THE TIMBERLAND COMPANY PERFORMANCE VESTED STOCK OPTION AGREEMENT
Form 10-Q
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Exhibit 10.3
THE TIMBERLAND COMPANY
2009 EXECUTIVE LONG TERM INCENTIVE PROGRAM
PERFORMANCE VESTED
STOCK OPTION AGREEMENT
STOCK OPTION AGREEMENT
The Timberland Company, a Delaware corporation (the “Company”), hereby grants, effective as of
<<Date of Grant>>, to (“Optionee”) a performance vested stock option (the
“PVSO”), which PVSO if earned will allow the Optionee to purchase up to an aggregate of
shares of Class A Common Stock of the Company (the “Class A Common Stock”), at a price of $
per share (“Option Price”) (which Option Price was not less than the per share fair market value of
Class A Common Stock on the date of grant). Such PVSO is subject to the terms and conditions of
the 2007 Incentive Plan, the 2009 Executive Long Term Incentive Program (the “2009 LTIP”) and the
additional terms and conditions delivered herewith. Such additional terms and conditions are
incorporated by reference herein and made a part hereof.
Subject to the terms of the 2007 Incentive Plan, the 2009 LTIP and the additional terms and
conditions delivered herewith, the PVSO if earned shall be exercisable for up to the following
number of shares prior to <<10th Anniversary of Date of Grant>> (the “Final
Exercise Date”):
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shares on the first anniversary of the date on which an Award
Payout (as defined in the 2009 LTIP) is approved by the Committee (as defined
in the 2009 LTIP) |
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shares on the second anniversary of the date on which an Award Payout is
approved by the Committee |
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shares on the third anniversary of the date on which an Award Payout is
approved by the Committee |
This PVSO is not intended to constitute an “incentive stock option” under Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”).
| THE TIMBERLAND COMPANY | ||||||
| By |
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| ACKNOWLEDGED AND RECEIVED | ||||||
Date:
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ADDITIONAL TERMS AND CONDITIONS OF AGREEMENT ARE ATTACHED HERETO
Form 10-Q
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ADDITIONAL TERMS AND CONDITIONS
1. Manner of Exercise; Payment. This section 1 is subject to the terms and conditions
of the 2007 Incentive Plan (the “2007 Plan”), the 2009 Executive Long Term Incentive Program (the
“2009 LTIP” and together with the 2007 Plan, the “Plan Documents”) (capitalized terms used but not
defined herein are used as defined in the Agreement and the Plan Documents), and the Performance
Vested Stock Option Agreement (the “Agreement”) to which these Additional Terms and Conditions are
attached and are made a part thereof. The PVSO may be exercised by the Optionee, his heirs or
assigns at any time, in whole or in part; provided, however, that no such partial
exercise shall be in increments of less than 100 shares, unless the aggregate number of shares as
to which this option is exercisable prior to the Final Exercise Date is less than 100 shares (in
which event such lesser amount may be exercised), by notice in writing delivered to the Company at
its principal office. Such notice shall be accompanied by payment in full of the Option Price for
the number of shares as to which the PVSO is being exercised, plus any federal, state, local or
other tax or assessment (including any interest or penalties) the Company is required to withhold.
Such payment shall be made in cash, by wire transfer, by certified check, bank draft or money order
payable to the order of the Company. Except as otherwise provided by the Company, such payment may
be made by the Optionee: (i) by delivery of shares of Class A Common Stock acceptable to the
Company and having an aggregate fair market value (valued as of the date of exercise) that is equal
to the amount of such payment; or (ii) by authorizing a third-party to sell shares of Class A
Common Stock acquired upon exercise of the PVSO and remit to the Company a sufficient portion of
the sale proceeds to pay such payment.
2. Adjustment of PVSO and Option Price. In the event of a stock dividend, stock
split, combination of shares or other similar capital change affecting the shares of Class A Common
Stock, the Option Price and the number of shares of Class A Common Stock subject to the PVSO shall
be appropriately adjusted.
3. Foreign Exchange/Ownership Requirements and Risk. Exercise of the PVSO by the
Optionee will result in the Optionee owning Stock, and may also require the exchange of funds in US
Dollars, or the use of a US-based brokerage account. The Optionee will be personally responsible
for any compliance requirements under national law regulating such foreign investment and capital
flows. These laws may change from time to time, and the Company cannot and will not guarantee that
the Optionee will be able to exercise the PVSO or use the exercise methods outlined in the Plan
Documents at any given time or location. Moreover, the Optionee will personally bear any risk
relating to foreign exchange fluctuations between the Optionee’s local currency and the US Dollar
in connection with all transactions under the Agreement.
4. Non-transferability of PVSOs. The PVSO may not be transferred other than by will
or by the laws of descent and distribution, and during the Optionee’s lifetime the PVSO may be
exercised only by the Optionee.
5. Death or Other Termination of Employment. In the event of death of the Optionee
after the end of the Performance Period, the PVSO to the extent earned shall become immediately
exercisable by the Optionee’s executor or administrator, or by the person or persons to whom the
PVSO is transferred by will or the applicable laws of descent and distribution, at any time within
the one-year period ending with the first anniversary of the Optionee’s death (subject, however, to
limitations regarding the maximum exercise period for such PVSO). Except as otherwise determined
by the Committee, in the event of death of the Optionee during the Performance Period, the PVSO
shall terminate. If the Optionee’s employment with the Company or its subsidiaries terminates for
any reason other than death, the PVSO, to the extent not then exercisable, shall terminate. To the
extent exercisable on the date of such termination, the PVSO shall continue to be exercisable for a
period of three months (subject, however, to limitations regarding the maximum exercise period for
such PVSO), unless the Optionee was
Form 10-Q
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discharged for cause which in the opinion of the Committee
casts such discredit on him as to justify termination of the PVSO.
After completion of that three-month period, the PVSO shall terminate to the extent not
previously exercised, expired or terminated. Employment shall not be considered terminated (i) in
the case of sick leave or other bona fide leave of absence approved for purposes of the 2007
Incentive Plan by the Management Development and Compensation Committee, so long as the Optionee’s
right to reemployment is guaranteed either by statute or by contract, or (ii) in the case of a
transfer of employment between the Company and a subsidiary or between subsidiaries, or to the
employment of a corporation (or a parent or subsidiary corporation of such corporation) issuing or
assuming an Option in a transaction to which section 424(a) of the Code applies.
6. Provisions of the Plan Documents. The PVSO is subject to the provisions of the
Plan Documents as amended from time to time, copies of which the Company has made available to the
Optionee. By executing the Agreement or claiming any rights hereunder, the Optionee represents
that he is familiar with the terms and provisions of the Agreement and the Plan Documents, and
hereby accepts the PVSO subject to all of the terms and provisions thereof. The Optionee hereby
agrees to accept as binding, conclusive and final all decisions or interpretations of the Company,
through the Board or Committee resolving any questions arising under the Agreement or the plans
under the Plan Documents.
7. Employment. This PVSO does not give the Participant any right to be retained in
the employ of the Company or any of its subsidiaries, nor any other right not expressly provided
for herein or in the Plan Documents.
8. Plan Administration. In order to manage and administer the Plan Documents, the
Company will need to process Optionee’s personal data (electronically or otherwise), including but
not limited to communicating such data to the Company’s group of companies and any third party
administrator. By signing the Agreement, the Optionee acknowledges receipt of this notification
and acknowledges that he/she understands that he/she may object to portions of the processing of
his/her personal data. However, such objection may affect participation in the 2009 LTIP or result
in exclusion from participation in the 2009 LTIP.
9. Miscellaneous. The Agreement shall be binding upon and inure to the benefit of the
parties hereto, the successors and assigns of the Company, and in the event of the death of the
Optionee, his executor or administrator and the person or persons to whom the PVSO is transferred
by will or the laws of descent and distribution. Except to the extent provided above, the
Agreement may not be assigned by the Optionee without the consent of the Company. The Agreement
shall be governed by and construed in accordance with the laws of the State of New Hampshire.
