Document:

Prepared by MERRILL CORPORATION

Exhibit 10.46

 

FRESH CHOICE, INC.

2001

EMPLOYEE STOCK PURCHASE PLAN

1.             ESTABLISHMENT, PURPOSE AND TERM OF PLAN.

1.1           Establishment.  The Fresh Choice, Inc. 2001 Employee Stock

Purchase Plan (the “Plan”) is hereby established

effective as of December 3, 2001 (the “Effective Date”), subject to the

approval by Company stockholders.

1.2           Purpose.  The purpose of the Plan is to advance the

interests of the Company and its stockholders by providing an incentive to

attract, retain and reward Eligible Employees of the Participating Company

Group and by motivating such persons to contribute to the growth and

profitability of the Participating Company Group.  The Plan provides such Eligible Employees with an opportunity to

acquire a proprietary interest in the Company through the purchase of

Stock.  The Company intends that the

Plan qualify as an “employee stock purchase plan” under Section 423 of the

Code (including any amendments or replacements of such section), and the Plan

shall be so construed.

1.3           Term of Plan.  The Plan shall continue in effect until the

earlier of its termination by the Board or the date on which all of the shares

of Stock available for issuance under the Plan have been issued.

2.             DEFINITIONS AND CONSTRUCTION.

2.1           Definitions.  Any term not expressly defined in the Plan

but defined for purposes of Section 423 of the Code shall have the same

definition herein.  Whenever used

herein, the following terms shall have their respective meanings set forth below:

(a)           “Board” means the Board of

Directors of the Company.  If one or

more Committees have been appointed by the Board to administer the Plan,

“Board” also means such Committee(s).

(b)           “Code” means the Internal Revenue

Code of 1986, as amended, and any applicable regulations promulgated

thereunder.

(c)           “Committee” means a committee of

the Board duly appointed to administer the Plan and having such powers as

specified by the Board.  Unless the

powers of the Committee have been specifically limited, the Committee shall

have all of the powers of the Board granted herein, including, without

limitation, the power to amend or terminate the Plan at any time, subject to

the terms of the Plan and any applicable limitations imposed by law.

(d)           “Company” means Fresh Choice,

Inc., a Delaware corporation, or any successor corporation thereto.

(e)           “Compensation” means, with

respect to any Offering Period, base salary and commissions, including any base

salary or commissions deferred under any program or plan established by a

Participating Company, including, without limitation, any plan described in

Section 401(k) or Section 125 of the Code. 

Compensation shall be limited to amounts actually payable in cash

directly to the Participant or deferred by the Participant during the Offering

Period.  Compensation shall not include

overtime, bonuses, annual awards, profit sharing, other incentive payments,

shift premiums, long-term disability, workers’ compensation, moving allowances,

payments pursuant to a severance agreement, termination pay, relocation

payments, sign-on bonuses, expense reimbursements, the cost of employee

benefits paid by a Participating Company, tuition reimbursements, imputed

income arising under any benefit program, contributions made by a Participating

Company under any employee benefit plan, income directly or indirectly received

pursuant to the Plan or any other stock purchase or stock option plan, or any

other compensation not included in base salary and commissions.

(f)            “Eligible

Employee” means an Employee who meets the requirements

set forth in Section 5 for eligibility to participate in the Plan.

(g)           “Employee” means a person treated

as an employee of a Participating Company for purposes of Section 423 of the

Code.  A Participant shall be deemed to

have ceased to be an Employee either upon an actual termination of employment

or upon the corporation employing the Participant ceasing to be a Participating

Company.  For purposes of the Plan, an

individual shall not be deemed to have ceased to be an Employee while on any

military leave, sick leave, or other bona fide leave of absence approved by the

Company of ninety (90) days or less.  If

an individual’s leave of absence exceeds ninety (90) days, the individual shall

be deemed to have ceased to be an Employee on the ninety-first (91st) day of

such leave unless the individual’s right to reemployment with the Participating

Company Group is guaranteed either by statute or by contract.

(h)           “Fair Market

Value” means, as of any date:

(i)            If

the Stock is then listed on a national or regional securities exchange or

market system or is regularly quoted by a recognized securities dealer, the

closing sale price of a share of Stock (or the mean of the closing bid and

asked prices if the Stock is so quoted instead) as quoted on the Nasdaq

National Market, the Nasdaq SmallCap Market or such other national or regional

securities exchange or market system constituting the primary market for the

Stock, or by such recognized securities dealer, as reported in The Wall

Street Journal or such other source as the Company deems reliable.  If the relevant date does not fall on a day

on which the Stock has traded on such securities exchange or market system or

has been quoted by such securities dealer, the date on which the Fair Market

Value is established shall be the last day on which the Stock was so traded or

quoted prior to the relevant date, or such other appropriate day as determined

by the Board, in its discretion.

(ii)           If,

on the relevant date, the Stock is not then listed on a national or regional

securities exchange or market system or regularly quoted by a recognized

securities dealer, the Fair Market Value of a share of Stock shall be as

determined in good faith by the Board.

(i)            “Offering”

means an offering of Stock as provided in Section 6.1.

(j)            “Offering

Date” means, for any Offering, the first day of the

Offering Period.

(k)           “Offering Period” means a period

established in accordance with Section 6.

(l)            “Parent

Corporation” means any present or future “parent

corporation” of the Company, as defined in Section 424(e) of the Code.

(m)          “Participant” means an Eligible

Employee who has become a participant in an Offering Period in accordance with

Section 7 and remains a participant in accordance with the Plan.

(n)           “Participating Company” means the

Company or any Parent Corporation or Subsidiary Corporation designated by the

Board as a corporation the Employees of which may, if Eligible Employees,

participate in the Plan.  The Board

shall have the sole and absolute discretion to determine from time to time

which Parent Corporations or Subsidiary Corporations shall be Participating

Companies.

(o)           “Participating Company Group”

means, at any point in time, the Company and all other corporations

collectively which are then Participating Companies.

(p)           “Purchase Date” means, for any

Purchase Period, the last day of such period.

(q)           “Purchase Period” means a period

established in accordance with Section 6.2.

(r)            “Purchase

Price” means the price at which a share of Stock may be

purchased under the Plan, as determined in accordance with Section 9.

(s)           “Purchase Right” means an option

granted to a Participant pursuant to the Plan to purchase such shares of Stock

as provided in Section 8, which the Participant may or may not exercise

during the Offering Period in which such option is outstanding.  Such option arises from the right of a

Participant to withdraw any accumulated payroll deductions of the Participant

not previously applied to the purchase of Stock under the Plan and to terminate

participation in the Plan at any time during an Offering Period.

(t)            “Stock”

means the common stock of the Company, as adjusted from time to time in

accordance with Section 4.2.

(u)           “Subscription Agreement” means a

written agreement in such form as specified by the Company, stating an

Employee’s election to participate in the Plan and authorizing payroll

deductions under the Plan from the Employee’s Compensation.

(v)           “Subscription Date” means the

last business day prior to the Offering Date of an Offering Period or such

earlier date as the Company shall establish.

(w)          “Subsidiary Corporation” means

any present or future “subsidiary corporation” of the Company, as defined in

Section 424(f) of the Code.

2.2           Construction.  Captions and titles contained herein are for

convenience only and shall not affect the meaning or interpretation of any

provision of the Plan.  Except when

otherwise indicated by the context, the singular shall include the plural and

the plural shall include the singular. 

Use of the term “or” is not intended to be exclusive, unless the context

clearly requires otherwise.

3.             ADMINISTRATION.

3.1           Administration by the Board.  The Plan shall be administered by the

Board.  All questions of interpretation

of the Plan, of any form of agreement or other document employed by the Company

in the administration of the Plan, or of any Purchase Right shall be determined

by the Board, and such determinations shall be final, binding and conclusive

upon all persons having an interest in the Plan or the Purchase Right, unless

fraudulent or made in bad faith. 

Subject to the provisions of the Plan, the Board shall determine all of

the relevant terms and conditions of Purchase Rights; provided, however, that

all Participants granted Purchase Rights pursuant to an Offering shall have the

same rights and privileges within the meaning of Section 423(b)(5) of the

Code.  Any and all actions, decisions

and determinations taken or made by the Board in the exercise of its discretion

pursuant to the Plan or any agreement thereunder (other than determining

questions of interpretation pursuant to the second sentence of this

Section 3.1) shall be final, binding and conclusive upon all persons

having an interest therein.  All

expenses incurred in connection with the administration of the Plan shall be

paid by the Company.

3.2           Authority of Officers.  Any officer of the Company shall have the

authority to act on behalf of the Company with respect to any matter, right,

obligation, determination or election that is the responsibility of or that is

allocated to the Company herein, provided that the officer has apparent

authority with respect to such matter, right, obligation, determination or

election.

3.3           Policies and Procedures Established by

the Company.  The Company

may, from time to time, consistent with the Plan and the requirements of

Section 423 of the Code, establish, change or terminate such rules, guidelines,

policies, procedures, limitations, or adjustments as deemed advisable by the

Company, in its discretion, for the proper administration of the Plan,

including, without limitation, (a) a minimum payroll deduction amount

required for participation in an Offering, (b) a limitation on the

frequency or number of changes permitted in the rate of payroll deduction

during an Offering, (c) an exchange ratio applicable to amounts withheld

in a currency other than United States dollars, (d) a payroll deduction

greater than or less than the amount designated by a Participant in order to

adjust for the Company’s delay or mistake in processing a Subscription

Agreement or in otherwise effecting a Participant’s election under the Plan or

as advisable to comply with the requirements of Section 423 of the Code, and

(e) determination of the date and manner by which the Fair Market Value of

a share of Stock is determined for purposes of administration of the Plan.  All such actions by the Company shall be

taken consistent with the requirement under Section 423(b)(5) of the Code

that all Participants granted Purchase Rights pursuant to an Offering shall

have the same rights and privileges within the meaning of such section.

3.4           Indemnification.  In addition to such other rights of

indemnification as they may have as members of the Board or officers or

employees of the Participating Company Group, members of the Board and any

officers or employees of the Participating Company Group to whom authority to

act for the Board or the Company is delegated shall be indemnified by the

Company against all reasonable expenses, including attorneys’ fees, actually

and necessarily incurred in connection with the defense of any action, suit or

proceeding, or in connection with any appeal therein, to which they or any of

them may be a party by reason of any action taken or failure to act under or in

connection with the Plan, or any right granted hereunder, and against all

amounts paid by them in settlement thereof (provided such settlement is

approved by independent legal counsel selected by the Company) or paid by them

in satisfaction of a judgment in any such action, suit or proceeding, except in

relation to matters as to which it shall be adjudged in such action, suit or

proceeding that such person is liable for gross negligence, bad faith or

intentional misconduct in duties; provided, however, that within sixty (60)

days after the institution of such action, suit or proceeding, such person

shall offer to the Company, in writing, the opportunity at its own expense to

handle and defend the same.

4.             SHARES SUBJECT TO PLAN.

4.1           Maximum Number of Shares Issuable.  Subject to adjustment as provided in Section

4.2, the maximum aggregate number of shares of Stock that may be issued under

the Plan shall be two hundred ninety thousand (290,000), and shall consist of

authorized but unissued or reacquired shares of Stock, or any combination

thereof.  If an outstanding Purchase

Right for any reason expires or is terminated or canceled, the shares of Stock

allocable to the unexercised portion of that Purchase Right shall again be

available for issuance under the Plan.

4.2           Adjustments for Changes in Capital

Structure.  In the event of

any stock dividend, stock split, reverse stock split, recapitalization,

combination, reclassification or similar change in the capital structure of the

Company, or in the event of any merger (including a merger effected for the

purpose of changing the Company’s domicile), sale of assets or other

reorganization in which the Company is a party, appropriate adjustments shall

be made in the number and class of shares subject to the Plan and each Purchase

Right, and in the Purchase Price.  If a

majority of the shares of the same class as the shares subject to outstanding

Purchase Rights are exchanged for, converted into, or otherwise become (whether

or not pursuant to an Ownership Change Event) shares of another corporation

(the “New Shares”),

the Board may unilaterally amend the outstanding Purchase Rights to provide

that such Purchase Rights are exercisable for New Shares.  In the event of any such amendment, the

number of shares subject to, and the Purchase Price of, the outstanding

Purchase Rights shall be adjusted in a fair and equitable manner, as determined

by the Board, in its discretion. 

Notwithstanding the foregoing, any fractional share resulting from an

adjustment pursuant to this Section 4.2 shall be rounded down to the nearest

whole number, and in no event may the Purchase Price be decreased to an amount

less than the par value, if any, of the stock subject to the Purchase

Right.  The adjustments determined by

the Board pursuant to this Section 4.2 shall be final, binding and conclusive.

5.             ELIGIBILITY.

5.1           Employees Eligible to Participate.  Each Employee of a Participating

Company who has been employed by a Participating Company for at least six (6)

consecutive months is eligible to participate in the Plan and shall be deemed

an Eligible Employee.

5.2           Exclusion of Certain Stockholders.  Notwithstanding any provision of the Plan to

the contrary, no Employee shall be treated as an Eligible Employee and granted

a Purchase Right under the Plan if, immediately after such grant, the Employee

would own or hold options to purchase stock of the Company or of any Parent

Corporation or Subsidiary Corporation possessing five percent (5%) or more of

the total combined voting power or value of all classes of stock of such

corporation, as determined in accordance with Section 423(b)(3) of the

Code.  For purposes of this Section 5.2,

the attribution rules of Section 424(d) of the Code shall apply in determining

the stock ownership of such Employee.

5.3           Determination by Company.  The Company shall determine in good faith

and in the exercise of its discretion whether an individual has become or has

ceased to be an Employee or an Eligible Employee and the effective date of such

individual’s attainment or termination of such status, as the case may be.  For purposes of an individual’s

participation in or other rights, if any, under the Plan as of the time of the

Company’s determination, all such determinations by the Company shall be final,

binding and conclusive, notwithstanding that the Company or any court of law or

governmental agency subsequently makes a contrary determination.

6.             OFFERINGS.

6.1           Offering Periods.  The Plan shall be implemented on and after

the Effective Date by sequential and overlapping Offerings of approximately

twelve (12) months duration or such other duration as the Board shall determine

(an “Offering

Period”); provided, however, that the first Offering

Period shall commence on the Effective Date and end on or about

November 29, 2002.  Subsequent

Offering Periods shall commence on or about June 1 and December 1 of

each year and end on or about the last days of the next May and November,

respectively, occurring thereafter. 

Notwithstanding the foregoing, the Board may establish a different duration

for one or more Offering Periods or different commencing or ending dates for

such Offering Periods; provided, however, that no Offering Period may have a

duration exceeding twenty-seven (27) months. 

If the first or last day of an Offering Period is not a day on which the

national securities exchanges or Nasdaq Stock Market are open for trading, the

Company shall specify the trading day that will be deemed the first or last

day, as the case may be, of the Offering Period.

6.2           Purchase Periods.  Each Offering Period shall consist of two

(2) consecutive purchase periods of approximately six (6) months duration, or

such other number or duration as the Board shall determine (individually, a “Purchase

Period”).  A

Purchase Period commencing on or about December 1 shall end on or about

the next May 31.  A Purchase Period

commencing on or about June 1 shall end on or about the next

November 30.  Notwithstanding the

foregoing, the Board may establish a different duration for one or more

Purchase Periods or different commencing or ending dates for such Purchase Periods.  If the first or last day of a Purchase

Period is not a day on which the national securities exchanges or Nasdaq Stock

Market are open for trading, the Company shall specify the trading day that

will be deemed the first or last day, as the case may be, of the Purchase

Period.

7.             PARTICIPATION IN THE PLAN.

7.1           Initial Participation.  An Eligible Employee may become a

Participant in an Offering Period by delivering a properly completed

Subscription Agreement to the office designated by the Company not later than

the close of business for such office on the Subscription Date established by

the Company for that Offering Period. 

An Eligible Employee who does not deliver a properly completed

Subscription Agreement to the Company’s designated office on or before the

Subscription Date for an Offering Period shall not participate in the Plan for

that Offering Period or for any subsequent Offering Period unless the Eligible

Employee subsequently delivers a properly completed Subscription Agreement to

the appropriate office of the Company on or before the Subscription Date for

such subsequent Offering Period.  An

Employee who becomes an Eligible Employee after the Offering Date of an

Offering Period shall not be eligible to participate in that Offering Period but

may participate in any subsequent Offering Period provided the Employee is

still an Eligible Employee as of the Offering Date of such subsequent Offering

Period.

7.2           Continued Participation.  A Participant shall automatically

participate in the next Offering Period commencing immediately after the final

Purchase Date of each Offering Period in which the Participant participates

provided that the Participant remains an Eligible Employee on the Offering Date

of the new Offering Period and has not either (a) withdrawn from the Plan

pursuant to Section 12.1 or (b) terminated employment as provided in

Section 13.  A Participant who may

automatically participate in a subsequent Offering Period, as provided in this

Section, is not required to deliver any additional Subscription Agreement for

the subsequent Offering Period in order to continue participation in the

Plan.  However, a Participant may

deliver a new Subscription Agreement for a subsequent Offering Period in accordance

with the procedures set forth in Section 7.1 if the Participant desires to

change any of the elections contained in the Participant’s then effective

Subscription Agreement.

8.             RIGHT TO PURCHASE SHARES.

8.1           Grant of Purchase Right.  Except as set forth below, on the Offering

Date of each Offering Period, each Participant in that Offering Period shall be

granted automatically a Purchase Right consisting of an option to purchase the

lesser of (a) that number of whole shares of Stock determined by dividing

Twenty-Five Thousand Dollars ($25,000) by the Fair Market Value of a share of

Stock on such Offering Date or (b) seven thousand five hundred (7,500)

shares of Stock.  No Purchase Right

shall be granted on an Offering Date to any person who is not, on such Offering

Date, an Eligible Employee.

8.2           Pro Rata Adjustment of Purchase Right.  Notwithstanding the provisions of Section

8.1, if the Board establishes an Offering Period of any duration other than

twelve months, then (a) the dollar amount in Section 8.1 shall be determined by

multiplying $2,083.33 by the number of months (rounded to the nearest whole

month) in the Offering Period and rounding to the nearest whole dollar, and (b)

the share amount in Section 8.1 shall be determined by multiplying 625 shares

by the number of months (rounded to the nearest whole month) in the Offering

Period and rounding to the nearest whole share.

8.3           Calendar Year Purchase Limitation.  Notwithstanding any provision of the Plan to

the contrary, no Participant shall be granted a Purchase Right which permits

his or her right to purchase shares of Stock under the Plan to accrue at a rate

which, when aggregated with such Participant’s rights to purchase shares under

all other employee stock purchase plans of a Participating Company intended to

meet the requirements of Section 423 of the Code, exceeds Twenty-Five Thousand

Dollars ($25,000) in Fair Market Value (or such other limit, if any, as may be

imposed by the Code) for each calendar year in which such Purchase Right is

outstanding at any time.  For purposes

of the preceding sentence, the Fair Market Value of shares purchased during a

given Offering Period shall be determined as of the Offering Date for such

Offering Period.  The limitation

described in this Section shall be applied in conformance with applicable regulations

under Section 423(b)(8) of the Code.

9.             PURCHASE PRICE.

The Purchase Price at which each share of Stock may be

acquired in an Offering Period upon the exercise of all or any portion of a

Purchase Right shall be established by the Board; provided, however, that the

Purchase Price on each Purchase Date shall not be less than eighty–five

percent (85%) of the lesser of (a) the Fair Market Value of a share of

Stock on the Offering Date of the Offering Period or (b) the Fair Market

Value of a share of Stock on the Purchase Date.  Unless otherwise provided by the Board prior to the commencement

of an Offering Period, the Purchase Price on each Purchase Date during that

Offering Period shall be eighty–five percent (85%) of the lesser of

(a) the Fair Market Value of a share of Stock on the Offering Date of the

Offering Period, or (b) the Fair Market Value of a share of Stock on the

Purchase Date.

10.           ACCUMULATION OF PURCHASE PRICE THROUGH PAYROLL

DEDUCTION.

Shares of Stock acquired pursuant to the exercise of

all or any portion of a Purchase Right may be paid for only by means of payroll

deductions from the Participant’s Compensation accumulated during the Offering

Period for which such Purchase Right was granted, subject to the following:

10.1         Amount of Payroll Deductions.  Except as otherwise provided herein, the

amount to be deducted under the Plan from a Participant’s Compensation on each

payday during an Offering Period shall be determined by the Participant’s

Subscription Agreement.  The

Subscription Agreement shall set forth the percentage of the Participant’s

Compensation to be deducted on each payday during an Offering Period in whole

percentages of not less than one percent (1%) (except as a result of an

election pursuant to Section 10.3 to stop payroll deductions effective

following the first payday during an Offering) or more than ten percent

(10%).  The Board may change the

foregoing limits on payroll deductions effective as of any Offering Date.

10.2         Commencement of Payroll Deductions.  Payroll deductions shall commence on the

first payday following the Offering Date and shall continue to the end of the

Offering Period unless sooner altered or terminated as provided herein.

10.3         Election to Change or Stop Payroll

Deductions.  During an

Offering Period, a Participant may elect to increase or decrease the rate of or

to stop deductions from his or her Compensation by delivering to the Company’s

designated office an amended Subscription Agreement authorizing such change on

or before the Change Notice Date, as defined below.  A Participant who elects, effective following the first payday of

an Offering Period, to decrease the rate of his or her payroll deductions to

zero percent (0%) shall nevertheless remain a Participant in the current

Offering Period unless such Participant withdraws from the Plan as provided in

Section 12.1.  The “Change Notice Date” shall be the

day immediately prior to the beginning of the first pay period for which such

election is to be effective, unless a different date is established by the

Company and announced to the Participants.

10.4         Administrative Suspension of Payroll

Deductions.  The Company may,

in its sole discretion, suspend a Participant’s payroll deductions under the

Plan as the Company deems advisable to avoid accumulating payroll deductions in

excess of the amount that could reasonably be anticipated to purchase the

maximum number of shares of Stock permitted (a) under the Participant’s

Purchase Right or (b) during a calendar year under the limit set forth in

Section 8.3.  Payroll deductions shall

be resumed at the rate specified in the Participant’s then effective

Subscription Agreement at the beginning, respectively, of (a) the next Offering

Period the first Purchase Date of which falls in the following calendar year,

provided that the individual is a Participant in such Offering Period or (b)

the next Purchase Period the Purchase Date of which falls in the following

calendar year, unless the Participant has either withdrawn from the Plan as

provided in Section 12.1 or has ceased to be an Eligible Employee.

10.5         Participant Accounts.  Individual bookkeeping accounts shall be

maintained for each Participant.  All

payroll deductions from a Participant’s Compensation shall be credited to such

Participant’s Plan account and shall be deposited with the general funds of the

Company.  All payroll deductions

received or held by the Company may be used by the Company for any corporate

purpose.

10.6         No Interest Paid.  Interest shall not be paid on sums deducted

from a Participant’s Compensation pursuant to the Plan.

10.7         Voluntary Withdrawal from Plan Account.  A Participant may withdraw all or any

portion of the payroll deductions credited to his or her Plan account and not

previously applied toward the purchase of Stock by delivering to the Company’s

designated office a written notice on a form provided by the Company for such

purpose.  A Participant who withdraws

the entire remaining balance credited to his or her Plan account shall be deemed

to have withdrawn from the Plan in accordance with Section 12.1.  Amounts withdrawn shall be returned to the

Participant as soon as practicable after the Company’s receipt of the notice of

withdrawal and may not be applied to the purchase of shares in any Offering

under the Plan.  The Company may from

time to time establish or change limitations on the frequency of withdrawals

permitted under this Section, establish a minimum dollar amount that must be

retained in the Participant’s Plan account, or terminate the withdrawal right

provided by this Section.

11.           PURCHASE OF SHARES.

11.1         Exercise of Purchase Right.  On each Purchase Date of an Offering Period,

each Participant who has not withdrawn from the Plan and whose participation in

the Offering has not otherwise terminated before such Purchase Date shall

automatically acquire pursuant to the exercise of the Participant’s Purchase

Right the number of whole shares of Stock determined by dividing (a) the total

amount of the Participant’s payroll deductions accumulated in the Participant’s

Plan account during the Offering Period and not previously applied toward the

purchase of Stock by (b) the Purchase Price. 

However, in no event shall the number of shares purchased by the

Participant during an Offering Period exceed the number of shares subject to

the Participant’s Purchase Right.  No

shares of Stock shall be purchased on a Purchase Date on behalf of a

Participant whose participation in the Offering or the Plan has terminated

before such Purchase Date.

11.2         Pro Rata Allocation of Shares.  If the number of shares of Stock which might

be purchased by all Participants in the Plan on a Purchase Date exceeds the

number of shares of Stock available in the Plan as provided in Section 4.1, the

Company shall make a pro rata allocation of the remaining shares in as uniform

a manner as practicable and as the Company determines to be equitable.  Any fractional share resulting from such pro

rata allocation to any Participant shall be disregarded.

11.3         Delivery of Certificates.  As soon as practicable after each Purchase

Date, the Company shall arrange the delivery to each Participant of a

certificate representing the shares acquired by the Participant on such

Purchase Date; provided that the Company may deliver such shares to a broker

designated by the Company that will hold such shares for the benefit of the

Participant.  Shares to be delivered to

a Participant under the Plan shall be registered in the name of the

Participant, or, if requested by the Participant, in the name of the

Participant and his or her spouse, or, if applicable, in the names of the heirs

of the Participant.

11.4         Return of Cash Balance.  Any cash balance remaining in a

Participant’s Plan account following any Purchase Date shall be refunded to the

Participant as soon as practicable after such Purchase Date.  However, if the cash balance to be returned

to a Participant pursuant to the preceding sentence is less than the amount

that would have been necessary to purchase an additional whole share of Stock

on such Purchase Date, the Company may retain the cash balance in the

Participant’s Plan account to be applied toward the purchase of shares of Stock

in the subsequent Purchase Period or Offering Period, as the case may be.

11.5         Tax Withholding.  At the time a Participant’s Purchase Right

is exercised, in whole or in part, or at the time a Participant disposes of

some or all of the shares of Stock he or she acquires under the Plan, the

Participant shall make adequate provision for the federal, state, local and

foreign tax withholding obligations, if any, of the Participating Company Group

which arise upon exercise of the Purchase Right or upon such disposition of

shares, respectively.  The Participating

Company Group may, but shall not be obligated to, withhold from the

Participant’s compensation the amount necessary to meet such withholding

obligations.

11.6         Expiration of Purchase Right.  Any portion of a Participant’s Purchase

Right remaining unexercised after the end of the Offering Period to which the

Purchase Right relates shall expire immediately upon the end of the Offering

Period.

11.7         Provision of Reports and Stockholder

Information to Participants. 

Each Participant who has exercised all or part of his or her Purchase

Right shall receive, as soon as practicable after the Purchase Date, a report

of such Participant’s Plan account setting forth the total payroll deductions

accumulated prior to such exercise, the number of shares of Stock purchased,

the Purchase Price for such shares, the date of purchase and the cash balance,

if any, remaining immediately after such purchase that is to be refunded or

retained in the Participant’s Plan account pursuant to Section 11.4.  The report required by this Section may be

delivered in such form and by such means, including by electronic transmission,

as the Company may determine.  In

addition, each Participant shall be provided information concerning the Company

equivalent to that information provided generally to the Company’s common

stockholders.

12.           WITHDRAWAL FROM PLAN OR OFFERING.

12.1         Voluntary Withdrawal from the Plan.  A Participant may withdraw from the Plan by

signing and delivering to the Company’s designated office a written notice of

withdrawal on a form provided by the Company for this purpose.  Such withdrawal may be elected at any time prior

to the end of an Offering Period; provided, however, that if a Participant

withdraws from the Plan after a Purchase Date, the withdrawal shall not affect

shares of Stock acquired by the Participant on such Purchase Date.  A Participant who voluntarily withdraws from

the Plan is prohibited from resuming participation in the Plan in the same

Offering from which he or she withdrew, but may participate in any subsequent

Offering by again satisfying the requirements of Sections 5 and 7.1.  The Company may impose, from time to time, a

requirement that the notice of withdrawal from the Plan be on file with the

Company’s designated office for a reasonable period prior to the effectiveness

of the Participant’s withdrawal.

12.2         Automatic Withdrawal from an Offering.  If the Fair Market Value of a

share of Stock on a Purchase Date other than the final Purchase Date of an

Offering is less than the Fair Market Value of a share of Stock on the Offering

Date of the Offering, then every Participant automatically shall be (a)

withdrawn from such Offering after the acquisition of shares of Stock on the

Purchase Date and (b) enrolled in the new Offering commencing immediately

following such Purchase Date.  A

Participant may elect not to be automatically withdrawn from an from an

Offering pursuant to this Section 12.2 by delivering to the Company’s

designated office not later than the close of business on the Purchase Date a

written notice indicating such election.

12.3         Return of Payroll Deductions.  Upon a Participant’s voluntary withdrawal

from the Plan pursuant to Section 12.1 or automatic withdrawal from an Offering

pursuant to Section 12.2, the Participant’s accumulated payroll deductions

which have not been applied toward the purchase of shares of Stock (except, in

the case of an automatic withdrawal pursuant to Section 12.2, for an amount

necessary to purchase an additional whole share of Stock as provided in Section

11.4) shall be refunded to the Participant as soon as practicable after the

withdrawal, without the payment of any interest, and the Participant’s interest

in the Plan or the Offering, as applicable, shall terminate.  Such accumulated payroll deductions to be

refunded in accordance with this Section may not be applied to any other

Offering under the Plan.

13.           TERMINATION OF EMPLOYMENT OR ELIGIBILITY.

Upon a Participant’s ceasing, prior to a Purchase

Date, to be an Employee of the Participating Company Group for any reason,

including retirement, disability or death, or upon the failure of a Participant

to remain an Eligible Employee, the Participant’s participation in the Plan

shall terminate immediately.  In such

event, the Participant’s accumulated payroll deductions which have not been

applied toward the purchase of shares shall, as soon as practicable, be returned

to the Participant or, in the case of the Participant’s death, to the

Participant’s beneficiary designated in accordance with Section 20, if

any, or legal representative, and all of the Participant’s rights under the

Plan shall terminate.  Interest shall

not be paid on sums returned pursuant to this Section 13.  A Participant whose participation has been

so terminated may again become eligible to participate in the Plan by

satisfying the requirements of Sections 5 and 7.1.

14.           CHANGE IN CONTROL.

14.1         Definitions.

(a)           An “Ownership

Change Event” shall be deemed to have occurred if any of

the following occurs with respect to the Company: (i) the direct or

indirect sale or exchange in a single or series of related transactions by the

stockholders of the Company of more than fifty percent (50%) of the voting

stock of the Company; (ii) a merger or consolidation in which the Company

is a party; (iii) the sale, exchange, or transfer of all or substantially

all of the assets of the Company; or (iv) a liquidation or dissolution of

the Company.

(b)           A “Change in

Control” shall mean an Ownership Change Event or a series

of related Ownership Change Events (collectively, the “Transaction”) wherein the

stockholders of the Company immediately before the Transaction do not retain

immediately after the Transaction, in substantially the same proportions as

their ownership of shares of the Company’s voting stock immediately before the

Transaction, direct or indirect beneficial ownership of more than fifty percent

(50%) of the total combined voting power of the outstanding voting securities

of the Company or, in the case of a Transaction described in

Section 14.1(a)(iii), the corporation or other business entity to which

the assets of the Company were transferred (the “Transferee”), as the case may

be.  For purposes of the preceding

sentence, indirect beneficial ownership shall include, without limitation, an

interest resulting from ownership of the voting securities of one or more

corporations or other business entities which own the Company or the

Transferee, as the case may be, either directly or through one or more

subsidiary corporations or other business entities.  The Board shall have the right to determine whether multiple sales

or exchanges of the voting securities of the Company or multiple Ownership

Change Events are related, and its determination shall be final, binding and

conclusive.

14.2         Effect of Change in Control on Purchase

Rights.  In the event of a

Change in Control, the surviving, continuing, successor, or purchasing

corporation or other business entity or parent thereof, as the case may be (the

“Acquiring

Corporation”), may, without the consent of any

Participant, assume the Company’s rights and obligations under the Plan.  If the Acquiring Corporation elects not to

assume the Company’s rights and obligations under the Plan, the Purchase Date

of the then current Purchase Period shall be accelerated to a date before the

date of the Change in Control specified by the Board, but the number of shares

of Stock subject to outstanding Purchase Rights shall not be adjusted.  All Purchase Rights which are neither

assumed by the Acquiring Corporation in connection with the Change in Control

nor exercised as of the date of the Change in Control shall terminate and cease

to be outstanding effective as of the date of the Change in Control.

15.           NONTRANSFERABILITY OF PURCHASE RIGHTS.

Neither payroll deductions credited to a Participant’s

Plan account nor a Participant’s Purchase Right may be assigned, transferred,

pledged or otherwise disposed of in any manner other than as provided by the

Plan or by will or the laws of descent and distribution.  (A beneficiary designation pursuant to

Section 20 shall not be treated as a disposition for this purpose.)  Any such attempted assignment, transfer,

pledge or other disposition shall be without effect, except that the Company

may treat such act as an election to withdraw from the Plan as provided in

Section 12.1.  A Purchase Right shall be

exercisable during the lifetime of the Participant only by the Participant.

16.           COMPLIANCE WITH SECURITIES LAW.

The issuance of shares under the Plan shall be subject

to compliance with all applicable requirements of federal, state and foreign

law with respect to such securities.  A

Purchase Right may not be exercised if the issuance of shares upon such

exercise would constitute a violation of any applicable federal, state or

foreign securities laws or other law or regulations or the requirements of any

securities exchange or market system upon which the Stock may then be

listed.  In addition, no Purchase Right

may be exercised unless (a) a registration statement under the Securities

Act of 1933, as amended, shall at the time of exercise of the Purchase Right be

in effect with respect to the shares issuable upon exercise of the Purchase

Right, or (b) in the opinion of legal counsel to the Company, the shares

issuable upon exercise of the Purchase Right may be issued in accordance with

the terms of an applicable exemption from the registration requirements of said

Act.  The inability of the Company to

obtain from any regulatory body having jurisdiction the authority, if any,

deemed by the Company’s legal counsel to be necessary to the lawful issuance

and sale of any shares under the Plan shall relieve the Company of any

liability in respect of the failure to issue or sell such shares as to which

such requisite authority shall not have been obtained.  As a condition to the exercise of a Purchase

Right, the Company may require the Participant to satisfy any qualifications

that may be necessary or appropriate, to evidence compliance with any

applicable law or regulation, and to make any representation or warranty with

respect thereto as may be requested by the Company.

17.           RIGHTS AS A STOCKHOLDER AND EMPLOYEE.

A Participant shall have no rights as a stockholder by

virtue of the Participant’s participation in the Plan until the date of the

issuance of a certificate for the shares purchased pursuant to the exercise of

the Participant’s Purchase Right (as evidenced by the appropriate entry on the

books of the Company or of a duly authorized transfer agent of the

Company).  No adjustment shall be made

for dividends, distributions or other rights for which the record date is prior

to the date such certificate is issued, except as provided in Section 4.2.  Nothing herein shall confer upon a

Participant any right to continue in the employ of the Participating Company

Group or interfere in any way with any right of the Participating Company Group

to terminate the Participant’s employment at any time.

18.           LEGENDS.

The Company may at any time place legends or other

identifying symbols referencing any applicable federal, state or foreign

securities law restrictions or any provision convenient in the administration

of the Plan on some or all of the certificates representing shares of Stock

issued under the Plan.  The Participant

shall, at the request of the Company, promptly present to the Company any and

all certificates representing shares acquired pursuant to a Purchase Right in

the possession of the Participant in order to carry out the provisions of this

Section.  Unless otherwise specified by

the Company, legends placed on such certificates may include but shall not be

limited to the following:

“THE SHARES EVIDENCED BY THIS CERTIFICATE WERE ISSUED

BY THE CORPORATION TO THE REGISTERED HOLDER UPON THE PURCHASE OF SHARES UNDER

AN EMPLOYEE STOCK PURCHASE PLAN AS DEFINED IN SECTION 423 OF THE INTERNAL

REVENUE CODE OF 1986, AS AMENDED.  THE

TRANSFER AGENT FOR THE SHARES EVIDENCED HEREBY SHALL NOTIFY THE CORPORATION

IMMEDIATELY OF ANY TRANSFER OF THE SHARES BY THE REGISTERED HOLDER HEREOF.  THE REGISTERED HOLDER SHALL HOLD ALL SHARES

PURCHASED UNDER THE PLAN IN THE REGISTERED HOLDER’S NAME (AND NOT IN THE NAME

OF ANY NOMINEE).”

19.           NOTIFICATION OF DISPOSITION OF SHARES.

The Company may require the Participant to give the

Company prompt notice of any disposition of shares acquired by exercise of a

Purchase Right.  The Company may require

that until such time as a Participant disposes of shares acquired upon exercise

of a Purchase Right, the Participant shall hold all such shares in the

Participant’s name (or, if elected by the Participant, in the name of the

Participant and his or her spouse but not in the name of any nominee) until the

later of two years after the date of grant of such Purchase Right or one year

after the date of exercise of such Purchase Right..  The Company may direct that the certificates evidencing shares

acquired by exercise of a Purchase Right refer to such requirement to give

prompt notice of disposition.

20.           DESIGNATION OF BENEFICIARY.

20.1         Designation Procedure.  A Participant may file a written designation

of a beneficiary who is to receive (a) shares and cash, if any, from the

Participant’s Plan account if the Participant dies subsequent to a Purchase

Date but prior to delivery to the Participant of such shares and cash or (b)

cash, if any, from the Participant’s Plan account if the Participant dies prior

to the exercise of the Participant’s Purchase Right.  If a married Participant designates a beneficiary other than the

Participant’s spouse, the effectiveness of such designation shall be subject to

the consent of the Participant’s spouse. 

A Participant may change his or her beneficiary designation at any time

by written notice to the Company.

20.2         Absence of Beneficiary Designation.  If a Participant dies without an effective

designation pursuant to Section 20.1 of a beneficiary who is living at the time

of the Participant’s death, the Company shall deliver any shares or cash

credited to the Participant’s Plan account to the Participant’s legal

representative.

21.           NOTICES.

All notices or other communications by a Participant

to the Company under or in connection with the Plan shall be deemed to have

been duly given when received in the form specified by the Company at the

location, or by the person, designated by the Company for the receipt thereof.

22.           AMENDMENT OR TERMINATION OF THE PLAN.

The Board may at any time amend or terminate the Plan,

except that (a) no such amendment or termination shall affect Purchase

Rights previously granted under the Plan unless expressly provided by the Board

and (b) no such amendment or termination may adversely affect a Purchase

Right previously granted under the Plan without the consent of the Participant,

except to the extent permitted by the Plan or as may be necessary to qualify

the Plan as an employee stock purchase plan pursuant to Section 423 of the

Code or to comply with any applicable law, regulation or rule.  In addition, an amendment to the Plan must

be approved by the stockholders of the Company within twelve (12) months of the

adoption of such amendment if such amendment would authorize the sale of more

shares than are then authorized for issuance under the Plan or would change the

definition of the corporations that may be designated by the Board as

Participating Companies.

IN WITNESS WHEREOF, the undersigned Secretary of the

Company certifies that the foregoing Fresh Choice, Inc. 2001 Employee Stock

Purchase Plan was duly adopted by the Board of Directors of the Company on

February 21, 2001.

 

 

 

	

   

  	

  /S/ Joan M. Miller

  
	

   

  	

  Secretary

  

 

 

 

PLAN

HISTORY

	

  February 21, 2001

  	

   

  	

  Board of Fresh Choice,

  Inc., a Delaware corporation, adopts Plan, with an initial reserve of 290,000

  shares.

  
	

   

  	

   

  	

   

  
	

  May 24, 2001

  	

   

  	

  Stockholders of Fresh

  Choice, Inc. approve the Plan.

  
	

   

  	

   

  	

   

  
	

  December 3, 2001

  	

   

  	

  Effective Date (i.e.,

  date on which initial Offering Period commenced).Prepared by MERRILL CORPORATION

Exhibit 10.47

 

SECOND AMENDED AND

RESTATED

 

FRESH CHOICE, INC.

 

1988 STOCK OPTION

PLAN

 

(As Amended

Through July 12, 2001)

 

 

1.         Purpose.  The Fresh Choice, Inc. 1988 Stock Option

Plan (the “Initial Plan”) was adopted on February 28, 1989.  The Initial Plan was amended from time to

time and then subsequently amended and restated effective as of September 25,

1992 (the “Prior Plan”).  The Prior Plan

is hereby amended and restated on March 20, 1993 in its entirety (the

“Plan”) to establish a program of automatic option grants to certain

individuals who are members of the Board of Directors of Fresh Choice, Inc. who

are not employees of Fresh Choice, Inc. 

The Plan is established to create additional incentive for key employees,

directors and consultants of Fresh Choice, Inc., a Delaware corporation, and

any successor corporation thereto (collectively referred to as the “Company”),

and any present or future parent and/or subsidiary corporations of such

corporation (all of whom along with the Company being individually referred to

as a “Participating Company” and collectively referred to as the “Participating

Company Group”), to promote the financial success and progress of the

Participating Company Group.  For

purposes of the Plan, a parent corporation and a subsidiary corporation shall

be as defined in sections 424(e) and 424(f) of the Internal Revenue Code of

1986, as amended (the “Code”).

2.         Administration.

(a)     Administration

by Board and/or Committee.  The Plan

shall be administered by the Board of Directors of the Company (the “Board”)

and/or by a duly appointed committee of the Board having such powers as shall

be specified by the Board.  Any

subsequent references herein to the Board shall also mean the committee if such

committee has been appointed and, unless the powers of the committee have been

specifically limited, the committee shall have all of the powers of the Board

granted herein, including, without limitation, the power to terminate or amend

the Plan at any time, subject to the terms of the Plan and any applicable

limitations imposed by law.  All

questions of interpretation of the Plan or of any options granted under the

Plan (an “Option”) shall be determined by the Board, and such determinations

shall be final and binding upon all persons having an interest in the Plan

and/or any Option.

(b)     Limitation

of Authority With Respect to Director Options.  Notwithstanding any provision herein to the contrary, the Board

shall have no authority, discretion, or power to select the Eligible Directors

(as defined in paragraph 9 below) of the Company who will receive Director

Options (as defined in paragraph 9 below) under the Plan, to set the exercise

price of Director Options granted under the Plan, to determine the number of

shares of Stock to be granted under a Director Option or the time at which such

options are to be granted, to establish the duration of Director Options, or

alter any other terms or conditions specified in the Plan with respect to

Director Options, except in the sense of administering the Plan subject to the

provisions of the Plan.

(c)     Options

Authorized.  Options may be either

incentive stock options as defined in section 422 of the Code (“Incentive Stock

Options”) or nonqualified stock options.

(d)     Authority

of Officers.  Any officer of a Participating

Company shall have the authority to act on behalf of the Company with respect

to any matter, right, obligation, or election which is the responsibility of or

which is allocated to the Company herein, provided the officer has apparent

authority with respect to such matter, right, obligation, or election.

(e)     Disinterested

Administration.  With respect to the

participation in the Plan of employees who are also officers or directors of

the Company subject to Section 16 of the Securities Exchange Act of 1934, as

amended (the “Exchange Act”), the Plan shall be administered by the Board in

compliance with the “disinterested administration” requirement of Rule 16b–3,

as promulgated under the Exchange Act and amended from time to time or any

successor rule or regulation (“Rule 16b-3”).

(f)      Compliance

with Section 162(m) of the Code.  In

the event a Participating Company is a “publicly held corporation” as defined

in paragraph (2) of section 162(m) of the Code, as amended by the Revenue

Reconciliation Act of 1993 (P.L. 103-66), and the regulations promulgated

thereunder (“Section 162(m)”), the Company may establish a committee of outside

directors meeting the requirements of paragraph 4(C)(i) of Section 162(m) to

approve the grant of Options which might reasonably be anticipated to result in

the payment of employee remuneration that would otherwise exceed the limit on

employee remuneration deductible for income tax purposes pursuant to Section

162(m).

3.         Eligibility.  The Options may be granted only to full-time

employees (including officers) and directors of the Participating Company Group

or to individuals who are rendering services as consultants or other

independent contractors to the Participating Company Group.  Except as provided in paragraph 2(b)

above, the Board shall, in the Board’s sole discretion, determine which persons

shall be granted Options (an “Optionee”). 

A director of the Company shall be eligible to be granted only a

nonqualified stock option unless the director is also an employee of the

Company.  Furthermore, a director of the

Company who is not an employee of the Company shall be eligible to be granted

only a Director Option (as defined below) under the terms set forth in

paragraph 9 below.  An individual

who is rendering services as a consultant or other independent contractor shall

be eligible to be granted only a nonqualified stock option.  An Optionee may, if otherwise eligible, be

granted additional Options.

 

4.         Shares

Subject to Option.  Options shall be

for the purchase of shares of the authorized but unissued common stock or

treasury shares of common stock of the Company (the “Stock”), subject to

adjustment as provided in paragraph 11 below.  The maximum number of shares of Stock which may be issued under

the Plan shall be One Million Five Hundred Thousand (1,500,000) shares.  Subject to adjustment as provided in

paragraph 11 below, at any such time as a Participating Company is a

“publicly held corporation” as defined in paragraph 2 of

Section 162(m), no person shall be granted within any fiscal year of the

Company Options which in the aggregate cover more than One Hundred Thousand

(100,000) shares (the “Per Optionee Limit”). 

In the event that any outstanding Option for any reason expires or is

terminated or cancelled and/or shares of Stock subject to repurchase are

repurchased by the Company, the shares allocable to the unexercised portion of

such Option, or such repurchased shares, may again be subjected to an

Option.  Notwithstanding the foregoing,

any such shares shall be made subject to a new Option only if the grant of such

new Option and the issuance of such shares pursuant to such new Option would

not cause the Plan or any Option granted under the Plan to contravene Rule

16b-3.

 

5.         Time

for Granting Options.  All Options shall

be granted, if at all, by February 28, 2009; provided, however, that all

Incentive Stock Options shall be granted, if at all, by February 29, 2008.

6.         Terms,

Conditions and Form of Options Which Are Not Director Options.  Subject to the provisions of the Plan, the

Board shall determine for each Option which is not a Director Option (which

need not be identical) the number of shares of Stock for which the Option shall

be granted, the exercise price of the Option, the exercisability of the Option,

whether the Option is to be treated as an Incentive Stock Option or as a

nonqualified stock option and all other terms and conditions of the Option not

inconsistent with the Plan.  Options

granted pursuant to the Plan shall be evidenced by written agreements specifying

the number of shares of Stock covered thereby, in such form as the Board shall

from time to time establish, and shall comply with and be subject to the

following terms and conditions:

(a)     Exercise

Price.  The exercise price for each

Option shall be established in the sole discretion of the Board; provided,

however, that (i) the exercise price per share for an Incentive Stock

Option shall be not less than the fair market value, as determined by the

Board, of a share of Stock on the date of the granting of the Option,

(ii) the exercise price per share for a nonqualified stock option shall

not be less than eighty-five percent (85%) of the fair market value, as

determined by the Board, of a share of Stock on the date of the granting of the

Option and (iii) no Incentive Stock Option granted to an Optionee who at

the time the Option is granted owns stock possessing more than ten percent

(10%) of the total combined voting power of all classes of stock of a

Participating Company within the meaning of section 422(b)(6) of the Code (a

“Ten Percent Owner Optionee”) shall have an exercise price per share less than

one hundred ten percent (110%) of the fair market value of a share of Stock on

the date the Option is granted. 

Notwithstanding the foregoing, an Option (whether an Incentive Stock

Option or a nonqualified stock option) may be granted with an exercise price

lower than the minimum exercise price set forth above if such Option is granted

pursuant to an assumption or substitution for another option in a manner

qualifying with the provisions of section 424(a) of the Code.

(b)     Exercise

Period of Options.  The Board shall

have the power to set the time or times within which each Option shall be

exercisable or the event or events upon the occurrence of which all or a

portion of each Option shall be exercisable and the term of each Option;

provided, however, that (i) no Incentive Stock Option shall be exercisable

after the expiration of ten (10) years after the date such Option is granted,

(ii) no nonqualified stock option shall be exercisable after the

expiration of ten (10) years and one (1) month after the date such Option is

granted and (iii) no Incentive Stock Option granted to a Ten Percent Owner

Optionee shall be exercisable after the expiration of five (5) years after the

date such Option is granted.

(c)     Payment

of Exercise Price.  Payment of the

exercise price for the number of shares of Stock being purchased pursuant to

any Option shall be made (i) in cash, by check, or cash equivalent,

(ii) by tender to the Company of shares of the Company’s stock owned by

the Optionee having a value, as determined by the Board (but without regard to

any restrictions on transferability applicable to such stock by reason of

federal or state securities laws or agreements with an underwriter for the

Company), not less than the exercise price, (iii) by the Optionee’s

recourse promissory note, (iv) by the assignment of the proceeds of a sale

of some or all of the shares being acquired upon the exercise of an Option, or

(v) by any combination thereof. 

The Board may at any time or from time to time, by adoption of or by

amendment to either of the standard forms of stock option agreement described

in paragraph 7 below, or by other means, grant Options which do not permit

all of the foregoing forms of consideration to be used in payment of the

exercise price and/or which otherwise restrict one (1) or more forms of

consideration.  Notwithstanding the

foregoing, an Option may not be exercised by tender to the Company of shares of

the Company’s stock to the extent such tender of stock would constitute a

violation of the provisions of any law, regulation and/or agreement restricting

the redemption of the Company’s stock. 

Furthermore, no promissory note shall be permitted if an exercise using

a promissory note would be a violation of any law.  Any permitted promissory note shall be due and payable not more

than five (5) years after the Option is exercised, and interest shall be

payable at least annually and be at least equal to the minimum interest rate

necessary to avoid imputed interest pursuant to all applicable sections of the

Code.  The Board shall have the

authority to permit or require the Optionee to secure any promissory note used

to exercise an Option with the shares of Stock acquired on exercise of the

Option and/or with other collateral acceptable to the Company.  The Company reserves, at any and all times,

the right, in the Company’s sole and absolute discretion, to establish, decline

to approve and/or terminate any program and/or procedures for the exercise of

Options by means of an assignment of the proceeds of a sale of some or all of

the shares of Stock to be acquired upon such exercise.

7.         Standard

Forms of Stock Option Agreement for Options Which Are Not Director Options.

(a)     Incentive

Stock Options.  Unless otherwise

provided for by the Board at the time an Option is granted, an Option

designated by the Board as an “Incentive Stock Option” shall comply with and be

subject to the terms and conditions set forth in the form of incentive stock

option agreement attached hereto as Exhibit A and incorporated

herein by reference.

(b)     Nonqualified

Stock Options.  Unless otherwise

provided for by the Board at the time an Option is granted or unless the Option

is a Director Option, an Option designated by the Board as a “Nonqualified

Stock Option” shall comply with and be subject to the terms and agreement

attached hereto as Exhibit B and incorporated herein by reference.

(c)     Standard

Term for Options.  Unless otherwise

provided for by the Board in the grant of an Option and under the terms of the

Plan, any Incentive Stock Option granted hereunder shall be exercisable for a

term of ten (10) years and any nonqualified stock option granted hereunder

shall be exercisable for a term of ten (10) years and one (1) month.

 

8.         Authority

to Vary Terms.  The Board shall have

the authority from time to time to vary the terms of either of the standard

forms of stock option agreement described in paragraph 7 above either in

connection with the grant of an individual Option or in connection with the

authorization of a new standard form or forms; provided, however, that the

terms and conditions of such revised or amended standard form or forms of

agreements shall be in accordance with the terms of the Plan.  Such authority shall include, but not by way

of limitation, the authority to grant Options which are not immediately

exercisable.

9.         Terms,

Conditions and Form of Director Options. 

The terms and conditions of an Option granted to an Eligible Director (a

“Director Option”) shall be as set forth below.  Director Options granted pursuant to the Plan shall be evidenced

by written agreements specifying the number of shares of Stock covered thereby,

in substantially the form attached hereto as Exhibit C, which written

agreement may incorporate all or any of the terms of the Plan by reference and

shall comply with and be subject to the following terms and conditions:

(a)     Eligible

Directors.  A member of the Board of

Directors of the Company who is not an employee of the Company and who is not

an individual who performs services, whether as an employee, partner,

principal, sole proprietor, director, trustee, independent contractor, or

consultant for any entity which owns more than 5% of the total combined voting

power of all classes of stock of the Company is eligible to receive one or more

Director Options (“Eligible Director”). 

No member of the Company’s Board of Directors who is not an employee of

the Company is eligible to receive the grant of an option under the Plan except

under the terms of this paragraph 9.

(b)     Shares

Subject to a Director Option.  The

number of shares of Stock subject to the initial grant to an Eligible Director

shall be the number of shares of Stock equal to $100,000 divided by the fair

market value of the Stock on the date of the grant of the option, rounded to

the nearest whole share of Stock, up to a maximum of Ten Thousand (10,000)

shares of Stock.  Each Eligible Director

shall also be entitled to an annual grant with the number of shares of Stock

subject to such Director Option equal to $50,000 divided by the fair market

value of the Stock on the date of the option grant, rounded to the nearest

whole share of Stock, up to a maximum of Three Thousand (3,000) shares of

Stock.  The number of shares of Stock

subject to the first annual grant to an Eligible Director who has not served as

a director of the Company for the full twelve–month period preceding the

date of grant of that Director Option shall be pro rated to reflect the actual period

of time during that year actually served as a director, rounded to the nearest

whole share of Stock.

(c)     Timing

of Automatic Grants of Director Options. 

The initial grant of a Director Option to an Eligible Director who has

not previously received the grant of an Option under the Plan shall occur on

the later of (i) the date that the stockholders of the Company approve the

provisions of this paragraph 9, or (ii) the date that an individual

becomes an Eligible Director.  The

annual grant of a Director Option shall be made automatically to all those

Eligible Directors continuing to serve as directors of the Company on the

following dates: (i) the date that the stockholders of the Company approve

the provisions of this paragraph 9, and (ii) the date of the Company’s

meeting of the Board of Directors in the month of December, beginning with

December 1993, and if no meeting of the Board of Directors is held in the

month of December, the date of grant shall be December 15.  The grant shall occur automatically without

the need for any action by the Board of Directors of the Company or any other

body.

 

(d)     Election

to Decline Director Option. 

Notwithstanding the foregoing, any Eligible Director may elect not to

receive a Director Option granted pursuant to this paragraph 9 by delivering

written notice of such election to the Board (i) in the case of a person

who is not, prior to the date on which a Director Option would otherwise be

granted to such person, subject to the provisions of Section 16 of the Exchange

Act with respect to the equity securities of the Company, no later than the

date preceding the date on which the Director Option would otherwise be

granted, or (2) in any other case, no later than six (6) months prior to

the date on which the Director Option would otherwise be granted.

(e)     Type

of Options for Tax Purposes.  All

Director Options shall be nonqualified stock options.

(f)      Exercise

Price.  All Director Options shall

be granted with an exercise price per share of Stock equal to 100% of the fair

market value of a share of Stock on the date of grant.  For purposes of this paragraph 9(f), where

there is a public market for the Stock, the fair market value per share of

Stock shall be the mean of the bid and asked prices of the Stock on the date of

the granting of the Director Option, as reported in the Wall Street Journal

(or, if not so reported, as otherwise reported by the National Association of

Securities Dealers Automated Quotation (“NASDAQ”) system) or, in the event the

Stock is listed on the NASDAQ National Market System or a national or regional

securities exchange, the fair market value per share of Stock shall be the

closing price on such National Market System or exchange constituting the

primary market for the Stock on the date of the granting of the Director

Option, as reported in the Wall Street Journal.  If the date of the granting of a Director Option does not fall on

a day on which the Stock is trading on NASDAQ, the NASDAQ National Market System

or other national or regional securities exchange, the date on which the

Director Option exercise price per share shall be established shall be the last

day on which the Stock was so traded prior to the date of the granting of the

Director Option.

(g)     Payment

of Exercise Price.  All shares of the

Stock acquired upon the exercise of a Director Option may be paid for with

(i) cash, a check, or cash equivalent, (ii) shares of the Company’s stock

owned by the Eligible Director exercising a Director Option having a value not

less than the exercise price, (iii) if such an arrangement would not

subject the Eligible Director to short–swing trading profits liability

under section 16(b) of the Securities Exchange Act of 1934, as amended (the

“Exchange Act”), the assignment of proceeds to the Company from the immediate

sale of the shares acquired upon exercise of the Director Option, or (iv) by

any combination thereof. 

Notwithstanding the foregoing, a Director Option may not be exercised by

tender to the Company of shares of the Company’s stock to the extent such

tender of stock would constitute a violation of the provisions of any law,

regulation and/or agreement restricting the redemption of the Company’s

stock.  Furthermore, the Company

reserves, at any and all times, the right, in the Company’s sole and absolute

discretion, to establish, decline to approve and/or terminate any program

and/or procedures for the exercise of Director Options by means of an

assignment of the proceeds of a sale of some or all of the shares of Stock to

be acquired upon such exercise.

 

(h)     Vesting

of Director Options.  The shares of

Stock subject to a Director Option may only be acquired by the Eligible

Director who is granted such Director Option to the extent such shares of Stock

are Vested Shares.  The shares of Stock

subject to a Director Option become Vested Shares as follows:  1/5th of the total number of shares of Stock

subject to a Director Option become Vested Shares one year after the date such

option was granted (the “Initial Vesting Date”), provided that the Eligible

Director has served continuously as a director of the Company from the date of

grant of such Director Option to the Initial Vesting Date, and an additional

1/60th of the total number of shares of Stock subject to a Director Option

become Vested Shares for each full calendar month of continuous service by the

Eligible Director as a director following the Initial Vesting Date.  In no event shall the calculation of the

number of Vested Shares under a Director Option exceed the number of shares of

Stock subject to such Director Option. 

Notwithstanding the foregoing, in the event of a Transfer of Control as

defined in paragraph 12 below, all shares of Stock subject to an

outstanding Director Option shall become Vested Shares immediately prior to the

time of such Transfer of Control.  Any

Director Option which is not exercised as of the date of the Transfer of

Control shall terminate and cease to be outstanding effective as of the date of

the Transfer of Control.

(i)      Exercise

Period of Director Options.  All

Director Options shall be exercisable only as to Vested Shares for a period of

10 years from the date of grant of the Director Option, subject to earlier

termination in the event that (i) the individual ceases to serve as a member of

the Board of Directors of the Company under the terms set forth in the

agreement between the Company and the Eligible Director documenting the

Director Option or (ii) a Transfer of Control occurs with respect to the

Company.

(j)      Authority

to Establish Additional Terms and Standard Forms of Agreement.  The Board shall have the authority from time

to time in connection with the grant or amendment of Director Options to

establish additional terms and conditions for the grant of such options and to

approve one or more standard forms of agreement between an Eligible Director

and the Company documenting the terms of a Director Option; provided, however,

that such additional terms and conditions and such standard forms of agreement

must be in accordance with the provisions set forth in this paragraph 9

and of the Plan in general.

10.       Fair

Market Value Limitation.  To the

extent that the aggregate fair market value (determined at the time the Option

is granted) of stock with respect to which Incentive Stock Options are

exercisable by an Optionee for the first time during any calendar year (under

all stock option plans of the Company, including the Plan) exceeds One Hundred

Thousand Dollars ($100,000) (the “fair market value limitation”), such options

shall be treated as nonqualified stock options.  This paragraph shall be applied by taking Incentive Stock Options

into account in the order in which they were granted.  In the event of an amendment to section 422 of the Code, the

Board shall have the authority to amend this paragraph 10 to make this

provision no more restrictive to the Optionee than necessary to insure

qualification of the Incentive Stock Option as meeting the requirements of

section 422 of the Code, as amended.  In

the event an Optionee receives an Option intended to be an Incentive Stock

Option which is subsequently determined to have exceeded the fair market value

limitation, the Option shall be amended, if necessary, in accordance with

applicable Treasury Regulations and rulings to preserve, as the first priority,

to the maximum possible extent, the status of the Option as an Incentive Stock

Option and to preserve, as a second priority, to the maximum possible extent,

the total number of shares of Stock subject to the Option.  The foregoing provision shall apply only to

Incentive Stock Options and shall not apply to an Option which has been

designated as a nonqualified stock option.

 

11.       Effect

of Change in Stock Subject to Plan. 

Appropriate adjustments shall be made in the number and class of shares

of Stock subject to the Plan, to the Per Optionee Limit in paragraph 4 above,

to Director Options pursuant to paragraph 9(b) above, and to any

outstanding Options and in the exercise price of any outstanding Options in the

event of a stock dividend, stock split, recapitalization, reverse stock split,

combination, reclassification, or like change in the capital structure of the

Company.

12.       Transfer

of Control and Hostile Takeover.

(a)     A

“Transfer of Control” shall be deemed to have occurred in the event any of the

following occurs with respect to the Control Company.  For purposes of applying this paragraph 12, the “Control

Company” shall mean the Participating Company whose stock is subject to the

Option.

(i)    the direct

or indirect sale or exchange by the stockholders of the Control Company of all

or substantially all of the stock of the Control Company where the stockholders

of the Control Company before such sale or exchange do not retain, directly or

indirectly, at least a majority of the beneficial interest in the voting stock

of the Control Company;

(ii)   a merger

in which the stockholders of the Control Company before such merger do not

retain, directly or indirectly, at least a majority of the beneficial interest

in the voting stock of the Control Company; or

(iii)  the sale,

exchange, or transfer (including, without limitation, pursuant to a liquidation

or dissolution) of all or substantially all of the Control Company’s assets

(other than a sale, exchange, or transfer to one (1) or more corporations where

the stockholders of the Control Company before such sale, exchange, or transfer

retain, directly or indirectly, at least a majority of the beneficial interest

in the voting stock of the corporation(s) to which the assets were

transferred).

              In the event of a Transfer of Control, the Board, in

its sole discretion, may arrange with the surviving, continuing, successor, or

purchasing corporation, as the case may be (the “Acquiring Corporation”), for

the Acquiring Corporation to either assume the Company’s rights and obligations

under outstanding stock option agreements or substitute options for the

Acquiring Corporation’s stock for such outstanding Options.  Any Options which are neither assumed or

substituted for by the Acquiring Corporation nor exercised as of the date of

the Transfer of Control shall terminate and cease to be outstanding effective

as of the date of the Transfer of Control.

 

(b)     A

“Hostile Takeover” shall mean the occurrence of the following:

(i)    during any

period of two (2) consecutive years beginning on or after the date hereof, the

persons who were members of the Board immediately before the beginning of such

period (the “Incumbent Directors”) cease (for any reason other than death) to

constitute at least a majority of the Board or the board of directors of any successor

to the Company, provided that, any director who was not a director as of the

date hereof shall be deemed to be an Incumbent Director if such director was

elected to the Board by, or on the recommendation of or with the approval of,

at least two-thirds of the directors who then qualified as Incumbent Directors

either actually or by prior operation of the foregoing unless such election,

recommendation or approval occurs as a result of an actual or threatened

election contest or other actual or threatened solicitation of proxies or

contests by or on behalf of a person other than a member of the Board; or

 

(ii)   any person

(as defined in Section 3(a)(9) of the Exchange Act and as used in

Sections 13(d) and 14(d) thereof), excluding the Company, any subsidiary

of the Company and any employee benefit plan sponsored or maintained by the

Company or any subsidiary of the Company (including any trustee of any such

plan acting in his capacity as trustee), becomes the “beneficial owner” (as

defined in Rule 13d-3 under the Exchange Act) of securities of the Company

representing thirty percent (30%) of the total combined voting power of the

Company’s then outstanding securities other than pursuant to a transaction

approved by at least two-thirds of the directors who then qualify as Incumbent

Directors.

              In the event of a Hostile Takeover, each outstanding

Option shall become immediately vested and exercisable in full effective

immediately prior to the consummation of the Hostile Takeover.

 

13.       Provision

of Information.  At least annually,

copies of the Company’s balance sheet and income statement for the just

completed fiscal year shall be made available to each Optionee and purchaser of

shares of Stock upon the exercise of an Option.  The Company shall not be required to provide such information to

persons whose duties in connection with the Company assure them access to

equivalent information.  Each Optionee

shall be given access to information concerning the Company equivalent to that

information generally made available to the Company’s common stockholders.

14.       Options

Non-Transferable.  During the

lifetime of the Optionee, the Option shall be exercisable only by the

Optionee.  No Option shall be assignable

or transferable by the Optionee, except by will or by the laws of descent and

distribution.

15.       Transfer

of Company’s Rights.  In the event

any Participating Company assigns, other than by operation of law, to a third

person, other than another Participating Company, any of the Participating

Company’s rights to repurchase any shares of Stock acquired on the exercise of

an Option, the assignee shall pay to the assigning Participating Company the

value of such right as determined by the Company in the Company’s sole

discretion.  Such consideration shall be

in such form, including, without limitation, the performance of future

services, as the Company shall determine in the Company’s sole discretion.  In the event such repurchase right is

exercisable at the time of such assignment, the value of such right shall be

not less than the fair market value of the shares of Stock which may be

repurchased under such right (as determined by the Company) minus the

repurchase price of such shares.  The

requirements of this paragraph 15 regarding the minimum consideration to

be received by the assigning Participating Company shall not inure to the

benefit of the Optionee whose shares of Stock are being repurchased.  Failure of a Participating Company to comply

with the provisions of this paragraph 15 shall not constitute a defense or

otherwise prevent the exercise of the repurchase right by the assignee of such

right.

 

16.       Termination

or Amendment of Plan or Option.  The

Board, including any duly appointed committee of the Board, may terminate or

amend the Plan or an Option granted under the Plan at any time; provided,

however, that without the approval of the Company’s stockholders, there shall

be (a) no increase in the total number of shares of Stock covered by the

Plan (except by operation of the provisions of paragraph 11 above), (b) no

change in the class of persons eligible to receive Incentive Stock Options,

(c) no expansion in the class of persons eligible to receive nonqualified

stock options, and (d) no amendment to the Plan or an Option which in the

opinion of the Board would cause the Plan to cease to comply with the

requirements of Rule 16b–3. 

Furthermore, the provisions of the Plan addressing eligibility for

Director Options and the amount, price and timing of grants of Director Options

shall not be amended more than once every six (6) months, other than to comport

to changes in the Code, or the regulations thereunder.  In any event, no amendment may adversely

affect any then outstanding Option or any unexercised portion thereof, without

the consent of the Optionee, unless such amendment is required to enable an

Option designated as an Incentive Stock Option to qualify as an Incentive Stock

Option.

17.       Continuation

of Initial Plan and Prior Plan. 

Notwithstanding any other provision of the Plan to the contrary, the

terms of the Initial Plan and Prior Plan shall remain in effect and apply to

Options granted pursuant to the Initial Plan and Prior Plan, respectively.

IN WITNESS WHEREOF, the undersigned Secretary of the

Company certifies that the foregoing is the Second Amended and Restated Fresh

Choice, Inc. 1988 Stock Option Plan as duly adopted by the Board on March

24, 1993 and amended through July 12, 2001.

 

	

   

  	

   

  	

   

  	

   

  	

  /S/  Joan M. Miller

  
	

   

  	

   

  	

   

  	

   

  	

  Secretary

  

 

 

Plan History

 

	

  February 28, 1989

  	

   

  	

  Board of predecessor

  California corporation adopts Plan with share reserve of 1,000,070 shares.

  
	

   

  	

   

  	

   

  
	

  November 1, 1989

  	

   

  	

  Shareholders of predecessor corporation approve Plan

  with share reserve of 1,000,070 shares.

  
	

   

  	

   

  	

   

  
	

  November 19, 1990

  	

   

  	

  Board of predecessor corporation amends Plan to

  increase share reserve to 1,107,564 shares.

  
	

   

  	

   

  	

   

  
	

  December 21, 1990

  	

   

  	

  Shareholders of predecessor corporation approve

  share reserve increase to 1,107,564 shares.

  
	

   

  	

   

  	

   

  
	

  September     , 1992

  	

   

  	

  Board of predecessor corporation amends Plan to

  increase share reserve to 2,152,656 shares.

  
	

   

  	

   

  	

   

  
	

  December 4, 1992

  	

   

  	

  Shareholders of predecessor corporation approve

  share reserve increase to 2,152,656 shares.

  
	

   

  	

   

  	

   

  
	

  December 4, 1992

  	

   

  	

  Share exchange of 1-for-4.1525 in connection with

  Delaware reincorporation results in share reserve of 518,400 shares.

  
	

   

  	

   

  	

   

  
	

  March 20, 1993

  	

   

  	

  Board amends and restates Plan as Second Amended and

  Restated 1988 Stock Option Plan to include a program of automatic option

  grants to non-employee directors intended to constitute a formula grant plan

  described in Rule 16b-3(c)(2)(ii) under the Exchange Act.

  
	

   

  	

   

  	

   

  
	

  May 24, 1993

  	

   

  	

  Stockholders approve Second Amended and Restated

  1988 Stock Option Plan.

  
	

   

  	

   

  	

   

  
	

  March 18, 1994

  	

   

  	

  Board amends Plan to (1) increase share reserve

  to 800,000 shares, (2) add Per Optionee Limit comporting with

  Section 162(m) of the Internal Revenue Code, (3) add provisions

  comporting with new Rule 16b–3 in anticipation of election to

  comply with such rule, and (4) make certain other desirable revisions as

  appropriate for a publicly traded Delaware corporation.

  
	

   

  	

   

  	

   

  
	

  May 24, 1994

  	

   

  	

  Stockholders approve foregoing amendments and share

  reserve increase to 800,000 shares.

  
	

   

  	

   

  	

   

  
	

  March 14, 1996

  	

   

  	

  Board amends Plan to (1) increase share reserve to

  1,500,000 shares and (2) limit the grants to non-employee Directors thereunder

  to a number of shares equal to $100,000 divided by the fair market value on

  the date of grant, up to a maximum of 10,000 shares for an initial grant, and

  to a number of shares equal to $50,000 divided by the fair market value on

  the date of grant, up to a maximum of 3,000 shares for the annual grants

  thereafter

  
	

   

  	

   

  	

   

  
	

  August 28, 1996

  	

   

  	

  Stockholders approve foregoing amendments and share

  reserve increase to 1,500,000 shares.

  
	

   

  	

   

  	

   

  
	

  March 31, 1998

  	

   

  	

  Board amends Plan to extend term until February 28,

  2009.

  
	

   

  	

   

  	

   

  
	

  May 21, 1998

  	

   

  	

  Stockholders approve amendment to extend the term of

  the Plan.

  
	

   

  	

   

  	

   

  
	

  July 12, 2001

  	

   

  	

  Board amends Plan to include Hostile Takeover

  provision as Section 12(b)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00030-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00030-of-00352.parquet"}]]