(1) |
Granted under Playtex 2003 Stock Option Plan for Directors and Executives and Key Employees of Playtex Products, Inc. One
third of the options (63,333) vest in equal amounts of 21,111 at the end of the first, second and third anniversaries of the
grant date provided the Executive remains employed. Two thirds of the options (126,667) vest in amounts of 42,223, 42,222
and 42,222, respectively, at the end of each of the Issuer's fiscal years (the last Saturday nearest to December 31) 2005,
2006 &2007 (the "Annual Vesting Portion"); provided that, the Executive remains employed and the Annual Vesting Portion for
each such fiscal year shall vest and become exercisable at the end of such fiscal year only if the average daily closing
share price of the Issuer's Common Stock during the last quarter of such fiscal year equals or exceeds the "Share Price
Target" ("SPT") for such fiscal year. The SPT for fiscal years 2005, 2006 &2007 are $9.50, $12.00 &$14.50,
respectively. |
(2) |
Notwithstanding the foregoing, (i) if the SPT for fiscal year 2005 (the "First Fiscal Year") is not attained, the Annual
Vesting Portion for the First Fiscal Year shall vest and become exercisable upon the earlier of (A) the end of fiscal year
2006 (the "Second Fiscal Year") if the SPT for the Second Fiscal Year is attained and (B) the end of fiscal year 2007 (the
"Third Fiscal Year") if the SPT for the Third Fiscal Year is attained, and (ii) if the SPT for the Second Fiscal Year is not
attained, the Annual Vesting Portion for the Second Fiscal Year shall vest and become exercisable if the SPT for the Third
Fiscal Year is attained; provided that, any shares of Common Stock subject to an Annual Vesting Portion that are not vested
and exercisable as of the end of the Third Fiscal Year shall be immediately terminated and canceled without payment (or
further consideration to the reporting person) by the Issuer. SPTs may be equitably adjusted in certain circumstances. |