Document:

EX-10.1

 Exhibit 10.1 
 CONFIDENTIAL 
  
 

 
 2012 Incentive Plan 

Somaxon Pharmaceuticals, Inc. 

 CONFIDENTIAL 

 

 2012 Incentive Plan 
 The Somaxon Pharmaceuticals, Inc. (Somaxon) 2012 Incentive Plan (the “Plan”) is designed to offer incentive compensation to eligible Employees by rewarding the achievement of corporate goals and
specifically measured individual goals that are consistent with and support overall corporate goals. The Plan will create an environment which will focus Employees on the achievement of objectives. Since cooperation between departments and Employees
will be required to achieve corporate objectives that represent a significant portion of the Plan, the Plan should help foster improved teamwork and a more cohesive management team. 
 Purpose of the Plan 
 The Plan is designed to: 

 

	•	 	 Provide an incentive program to achieve overall corporate objectives and to enhance shareholder value 

 

	•	 	 Reward those individuals who significantly impact corporate results 

 

	•	 	 Encourage increased teamwork among all disciplines within the Company 

 

	•	 	 Incorporate an incentive program in the Somaxon overall compensation program to help attract and retain Employees 

 

	•	 	 Incentivize eligible Employees to remain employed by Somaxon throughout the Plan year and until the time incentive awards are paid

 Plan Governance 
 The Plan will be governed by the Compensation Committee of the Board of Directors. The President and CEO of Somaxon will be responsible for administration of the Plan. The Compensation Committee of the
Board will be responsible for approving any compensation or incentive awards to officers of the Company. 
 Eligibility 

All full time (40 hours/week) exempt Employees Level 6 (Manager) or higher are eligible to participate in the Plan. To receive an incentive award, a
participant: (a) must have been in an eligible position for at least three (3) consecutive months prior to the end of the Plan year and remain employed through the end of the Plan year and until incentive awards are paid; and (b) must
not be on probation at the time bonus determinations are made. 

  
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 CONFIDENTIAL 

 

 Section 1: Bonus Incentive Awards (“Bonus”) 

Form of Incentive Award Payments 

Incentive award payments may be made in cash, through the issuance of stock or stock options, or by a combination of cash, stock and/or stock options, at
the discretion of the Company’s Compensation Committee, subject to the approval of the Company’s Board of Directors. In the event that the Compensation Committee and the Board of Directors elect to pay incentive awards in stock or stock
options, the Compensation Committee, in its sole discretion, will make a determination of the number of shares of stock or stock options to be issued to each Plan participant based, in part, upon each participant’s Corporate and Individual
Performance, as described below. The issuance of stock and stock options may also be subject to the approval of the Company’s stockholders, and any stock options issued will be subject to the terms and conditions of the Company’s 2005
Equity Incentive Award Plan, as amended from time to time by the Company. 
 Corporate and Individual Performance 

With respect to the Plan year, the President and CEO will present to the Compensation Committee a list of the overall corporate objectives for the coming
year, which are subject to approval by the Committee. All participants in the Plan will then develop a list of key individual objectives, which must be approved by the responsible Vice President and by the President and CEO. 

The Plan calls for incentive awards based on the achievement of annual corporate and individual objectives that have been approved as indicated above.

 The relative weight between corporate and individual performance factors may vary based on the individual’s level within the
organization. The weighting will be reviewed annually and may be adjusted, as necessary or appropriate. The weighting for 2012 will be as follows: 
  

									
	 	  	Corporate	 	 	Individual	 
	 President and CEO(Grade 13)
	  	 	100	% 	 			
	 Officer Vice Presidents (Grade 12)
	  	 	100	% 	 			
	 Non-Officer Vice Presidents (Grade 11)
	  	 	100	% 	 			
	 Executive Directors (Grades 10)
	  	 	75	% 	 	 	25	% 
	 All Others (Grades 6-9)
	  	 	50	% 	 	 	50	% 

  
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 CONFIDENTIAL 

 

 Bonus Percentage 
 Incentive Awards will be determined by applying a “bonus percentage” to the base salary of participants in the Plan. The following bonus percentages will be used for this purpose: 

 

							
	 Grade Level
	  	 Position Title
	  	Bonus Percentage	 
	13	  	President & CEO	  	 	55	% 
	12	  	Officers, Sr. VP, VP	  	 	40	% 
	11	  	Non-Officer Vice Presidents	  	 	35	% 
	10	  	Executive Director	  	 	25	% 
	8 - 9	  	Sr. Director, Director	  	 	20	% 
	6 - 7	  	Sr. Manager, Manager	  	 	15	% 

 Performance Measurement 
 The following scale will be used to determine the actual award multiplier for incentive award calculations based upon measurement of corporate and individual performance versus objectives. Separate
payment multipliers will be established for both the individual and the corporate components of each award. The same payment multiplier for the corporate component of each participant’s annual award shall be used for all Plan participants in
any given year. The award multiplier for the corporate component shall be determined by the Board of Directors. 
  

			
	 Performance Category
	  	Award Multiplier
	 1. Performance for the year met or exceeded objectives or was excellent in view of prevailing conditions
	  	75% - 150%
		
	 2. Performance generally met the year’s objectives or was very acceptable in view of prevailing
conditions
	  	50% - 75%
		
	 3. Performance for the year met some, but not all, objectives
	  	25% - 50%
		
	 4. Performance for the year was not acceptable in view of prevailing conditions
	  	0%

 Calculation of Cash Incentive Award 
 The example below shows sample cash incentive award calculations under the Somaxon Incentive Plan. First, a total bonus potential is calculated by multiplying the Employee’s base salary by the
bonus percentage. This dollar figure is then divided between its corporate component and its individual component based on the performance factor mix for that specific position. This calculation establishes specific dollar potential awards for the
performance period for both the individual and corporate components of the award. 
 At the end of the performance period, corporate and
individual award multipliers will be established using the criteria described above. The corporate award multiplier, which is based on overall corporate performance, is used to calculate corporate performance awards for all Plan participants. This
is accomplished by multiplying the bonus percentage established for each individual at the beginning 

  
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 CONFIDENTIAL 

 

 
of the performance period by the actual corporate award multiplier. The individual award multiplier, which is based on an individual’s performance against objectives, is used in the same way
to calculate the actual individual performance award. 
 Example: 

 

							
	 Cash Award Calculation
	  				  	
	Position:	  				  	Manager
	Base Salary:	  				  	$100,000
	Bonus percentage:	  				  	15%
	Potential bonus dollars:	  				  	$15,000
			
	Potential bonus components (based on performance factor mix):	  				  	
	Potential corporate performance bonus (50%):	  	  	$7,500
	Potential individual performance bonus (50%):	  	  	$7,500
		
	Actual Cash Award Calculation	  	  	
	Assumed payment multipliers based on assessment of corporate and individual performance:
	Corporate multiplier	  	 	75%-performance generally met year’s objectives
	Individual multiplier	  	 	125%-performance generally exceeded objectives
	Cash Award:	  				  	
	 Corporate component
	  	 	$5,625	  	  	($7,500 x 75%)
	 Individual component
	  	 	$9,375	  	  	($7,500 x 125%)

 Payment of the Incentive Award 
 Payment of incentive awards will be made as soon as practicable after the end of the Plan year but not before the completion and issuance of the Company’s year-end audited Financial Statements.
Incentive award calculations will be based on the participant’s base salary earned during the year ending December 31, 2012. Participants’ entitlement to an incentive award under this Plan does not vest until the awards are actually
paid. 
 Participants who have been in an eligible position for less than a year, but who hold an eligible position for at least three months
prior to the end of the Plan year and remain continuously employed through the end of the Plan year, will receive a pro-rata bonus based on the portion of the Plan year they hold an eligible position. Participants promoted during the year from one
“Bonus percentage” level to another will have their Incentive Award calculated using their base salary earned during the year ending December 31, 2012. Providing the promotion occurred prior to October 1, 2012, the calculation
will be pro-rated, based on the number on months at each Bonus Percentage level. If the promotion occurred after October 1, 2012, the entire calculation will be based on the Bonus Percentage applicable prior to the promotion. Other than as
stated above, incentive awards will not be prorated for partial year service. 

  
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 CONFIDENTIAL 

 

 Termination 
 A Plan participant, whose employment terminates voluntarily prior to the payment of the incentive awards, will not be eligible to receive an incentive award. Continued employment until payment of the
incentive award is a condition of vesting. If a participant’s employment is terminated involuntarily during the calendar year, or prior to payment of awards, it will be at the absolute discretion of the Company whether or not an award payment
is made. 
 Board of Director’s Absolute Right to Alter or Abolish the Plan 
 The Somaxon Board of Directors reserves the right in its absolute discretion to abolish the Plan at any time or to alter the terms and conditions under which incentive compensation will be paid. Such
discretion may be exercised any time before, during, and after the Plan year is completed. No participant shall have any vested right to receive any compensation hereunder until actual delivery of such compensation. 

Employment Duration/Employment Relationship 
 This Plan does not, and Somaxon’s policies and practices in administering this Plan do not, constitute an express or implied contract or other agreement concerning the duration of any
participant’s employment with the Company. The employment relationship of each participant is “at will” and may be terminated at any time by Somaxon or by the participant, with or without cause. 

  
 6 

 CONFIDENTIAL 
 Somaxon Pharmaceuticals, Inc. 
 2012 Incentive Plan 

This is to acknowledge that I have received a copy of the 2012 Incentive Plan. 

 

							
	Name:  	 	 	    	Date:  	  	 
		 	(print)	    		  	
				
		 	 	    		  	
		 	(signature)	    		  	

     Please return signed copy to Stacy Leppert.EX-10.68

 Exhibit 10.68 

 
 

 
 HAND DELIVERED 
 February 23, 2012 
 Thomas Connerty 
 2850 SW Fairview Blvd. 
 Portland, OR 97205 

Dear Tom: 
 On behalf of eDiets.com, Inc. (the
“Company”), I am pleased to offer you the position of Chief Executive Officer, reporting to the Board of Directors. Although your appointment has been approved by the Company’s Board of Directors, your compensation package as outlined
herein is subject to approval of the Compensation Committee of the Board of Directors (“Compensation Committee”). For purposes of this offer letter, your first day of work at the Company will be considered your “Employment Start
Date.” 
 Base Salary. Your annual base salary will be $1.00, subject to annual review by the Compensation Committee. 

Annual Incentive Compensation. Subject to Compensation Committee approval, you will be eligible to participate in an annual incentive compensation
program if our Compensation Committee chooses to establish one during the term of your employment. However, based on the difficult economic situation facing the Company and its expectations regarding cash flow for the 2012 fiscal year, the Company
does not anticipate that an annual incentive compensation program will be established for the current fiscal year. 
 Equity-Based
Compensation. Management will recommend that the Compensation Committee grant you a nonqualified option to purchase 400,000 shares of the Company’s common stock (the “Option”). The exercise price for the Option will be the fair
market value of our common stock on the date of grant as determined by the Compensation Committee. The Option will be subject to the terms and conditions of the Company’s 2010 Amended and Restated Equity Incentive Plan, as amended, and the
applicable notice of stock option grant and stock option agreement (which will include the stock option vesting schedule), and vesting of the Option is contingent on your continued employment with the Company through each vesting date; provided that
you will have one year following your resignation or removal from the Board and termination of your employment, unless terminated for Cause (as defined below), to exercise the Option to the extent vested prior to the effective date thereof. Subject
to approval by the Compensation Committee, 100,000 shares subject to the Option will vest on the date of such Compensation Committee approval and another 100,000 shares will vest 90 days thereafter. The remaining 200,000 shares subject to the Option
will vest as follows: 
  

	 	•	 	 50,000 shares on the first trading day after the closing price of the Company’s common stock on OTCBB (or any market where the Company’s
common stock may subsequently be listed or quoted) has equaled or exceeded $0.75 per share for ten consecutive trading days; 

 Thomas Connerty 
 February 23, 2012 
 Page 2 

 

	 	•	 	 50,000 shares on the first trading day after the closing price of the Company’s common stock on OTCBB (or any market where the Company’s
common stock may subsequently be listed or quoted) has equaled or exceeded $1.00 per share for ten consecutive trading days; 

	 	•	 	 50,000 shares on the first trading day after the closing price of the Company’s common stock on OTCBB (or any market where the Company’s
common stock may subsequently be listed or quoted) has equaled or exceeded $1.25 per share for ten consecutive trading days; and 

	 	•	 	 50,000 shares on the first trading day after the closing price of the Company’s common stock on OTCBB (or any market where the Company’s
common stock may subsequently be listed or quoted) has equaled or exceeded $1.50 per share for ten consecutive trading days. 

Benefits. The Company provides a competitive benefits package for its eligible employees. Please refer to benefit plan documents for
eligibility. Of course, the Company may change its benefits at any time. 
 Expenses. The Company will reimburse you for all
reasonable out-of-pocket expenses incurred in connection with the performance of your duties, including travel expenses between your residence in Portland, Oregon, and the Company’s offices in Fort Lauderdale, Florida. 

Paid Time Off. You will be entitled to three weeks of vacation time each year. In addition, the Company currently provides eligible employees with
paid holidays in accordance with the provisions of the Company’s Employee Handbook. 
 Proprietary Agreement and No Conflict with Prior
Agreements. As an employee of the Company, you will become knowledgeable about confidential and/or proprietary information related to the operations, products and services of the Company and its business partners. Similarly, you may have
confidential or proprietary information from prior employers that should not be used or disclosed to anyone at the Company. Therefore, the Company requests that you read, complete, and sign our standard Confidentiality and Assignment of Inventions
Agreement (“Proprietary Agreement”) prior to your Employment Start Date. In addition, the Company requests that you comply with any existing and/or continuing contractual obligations that you may have with your former employers. By signing
this offer letter, you represent that your employment with the Company shall not breach any agreement you have with any third party. 

Obligations. During your employment, you shall devote your full business efforts and time to the Company. This obligation, however, shall not
preclude you from engaging in appropriate civic, charitable or religious activities or from serving on the boards of directors of one or two companies that are not competitors to the Company, as long the activities do not materially interfere or
conflict with your responsibilities to, or your ability to perform your duties of employment. Any outside activities must be in compliance with and approved if required by the Company’s Code of Business Conduct and Ethics. 

Non-competition. In addition to the obligations specified in the Proprietary Agreement and the Employee Handbook, you agree that, during your
employment with the Company you will not engage in, or have any direct or indirect interest in any person, firm, corporation or business (whether as an employee, officer, director, agent, security holder, creditor, consultant, partner or otherwise)
that is competitive with the business of the Company. Notwithstanding the preceding sentence, you may own not more than 1% of the securities of any company whose securities are publicly traded. 

Cause. For purposes of this offer letter, “Cause” shall mean termination of your employment with the Company based upon the occurrence
of one or more of the following which, with respect to clauses (1), (2) and (3) below, if curable, you have not cured within fourteen (14) days after you receive written notice from the Company specifying with reasonable particularity
such occurrence: (1) your refusal or material 

 
Thomas Connerty 
 February 23, 2012 

Page 3 
 failure to perform your job duties and
responsibilities, (2) your failure or refusal to comply in any material respect with Company policies or lawful directives, (3) your material breach of any contract or agreement between you and the Company (including but not limited to
this offer letter, the Proprietary Agreement and the Employee Handbook), or your material breach of any statutory duty, fiduciary duty or any other obligation that you owe to the Company, (4) your commission of an act of fraud, theft,
embezzlement or other unlawful act against the Company or involving its property or assets or your engaging in unprofessional, unethical or other intentional acts that materially discredit the Company or are materially detrimental to the reputation,
character or standing of the Company, or (5) your indictment or conviction or nolo contendre or guilty plea with respect to any felony or crime of moral turpitude. Following notice and cure as provided in the preceding sentence,
upon any additional one-time occurrence of one or more of the events enumerated in that sentence, the Company may terminate your employment for Cause without notice and opportunity to cure. However, should the Company choose to offer you
another opportunity to cure, it shall not be deemed a waiver of its rights under this provision. 
 Employment At-Will. Please understand
that this offer letter, when fully signed, does not constitute a contract of employment for any specific period of time, but will create an employment at-will relationship that may be terminated at any time by you or the Company, with or without
Cause and with or without advance notice. The at-will nature of the employment relationship may not be modified or amended except by written agreement signed by the Company’s Executive Chairman and you. 

Employee Handbook. As an employee of the Company, you will be expected to abide by the Company’s policies and procedures including, but not
limited to, the Company’s Employee Handbook and the Code of Business Conduct and Ethics incorporated in the Employee Handbook. The Company requests that you review, sign and return the Employee Handbook Acknowledgment Form previously provided
to you. 
 Entire Agreement, Etc. When fully signed, this offer letter and the referenced documents and agreements constitute the entire
agreement between you and the Company with respect to the subject matter hereof and supersede any and all prior or contemporaneous oral or written representations, understandings, agreements or communications between you and the Company concerning
those subject matters. This offer letter is governed by the laws of the State of Florida and any dispute arising from this offer letter may only be resolved by a state or federal court located in Broward County, Florida. 

Eligibility to Work in the United States. In order for the Company to comply with United States law, we ask that on your Employment Start Date you
bring to the Company appropriate documentation to verify your authorization to work in the United States. 
 Background Check. Please
understand that this offer is contingent upon the successful completion of your background check. 

 Thomas Connerty 
 February 23, 2012 
 Page 4 
 Accepting this Offer. To accept this offer letter, please sign a copy in the space provided below and deliver it by hand, by fax or by email attachment, together with the signed Proprietary
Agreement and the signed Employee Handbook Acknowledgement Form to the Company’s General Counsel. 
  

	
	Sincerely,
	
	/s/    Kevin A. Richardson        
	 Kevin A. Richardson, II

Chairman of the Board of Directors

 I accept this offer of employment with eDiets.com, Inc. and agree to the terms and conditions outlined in this
offer letter. 
  
  

							
		 		 	
				
	 /s/    Thomas
Connerty        
	 		 		 	2/23/2012
	Signature	 		 		 	Date
		 		 		 	
		 		 	
				
	 Thomas Connerty        
	 		 		 	2/23/2012
	Full Name	 		 		 	Planned Employment Start Date
		 		 		 	(Contingent upon completion of a satisfactory background check.)

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