Document:

LNCE-04.04.2015-EX10.1

EXHIBIT 10.1
SNYDER’S-LANCE, INC.
Annual Performance Incentive Plan for Officers and Key Managers

Purposes and Introduction.  The Annual Performance Incentive Plan for Officers and Key Managers (the “Plan”) provides the framework for establishing annual Performance Cash Awards under the Snyder’s-Lance, Inc. 2012 Key Employee Incentive Plan (the “Incentive Plan”).  Except as otherwise expressly defined herein, capitalized terms shall be as defined in the Incentive Plan.  The primary purposes of the Plan are to:

		
	•
	Motivate behaviors that lead to the successful achievement of specific sales, financial and operations goals that support Snyder’s-Lance, Inc. stated business strategy and to align participants’ interests with those of stockholders.

		
	•
	Emphasize link between participants’ performance and rewards for meeting predetermined, specific goals.

		
	•
	Focus participant’s attention on operational effectiveness from both an earnings and an investment perspective.

		
	•
	Promote the performance orientation at Snyder’s-Lance, Inc. and communicate to employees that greater responsibility carries greater rewards.

Plan Year.  The period over which performance will be measured is the Company’s fiscal year (the “Plan Year”).

Eligibility and Participation.  Eligibility in the Plan is limited to Officers and Key Managers of Snyder’s-Lance, Inc. who are key to Snyder’s-Lance, Inc. success. The Compensation Committee of the Board of Directors (the “Compensation Committee”) will review and approve for each Plan Year the participants nominated by the Chief Executive Officer.  Participation in one year does not guarantee participation in a following year, but instead will be reevaluated and determined on an annual basis.  
    
Target Incentives Awards.  Each participant will be assigned a Target Incentive expressed as a percentage of his or her base salary.  Participants may be assigned Target Incentives by position, by salary level or based on other factors as determined by the Compensation Committee.  Target Incentives will be reevaluated at least every other year, if not annually.  If the job responsibility of a position changes during the year, or base salary is increased significantly, the Target Incentive shall be revised as appropriate.  Target Incentives will be communicated to each participant as close to the beginning of the year as practicable, in writing.  Final awards will be calculated by multiplying each participant’s Target Incentive by the appropriate percentage (based on performance for the year, as described below).

Performance Goals and Award Funding.  For each Plan Year, the Compensation Committee will establish the applicable Performance Goals and formula, including Threshold, Target and Maximum performance levels.  If more than one Performance Goal applies for a Plan year, the Compensation Committee will establish the relative weighting of the Performance Goals.  For awards intended to be Qualified Performance-Based Awards, the Compensation Committee will establish the Performance Goals in a manner consistent with that intent.  Award funding levels will be determined based on actual performance as follows:

	
				
	 
	Threshold
	Target
	Maximum

	Award Level Funded
	TBD
	100.00%
	TBD

 1

The Threshold and Maximum funding levels will be determined by the Compensation Committee each year.  Percent of payout will be determined on a straight line basis from Threshold to Target and from Target to Maximum.  There will be no payout unless the Threshold for the applicable Performance Goal is reached.  Threshold, Target and Maximum levels will be defined at the beginning of each Plan Year for each Performance Goal.  The Performance Goals and formula will be communicated to each participant as soon as practicable after they have been established.  Final Target Incentive Awards will be calculated after the Compensation Committee has reviewed the Company’s audited financial statements for the Plan Year and determined the performance level achieved. The following definitions for the terms Maximum, Target and Threshold should help set the goals for each year, as well as evaluate the payouts:
		
	•
	Maximum:  Excellent; deserves an above-market incentive

		
	•
	Target:  Normal or expected performance; deserves market-level incentive

		
	•
	Threshold: Lowest level of performance deserving payment above base salary; deserves below-market incentive

Form and Timing of Payments.  Final award payments for a Plan Year will be made in cash as soon as practicable after award amounts are approved by the Compensation Committee, but not more than 75 days after the end of the Plan Year.  All awards will be rounded to the nearest $100.

Change in Status.  An employee hired into an eligible position during the Plan Year may participate in the Plan for the balance of the Plan Year on a pro rata basis.

Certain Terminations of Employment.  In the event a participant voluntarily terminates employment (other than Retirement) or is terminated involuntarily during the Plan Year, any award will be forfeited.  In the event of death, Disability or Retirement during the Plan Year, the award will be paid on a pro rata basis based on the actual performance determined after the end of the Plan Year.  In the event of any termination of employment after the end of the Plan Year (including death, Disability, Retirement, voluntary termination or involuntary termination for any reason), any award will be determined based on actual performance and paid at the same time as awards are paid to all other participants.  “Retirement” is defined under the Incentive Plan to mean the participant’s termination of employment with the Company either (i) after attainment of age 65 or (ii) after attainment of age 55 with the prior consent of the Compensation Committee.

Change In Control.  In the event of a Change in Control, pro rata payouts will be made at target for the year-to-date, based on the number of days in the Plan Year preceding the closing of the Change in Control transaction.  Payouts will be made within 30 days after the relevant transaction has been closed.

Withholding.  The Company shall withhold from award payments any Federal, foreign, state or local income or other taxes required to be withheld.

Communications.  Progress reports should be made to participants quarterly showing the year-to-date performance results and the percentage of Target Incentives that would be earned if results remain at that level for the entire year.

Executive Officers.  Notwithstanding any provisions to the contrary above, participation, Target Incentive Awards and pro-rations for executive officers, including the Chief Executive Officer, shall be approved by the Compensation Committee.

Stockholder Approval.  The Plan and the awards hereunder are made pursuant to the Incentive Plan, which was most recently approved by the Company’s stockholders at the Annual Meeting of Stockholders held on May 3, 2012.

 2

Governance. The Compensation Committee is ultimately responsible for the administration and governance of the Plan.  Actions requiring Compensation Committee approval include final determination of plan eligibility and participation, identification of performance measures, performance objectives and final award determination.  The Compensation Committee may adjust any award due to extraordinary events such as acquisitions, dispositions, discontinued operations, required accounting adjustments or similar events, all as specified in Section 11(d) of the Incentive Plan; provided, however, that the Compensation Committee shall at all times be required to exercise this discretionary power in a manner, and subject to such limitations, as will permit all payments under the Plan to “covered employees,” as defined in Section 162(m) of the Internal Revenue Code, to continue to qualify as “performance-based compensation” for purposes of Section 162(m) of the Code.  In addition, under the Incentive Plan, the Compensation Committee retains the discretion to reduce any award amount from the amount otherwise determined under the applicable formula.  Subject to the foregoing, the decisions of the Compensation Committee shall be conclusive and binding on all participants.

AMENDED AND APPROVED BY THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF THE CORPORATION ON FEBRUARY 9, 2015

 3LNCE-04.04.2015-EX10.2

    
                                            

EXHIBIT 10.2

SNYDER'S OF HANOVER, INC.

NON-QUALIFIED STOCK OPTION PLAN

Amended and Restated Effective May 6, 2015

Snyder’s of Hanover, Inc. (“Snyder’s”) adopted the Snyder’s of Hanover, Inc. Non-Qualified Stock Option Plan, as amended and restated, (the “Plan”) and Snyder’s-Lance, Inc. (the “Company”) now desires to restate the Plan to reflect the completion of the business combination of Snyder’s and Lance, Inc. (“Lance”) which combined company is known as Snyder’s-Lance, Inc., and the merger of Snyder’s with Lima Merger Corp., a wholly-owned subsidiary of Lance (“Merger Sub”), with Snyder’s continuing as the surviving subsidiary of Lance, as provided in that certain Agreement and Plan of Merger, dated as of July 21, 2010 and amended as of September 30, 2010 (the “Merger Agreement”), entered into by and among Snyder’s, Lance and Merger Sub.  The Plan is restated effective as of May 6, 2015, as follows:

	
		
	I.
	Purpose

Snyder’s-Lance, Inc. (the “Company”) desires to attract and retain the best available personnel and to enhance the long-term growth of the Company's earnings.  The Company believes it will achieve its goals most effectively by providing key individuals with long-term incentives based upon the growth of the value per share of the Company's stock.

	
		
	II.
	Scope

The Company is adopting the stock option plan to provide Non-Qualified Stock Options (collectively, the "Options" and individually, an "Option") to the Company's Chairman, President/CEO, Vice Presidents and Board of Directors (the "Participants" or a "Participant").

Initially, Snyder’s will reserve 800 shares of its Class B, non-voting common stock, par value $100 per share (the "Shares" or a "Share"), for issuance under the Plan.  Adjusted for stock splits and the business combination of Snyder’s and Lance the original 800 shares has become 3,296,105 shares of Common Stock of the Company.

	
		
	III.
	Administration

This Plan will be administered by the Compensation Committee of the Board of Directors (the “Committee”) of the Company (formerly Lance, Inc.).

	
		
	IV.
	Eligibility

Awards may be made to any Participant selected by the Committee.

    
                                            

	
		
	V.
	Option Price

The purchase price of each Share subject to an Option shall be its fair market value at the date the Option is granted ("Option Price"), as defined in IRS Regulations under Internal Revenue Code Section 409A and as determined by an appraisal performed by an independent third party appraisal firm retained by the Board.  Specifically, the Committee shall set the purchase price at the most recent such appraised fair market value determined by the appraiser that may be used as a fair market value option price under those Regulations.

	
		
	VI.
	Option Grants

A.    Option Grants.  The grant of an Option under this Plan will be evidenced by an option agreement (the "Option Agreement") between the Company and the Participant granted an Option (the "Optionee") in a form approved by the Committee.  The Option Agreement will contain the terms set forth in this Plan and such additional terms and conditions as may be prescribed by the Committee from time to time.

B.    Committee Determinations.      The Committee designates those Participants to whom Options are granted and the number of Shares represented by the Option.  
    
	
		
	VII.
	Vesting of Options

Options awarded to a Participant because of the Participant’s status as Chairman, President/CEO, Vice President, or other employee of the Company shall vest when the employee has been a Participant in the Plan for five years.  Options awarded to a Participant because of the Participant’s status as a Director of the Company shall be immediately vested when granted.

	
		
	VIII.
	Maximum Term; Exercise of Options

Options shall be exercised on or before the date which is 15 years after the date of grant. Thereafter, such Options shall expire.  Upon vesting, Options may be exercised by the Optionee or, in the event of the death or total disability (as hereinafter defined) of the Optionee by the Optionee's guardian, legal representative or designated beneficiary, at any time before the date of the expiration or earlier termination of the Options.  The Option Price may be paid in cash or by delivery of Shares owned by the Optionee having a fair market value (as defined in V. above) equal to the Option Price or in a combination of cash and Shares having a fair market value (as defined in V. above) equal to the Option Price.

	
		
	IX.
	Effect of Death, Disability or Other Events on Vesting

In the event an Optionee dies or suffers a "total disability," or upon Other Events, the Optionee will vest 100% in the Options he or she has been granted.  In such event, the Optionee, the Optionee’s guardian, legal representative or designated beneficiary shall have 360 days to exercise any Options vested on the date of the event.  All Options which are unexercised within 360 days after death, “total disability,” or upon Other Events shall be forfeited.

    
                                            

For purposes of this Plan, the term "total disability" shall mean the inability of a Participant to engage in his usual and customary employment with the Company by reason of any medically determinable physical or mental impairment, which in the opinion of the Committee, can be expected to result in death or to last for a continuous period of at least twelve months.  The term “Other Events” shall mean (i) the sale, exchange, transfer or other disposition of substantially all of the Company’s assets, except to an entity, controlled, directly or indirectly, by the Company; or (ii) a merger, consolidation or other reorganization of the Company, except where the resulting entity is controlled, directly or indirectly, by the Company or where the shareholders of the Company immediately prior to consummation of any such transaction continue to hold at least a majority of the voting power of the outstanding voting securities of the legal entity resulting from such transaction. 

	
		
	X.
	Exercise on Termination of Employment

Upon a termination of an Optionee's employment relationship with the Company for any reason other than death or “total disability” or if a director Optionee ceases to be a director of the Company, he or she shall have 90 days to exercise any Option vested on the date of termination.  All Options which are non-vested on the date of termination shall be forfeited and all vested Options which are unexercised within 90 days after termination shall be forfeited.

Optionees who voluntarily terminate employment with the Company after 10 years of service or more and who are not seeking or accepting full-time  employment or other gainful activity shall be exempt from the requirement to exercise all of their Options within 90 days of the date of the Optionee’s retirement.  These Optionees shall be granted the right to hold their Options until the expiration date of each of their Options or for a period of five years from their termination date, whichever comes first.  Any options not exercised within this five year period will terminate.  

	
		
	XI.
	[Reserved]

    
	
		
	XII.
	[Reserved]

	
		
	XIII.
	Changes in Company's Capital Structure

The existence of outstanding Options shall not affect in any way the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalization, reorganizations, exchanges, or other changes in the Company's capital structure or its business, or any merger or consolidation of the Company, or any issuance of common stock or other securities or subscription rights thereto, or any issuance of bonds, debentures, preferred or prior preference stock ahead of or affecting the Shares or the rights thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.  However, if outstanding Shares for which an Option is exercisable shall at any time be changed or exchanged by declaration of a stock dividend, stock split, combination of shares, 

    
                                            

recapitalization, or reorganization, the number of Shares subject to Options, and the Option Price, shall be appropriately and equitably adjusted so as to maintain the proportionate number of shares or other securities without changing the aggregate Option Price.

	
		
	XIV.
	No Right to Company Employment

Nothing in this Plan or as a result of any Option granted pursuant to this Plan shall confer on any individual any right to continue in the employ of the Company or interfere in any way with the right of the Company to terminate an individual's employment at any time.

	
		
	XV.
	Amendment or Termination of Plan

The Committee may at any time from time to time amend the Plan, or may terminate this Plan.

	
		
	XVI.
	Option Grants are Discretionary

The grant of any Option is entirely discretionary and nothing in this Plan shall be deemed to give any employee any right to receive Options not specifically granted by the Committee.

	
		
	XVII.
	Liability

No member of the Committee shall be liable for any act or omission relating to the administration of the Plan, except for acts which constitute gross negligence or willful misconduct.

	
		
	XVIII.
	Effective Date

This Amended and Restated Plan is effective as of May 6, 2015.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00245-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00245-of-00352.parquet"}]]