Document:

Exhibit 10.3

 

 

FAMILY DOLLAR STORES, INC.

 

2006 INCENTIVE PLAN

 

2006 Non-Qualified Stock Option Grant Program

 

1.                                      Purpose

 

Family Dollar
Stores, Inc. (together with its Affiliates, the “Company”) is adopting for
the benefit of eligible individuals the Family Dollar Stores, Inc. 2006
Incentive Plan (the “Plan”), which
is intended to provide flexibility to the Company in its ability to motivate,
attract, and retain the services of such individuals upon whose judgment,
interest, and special effort the successful conduct of the Company’s operation
is largely dependent.  The terms and
provisions of the 2006 Non-Qualified Stock Option Grant Program (the “2006
Option Program Terms”) have been approved by the Compensation Committee of the
Board of Directors of the Company (the “Compensation Committee”) to establish
the terms and provision applicable to all awards of an option (the “Option”) and
shall be applicable to all awards to purchase Common Stock of the Company
pursuant to the provisions of the Plan, subject to the adoption by the
Compensation Committee of other terms and provisions for the award of Options.

 

The 2006
Option Program Terms are adopted pursuant to relevant provisions of the Plan
and are to be interpreted and applied in accordance with the terms and
provisions thereof.  Specifically, the 2006
Option Program Terms provide for the grant of Options under Article 7 of
the Plan and, with respect to Associates in the position of Vice President or
above, the grant of Qualified Performance-Based Awards under Article 14 of
the Plan.  Unless otherwise provided
herein, capitalized terms used in these 2006 Option Program Terms will have the
meaning given such terms in the Plan.  If
there is any conflict between these 2006 Option Program Terms and the Plan, the
terms and provisions of the Plan shall control.

 

2.                                      Eligibility

 

The Compensation Committee of the Board (the “Committee”)
or, if the Committee so delegates such authority, the Equity Award Committee of
the Company, will determine annually which Associates are eligible to receive
Options under these 2006 Option Program Terms.

 

 

3.                                      Vesting
Provisions

 

Each Option
shall vest and become exercisable in three (3) annual installments
commencing two years from the Grant Date if the Associate remains employed with
the Company through each of the vesting dates as follows:

 

	
  Vesting Date

  	
   

  	
  Maximum Percentage of Option
  Shares

  that Are Exercisable

  
	
   

  	
   

  	
   

  
	
  2nd anniversary of Grant Date

  	
   

  	
  Forty Percent (40%)

  
	
  3rd anniversary of Grant Date

  	
   

  	
  Seventy Percent (70%)

  
	
  4th anniversary of Grant Date

  	
   

  	
  One Hundred Percent (100%)

  

 

The right to purchase Shares pursuant to the Option shall be cumulative
so that when the right to purchase additional Shares has vested pursuant to the
schedule set forth above, such Shares or any part thereof may be purchased
thereafter until the expiration of the Option.

 

4.             Effect
of Termination of Employment on Vesting.

 

Termination of employment with the Company will affect the vesting of
the Option depending on the reason for termination as follows:

 

•                  Death
or Disability:  The Option shall
become fully (100%) vested as of the date of the Associate’s death or
Disability.

•                  Qualifying Retirement:  If
an Associate ceases to be an employee of the Company due to a “Qualifying Retirement”
from employment, Options granted to and held by the Associate at the date of
such retirement shall continue to vest and be exercisable in accordance with
the terms of the Plan and as set forth herein. 
“Qualifying Retirement” shall mean the Associate’s voluntary termination
of employment at age sixty or older after a period of at least ten (10) years
of employment with the Company, or such earlier retirement date as may be
approved by the Committee.  If, at any
time within five (5) years after such Qualifying Retirement and the
receipt of the vesting and extended exercise benefits provided pursuant to this
paragraph, the Associate engages, directly or indirectly, in any of the
following activities: (i) accepting employment with or serving as a
consultant, advisor, officer, director, controlling shareholder or acting in
any other capacity with an entity that is, at the time of such arrangement, in
direct and substantial competition with or acting against the interest of the
Company; (ii) employing or recruiting any person employed by the Company
(or within six months of the termination of such employment) or being recruited
by the Company for employment; (iii) disclosing or misusing any
confidential information or material concerning the Company; or (iv) publicly
disparaging the Company, its officers, directors, or employees; or, if any of
these covenants shall be held invalid or unenforceable by a court, then all
outstanding Options that would otherwise benefit from the vesting or exercise
provisions set forth in this paragraph shall (a) be immediately forfeited
and (b) any gain realized by the 

 

2

 

Associate from
exercising all or a portion of said Options shall be repaid to the Company
within thirty days.

 

•                  Cause:  The Option shall immediately terminate and be
forfeited as of the date of termination of employment for Cause, even if it had
previously vested to any extent pursuant to the foregoing paragraphs prior to
termination of employment.

 

•                  All
Other Terminations: Any portion of the Option that was not already vested
pursuant to paragraph 3 above as of the date of termination of employment shall
terminate and be forfeited as of such date.

 

5.                                      Option
Term.

 

Each Option granted by the Company shall expire on the earlier of
either: (i) the close of business on the fifth anniversary of the Grant Date
of such Option (the “Expiration Date”), as set forth in the applicable Option
Award Agreement; or (ii) the following cancellation date depending on the
reason for termination:

 

	
  Reason for Termination

  	
   

  	
  Cancellation Date

  
	
   

  	
   

  	
   

  
	
  Qualifying Retirement

  	
   

  	
  Expiration Date

  
	
  Death or Disability

  	
   

  	
  15 months from termination date

  
	
  Cause

  	
   

  	
  Termination date

  
	
  All Other Terminations

  	
   

  	
  90 days from termination date

  

 

For purposes of all Options, the employment termination date will be
determined by the Company in its sole discretion based on the personnel records
of the Company.

 

6.                                      Exercise Process.

 

The exercise of an
Option shall be effective only upon compliance with such exercise procedures as
may be established from time to time by the Company and only upon appropriate
arrangement for the tender of payment to the Company on said date of the
purchase price of the number of shares specified to be acquired.  Prior to exercise of an Option, the Associate
shall pay or make adequate arrangements satisfactory to the Company to satisfy
all withholding obligations of the Company.

 

7.                                      Additional
Rules

 

•                  These
2006 Option Program Terms cannot be changed or modified by a verbal
communication or course of dealing but only by a written communication signed
by the Chairman, Vice Chairman, and/or the Chief Executive Officer (“CEO”) of
the Company or any officer designated by one of them.

 

3

 

•                  The
Compensation Committee or the Chairman of the Company, as appropriate, will
make all final decisions, rulings and interpretations under these 2006 Option
Program Terms (subject to the Plan provisions which may require action by the
Committee).  By participating in the Plan
under these 2006 Option Program Terms, each Associate agrees that such
decisions, rulings and interpretations will be final and that each Associate
will be bound by them.  Each Associate
further agrees that if and when any circumstances arise relating to these 2006
Option Program Terms which are not covered by this description of the Plan, the
Associate will be bound by the final decision, ruling or interpretation of the
Chairman and/or the Committee.

 

8.                                      Qualified
Performance-Based Awards

 

Notwithstanding anything in these 2006 Option Program Terms to the
contrary, awards of Options to any Associate who is a Vice President or above
at the time of the award are intended to satisfy the Section 162(m)
Exemption applicable to Qualified Performance-Based Awards under Article 14
of the Plan. All determinations under these 2006 Option Program Terms will be
made by the Committee which, pursuant to Section 4.1 of the Plan, will
consist of all the members of the Compensation Committee who are “outside
directors” within the meaning of Section 162(m) of the Code.

 

4Exhibit 10.12

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(the “Agreement”) is made and entered into this 20th day of January, 2006, by
and between Whitney Education Group, Inc. a Florida Corporation (the “Company”),
and Alfred Novas (the “Employee”).

 

Recitals

 

WHEREAS, Company is in
the business of developing, producing and marketing post secondary educational
curriculum on real estate, business development, financial investment and other
related areas;

 

WHEREAS, Employee has specialized knowledge
and skills in the area of finance & accounting; and

 

WHEREAS, Company is interested in soliciting
Employee’s services and Employee desires to enter into a binding agreement with
Company, in accordance with the terms and conditions set forth below.

 

NOW, THEREFORE, in consideration of the
mutual covenants and promises herein contained, the parties hereby agree as
follows:

 

1.                                      Duties

 

During the term of this Agreement, Employee will be
employed by the Company to serve as Chief Financial Officer.  The Employee will devote such amount of
business time to the conduct of the business of the Company as may be
reasonably required to effectively discharge Employee’s duties under this
Agreement and will perform those duties and have such authority and powers as
are customarily associated with the position of Chief Financial Officer.  Unless the parties agree otherwise in
writing, during the term of this Agreement, Employee may be required to perform
services under this Agreement other than at Company’s principal place of
business in Cape Coral, Florida: provided, however, that Company will,
from time to time, require Employee to travel temporarily to other locations on
the Company’s business necessary to fulfill his obligations as Chief Financial
Officer of the Company. Notwithstanding the foregoing, nothing in this
Agreement is to be construed as prohibiting Employee from continuing to serve
as a director, officer or member of various professional, charitable and civic
organizations in the same manner as immediately prior to the execution of this
Agreement.

 

2.                                      Term of Employment

 

This agreement shall commence on January 20, 2006 and
continue for a period of three (3) years, wherein it shall automatically
expire.

 

2.1                   Definitions

 

For purposes of this Agreement the following terms have the
following meanings:

 

(a) ”Termination for
Cause” means termination by Company of Employee’s employment (i) by reason
of Employee’s willful dishonesty towards, fraud upon, or deliberate injury or
attempted injury to, the Company, (ii) by reason of Employee’s material
breach of this Agreement or (iii) by reason of Employee’s gross negligence
or intentional misconduct with respect to the performance of Employee’s duties
under this Agreement; provided, however, that no such termination will be
deemed to be a Termination for Cause unless the Company has provided Employee
with written notice of what it reasonably believes are the grounds for any
Termination for Cause and Employee fails to take appropriate remedial actions
during the 30 day period following receipt of such written notice.

 

(b) ”Termination
Other than For Cause” means termination by the Company of Employee’s employment
by the Company for reasons other than those which constitute Termination for
Cause.

 

(c) ”Voluntary
Termination” means termination by the Employee of the Employee’s employment
with the Company, excluding termination by reason of Employee’s death or
disability as described in Sections 2.5 and 2.6.

 

2.2                   Basic Term

 

The term of employment of Employee by the Company will commence
on January 20, 2006 and will extend through January 20, 2009.

 

 

2.3                   Termination for Willful
Misconduct

 

Termination for Willful Misconduct may be effected by
Company at any time during the term of this Agreement and may be effected by
written notification to Employee.  Upon
Termination for Willful Misconduct, Employee is to be immediately paid all
accrued salary, incentive compensation to the extent earned, vested deferred
compensation (other than pension plan or profit sharing plan benefits, which
will be paid in accordance with the applicable plan), and accrued vacation pay,
all to the date of termination, but Employee will not be paid any severance
compensation.

 

2.4                   Termination Other Than for
Willful Misconduct

 

Notwithstanding anything else in this Agreement, Company
may effect a Termination Other Than for Willful Misconduct at any time upon
giving notice to Employee of such termination. 
Upon any Termination Other Than for Willful Misconduct, Employee will
immediately be paid all accrued salary, all incentive compensation to the
extent earned, severance compensation as provided in Section 4, vested
deferred compensation (other than pension plan or profit sharing plan benefits,
which will be paid in accordance with the applicable plan), and accrued
vacation pay, all to the date of termination.

 

2.5                   Termination Due to
Disability

 

In the event that, during the term of this Agreement,
Employee should, in the reasonable judgment of the Board, fail to perform
Employee’s duties under this Agreement because of illness or physical or mental
incapacity (“Disability”), and such Disability continues for a period of more
that 3 consecutive months, Company will have the right to terminate Employee’s
employment under this Agreement by written notification to Employee and payment
to Employee of all accrued salary and incentive compensation to the extent
earned, severance compensation as provided in Section 4, vested deferred
compensation (other than pension plan or profit sharing plan benefits, which
will be paid in accordance with the applicable plan), and all accrued vacation
pay, all to the date of termination.  Any
determination by the Board with respect to Employee’s Disability must be based
on a determination of competent medical authority or authorities, a copy of
which determination must be delivered to the Employee at the time it is
delivered to the Board.  In the event the
Employee disagrees with the determination described in the previous sentence,
Employee will have the right to submit to the Board a determination by a
competent medical authority or authorities of Employee’s own choosing to the
effect that the aforesaid determinations is incorrect and that Employee is
capable of performing Employee’s duties under this Agreement.  If, upon receipt of such determination, the
Board wishes to continue to seek to terminate this Agreement under the
provisions of this section, the parties will submit the issue of Employee’s
Disability to arbitration in accordance with the provisions of this Agreement.

 

2.6                   Death

 

In the event of Employee’s death during the term of this
Agreement, Employee’s employment is to be deemed to have terminated as of the
last day of the month during which Employee’s death occurred, and Company will
pay to Employee’s estate accrued salary, incentive compensation to the extent
earned, vested deferred compensation (other than pension plan or profit sharing
plan benefits, which will be paid in accordance with the applicable plan), and
accrued vacation pay, all to the date of termination.

 

2.7                   Voluntary Termination

 

In the event of a Voluntary Termination, Company will
immediately pay to Employee all accrued salary, all incentive compensation to
the extent earned, vested deferred compensation (other than pension plan or
profit sharing plan benefits, which will be paid in accordance with the
applicable plan), and accrued vacation pay, all to the date of termination, but
Employee will not be paid any severance compensation.

 

2.8                   Effect of Termination on
Option Agreement

 

Notwithstanding anything to the contrary contained in this
Agreement, any termination of Employee’s employment by the Company will have no
effect on Employee’s rights under that certain Qualified and Nonqualified Stock
Option Plans for which options may have been granted to Employee pursuant to
the Company’s Employee-Shareholder Stock Option Plan, which agreement was
entered into between the Employee and the Company as of August 31, 1998
(the “Option Agreement”).

 

3.                                      Salary, Benefits and Other
Compensation

 

3.1                   Base Salary

 

As payment for the services to be rendered by Employee as
provided in Section 1 and subject to the terms and conditions of Section 2,
Company agrees to pay to Employee a “Base Salary,” payable bi-weekly.  The Base Salary payable to Employee under
this Section will initially be $250,000.00.  When you will have completed six
months of employment with the company, your performance will be evaluated
against mutually agreed upon first six-month business objectives. In achieving

 

 

positive performance
versus your objectives in the first six months, your annual base compensation
will be increased to $275,000.00. Employee will be entitled to regular salary reviews and
raises during the term of this Agreement in the same general manner as other
officers of the Company; provided, however, that Employee may receive a minimum
annual increase in Employee’s Base Salary.

 

3.2                   Incentive Bonus Plans

 

During the term of his employment under this Agreement, the
Employee will be eligible to participate in all bonus and incentive plans established
by the Board including, without limitation, the Company’s 2006 Management Bonus
Plan.

 

3.3                   Benefit Plan

 

During the term of Employee’s employment under this
Agreement, the Employee is to be eligible to participate in all employee
benefit plans to the extent maintained by the Company, including (without
limitation) any life, disability, health, accident and other insurance
programs, paid vacations, and similar plans or programs, subject in each case
to the generally applicable terms and conditions of the plan or program in
question and to the determinations of any committee administering such plan or
program.  On termination of the Employee
for any reason, the Employee will retain all of Employee’s rights to benefits
that have vested under such plan, but, subject to federal and state laws, the
Employee’s rights to participate in those plans will cease on the Employee’s
termination unless the termination is a Termination Other Than for Willful
Misconduct, in which case Employee’s rights of participation will continue for
a period of one (1) year following Employee’s termination, unless this
provision is in conflict with the provisions of the above plans.

 

3.4                   Withholding of Taxes

 

The Employee understands that the services to be rendered
by Employee under this Agreement will cause the Employee to recognize taxable
income, which is considered under the Internal Revenue Code of 1986, as
amended, and applicable regulations thereunder as compensation income subject
to the withholding of income tax (and Social Security or other employment
taxes).  The Employee hereby consents to
the withholding of such taxes as are required by the Company.

 

3.5                   Vacation

 

During the term of this Agreement, Employee will be
entitled to paid vacation time per year according to the company’s employee
policy manual.

 

 

3.6                   Expenses

 

During the term of this Agreement, Company will reimburse
Employee for Employee’s reasonable out-of-pocket expenses incurred in
connection with Company’s business, including travel expenses, food, and
lodging while away from home, subject to such policies as Company may from time
to time reasonable establish for its employees.

 

4.                                      Severance Compensation

 

4.1                   Termination Other Than for
Cause; Payment in Lieu of Notice

 

In the event Employee’s employment is terminated in a
Termination Other Than for Cause, Employee will be paid as severance pay
Employee’s Base Salary for the period commencing on the date that Employee’s
employment is terminated and ending on the date which is three months
thereafter, on the dates specified in Section 3.1 for payment of Employee’s
Base Salary.

 

4.2                   Termination for Disability

 

In the event Employee’s employment is terminated because of
Employee’s disability pursuant to Section 2.5, Employee will be paid as
severance pay Employee’s Base Salary for the period commencing on the date that
Employee’s employment is terminated and ending on the date which is 3 months
thereafter, on the dates specified in Section 3.1 for payment of Employee’s
Base Salary.

 

4.3                   Other Termination

 

In the event of a Voluntary Termination, Termination for
Cause or Death, Employee’s estate will not be entitled to any severance pay.

 

5.                                      Confidentiality and
Noncompetition and Assignment of Inventions.

 

The employee has signed the standard company non-disclosure
and non-compete documents and such document becomes part and parcel of this
agreement and is incorporated herein, and appears as Schedule A to this
agreement.

 

6.                                      Miscellaneous

 

6.1                   Waiver

 

The waiver of any breach of any provision of this Agreement
will not operate or be construed as a waiver of any subsequent breach of the
same or other provision of this Agreement.

 

 

6.2                   Entire Agreement;
Modification

 

Except as otherwise provided in the Agreement and in the
Option Agreement, this Agreement represents the entire understanding among the
parties with respect to the subject matter of this Agreement, and this
Agreement supersedes any and all prior understandings, agreements, plans, and
negotiations, whether written or oral, with respect to the subject matter
hereof, including without limitation, any understandings, agreements, or
obligations respecting any past or future compensation, bonuses,
reimbursements, or other payments to Employee from Company.  All modifications to the Agreement must be in
writing and signed by the party against whom enforcement of such modification
is sought.

 

6.3                   Notice

 

All notices and other communications under this Agreement
must be in writing and must be given by personal delivery, telecopier or
telegram, or first class mail, certified or registered with return receipt
requested, and will be deemed to have been duly given upon receipt if
personally delivered, four days after mailing, if mailed, or two hours after
transmission, if delivered by telecopies or telegram, to the respective persons
named below:

 

If to
Company:                                                                 Whitney Information Network, Inc.

1612 E. Cape Coral Parkway

Cape Coral, Florida  33904

Attn:  Ronald S. Simon

 

If to Employee:

 

Any party may change such party’s address for notices by
notice duly given pursuant to this Section.

 

6.4                   Headings

 

The Section headings of this Agreement are intended
for reference and may not by themselves determine the construction or
interpretation of this Agreement.

 

6.5                   Governing Law

 

This Agreement is to be governed by and construed in
accordance with the laws of the State of Florida applicable to contracts
entered into and wholly to be performed within the State of Florida by Florida
residents.  Venue will be in Lee,
Broward, Dade or Palm Beach counties at the sole discretion of the Company.

 

 

6.6                   Survival of Company’s
Obligations

 

This Agreement will be binding on, and inure to the benefit
of, the executors, administrators, heirs, successors, and assigns of the
parties; provided, however, that except as expressly provided in this
Agreement, this Agreement may not be assigned either by Company or by Employee.

 

6.7                   Amendment

 

Employee agrees to amend or change this agreement based
upon the Company’s human resource counsel’s review of this agreement or enter
into a new agreement based upon that review.

 

6.8                   Withholdings

 

All sums payable to Employee under this Agreement will be
reduced by all federal, state, local, and other withholdings and similar taxes
and payments required by applicable law.

 

6.9                   Enforcement

 

If any portion of this Agreement is determined to be
invalid or unenforceable, that portion of this Agreement will be adjusted,
rather than voided, to achieve the intent of the parties under this Agreement.

 

6.10            Indemnification

 

The Company agrees that it will indemnify and hold the
Employee harmless to the fullest extent permitted by applicable law from and
against any loss, cost, expense or liability resulting from or by reason of the
fact of the Employee’s employment hereunder, whether as an officer, employee,
agent, fiduciary, director or other official of the Company, except to the
extent of any expenses, costs, judgments, fines or settlement amounts which
result from conduct which is determined by a court of competent jurisdiction to
be knowingly fraudulent or deliberately dishonest or to constitute some other
type of willful misconduct.

 

6.11            Contingency Clause

 

This Agreement is contingent upon the following:  Employee passing a pre-employment drug test,
acceptable results from the pending background search and the execution of the
Company’s standard Confidentiality and Non-Compete Agreements.

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first above written.

 

 

	
   

  	
  Whitney Education Group, Inc.

  
	
   

  	
   

  
	
   

  	
  By: Nick Maturo

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Employee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Alfred R. Novas

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