Document:

Exhibit 10.2 Non-Employee Director Restricted Stock Plan

EXHIBIT 10.2

 

 

FROZEN
FOOD EXPRESS INDUSTRIES, INC.

 

2005
NON-EMPLOYEE DIRECTOR RESTRICTED STOCK PLAN

 

 

1.  PURPOSE.
The purposes of the Frozen Food Express Industries, Inc., 2005 Non-Employee
Director Restricted Stock Plan (this "Plan") are to promote the growth and
prosperity of Frozen Food Express Industries, Inc. (the "Company"), to attract
and retain the best available people to serve as independent directors of the
Company and to encourage stock ownership by such directors and thus increase
their personal interest in the Company's success.

 

 

2.  ADMINISTRATION.

 

 

(a)  This Plan
shall be administered by the Board of Directors of the Company (the "Board").
The Board may from time to time prescribe, amend and rescind such rules,
regulations, provisions and procedures, consistent with the terms of this Plan,
as may be advisable in its opinion in the administration of this Plan, and
subject to the terms of this Plan shall prescribe the provisions of the
restricted stock agreements to be issued hereunder and make all other
determinations and interpretations necessary or advisable for administering this
Plan and the stock option agreements.

 

 

(b)  A
majority of the Board shall constitute a quorum, and the acts of a majority of
the members present at any meeting at which a quorum is present, or acts
approved in writing by all members of the Board, shall be the acts of the Board.
All decisions, determinations and interpretations of the Board shall be final
and binding on all persons interested in this Plan.

 

 

3.  SHARES
AVAILABLE FOR AWARD UNDER THIS PLAN.

 

 

(a)  The stock
to be subject to awards granted under this Plan shall be shares of the Company's
common stock, par value $1.50 per share (the "Common Stock"), either authorized
and unissued or treasury stock.

 

 

(b)  In the
event of a merger, consolidation, reorganization, recapitalization, subdivision
or any other similar change affecting the stock of the Company, an appropriate
adjustment to reflect any such change shall be made in the total number and
class of shares for which awards may be granted, the number and class of shares
underlying awards to be granted in accordance with Section 4(a), and the number
and class of shares. Such adjustment shall be as determined by the Board;
provided, however, that any such computation shall be rounded to the nearest
whole share and no such modification shall require the issuance of fractional
shares.

 

 

(c)  The total
amount of stock reserved for issuance under the Plan in the form of shares of
Restricted Stock shall be 50,000 shares (subject to adjustment in accordance
with Section 3(b)).

 

 

(d)  In the
event any outstanding award for any reason expires, is forfeited, cancelled or
otherwise terminates, the shares allocable to the award shall again be available
for issuance under this Plan.

 

 

(e)  Nothing
in this Plan or in any award granted pursuant to this Plan shall confer on any
individual any right to continue as a director of the Company or interfere in
any way with the removal of such person as a director in accordance with the
Articles of Incorporation and Bylaws.

 

 

4.  ELIGIBILITY
AND AWARDS.

 

 

Each
director of the Company who is not at the time of the grant of an award an
officer or employee of the Company ("Non-Employee Director") shall be eligible
to receive an award of restricted stock under this Plan on the day of a
Non-Employee Director's initial appointment or election (whichever comes first)
to the Board. Annually thereafter, on the day of each annual meeting of
stockholders of the Company that occurs after the date of such Director’s
initial appointment or election to the Board, such individual shall be eligible
to receive an award of restricted stock under this Plan. Each such date (of
appointment, election or the annual stockholders’ meeting) shall be the “Date of
Grant” with respect to an award. The Board shall determine from time to time the
number of shares of Restricted Stock to be issued to an eligible Non-Employee
Director.

 

 

5.  VESTING
OF RESTRICTED STOCK.

 

 

Unless
otherwise determined by the Board and set forth in the Award Agreement, all
shares of Restricted Stock awarded under this Plan shall vest over a period of
three (3) years from the Date of Grant, one-third (1/3) on each anniversary of
the Date of Grant, provided that the Non-Employee Director continues to serve as
such at each vesting date.

 

If a
Non-Employee Director dies while serving on the Board, the shares of Restricted
Stock theretofore granted to such director shall become fully vested as of the
date of his or her death.

 

 

6.  TERMS AND
CONDITIONS OF RESTRICTED STOCK.

 

		
      Shares
      of Restricted Stock may
      not be sold, assigned, transferred, pledged or otherwise encumbered,
      except as hereinafter provided, until vested in accordance with paragraph
      5. Except for such restrictions, the Non-Employee Director as owner of
      such shares shall have all the rights of a stockholder, including but not
      limited to the right to vote such shares and, except as otherwise provided
      by the Board, the right to receive all dividends paid on such
      shares.

 

		
      Except
      as otherwise determined by the Board in its sole discretion, a
      Non-Employee Director whose service as a director terminates prior to full
      vesting of the Restricted Stock shall forfeit all non-vested shares of
      Restricted Stock remaining subject to any outstanding Restricted Stock
      Award.

 

		
      Each
      certificate issued in respect of shares of Restricted Stock awarded under
      the Plan shall be registered in the name of the Non-Employee Director and,
      at the discretion of the Board, each such certificate may be deposited in
      a bank designated by the Board. Each such certificate shall bear the
      following (or a similar) legend:

 

 

			
      "The
      transferability of this certificate and the shares of stock represented
      hereby are subject to the terms and conditions (including forfeiture)
      contained in the Frozen Food Express Industries, Inc. 2005 Non-Employee
      Director Restricted Stock Plan and an agreement entered into between the
      registered owner and Frozen Food Express Industries, Inc. A copy of such
      plan and agreement is on file in the office of the Secretary of Frozen
      Food Express Industries, Inc., 1145 Empire Central Place, Dallas, Texas
      75247.

 

 

At each
vesting date, Restricted Stock will be transferred free of all restrictions to a
Non-Employee Director (or his or her legal representative, beneficiary or
heir).

 

 

7.  AMENDMENT
AND DISCONTINUANCE.

 

 

The Board
may at any time amend this Plan, provided that, except as permitted by Section
3(b), no amendment without the approval of shareholders shall: (a) increase the
total number of shares of Restricted Stock that may be granted, (b) change the
class of persons eligible to receive shares of Restricted Stock under this Plan,
or (c) change the provisions relating to the administration of this Plan by the
Board.

 

 

The Board
may terminate this Plan at any time but such termination shall not affect shares
of Restricted Stock previously granted. 

 

 

8.  RESERVATION
OF SHARES.

 

 

During
the term of this Plan, the Company shall at all times reserve and keep
available, and will obtain from any regulatory body having jurisdiction any
requisite authority in order to issue such number of shares of its Common Stock
as shall be sufficient to satisfy the requirements of this Plan. Inability of
the Company to obtain any authority deemed by the Company's counsel to be
necessary to the lawful issuance of any shares of its stock hereunder shall
relieve the Company of any liability in respect of the nonissuance of such stock
as to which such authority shall not have been obtained.

 

 

9.  SECURITIES
ACT OF 1933.

 

 

Unless
(a) the shares to be issued upon an award have been effectively registered under
the Securities Act of 1933, as now in force or hereafter amended; or (b) in the
opinion of counsel for the Company, no such registration is necessary, the
Company shall be under no obligation to issue any shares covered by any
award.

 

 

10.  SECTION
16.

 

 

With
respect to persons subject to Section 16 of the Securities Exchange Act of 1934
("Exchange Act"), transactions under this Plan are intended to comply with all
applicable provisions of Rule 16b-3 or its successors under the Exchange Act. To
the extent any provision of this Plan or action by the Board fails to so comply,
it shall be deemed null and void, to the extent permitted by law and deemed
advisable by the Board.

 

 

11.  EFFECTIVE
DATE; TERM OF PLAN.

 

 

This Plan
shall become effective as of May 5, 2005; provided, however, if this Plan is not
approved by the holders of a majority of the stock of the Company present or
represented by proxy and entitled to vote at the annual meeting of shareholders
of the Company on May 5, 2005, any awards granted under this Plan shall be null,
void and of no force and effect as of their grant date, and this Plan shall
terminate. This Plan shall terminate on May 5, 2015, unless sooner terminated as
provided in this Plan. At the end of such term, this Plan shall expire except
for awards then outstanding.

 

FROZEN
FOOD EXPRESS INDUSTRIES, INC.

 

By: /s/ Stoney M. Stubbs, Jr.

Name: STONEY M. STUBBS, JR.

Title:  Chairman of the
BoardExhibit 10.2a Non-Employee Award

EXHIBIT 10.2 (a)

FORM
OF

RESTRICTED
STOCK AGREEMENT

FROZEN
FOOD EXPRESS INDUSTRIES, INC.

2005
NON-EMPLOYEE DIRECTOR RESTRICTED STOCK PLAN

AGREEMENT
made as of _______________, by and between Frozen Food Express Industries, Inc.
(“Company”) and __________________________(“Award Recipient”):

WHEREAS,
the Company maintains the Frozen Food Express Industries, Inc. 2005 Non-Employee
Director Restricted Stock Plan (“Plan”) under which members of the Company’s
Board of Directors (“Board”) may receive awards of shares of restricted common
stock, $1.50 par value, of the Company; 

WHEREAS,
pursuant to the Plan, the Board has awarded to the Award Recipient shares of
restricted stock conditioned upon the execution by the Company and the Award
Recipient of a Restricted Stock Agreement setting forth all the terms and
conditions applicable to such award in accordance with the Plan;

THEREFORE,
in consideration of the mutual promise(s) and covenant(s) contained herein, it
is hereby agreed as follows:

1.  AWARD OF
STOCK. Under the terms of the Plan, the Board has awarded to the Award Recipient
a restricted stock award on ________________ (“Award Date”), covering
_____________________________ shares of common stock (the “Shares”) subject to
the terms, conditions, and restrictions set forth in this Agreement.

 

2.  CERTIFICATES.
The certificate(s) evidencing the award shall be registered on the Company's
books in the name of the Award Recipient as of the Award Date. Physical
possession or custody of such certificate(s) shall be retained by the Company
until such time as they are vested (i.e., the restriction period lapses). Except
to the extent the award has vested in accordance with this agreement, the
certificate(s) evidencing the award shall bear the following
legend:

 

"The
transferability of this certificate and the shares of stock represented hereby
are subject to the terms and conditions (including forfeiture) contained in the
Frozen Food Express Industries, Inc. 2005 Non-Employee Director Restricted Stock
Plan and an agreement entered into between the registered owner and Frozen Food
Express Industries, Inc. A copy of such plan and agreement is on file in the
office of the Secretary of Frozen Food Express Industries, Inc., 1145 Empire
Central Place, Dallas, Texas 75247."

 

 

Additionally,
the Award Recipient understands and agrees that he is acquiring the restricted
stock in a transaction that has not been registered under the Securities Act of
1933, as amended, or any state securities laws and without a view to the
distribution thereof in violation of applicable securities laws, and the
certificate evidencing the award may contain a legend providing
that:

 

"THE
SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THE SHARES
MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, TRANSFERRED, OR OTHERWISE DISPOSED
OF UNTIL THE HOLDER HEREOF PROVIDES EVIDENCE SATISFACTORY TO THE ISSUER (WHICH,
IN THE DISCRETION OF THE ISSUER, MAY INCLUDE AN OPINION OF COUNSEL SATISFACTORY
TO THE ISSUER) THAT SUCH OFFER, SALE, PLEDGE, TRANSFER, OR OTHER DISPOSITION
WILL NOT VIOLATE APPLICABLE FEDERAL OR STATE SECURITIES LAWS.

 

During
the restriction period, except as otherwise provided in Paragraph 3 of this
Agreement, the Award Recipient shall be entitled to all rights of a stockholder
of the Company, including the right to receive dividends with respect to such
Shares.

3.  AWARD
RESTRICTIONS. The restricted stock shall vest in accordance with the schedule
set forth below, provided that the Award Recipient continues to serve as a
member of the Board on each vesting date:

 

	 Date 	
       Percentage of Shares Vested

	 One Year after the Award Date 	
       33%

	 Two Years after the Award Date 	
       66%

	 Three Years after the Award Date 	
       100%

	 	 

 

During
the restriction period, the restricted Shares which are not vested are not
transferable by the Award Recipient by means of sale, assignment, exchange,
pledge, or otherwise. 

(i)  ACCELERATED
VESTING OF RESTRICTED SHARES. If the Award Recipient should die while serving as
a member of the Board, the restricted stock award, to the extent not already
vested, shall vest in full as of the date of his or her death. Termination of
the Award Recipient's service as a member of the Board for any other reason
shall result in forfeiture of the award on the date of termination to the extent
not vested. 

 

4.  TAXES.
The Award Recipient shall be responsible for the reporting and payment of taxes
owed with respect to the restricted stock award. The parties agree that, on the
Award Date, the fair market value of each Share of restricted stock was
$_____.

 

5.  ADMINISTRATION.
The Board shall have full authority and discretion, (subject only to the express
provisions of the Plan) to decide all matters relating to the administration and
interpretation of the Plan and this Agreement. All such Board determinations
shall be final, conclusive, and binding upon the Company, the Award Recipient,
and any and all interested parties.

 

6.  NO RIGHT
TO CONTINUED SERVICE. Nothing in the Plan or this Agreement shall confer on an
Award Recipient any right to continue to serve as a member of the Board of the
Company.

 

7.  AMENDMENT(S).
This Agreement shall be subject to the terms of the Plan as amended except that
the award that is the subject of this Agreement may not in any way be restricted
or limited by any Plan amendment or termination approved after the date of the
award without the Award Recipient's written consent.

 

8.  FORCE AND
EFFECT. The various provisions of this Agreement are severable in their
entirety. Any determination of invalidity or unenforceability of any one
provision shall have no effect on the continuing force and effect of the
remaining provisions.

 

9.  GOVERNING
LAWS. This Agreement shall be construed and enforced in accordance with and
governed by the laws of the State of Texas.

 

10.  SUCCESSORS.
This Agreement shall be binding upon and inure to the benefit of the heirs and
permitted successors and assigns of the respective parties.

 

11.  NOTICES.
Unless waived by the Company, any notice to the Company required under or
relating to this Agreement shall be in writing and addressed to:

 

Frozen
Food Express Industries, Inc.

1145
Empire Central Place

Dallas,
Texas 75247

Attention:
President or Secretary;

or to
such other address as the Company maintains as its principal executive
offices.

12.  ENTIRE
AGREEMENT. This Agreement and the Plan contain the entire understanding of the
parties and shall not be modified or amended except in writing and duly signed
by the parties. In the event of any conflict between the terms and provisions of
this Agreement and those of the Plan, the terms and provisions of the Plan
including, without limitation, those with respect to powers of the Board, shall
prevail and be controlling. No waiver by either party of any default under this
Agreement shall be deemed a waiver of any later default. Any capitalized terms
not otherwise defined herein shall have the meanings ascribed to them in the
Plan.

 

IN
WITNESS WHEREOF, the parties have signed this Agreement as of the date hereof.

FROZEN
FOOD EXPRESS INDUSTRIES, INC.

By:
_____________________________________ 

Its:
Chairman of the Board

___________________________________________

Award
Recipient

Address:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}]]