Document:

K-Swiss Inc. 1990 Stock Incentive Plan

 
EXHIBIT 10.1

 
K•SWISS INC. 
 
AMENDED AND RESTATED 
1990 STOCK INCENTIVE PLAN 
(as amended through October 28, 2002) 
 
Section
1.  Purpose of Plan 
 
The purpose of this
Amended and Restated 1990 Stock Incentive Plan (“Plan”) of K•Swiss Inc., a Delaware corporation (the “Company”), is to enable the Company and its subsidiaries to attract, retain and motivate their employees by providing for
or increasing the proprietary interests of such employees in the Company. 
 
Section 2.  Persons Eligible Under Plan 
 
Any person employed by the Company or any of its subsidiaries on a salaried basis, including any director who is so employed (an “Employee”), shall be eligible to be considered for the grant of Awards (as hereinafter
defined) hereunder. 
 
Section 3.  Awards 
 
(a)  The Committee (as hereinafter defined), on behalf of the
Company, is authorized under this Plan to enter into any type of arrangement with an Employee that is not inconsistent with the provisions of this Plan and that, by its terms, involves or might involve the issuance of (i) shares of Class A Common
Stock, par value $.01 per share, of the Company (“Class A Shares”) or (ii) a Derivative Security (as such term is defined in Rule 16a-1 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as
such Rule may be amended from time to time) with an exercise or conversion privilege at a price related to the Class A Shares or with a value derived from the value of the Class A Shares. The entering into of any such arrangement is referred to
herein as the “grant” of an “Award.” 
 
(b)  Awards are not restricted to any specified form or structure and may include, without limitation, sales or bonuses of stock, restricted stock, stock options, reload stock options, stock purchase warrants, other rights
to acquire stock, securities convertible into or redeemable for stock, stock appreciation rights, limited stock appreciation rights, phantom stock, dividend equivalents, performance units or performance shares, and an Award may consist of one such
security or benefit, or two or more of them in tandem or in the alternative. 
 
(c)  Class A Shares may be issued pursuant to an Award for any lawful consideration as determined by the Committee, including, without limitation, services rendered by the recipient of such Award. 
 
(d)  Subject to the provisions of this Plan, the Committee, in
its sole and absolute discretion, shall determine all of the terms and conditions of each Award granted under this Plan, which terms and conditions may include, among other things: 
 
(i)  a provision conditioning or accelerating the receipt of benefits pursuant to such Award,
either automatically or in the discretion of the Committee, upon the occurrence of specified events, including, without limitation, a change of control of the Company, an acquisition of a specified percentage of the voting power of the Company, the
dissolution or liquidation of the Company, a 

 

sale of substantially all of the property and assets of the Company or an event of the type described in Section 7 hereof; or 
 
(ii)  a provision required in order for such
Award to qualify as an incentive stock option under Section 422 of the Internal Revenue Code (an “Incentive Stock Option”). 
 
(e)  Notwithstanding any other provision of this Plan, no one Employee shall be granted options or other Awards with respect to more than
100,000 Class A Shares in any one calendar year; provided, however, that this limitation shall not apply if it is not required in order for the compensation attributable to Awards hereunder to qualify as performance-based compensation described in
Section 162(m) of the Internal Revenue Code (“Performance-Based Compensation”). The limitation set forth in this Section 3(e) shall be subject to adjustment as provided in Section 7 hereof, but only to the extent such adjustment would not
affect the status of compensation attributable to Awards hereunder as Performance-Based Compensation. 
 
(f)  Subject to the provisions of this Plan, the purchase price of any Award and the Award holder’s tax withholding obligation (if
applicable) with respect to such Award shall be made by any one or more of the following: 
 
(i)  payment in full in cash, at or before the time the Company delivers the Class A Shares underlying such Award;

 
(ii)  the delivery of
previously owned Class A Shares of the Company (including “pyramiding”), at or before the time the Company delivers the Class A Shares underlying such Award; 
 
(iii)  a reduction in the amount of Class A Shares or other property otherwise issuable
pursuant to such Award; or 
 
(iv)  the holder of the Award irrevocably authorizing a broker approved in writing by the Company to sell Class A Shares to be acquired through exercise of the Award and remitting to the Company a sufficient portion of the
sale proceeds to pay the entire purchase price and any federal and state withholding resulting from such exercise (a “Cashless Exercise”); provided, however, that notwithstanding anything in this Plan to the contrary, (a) the
Company shall only deliver such Class A Shares at or after the time the Company receives full payment for such Class A Shares, (b) the purchase price for such Class A Shares and tax withholdings (if applicable) will be due and payable to the Company
no later than one business day following the date on which the proceeds from the sale of the underlying Class A Shares are received by the authorized broker, (c) in no event will the Company directly or indirectly extend or maintain credit, arrange
for the extension of credit or renew any extension of credit, in the form of a personal loan or otherwise, in connection with a Cashless Exercise and (d) in no event shall the holder of the Award enter into any agreement or arrangement with a
brokerage or similar firm in which the proceeds received in connection with a Cashless Exercise will be received by or advanced to the holder of such Award before the date the Shares underlying such Award are delivered or released by the Company.

 
Notwithstanding anything in this Plan to the contrary, no
Award holder shall be permitted to pay the purchase price of the Class A Shares underlying such Award, or other property issuable pursuant to such Award, or such recipient’s withholding tax obligation with respect to such issuance (if
applicable), in whole or in part by the delivery of a promissory note. 
 
(g)  Notwithstanding any provisions of this Plan to the contrary: 
 
(i)  payment of the purchase price for Class A Shares underlying an Award and the Award holder’s withholding tax
obligation (if applicable) with respect to such Class A Shares shall be due the date the Class A Shares underlying the Award are delivered; and 
 
(ii)  in no event shall the Company issue or deliver Class A Shares underlying an Award before the Company receives
payment for such Class A Shares pursuant to Section 3(f). 
 

2 

 
(h)  Notwithstanding any provisions of this Plan to the contrary, Awards shall be deemed to be exercised when both of the following shall have occurred: 
 
(i)  the delivery to the Company of a written notice of such exercise; and 
 
(ii)  payment in full of the aggregate
purchase price for the Class A Shares or other property issuable pursuant to such Award and any tax withholding obligation (if applicable) with respect to such issuance. 
 
Section 4.    Stock Subject to Plan 
 
(a)  The aggregate number of Class A Shares that may be issued pursuant to all Incentive Stock Options
granted under this Plan shall not exceed 3,300,000, subject to adjustment as provided in Section 7 hereof. 
 
(b)  At any time, the aggregate number of Class A Shares issued and issuable pursuant to all Awards (including all Incentive Stock
Options) granted under this Plan shall not exceed 3,300,000, subject to adjustment as provided in Section 7 hereof. 
 
(c)  For purposes of Section 4(b) hereof, the aggregate number of Class A Shares issued and issuable pursuant to Awards granted under this
Plan shall at any time be deemed to be equal to the sum of the following: 
 
(i)  the number of Class A Shares which were issued prior to such time pursuant to Awards granted under this Plan, other than Class A Shares which were subsequently reacquired by the Company pursuant
to the terms and conditions of such Awards and with respect to which the holder thereof received no benefits of ownership such as dividends; plus 
 
(ii)  the number of Class A Shares which were otherwise issuable prior to such time pursuant to Awards granted under this
Plan, but which were withheld by the Company as payment of the purchase price of the Class A Shares issued pursuant to such Awards or as payment of the recipient’s tax withholding obligation with respect to such issuance; plus 
 
(iii)  the maximum number of Class A Shares
which are or may be issuable at or after such time pursuant to Awards granted under this Plan prior to such time. 
 
Section 5.  Duration of Plan 
 
No Awards shall be granted under this Plan after January 9, 2000. Although Class A Shares may be issued after January 9, 2000 pursuant to Awards
granted prior to such date, no Class A Shares shall be issued under this Plan after January 9, 2010. 
 
Section 6.  Administration of Plan 
 
(a) This Plan shall be administered by a committee (the “Committee”) of the Board of Directors of the Company (the “Board”) consisting of two or more directors, each of whom is a
“disinterested person” (as such term is defined in Rule 16b-3 promulgated under the Exchange Act, as such Rule may be amended from time to time). 
 
(b) Subject to the provisions of this Plan, the Committee shall be authorized and empowered to do all things necessary or desirable in connection
with the administration of this Plan, including, without limitation, the following: 
 
(i)  adopt, amend and rescind rules and regulations relating to this Plan; 
 
(ii)  determine which persons meet the
requirements of Section 2 hereof for eligibility under this Plan and to which of such eligible persons, if any, Awards shall be granted hereunder; 
 

3 

 
(iii)  grant Awards to eligible persons and determine the terms and conditions thereof, including the number of Class A Shares issuable pursuant thereto; 
 
(iv)  determine whether, and the extent to which adjustments are required pursuant to
Section 7 hereof; and 
 
(v)  interpret and construe this Plan and the terms and conditions of any Award granted hereunder. 
 
Section 7.  Adjustments 
 
If the outstanding securities of the class then subject to this Plan are increased, decreased or exchanged for or converted into cash, property or a
different number or kind of securities, or if cash, property or securities are distributed in respect of such outstanding securities, in either case as a result of a reorganization, merger, consolidation, recapitalization, restructuring,
reclassification, dividend (other than a regular, quarterly cash dividend) or other distribution, stock split, reverse stock split or the like, or if substantially all of the property and assets of the Company are sold, then, unless the terms of
such transaction shall provide otherwise, the Committee shall make appropriate and proportionate adjustments in (a) the number and type of shares or other securities or cash or other property that may be acquired pursuant to Incentive Stock Options
and other Awards theretofore granted under this Plan, (b) the maximum number and type of shares or other securities that may be issued pursuant to Incentive Stock Options and other Awards thereafter granted under this Plan and (c) to the extent
permitted under Section 3(e) hereof, the maximum number of Class A Shares with respect to which Awards may be granted to any Employee during any calendar year; provided, however, that no adjustment shall be made to the number of Class A Shares that
may be acquired pursuant to outstanding Incentive Stock Options or the maximum number of Class A Shares with respect to which Inventive Stock Options may be granted under this Plan to the extent such adjustment would result in such options being
treated as other than Incentive Stock Options; provided further that no such adjustment shall be made to the extent the Committee determines that such adjustment would result in the disallowance of a federal income tax deduction for compensation
attributable to Awards hereunder by causing such compensation to be other than Performance-Based Compensation. 
 
Section 8.  Amendment and Termination of Plan 
 
The Board may amend or terminate this Plan at any time and in any manner; provided, however, that no such amendment or termination shall deprive the
recipient of any Award theretofore granted under this Plan, without the consent of such recipient, of any of his or her rights thereunder or with respect thereto. 
 
Section 9.  Effective Date of Plan 
 
The 1990 Stock Incentive Plan became effective on January 9, 1990. The amendments to the Plan reflected herein shall be
effective as of October 28, 2002, the date upon which it was approved by the Board; provided, however, that no Class A Shares may be issued under this Plan until it has been approved, directly or indirectly, by (a) the affirmative votes of the
holders of a majority of the securities of the Company present, or represented, and entitled to vote at a meeting duly held in accordance with the laws of the state of Delaware or (b) the written consent of the holders of a majority of the
securities of the Company entitled to vote. 
 

4Amend No.1 to Employee Stock Option Agreement

 
EXHIBIT 10.2

 
AMENDMENT NO. 1 
TO 
K•SWISS INC.

EMPLOYEE STOCK OPTION AGREEMENT 
PURSUANT TO THE 
1990 STOCK INCENTIVE PLAN 
 
This AMENDMENT NO. 1 (this “Amendment”) TO K•SWISS
INC. EMPLOYEE STOCK OPTION AGREEMENT dated   
                                         (the
“Original Option Agreement”), is entered into as of October     , 2002 between K•Swiss Inc., a Delaware corporation (the “Company”), and the undersigned (the
“Option Holder”). 
 
RECITALS

 
WHEREAS, Section 402 of the Sarbanes-Oxley Act
of 2002 (the “Act”), generally prohibits the Company from directly or indirectly extending or maintaining credit, arranging for the extension of credit or renewing an extension of credit in the form of a personal loan to or for its
directors and executive officers (each, an “Executive Participant”); 
 
WHEREAS, certain provisions of the Original Option Agreement may allow for arrangements that may be deemed to be extending credit or arranging for the extension of credit by the Company to Executive
Participants, and thus potentially violative of Section 402 of the Act; and 
 
WHEREAS, the parties hereto desire to amend the Original Option Agreement to ensure compliance with the Act. 
 
AMENDMENT 
 
NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and sufficiency of which the
parties hereto acknowledge, the Company and the Option Holders hereby agree as follows: 
 
1.    Amendment of Section 6(a).    Section 6(a) of the Original Option Agreement shall be amended to read, in its entirety, as follows: 
 
“(a)  Payment for Stock. 
 
(i)  Subject to the provisions of Section
6(c) below, this Option may be exercised by the Grantee or other person then entitled to exercise it by giving written notice of exercise to the Company specifying the number of shares to be purchased and the total purchase price, accompanied by
cash or a check to the order of the Company in payment of such purchase price and tax withholdings (if applicable) pursuant to Section 6(b) below. In lieu of receiving such payment, the Company may retain some of the shares assumable upon such
exercise of the Option if the Grantee elects to discharge the purchase price in this manner and if the following conditions are satisfied: (A) the Company is not then prohibited from acquiring or purchasing such shares and (B) the number of shares
thus retained shall have an aggregate fair market value, as that term is defined in Section 4(c)(i) of the Plan, as of the day immediately preceding the date of the exercise of this Option, equal to such purchase price”; 
 

 
(ii)  Subject to the provisions of Section 6(c) below, this Option may be exercised by the Grantee irrevocably authorizing a broker approved in writing by the Company to sell shares of Class A Common Stock to be acquired
through exercise of the Option and remitting to the Company a sufficient portion of the sale proceeds to pay the entire purchase price and any federal and state withholding resulting from such exercise (a “Cashless Exercise”); provided,
however, that, notwithstanding anything in this Agreement to the contrary, (A) the Company shall only deliver such shares of Class A Common Stock at or after the time the Company receives full payment for such shares, (B) the exercise price for such
shares will be due and payable to the Company no later than one business day following the date on which the proceeds from the sale of the underlying shares of Class A Common Stock are received by the authorized broker, (C) in no event will the
Company directly or indirectly extend or maintain credit, arrange for the extension of credit or renew any extension of credit, in the form of a personal loan or otherwise, in connection with a Cashless Exercise and (D) in no event shall the
recipient of the Option enter into any agreement or arrangement with a brokerage or similar firm in which the proceeds received in connection with a Cashless Exercise will be received by or advanced to such recipient before the date the shares
underlying the Option are delivered or released by the Company.” 
 
2.    Amendment of Section 6(b).    The first sentence of Section 6(b) of the Original Option Agreement shall be amended to read, in its entirety, as follows: 
 
“If the Company or any of its subsidiaries is
required to withhold on account of any present or future tax imposed as a result of such exercise pursuant to Section 6(a), the purchase price shall be accompanied by payment of the amount of such withholding pursuant to this Section 6.”

 
3.    Addition of Section
6(c).    A new Section 6(c) shall be added to the Original Option Agreement that shall read as follows: 
 
“(c)  Notwithstanding any provision of this Agreement to the contrary: 
 
(i)  payment of the total purchase price
pursuant to Section 6(a) and tax withholdings (if applicable) pursuant to Section 6(b) with respect to shares underlying the Option shall be due the date such shares are delivered; and 
 
(ii)  in no event shall the Company issue or deliver shares underlying the Option pursuant
to this Section 6 before the Company receives payment for such shares pursuant to this Section 6.” 
 
4.    Amendment of Section 7(a).    The following sentence shall be added to the end of Section 7(a) of the Original Option Agreement: 
 
“This Section 7(a) shall be subject to the
provisions of Section 7(c), below.” 
 
5.    Amendment of Section 7(b).    The following sentence shall be added to the end of the Section 7(b) of the Original Option Agreement: 
 
“If the Company or any of its subsidiaries is
required to withhold on account of any present or future tax imposed as a result of an exercise pursuant to Section 7(a), the purchase price shall be accompanied by payment of the amount of such withholding pursuant to this Section 7.”

 

2 

 
6.    Addition of
Section 7(c).    A new Section 7(c) shall be added to the Original Option Agreement that shall read as follows: 
 
“(c)  Notwithstanding any provision of this Agreement to the contrary: 
 
(i)  payment of the total purchase price
pursuant to Section 7(a) and tax withholdings (if applicable) pursuant to Section 7(b) with respect to shares underlying the Option shall be due the date such shares are delivered; and 
 
(ii)  in no event shall the Company issue or deliver shares underlying the Option pursuant
to this Section 7 before the Company receives payment for such shares pursuant to this Section 7.” 
 
7.    No Further Amendment.    Except as expressly amended hereby (a) the Original Option Agreement shall be and remain in full force and effect, notwithstanding
this Amendment, and (b) the provisions of the Original Option Agreement (as amended hereby) are incorporated herein by this reference. 
 
8.    Governing Law.    This Amendment shall be governed by and construed in accordance with the law of the State of
California, without giving effect to its conflicts or choice of law provisions. 
 
[signature page follows] 
 

3 

 
IN WITNESS WHEREOF, the
undersigned have signed this Amendment as of the date first written above. 
 

	  THE COMPANY:

	
	  K•Swiss Inc., a Delaware corporation

	
	  By:
	  	

	  Name:
	  	

	  Title:
	  	

	
	  THE OPTION HOLDER:

	
	

	  Name:

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}]]