Coach 2007 Annual Report Download - page 60

(b) During the Term, as an active employee, the Executive shall continue to participate in the Company’s group medical, dental, vision,
long-term disability and executive life insurance plans. For the avoidance of doubt, any payments due during the Term with respect to the Executive’s
coverage under the executive life insurance plan, including the December 2008 payment, shall be paid by the Company. Following the Termination
Date, Executive shall continue to participate in the Company’s group medical plan through the date he becomes eligible for Medicare. The premium
charged after the Transition Date shall be the same rate charged to other employees of the Company for similar coverage. After the Termination Date,
participation in the medical plan will be on an after-tax basis and Executive shall make payment by check to the Company at the higher of (i) the
same rate charged to other employees of the Company for similar coverage or (ii) the same rate charged other participants of any executive retiree
medical plan then maintained by the Company. Executive acknowledges that he has received and read the summary plan description for the plan.
Notwithstanding the foregoing, should the Company implement a Medicare supplement plan for retired employees or any other post-termination
medical plan for executives subsequent to the Termination Date, Executive shall be considered eligible for such plan.
(c) Notwithstanding anything to the contrary in the Coach Supplemental Retirement Plan, the Executive’s vested account balance under
such plan shall be distributed to the Executive on March 1, 2010.
(d) Executive shall retain his leased automobile during the period of his part-time employment, and the Company shall continue to provide
insurance coverage on the automobile. Following the Termination Date, Executive may purchase his leased automobile or return it to the Company.
(e) The Company shall reimburse the Executive for his travel expenses incurred in accordance with the Company’s Travel and
Entertainment Policy and for other reasonable and documented out-of-pocket expenses incurred in performing his duties under this Agreement.
Executive shall retain his Company-provided cell phone, Blackberry and Portal access card for use during the term of his part-time employment.
(f) Notwithstanding any other provision of this Section 1, all reimbursement of expenses pursuant to this Section 1 shall be made in
accordance with the terms of Section 7(c).
2. Stock Options and Restricted Stock Units.
(a) Subject to the Executive’s compliance with Section 2(b) of this Agreement, Stock Options (other than the Extension Options) held by
the Executive (the “Options”) and Restricted Stock Units (“RSUs”) shall continue to vest during and subsequent to the period of the Executive’s part-
time employment. The Company acknowledges that the Executive has achieved retirement status and all existing Options shall continue to vest
according to their terms regardless of Executive’s status under this Agreement.
(b) Executive shall be permitted to exercise vested Options and/or sell the shares underlying those Options. Notwithstanding anything
contained in this Agreement to the contrary, if Executive engages in any activity prohibited by Section 3 below (collectively, “Prohibited Conduct”)
during the Non-Compete Period (as defined below), then (i) Executive’s unexercised stock options and RSUs shall be forfeited automatically on the
date on which Executive first engaged in such Prohibited Conduct, and (ii) Executive shall pay to the Company in cash any Financial Gain (as
defined in the applicable Option or RSU grant agreement) Executive realized from exercising all or a portion of Executive’s stock options or RSUs
within the six (6) month period immediately preceding such Prohibited Conduct.