Document:

bay_ex101.htm

Exhibit 10.1

BAY ACQUISITION CORP.

(formerly known as SecureLogic Corp.)

420 Lexington Avenue

Suite 2320

New York, NY 10170

December 10, 2012

Via email

Mr. J. P. McCormick

Re  Offer of Employment by Bay Acquisitions Inc.

Dear J.P.:

I am very pleased to offer you employment with Bay Acquisitions, Inc., a Nevada corporation (the "Company"), in the positions of President and Chief Financial Officer, reporting to the Company's Board of Directors.

1. Salary. Your salary will be initially $125,000 per year and will be automatically increased to $175,000 per year at such time as when the Company closes on a financing with gross proceeds of at least $1,000,000 (your "Salary"), less all applicable deductions required by law, which shall be payable at the times and in the installments consistent with the Company's then current payroll practice. Your Salary is subject to periodic review and adjustment in accordance with the Company's policies as in effect from time to time.

2.  Commencement Date.  Your employment will commence on December 17, 2012 (the “Commencement Date”).  Prior to the Commencement Date you agree to provide the Company with such services as are reasonably necessary to familiarize yourself with the operations of goozex.com and the Goozex business model (the “Consulting Services”).  The Company will compensation you for the Consulting Services on a pro rata basis based upon the annual salary set forth above.

3. Equity Incentives.  Upon your execution of this Agreement, you will receive an incentive option (the “First Option”) to purchase such number of shares of the Company’s common stock which equals three percent (3%) of the number of shares of the Company’s common stock issued and outstanding as of the date hereof (the “Base Share Number”).  The First Option shall have an exercise price equal to the closing price for the Company’s common stock as of the date hereof, will be valid for a period of five years from issuance and will contain a cashless exercise provision.

 

  

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In the event that during the calendar year commencing January 1, 2013, the Company achieves total gross revenue of at least $400,000 (the “Second Option Revenue Threshold”), you will be issued, as of the first day of the calendar month following the date on which the Second Option Revenue Threshold was achieved, an additional option (the “Second Option”) to purchase such number of shares of the Company’s common stock which equals two percent (2%) of the Base Share Number at an exercise price equal to the closing price for the Company’s common stock as of the date that the Second Option is issued.  Except as stated in this paragraph, the Second Option shall contain the same terms and conditions as the First Option.

In the event that at any time commencing January 1, 2013, the Company achieves total gross revenue of at least $1,000,000 (the “Third Option Revenue Threshold”), you will be issued, as of the first day of the calendar month following the date on which the Second Option Revenue Threshold was achieved, an additional option (the “Third Option”) to purchase such number of shares of the Company’s common stock which equals three percent (3%) of the Base Share Number at an exercise price equal to the closing price for the Company’s common stock as of the date that the Third Option is issued. Except as stated in this paragraph, the Third Option shall contain the same terms and conditions as the First Option.

 

4. Benefits. You will continue to be eligible to participate in the insurance programs and other employee benefit plans established by the Company for its employees from time to time in accordance with the terms of those programs and plans. The Company reserves the right to change the terms of its programs and plans at any time.

5. Confidentiality. As an employee of the Company, you have access to certain confidential information of the Company and you may, during the course of your employment, develop certain information or inventions that will be the property of the Company. To protect the interests of the Company, you signed the Company's standard Employee Invention Assignment and Confidentiality Agreement (the "Confidentiality Agreement," the terms of which are incorporated by reference herein) as a condition of your employment. We wish to impress upon you that we do not want you to, and we have directed you not to, bring with you any confidential or proprietary material of any former employer or to violate any other obligations you may have to any former employer. During the period that you render services to the Company, you have agreed and continue to agree to not engage in any employment, business or activity that is in any way competitive with the business or proposed business of the Company. You will disclose to the Company in writing any other gainful employment, business or activity that you are currently associated with or participate in that competes with the Company. You will not assist any other person or organization in competing with the Company or in preparing to engage in competition with the business or proposed business of the Company. You represent that your signing of this Letter, each agreement setting forth the terms and conditions of the stock awards granted to you, if any, under the Company's equity plans, and the Confidentiality Agreement, and your commencement of employment with the Company, do not violate any agreement in place (either on the date you commenced employment with the Company or now) between yourself and current or past employers.

6. Termination

(a) Resignation; Termination for Cause; Termination Due to Death or Disability. If, at any time, (i) you resign your employment for any reason, (ii) the Company terminates your employment for Cause (as defined in Section 7), or (iii) either party terminates your employment as a result of your death or disability, you will receive your Salary accrued through your last day of employment, as well as any unused vacation (if applicable) accrued through your last day of employment.

(b) Termination without Cause. If, at any time, the Company terminates your employment without Cause, and other than as a result of your death or disability, any unearned incentive options will be deemed earned as of the date of termination and issued to you with an exercise price equal to the closing price of the Company’s common stock on the date of termination.

 

  

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7. Definition of Cause. For purposes of this Letter, "Cause" means your termination because of: (a) any willful, material violation by you of any law or regulation applicable to the business of the Company, or your conviction for, or guilty plea to, a felony or a crime involving moral turpitude, or any willful perpetration by you of a common law fraud; (b) your commission of an act of personal dishonesty that involves personal profit in connection with the Company or any other entity having a business relationship with the Company; (c) any material breach by you of any provision of any agreement or understanding between the Company and you regarding the terms of your service as an employee, officer, director, or consultant to the Company, including without limitation your willful and continued failure or refusal to perform the material duties required of an employee, officer, director, or consultant of the Company (other than as a result of having a disability that prevents you from performing the material duties of a person holding your positions with the Company for a period of at least 120 days), or a breach by you of your Confidentiality Agreement or similar agreement between the Company and you; (d) your disregard of the policies of the Company so as to cause loss, damage, or injury to the property, reputation, or employees of the Company; or (e) any other misconduct by you that is materially injurious to the financial condition or business reputation of, or is otherwise materially injurious to, the Company.

8. At Will Employment. While we look forward to a long and profitable relationship, you will be an at will employee of the Company, which means the employment relationship can be terminated by either of us for any reason, at any time, with or without prior notice and with or without cause. Any statements or representations to the contrary (and any statements contradicting any provision in this Letter) should be regarded by you as ineffective. Further, your participation in any stock incentive or benefit program is not to be regarded as assuring you of continuing employment for any particular period of time. Any modification or change in your at will employment status may occur only by way of a written employment agreement signed by you and the Chairman of the Board of Directors of the Company.

9. Entire Agreement. This Letter constitutes the entire agreement and understanding of the parties with respect to the subject matter of this Letter, and supersede any and all prior understandings and agreements, whether oral or written, between or among the parties hereto with respect to the specific subject matter hereof.

10. Acceptance. Please sign the enclosed copy of this Letter in the space indicated and return it to me. Your signature will acknowledge that you have read and understood and agreed to the terms and conditions of this Letter and the attached documents, if any. Should you have anything else that you wish to discuss, please do not hesitate to call me.

 

We look forward to your continued employment with the Company.

 

	 	
Very truly yours,

	 
	 	  	 
	 	
BAY ACQUISITION CORP.

	 
	 	 	 
	 	
/s/ Paul Goodman

	 
	 	
Paul Goodman, President

	 

 

AGREED TO AND ACCEPTED BY

 

	

/s/ J.P. McCormick

	 
	

J.P. McCormick

	 

 

 

3Exhibit 10.1 - 2010 Omnibus Incentive Plan Performance Share Award Form

Exhibit 10.1

QUAD/GRAPHICS, INC.
2010 OMNIBUS INCENTIVE PLAN
PERFORMANCE SHARE AWARD

[Name]
[Address]

Dear ____________________:

You have been granted an Award under the Quad/Graphics, Inc. 2010 Omnibus Incentive Plan (the "Plan") with the following terms and conditions:

		
	Grant Date:
	____________________, 20__

		
	Performance Period:
	____________________, 20__ through ____________________, 20__

		
	Number of Shares Subject to Award (the "Shares"):
	Target:  ____________________ (the "Target Shares")

Threshold:  ____________________
Maximum:  ____________________

		
	Vesting or Forfeiture of Shares:
	You will be granted the Target Shares on the Grant Date.  The Target Shares will be earned or forfeited, and additional Shares up to the maximum set forth above may be granted at the end of the Performance Period, as follows:

		
	•
	All of the Target Shares will be forfeited, and no additional Shares will be granted, if the performance level for each Performance Criteria is below the threshold set forth in the accompanying cover letter at the end of the Performance Period.

		
	•
	The Target Shares will be earned in full if all of the Performance Criteria, as set forth in the accompanying cover letter, are achieved at or above the target level set forth in the cover letter (“Target Performance”) at the end of the Performance Period.  In addition, you will be eligible to be granted additional Shares, up to the maximum set forth above, as determined by the Committee in its sole discretion, based on the Company's achievement of the Performance Criteria set forth in the accompanying cover letter.

		
	•
	For all other performance levels, the Committee will determine in its sole discretion the number of Target Shares that will be earned, if any, the number of Target Shares that will be forfeited, if any, and the number of additional Shares, if any, that will be granted, up to the maximum set forth above.

Any vesting of the Target Shares, and any grant of additional Shares for performance in excess of Target Performance, shall occur upon the Compensation Subcommittee's determination of the Company's achievement of the Performance Criteria.

[Language for Code Section 162(m) Covered Employees:  Notwithstanding anything to the contrary in this Award, you will become eligible to earn the Target Shares granted hereunder and additional Shares up to the maximum set forth above only if the Company achieves the Performance Goal set forth in the accompanying cover letter, as certified in writing by the Compensation Subcommittee.]

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If your employment or service terminates prior to the end of the Performance Period due to death or disability (within the meaning of Code Section 22(e)(3)) (“Disability”), then the Shares subject to this Award will vest or be awarded, as applicable, based on actual performance as determined at the end of the Performance Period. Any vesting or grant of additional Shares shall occur upon the Compensation Subcommittee's determination of the Company's achievement of the Performance Criteria.

If your employment or service terminates as a result of your retirement upon or after age 65 prior to the end of the Performance Period, and such retirement is approved by an authorized senior executive of the Company (other than yourself), then the Shares subject to this Award will vest or be awarded, as applicable, based on actual performance as determined at the end of the Performance Period, but prorated as described below. Any vesting or grant of additional Shares shall occur upon the Compensation Subcommittee's determination of the Company's achievement of the Performance Criteria.

The prorated amount shall be determined by multiplying the relevant number of Shares by a fraction, the numerator of which is the number of days from the Grant Date until the date of the retirement and the denominator of which is the total number of days in the Performance Period.

If your employment or service terminates prior to the end of the Performance Period for any other reason, this Award will terminate in full on the date of such termination and you will immediately forfeit the Target Shares and not earn any additional Shares. Any termination of your employment or service after the end of the Performance Period will not affect the payment of this Award (except to the extent required to comply with Code Section 409A).

		
	Change in Control:
	Effective upon a Change in Control (as defined below), if you are employed by or in service with the Company or an Affiliate immediately prior to the date of such Change in Control, the Target Shares will fully vest immediately, and the remainder of this Award will be cancelled in full.

For purposes of this Award, a “Change in Control” means any event which results in the legal or beneficial ownership of shares of voting stock of the Company granting the holder or holders thereof a majority of the votes for the election of the majority of the Board of Directors (or other supervisory board) of the Company being owned by any person or entity (or group of persons or entities acting in concert) other than any one or more of the following acting alone or in concert: (i) the respective spouses and descendants of Harry V. Quadracci, Harry R. Quadracci or Thomas A. Quadracci and/or the spouses of any such descendants, (ii) the respective executors, administrators, guardians or conservators of the estates of any Harry V. Quadracci, Harry R. Quadracci, Thomas A. Quadracci or the Persons described in clause (i) above, (iii) trustees holding shares of voting stock of the Company for the benefit of any of the persons described in clause (i) or (ii) above and (iv) any employee stock ownership or other benefit plan of the Company (together, the "Permitted Holders"). Notwithstanding the foregoing, the transfer of legal or beneficial ownership of any of the shares of voting stock of the Company to a new entity shall not be a Change in Control if a majority of the voting stock of such new entity is owned by Permitted Holders. In the

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 event such a transfer occurs, the foregoing definition of "Change in Control" shall be construed with respect to the new entity that owns all of the voting stock of the Company (as opposed to the Company itself).

		
	Issuance by Certificate or Book Entry:
	As soon as practicable after the Compensation Subcommittee has certified the Company's achievement of the Performance Criteria after the end of the Performance Period, the Company will issue your earned and vested Shares in your name in certificated form or by book entry; provided that such certification and issuance shall occur not later than the 15th day of the second month after the end of the Performance Period.

		
	Transferability of Shares:
	By accepting this Award, you agree not to sell any Shares acquired under this Award at a time when applicable laws, Company policies or an agreement between the Company and its underwriters prohibit a sale.

		
	Dividends and Dividend Equivalents:
	While the Target Shares are subject to forfeiture, you will be credited with all dividends and other distributions paid with respect to the Target Shares so long as the applicable record date occurs before you forfeit the Target Shares; provided that any such dividends and other distributions will be held in the custody of the Company and will be subject to the same risk of forfeiture, restrictions on transferability and other terms of this Award that apply to the Target Shares with respect to which such distributions were made. All such dividends or other distributions shall be paid to you within 45 days following the full vesting of the Target Shares with respect to which such distributions were made.

You will also be credited with dividend equivalents equal to the amount of any dividends or other distributions paid with respect to the number of Shares subject to this Award in excess of the Target Shares, so long as the applicable record date occurs before you forfeit your rights to the Shares. Any such dividend equivalents will be subject to forfeiture if such Shares are not granted and, if such Shares are granted, then the dividend equivalents will be paid to you within 45 days following such grant.

To the extent necessary to avoid additional tax under Code section 409A, the payment of dividends, other distributions and dividend equivalents shall be delayed until the first day of the seventh month after the month in which your separation from service occurs.

		
	Voting:
	In consideration for your receipt of the Shares subject to this Award, you hereby grant to the Secretary of the Company an irrevocable proxy, coupled with an interest, to vote all of your unvested Target Shares until such time as they become vested or forfeited.  You will have no voting rights with respect to the number of Shares subject to this Award in excess of the Target Shares until such Shares have been granted and become fully vested.

		
	Market Stand-Off:
	In connection with any underwritten public offering by the Company of its equity securities pursuant to an effective registration statement filed under the Securities Act of 1933, as amended, you agree that you shall not directly or indirectly sell, make any short sale of, loan, hypothecate, pledge, offer, grant or sell any option or other contract for the purchase of, purchase any option or other contract for the sale of, or otherwise dispose of or transfer or agree to engage in any of the foregoing transactions with respect to, any Shares acquired under this Award without the prior written consent of the Company. Such restriction shall be in effect for such period of time following the date of the final prospectus for the offering as may be determined by the Company. In no event, however, shall such period exceed one hundred eighty (180) days.

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	Tax Withholding:
	To the extent that the vesting or receipt of the Shares, or the payment of dividends or dividend equivalents thereon, results in income to you for Federal, state or local income tax purposes, you shall deliver to the Company at the time the Company is obligated to withhold taxes in connection with such receipt, such amount as the Company requires to meet its withholding obligation under applicable tax laws or regulations, and if you fail to do so, the Company has the right and authority to deduct or withhold from any compensation payable to you, including compensation due under this Award, an amount sufficient to satisfy its withholding obligations.  You may satisfy the withholding requirement, in whole or in part, by electing to have the Company withhold for its own account that number of Shares otherwise deliverable to you having an aggregate Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax that the Company must withhold.  Your election must be irrevocable, in writing, and submitted to the Secretary of the Company before the date the Shares are distributed.  The Fair Market Value of any fractional Share not used to satisfy the withholding obligation (as determined on the date the tax is determined) will be paid to you in cash.

		
	Recoupment:
	If the Committee determines that recoupment of incentive compensation paid to you pursuant to this Award is required under any law or any recoupment policy of the Company, then this Award will terminate immediately on the date of such determination to the extent required by such law or recoupment policy and the Committee may recoup any such incentive compensation in accordance with such recoupment policy or as required by law.  The Company shall have the right to offset against any other amounts due from the Company to you any amount owed by you hereunder.

		
	Miscellaneous:
	As a condition of the granting of this Award, you agree, for yourself and your legal representatives or guardians, that this Award shall be interpreted by the Committee and that any interpretation by the Committee of the terms of this Award or the Plan and any determination made by the Committee pursuant to this Award shall be final, binding and conclusive.

Subject to the terms of the Plan, the Committee may modify or amend this Award without your consent as permitted by Section 17(a) of the Plan or: (i) to the extent such action is deemed necessary by the Committee to comply with any applicable law or the listing requirements of any principal securities exchange or market on which shares of the Company's Class A Common Stock are then traded; (ii) to the extent the action is deemed necessary by the Committee to preserve favorable accounting or tax treatment of this Award for the Company; or (iii) to the extent the Committee determines that such action does not materially and adversely affect the value of this Award or that such action is in the best interest of you or any other person who may then have an interest in this Award.

The Shares, other than the Target Shares, and the rights to dividends or dividend equivalents constitute a mere promise by the Company to make specified payments in the future if such benefits come due under the Award. You will have the status of a general creditor of the Company with respect to any earned Shares in excess of the Target Shares and any earned dividends or dividend equivalents.

This Award may be executed in counterparts.

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This Performance Share Award is granted under and governed by the terms and conditions of the Plan.  Additional provisions regarding your Award and definitions of capitalized terms used and not defined in this Award can be found in the Plan.

BY SIGNING BELOW AND ACCEPTING THIS AWARD, YOU AGREE TO ALL OF THE TERMS AND CONDITIONS DESCRIBED HEREIN AND IN THE PLAN.  YOU ALSO ACKNOWLEDGE RECEIPT OF THE PLAN.

QUAD/GRAPHICS, INC.

	
				
	By:
	 
	 
	 

	 
	[Name of Authorized Officer]
	 
	Recipient

	 
	 
	 
	 

	Date:
	 
	 
	 

	 
	 
	 
	 

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