Document:

ardx_Ex10_1

		
			Exhibit 10.1
		

		
			ARDELYX, INC.
		

		
			AMENDED AND RESTATED
		

		
			NON-EMPLOYEE DIRECTOR COMPENSATION PROGRAM
		

		
			 
		

		
			Non-employee members of the board of directors (the “Board”) of Ardelyx, Inc. (the “Company”) shall be eligible to receive cash and equity compensation as set forth in this Non-Employee Director Compensation Program (this “Program”), which was adopted pursuant to the Board’s resolutions on May 23, 2014, and amended pursuant to the Board’s resolutions on March 3, 2017 and March 14, 2019.  The cash and equity compensation described in this Program shall be paid or be made, as applicable, automatically and without further action of the Board, to each member of the Board who is not an employee of the Company or any parent or subsidiary of the Company (each, a “Non-Employee Director”) who may be eligible to receive such cash or equity compensation, unless such Non-Employee Director declines the receipt of such cash or equity compensation by written notice to the Company.  This Program shall remain in effect until it is revised or rescinded by further action of the Board.  This Program may be amended, modified or terminated by the Board at any time in its sole discretion.  The terms and conditions of this Program shall supersede any prior cash and/or equity compensation arrangements for service as a member of the Board between the Company and any of its Non-Employee Directors.  This Program shall become effective on the date of the closing of the initial public offering of Company common stock (the “Effective Date”).
		

		
			1.          Cash Compensation.
		

		
			(a)         Annual Retainers.  Each Non-Employee Director shall be eligible to receive an annual retainer of $40,000 for service on the Board.
		

		
			(b)         Additional Annual Retainers.  In addition, a Non-Employee Director shall receive the following annual retainers:
		

		
			(i)          Chairman of the Board.  A Non-Employee Director serving as Chairman of the Board shall receive an additional annual retainer of $30,000 for such service.
		

		
			(ii)         Audit Committee.   A Non-Employee Director serving as Chairperson of the Audit Committee shall receive an additional annual retainer of $20,000 for such service.  A Non-Employee Director serving as a member of the Audit Committee (other than the Chairperson) shall receive an additional annual retainer of $10,000 for such service.
		

		
			(iii)       Compensation Committee.  A Non-Employee Director serving as Chairperson of the Compensation Committee shall receive an additional annual retainer of $15,000 for such service.  A Non-Employee Director serving as a member of the Compensation Committee (other than the Chairperson) shall receive an additional annual retainer of $7,500 for such service.
		

		
			(vi)        Nominating and Corporate Governance Committee.   A Non-Employee Director serving as Chairperson of the Nominating and Corporate Governance Committee shall receive an additional annual retainer of $10,000 for such service.  A Non-Employee Director serving as a member of the Nominating and Corporate Governance Committee (other than the Chairperson) shall receive an additional annual retainer of $5,000 for such service.
		

		
			
		

		
			

		 

 

		

		
			 
		

		
			(c)         Payment of Retainers.  The annual retainers described in Sections 1(a) and 1(b) (the “Annual Retainers”)  shall be paid by the Company in a single cash lump sum immediately following the Effective Date and on the date of each annual meeting of the Company’s stockholders after the Effective Date.  In the event a Non-Employee Director is initially elected or appointed to the Board or a committee thereunder on a date other than the date of an annual meeting of the Company’s stockholders, the Annual Retainers paid to such Non-Employee Director shall be paid on the date of election or appointment, prorated to reflect the number of months (rounded up to the next whole month) remaining until the next annual meeting of the Company’s stockholders.
		

		
			 
		

		
			(d)         Election to Receive Stock in Lieu of Cash. After the first payment of Annual Retainers following the Effective Date, Non-Employee Directors shall have the ability to elect to receive the Annual Retainers in an award of stock in lieu of cash pursuant to an election form provided by the Company for such purpose. Non-Employee Directors must complete and deliver the election form to the Company no later than 15 days prior to the next annual meeting of the Company’s stockholders.  In the event that a Non-Employee Director makes an election to receive the Annual Retainers in an award of stock in lieu of cash, on the annual meeting of the Company’s stockholders, he or she will automatically be granted that number of shares of fully vested Company common stock calculated by dividing the aggregate amount of the Annual Retainers by the Fair Market Value (as defined in the Equity Plan (as defined below)) of a share of Company common stock on the date of grant, rounded down to the nearest whole share.  The stock awards shall be granted under and shall be subject to the terms and provisions of the Company’s 2014 Equity Incentive Award Plan or any other applicable Company equity incentive plan then-maintained by the Company (the “Equity Plan”).  In the event of any inconsistency between the Equity Plan and this Program, the terms of this Program shall control.
		

		
			 
		

		
			2.          Equity Compensation.  Non-Employee Directors shall be granted the equity awards described below.  The awards described below shall be granted under and shall be subject to the terms and provisions of the Equity Plan and shall be granted subject to the execution and delivery of award agreements, including attached exhibits, in substantially the forms previously approved by the Board.  All applicable terms of the Equity Plan apply to this Program as if fully set forth herein, and all grants of stock options hereby are subject in all respects to the terms of the Equity Plan.  In the event of any inconsistency between the Equity Plan and this Program, the terms of this Program shall control.
		

		
			(a)         Initial Awards.  Each Non-Employee Director who is initially elected or appointed to the Board after the Effective Date shall be eligible to receive, on the date of such initial election or appointment, an option to purchase shares of the Company’s common stock with a grant date fair value of $240,000, but with a maximum number of shares of 75,000 shares of the Company’s common stock.  The awards described in this Section 2(a) shall be referred to as “Initial Awards.”  No Non-Employee Director shall be granted more than one Initial Award.
		

		
			(b)         Subsequent Awards.  A Non-Employee Director who (i) has been serving on the Board for at least six months as of the date of any annual meeting of the Company’s stockholders after the Effective Date and (ii) will continue to serve as a Non-Employee Director immediately following such meeting, shall be automatically granted, on the date of such annual meeting, an option to purchase shares of the Company’s common stock with a grant date fair value of $120,000, but with a maximum number of shares of 50,000 shares of the Company’s common stock.   The awards described in this Section 2(b) shall be referred to as “Subsequent Awards.”  For the avoidance of doubt, a Non-Employee Director elected for the first time to the Board at an annual meeting of the Company’s stockholders shall only receive an Initial Award in connection with such election, and shall not receive any Subsequent Award on the date of such meeting as well.
		

		
			 
		

		
			
		

		
			

		 

		

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			(c)         Termination of Service of Employee Directors.  Members of the Board who are employees of the Company or any parent or subsidiary of the Company who subsequently terminate their service with the Company and any parent or subsidiary of the Company and remain on the Board will not receive an Initial Award pursuant to Section 2(a) above, but to the extent that they are otherwise eligible, will be eligible to receive, after termination from service with the Company and any parent or subsidiary of the Company, Subsequent Awards as described in Section 2(b) above.
		

		
			(d)         Terms of Awards Granted to Non-Employee Directors
		

		
			(i)          Purchase Price.  The per share exercise price of each option granted to a Non-Employee Director shall equal the Fair Market Value (as defined in the Equity Plan) of a share of common stock on the date the option is granted.
		

		
			(ii)         Vesting.  Each Initial Award shall vest and become exercisable with respect to 1/36th of the shares subject to the Initial Award on each monthly anniversary of the date of grant, subject to the Non-Employee Director continuing in service on the Board through each such vesting date.  Each Subsequent Award shall vest and become exercisable with respect to 1/12th of the shares subject to the Subsequent Award on each monthly anniversary of the date of grant, which vesting will accelerate in full immediately prior to the next annual meeting of the Company’s stockholders after the date of grant to the extent unvested as of such date, subject to the Non-Employee Director continuing in service on the Board through each such vesting date.  Unless as otherwise specified herein, no portion of an Initial Award or Subsequent Award which is unvested or unexercisable at the time of a Non-Employee Director’s termination of service on the Board shall become vested and exercisable thereafter.  All of a Non-Employee Director’s Initial Awards and Subsequent Awards, and any other stock options or other equity-based awards outstanding and held by the Non-Employee Director, shall vest in full immediately prior to the occurrence of a Change in Control (as defined in the Equity Plan), to the extent outstanding at such time.
		

		
			(iii)       Term.  The term of each stock option granted to a Non-Employee Director shall be ten (10) years from the date the option is granted.
		

		
			3.          Reimbursements.  The Company shall reimburse each Non-Employee Director for all reasonable, documented, out-of-pocket travel and other business expenses incurred by such Non-Employee Director in the performance of his or her duties to the Company in accordance with the Company’s applicable expense reimbursement policies and procedures as in effect from time to time.
		

		
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			3Exhibit

EXHIBIT 10.1

SYSCO CORPORATION 
NON-EMPLOYEE DIRECTORS STOCK ELECTION POLICY 

ARTICLE 1 
General  

     This Non-Employee Directors Stock Election Policy (the “Policy”) is established pursuant to the Sysco Corporation 2018 Omnibus Incentive Plan, and any stockholder approved successor plan thereto (the “Plan”), to attract, retain and compensate for service as members of the Board of Directors (the “Board”) highly qualified individuals who are not current employees of Sysco Corporation (the “Corporation”) and to enable them to increase their ownership in the Corporation’s common stock. This Policy will be beneficial to the Corporation and its stockholders, since it will allow these Directors to have a greater personal financial stake in the Corporation through the ownership of the Corporation’s common stock, in addition to underscoring their common interest with stockholders in increasing the value of the Corporation over the longer term. 

SECTION 1.1     Definitions. Capitalized terms used in the Policy, in addition to the other definitions contained herein, shall be defined as set forth below:

		
	•
	Common Stock.  The term “Common Stock” means the Corporation’s Common Stock, $1.00 par value per share.

		
	•
	Fair Market Value.  The term “Fair Market Value” means, as of a particular date, the last closing price of the Common Stock on the first business day prior to that date on the New York Stock Exchange or, if the Common Stock is not listed on the New York Stock Exchange, on any other exchange or quotation system on which the Common Stock is listed or quoted.

    
ARTICLE 2 
Election to Receive Common Stock 

SECTION 2.1     Eligibility. 

(a)    A Non-Employee Director who is otherwise eligible to receive cash payment for services provided as a Director may elect to receive up to 100% of his or her annual retainer fee (excluding (i) any additional retainer fee paid for serving as a committee chairman (a “Committee Chairman”), (ii) any fees or other amounts payable for attendance at the meetings of the Board or for service on any committee thereof and (iii) any additional retainer fee paid to a Non-Executive Chairman of the Board (a “Board Chairman” or an independent Lead Director for his or her service in such capacity), in 10% increments, in the form of Common Stock (a “Stock Election”), subject to the following terms of this Article 2. 

(b)    In addition to the Stock Election, a Board Chairman, Lead Director or Committee Chairman who is otherwise eligible to receive an additional cash payment for his or her service in such capacity (the “Additional Fee”) may elect to receive up to 100% of such Additional Fee, in 10% increments, in the form of Common Stock (an “Additional Stock Election”), subject to the following terms of this Article 2. 

(c)    The amount of the fee which a Non-Employee Director, Board Chairman, Lead Director or Committee Chairman elects to receive in Common Stock is referred to herein as the “Elected Amount.” The Elected Amount shall be deducted ratably from the quarterly cash payments of the annual retainer fee payable to such Non-Employer Director, Board Chairman, Lead Director or Committee Chairman in that calendar year in which the Elected Amount would have been paid, but for the Stock Election. 

SECTION 2.2     Common Stock. 

(a)    Any Non-Employee Director, Board Chairman, Lead Director or Committee Chairman who makes a Stock Election or Additional Stock Election pursuant to Section 2.1 (an “Electing Director”) shall have an account created on the books of the Corporation to which shares of Common Stock shall be credited and debited as provided in this Article 2 (the “Stock Account”). 

(b)    Each Electing Director who makes a Stock Election pursuant to Section 2.1(a) shall have credited to his or her Stock Account on the date of issuance of each quarterly payment of the annual retainer fee (the “Quarterly Payment Date”) that number of shares of Common Stock determined by dividing his or her Elected Amount attributable to a Stock Election made pursuant to Section 2.1(a) by the Fair Market Value on such Quarterly Payment Date (such shares are referred to as “Elected Shares”).

(c)    Any Board Chairman, Lead Director or Committee Chairman who makes an Additional Stock Election pursuant to Section 2.1(b) shall have credited to his or her Stock Account on the Quarterly Payment Date that number of shares of Common Stock determined by dividing his or her Elected Amount attributable to an Additional Stock Election made pursuant to Section 2.1(b) by the Fair Market Value on such Quarterly Payment Date (such shares are referred to as “Additional Elected Shares”).  For purposes of this Policy, all references to “Elected Shares” shall be deemed to include the Additional Elected Shares.

SECTION 2.3     Vesting, Voting and Dividends. 

(a)    All Elected Shares shall be 100% vested as of the date they are credited to the Electing Director’s Stock Account.  Elected Shares may not be sold or transferred prior to the date they are issued.

(b)    During the period between (i) the date on which Elected Shares are credited to the Electing Director’s Stock Account and (ii) the date on which such Elected Shares are issued to the Electing Director, such Electing Director shall have no voting rights with respect to any such Elected Shares, but shall be entitled to receive cash dividends paid with respect to the underlying shares.

SECTION 2.4     Date of Issuance. The effective date of issuance of Common Stock issued pursuant to this Article 2 (the “Issue Date”) shall be December 31 for any year as to which a Non-Employee Director, Board Chairman, Lead Director or Committee Chairman has made a Stock Election or Additional Stock Election as described in Section 2.1 hereof, or if December 31 is not a business day for the Corporation’s transfer agent, the last business day of the Corporation’s transfer agent prior to December 31. On, or as soon as practicable after, the Issue Date, the total number of vested shares in his or her Stock Account on the Issue Date shall be issued in uncertificated form to such Electing Director subject to the other terms and conditions of this Policy, and at that time, the balance in such Electing Director’s Stock Account shall be debited by the number of shares issued. Notwithstanding the foregoing, if a Non-Employee Director, Board Chairman, Lead Director or Committee Chairman ceases to be a director for any reason when there are shares credited to such director’s Stock Account, such shares shall be issued in uncertificated form within 60 days of the date such Non-Employee Director, Board Chairman, Lead Director or Committee Chairman ceases to be a Director and the Issue Date of such shares shall be the date such Non-Employee Director ceased to be a director. 

SECTION 2.5     Method of Election. A Non-Employee Director, Board Chairman, Lead Director or Committee Chairman who wishes to make a Stock Election or Additional Stock Election must deliver to the Secretary of the Corporation a written irrevocable election specifying the Elected Amount by December 31 of the calendar year immediately prior to the calendar year to which the Stock Election or Additional Stock Election relates (or at such other time required under rules established by the Board). 
    
ARTICLE 3 
Miscellaneous 

SECTION 3.1     Administration. This Policy shall be administered by the Board. This Policy may be terminated or amended by the Board as they deem advisable. The Board may delegate its authority hereunder to the Non-Employee Directors, or to any two or more thereof. 

SECTION 3.2     No Other Rights.  Except as provided in this Policy, no Non-Employee Director shall have any claim or right to be granted or issued Elected Shares under this Policy. Neither this Policy nor any actions hereunder shall be construed as giving any Director any right to be retained as a director of the Corporation. 

SECTION 3.3     Regulations and Other Approvals.

(a)    The obligation of the Corporation to deliver Common Stock with respect to any award of Elected Shares (each, an “Award”) granted under the Plan shall be subject to all applicable laws, rules and regulations, including all applicable federal and state securities laws, and the obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate by the Board.
(b)    Each Award is subject to the requirement that, if at any time the Board determines, in its absolute discretion, that the listing, registration or qualification of Common Stock issuable pursuant to the Policy is required by any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the grant of an Award or the issuance of Common Stock, no such Award shall be granted or payment made or Common Stock issued, in whole or in part, unless listing, registration, qualification, consent or approval has been effected or obtained free of any conditions not acceptable to the Board.
(c)    In the event that the disposition of Common Stock acquired pursuant to the Plan is not covered by a then current registration statement under the Securities Act of 1933, as amended (the “Securities Act”), and is not otherwise exempt from such registration, such Common Stock shall be restricted against transfer to the extent required by the Securities Act, or regulations thereunder, and applicable state securities laws, and the Board may require a grantee receiving Common Stock pursuant to the Policy, as a condition precedent to receipt of such Common Stock, to represent to the Corporation in writing that the Common Stock acquired by such grantee is acquired for investment only and not with a view to distribution.
(d)    With respect to persons subject to Section 16 of the Exchange Act, it is the intent of the Corporation that the Policy and all transactions under the Policy comply with all applicable provisions of Rule 16b-3, as promulgated under the Exchange Act.

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