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rdsh_ex101.htm

EXHIBIT 10.1

 

ROADHSHIPS HOLDINGS, INC.

2013 EMPLOYEE AND CONSULTANT STOCK INCENTIVE PLAN

 

PURPOSE OF PLAN

 

WHEREAS, the purpose of this 2013 Employee and Consultant Stock Incentive Plan (hereinafter the “Plan”) is to advance the interests of Roadships Holdings, Inc. (hereinafter the “Company”) and to enhance value for its stockholders by offering incentives and rewards to keep employees, directors and officers of the Company to retain their services and to encourage them to acquire and maintain stock ownership in the Company, as well as helping the Company obtain and retain the services of persons providing consulting services upon whose judgment, initiative, efforts and/or services the Company is substantially dependent, by offering to or providing those persons with incentives or inducements affording such persons an opportunity to become owners of capital stock of the Company.

 

TERMS AND CONDITIONS OF PLAN

 

1. DEFINITIONS

 

Set forth below are definitions of capitalized terms that are generally used throughout this Plan, or references to provisions containing such definitions (capitalized terms whose use is limited to specific provisions are not referenced in this Section):

 

(a) Affiliate - The term "Affiliate" is defined as any person controlling the Company, controlled by the Company, or under common control with the Company.

 

(b) Award - The term "Award" is collectively and severally defined as any Award Shares granted under this Plan.

 

(c) Award Shares - The term "Award Shares" is defined as shares of Common Stock granted by the Plan Committee in accordance with Section 5 of this Plan.

 

(d) Board - The term "Board" is defined as the Board of Directors of the Company, as such body may be reconstituted from time to time.

 

(e) Common Stock - The term "Common Stock" is defined as the Company's common stock, $0.00001 par value.

 

(f) Company - The term "Company" is defined as Roadships Holdings, Inc., a Delaware corporation.

 

  

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(g) Disposed - The term "Disposed" (or the equivalent terms "Disposition" or "Dispose") is defined as any transfer or alienation of an Award which would directly or indirectly change the legal or beneficial ownership thereof, whether voluntary or by operation of law, or with or without the payment or provision of consideration, including, by way of example and not limitation: (i) the sale, assignment, bequest or gift of the Award; (ii) any transaction that creates or grants a right to obtain an interest in the Award; (iii) any transaction that creates a form of joint ownership in the Award between the Recipient and one or more other Persons; (iv) any Disposition of the Award to a creditor of the Recipient, including the hypothecation, encumbrance or pledge of the Award or any interest therein, or the attachment or imposition of a lien by a creditor of the Recipient of the Award or any interest therein which is not released within thirty (30) days after the imposition thereof; (v) any distribution by a Recipient which is an entity to its stockholders, partners, co-venturers or members, as the case may be, or (vi) any distribution by a Recipient which is a fiduciary such as a trustee or custodian to its settlors or beneficiaries.

 

(h) Eligible Person - The Company may engage “advisors” and/or “consultants” who may participate in this Plan, as long as such “advisors” and/or “consultants” fit the definition of “employee” included in the General Instructions to Securities and Exchange Commission (the “SEC”) Form S-8, which define the term “employee” to include an employee, director, general partner, officer, consultant or advisor. Such General Instructions impose three essential limitations on “consultants” or “advisors” eligible for participation in a plan covered by SEC Form S-8. Therefore, in order for a “consultant” or “advisor” rendering services to the Company to be an “eligible consultant” under this Plan and to be eligible to receive shares of Common Stock of the Company under this Plan and pursuant to the Form S-8 filed by the Company with the SEC, such “consultant” or “advisor” (i) must be a natural person; (ii) must provide bona fide services to the Company; (iii) the services rendered by such “consultant” or “advisor” may not be in connection with the offer or sale of securities in a capital-raising transaction and may not directly or indirectly promote or maintain a market for the Company’s securities.

 

(i) Fair Market Value - The term "Fair Market Value" means the fair market value as of the applicable valuation date of the Award Shares, or other shares of Common Stock, as the case may be (the “Subject Shares”), to be valued as determined by the Plan Committee in its good faith judgment, but in no event shall the Fair Market Value be less than the par value of the Subject Shares.

 

(j) Person - The term "Person" is defined, in its broadest sense, as any individual, entity or fiduciary such as, by way of example and not limitation, individual or natural persons, corporations, partnerships (limited or general), joint-ventures, associations, limited liability companies/partnerships, or fiduciary arrangements, such as trusts.

 

(k) Plan - The term "Plan" is defined as this 2013 Employee and Consultant Stock Incentive Plan.

 

(l) Plan Committee - The term "Plan Committee" is defined as that Committee appointed by the Board to administer and interpret this Plan as more particularly described in Section 3 of the Plan; provided, however, that the term Plan Committee will refer to the Board during such times as no Plan Committee is appointed by the Board.

 

(m) Recipient - The term "Recipient" is defined as any Eligible Person who, at a particular time, receives the grant of an Award.

 

(n) Securities Act - The term "Securities Act" is defined as the Securities Act of 1933, as amended (references herein to Sections of the Securities Act are intended to refer to Sections of the Securities Act as enacted at the time of the adoption of this Plan by the Board and as subsequently amended, or to any substantially similar successor provisions of the Securities Act resulting from recodification, renumbering or otherwise).

 

  

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2. TERM OF PLAN

 

This Plan shall be effective as of such time and date as this Plan is adopted by the Board, and this Plan shall terminate on the first business day prior to the ten (10) year anniversary of the date this Plan became effective. All Awards granted pursuant to this Plan prior to the effective date of this Plan shall not be affected by the termination of this Plan and all other provisions of this Plan shall remain in effect until the terms of all outstanding Awards have been satisfied or terminated in accordance with this Plan and the terms of such Awards.

 

3. PLAN ADMINISTRATION

 

(a) Plan Committee.

 

(i) The Plan shall be administered and interpreted by the Plan Committee consisting of two (2) or more members of the Board; provided, however, no member of the Board may serve as a member of the Plan Committee if such person serves or served as a member of the Plan Committee with respect to any plan (other than this Plan) of the Company or its Affiliates which plan was or is established to comply with the provisions of Rule 16b-3(c)(2)(i) to the Securities and Exchange Act of 1934, as amended (i.e., pertaining to the establishment of so-called "Section 16b-3 Plans"), and, by reason of such person's proposed service as a member of the Plan Committee, such person would not be considered a "disinterested" person within the meaning of said Rule with respect to such other plan.

 

(ii) Members of the Plan Committee may resign at any time by delivering written notice to the Board. Vacancies in the Plan Committee shall be filled by the Board. The Plan Committee shall act by a majority of its members in office. The Plan Committee may act either by vote at a meeting or by a memorandum or other written instrument signed by a majority of the Plan Committee.

 

(iii) If the Board, in its discretion, does not appoint a Plan Committee, the Board itself will administer and interpret the Plan and take such other actions as the Plan Committee is authorized to take hereunder; provided that the Board may take such actions hereunder in the same manner as the Board may take other actions under the Certificate of Incorporation and bylaws of the Company generally.

 

(b) Eligibility of Plan Committee Members to Receive Awards. While serving on the Plan Committee, such members shall not be eligible for selection as Eligible Persons to whom an Award may be granted under the Plan.

 

(c) Power to Make Awards. The Plan Committee shall have the full and final authority in its sole discretion, at any time and from time-to-time, subject only to the express terms, conditions and other provisions of the Certificate of Incorporation of the Company and this Plan, and the specific limitations on such discretion set forth herein, to:

 

(i) Designate the Eligible Persons or classes of Eligible Persons eligible to receive Awards from among the Eligible Persons;

 

  

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(ii) Grant Awards to such selected Eligible Persons or classes of Eligible Persons in such form and amount (subject to the terms of the Plan) as the Plan Committee shall determine;

 

(iii) Interpret the Plan, adopt, amend and rescind rules and regulations relating to the Plan, and make all other determinations and take all other action necessary or advisable for the implementation and administration of the Plan; and

 

(iv) Delegate all or a portion of its authority under subsections (i) and (ii) of this Section 3(c) to one or more directors of the Company who are executive officers of the Company, subject to such restrictions and limitations (such as the aggregate number of shares of Common Stock that may be awarded) as the Plan Committee may decide to impose on such delegate directors.

 

In determining the recipient, form and amount of Awards, the Plan Committee shall consider any factors deemed relevant, including the recipient's functions, responsibilities, value of services to the Company and past and potential contributions to the Company's profitability and sound growth.

 

(d) Interpretation of Plan. The Plan Committee shall, in its sole and absolute discretion, interpret and determine the effect of all matters and questions relating to this Plan. The interpretations and determinations of the Plan Committee under the Plan (including without limitation determinations pertaining to the eligibility of Persons to receive Awards, the form, amount and timing of Awards, the methods of payment for Awards, and the other terms and provisions of Awards and the certificates or agreements evidencing same) need not be uniform and may be made by the Plan Committee selectively among Persons who receive, or are eligible to receive, Awards under the Plan, whether or not such Persons are similarly situated. All actions taken and all interpretations and determinations made under this Plan in good faith by the Plan Committee shall be final and binding upon the Recipient, the Company, and all other interested Persons. No member of the Plan Committee shall be personally liable for any action taken or decision made in good faith relating to this Plan, and all members of the Plan Committee shall be fully protected and indemnified to the fullest extent permitted under applicable law by the Company in respect to any such action, determination, or interpretation.

 

(e) Compensation; Advisors. Members of the Plan Committee shall receive such compensation for their services as members as may be determined by the Board. All expenses and liabilities incurred by members of the Plan Committee in connection with the administration of the Plan shall be borne by the Company. The Plan Committee may, with the approval of the Board, employ attorneys, consultants, accountants, appraisers, brokers, or other Persons, at the cost of the Company. The Plan Committee, the Company and its officers and directors shall be entitled to rely upon the advice, opinions, or valuations of any such Persons.

 

4. STOCK POOL

 

(a) Maximum Number of Shares Authorized Under Plan. Shares of stock which may be issued or granted under the Plan shall be authorized and unissued or treasury shares of Common Stock. The aggregate maximum number of shares of Common Stock which may be issued as a grant of Award Shares shall not exceed 500,000,000 shares of Common Stock (the "Stock Pool").

 

  

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(b) Date of Award. The date an Award is granted shall mean the date selected by the Plan Committee as of which the Plan Committee allots a specific number of shares to a Recipient with respect to such Award pursuant to the Plan.

 

5. AWARD SHARES

 

(a) Grant. The Plan Committee may from time to time, and subject to the provisions of the Plan and such other terms and conditions as the Plan Committee may prescribe, grant to any Eligible Person one or more shares of Common Stock ("Award Shares") allotted by the Plan Committee. The grant of Award Shares or grant of the right to receive Award Shares shall be evidenced by either a written consulting agreement or a separate written agreement confirming such grant, executed by the Company and the Recipient, stating the number of Award Shares granted and stating all terms and conditions of such grant.

 

(b) Purchase Price and Manner of Payment. The Plan Committee, in its sole discretion, may grant Award Shares in any of the following instances:

 

(i) as a "bonus" or "reward" for services previously rendered and compensated, in which case the recipient of the Award Shares shall not be required to pay any consideration for such Award Shares, and the value of such Award Shares shall be the Fair Market Value of such Award Shares on the date of grant; or

 

(ii) as "compensation" for the previous performance or future performance of services or attainment of goals, in which case the recipient of the Award Shares shall not be required to pay any consideration for such Award Shares (other than the performance of his services), and the value of such Award Shares received (together with the value of such services or attainment of goals attained by the Recipient), may not be less than one hundred percent (100%) of the Fair Market Value of such Award Shares on the date of grant; or

 

6. ADJUSTMENTS

 

(a) Subdivision or Stock Dividend. If (i) outstanding shares of Common Stock shall be subdivided into a greater number of shares by reason of recapitalization or reclassification, the number of shares of Common Stock, if any, available for issuance in the Stock Pool shall, simultaneously with the effectiveness of such subdivision or immediately after the record date of such dividend, be proportionately increased, and (ii) conversely, if the outstanding shares of Common Stock shall be combined into a smaller number of shares, the number of shares of Common Stock, if any, available for issuance in the Stock Pool shall, simultaneously with the effectiveness of such combination, be proportionately increased.

 

(b) Adjustments Determined in Sole Discretion of Board. To the extent that the foregoing adjustments relate to stock or securities of the Company, such adjustments shall be made by the Board, whose determination in that respect shall be final, binding and conclusive.

 

  

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(c) No Other Rights to Recipient. Except as expressly provided in this Section 6, (i) the Recipient shall have no rights by reason of any subdivision or consolidation of shares of stock of any class or the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class, and (ii) the dissolution, liquidation, merger, consolidation or divisive reorganization or sale of assets or stock to another corporation, or any issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of shares. The grant of an Award pursuant to this Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure or to merge, consolidate, dissolve or liquidate, or to sell or transfer all or any part of its business or assets.

 

7. EMPLOYMENT STATUS

 

In no event shall the granting of an Award be construed as granting a continued right of employment to a Recipient if such Person is employed by the Company, nor effect any right which the Company may have to terminate the employment of such Person, at any time, with or without cause, except to the extent that such Person and the Company have agreed otherwise in writing.

 

8. AMENDMENT AND DISCONTINUATION OF PLAN; MODIFICATION OF AWARDS

 

(b) Amendment, Modification or Termination of Plan. The Board may amend the Plan or suspend or discontinue the Plan at any time or from time-to-time; provided, however no such action may adversely alter or impair any Award previously granted under this Plan without the consent of each Recipient affected thereby.

 

(b) Compliance with Laws. The Plan Committee may at any time or from time-to-time, without receiving further consideration from any Person who may become entitled to receive or who has received the grant of an Award hereunder, modify or amend Awards granted under this Plan as required to: (i) comply with changes in securities, tax or other laws or rules, regulations or regulatory interpretations thereof applicable to this Plan or Awards thereunder or to comply with stock exchange rules or requirements.

 

* * * * *

 

 

 6ExecAnnualIncentiveCompProgramV12

Exhibit 10.1

THE FRESH MARKET, INC. 
ANNUAL INCENTIVE COMPENSATION PROGRAM FOR SELECT EXECUTIVES
SECTION 1.  Purpose.  The purpose of this [______] Annual Incentive Compensation Program for Select Executives (the “Program”) is to provide incentives and reward select executives for achieving specified performance goals in fiscal year [_____].   
SECTION 2.  Definitions.  Capitalized terms used herein that are not defined herein have the meanings as used or defined in The Fresh Market, Inc. 2010 Omnibus Incentive Compensation Plan (the “Plan”).  As used herein, the following terms shall have the meanings set forth below:
“Adjusted Net Income” shall mean net income determined in accordance with U.S. generally accepted accounting principles as set forth on the Company’s audited consolidated financial statements adjusted to exclude (i) restructuring charges and expenses related to the exit or disposal of a business, (ii) income/expense effect of business acquisitions or combinations, (iii) income/expense effect of business divestitures, (iv) cumulative effect of changes in tax or U.S. generally accepted accounting principles, (v) income/expense of discontinued operations, (vi) income/expenses resulting from newly enacted laws and regulations, (vii) documented, third-party costs and expenses of secondary offerings initiated under the registration rights agreement entered into with the Berry family in conjunction with the Company’s initial public offering, and (viii) taxes, interest and penalties incurred by the Company in accordance with, or required by, the tax indemnification agreement entered into with the Berry family in conjunction with the Company’s initial public 

1

Exhibit 10.1

offering and the documented, third-party costs and expenses incurred by the Company in connection with audits, reviews and examinations of tax returns that are subject to such tax indemnification agreement, all determined (x) on an income tax affected basis, as applicable, and (y) in accordance with U.S. generally accepted accounting principles. 
“Award” shall mean any amount granted to a Participant under the Program.
“Award Notice” shall mean, with respect to any Participant, the award notice delivered to such Participant in the form attached hereto as Schedule A.
“Operating Income” shall mean the Company’s operating income as determined in accordance with U.S. generally accepted accounting principles as set forth on the Company’s audited consolidated financial statements and adjusted to exclude, to the extent included in the calculation of operating income, (i) restructuring charges and expenses related to the exit or disposal of a business, (ii) income/expense effect of  business acquisitions or combinations, (iii) income/expense effect of business divestitures, (iv) cumulative effect of changes in tax or U.S. generally accepted accounting principles, (v) income/expense of discontinued operations, (vi) income/expenses resulting from newly enacted laws and regulations, (vii) documented, third-party costs and expenses of secondary offerings initiated under the registration rights agreement entered into with the Berry family in conjunction with the Company’s initial public offering, and (viii) taxes, interest and penalties incurred by the Company in accordance with, or required by, the tax 

2

Exhibit 10.1

indemnification agreement entered into with the Berry family in conjunction with the Company’s initial public offering and the documented, third-party costs and expenses incurred by the Company in connection with audits, reviews and examinations of tax returns that are subject to such tax indemnification agreement, all determined in accordance with U.S. generally accepted accounting principles.
“Performance Period” shall mean the Company’s fiscal year [____].
“Return on Invested Capital” shall mean, with respect to the Performance Period, the quotient of (A) (i) one (1) minus the Company’s effective tax rate (expressed in decimal place), multiplied by (ii) the sum of (x) the Company’s Adjusted Net Income plus (y) interest expense plus (z) provision for income taxes, in each case, for the Performance Period divided by (B) the excess of (i) the average of the Company’s total asset balance for each fiscal quarter in the Performance Period minus (ii) the average of the Company’s cash and cash equivalents balance for each fiscal quarter in the Performance Period minus (iii) the average of the Company’s current liabilities balance (less any interest bearing amounts included in such balance) for each fiscal quarter in the Performance Period.  For the avoidance of doubt, if the Company’s effective tax rate is 40.1%, it shall be expressed as 0.401 in the calculation above.
“Total Sales” shall mean sales as determined in accordance with U.S. generally accepted accounting principles and set forth on the statement of income (or similar financial statement) for the Performance Period.

3

Exhibit 10.1

SECTION 3.  Participants.  Executives entitled to participate in the Program shall be selected by the Committee, or such executive officers to whom the Committee has delegated its authority in accordance with Section 9, in its sole discretion (each, a “Participant”).
SECTION 4.  Awards.  Not later than 90 days after the commencement of the Performance Period, each Participant in the Program shall receive an Award Notice. Such Award Notice shall specify the maximum Award payable to each Participant (the “Maximum Amount”) upon achievement of the Performance Goal (as defined in Section 5(a)).  Awards are intended to constitute Cash Incentive Awards as defined in the Plan and to qualify as “qualified performance-based compensation” within the meaning of Section 162(m) of the Code.
SECTION 5.  Payment of Awards.  (a)  Performance Goal.  Payments to each Participant in respect of such Participant’s Award shall be contingent on the achievement of positive Operating Income for the Performance Period (the “Performance Goal”).  In the event the Performance Goal is not attained, Participants shall not be entitled to receive any payments in respect of any Awards.
(a)  Committee Certification.  Subject to section 5(e), following the completion of the Performance Period, the Committee shall certify in writing whether, and to what extent, the Performance Goal has been achieved.  The Committee shall then determine the applicable Award payment for each Participant.
(b)  Negative Discretion.  In determining the applicable Award payment the Committee may, in its sole discretion, reduce or eliminate the Maximum Amount (if any) based on the facts and circumstances as determined by the Committee in its sole discretion, including as set forth on each 

4

Exhibit 10.1

Participant’s Award Notice, even if the Performance Goal has been attained.
(c)  Payment Date.  As soon as reasonably practicable following the Committee’s determination of the applicable Award payment, but in no event later than April 10 of the year following the end of the Performance Period, the Company shall pay the applicable Award payment (if any) in cash to each Participant.
(d)  Condition to Receipt of Payment.  A Participant must be employed by the Company or one of its Affiliates at the end of the Performance Period to be eligible for payment in respect of any Award.  For the avoidance of doubt, if the Participant’s employment terminates prior to the end of the Performance Period, the Participant shall forfeit any rights to payment in respect of such Award.
SECTION 6.  Recoupment.  The Company has adopted The Fresh Market, Inc.’s Compensation Recoupment Policy (the “Recoupment Policy”) that requires certain persons identified therein to repay the Company excess performance-based compensation as and to the extent set forth therein.  Awards are subject to the terms and conditions of the Recoupment Policy.  The Committee will review the Compensation Recoupment Policy to ensure compliance with any rules or regulations adopted by the Securities and Exchange Commission or The Nasdaq Stock Market, LLC to implement Section 10D of the Securities Exchange Act, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.  Any changes required to be made to the Recoupment Policy to comply with such rules or regulations shall apply to annual Performance Compensation Awards under the Plan.
SECTION 7.  No Limit on Other Compensation Arrangements.  Nothing contained in the Program shall prevent the 

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Exhibit 10.1

Company or any Affiliate from adopting or continuing in effect other compensation arrangements, which may, but need not, provide for the grant of cash incentive awards, and such arrangements may be either generally applicable or applicable only in specific cases.
SECTION 8.  The Plan.  This Program is adopted pursuant to the Plan, all the terms of which, other than those set forth in Section 8 of the Plan, are hereby incorporated in this Program.  In the event of any conflict between the terms of the Plan, on the one hand, and the terms of this Program, on the other hand, the terms of the Plan shall govern.  
SECTION 1.  Administration.  The Program shall be administered by the Committee.  The Committee may delegate, on such terms and conditions as it determines in its discretion, administration of the Program to one or more executive officers of the Company, except that the Committee may not delegate such authority as it relates to any executive officer.  The Committee may amend, withdraw or terminate the Program at any time and may make such determinations with respect to awards under the Program as it deems necessary and/or appropriate in its reasonable judgment, subject to the terms and conditions of the Plan and applicable law.
Schedule A
THE FRESH MARKET, INC.
ANNUAL INCENTIVE COMPENSATION PROGRAM FOR SELECT EXECUTIVES

FORM OF AWARD NOTICE

Granted To:  [l]
                           
Performance Period:  Fiscal year [_____]

Maximum Amount:  [l]% of Operating Income 

Non-Binding Target Bonus:  [l]% of base salary

Negative Discretion Performance Factors:  Levels of achievement of goals with respect to Operating Income and Total Sales are described in the tables below.  In determining the percentage of the Non-Binding Target Bonus that may be payable, Operating Income shall be weighted [l]% and Total Sales shall be weighted [l]% (the amount of such percentage, the “Non-Binding Bonus Amount”).  Performance achievement levels between those specified below shall result in the payment of an Award amount determined by linear interpolation.  The Non-Binding Bonus Amount shall be reduced by [l]% in the event Return on Invested Capital is less than [l]%.

	
					
	

	

Operating Income
	

Total Sales
	

Percentage of Applicable Portion of Non-Binding Target Bonus

	>Maximum
	>$
	>$
	[l]%

	Maximum
	$
	$
	[l]%

	Target
	$
	$
	[l]%

	Threshold
	$
	$
	[l]%

	< Threshold
	<$
	<$
	0%

	 
	 
	 
	 

Awards granted pursuant to this Award Notice are subject to the terms of The Fresh Market, Inc. [______] Annual Incentive Compensation Program, The Fresh Market, Inc. 2010 Omnibus Incentive Compensation Plan and The Fresh Market, Inc. Compensation Recoupment Policy.

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