options beginning January 1, 2002, if the Company’s 2001

domestic operating profit exceeds the 2000 domestic operating profit by at

least 15%.  Performance Options will

vest and be exercisable one year after the date of grant and remain exercisable

for a period of 10 years from the date of grant (subject to earlier termination

under certain circumstances set forth under the performance option agreement),

and will be subject to the terms and provisions of a performance option

agreement, in form and substance satisfactory to the Company setting forth

substantially all of the terms and provisions of grants made under the

Company’s 1999 Stock Option and Restricted Stock Plan (the “Plan”) or the then

current successor option plan to the Plan adopted by the Company.”

 

3.     Paragraph 6 of the Offer Letter shall be amended by adding the

following sentence after the last sentence of the paragraph:  “The restricted stock awards described above

shall be granted pursuant to the Plan.”

 

4.     As amended hereby, the Offer Letter remains in full force and

effect.

 

	

   

  	

  Very truly yours,

  
	

   

  	

   

  	

   

  
	

   

  	

  RUSS BERRIE AND COMPANY, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

        /s/

  Russell Berrie

  
	

   

  	

  Russell Berrie

  
	

   

  	

  Chairman

  
	

   

  	

   

  	

   

  
	

  ACCEPTED AND AGREED:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

            

  /s/ John T. Toolan

  	

   

  	

   

  
	

  John T. ToolanExhibit 10

 

Exhibit

10.65

 

 

                                                                                                                December

11, 2001

 

Mr. Tom Bowles

22 Westwood Drive

Carmel, NY 10512

 

Dear Tom:

 

                I am pleased to

offer you the position of Chief Operating Officer of Russ Berrie and Company,

Inc. effective January 2, 2002.

 

                Your employment

with the Company will include the following:

 

1.     COMPENSATION.  Your base salary will be at an annual rate

of $250,000.  The Company has an annual

bonus program.  For the year 2002, you

will be eligible for the Vice President/Management Incentive Program (“VP/MIP”)

bonus program (generally paid in February of the following year).  For the year 2002, the VP/MIP bonus is equal

to 20% of your base salary.  The bonus

program is predicated on meeting the Company’s minimum operating profit for the

applicable year (2002).  Beginning with

the year 2003, you will be eligible for the Executive Incentive Program (“EIP”)

bonus program (also generally paid in February of the following year).  The EIP is equal to 50% of your base

salary.  Generally, the full 50% bonus

vests over a period of three years. 

However, this three-year vesting period can be waived and, in your case,

will be.  Again, the bonus program is

predicated on meeting the Company’s minimum operating profit for the applicable

year.  The Company also has an annual

performance bonus program.  You will

also be eligible to participate in that program beginning with the year

2002.  Payment of this additional bonus

is predicated on the Company exceeding budgeted operating profit by at least

10% during the relevant 12-month period.  

In order to receive the aforementioned bonus payments, you must be

actively employed by the Company at the time of the payment(s).

 

2.     GROUP HEALTH AND DISABILITY.  After 90 days of continuous employment, you will be eligible to

participate in:

 

a.     Our contributory Group Health Plan.

 

 

 

b.     Our non-contributory Life Insurance Plan in

the amount one times your base salary.

c.     Our non-contributory Long Term Disability.

 

3.     DENTAL.  After

twelve months of employment, you will be eligible to participate in our

contributory Dental Insurance Plan.

 

4.     STOCK OPTIONS.  Stock options are granted to eligible

employees at the beginning of each calendar year.  You will be eligible to participate in the Company’s Stock Option

Plan based on its current provisions. 

You will receive stock options equal to 40% of your base salary. Under

the provisions of the stock option plan, you must have 18 months of service

prior to the first grant.  However, this

can be waived and, in your case, would be. 

You will receive your first grant at the beginning of 2002.

 

5.     STOCK OPTIONS BASED ON OPERATING PROFIT.  In addition to the stock options set forth

above, you will be eligible to receive 10,000 stock options (“Performance

Options”) for each year in which the Company’s domestic operating profit

exceeds the prior year’s domestic  operating profit by at least 15%.  You will be eligible to receive such

Performance Options beginning January 1, 2003 if the Company’s 2002 domestic  operating

profit exceeds 2001 domestic  operating profit by at least 15%.  Performance Options will vest and be

exercisable one year after the date of grant and remain exercisable for a

period of 10 years from the date of grant (subject to earlier termination under

certain circumstances set forth under the performance option agreement) and

will be subject to the terms and provisions of a performance option agreement,

in form and substance satisfactory to the Company setting forth substantially

all of the terms and provisions of grants made under the Company’s 1999 Stock

Option and Restricted Stock Plan (the “Plan”) or the then-current successor

option plan to the Plan adopted by the Company.  In order to receive Performance Options, you must be an active

employee of the Company on the date of the grant.

 

6.     RESTRICTED STOCK.  Beginning with the year 2003 and for a total

of 5 consecutive years (i.e., 2003, 2004, 2005, 2006 and 2007), you will also

be eligible to receive $100,000 worth of restricted stock of the Company per

year for each of these 5 years.  During

the first year following the date of the grant of such restricted stock, the

shares of such restricted stock remain wholly restricted.  After the first year and for the following 3

years, such restricted stock shall vest, one-third each year until fully

vested.  By way of example, the $100,000

worth of restricted stock that is granted on the first business day of January

2003 would remain wholly restricted throughout 2003.  On January 1, 2004, one-third of such shares would vest.  On January 1, 2005, another

 

 

2

 

 

 

one-third of such shares

would vest and on January 1, 2006, the remaining one-third of such shares would

vest so that on January 1, 2006 all shares that had been granted on January 1,

2003 would be fully vested.  The

restricted stock award described above shall be granted pursuant to the

Plan.  In order to receive these

restricted stock awards, you must be an active employee of the Company on the

date of the award.

 

7.     401(k).  After six months of employment, you will be eligible to

participate in the Company’s 401(k) plan based on its current provisions.  The Company’s contribution to your 401(k)

account fully vests over a period of four years of employment.

 

8.     VACATION.  Beginning January 2002, you will be eligible for three weeks

vacation per year.

 

9.     HOLIDAY/SICK. You will be eligible

for paid holidays and sick time in accordance with Company policy.

 

10.   COMPANY CAR.  You will receive an allowance of up to $28,000 to purchase an

automobile in the Company’s name.  This

allowance is paid every three years toward an automobile.  Certain expenses, such as gasoline,

maintenance/repairs and insurance, will be provided by the Company.

 

11.   SEVERANCE.  In the event that you are terminated from the Company for reason

other than cause or other than your own voluntary resignation, you will receive

6 months’ severance pay at the rate that you are being paid on your termination

date.  This severance will be paid to

you over a 6 month period on the Company’s normal pay schedule.  During this period, you will also be

entitled to remain on the Company’s heath and dental insurance plan (making the

same payroll contribution as when you were an active employee).  If you obtain gainful employment during this

6 month severance period (with employment being defined as full-time salaried

work), your severance payments will be terminated, effective the date that you

start your new employment.

 

The Company

reserves the right to change or modify these programs.  In addition, employment with the Company is

considered “at-will” and does not represent a specific guarantee.

 

 

3

 

Tom, I want to

welcome you to Russ Berrie and Company, Inc. and wish you much success in your

new position.

 

	

   

  	

   

  	

  Very truly yours,

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  /s/ Russ Berrie

  
	

   

  	

   

  	

  Russ Berrie

  
	

   

  	

   

  	

  Chairman

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  ACCEPTED AND AGREED:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

               /s/ Tom Bowles

  	

   

  	

   

  
	

  Tom

  Bowles

  	

   

  	

   

  

 

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]