Document:

exv10w1

 

Exhibit 10.1

	 	 	 
	CONTACT:

	 	Julie Lorigan

Vice President, Investor Relations

(781) 741-7775
	 
	 	 
	 

	 	Margery B. Myers

Vice President,

Corporate Communications and Public Relations

(781) 741-4019
	 
	 	 
	 

	 	Stacy Berns/Melissa Jaffin — Investor/Media Relations

Berns Communications Group

(212) 994-4660

TALBOTS ANNOUNCES SECOND QUARTER 2006 SALES RESULTS

-Total Company Comparable Store Sales in Line with Expectations

-Talbots Brand Achieves Strong Sales Trends in June and July

-Company Reconfirms Outlook for Second Quarter

     Hingham, MA, August 3, 2006 — The Talbots, Inc. (NYSE: TLB) today announced total Company
sales for the thirteen weeks ended July 29, 2006 of $571.4 million. By brand, retail sales were
$403.7 million for Talbots compared to $388.8 million last
year, and $73.1 million for J. Jill,
which was acquired effective May 3, 2006. Sales for the J. Jill brand represent approximately 20%
of the total combined company sales volume.

     Total company comparable store sales rose 1.3% for the thirteen-week period. By brand,
comparable store sales for Talbots increased 3.0%. This was driven by particularly strong selling
throughout June and July, which grew a healthy 6.5% in comp sales for the combined two month
period. J. Jill’s comparable store sales declined 8.2% in the second quarter, below Company
expectations.

     Consolidated direct marketing sales for the thirteen-week period were $94.6 million, including
catalog and Internet. For the Talbots brand, direct marketing sales for the June and July combined
period were also quite strong, increasing low double digits, while the J. Jill direct business
continued to be difficult.

(continued)

 

 

2

Second Quarter Outlook

     The Company reconfirmed its previously announced outlook for second quarter loss per diluted
share to be in the range of ($0.10) — ($0.08) on a GAAP basis. This range of loss per share
includes acquisition related costs and adjustments of approximately $0.18 per share.

     Excluding the estimate for costs and adjustments, earnings per diluted share would be in the
range of positive $0.08 to $0.10 per share. Further, earnings per diluted share excluding
approximately $0.03 in stock option expense for the period would be in the range of positive $0.11
to $0.13 per share for the combined company, compared to $0.35 reported last year for the Talbots
only brand.

     The Company plans to release its second quarter 2006 operating results on Wednesday, August
16, 2006 and will provide additional details at that time.

     The Talbots, Inc. is a leading international specialty retailer and cataloger of women’s,
children’s and men’s apparel, shoes and accessories. The Company currently operates a total of
1,297 stores, in 47 states, the District of Columbia, Canada and the U.K., with 1,087 stores under
the Talbots brand name and 210 stores under the J. Jill brand name. Both brands target the age 35
plus customer population. Talbots brand on-line shopping site is located at www.talbots.com
and the J. Jill brand on-line shopping site is located at www.jjill.com.

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     The foregoing contains forward-looking information within the meaning of The Private
Securities Litigation Reform Act of 1995. These statements may be identified by such
forward-looking terminology as “expect,” “look,” “believe,” “anticipate,” “outlook,” “will,”
“would,” “would yield,” or similar statements or variations of such terms. All of the “outlook”
information (including future revenues, future comparable sales, future earnings, future EPS, and
other future financial performance or operating measures) constitutes forward-looking information.

(continued)

 

 

3

     Our outlook and other forward-looking statements are based on a series of expectations,
assumptions, estimates and projections about our Company which involve risks and uncertainty,
including assumptions and projections concerning store traffic, levels of store sales including
regular-price selling and markdown selling, and customer preferences. All of our outlook
information and other forward-looking statements are as of the date of this release only. The
Company can give no assurance that such outlook or expectations will prove to be correct and does
not undertake to update or revise any “outlook” information or any other forward-looking statements
to reflect actual results, changes in assumptions, estimates or projections, or other circumstances
occurring after the date of this release, even if such results, changes or circumstances make it
clear that any projected results will not be realized.

     Our forward-looking statements involve substantial known and unknown risks and uncertainties
as to future events which may or may not occur, including the risk that the J. Jill business will
not be successfully integrated, the risk that the cost savings and other synergies from the
transaction may not be fully realized or may take longer to realize than expected, the risk that
the acquisition will disrupt Talbots or J. Jill’s core business, transaction costs, the reaction of
Talbots and J. Jill customers and suppliers to the transaction, diversion of management time on
merger-related issues, effectiveness of the Company’s brand awareness and marketing programs, any
different or any increased negative trends in its regular-price or markdown selling, effectiveness
and profitability of new concept, effectiveness of its Internet site, success of our expected
marketing events in driving sales, success of our catalogs in driving both our direct marketing
sales and in driving store traffic, acceptance of the Company’s fashions including its 2006
seasonal fashions, the Company’s ability to anticipate and successfully respond to changing
customer tastes and preferences and to produce the appropriate balance of merchandise offerings,
the Company’s ability to sell its merchandise at regular prices as well as its ability to
successfully execute its major sale events including the timing and levels of markdowns and
appropriate balance of available markdown inventory, any difference between estimated and actual
stock option expense, retail economic conditions including consumer spending, consumer confidence,
impact on discretionary consumer spending of significantly higher gasoline and energy costs and
higher interest rates, and the impact of a continued promotional retail environment. In each case,
actual results may differ materially from such forward-looking information.

     Certain other factors that may cause actual results to differ from such forward-looking
statements are included in the Company’s periodic reports filed with the Securities and Exchange
Commission and available on the Talbots website under “Investor Relations” and you are urged to
carefully consider all such factors.

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###exv10w1

 

Exhibit 10.1

Form of

Nonstatutory Stock Option Agreement

Granted Under 2005 Stock Incentive Plan

1. Grant of Option.

     This agreement evidences the grant by Cynosure, Inc., a Delaware corporation (the “Company”),
on                     , 200___(the “Grant Date”) to                     , an                      of
the Company (the “Participant”), of an option to purchase, in whole or in part, on the terms
provided herein and in the Company’s 2005 Stock Incentive Plan (the “Plan”), a total of
                                shares (the “Shares”) of Class A Common Stock, par value $0.001 per share, of
the Company (“Class A Common Stock”) at $                    per Share. Unless earlier terminated,
this option shall expire at 5:00 p.m., Eastern time, on                      (the “Final Exercise
Date”).

     It is intended that the option evidenced by this agreement shall not be an incentive stock
option as defined in Section 422 of the Internal Revenue Code of 1986, as amended, and any
regulations promulgated thereunder (the “Code”). Except as otherwise indicated by the context, the
term “Participant”, as used in this option, shall be deemed to include any person who acquires the
right to exercise this option validly under its terms.

2. Vesting Schedule.

     This option will become exercisable (“vest”) as to 8.33% of the original number of Shares at
the end of each successive three month period following the Grant Date until the third 
anniversary of the Grant Date.

     The right of exercise shall be cumulative so that to the extent the option is not exercised in
any period to the maximum extent permissible it shall continue to be exercisable, in whole or in
part, with respect to all Shares for which it is vested until the earlier of the Final Exercise
Date or the termination of this option under Section 3 hereof or the Plan.

3. Exercise of Option.

     (a) Form of Exercise. Each election to exercise this option shall be in writing,
signed by the Participant, and received by the Company at its principal office, accompanied by this
agreement, and payment in full in the manner provided in the Plan. The Participant may purchase
less than the number of shares covered hereby, provided that no partial exercise of this option may
be for any fractional share.

     (b) Continuous Relationship with the Company Required. Except as otherwise provided
in this Section 3, this option may not be exercised unless the Participant, at the time he or she
exercises this option, is, and has been at all times since the Grant Date, an employee or officer
of, or consultant or advisor to, the Company or any other entity the employees, officers,
directors, consultants, or advisors of which are eligible to receive option grants under the Plan
(an “Eligible Participant”).

     (c) Termination of Relationship with the Company. If the Participant ceases to be an
Eligible Participant for any reason, then, except as provided in paragraphs (d) and (e) below, the
right to exercise this option shall terminate three months after such cessation (but in no event
after the Final Exercise Date), provided that this option shall be exercisable only
to the extent that the Participant was entitled to exercise this option on the date of such
cessation. Notwithstanding the foregoing, if the Participant, prior to the Final Exercise Date,
violates the non-competition or confidentiality provisions of any employment contract,
confidentiality and nondisclosure agreement or other agreement between the Participant and the
Company, the right to exercise this option shall terminate immediately upon written notice to the
Participant from the Company describing such violation.

     (d) Exercise Period Upon Death or Disability. If the Participant dies or becomes
disabled (within the meaning of Section 22(e)(3) of the Code) prior to the Final Exercise Date
while he or she is an Eligible Participant

 

 

and the Company has not terminated such relationship for “cause” as specified in paragraph (e)
below, this option shall be exercisable, within the period of one year following the date of death
or disability of the Participant, by the Participant (or in the case of death by an authorized
transferee), provided that this option shall be exercisable only to the extent that
this option was exercisable by the Participant on the date of his or her death or disability, and
further provided that this option shall not be exercisable after the Final Exercise Date.

     (e) Termination for Cause. If, prior to the Final Exercise Date, the Participant’s
employment or other relationship with the Company is terminated by the Company for Cause (as
defined below), the right to exercise this option shall terminate immediately upon the effective
date of such termination of employment or other relationship. If the Participant is party to an
employment, consulting or severance agreement with the Company that contains a definition of
“cause” for termination of employment or other relationship, “Cause” shall have the meaning
ascribed to such term in such agreement. Otherwise, “Cause” shall mean willful misconduct by the
Participant or willful failure by the Participant to perform his or her responsibilities to the
Company (including, without limitation, breach by the Participant of any provision of any
employment, consulting, advisory, nondisclosure, non-competition or other similar agreement between
the Participant and the Company), as determined by the Company, which determination shall be
conclusive. The Participant shall be considered to have been discharged for “Cause” if the Company
determines, within 30 days after the Participant’s resignation, that discharge for cause was
warranted.

4. Withholding.

     No Shares will be issued pursuant to the exercise of this option unless and until the
Participant pays to the Company, or makes provision satisfactory to the Company for payment of, any
federal, state or local withholding taxes required by law to be withheld in respect of this option.

5. Nontransferability of Option.

     This option may not be sold, assigned, transferred, pledged or otherwise encumbered by the
Participant, either voluntarily or by operation of law, except by will or the laws of descent and
distribution, and, during the lifetime of the Participant, this option shall be exercisable only by
the Participant.

6. Provisions of the Plan.

     This option is subject to the provisions of the Plan, a copy of which is furnished to the
Participant with this option.

     IN WITNESS WHEREOF, the Company has caused this option to be executed under its corporate seal
by its duly authorized officer. This option shall take effect as a sealed instrument.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	CYNOSURE, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

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PARTICIPANT’S ACCEPTANCE

     The undersigned hereby accepts the foregoing option and agrees to the terms and conditions
thereof. The undersigned hereby acknowledges receipt of a copy of the Company’s 2005 Stock
Incentive Plan.

	 	 	 	 	 	 	 
	 

	 	PARTICIPANT:	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 

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