Document:

exv10w7

 

EXHIBIT 10.7

WILSONS THE LEATHER EXPERTS INC.

2000 LONG TERM INCENTIVE PLAN

Non-Statutory Stock Option Agreement

(Associate)

	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.
2000 Long Term Incentive Plan (“Plan”); and

WHEREAS, pursuant to the Plan, a committee (the “Committee”) 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. Subject to the terms and conditions of the Plan and this
Agreement, 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;

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	 	(c)	 	By delivery to the Company of unencumbered Shares having an
aggregate Fair Market Value (as defined in Section 2(l) 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
pursuant to (c) or (d), above, 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; 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 a
Fundamental Change, 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.

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	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 (as defined in Section 2(c) of the Plan) 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
Section 2(f) 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.
	 
	 	 	Fundamental Change. In the event of a Fundamental Change as defined in
Section 2(m) of the Plan, the Committee may, but shall not be obligated
to:

	 	(a)	 	if the Fundamental Change 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 Section
12(g) of the Plan; or
	 
	 	(b)	 	declare at least twenty days prior to the occurrence of the
Fundamental Change, and provide written notice to the 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 Fundamental Change (unless it shall have been
exercised prior to the occurrence of the Fundamental Change). Upon
any such declaration, the holder of this Option shall become
entitled to a payment, within twenty days after the Fundamental
Change, of cash or, in the discretion of the Committee, such other
form or forms of consideration, including cash and/or property,
singly or in such combination as the Committee shall determine, that
the Optionee would have received as a result of the Fundamental
Change if the Optionee had exercised this Option immediately prior
to the Fundamental Change, such payment being, for each Share
covered by the canceled Option, equal to the amount, if any, by
which the Fair Market Value per Share (for this purpose as defined
in Section 12(g) of the Plan) exceeds the exercise price per Share
covered by this Option. At the time of the 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 this Option, to exercise this Option as to all or
any part of the Shares covered thereby. In the event of such
declaration, this Option, to the extent not exercised prior to the
Fundamental Change, shall be canceled at the time of, or immediately
prior to, the Fundamental Change, as provided in the declaration.
Notwithstanding the foregoing, the holder of this Option shall not
be entitled to the payment provided

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	 	 for in the declaration if this
Option shall have terminated, expired or been canceled.

	 	 	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. During the lifetime of the Optionee, only
the Optionee (except as provided below) may exercise this Option. This
Option may not be sold, assigned, transferred, exchanged, or otherwise
encumbered, and any attempt to do so shall be of no effect.
Notwithstanding the immediately preceding sentence (i) this Option shall
be transferable to a Successor (as defined in Section 2(cc) of the Plan)
in the event of the Optionee’s death and (ii) this Option shall be
transferable 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; provided, however, that the Optionee receives no
consideration for the transfer. If this Option is held by a permitted
transferee, this Option shall continue to be subject to the same terms and
conditions that were applicable to it immediately prior to its transfer
and may be exercised by such permitted transferee as and to the extent
that this Option has become exercisable and has not terminated in
accordance with the provisions of the Plan and this Agreement.
	 
	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. The Committee in its sole discretion
may make appropriate adjustments in the number and type of securities
issuable upon exercise of this Option, in the Option exercise price as to
this Option, in the aggregate number and type of securities available for
Awards under the Plan, and in the limitations on the number and type of
securities that may be issued to an individual Participant to give effect
to adjustments made in the number or type of Shares through a Fundamental
Change (subject to Section 12(g) of the Plan), recapitalization,
reclassification, stock dividend, stock split, stock combination, spin-off
or other relevant change in the number and type of Shares of the Company.
	 
	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 Section 12(d) 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.

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	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 Amended and Restated Articles of Incorporation, as amended from
time to time, and the Restated 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.
This Agreement shall be binding on and inure to the benefit of any
successor of the Company.
	 
	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).
	 
	19.	 	Miscellaneous. This Agreement is entered into pursuant to the
Plan and is subject to all of the terms and conditions contained in the
Plan. The Optionee acknowledges that a copy of the Plan has been made
available to him or her; and, by execution hereof, the Optionee agrees and
accepts this Agreement subject to the terms of the Plan. This Agreement
contains all terms and conditions with respect to the subject matter
hereof.

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

	 	 	 	 	 
	 	 	OPTIONEE
	 
	 	 	 	 
	 	 	
 
	 
	 	 	 	 
	 	 	WILSONS THE LEATHER EXPERTS INC.
	 
	 	 	 	 
	

	 	By	 	 
	

	 	 	
 
	

	 	   Its	 	 
	

	 	 	
 

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EXHIBIT 10.8

WILSONS THE LEATHER EXPERTS INC.

RESTRICTED STOCK AGREEMENT

     
THIS AGREEMENT made as of the _____ day of ___, between Wilsons The
Leather Experts Inc., a Minnesota corporation (the “Company”) and
___________ (the “Associate”),

W I T N E S S E T H:

     WHEREAS, the Wilsons The Leather Experts Inc. 2000 Long Term Incentive
Plan (the “Plan”) permits the Company to make certain awards to Associates,
including awards of Restricted Stock; and

     WHEREAS, the Compensation Committee of the Company (the “Committee”) has
determined to make an award of Restricted Stock to the Associate under the
Plan, such award to be governed by the terms of the Plan and this Agreement;

     NOW, THEREFORE, in consideration of the premises and the covenants and
agreements contained herein, and for other good and valuable consideration, the
parties agree as follows:

     1.      
Grant of Restricted Stock

     (a)       Subject to the terms and conditions of the Plan and of this Agreement
(and subject to execution of this Agreement by the Associate), the Company has
granted to the Associate _________ Shares, as defined in the Plan. Such Shares
are subject to the restrictions provided for herein and are referred to
collectively as the “Restricted Shares” and each as a “Restricted Share”.

     (b)       Each Restricted Share shall be evidenced by a book entry made in the
records of the Company in the name of the Associate. Associate shall have all
rights of a shareholder of the Company with respect to each Restricted Share
(including voting rights and the right to receive dividends and other
distributions), except that all restrictions provided for herein shall apply to
each Restricted Share and to any other securities distributed with respect to
such Restricted Share. No Restricted Share may be sold, transferred, pledged,
hypothecated or otherwise encumbered or disposed of until such Restricted Share
has vested in the Associate in accordance with all terms and conditions of this
Agreement. Each Restricted Share shall remain restricted and subject to
forfeiture by the Associate to the Company unless and until such Restricted
Share has vested in the Associate in accordance with all terms and conditions
of this Agreement. Each book entry evidencing any Restricted Share shall
contain such legends and stock transfer instructions or limitations as may be
determined or authorized by the Committee in its sole discretion.

     2.      
Normal Vesting. So long as the Associate has been continuously employed by
the Company or a parent or subsidiary thereof from the date hereof through each
such anniversary (excluding any periods during which the Associate is on
approved leaves of absence), then 25% of the Restricted Shares granted to the
Associate by the company as of the date hereof

 

 

will vest on each of the first through the fourth anniversaries of the date
hereof. In no event shall more than 100% of the restricted shares granted to
the Associate by the Company as of the date hereof vest. For purposes of this
Agreement, the term “employment” and similar terms shall include the providing
of services to the Company, or a parent or subsidiary thereof, in the capacity
of advisor or consultant.

     3.      
Accelerated Vesting. Notwithstanding paragraph 2, above, the Restricted
Shares that have not been forfeited shall vest immediately upon (i) a Change
in Control as defined in Section 2 of the Plan, or (ii) the death of the
Associate or the Associate’s becoming Disabled.

     4.      
Issuance of Unrestricted Shares. Upon the vesting of any Restricted Shares,
all restrictions on the transferability of such Restricted Shares will lapse,
and the Company will, subject to the provisions of the Plan (dealing with
payment of required withholding taxes and other legal requirements) remove any
legends and stock transfer instructions or restrictions from the book entry
evidencing the Restricted Shares.

     5.      
Forfeiture. If the Associate’s employment with the Company, or a parent or
subsidiary thereof, is terminated, other than by reason of the Associate’s
death or Disability (as defined in Section 2 of the Plan), then any Restricted
Shares that have not previously vested shall be forfeited by Associate to the
Company, Associate shall thereafter have no right, title or interest whatever
in such Restricted Shares. The Company is authorized to cause any book entry
in the records of the Company to be adjusted to reflect the number of
Restricted Shares so forfeited.

     6.      
The Committee; Adjustments. The Committee, in its sole and absolute
discretion, shall determine (i) whether the Associate has become Disabled (as
defined in Section 2 of the Plan) and (ii) any other terms and conditions
relating to this award. The Committee in its sole and absolute discretion, may
modify previously established goals, if any, if it determines that modification
is advisable. In addition, the Committee may modify this award, in its sole
and absolute discretion, to adjust the number or type of securities subject
hereto in the event of a reorganization, merger, consolidation,
re-capitalization, 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.

     7.      
Employment. This Agreement shall not give Associate any right to continued
employment with the Company or any parent or subsidiary thereof, and the
Company or any parent or subsidiary thereof employing Associate may terminate
such employment or otherwise treat Associate without regard to the effect it
may have upon Associate or any Restricted Shares under this Agreement.

     8.      
Miscellaneous. This Agreement is entered into pursuant to the Plan and is
subject to all of the terms and conditions contained in the Plan. The
Associate acknowledges that a copy of the Plan has been made available to him
or her; and, by execution hereof, the Associate agrees and accepts this
Agreement subject to the terms of the Plan. This Agreement shall be binding
upon and inure to the benefit of any successor of the Company. This Agreement
shall be governed by and construed in accordance with the laws of the State of
Minnesota. This Agreement contains all terms and conditions with respect to
the subject matter hereof and no amendment,

 

 

modification or other change hereto shall be of any force or effect unless and
until set forth in a writing executed by Associate and the Company.

     IN WITNESS WHEREOF, Associate has executed this Agreement and the Company
has caused this Agreement to be executed by its duly authorized officer, all as
of the day and year first above written.

	 	 	 	 
	 
	 	 
	

	 	WILSONS THE LEATHER EXPERTS INC.
	 
	 	 
	

	 	By
	

	 	 	
 
	

	 	Its
	

	 	 	
 
	

	 	

Associate

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