Document:

exexperformanceshare.htm

EXHIBIT 10.1

MOVADO GROUP, INC.

EXECUTIVE PERFORMANCE SHARE PROGRAM

Performance Period

Fiscal 2010

Introduction

The Movado Group, Inc. Executive Performance Share Program (EPSP) is a performance share program that has been established by the Compensation Committee of the Board of Directors of Movado Group, Inc. (the “Committee”) pursuant to Section 9 of the Movado Group, Inc. 1996 Stock Incentive Plan (as amended and restated, the “Plan”).

Capitalized terms that are not defined below have the meaning given to them in the Plan.  Performance Share Units are equivalent, 1 for 1, to shares of Stock that vest based on the Company’s achievement of the specified Performance Goal and the continued service of the Plan Participant.

Objectives:

	
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Links compensation to the achievement of corporate goals

	
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Recognizes competitive practices in executive compensation

	
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Focuses key employees on the improvement of the Company’s operating profit

	
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Provides greater equity awards for achieving and exceeding goals

	
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Assists with the attraction and retention of key management personnel

Type of Award

Your Award is in the form of Performance Share Units as described under Section 9 of the Plan.

Performance Goal

The Performance Goal that will determine the number of shares of Stock, if any, you receive is the Company’s operating profit for the Award Period.  Operating profit is defined as earnings before interest and taxes, determined in accordance with GAAP as consistently applied
by the Company.  In addition to meeting the operating profit goal, cash flow from operations must be positive for the Award Period.

Award Period

The Award Period, which is the period of time within which performance is measured to determine whether an Award of Performance Share Units has been earned, is one year ending January 31, 2010.

Size of Individual Awards

Your target Award is expressed as a number of Performance Share Units.  The actual number of shares of Stock earned is based on actual performance at the end of the Award Period relative to the Performance Goal and can range from 0% to 120% of the target Award depending on the achievement of the operating profit goal.

Performance Standards

	
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The number of shares of Stock earned is determined using the following payout schedule for the Award Period ending January 31, 2010

	
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Payouts between performance levels will be based on straight line interpolation

Fiscal 2010 Performance:

Degree of Performance                    Operating                                %
of Shares

Attainment                                         Profit FY 10                                Earned

(% of Target Goal)

Maximum (120%)                             $23.8 million                                120%

Target (100%)                                   $19.8 million                                100%

Below Target                                                                                          
 0%

*Cash flow from operations must be positive

Earn Out and Vesting

	
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After the Award Period ends (January 31, 2010), if the Performance Goal is achieved, the shares of Stock represented by the Performance Share Units will be earned will become vested and be distributed on the third anniversary of the Award grant date (June 18, 2012).

	
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Participants must be employed by the Company (or one of its Affiliates) at the end of the Award Period in order to receive the shares of Stock. Shares of Stock earned at the completion of the Award Period are subject to forfeiture only in the event of the Participant’s voluntary resignation or termination of the Participant’s employment for
Cause. For purposes of this EPSP, the Participant’s employment shall be deemed to be terminated for “Cause” if the Participant is discharged (i)  on account of fraud, embezzlement or other unlawful or tortious conduct, whether or not involving or against the Company or any Affiliate,  (ii)  for violation of a written policy of the Company or any Affiliate, (iii) for serious and willful acts of misconduct detrimental to the business or reputation of the Company or
any Affiliate or (iv) for “Cause” or any like term as defined in any written employment contract with the Participant.

Vesting:  Retirement and Leave of Absence

	
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In the event of a Participant’s retirement, permanent disability (as determined by the Committee) or death occurring after the Award Period and before June 18, 2012, all unvested shares of Stock earned under this EPSP shall immediately vest.

	
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For purposes of the EPSP, “retirement” means a Participant’s voluntary resignation (i) at or after age 65, or (ii) before the age of 65 but after age 55 provided the Participant has been employed by the Company (or one of its Affiliates) for at least 10 years and further subject to the specific approval of the Committee (including any
limitations or conditions the Committee may, in its discretion, impose which are not inconsistent with the express terms of the Plan such as, without limitation, a covenant by the Participant not to compete with the Company).

	
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The Committee may in its discretion determine whether any leave of absence (including short-term or long-term disability or medical leave) shall constitute a termination of employment for purposes of the EPSP.

Vesting and

Distribution Schedule

Target Award:  2,000 Performance Share Units

Actual Performance   # of Shares        # of Shares of Stock Distributed

Level                                 Earned                    2nd
Anniversary

Maximum                          2,400                            2,400                      

Target                                2,000                          
2,000

Below Target                         0                               
0

Payout

	
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Awards will be paid in shares of Stock, net of required tax withholding.

Change in Control

	
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If there should be a Change in Control before the end of the Award Period, the Performance Share Units awarded will be immediately and automatically converted on a 1 for 1 basis to time-based Phantom Stock Units without pro-ration which will vest at the third anniversary of the Award grant date (June 18, 2012) and upon vesting, one share of Stock will
be distributed for each Phantom Share Unit not previously forfeited.

	
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If a Participant’s employment is terminated within 24 months after the Change in Control, the unvested Phantom Stock Units will become immediately vested.

Miscellaneous

The Committee reserves the right with or without notice, at any time and from time to time, in its sole and absolute discretion to (i) amend or modify in whole or in part any of the provisions of the EPSP in any respect whatsoever (ii) suspend or cancel the EPSP and (iii) make exceptions to any or all of the provisions of the EPSP on a case
by case basis.

	
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This EPSP shall be subject to all of the terms and provisions of the Plan, which are incorporated hereby and made a part hereof.  If there is any inconsistency between any of the provisions of the EPSP and the Plan, the provisions of the Plan shall govern.

	
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Neither the Plan nor the EPSP constitutes a contract of employment and the Company specifically reserves the right to terminate a participant’s employment at any time with or without Cause and with or without notice or assigning a reason.exeperfshareprgrmformofaward.htm

 

EXHIBIT 10.2

Form of Award Agreement

TO:

FROM:

DATE:                                July 20, 2009

SUBJECT:                      Executive Performance Share Program

We are pleased to announce the Executive Performance Share Program (EPSP).  Under this program you will earn a stock award if the Company meets or exceeds its operating profit goal for Fiscal ‘10.  This is a special program for our most senior managers in the Company and you have been selected since you can significantly
influence the attainment of our corporate goals.

You have been granted a target award of ______ performance share units under this program for the performance cycle which runs from February 1, 2009 through the end of the fiscal year or through January 31, 2010.  If we achieve our target operating profit for fiscal year 2010, you will be eligible to receive 35,000 shares of common
stock, representing 100% of your target award.  If we exceed that goal and reach operating profit of 120% of the target, you will be eligible to receive 42,000 shares representing 120% of your target award.  We will interpolate for share amounts between performance levels.

If the goal is met on January 31, 2010, you will receive the stock on the 3rd anniversary of the grant date or on June 18, 2012 provided you are employed with the Company (or one of its subsidiaries) on the date the stock is distributed.  Awards will be paid in shares of stock, net of required tax withholding.

Attached is a more detailed description of stock incentive plan.  Please keep in mind that the performance goals under this program are confidential.  If you have any questions, feel free to call me.sixthamendmentcoach.htm

EXHIBIT 10.4

AMENDMENT NUMBER 6

TO LICENSE AGREEMENT

This amendment dated as of November 15, 2008 (the “Sixth Amendment”)  further amends the License Agreement dated December 9, 1996, as amended by Amendments Number 1 through 5 thereto (referred to herein as “the Agreement”) by and between Coach, Inc. (“Licensor”)
and Movado Group, Inc. (“MGI”) and Swissam Products Limited (“SPL”) as licensees (collectively, “Licensee”).

WHEREAS, the parties desire to make certain additional changes to the Agreement as set forth below:

NOW THEREFORE in consideration of the mutual covenants and the premises set forth herein, the Agreement is hereby amended as follows:

1. Non-Licensor Channels.  Section 1.3 shall be amended and restated as follows:

	
1.3  
	
“Non-Licensor Channels” shall mean retail outlets and wholesale distributors not controlled by Licensor, including (without limitation) department stores, jewelry store chains, Licensee Special Accounts and Licensee-Affiliated Retailers.

2.          Licensee-Affiliated Retailers. The following language shall be added as Section 1.12 of the Agreement:

	
  
	
       1.12 “Licensee-Affiliated Retailer(s)” means any retail store(s) controlled by    Licensee.

	
  
	
3.          Licensor Approval. Section 8.4 shall be amended and restated as follows:

	
  
	
             8.4  Subject to Paragraph 8.6, Licensee, working closely with Licensor, shall be responsible for the world-wide manufacture and distribution of Licensed Products, provided, however, that Licensee shall not, without the prior written approval of Licensor, which approval shall not be unreasonably withheld or delayed, sell or distribute
Licensed Products to any Non-Licensor Channels (including, for the avoidance of doubt and without limitation, Licensee-Affiliated Retailers) that are not Authorized COACH Retailers. The parties acknowledge that from time to time Licensor may approach Licensee to discuss whether particular approved retail outlets and/or Authorized COACH Retailers should remain as approved outlets and/or Authorized COACH Retailers  

**  CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED FROM PAGE 2 AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”) PUSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED (“1934 ACT”)

	
  
	
4          Royalties.  Section 11.1 shall be amended and restated as follows:

	
11.1  
	
Licensee shall pay to Licensor a royalty based on Licensee’s sales of the Licensed Products to all Non-Licensor Channels.  The sales to which the royalty rates will be applied (except for sales to Non-Licensor Channels (non-US), wholesale distributors and Licensee-Affiliated Retailers (as defined below)) shall be based on Wholesale Price
as in effect in the United States when such sales are made, and no reduction of the royalty shall be allowed for discounts given off Wholesale Price.

	
(a)  
	
With respect to Licensee’s sales to Non-Licensor Channels (non-U.S.) and wholesale distributors, the sales to which the royalty rates will be applied shall be based on actual invoice price net of all taxes, duties, freight, insurance and credits for returns actually made, but no deduction shall be made for discounts for cash or prompt payment or
for uncollectable accounts.  In the case of sales to any wholesale distributor controlled by Licensee, “actual invoice price” in the previous sentence means the actual invoice price for such Licensed Products when first sold by any such wholesale distributor to any entity not controlled by Licensee.

 

	
(b)  
	
For Contract Years 2007 through 2015, the base royalty rate applied to Licensee’s sales shall be * .

	
  
	
(c)
	
Licensee shall be permitted to sell to Licensee-Affiliated Retailers on the following terms and conditions:

(i)  The base royalty applied to Licensee’s sales of the Licensed Products to Licensee-Affiliated Retailers shall be                    *                                   of
the Licensee-Affiliated Retailers’ actual retail sales price for such Licensed Products;

(ii)  No more than   *   of sales of Licensed Products at any full price Licensee-Affiliated Retailer location in any Contract Year shall consist of “retail close-out” products (defined for this purpose as Licensed Products sold  *  for
such Licensed Products).  In the event that any such Licensee-Affiliated Retailer location exceeds such maximum, then the royalty rate due and payable to Licensor by Licensee for such Licensed Products shall be equal to three (3) times the normal royalty rate for non-closeout products, which royalty amount shall be in lieu of all other royalties that would otherwise be due on such Licensed Products; and

(iii)  To the extent that Licensed Products delivered to Licensee-Affiliated Retailers are not sold in such stores and are subsequently delivered to another Non-Licensor Channel, then the royalty applied to

*CONFIDENTIAL PORTION OF THIS EXHIBIT OMITTED AND FILED SEPARATELY WITH THE SEC PURSUANT TO RULE 24b-2 OF THE 1934 ACT

such products shall be the royalty applicable to the Non-Licensor Channel through which they are ultimately sold.

5.         Section 11.5 shall be amended and restated as follows:

 

	
11.5  
	
Licensee shall make its royalty payments to Licensor on a quarterly basis, together with a statement setting forth the quarterly sales of the Licensed Products to Non-Licensor Channels and by Licensee-Affiliated Retailers, said payments and statements being due no later than thirty (30) days following the end of each Contract Year quarter. All royalty
payments shall be made in U.S. Dollars. Except as provided in paragraph 11.4, Licensee shall not pay royalties on its sale of Licensed Products to Licensor Channels.

6.         The first sentence of Section 13.2(b) shall be amended and restated as follows:

	
  
	
13.2(b) Within ninety (90) days following the end of each Contract Year of this Agreement, and within ninety (90) days after the termination of this Agreement, Licensee shall deliver to Licensor a statement signed by an authorized officer of Licensee reporting actual sales of the Licensed Products to Non-Licensor Channels and by Licensee-Affiliated Retailers (based on the applicable U.S. Wholesale Price, invoice
price or actual retail sales price pursuant to Section 11.1 herein), royalties due, royalties paid and advertising expenditures during the preceding Contract Year.

 

7.        Except as set forth in this Sixth Amendment, the Agreement shall remain in full  force and effect.

	
  
	
8.        This Sixth Amendment may be signed by the parties duly executing counterpart originals.

IN WITNESS WHEREOF, the parties have caused this Sixth Amendment to be executed by their authorized officers and to become effective as of the date first above written.

COACH, INC.

	
By:
	
/s/ Todd Kahn

Name: Todd Kahn

Title: SVP & General Counsel

SWISSAM PRODUCTS LIMITED                                                                           MOVADO
GROUP, INC.

	
  
	
By:  /s/ Timothy F. Michno                                                By:  /s/
Timothy F. Michno

	
                Name: Timothy F. Michno
	
              Name: Timothy F. Michno

	
               Title: Director/ General Counsel
	
        Title: General Counsel

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