Exhibit 10.2
LIQUIDITY SERVICES, INC.
2006 OMNIBUS LONG-TERM INCENTIVE PLAN
TABLE OF CONTENTS
Page
1.
PURPOSE
1
2.
DEFINITIONS
1
3.
ADMINISTRATIONOFTHEPLAN
4
3.1.
Board
4
3.2.
Committee
4
3.3.
TermsofAwards
4
3.4.
DeferralArrangement
5
3.5.
NoLiability
5
3.6.
ShareIssuance
5
4.
STOCKSUBJECTTOTHEPLAN
6
5.
EFFECTIVEDATE,DURATIONANDAMENDMENTS
6
5.1.
EffectiveDate
6
5.2.
Term
6
5.3.
AmendmentandTerminationofthePlan
6
6.
AWARDELIGIBILITYANDLIMITATIONS
7
6.1.
ServiceProvidersandOtherPersons
7
6.2.
SuccessiveAwardsandSubstituteAwards
7
6.3.
LimitationonSharesofStockSubjecttoAwardsandCashAwards
7
7.
AWARDAGREEMENT
7
8.
TERMSANDCONDITIONSOFOPTIONS
7
8.1.
OptionPrice
7
8.2.
Vesting
8
8.3.
Term
8
8.4.
TerminationofService
8
8.5.
LimitationsonExerciseofOption
8
8.6.
MethodofExercise
8
8.7.
RightsofHoldersofOptions
8
8.8.
DeliveryofStockCertificates
9
8.9.
TransferabilityofOptions
9
8.10.
FamilyTransfers
9
8.11.
LimitationsonIncentiveStockOptions
9
9.
TERMSANDCONDITIONSOFSTOCKAPPRECIATIONRIGHTS
9
9.1.
RighttoPaymentandGrantPrice
9
9.2.
OtherTerms
10
10.
TERMSANDCONDITIONSOFRESTRICTEDSTOCKANDSTOCKUNITS
10
10.1.
GrantofRestrictedStockorStockUnits
10
10.2.
Restrictions
10
10.3.
RestrictedStockCertificates
10
10.4.
RightsofHoldersofRestrictedStock
10
10.5.
RightsofHoldersofStockUnits
11
10.5.1
VotingandDividendRights
11
10.5.2
Creditor'sRights
11
10.6.
TerminationofService
11
10.7.
PurchaseofRestrictedStock
11
10.8.
DeliveryofStock
11
i
Page
11.
TERMSANDCONDITIONSOFUNRESTRICTEDSTOCKAWARDS
11
12.
FORMOFPAYMENTFOROPTIONSANDRESTRICTEDSTOCK
12
12.1.
GeneralRule
12
12.2.
SurrenderofStock
12
12.3.
CashlessExercise
12
12.4.
OtherFormsofPayment
12
13.
TERMSANDCONDITIONSOFDIVIDENDEQUIVALENTRIGHTS
12
13.1.
DividendEquivalentRights
12
13.2.
TerminationofService
13
14.
TERMSANDCONDITIONSOFPERFORMANCEANDANNUALINCENTIVEAWARDS
13
14.1.
PerformanceConditions
13
14.2.
PerformanceorAnnualIncentiveAwardsGrantedtoDesignatedCoveredEmployees
13
14.2.1
PerformanceGoalsGenerally
13
14.2.2
BusinessCriteria
13
14.2.3
TimingForEstablishingPerformanceGoals
14
14.2.4
SettlementofPerformanceorAnnualIncentiveAwards;OtherTerms
14
14.3.
WrittenDeterminations
14
14.4.
StatusofSection14.2AwardsUnderCodeSection162(m)
14
15.
PARACHUTELIMITATIONS
15
16.
REQUIREMENTSOFLAW
15
16.1.
General
15
16.2.
Rule16b-3
16
17.
EFFECTOFCHANGESINCAPITALIZATION
16
17.1.
ChangesinStock
16
17.2.
ReorganizationinWhichtheCompanyIstheSurvivingEntityWhichdoesnotConstituteaCorporateTransaction
16
17.3.
CorporateTransaction
17
17.4.
Adjustments
17
17.5.
NoLimitationsonCompany
18
18.
GENERALPROVISIONS
18
18.1.
DisclaimerofRights
18
18.2.
NonexclusivityofthePlan
18
18.3.
WithholdingTaxes
18
18.4.
Captions
19
18.5.
OtherProvisions
19
18.6.
NumberandGender
19
18.7.
Severability
19
18.8.
GoverningLaw
19
18.9.
Section409AoftheCode
19
ii
LIQUIDITY SERVICES, INC.
2006 OMNIBUS LONG-TERM INCENTIVE PLAN
Liquidity Services, Inc., a Delaware corporation (the "Company"), sets forth
herein the terms of its 2006 Omnibus Long-Term Incentive Plan (the "Plan"), as
follows:
1.
PURPOSE
The Plan is intended to enhance the Company's and its Affiliates' (as defined
herein) ability to attract and retain highly qualified officers, directors, key
employees, and other persons, and to motivate such persons to serve the Company
and its Affiliates and to expend maximum effort to improve the business results
and earnings of the Company, by providing to such persons an opportunity to
acquire or increase a direct proprietary interest in the operations and future
success of the Company. To this end, the Plan provides for the grant of stock
options, stock appreciation rights, restricted stock, stock units, unrestricted
stock, dividend equivalent rights and cash awards. Any of these awards may, but
need not, be made as performance incentives to reward attainment of annual or
long-term performance goals in accordance with the terms hereof. Stock options
granted under the Plan may be non-qualified stock options or incentive stock
options, as provided herein.
2.
DEFINITIONS
For purposes of interpreting the Plan and related documents (including Award
Agreements), the following definitions shall apply:
2.1
"Affiliate" means, with respect to the
Company, any company or other trade or business that controls, is controlled by
or is under common control with