Document:

EX-10.2

 

Exhibit 10.2

Compensation Information for Executive Officers

GTx Executive Bonus Compensation Plan

Effective January 1, 2007

Plan Objectives

The objectives of the GTx Executive Bonus Compensation Plan (the “Bonus Plan”) are to:

	 	*	 	provide a link between compensation and performance
	 
	 	*	 	motivate participants to achieve individual and company objectives
	 
	 	*	 	enable the company to attract and retain highly qualified executives

Eligibility

All GTx executive officers (defined as officers who are vice presidents or above within the
organization) to participate in the Bonus Plan for each performance year (which, for purposes
hereof, will be the company’s calendar year commencing with the calendar year 2007), subject to the
following exceptions:

     *Executive officers who receive a performance rating by his or her superior (or, for the Chief
Executive Officer (CEO), a rating by the Compensation Committee) of less than 3 on his or her
annual performance evaluation, where 5 is considered the highest and 1 is the lowest, are not
eligible for a bonus award for that calendar year regardless of whether he or she obtained the
Bonus Plan objectives established at the beginning of the performance year for the executive.

     *Executive officers whose initial hire date is in November or December of a performance year
first become eligible for a bonus award in the following year.

     *Any executive officer who joins the company before November of the performance year may be
eligible for a prorated bonus award, depending on the length of service during such year, or may be

 

 

eligible for a full bonus award for the performance year if the Compensation Committee approves
such an award.

     *Any GTx employee who is elected to serve as an executive officer of the company during a
performance year may be eligible for a full bonus award for the performance year if his or her
Bonus Plan objectives are approved by the Compensation Committee as being sufficiently fair to
evaluate the performance of the newly elected executive officer for such performance year.

Unless terms of an applicable severance plan provide otherwise, a participant whose employment is
terminated (or who notifies the company that he or she intends to terminate his or her employment)
for any reason other than death or disability prior to the payment date (normally in February or
March following the performance year) will not be eligible for a bonus award.

Terms and Conditions of Bonus Awards

(a) Pre-Established Performance Goals. Payment of bonus awards shall be based solely
on account of the attainment of one or more pre-established, objective Performance Goals. The
Compensation Committee shall approve one or more objective Performance Goals with respect to each
eligible executive officer in writing not later than 90 days after the commencement of the
performance year for which the Performance Goals relate, provided that the outcome of the
Performance Goals is substantially uncertain at the time of their approval by the Compensation
Committee. Performance Goals shall be based on criteria and objectives that are consistent with the
goals, objectives and strategies of the company and should be designed to reward the executive
officer who achieves his or her Performance Goals for assisting the company in obtaining its goals
and objectives.

(b) Committee Certification. Prior to the payment of any bonus award, the Compensation
Committee shall determine by an affirmative vote of the Compensation Committee that the Performance
Goals were satisfied.

Target Bonus Awards

Target bonus awards will be approved by the Compensation Committee after reviewing
recommendations and other information supplied to the Compensation Committee by the company. The
target bonus awards will be communicated to the eligible executive officers in writing annually at
or prior to the determination of the Performance Goals for the performance year. Bonus awards shall
be expressed as a percentage of base salary for each eligible executive officer and shall be
calculated by multiplying the percentage attained, as determined by the Compensation Committee
after review of executive officers performance for the performance year, times the executive
officer’s annualized base salary as of the end the applicable performance year.

Administration of the Bonus Plan

(a) The Committee. The Plan shall be administered by the Compensation Committee.

(b) Powers of the Committee. Subject the provisions of the Bonus Plan (including any other
powers given to the Compensation Committee hereunder), the Compensation Committee shall have the
authority, in its discretion:

	 	*	 	to approve the Performance Goals;

 

 

	 	*	 	to construe and interpret the terms of the Bonus Plan and bonuses awarded under the Bonus
Plan;
	 
	 	*	 	to establish and approve additional terms, conditions, rules or procedures for the
administration of the Bonus Plan; and
	 
	 	*	 	to take such other action, not inconsistent with the terms of the Bonus Plan, as the
Compensation Committee deems appropriate.

(c) Indemnification. In addition to such other rights of indemnification as they may have
as members of the Board, members of the Compensation Committee who administer the Bonus Plan shall
be defended and indemnified by the company to the extent permitted by law on an after-tax basis
against all reasonable expenses (including attorneys’ fees), actually and necessarily incurred in
connection with the defense of any claim, investigation, 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 Bonus Plan, or any bonus awarded
hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is
approved by the company) or paid by them in satisfaction of a judgment in any such claim,
investigation, action, suit or proceeding, except in relation to matters as to which it shall be
adjudged in such claim, investigation, action, suit or proceeding that such person is liable for
gross negligence, bad faith or intentional misconduct; provided, however, that within 30 days after
the institution of such claim, investigation, action, suit or proceeding, such person shall offer
to the company, in writing, the opportunity at the company’s expense to handle and defend the same.

     Amendment, Suspension or Termination of the Plan.

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

Unfunded Obligation.

Executive officers who are eligible to participate in the Bonus Plan shall have the status of
general unsecured creditors of the company. Any amounts payable to such employees pursuant to the
Bonus Plan shall be unfunded and unsecured obligations for all purposes, including, without
limitation, Title I of the Employee Retirement Income Security Act of 1974, as amended. The company
shall not be required to segregate any monies from its general funds, or to create any trusts, or
establish any special accounts with respect to such obligations. Eligible executive officers shall
have no claim against the company for any changes in the value of any assets that may be invested
or reinvested by the company with respect to the Bonus Plan.Ex-10.1

 

Exhibit 10.1

AMENDMENT NO. 1

TO THE

CT COMMUNICATIONS, INC.

AMENDED AND RESTATED 2001 STOCK INCENTIVE PLAN

     Pursuant to Section 5.3 of the he CT Communications, Inc. Amended and Restated 2001 Stock
Incentive Plan (the “Plan”), the Plan is amended as set forth below, effective as of July 28, 2006:

	1.	 	The Plan is amended to add a new Section 12.5 thereto to read as follows:

“12.5 Stock Withholding

     To the extent the Award Agreement so provides, the payment of the Option Price
for shares of Stock purchased pursuant to the exercise of an Option may be made, in
whole or in part, by directing the Company to withhold such number of shares of
Stock issuable upon the exercise of the Option equal in value to that portion of the
Option Price to be paid pursuant to the stock surrender provisions. The value of
the shares of Stock for purposes of determining the extent to which the Option Price
has been paid will be determined using the Fair Market Value on the date of
exercise.”

	2.	 	The Plan shall otherwise be unchanged by this Amendment No. 1.

	 	 	The foregoing Amendment No.1 was duly adopted and approved by the Board of Directors of CT
Communications, Inc. on July 28, 2006.

	 	 	 	 	 
	 	 	 
	 	                                                    /s/ David H. Armistead
 	 
	 	SecretaryEX-10.2

 

Exhibit 10.2

FORM OF AMENDMENT NO. 1

TO THE

CT COMMUNICATIONS, INC.

AMENDED AND RESTATED 2001 STOCK INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AGREEMENT

     This Amendment No. 1 (the “Amendment”) to the CT Communications, Inc. Amended and Restated
2001 Stock Incentive Plan Non-Qualified Stock Option Agreement(s) identified on Exhibit A attached
hereto and incorporated herein (the “Option Agreement”) with                      (the “Optionee”) is made
as of July 28, 2006 by CT Communications, Inc., a North Carolina corporation (the “Company”).

     WHEREAS, the Company has determined that it is in the best interests of both the Company and
the Optionee to amend the Option Agreement to provide that the Option Price, as defined in the
Option Agreement, may be paid, in whole or in part, by withholding shares of the Company’s common
stock otherwise issuable pursuant to the terms of the Option Agreement.

     NOW, THEREFORE, BE IT RESOLVED, that the Option Agreement is amended as follows:

	1.	 	The Section labeled Form of Payment is deleted in its entirety and restated in its entirety
to read as follows:

	 
	 	 	“When you submit your notice of exercise, you must include payment of the Option
Price for the shares you are purchasing. Payment may be made in one (or a
combination) of the following forms:

	 	•	 	Cash, your personal check, a cashier’s check, a money order or
another cash equivalent acceptable to the Company.

	 
	 	•	 	Shares of Stock which have already been owned by you and which
are surrendered to the Company. The value of the shares, determined as of
the effective date of the option exercise, will be applied to the Option
Price.

	 
	 	•	 	By directing the Company to withhold shares of Stock issuable
on the exercise of the option equal in value to that portion of the Option
Price to be paid by the surrender of shares. The value of the shares will
be determined as of the effective date of the option exercise.

	 
	 	•	 	To the extent a public market for the Stock exists as
determined by the Company, by delivery (on a form prescribed by the
Company) of an irrevocable direction to a licensed securities broker
acceptable to the Company to sell Stock and to deliver all or part of the
sale proceeds to the Company in payment of the aggregate Option Price and
any withholding taxes.

	2.	 	Except as expressly provided herein, the terms and conditions of the Option Agreement shall
remain in full force and effect.

     IN WITNESS WHEREOF, the Company has duly executed and delivered this Amendment No. 1, or has
caused this Amendment No. 1 to be duly executed and delivered in its name and on its behalf, as of
the day and year first above written.

	 	 	 	 	 
	CT COMMUNICATIONS, INC.
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Its:
	 	 	 	 
	 

	 	 

	 	 

41

 

EXHIBIT A

TO THE

AMENDMENT NO. 1

TO THE

CT COMMUNICATIONS, INC.

AMENDED AND RESTATED 2001 STOCK INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AGREEMENT

Optionee:                     

	 	 	 	 	 
	Agreement Date	 	Number of Options	 	Option Price
	 
	 	 	 	 

42

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