Document:

exv10w1

 

Exhibit 10.1

THIRD AMENDMENT

TO THE FIRST AMENDMENT AND RESTATEMENT OF THE

WILLIAMS-SONOMA, INC.

ASSOCIATE STOCK INCENTIVE PLAN

(2002 Restatement)

	 	 	 
	           Williams-Sonoma, Inc., a California corporation (the “Company”), hereby
makes this Third Amendment to the First Amendment and Restatement of the
Williams-Sonoma, Inc. Associate Stock Incentive Plan, generally effective
January 1, 1997, with reference to the following facts:

	 
	A.	 	The Company maintains the Williams-Sonoma, Inc. Associate Stock Incentive
Plan, which was most recently amended and restated in its entirety in 2002
(the “Plan”), for the benefit of eligible employees.
	 
	B.	 	The Company wishes to amend the Plan to reflect certain provisions of the
Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”).
This Amendment is intended as good faith compliance with the requirements
of EGTRRA and is to be construed in accordance with EGTRRA and guidance
issued thereunder. This Amendment shall supercede the provisions of the
Plan to the extent those provisions are inconsistent with the provisions
of this Amendment.
	 
	C.	 	The Company wishes to amend the Plan to permit the Plan to pay for Plan
expenses in accordance with Section 408(c) of the Employee Retirement
Income Security Act of 1974, as amended (the “Act”), the Department of
Labor (“DOL”) Letter 2001-01A and additional DOL guidance.
	 
	D.	 	The Company wishes to amend Sections 1.13 and 6.1.7 of the Plan as
requested by the Internal Revenue Service in connection with the issuance
of a favorable determination letter for the Plan;
	 
	E.	 	By Section 8.4 of the Plan, the Company has reserved the right to amend
the Plan.
	 
	           NOW, THEREFORE, the Plan is hereby amended, effective as of the first Plan
Year beginning after December 31, 2002, unless otherwise specified herein, as
follows:

	 	 	1.   	Effective January 1, 1997, the second sentence of Section
1.13 of the Plan is hereby amended to provide in its entirety as
follows:
	 
	 	 	 	“The term “Employee” shall also include an individual
who performs services for the Employer (other than an
employee of

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	 	 	 	the Employer), who pursuant to an agreement between
the Employer and any other person (“leasing
organization”), has performed services for the
Employer (and related persons determined in accordance
with Section 414(n)(6) of the Code) determined on a
substantially full-time basis for a period of at least
one year, and such services are performed under the
primary direction or control by the Employer.”
	 
	 	2.	 	Effective February 10, 2003, the following sentence shall be
added to the end of Section 4.1.6:
	 
	 	 	 	“Effective February 10, 2003, the total amount of
Contributions under Section 4.1.1 made on behalf of
Highly Compensated Employees shall not exceed 4% of
total Compensation or such other percentage determined
by the Committee from time to time.”
	 
	 	3.	 	The following Section 4.1.9 shall be added to Section 4 of
the Plan:
	 
	 	 	 	“4.1.9 Catch-Up
Contributions. Effective April 15,
2003 or as soon as administratively feasible,
whichever is later, a Participant who makes Salary
Deferral Contributions under Section 4.1.1 of the Plan
and who has attained age 50 before the close of the
Plan Year shall be eligible to make catch-up
contributions, in accordance with, and subject to the
limitations of, Section 414(v) of the Code. Such
catch-up contributions shall not be taken into account
for purposes of determining Matching Contributions
under Section 4.1.2 of the Plan, Qualified Matching
Contributions under Section 4.1.4 of the Plan, the
contribution limits under Sections 4.1.1, 4.1.6, 4.3
and 5.3.1 of the Plan or Sections 402(g) and 415 of
the Code. The Plan shall not be treated as failing to
satisfy the provisions of Sections 401(k)(3),
401(k)(11), 401(k)(12), 410(b), or 416 of the Code, as
applicable, by reason of the making of such catch-up
contributions. Notwithstanding any provision of the
Plan, catch-up contributions shall be contributed to
the Plan, and administered, thereunder, in accordance
with Section 414(v) of the Code and the applicable
regulations and other guidance of general
applicability issued thereunder.”
	 
	 	4.	 	Effective January 1, 1997, Section 6.1.7 of the Plan is
hereby amended in its entirety as follow:
	 
	 	 	 	“6.1.7 ‘Required Aggregation Group’ means each plan
(including any terminated plan) of the Employer in
which a Key Employee is a participant during the
Determination Period, and each other plan of the
Employer that enables any

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	 	 	 	plan in which a Key Employee participates to satisfy
the nondiscrimination requirements of Section
401(a)(4) of the Code or the coverage requirements of
Section 410 of the Code.”
	 
	 	5.	 	The second sentence of Section 7.5.3 shall be amended its
entirety as follows:
	 
	 	 	 	“If the value of a Participant’s vested Participant
Account exceeds $3,500 ($5,000 effective January 1,
2003), and such vested Participant Account is not
“Immediately Distributable” (as defined below), the
Participant and the Participant’s spouse (or the
survivor, if either has died) must consent to any
distribution of such Participant Account.”
	 
	 	6.	 	The following sentence shall be added after the second
sentence of Section 7.5.3:
	 
	 	 	 	“Effective January 1, 2003, assets in a Participant’s
Rollover Contribution Account (and earnings allocable
thereto) shall be disregarded for purposes of
determining the $5,000.00 limit described in this
Section 7.5.3.”
	 
	 	7.	 	Effective the date this Amendment is executed, the following
Section 10.11 shall be added to the end of Section 10 of the Plan:
	 
	 	 	 	“10.11 Notwithstanding Section 10.10 of the Plan, the
Plan shall, at the discretion of the Committee, pay
for Plan expenses in accordance with Section 408(c) of
the Act, the Department of Labor (“DOL”) Letter
2001-01A and additional DOL guidance.”

This Amendment is intended as good faith compliance with the requirements of
EGTRRA and is to be construed in accordance with EGTRRA and guidance issued
thereunder. This Amendment shall supercede the provisions of the Plan to the
extent those provisions are inconsistent with the provisions of this Amendment.

     In all other respects, the terms and provisions of the Plan are hereby
ratified and declared to remain in full force and effect.

     IN WITNESS WHEREOF, this Third Amendment has been executed this 17th day
of April, 2003.

	 	WILLIAMS-SONOMA, INC.

	 	By:	/s/ James Boike

	 	Title:	COO

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Exhibit 10.2

FOURTH AMENDMENT

TO THE FIRST AMENDMENT AND RESTATEMENT OF THE

WILLIAMS-SONOMA, INC.

ASSOCIATE STOCK INCENTIVE PLAN

(2002 Restatement)

		 	Williams-Sonoma, Inc., a California corporation (the “Company”), hereby
makes this Fourth Amendment to the First Amendment and Restatement of the
Williams-Sonoma, Inc. Associate Stock Incentive Plan, generally effective
January 1, 1997, with reference to the following facts:

	 
	A.	 	The Company maintains the Williams-Sonoma, Inc. Associate Stock Incentive
Plan, which was most recently amended and restated in its entirety in 2002
(the “Plan”), for the benefit of eligible employees.
	 
	B.	 	The Company wishes to amend the Plan’s matching contribution formula,
which is now a 100% match on a Participant’s elective deferrals that do
not exceed 6% of compensation, by reducing the match from a 100% match to
a 50% match but without changing the 6% ceiling. In addition, the Company
wishes to eliminate the prerequisite that a participant’s elective
deferrals be invested in the Company Stock Fund to qualify for a matching
contribution (although the matching contribution itself will continue to
be invested in Company Stock Fund), to clarify that the matching
contribution is made on a pay period basis, and to broaden the Company’s
authority to change the level of the matching contributions.
	 
	C.	 	The Company wishes to amend the Plan to clarify that the Company has the
authority to limit or suspend elective deferrals to the Plan, as it deems
necessary in its sole discretion, to ensure the Plan’s compliance with
applicable rules under the Internal Revenue Code (“Code”) that proscribe
discrimination in favor of highly compensated employees, and in particular
to provide the following participants are not eligible to make salary
deferral contributions that exceed four percent of their total
Compensation for a pay period: Participants whose annualized base pay
rate for the pay period: (a) effective beginning during March, 2003,
equals or exceeds the IRS dollar limit used to identify highly compensated
employees in effect for the year, and (b) effective previously and
beginning during 1998, exceeds that dollar limit.
	 
	D.	 	By Section 8.4 of the Plan, the Company has reserved the right to amend
the Plan.

           NOW, THEREFORE, the Plan is hereby amended as follows:

	 	1.	 	Section 4.1.2 shall be amended to read as follows:

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	 	               “4.1.2 Matching Contributions. The Employer shall make
contributions to the Plan as Matching Contributions, either in cash
or in Company Stock (valued as of the date of contribution) at the
election of the Employer, as follows:
	 
	 	                         4.1.2.1 Restoration of Forfeited Amounts. Matching
Contributions shall be made for each Participant whose Employment
with the Employer is terminated, who later returns to Employment
with the Employer, and who is entitled to have the amount of his
forfeiture restored under the provisions of Section 7.7, in an
amount necessary to restore any such forfeiture; and
	 
	 	                         4.1.2.2. Matching Contributions Based on Salary Deferral
Contributions. Matching Contributions shall be made for each
Participant equal to fifty percent (50%) of the Participant’s
Salary Deferral Contributions (to the extent such Salary Deferral
Contributions do not exceed six percent (6%) of the Participant’s
Compensation), subject to the lettered paragraphs below.
	 
	 	                                      (a) Applicable Percentage for 1997 to 2003. “One hundred
percent (100%) shall replace fifty percent (50%) effective for
Salary Deferral Contributions beginning May 1, 1997 and ending with
the last pay period beginning before August 1, 2003.
	 
	 	                                      (b) Pre-August 1, 2003 Requirement for Company Stock Fund
Investment. Effective for Salary Deferral Contributions made in
pay periods beginning on or after August 1, 2003, a Participant’s
Salary Deferral Contributions are eligible to be matched regardless
of how such Participant’s Salary Deferral Contributions are
invested. Effective prior thereto, a Participant’s Salary Deferral
Contributions were not eligible to be matched except to the extent
they were invested in the Company Stock Fund.
	 
	 	                                      (c) Period for Making Matching Contributions. Matching
Contributions shall be calculated on the basis of the Participant’s
Compensation and Salary Deferral Contributions for the applicable
measuring period. The applicable measuring period is the
Participant’s pay period, except that before the effective date,
the Company alternately could use a quarterly or other measuring
period. The Company shall make such Matching Contributions at such
times as may be determined by the Committee in its discretion
(provided that such times shall be substantially uniform among all
Participants).”
	 
	 	                                      (d) Authorization to Change. The Company shall have the
authority to change the Matching Contribution level at any time,
except that for periods before January 1, 2003, the percentage
level of the Matching Contributions may be altered for any Plan
Year by a resolution of the Board of Directors adopted before the
first day of such Plan Year.

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	 	2.	 	The last sentence of Section 4.1.6 of the Plan, as added by
item 3 of the Third Amendment to the Plan (“Item 3”), shall be
replaced with the following sentences which shall be adopted
simultaneously with Item 3 and which shall supersede Item 3 in its
entirety so that Item 3 shall never become effective:
	 
	 	 	 	“The Company may at any time reduce or suspend the amount of
Salary Deferral Contributions a Participant may make, if the
Committee determines, in its sole discretion, that such reduction
or suspension is necessary to meet any requirement of Section
401(a), 401(k) or 401(m) of the Code. Consistent with the
foregoing and as determined according to procedures of the plan
administrator (as identified in Section 2.2), the following
Participants shall not be eligible to make Salary Deferral
Contributions that exceed four percent (4%) of such Participants’
total Compensation for a pay period: Participants whose
annualized base pay rate for the pay period: (a) effective
beginning during March, 2003, equals or exceeds the dollar limit
in Code section 414(q)(1)(B)(i) (i.e., the dollar limit used to
identify highly compensated employees) in effect for the year of
the pay period, and (b) effective previously and beginning during
1998, exceeds such dollar limit.”

This Amendment shall supercede the provisions of the Plan to the extent those
provisions are inconsistent with the provisions of this Amendment.

     In all other respects, the terms and provisions of the Plan are hereby
ratified and declared to remain in full force and effect.

     IN
WITNESS WHEREOF, this Amendment has been executed this 17th day of
April, 2003.

	 	WILLIAMS-SONOMA, INC.

	 	By:	/s/ James Boike

	 	Title:	COO

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