Document:

ex_10-2.htm

SECOND AMENDMENT TO THE

RUBY TUESDAY, INC. STOCK INCENTIVE AND

DEFERRED COMPENSATION PLAN FOR DIRECTORS

(AS AMENDED AND RESTATED AS OF OCTOBER 8, 2008)

THIS SECOND AMENDMENT is made on this 5th day of January, 2012 by Ruby Tuesday, Inc. a corporation duly organized and existing under the laws of the State of Georgia (hereinafter called the “Primary Sponsor”).

WITNESSETH:

WHEREAS, the Primary Sponsor maintains the Ruby Tuesday, Inc. Stock Incentive and Deferred Compensation Plan for Directors (the “Plan”) under an amended and restated indenture which became effective as of October 8, 2008 and was subsequently amended by the First Amendment thereto dated July 21, 2011; and

WHEREAS, the Primary Sponsor now wishes to amend the Plan to reduce the aggregate annual award value; to provide the Committee (as defined in the Plan) with the discretion to include specified accelerated vesting events as terms in both newly granted and outstanding Annual Options (as defined in the Plan) and Restricted Stock Awards (as defined in the Plan); and to modify the scheduled vesting dates for Restricted Stock Awards.

NOW, THEREFORE, the Primary Sponsor does hereby amend the Plan, effective with respect to Stock Incentives (as defined in the Plan) granted on and after the date this Second Amendment is approved by the Board of Directors of the Primary Sponsor, as follows:

1.           By deleting Subsection (c) of Section 1.1 in its entirety and by substituting therefor the following:

 

“(c)           ‘Award Value’ means an amount equal to $80,000, adjusted cumulatively thereafter on an annual basis for inflation based on the twelve months’ percent change in the national Consumer Price Index for all Urban Consumers (CPI-U), US City Average for All Items, not seasonally adjusted, for the fiscal year of the Company ending prior to the date of grant.”

2.           By deleting Subsection (a) of Section 3.2 in its entirety and by substituting therefor the following:

         “(a)           Vesting.  Each Annual Option granted under this Plan is exercisable by whom, at such time or times, or upon the occurrence of such event or events, and in such amounts, as the Committee specifies in the Stock Incentive Agreement; provided, however, that no Annual Option shall initially provide a vesting schedule permitting the exercise of any portion of an Annual Option any earlier than on the day immediately preceding the first anniversary of the grant date for that Annual Option, unless the next regularly scheduled annual meeting of  the Company’s stockholders following the grant date falls on a date prior to the first anniversary of the grant date, in which case the Annual Option shall vest on the day immediately prior to such earlier date, provided the Participant remains a member of the Board of Directors as of such date.  Notwithstanding the foregoing, the terms of a Stock Incentive Agreement, or any amendment thereto, may include terms accelerating the time or times at which an Annual 

 

  

  

  

 

Option, or any portion thereof, may be exercised upon the occurrence of specified events, including, without limitation, upon death, Disability, attainment of age seventy (70), retirement or a Change in Control.  Any portion of an Annual Option that has not become exercisable as of the date the Participant’s service as a director of the Company ceases, that unvested portion of the Annual Option shall be forfeited.

 

3.           By deleting Section 4.3 in its entirety and by substituting therefor the following:

“4.3           Vesting.  The shares of Stock subject to a Restricted Stock Award shall vest on the day immediately preceding the first anniversary of the grant date for that Restricted Stock Award, unless the next regularly scheduled annual meeting of  the Company’s stockholders following the grant date falls on a date prior to the first anniversary of the grant date, in which case the Restricted Stock Award shall vest on the day immediately prior to such earlier date (in either case, the “Scheduled Vesting Date”), provided the Participant remains a member of the Board of Directors as of the Scheduled Vesting Date.  In the event a Participant ceases to be a member of the Board of Directors prior to the Scheduled Vesting Date of a Restricted Stock Award, all unvested shares under that Restricted Stock Award shall be forfeited.  Notwithstanding the preceding sentence, to the extent determined by the Committee in the applicable Stock Incentive Agreement, or any amendment thereto, all shares of Stock subject to a Restricted Stock Award may become vested prior to the Scheduled Vesting Date on any one or more of the following earlier events:  (a) the Participant’s death or Disability; (b) upon the Participant attaining age seventy (70); (c) retirement; or (d) upon a Change in Control.”

Except as specifically amended hereby, the Plan shall remain in full force and effect prior to this Second Amendment.

IN WITNESS WHEREOF, the Primary Sponsor has caused this Second Amendment to be executed on the day and year first above written.

RUBY TUESDAY, INC.

 

By:      /s/ Samuel E. Beall, III

Samuel E. Beall, III

Chairman of the Board,

Chief Executive Officer and President

ATTEST:

By:         /s/ Scarlett May

Scarlett May

Secretary

[CORPORATE SEAL]ex_10-3.htm

THIRD AMENDMENT TO THE

RUBY TUESDAY, INC.

2003 STOCK INCENTIVE PLAN

THIS THIRD AMENDMENT is made as of this 20th day of July, 2011, by Ruby Tuesday, Inc., a corporation organized and existing under the laws of the State of Georgia (hereinafter called the “Company”).

W I T N E S S E T H:

WHEREAS, the Company maintains the Ruby Tuesday, Inc. 2003 Stock Incentive Plan (the “Plan”) under an amended and restated indenture dated as of July 9, 2003, as amended by the First and Second Amendments thereto;

WHEREAS, the Company wishes to amend the Plan primarily to make changes to the Plan to revise the performance goals used to qualify certain awards as performance-based compensation under Section 162(m) of the Internal Revenue Code; and

WHEREAS, this Third Amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this amendment.

NOW, THEREFORE, the Company does hereby amend the Plan, effective as of various dates indicated below, as follows:

1. By deleting Section 1.1(l-1) in its entirety and substituting therefor the following:

“(l-1)           ‘Performance Goals’ means the measurable performance objectives, if any, established by the Committee for a Performance Period that are to be achieved with respect to a Stock Incentive granted to a Participant under the Plan.  Performance Goals may be described in terms of (i) Company-wide objectives, (ii) objectives that are related to performance of the division, department or function within the Company or an affiliate in which the Participant receiving the Stock Incentive is employed or on which the Participant’s efforts have the most influence, (iii) performance solely in relation to objectives achieved during the Performance Period or as compared to past performance periods, and/or (iv) performance relative to the performance by a company or group of companies selected by the Committee with respect to one or more Performance Goals established by the Committee. The Performance Goal(s) established by the Committee under an objective formula for any Performance Period under the Plan will consist of one or more of the following criteria:

 

	
Cash flow

 

Earnings before interest, taxes, 

depreciation and amortization 

(EBITDA)

 

Earnings per share (EPS)

 

	
Retention of Company team members 

in general or in any specific category or 

level of employment

 

Earnings before interest, depreciation 

and amortization (EBIDA)

 

  

  

  

 

	
Net operating profit after taxes 

(NOPAT)

 

Return on assets (ROA)

 

Return on net assets (RONA)

 

Return on equity (ROE)

 

Return on invested capital (ROIC)

 

Company, franchise or system same 

restaurant sales (SRS)

 

Company, franchise or system traffic 

growth (Guest Count Growth)

 

Market share or related strength of 

brand measures related to consumer 

perception, including but not limited 

to brand relevance and guest 

satisfaction, in each case based on 

objective data such as guest or market 

surveys

 

Economic value added (dollar spread 

between return on capital and cost of 

capital) (EVA)

 

Gross revenues

 

Operating income

 

Operating cash flow

 

Revenue, less cost of merchandise, 

payroll and related costs and other 

restaurant operating costs (Gross 

profit)

	
Earnings before interest and taxes 

(EBIT)

 

Earnings before interest, taxes, 

depreciation, amortization and rent 

(EBITDAR)

 

Company, franchise or system 

restaurant growth in number of new 

restaurants

 

Average restaurant volume growth

 

Fixed charge coverage ratio

 

Sales and earnings performance

 

Total shareholder return

 

General and administrative costs (as a 

percentage of net sales or flat dollar 

amount)

 

Consolidated net income

 

Management of capital or operating 

expenditures

 

Appreciation of stock price

 

Market value added (Company market 

value less total capital employed)

 

Debt levels, either alone or as a 

percentage of any other Performance 

Goal

If the Committee determines that, as a result of a change in the business, operations, corporate structure or capital structure of the Company, or the manner in which the Company conducts its business, or any other events or circumstances, including, but not limited to a change in applicable law, the Performance Goals are no longer suitable, the Committee may in its discretion modify such Performance Goals or the related minimum acceptable level of achievement, in whole or in part, with respect to a period as the Committee deems appropriate and equitable.  For example, the Committee may appropriately adjust any evaluation of performance under a Performance Goal to remove the effect of equity compensation expense under Financial Accounting Standards No. 123R; amortization of acquired technology and intangibles; asset write-downs; litigation or claim judgments or settlements; changes in or provisions under tax law, accounting principles or other such laws or provisions affecting reported results; accruals for reorganization and restructuring programs; discontinued operations; and any items that are extraordinary, unusual in nature, non-recurring or infrequent in occurrence.  In any 

 

  

  

  

 

such case, the Committee shall consider whether any modification of the Performance Goals or minimum acceptable level of achievement would cause the exemption under Code Section 162(m) to become unavailable.”

2.   By adding a new Subsection (h) to Section 3.1, as follows:

“(h)           Dividends payable on Stock subject to a Stock Incentive and dividend equivalent rights payable with respect to a Stock Incentive shall not be paid prior to the vesting of the portion of the Stock Incentive to which they relate.”

3.   By deleting Clause (iv) of Subsection 3.2(a) and substituting therefor the following

“(iv)           No Repricing or Buyouts.  Except as provided in Section 5.2, without the approval of the Company’s stockholders, the Exercise Price of an Option may not be reduced, directly or indirectly, after the grant of the Option, including any surrender of the Option in consideration of, or in exchange for: (1) the grant of a new Option having an Exercise Price below that of the Option that was surrendered; (2) Stock; (3) cash; or (4) any other Stock Incentive.”

4.   By deleting from Subsection (c) of Section 3.2 the phrase “for at least six (6) months prior to the date of exercise”.

5.           By adding a new Subsection (f) to Section 3.2, as follows:

“(f)           No Reload Grants.   Options shall not be granted under the Plan in consideration for and shall not be conditioned upon the delivery of shares of Stock to the Company in payment of the exercise price and/or tax withholding obligation under any other option held by a Participant.”

6.           By deleting Subsection (b) of Section 3.4 in its entirety and substituting therefor the following:

“(b)           Any Stock Award that does not contain forfeitability provisions based upon Performance Goals shall vest over a period of no less than two (2) years, subject to exceptions for death, Disability, retirement and similar events as may be prescribed by the Committee.”

7.           By adding a new Subsection (d) to Section 3.4, as follows:

“(d)           Minimum Holding Period.  Any Stock Award granted under the Plan shall provide that the Stock subject to the Stock Award, net of shares of Stock withheld or otherwise applied to satisfy tax withholding obligations, shall be subject to a minimum holding period of six (6) months from the date the shares of Stock cease to be forfeitable, subject to exceptions for death, Disability, retirement and similar events as may be prescribed by the Committee.”

8.           By deleting Section 5.3 and substituting therefor the following:  “[Reserved.]”

  

  

  

 

The provisions of the Plan, as amended by this Third Amendment, shall become effective with respect to Stock Incentives granted on and after the date it is approved by stockholders at the 2011 annual meeting of the Company’s stockholders and if the stockholders of the Company fail to approve the Third Amendment at the 2011 annual meeting of shareholders, the Third Amendment shall be null and void but only as to those amendments pertaining to the use of Performance Goals (Paragraph 1 hereof).  In that event, the surviving provisions of the Third Amendment shall be effective with respect to Stock Incentives granted on and after the date of the 2011 annual meeting of stockholders, regardless of whether stockholder approval is received.

IN WITNESS WHEREOF, the Company has caused this Third Amendment to be executed as of the day and year first above written.

 

RUBY TUESDAY, INC.

 

By:    /s/ Samuel E. Beall, III

Samuel E. Beall, III

Chairman of the Board,

Chief Executive Officer and President

ATTEST:

By:         /s/ Scarlett May

Scarlett May

Secretary

[CORPORATE SEAL]

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