Document:

exv10w3

 

 Exhibit 10.3

CONFIDENTIAL

AGREEMENT

               THIS AGREEMENT (“Agreement”) is made and entered into on this 29th day of
July, 2004 by and between David L. Rogers, a Minnesota resident (“Rogers”), and
Wilsons The Leather Experts, Inc., a Minnesota corporation (the “Company”).

BACKGROUND

          A.     Rogers has been employed by the Company as its President and Chief
Operating Officer and currently serves as a director of the Company.

          B.     Rogers was employed under the terms and conditions of an Employment
Agreement dated May 25, 1996 between Rogers and the Company, as amended by the
First Amendment to Employment Agreement, dated March 23, 2000, and the Second
Amendment to Employment Agreement, dated April 5, 2004 (collectively the
“Amended Employment Agreement”). During his employment, Rogers also was
eligible to participate in other plans and programs of the Company, including
but not limited to the Executive and Key Management Incentive Plan (“Incentive
Plan”), the 1996 Stock Option Plan, as amended (“1996 Plan”), and the 2000 Long
Term Incentive Plan, as amended (“2000 Plan”).

          C.     Rogers and the Company are parties to certain stock option agreements
(the “Option Agreements”), which grant to Rogers certain options to purchase
shares of the Company’s common stock (the “Options”) under circumstances
specified in the Option Agreements and the 1996 Plan or the 2000 Plan, as
applicable, and to certain restricted stock agreements (“Restricted Stock
Agreements”), which grant to Rogers certain shares of restricted stock
(“Restricted Stock”) under circumstances and subject to restrictions described
in the Restricted Stock Agreements and the 2000 Plan.

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CONFIDENTIAL

          D.     The parties have agreed that it is in their mutual interests that
Rogers resign as an employee and officer of the Company effective at the end of
the day on August 2, 2004 (the “Separation Time”).

          E.     The parties are concluding their employment relationship amicably, but
mutually recognize that such a relationship may give rise to potential claims
or liabilities.

          F.     The parties expressly deny that they may be liable to each other on any
basis or that they have engaged in any unlawful or improper conduct toward each
other or treated each other unfairly.

          G.     The parties have agreed to a full settlement of all issues potentially
in dispute between them.

          H.     The Company acknowledges that Rogers is an officer of Peninsula
Investment Partners, L.P. (“Peninsula”) and agrees that his association with
Peninsula does not violate any provision of this Agreement.

          NOW THEREFORE, in consideration of the mutual promises and provisions
contained in this Agreement and in the Releases referred to below, the parties,
intending to be legally bound, agree as follows:

AGREEMENTS

          1.     Resignations. By executing this Agreement, Rogers confirms his
resignation of all positions held by Rogers as an employee and officer of the
Company and as a director and officer of all subsidiaries of the Company, and
the Company confirms its acceptance of Rogers’ resignations, effective as of
the Separation Time. Rogers shall be paid his base salary through the
Separation Time, in bi-weekly installments, at the rate in effect as of the
date of this Agreement. Following the Separation Time, the Company will pay Rogers for any accrued and

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CONFIDENTIAL

unused paid time off
in accordance with the regular payroll practices of the Company. Rogers will
remain as a director of the Company in accordance with the charter documents of
the Company, and nothing in this Agreement shall affect his continued service
as a director.

          2.     Limited
Continuation of Amended Employment Agreement.

                  a.     As of the Separation Time, the Amended Employment Agreement shall terminate and the
parties’ obligations thereunder shall cease; provided, however, that Sections
3(b) (but only to the extent necessary to determine rights and benefits under
Section 6(c) of the Amended Employment Agreement), 6(c), 6(d), 6(e), 6(f),
6(g), 8, 9, 10, 11, 14, 15, 16, 17 and 22 (the “Continuing Provisions”) of the
Amended Employment Agreement shall continue in full force and effect.

                  b.     The Company and Rogers agree that it is in their mutual interests that
Rogers resign as an employee and officer of the Company and that they provide
for a smooth transition in connection with Rogers’ resignation from the Company
up to the Separation Time. Accordingly, the Company shall provide to Rogers
the pay and benefits specified in Sections 3(b), 6(c), 6(d), 6(e), 6(f), and
6(g) of the Continuing Provisions of the Amended Employment Agreement as if
Rogers’ resignation hereunder constituted a resignation by Rogers for Good
Reason or a termination by the Company without Cause (as such terms are defined
in the Amended Employment Agreement).

                  c.     The existence of any dispute respecting the interpretation of this
Agreement, the Rogers Release (as defined below), or the Company Release (as
defined below); the alleged breach of this Agreement, the Rogers Release, or
the Company Release; or the rescission by Rogers of the Rogers Release (as
provided below) will not nullify or otherwise

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affect the parties’
obligations under the Continuing Provisions of the Amended Employment
Agreement or subparagraph 2(b) of this Agreement.

                      d. The benefits to be provided to Rogers under Section 6(c)(iv) of the
Continuing Provisions of the Amended Employment Agreement shall be implemented
as follows:

	 	i.	 	In the event that the Company is not
permitted by its medical, dental and life insurance
plans, or any of them, to continue coverage of Rogers
and his dependents in the same manner as an employee and
dependents during the period from the Separation Time
through August 1, 2006 (“the Severance Period”), such
coverage shall be provided instead pursuant to the
Company’s obligations under state and federal law to
offer continuation of such coverage for the longest
period required by such laws, as applicable, and Rogers
hereby elects to accept each such offer. To the extent
any such period required by law is shorter than the
Severance Period, the Company shall cause an individual
conversion insurance policy or policies to be offered to
Rogers and his dependents under the applicable medical,
dental or life insurance plan for the balance of the
Severance Period, in the same manner that would be
available to them if they were eligible for such a
conversion policy on the date of this Agreement, without
requiring either of them to provide any evidence of
insurability.
	 
	 	ii.	 	In the event that the Company is not
permitted by its long-term disability insurance plan to
continue coverage of Rogers in the same manner as an
employee during the entire Severance Period, the Company
shall provide such coverage through a new individual
policy covering him with substantially the same
benefits, or may elect to self-insure such benefits.
	 
	 	iii.	 	In the event that, during the
Severance Period, Rogers and his dependents, or any of
them, are able to obtain any individual insurance
coverage similar to any coverage that is required to be
provided by or through the Company under Section
6(c)(iv) of the Amended Employment Agreement, he may
elect to substitute such individual coverage for any
coverage required to be provided by the Company during
the Severance Period; and the Company shall pay its
share of the cost for such substitute coverage pursuant
to the following subparagraph 2(d)(iv) of this
Agreement.

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	 	iv.	 	The Company shall pay for the cost of
any and all medical, dental and life insurance and
disability benefits required to be provided under
Section 6(c)(iv) of the Amended Employment Agreement
during the Severance Period, except to the extent of any
portion of such cost that was payable by Rogers’
contributions (on an after-tax or pre-tax basis) as an
employee of the Company as of the date of this
Agreement, which contributions Rogers shall continue to
pay as a condition of continuing such coverage.

          3.       Release
of Claims by Rogers. It is the intention of the parties that,
at or within twenty-one (21) days after the Separation Time, Rogers will
execute a Release, in the form attached to this Agreement as Exhibit A (the
“Rogers Release”).

          4.       Release
of Claims by the Company. Promptly upon receipt by the Company
of the Rogers Release signed by Rogers, the Company will execute a Release, in
the form attached to this Agreement as Exhibit B (the “Company Release”). The
Company Release shall not become effective or enforceable unless and until
Rogers signs and does not revoke or rescind the Rogers Release pursuant to its
terms.

          5.       Additional
Terms. If (i) Rogers signs the Rogers Release as provided
in paragraph 3 above and does not revoke or rescind the Rogers Release within
the applicable period set forth in the Rogers Release (the “Rescission
Period”), (ii) the Company has received written confirmation from Rogers, in
the form attached to this Agreement as Exhibit C, dated not earlier than the
day after the expiration of the Rescission Period, that Rogers has not
rescinded and will not rescind the Rogers Release, and (iii) Rogers is in
material compliance with the terms of paragraph 6 of this Agreement and the
Rogers Release, then:

                    a.       Incentive
Award. The Company will pay, or cause one or more of its
Subsidiaries to pay, Rogers the difference between (i) the full amount of the
incentive award for the
Incentive Plan Year in which the Separation Time occurs that would have been
payable to

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CONFIDENTIAL

Rogers pursuant to the terms and conditions of the Incentive Plan
had Rogers remained employed by the Company for the duration of such Plan Year
and (ii) the amount paid to Rogers pursuant to Section 6(c)(iii) of the
Continuing Provisions of the Amended Employment Agreement. This payment shall
be made on the same date and in the same manner that awards under the Incentive
Plan for such year are paid to the other participants in the Incentive Plan.

               b.             Outplacement. The Company will retain Right Management Consultants
(“Right”) to provide Rogers with Right’s full “Key Executive Service,” provided
that Rogers commences such services no later than November 1, 2004 by
contacting Right directly. The maximum cost of such services to be paid by the
Company to Right shall not exceed $30,000.

               c.             Extension
of Option Exercise Period. Contemporaneous with the
Company’s receipt of Exhibit C signed by Rogers, the Company and Rogers shall
enter into amendments to the Option Agreements (“Extension Amendments”), in the
forms attached to this Agreement as Exhibit D, extending the time for Rogers to
exercise the Options following termination of his employment with the Company.

               d.             Attorneys’
Fees. The Company will reimburse Rogers for the reasonable
attorneys’ fees and expenses he incurs in conjunction with the negotiation and
review of this Agreement and the attached exhibits, up to a maximum of $20,000,
provided that Rogers submits a request for reimbursement, and applicable
statements and receipts, on or before August 31, 2004.

     6.       Non-Competition
Agreement.

               a.             Agreement
Not to Compete.For a period of twelve (12) consecutive
months after the Separation Time, Rogers will not, without the express written

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authorization of the Board of Directors of the Company, directly or indirectly, in North
America, (i) provide services for or hold any interest in (including without
limitation as a proprietor, owner, principal, agent, partner, officer,
director, stockholder, employee, member, consultant or otherwise) any person or
entity primarily engaged in or planning to enter into the business of
manufacturing, designing, marketing, distributing, or selling leather
outerwear, apparel, or accessories; or (ii) provide any services relating to
the manufacturing, designing, marketing, distributing, or selling of leather
outerwear, apparel or accessories for any person or entity, including but not
limited to any business in which he is a proprietor, owner, principal,
partner, stockholder or member.

                  b.       Limitation
on Covenant. Ownership by Rogers, as a passive investment,
of less than 1.0% of the outstanding shares of capital stock of any corporation
listed on a national securities exchange or publicly traded on NASDAQ will not
itself constitute a breach of this paragraph 6.

                  c.       Acknowledgment.
Rogers agrees that the restrictions and agreements
contained in this paragraph 6 are reasonable and necessary to protect the
legitimate interests of the Company and that any violation of this paragraph 6
will cause substantial and irreparable harm to the Company that would not be
quantifiable and for which no adequate remedy would exist at law. Rogers
acknowledges that it would be difficult to fully compensate the Company for
damages resulting from any breach by him of the provisions of paragraph 6 of
this Agreement. Accordingly, in the event of any actual or threatened breach
of such provisions, the Company will (in addition to any other remedies it may
have) be entitled to temporary and/or permanent injunctive and other equitable
relief to enforce such provisions, and such relief may be granted without the
necessity of proving actual damages.

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CONFIDENTIAL

                             d.     Blue
Pencil Doctrine.  If the duration or geographical extent of, or
business activities covered by, this paragraph 6 are in excess of what is valid
and enforceable under applicable law, such provision will be construed to cover
only that duration, geographical extent, or activities that are valid and
enforceable. Rogers acknowledges the uncertainty of the law in this respect
and expressly stipulates that this paragraph 6 be given the construction which
renders its provisions valid and enforceable to the maximum extent (not
exceeding its express terms) possible under applicable laws.

                    7.     Restricted
Stock.  The Company and Rogers acknowledge and agree that
the grants of Restricted Stock listed in this paragraph below are Rogers’ only
holdings of restricted stock of the Company and that, as of the Separation
Time, all shares of the Restricted Stock shall have vested:

	 	 	 	 	 
	Date of Grant
	 	Number of Shares

	3/29/2001
	 	 	17,000	 
	 
	 	 	 	 
	3/19/2003
	 	 	33,000	 

                     8.     Stock
Options.  The Company and Rogers acknowledge and agree that the
Options listed in this paragraph below are Rogers’ only options to purchase
shares of the Company’s common stock and that, as of the Separation Time, the
Options shall have fully vested and be immediately exercisable:

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CONFIDENTIAL

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Option	 	Date	 	Exercise	 	Number
	Plan
	 	of Grant
	 	Price
	 	of Shares

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	1996 Plan
	 	 	1/28/1998	 	 	$	5.833	 	 	 	148,500	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2000 Plan
	 	 	8/24/2000	 	 	$	20.6875	 	 	 	21,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2000 Plan
	 	 	3/29/2001	 	 	$	18.9375	 	 	 	27,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2000 Plan
	 	 	9/20/2001	 	 	$	11.20	 	 	 	150,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2000 Plan
	 	 	6/25/2002	 	 	$	13.71	 	 	 	99,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2000 Plan
	 	 	3/19/2003	 	 	$	4.00	 	 	 	66,000	 

                  9.     Retirement Plans. To the extent that Rogers is currently a participant
in any retirement, pension, or profit sharing plans of the Company, Rogers will
be entitled to his rights and benefits under these plans at the times and under
the terms and conditions set forth in any such plan.

                  10.     Payments/Benefits in Event of Death. In the event of Rogers’ death,
the payments to Rogers pursuant to Section 6(c) of the Continuing Provisions of
the Amended Employment Agreement and subparagraphs 5(a) and 5(d) of this
Agreement shall be payable to Rogers’ estate, and the health and dental
benefits provided pursuant to Section 6(c) of the Continuing Provisions of the
Amended Employment Agreement shall be continued for Rogers’ dependents.

                  11.     Public Announcement. A public announcement of Rogers’ resignation as
President of the Company shall be made at a time and in a manner determined by
the Company in consultation with Rogers and shall be limited to the text
mutually agreed upon for such announcement by the Company and Rogers.

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                  12.     Indemnification.
 Notwithstanding Rogers’ separation from the Company,
with respect to events that occurred during his tenure as an employee or
officer of the Company, Rogers will be entitled, as a former employee or officer of the Company,
to the same rights that are afforded to other current or former employees or
officers of the Company, now or in the future, to indemnification and
advancement of expenses as provided in the charter documents of the Company and
under applicable law, and to indemnification and a legal defense to the extent
provided from time to time to current officers by any applicable general
liability and/or directors’ and officers’ liability insurance policies
maintained by the Company.

                  13.     Cooperation.
 At the Company’s reasonable request and upon reasonable
notice, Rogers will, from time to time and without further consideration: (a)
timely execute and deliver such acknowledgements, instruments, certificates,
and other ministerial documents as may be necessary or appropriate to formalize
and complete the Company’s corporate records; and (b) for up to five (5) hours
in any calendar month (on a non-cumulative basis) until August 1, 2006, at such
times as shall be convenient for Rogers, discuss and consult with the Company
regarding other matters relating to his responsibilities while employed by the
Company.

                  14.     Mutual Confidentiality.

                            a.     General
Standard.  It is the intent of the parties that the terms of
Rogers’ separation from the Company, including the provisions of this Agreement
and the Rogers Release and the Company Release (collectively “Confidential
Separation Information”), will be forever treated as confidential.
Accordingly, Rogers and the Company will not disclose Confidential Separation
Information to anyone at any time, except as provided in subparagraph 14.b.
below. Confidential Separation Information does not include the fact that
Rogers resigned

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CONFIDENTIAL

his employment with the Company or the compensation and
benefits he was receiving in connection with his employment with the Company
immediately prior to the Separation Time.

	 	b.	 	Exceptions.
	 
	 	i.	 	It will not be a violation of this
Agreement for the parties to disclose Confidential
Separation Information in reports to governmental
agencies as required by law, including but not limited
to disclosure as required by federal securities laws and
regulations or to any federal or state tax authority.
It is understood and agreed that this Agreement and
summaries thereof will be disclosed in filings with the
Securities and Exchange Commission and summarized in
proxy statements disseminated to shareholders of the
Company.
	 
	 	ii.	 	It will not be a violation of this
Agreement for Rogers to disclose Confidential Separation
Information to his wife, his immediate family, his
attorneys, his accountants or tax advisors.
	 
	 	iii.	 	It will not be a violation of this
Agreement for Rogers to disclose to employers and/or
prospective employers that he is constrained from
certain activities as a result of the terms of paragraph
6 of this Agreement and by paragraphs 8 and 11 of the
Continuing Provisions of the Amended Employment
Agreement.
	 
	 	iv.	 	It will not be a violation of this
Agreement for either party to disclose Confidential
Separation Information to the Company’s auditors, its
attorneys, or its directors, officers, employees, and
agents who have a legitimate reason to obtain the
Confidential Separation Information in the course of
performing their duties or responsibilities for the
Company.
	 
	 	v.	 	It will not be a violation of this
Agreement for either party to disclose Confidential
Separation Information in connection with any litigation
or arbitration proceeding involving the parties’ rights
or obligations under this Agreement or the Rogers
Release or the Company Release.
	 
	 	vi.	 	It will not be a violation of this
Agreement for either party to make statements consistent
with the public announcement set forth in paragraph 11
of this Agreement.

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CONFIDENTIAL

                  15.     Records, Documents, and Property. Notwithstanding the provisions of
Section 8(b) of the Amended Employment Agreement, so long as Rogers serves as a
director of the Company, Rogers may retain in his possession his Company
computer and documents of the Company reasonably related and necessary to the performance of his obligations as
a director and his duty to cooperate under paragraph 13 of this Agreement.

                  16.     Full Compensation. Rogers and the Company understand and agree that
the payments made and other consideration provided to such party under this
Agreement in excess of the benefits of the Continuing Provisions of the Amended
Employment Agreement will fully compensate such party for and extinguish any
and all of the potential claims Rogers and the Company are releasing in the
Rogers Release and the Company Release, including, but not limited to, claims
for attorneys’ fees and costs and any and all claims for any type of legal or
equitable relief.

                  17.     Withholding of Taxes, Etc. The Company shall withhold from payments
and benefits hereunder income and employment taxes and other amounts to the
extent required by law. If there is any dispute over the taxation of any such
payment or benefit, the Company and Rogers will cause their respective tax
advisors to cooperate in an effort to resolve such dispute.

                  18.     No Admission of Wrongdoing. Rogers and the Company understand that
this Agreement does not constitute an admission by either of them that he or it
has violated any local ordinance, state or federal statute, or principle of
common law, that either has engaged in any unlawful or improper conduct toward
the other, or that either has treated the other unfairly. Neither will
characterize this Agreement or the payment of any money or furnishing of other

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consideration in accordance with this Agreement as an admission that either
party has engaged in any unlawful or improper conduct toward the other or
treated the other unfairly.

                  19.     Authority. Rogers represents and warrants that he has the authority
to enter into this Agreement and the Rogers Release, and that no causes of
action, claims, or demands released pursuant to this Agreement and the Rogers
Release have been assigned by Rogers to any person or entity not a party to this Agreement and the Rogers Release. The Company
represents and warrants that it has the authority to enter into this Agreement,
and that no causes of action, claims, or demands released pursuant to this
Agreement and the Company Release have been assigned by the Company to any
person or entity not a party to this Agreement and the Company Release.

                  20.     Representation. Rogers hereby acknowledges that he has been advised
by the Company to consult with his own attorney before executing this Agreement
and the Rogers Release. The parties each acknowledge that they have had the
opportunity to be represented by their own counsel in this matter, that each
has had a full opportunity to consider this Agreement and the attachments, that
each has had a full opportunity to ask any questions that they may have
concerning this Agreement, the Rogers Release, the Company Release, or the
settlement of potential claims against the other, and that neither has relied
upon any statements or representations made by the other or their respective
attorneys, written or oral, other than the statements and representations that
are explicitly set forth in this Agreement, the Rogers Release, the Company
Release, and any other employee benefit plans or programs sponsored by the
Company in which Rogers is a participant.

                  21.     Successors
and Assigns.This Agreement will be binding upon and inure
to the benefit of the parties and their respective heirs, administrators,
representatives, successors,

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and assigns, including, but not limited to, a
purchaser of substantially all the business or assets of the Company, but will
not be assignable by either party (except by the Company to a purchaser of
substantially all the business or assets of the Company) without the prior
written consent of the other party. No assignment by either party will relieve
the assigning party of any of his or its obligations under this Agreement.

                  22.     Invalidity.
In the event that any provision of this Agreement other
than paragraph 2 of this Agreement, the Rogers Release, or the Company Release
is determined by an arbitrator or a court of competent jurisdiction to be
invalid, illegal, or unenforceable in any respect, such a determination will
not affect the validity, legality, or enforceability of the remaining
provisions of this Agreement, the Rogers Release, or the Company Release, and
the remaining provisions of this Agreement, the Rogers Release, and the Company
Release will continue to be valid and enforceable, and any arbitrator or court
of competent jurisdiction may modify the objectionable provision so as to make
it valid and enforceable.

                  23.     Entire
Agreement. Before signing this Agreement, the Rogers Release,
and the Company Release, the parties engaged in discussions and generated
certain documents, in which the parties considered the matters that are the
subject of this Agreement, the Rogers Release, and the Company Release. In
such discussions and documents, the parties may have expressed their judgments
and beliefs concerning the intentions, capabilities, and practices of the
parties, and may have forecast future events. The parties recognize, however,
that all business transactions, including the transactions upon which the
parties’ judgments, beliefs, and forecasts are based, contain an element of
risk, and that it is normal business practice to limit the legal obligations of
contracting parties only to those promises and representations that are
essential to the transaction so as to provide certainty as to their respective
future rights and remedies.

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Accordingly, this Agreement, the Rogers Release,
the Company Release, the Option Agreements (as amended), the Restricted Stock
Agreements, the Continued Provisions of the Amended Employment Agreement, and
any employee benefit plans or programs sponsored by the Company in which Rogers
is a participant are intended to define the full extent of the legally
enforceable contractual undertakings of the parties, and no promises or
representations, written or oral, that are not set forth explicitly in this Agreement, the Rogers Release, the Company
Release, the Option Agreements (as amended), the Restricted Stock Agreements,
the Continued Provisions of the Amended Employment Agreement, or any employee
benefit plans or programs sponsored by the Company in which Rogers is a
participant are intended by either party to be legally binding, and all other
agreements and understandings between the parties are hereby superseded,
including but not limited to provisions of the Amended Employment Agreement
other than the Continuing Provisions.

                  24.     Arbitration.
Except for the Company’s claims to injunctive relief as
provided in paragraph 6 above, and as further limited below, if any dispute
arises between the parties with respect to the application, interpretation or
termination of this Agreement, then such dispute shall be submitted to
arbitration for resolution. The arbitrator shall be selected and the
arbitration shall be conducted pursuant to the Employment Dispute Resolution
Rules of the American Arbitration Association (“AAA”) (effective January 1,
1993). All fees and expenses of the arbitrator will be shared equally by
Rogers and the Company. Any request for arbitration must be made in writing by
the party seeking arbitration and must be delivered by hand or sent by
registered or certified mail, return receipt requested, postage prepaid, to
both the other party and the AAA. The decision of the arbitrator regarding any
such dispute shall be final and binding on both parties, and any court of the
competent jurisdiction may enter judgment upon the award.

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Notwithstanding
anything to the contrary in this paragraph 24, and without prejudice to the
above procedures, either party may apply to any court of competent jurisdiction
for temporary injunctive relief or other provisional judicial relief if in such
party’s sole judgment such action is necessary to avoid irreparable damage or
to preserve the status quo until such time as the arbitration award is rendered
or the controversy is otherwise resolved.

                  25.     Headings.
The descriptive headings of the paragraphs and
subparagraphs of this Agreement are inserted for convenience only and do not
constitute a part of this Agreement.

                  26.     Counterparts.
 This Agreement may be executed simultaneously in two or
more counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same instrument.

                  27.     Governing
Law. This Agreement, the Rogers Release, the Company
Release, and the other exhibits to this Agreement will be interpreted and
construed in accordance with, and any dispute or controversy arising from any
breach or asserted breach of this Agreement, the Rogers Release, the Company
Release, or the other exhibits to this Agreement will be governed by, the laws
of the State of Minnesota.

     IN WITNESS WHEREOF, the parties have executed this Agreement on the date
stated above.

	 	 	 	 	 
	 	 	 	 
	 	/s/ David L. Rogers	 	 
	 	David L. Rogers 	 	 
	 	 	 	 
	 
	 	WILSONS THE LEATHER EXPERTS, INC.	 
	 	BY  	 /s/ Michael Cowhig	 
	 	 	Michael Cowhig 	 
	 	 	Its Chairman, Compensation Committee 	 
	 

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EXHIBIT A

RELEASE BY DAVID L. ROGERS

Definitions.  I intend all words used in this Release to have their plain
meanings in ordinary English. Specific terms that I use in this Release have
the following meanings:

	 	A.	 	I, me, and my include both me and anyone who has or obtains
any legal rights or claims through me.
	 
	 	B.	 	Wilsons means Wilsons The Leather Experts, Inc., any company
related to Wilsons The Leather Experts, Inc. in the present or past
(including without limitation its predecessors, parents,
subsidiaries, affiliates, and joint venture partners), and any
successors of Wilsons The Leather Experts, Inc.
	 
	 	C.	 	Company means Wilsons; the present and past officers,
directors, committees, and employees of Wilsons; any company
providing insurance to Wilsons in the present or past; the present
and past fiduciaries of any employee benefit plan sponsored or
maintained by Wilsons (other than multiemployer plans); the
attorneys for Wilsons; and anyone who acted on behalf of Wilsons or
on instructions from Wilsons.
	 
	 	D.	 	Agreement means the Agreement between Wilsons and me that I
executed on July    , 2004, including all of the documents attached
to the Agreement.
	 
	 	E.	 	My Claims mean all of my rights that I now have to any relief
of any kind from the Company, whether or not I now know about those
rights, including without limitation:

	 	1.	 	all claims arising out of or relating to my
employment with Wilsons or the termination of that employment;
	 
	 	2.	 	all claims arising out of or relating to the
statements, actions, or omissions of the Company;
	 
	 	3.	 	all claims for any alleged unlawful
discrimination, harassment, retaliation or reprisal, or other
alleged unlawful practices arising under any federal, state,
or local statute, ordinance, or regulation, including without
limitation, claims under Title VII of the Civil Rights Act of
1964, the Age Discrimination in Employment Act, the Americans
with Disabilities Act, 42 U.S.C. § 1981, the Employee
Retirement Income Security Act, the Equal Pay Act, the Worker
Adjustment and Retraining Notification Act, the Minnesota
Human Rights Act, the Fair Credit Reporting Act, and workers’
compensation non-interference or non-retaliation statutes
(such as Minn. Stat. § 176.82);
	 
	 	4.	 	all claims for alleged wrongful discharge; breach
of contract; breach of implied contract; failure to keep any
promise; breach of a covenant of good faith and fair dealing;
breach of fiduciary duty; estoppel; my activities, if any,

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	 	 	 	as a “whistleblower”; defamation; infliction of emotional
distress; fraud;
misrepresentation; negligence; harassment; retaliation or
reprisal; constructive discharge; assault; battery; false
imprisonment; invasion of privacy; interference with
contractual or business relationships; any other wrongful
employment practices; and violation of any other principle of
common law;
	 
	 	5.	 	all claims for compensation of any kind,
including without limitation, bonuses, commissions,
stock-based compensation or stock options, vacation pay, and
expense reimbursements;
	 
	 	6.	 	all claims for back pay, front pay,
reinstatement, other equitable relief, compensatory damages,
damages for alleged personal injury, liquidated damages, and
punitive damages; and
	 
	 	7.	 	all claims for attorneys’ fees, costs, and
interest.

However, My Claims do not include any claims that the law does not
allow to be waived, any claims that may arise after the date on
which I sign this Release, any claims for breach of the Agreement
(including specifically, without limitation, breach of any
obligation in paragraph 2 of the Agreement and the Continuing
Provisions of the Amended Employment Agreement (as such terms are
defined in the Agreement)), or any claims arising in connection
with my service as a director of Wilsons.

Agreement to Release My
Claims. I will receive consideration from Wilsons as
set forth in the Agreement other than the consideration in paragraph 2 of the
Agreement if I sign and do not rescind this Release as provided below. I
understand and acknowledge that that consideration is in addition to anything
of value that I would be entitled to receive from Wilsons if I did not sign
this Release or if I rescinded this Release. In exchange for that
consideration I give up and release all of My Claims. I will not make any
demands or claims against the Company for compensation or damages relating to
My Claims. The consideration that I am receiving is a fair compromise for the
release of My Claims.

Additional Agreements
and Understandings. Even though Wilsons will provide
consideration for me to settle and release My Claims, the Company does not
admit that it is responsible or legally obligated to me. In fact, the Company
denies that it is responsible or legally obligated to me for My Claims, denies
that it engaged in any unlawful or improper conduct toward me, and denies that
it treated me unfairly.

Confidentiality.
I understand that the terms of this Release are confidential
and that I may not disclose those terms to any person except under the
circumstances described in the Agreement.

Advice to Consult with
an Attorney. I understand and acknowledge that I am
hereby being advised by the Company to consult with an attorney prior to
signing this Release and I have done so. My decision whether to sign this
Release is my own voluntary decision made with full knowledge that the Company
has advised me to consult with an attorney.

A-2

 

CONFIDENTIAL

Period to Consider the
Release. I understand that I have 21 days from the
Separation Time (as defined in the Agreement), not counting the day of the
Separation Time, to consider whether I wish to sign this Release. If I sign
this Release before the end of the 21-day period, it will be my voluntary
decision to do so because I have decided that I do not need any additional time
to decide whether to sign this Release.
However, I understand that, pursuant to the Agreement, I may not sign this
Release before my last day of employment with the Company.

My Right to Rescind
this Release. I understand that I may rescind this Release
at any time within 15 days after I sign it, not counting the day upon which I
sign it. This Release will not become effective or enforceable unless and
until the 15-day rescission period has expired without my rescinding it.

Procedure for Accepting or Rescinding the Release.To accept the terms of this
Release, I must deliver the Release, after I have signed and dated it, to
Wilsons by hand or by mail within the 21-day period that I have to consider
this Release. To rescind my acceptance, I must deliver a written, signed
statement that I rescind my acceptance to Wilsons by hand or by mail within the
15-day rescission period. All deliveries must be made to Wilsons at the
following address:

Chief Executive Officer

Wilsons The Leather Experts, Inc.

7401 Boone Avenue North

Brooklyn Park, Minnesota 55428

If I choose to deliver my acceptance or the rescission of my acceptance by
mail, it must be postmarked within the period stated above and properly
addressed to Wilsons at the address stated above.

Interpretation of the
Release.  This Release should be interpreted as broadly
as possible to achieve my intention to resolve all of My Claims against the
Company. If this Release is held by a court to be inadequate to release a
particular claim encompassed within My Claims, this Release will remain in full
force and effect with respect to all the rest of My Claims.

My Representations.
 I am legally able and entitled to receive the
consideration being provided to me in settlement of My Claims. I have not
been involved in any personal bankruptcy or other insolvency proceedings at any
time since I began my employment with Wilsons. No child support orders,
garnishment orders, or other orders requiring that money owed to me by Wilsons
be paid to any other person are now in effect.

I have read this Release carefully. I understand all of its terms. In signing
this Release, I have not relied on any statements or explanations made by the
Company except as specifically set forth in the Agreement and the Release
signed by Wilsons. I am voluntarily releasing My Claims against the Company.
I intend this Release to be legally binding.

	 	 	 	 	 
	Dated:
	 	 	 	 
	

	 	
 
	 	
 
	

	 	 	 	David L. Rogers

A-3

 

CONFIDENTIAL

EXHIBIT B

RELEASE BY WILSONS THE LEATHER EXPERTS, INC.

Definitions. All words used in this Release have their plain meanings in
ordinary English. Specific terms used in this Release have the following
meanings:

	 	A.	 	Wilsons means Wilsons The Leather Experts, Inc.,
any company related to Wilsons The Leather Experts, Inc. in
the present or past (including without limitation, its
predecessors, parents, subsidiaries, affiliates, and joint
venture partners), and any successors of Wilsons The Leather
Experts, Inc.
	 
	 	B.	 	Rogers means David L. Rogers and anyone who has
or obtains any legal rights or claims through David L. Rogers.
	 
	 	C.	 	Agreement means the Agreement between Wilsons and
Rogers that Wilsons executed on July    , 2004, including all
of the documents attached to the Agreement.
	 
	 	D.	 	Wilsons’ Claims mean all of Wilsons’ rights that
Wilsons has to any relief of any kind from Rogers, whether or
not Wilsons now knows about those rights, including without
limitation:

	 	1.	 	all claims arising out of or that
relate to Rogers’ employment with Wilsons or the
termination of that employment;
	 
	 	2.	 	all claims arising out of or that
relate to the statements, actions, or omissions of
Rogers;
	 
	 	3.	 	all claims for breach of contract;
breach of implied contract; failure to keep any promise;
breach of a covenant of good faith and fair dealing;
breach of fiduciary duty; estoppel; defamation;
misrepresentation; negligence; interference with
contractual or business relationship; violation of any
other principle of common law; or breach of any other
contract or agreement of any kind between Rogers and
Wilsons;
	 
	 	4.	 	all claims Wilsons could have made in
response to any claims that Rogers could have asserted
against Wilsons; and
	 
	 	5.	 	all claims for damages of any kind,
attorneys’ fees, costs, disbursements, and interest.

However, Wilsons Claims do not include any claims that the
law does not allow to be waived, any claims that may arise
after the date on which

B-1

 

CONFIDENTIAL

Wilsons signs this Release, any
claims for breach of the Agreement (including specifically,
without limitation, breach of any obligation in paragraph 2
of the Agreement and the Continuing Provisions of the Amended
Employment Agreement (as such terms are defined in the
Agreement)), any claims arising in connection with Rogers’
service as a director of Wilsons, or any claims arising from
intentional actionable conduct by Rogers (provided that
Wilsons first gives Rogers written notice of and at least ten
(10) calendar days to respond to any allegation that Rogers
engaged in such intentional actionable conduct).

Agreement to Release
Wilsons’ Claims.  Wilsons will receive consideration from
Rogers as set forth in the Agreement other than the consideration in paragraph
2 of the Agreement if Rogers does not rescind the Release signed by him.
Wilsons understands and acknowledges that that consideration is in addition to
anything of value that it would be entitled to receive from Rogers if it did
not sign this Release. In exchange for that consideration Wilsons gives up all
of Wilsons’ Claims. Wilsons will not bring any lawsuits or make any other
demands against Rogers for compensation of damages relating to Wilsons’ Claims.
The consideration that Wilsons is receiving is a fair compromise for the
release of Wilsons’ Claims.

Additional Agreements
and Understandings.  Even though Rogers will provide
consideration for Wilsons to settle and release Wilsons’ Claims, Rogers does
not admit that he is responsible or legally obligated to Wilsons. In fact,
Rogers denies that he is responsible or legally obligated to Wilsons for
Wilsons’ Claims or that he engaged in any unlawful or improper conduct toward
Wilsons.

Confidentiality.
Wilsons understands that the terms of this Release are
confidential and that Wilsons may not disclose those terms to any person except
under the circumstances described in the Agreement.

Rogers’ Right to
Rescind the Release Executed by Him. This Release will not
become effective or enforceable unless and until Rogers signs the Rogers
Release as provided under the Agreement and until the rescission period set
forth in the Rogers Release has expired and Rogers has not rescinded the Rogers
Release signed by him.

Interpretation of the
Release. This Release should be interpreted as broadly
as possible to achieve Wilsons’ intention to resolve all of Wilson’s Claims
against Rogers. If this Release is held by a court to be inadequate to release
a particular claim encompassed within Wilsons’ Claims, this Release will remain
in full force and effect with respect to all the rest of Wilsons’ Claims.

Wilsons’
Representations. Wilsons through its undersigned officer has read
this Release carefully and understands all of its terms. Wilsons has had the
opportunity to consult with its own attorney prior to signing this Release. In
signing this Release, Wilsons has not relied on any statements or explanations
made by Rogers except as specifically set forth in the Agreement and the
Release signed by Rogers. Wilsons is voluntarily releasing Wilsons’ Claims
against Rogers.

B-2

 

CONFIDENTIAL

The undersigned officer of Wilsons has the authority to legally bind Wilsons by
the agreements that Wilsons is making in this Release and represents that there
is nothing to prevent Wilsons from being legally bound by the agreements that
Wilsons is making in this Release. Wilsons intends this Release to be legally
binding.

	 	 	 	 	 	 
	Dated:
	 	 	WILSONS THE LEATHER EXPERTS, INC.
	
	
 	 	 	 	 
	
	 	 	By:	 	 
	

	 	 	 	 	
 
	

	 	 	Its:	 	 
	

	 	 	 	 	
 

B-3

 

CONFIDENTIAL

EXHIBIT C

August    , 2004

Chief Executive Officer

Wilsons The Leather Experts, Inc.

7401 Boone Avenue North

Brooklyn Park, MN 55428

Dear Sir:

     This is to confirm that I have not rescinded and will not take action to
rescind the Release I signed on [DATE] and is attached as Exhibit A to the
[DATE] Agreement between me and Wilsons The Leather Experts, Inc.

Very truly yours,

David L. Rogers

C-1

 

CONFIDENTIAL

EXHIBIT D

FIRST AMENDMENT TO STOCK OPTION AGREEMENTS

                  THIS FIRST AMENDMENT TO STOCK OPTION AGREEMENTS (this “Amendment”) is
entered into as of this    day of
   , 2004, by and between
David L. Rogers (the “Optionee”), and Wilsons The Leather Experts Inc., a
Minnesota corporation (the “Company”).

                  WHEREAS, the Company and the Optionee entered into the Non-Statutory Stock
Option Agreements specified below, effective as of the dates specified below
(each an “Option Agreement”), under the Wilsons The Leather Experts Inc. 2000
Long Term Incentive Plan, as amended (the “2000 Plan”):

	 	 	 	 	 	 	 	 	 
	Date of Agreement
	 	Shares Exercisable
	 	Price

	August 24, 2000
	 	 	21,000	 	 	$	20.6875	 
	March 29, 2001
	 	 	27,000	 	 	$	18.9375	 
	September 20, 2001
	 	 	150,000	 	 	$	11.20    	 
	June 25, 2002
	 	 	99,000	 	 	$	13.71    	 
	March 19, 2003
	 	 	66,000	 	 	$	4.00    	 

                  WHEREAS, pursuant to Section 6(f) of the 2000 Plan, the Compensation
Committee of the Company may extend the period of time that the Options granted
pursuant to the Option Agreements may be extended following the Optionee’s
termination of employment.

                  WHEREAS, the Optionee and the Company have entered into an Agreement dated
July    , 2004 (the “July Agreement”), approved by the Compensation Committee of
the Company, which provides, among other things, that the Optionee and the
Company shall amend the Option Agreements to extend the period of time that the
Options granted pursuant to the Option Agreements may be exercised following
the Optionee’s termination of employment.

                  NOW, THEREFORE, in consideration of the parties’ undertakings and
covenants contained in the July Agreement and other good and valuable
consideration (the receipt and sufficiency of which are hereby acknowledged by
each party), the parties hereby agree as follows:

                  1.     Unless otherwise defined herein, each capitalized term used herein
shall have the meaning provided therefor in the applicable Option Agreement.

                  2.     Section 7(a) of each Option Agreement is hereby amended and restated in
its entirety as follows:
“(a) Subject to Section 7(b), this Option may be exercised by the Optionee
or, in the event of the Optionee’s death or Disability, by his legal
representative until August 2, 2006.”

                  3.     Section 7(b) of each Option Agreement is hereby deleted and Section
7(c) of each Option Agreement is hereby renumbered Section 7(b).

                  4.     Except as amended by the foregoing, each Option Agreement and each
provision thereof shall remain in full force and effect.

D-1

 

CONFIDENTIAL

                  IN WITNESS WHEREOF, the parties have executed this Amendment, effective on
the date first above written.

WILSONS THE LEATHER EXPERTS INC.

	 	 	 	 	 
	By:
	 	 	 	 
	

	 	
 
	 	
 
	  Its:

	 	 	 	Optionee
	

	 	
 	 	 

D-2

 

CONFIDENTIAL

FIRST AMENDMENT TO STOCK OPTION AGREEMENT

                  THIS FIRST AMENDMENT TO STOCK OPTION AGREEMENT (this “Amendment”) is
entered into as of this
        day of
        , 2004, by and between
David L. Rogers (the “Optionee”), and Wilsons The Leather Experts Inc., a
Minnesota corporation (the “Company”).

                  WHEREAS, the Company and the Optionee entered into the Non-Statutory Stock
Option Agreement specified below, effective as of the date specified below (the
“Option Agreement”), under the Wilsons The Leather Experts Inc. 1996 Stock
Option Plan, as amended (the “1996 Plan”):

	 	 	 	 	 	 	 	 	 
	Date of Agreement
	 	Shares Exercisable
	 	Price

	January 28, 1998
	 	 	148,500	 	 	$	5.8333	 

                  WHEREAS, pursuant to Section 5(d)(ii) of the 1996 Plan, the Compensation
Committee of the Company may extend the period of time that the Options granted
pursuant to the Option Agreement may be extended following the Optionee’s
termination of employment.

                  WHEREAS, the Optionee and the Company have entered into an Agreement dated
July    , 2004 (the “July Agreement”), approved by the Compensation Committee of
the Company, which provides, among other things, that the Optionee and the
Company shall amend the Option Agreement to extend the period of time that the
Options granted pursuant to the Option Agreement may be exercised following the
Optionee’s termination of employment.

                  NOW, THEREFORE, in consideration of the parties’ undertakings and
covenants contained in the July Agreement and other good and valuable
consideration (the receipt and sufficiency of which are hereby acknowledged by
each party), the parties hereby agree as follows:

                  1.     Unless otherwise defined herein, each capitalized term used herein
shall have the meaning provided therefor in the Option Agreement.

                  2.     Section 7(a) of the Option Agreement is hereby amended and restated in
its entirety as follows:

                          "(a)     Subject to Section 7(b), this Option may be exercised by the Optionee
or, in the event of the Optionee’s death or Disability, by his legal
representative until August 2, 2006.”

                  3.     Section 7(b) of the Option Agreement is hereby deleted and Section 7(c)
of the Option Agreement is hereby renumbered Section 7(b).

 
                  4.     Except as amended by the foregoing, the Option Agreement and each
provision thereof shall remain in full force and effect.

D-3

 

CONFIDENTIAL

                  IN WITNESS WHEREOF, the parties have executed this Amendment, effective on
the date first above written.

WILSONS THE LEATHER EXPERTS INC.

	 	 	 	 	 
	By:
	 	 	 	 
	

	 	
 
	 	
 
	  Its:

	 	 	 	Optionee
	

	 	
 	 	 

D-4exv10w4

 

EXHIBIT 10.4

WILSONS THE LEATHER EXPERTS INC.

1996 STOCK OPTION PLAN

Non-Statutory Stock Option Agreement

(Director)

	Full Name of Optionee:

	No. of Shares Covered:

	Date of Grant:
 
	
Exercise Price Per Share:      $

This is a Non-Statutory Stock Option Agreement (“Agreement”) between Wilsons
The Leather Experts Inc., a Minnesota corporation (the “Company”), and the
optionee identified above (the “Optionee”) effective as of the date of grant
specified above.

Recitals

WHEREAS, the Company maintains the Wilsons The Leather Experts Inc.
1996 Stock Option Plan (“Plan”); and

WHEREAS, pursuant to the Plan, a committee (the “Committee”), which
shall be the Board of Directors if no separate committee has been
appointed by the Board of Directors, has the authority to determine
the awards to be granted under the Plan; and

WHEREAS, the Committee has determined that the Optionee is eligible
to receive an award under the Plan in the form of a non-statutory
stock option (the “Option”).

NOW, THEREFORE, the Company hereby grants this Option to the
Optionee under the terms and conditions as follows.

Terms and Conditions*

	1.	 	Grant. The Optionee is granted this Option to purchase the number
of Shares specified at the beginning of this Agreement.
	 
	2.	 	Exercise Price. The price of each Share subject to this Option
shall be the exercise price specified at the beginning of this Agreement.

	*     Unless the context indicates otherwise, terms that are not defined in this
Agreement shall have the meaning set forth in the Plan as it currently exists
or as it is amended in the future.

 

 

	3.	 	Non-Statutory Stock Option. This Option is not intended to
be an “incentive stock option” within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”).
	 
	4.	 	Exercise Schedule. This Option shall vest, cumulatively, as to
one-third of the Shares covered hereby, on each of the first, second and
third anniversaries of the date of grant of this Option. If this Option
has not expired prior thereto, it may be exercised in whole or in part
with respect to any Shares as to which this Option has vested.
	 
	 	 	This Option may be exercised in full under the circumstances described in
Section 8 of this Agreement if it has not expired prior thereto.
	 
	5.	 	Expiration. This Option shall expire at 5:00 p.m. Central Time on
the earliest of:

	 	(a)	 	The date occurring ten years after the date of grant of this
Option;
	 
	 	(b)	 	The last day of the period following the termination of
employment of the Optionee during which this Option can be exercised
(as specified in Section 7 of this Agreement); or
	 
	 	(c)	 	The date (if any) fixed for cancellation pursuant to Section
8 of this Agreement.

	 	 	In no event may anyone exercise this Option, in whole or in part, after
it has expired, notwithstanding any other provision of this Agreement.

	6.	 	Procedure to Exercise Option.
	 
	 	 	Notice of Exercise. This Option may be exercised by delivering written
notice of exercise to the Company at the principal executive office of
the Company, to the attention of the Company’s Vice President, Human
Resources, in the form attached to this Agreement. The notice shall
state the number of Shares to be purchased, and shall be signed by the
person exercising this Option. If the person exercising this Option is
not the Optionee, he/she also must submit appropriate proof of his/her
right to exercise this Option.
	 
	 	 	Tender of Payment. Upon giving notice of any exercise hereunder, the
person exercising this Option shall provide for payment of the purchase
price of the Shares being purchased through one or a combination of the
following methods:

	 	(a)	 	Cash;
	 
	 	(b)	 	To the extent permitted by law, a broker-assisted cashless
exercise in which the person exercising this Option irrevocably
instructs a broker to deliver proceeds of a sale of all or a portion
of the Shares to be issued pursuant to the exercise (or a loan
secured by such Shares) to the Company in payment of the purchase
price of such Shares;

 

 

	 	(c)	 	By delivery to the Company of unencumbered Shares having an
aggregate Fair Market Value (as defined in paragraph 7 of the Plan)
on the date of exercise equal to the purchase price of such Shares;
or
	 
	 	(d)	 	By a reduction in the number of Shares delivered to the
person exercising this Option upon exercise, such number of Shares
having an aggregate Fair Market Value on the date of exercise equal
to the purchase price of such Shares.

	 	 	Notwithstanding the foregoing, the person exercising this Option shall
not be permitted to pay any portion of the purchase price with Shares if,
in the opinion of the Committee, payment in such manner could have
adverse financial accounting consequences for the Company.
	 
	 	 	Delivery of Certificates. As soon as practicable after the Company
receives the notice and purchase price provided for above, it shall
deliver to the person exercising the Option, in the name of such person,
a certificate or certificates representing the Shares being purchased.
The Company shall pay any original issue or transfer taxes with respect
to the issue or transfer of the Shares and all fees and expenses incurred
by it in connection therewith. All Shares so issued shall be fully paid
and nonassessable. Notwithstanding anything to the contrary in this
Agreement, the Company shall not be required to issue or deliver any
Shares prior to the completion of such registration or other
qualification of such Shares under any state or federal law, rule or
regulation as the Company shall determine to be necessary or desirable.
	 
	7.	 	Employment Requirement. This Option may be exercised only while
the Optionee remains employed with the Company or a parent or subsidiary
thereof, and only if the Optionee has been continuously so employed since
the date of this Agreement (it being understood that solely for purposes
of the Plan and this Agreement, as provided in paragraph 4 of the Plan,
service as a director of the Company constitutes employment with the
Company for purposes hereof); provided that:

	 	(a)	 	This Option may be exercised for three months (or such later
date, if any, as the Committee, in its sole discretion, may
determine) following the day the Optionee’s employment by the
Company ceases if such cessation of employment is for a reason other
than death or disability, but only to the extent that it was
exercisable immediately prior to termination of employment.
	 
	 	(b)	 	This Option may be exercised within one year after the
Optionee’s employment by the Company ceases if such cessation of
employment is because of death or disability.
	 
	 	(c)	 	If the Optionee’s employment terminates after a declaration
made pursuant to Section 8 of this Agreement in connection with an
Event, this Option may be exercised at any time permitted by such
declaration.

	 	 	Notwithstanding the above, this Option may not be exercised after it has
expired.

 

 

	8.	 	Acceleration of Option.
	 
	 	 	Death or Disability. This Option may be exercised in full, regardless of
whether such exercise occurs prior to a date on which this Option would
otherwise vest, upon the death or disability of the Optionee; provided
that the Optionee shall have been continuously employed by the Company or
a parent or subsidiary thereof between the date of this Agreement and the
date of such death or disability.
	 
	 	 	Change in Control. In the event of a Change in Control as defined in
paragraph 11 of the Plan, then, without any action by the Committee, this
Option, to the extent not already exercised in full or otherwise expired,
shall become immediately exercisable in full and the Committee may, as
provided in paragraph 11(c) of the Plan, make certain cash payments with
respect to this Option.
	 
	 	 	Event. In the event of an Event as defined in paragraph 12 of the Plan,
the Committee may, but shall not be obligated to:

	 	(a)	 	if the Event is a merger or consolidation or statutory share
exchange, make appropriate provision for the protection of this
Option by the substitution for this Option of options or voting
common stock of the corporation surviving any merger or
consolidation or, if appropriate, the parent corporation of the
Company or such surviving corporation, as provided in paragraph 12
of the Plan; or
	 
	 	(b)	 	at least 20 days prior to the occurrence of the Event,
declare, and provide written notice to Optionee of the declaration,
that this Option, whether or not then exercisable, shall be canceled
at the time of, or immediately prior to the occurrence of the Event
(unless it shall have been exercised prior to the occurrence of the
Event). In connection with any such declaration, the Committee may,
but shall not be obligated to, cause payment to be made to the
holder of this Option of cash equal to, for each Share covered by
the canceled Option, the amount, if any, by which the Event Proceeds
per Share, as defined in paragraph 12 of the Plan, exceeds the
exercise price per Share covered by this Option. At the time of any
such declaration, this Option shall immediately become exercisable
in full and the holder of this Option shall have the right, during
the period preceding the time of cancellation of the Option, to
exercise this Option as to all or any part of the Shares covered by
this Option. In the event of a declaration pursuant to this
subsection, to the extent this Option has not been exercised prior
to the Event, the unexercised part of this Option shall be canceled
at the time of, or immediately prior to, the Event, as provided in
the declaration. Notwithstanding the foregoing, the holder of this
Option shall not be entitled to the payment provided for in this
subsection if this Option shall have expired pursuant to Section 5
above.

	 	 	Discretionary Acceleration. The Committee has the power, in its sole
discretion, to declare at any time that this Option shall be immediately
exercisable.
	 
	9.	 	Limitation on Transfer. While the Optionee is alive, only the
Optionee or his/her guardian or legal representative may exercise this
Option. This Option may not be assigned 

 

 

	 	 	or transferred other than by will
or the laws of descent and distribution or pursuant to a qualified
domestic relations order as defined by the Code or Title I of the Employee
Retirement Income Security Act, or the rules thereunder.

	10.	 	No Shareholder Rights Before Exercise. No person shall have any
of the rights of a shareholder of the Company with respect to any Share
subject to this Option until the Share actually is issued to him/her upon
exercise of this Option.
	 
	11.	 	Discretionary Adjustment. In the event of any reorganization,
merger, consolidation, recapitalization, liquidation, reclassification,
stock dividend, stock split, combination of shares, rights offering, or
extraordinary dividend or divestiture (including a spin-off), or any other
change in the corporate structure or Shares of the Company, the Committee
(or if the Company does not survive any such transaction, a comparable
committee of the Board of Directors of the surviving corporation) may,
without the consent of the holder of this Option, make such adjustment as
it determines in its discretion to be appropriate, as to the number and
kind of securities subject to and reserved under the Plan and, in order to
prevent dilution or enlargement of rights of the holder of this Option,
the number and kind of securities issuable upon exercise of this Option
and the exercise price hereof.
	 
	12.	 	Tax Withholding. Delivery of Shares upon exercise of this Option
shall be subject to any required withholding taxes. As a condition
precedent to receiving Shares upon exercise of this Option, the Optionee
may be required to pay to the Company, in accordance with the provisions
of paragraph 9 of the Plan, an amount equal to the amount of any required
withholdings.
	 
	13.	 	Interpretation of This Agreement. All decisions and
interpretations made by the Committee with regard to any question arising
hereunder or under the Plan shall be binding and conclusive upon the
Company and the holder of this Option. If there is any inconsistency
between the provisions of this Agreement and the Plan, the provisions of
the Plan shall govern.
	 
	14.	 	Discontinuance of Employment. This Agreement shall not give the
Optionee a right to continued employment with the Company or any parent or
subsidiary of the Company, and the Company or any such parent or
subsidiary employing the Optionee may terminate his/her employment and
otherwise deal with the Optionee without regard to the effect it may have
upon him/her under this Agreement.
	 
	15.	 	Option Subject to Plan, Articles of Incorporation and By-Laws.
The holder of this Option acknowledges that this Option and the exercise
thereof is subject to the Plan, the Articles of Incorporation, as amended
from time to time, and the By-Laws, as amended from time to time, of the
Company, and any applicable federal or state laws, rules or regulations.
	 
	16.	 	Obligation to Reserve Sufficient Shares. The Company shall at all
times during the term of this Option reserve and keep available a
sufficient number of Shares to satisfy this Agreement.

 

 

	17.	 	Binding Effect. This Agreement shall be binding in all respects
on the heirs, representatives, successors and assigns of the Optionee.
	 
	18.	 	Choice of Law. This Agreement is entered into under the laws of
the State of Minnesota and shall be construed and interpreted thereunder
(without regard to its conflict of law principles).

         IN WITNESS WHEREOF, the Optionee and the Company have executed this
Agreement as of         .

	 	 	 	 	 
	 	 	OPTIONEE
	 	 	 	 	 
	 
	 	 	 	 
	 	 	
 
	 
	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	WILSONS THE LEATHER EXPERTS INC.
	 
	 	 	 	 
	 	 	 	 	 
	

	 	By	 	 
	

	 	 	
 
	

	 	   Its Vice President, Human Resources

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]