Document:

exv10w9

Exhibit 10.9

The Talbots, Inc.

Non-Employee Director Compensation Program

Retainer Fees

Under the proposed non-employee director compensation program, annual retainer fees would be
established as follows:

	 	•	 	Each non-employee director will receive an annual cash retainer of $50,000.
	 
	 	•	 	The Non-Executive Chairman of the Board will receive an annual cash retainer of $10,000.
	 
	 	•	 	The Independent Lead Director will receive an annual cash retainer of $10,000.
	 
	 	•	 	The Chair of the Audit Committee will receive an annual cash retainer of $20,000.
	 
	 	•	 	The Chair of the Compensation Committee will receive an annual cash retainer of $15,000.
	 
	 	•	 	The Chair of the Corporate Governance and Nominating Committee will receive an annual
cash retainer of $15,000.
	 
	 	•	 	Each committee member serving on the Audit, Compensation and Corporate Governance and
Nominating Committees (not the Executive Committee or any other committee hereafter
established, subject to the discretion of the Board) will receive an annual cash retainer
of $10,000.

For purposes of clarity, should a non-employee director serve in more than one position, he or she
is entitled to receive the cash retainer for each such position.

Equity Awards

Under the proposed non-employee director compensation program, the equity grant program would be
established as follows:

	 	•	 	Annual Equity Awards – Commencing in fiscal 2010 and for each year thereafter, each
non-employee director will receive the following grants on the second business day
following the filing of the Company’s Annual Report on Form 10-K with the SEC:

	 	•	 	Restricted stock units (“RSUs”) with a fixed value of $50,000

	 	•	 	The number of RSUs to be granted will be determined using the closing
market price on the date of grant.
	 
	 	•	 	RSUs vest one year from the date of grant.
	 
	 	•	 	Upon cessation of Board service for any reason, unvested RSUs are
forfeited unless otherwise determined by the Board.

	 	•	 	Stock options with a fixed value of $50,000

 

 

	 	•	 	The number of options to be granted will be determined using the closing
market price on the date of grant and the applicable Black-Scholes
valuation.
	 
	 	•	 	The exercise price of the options will be equal to the closing market
price on the date of grant.
	 
	 	•	 	Options vest in one-third increments over three consecutive years on the
first, second and third anniversaries of the date of grant.
	 
	 	•	 	Upon a director’s retirement, death, or any other cessation of Board
service for any reason (other than for cause, or a director’s unilateral
decision to resign from the Board), any unvested shares covered by the
option will continue to vest following the cessation of Board service at
the same time or times as the option shares would otherwise have vested had
Board service continued.
	 
	 	•	 	Following a director’s retirement, death or other cessation of Board
service for any reason (other than for cause), the “exercise” period for
any vested options and any options which become vested following
termination of Board service will be (i) three (3) years following the
effective date of cessation of Board service or (ii) ninety (90) days
following the vesting date of those particular option shares which may vest
following cessation of Board service, whichever period is greater. In no
event, however, shall any of these options be exercisable after ten (10)
years from the grant date.
	 
	 	•	 	Upon the cessation of Board service for cause, any outstanding vested
options will be exercisable for a period of 90 days from the effective date
of the director’s cessation of service (but not beyond the ten (10) year
term of the option).

	 	•	 	Director Recruitment Awards:

	 	•	 	The Board will provide a one-time sign-on option grant of 20,000 stock
options for newly-appointed or newly-elected independent directors selected at the
Board’s initiative.
	 
	 	•	 	The exercise price of the options will be equal to the closing market
price on the date of grant (which will be the effective date of the director’s
appointment to the Board).
	 
	 	•	 	Options will vest in one-third increments over three consecutive years
on the first, second and third anniversaries of the date of grant.
	 
	 	•	 	There will be no post-service continued vesting for these sign-on
option grants unless specifically approved by the Board in its discretion.
	 
	 	•	 	Upon the cessation of Board service for any reason other than cause,
any outstanding vested options will be exercisable for a period of three (3) years
from the effective date of the director’s cessation of service (but not beyond the
ten (10) year term of the option).
	 
	 	•	 	Upon the cessation of Board service for cause, any outstanding vested
options will be exercisable for a period of 90 days from the effective date of the
director’s cessation of service (but not beyond the ten (10) year term of the
option).

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	 	•	 	Other Items:

	 	•	 	In accordance with the existing director stock plan document, unvested
RSUs and options vest in full upon a change in control (as defined in the Company’s
2003 Executive Stock Based Incentive Plan).
	 
	 	•	 	The exercise price of any stock options to directors, as provided for
above, will be determined and established at the closing price of the Company’s
common shares as traded on the NYSE (or such other principal securities exchange on
which the Company’s common shares are then listed or traded).
	 
	 	•	 	In the event the grant date of any RSUs or stock options to directors
falls on a date other than a business day of any such securities exchange, then the
next subsequent trading day will be used in lieu thereof to determine the number of
RSUs and/or stock options to be granted and the exercise price of stock options.
	 
	 	•	 	The current mandatory share ownership guidelines applicable to
directors will be maintained at existing levels (attainment of a minimum of 5,000
shares of Talbots stock over a three-year period which must be maintained until
cessation of service on the Board).

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Exhibit 10.10

[DATE]

[Name]

[Address]

Re: Board of Director Compensation – Restricted Stock Unit Award

Dear _________:

     The purpose of this agreement is to confirm that, effective ______, 20___, you have been
awarded ___ restricted stock units of Talbots common stock under the Talbots Restated Directors
Stock Plan, the terms of which are incorporated herein, as part of your compensation for service as
a Talbots director. [Pursuant to the stock ownership guidelines which are part of the approved
director compensation program, ___ of these share units will be mandatorily deferred into the
Director Deferred Compensation Program until the date of cessation of your service on the Board.]

     The ______share units awarded will be subject to a one-year vesting period established under
the program, and will therefore vest on ______, 20___. At such time, ______shares will be issued
to you in your name [and the balance will be deferred until you leave the Board.]

     Upon any cessation of your service as a member of the Board of Directors, any unvested
restricted stock units that you hold at that time will be forfeited and will not be permitted to
continue to vest unless otherwise determined by the Board of Directors. The restricted stock units
subject to this agreement, to the extent then outstanding and unvested, shall immediately vest upon
a Change in Control Event, as such term is defined in the Company’s 2003 Executive Stock Based
Incentive Plan.

     Notwithstanding anything to the contrary in this agreement, it is the intention of the parties
that this agreement comply with Section 409A of the Internal Revenue Code of 1986, as amended
(“Code”), and the regulations and guidance issued thereunder from time to time by the Department of
the Treasury, and this agreement and the payments of any benefits hereunder will be operated and
administered accordingly. You shall be entitled to receive payment in the form of shares of
Talbots common stock for each vested restricted stock unit no later than ninety days following a
Change in Control Event which results in an acceleration of vesting (provided that in the event
that such Change in Control Event is not a change in ownership, effective control or a substantial
portion of the assets of the Company, in each case within the meaning of Section 409A of the Code
and the regulations and guidance thereunder, then the underlying shares will not be issued to you
until the originally scheduled vesting date of ______, 20___or within 90 days thereafter).

     The Talbots Human Resource Department will provide you with additional information in the near
future on other particulars of the program. In the interim, please let me know if I can assist in
any way.

	 	 	 	 	 
	 	Sincerely,

THE TALBOTS, INC.

 	 
	 	By:  	 	 
	 	 	Richard T. O’Connell, Jr. 	 
	 	 	Secretary, Board of Directorsexv10w11

Exhibit 10.11

[DATE]

[Name]

[Address]

Dear ___:

This will confirm that, in accordance with the Restated Directors Stock Plan (the “Plan”) of The
Talbots, Inc. (the “Company”), the terms of which are incorporated herein, you have been granted an
Option for ______shares of Talbots common stock effective
______, 20___ (“Grant Date”).

Details of Option Grant

The exercise price for each share of common stock subject to this Option is $  per share, which
was the Closing Price (as defined below) of the common stock on the Grant Date.

This Option shall vest in the following increments on the following dates:

             
                       
                       
                       
                       
                       
                       

                          .

This Option may be exercised only to the extent the Option is vested and exercisable. The Option
will expire ten (10) years from the Grant Date. This Option is subject to all of the terms of the
Plan.

“Closing Price” means the closing price of Talbots common stock reported by the NYSE or the
principal securities exchange on which Talbots common stock is then listed or traded.

Vesting Upon Cessation of Board Membership

Upon your retirement, death, or any other cessation of your Board service for any reason (other
than for cause, or your unilateral decision to resign from the Board), any unvested shares of
Talbots common stock subject to the Option shall continue to vest and become exercisable following
such retirement, death or other cessation of Board service at the same time or times as such option
shares would otherwise have vested hereunder had such Board service continued. Upon a termination
of Board service for cause or such unilateral resignation, the Option as to any unvested shares
will automatically expire as of the effective date of the cessation of Board service.

Exercise Period Upon Cessation of Board Membership

Upon your retirement, death or other cessation of your Board service for any reason (other than for
cause), this Option will continue to be exercisable with respect to all vested shares and any
shares which subsequently become vested in accordance with the terms of this Option, (i) for a
period of three (3) years following the effective date of your cessation of Board service or (ii)
ninety (90) days following the vesting date of those particular option shares which vest following
cessation of Board service, whichever period is greater. In no event, however, shall this Option be
exercisable after ten (10) years from the Grant Date.

Upon the cessation of Board service for cause, the exercise period for all vested shares will
continue for 90 days following the effective date of such cessation of Board service.

 

 

Vesting Upon a Change in Control Event

This Option, to the extent then outstanding and unvested, shall immediately vest upon a Change in
Control Event, as such term is defined in the Company’s 2003 Executive Stock Based Incentive Plan.

Section 409A

This Option is intended to be excepted from coverage under Section 409A of the Internal Revenue
Code of 1986, as amended, and the regulations and guidance issued thereunder from time to time by
the Department of the Treasury, as a result of being granted with an exercise price per share equal
to or greater than the grant date fair market value per share of the common stock subject to the
Option, and shall be administered, interpreted and construed accordingly.

	 	 	 	 	 
	Sincerely,

THE TALBOTS, INC.

 	 	 
	By:  	 	 	 
	 	Richard T. O’Connell, Jr. 	 	 
	 	Secretary, Board of Directors 	 	 
	 

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