Zale Corporation and George Mihalko Restricted Stock Compensation Term Sheet (August–October 2006)
This agreement outlines the terms under which George Mihalko, Acting CAO & CFO of Zale Corporation, will receive restricted stock compensation valued at $162,500 for his employment from August 1 to October 31, 2006. The number of shares is based on the stock's closing price on August 3, 2006. If Mr. Mihalko remains employed through October 31, all shares vest immediately; if he leaves earlier, he receives a pro-rata portion based on his employment duration during the term.
Exhibit 10.1
George Mihalko
Acting CAO & CFO, Zale Corporation
Term Sheet
| Remaining Term of Employment: |
| August 1-October 31, 2006 |
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| Restricted Stock Compensation: |
| Equivalent of $162,500 worth of shares. Number of shares, which are determined by the price of stock on the business day preceding the date of approval by the Compensation Committee, is subject to the terms below. | ||
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| Vesting Schedule: |
| Immediate vesting on October 31, 2006 if Mr. Mihalko remains employed by the Company until that date. Should Mr. Mihalko leave the Company prior to October 31, 2006, he will receive a pro-rata portion of the total shares based on the percentage of days in the term he remains employed by the Company. | ||
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| Dating & Price of Restricted Stock Grant: |
| Closing price of stock on August 3, 2006. |
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