Document:

TWC_EX10.8_2015 Q2-15 Kane Employment Letter

EXHIBIT 10.8

March 27, 2015

Via Email

Dear Kurt:
The Wendy’s Company is delighted to confirm the offer of employment for the position of Chief Concept Officer on the terms stated below. For quick reference, a few key points are also outlined in the attached term sheet. We believe you will contribute to the Company’s overall success and trust that Wendy’s will provide you with the career environment and opportunities you seek. We look forward to you joining the team - your start date is May 4, 2015.  

COMPENSATION AND BENEFITS.  The following is a summary of your compensation and benefits, but it does not contain all the details. The complete understanding between the Company and you regarding your compensation and benefits is governed by legal plan documents. If there is a discrepancy between the information in this letter and the legal plan documents, the legal plan documents will prevail. All forms of compensation referenced in this letter are subject to all applicable deductions and withholdings.

		
	1.
	Base Salary.  Your starting base annualized salary will be $425,000, paid on a bi-weekly basis. 

    
		
	2.
	Annual Incentive.  You will be eligible to receive an incentive under the terms and conditions of the incentive plan provided to similarly situated senior officers of the Company, which currently provides for a target bonus of 75% of your annual base salary, provided performance measures set by the Company are achieved. Any bonus to which you are entitled in your initial year of employment will be prorated based on the number of full fiscal periods you are employed from your start date.

		
	3.
	Benefits.  You shall be entitled to participate in any retirement, fringe benefit, or welfare benefit plan of the Company on the same terms as provided to similarly situated senior officers of the Company, including any plan providing prescription, dental, disability, employee life, group life, accidental death, travel accident insurance benefits and car allowance program that the Company may adopt for the benefit of similarly situated officers, in accordance with the terms of such plan. You will be eligible to participate in medical, dental, vision and life insurance programs after 30 days of service.

Page 1

		
	4.
	Executive Physical. Wendy’s wants to ensure that its leaders are provided with comprehensive health exams to help them maintain their health and peak performance. Wendy’s provides all officers of the company with the opportunity to receive an Executive Physical and will cover up to $4,000 for an annual executive physical exam.

		
	5.
	Vacation.  You will be eligible for four weeks of vacation per year.

		
	6.
	Equity Award at Start Date.  Upon commencement of your employment, you will be eligible to receive a one-time award of restricted stock units with an award value of $250,000. The restricted stock unit award will vest in full on the third anniversary of the grant.

		
	7.
	2015 Equity Award.  You will be eligible for a stock option award with an award value of $350,000 on the date the Performance Compensation Subcommittee (the “Subcommittee”) approves awards to other similarly situated senior executives of the Company.  

		
	8.
	Subsequent Equity Awards.  Commencing in 2016, you will be eligible to receive awards under the terms and conditions of the Company’s annual long-term incentive award program in effect for other similarly situated senior executives of the Company, subject to Subcommittee approval.

		
	9.
	Relocation Assistance. You are eligible for relocation assistance, and may elect to have your relocation expenses: (i) paid in a lump sum in the amount of $100,000, or (ii) covered by the Company through its third party service provider, Cartus Corporation, subject to the provisions outlined in the Relocation III Homeowners policy, a copy of which accompanies this letter.

		
	10.
	One-Time Sign-On Bonus.  The Company will pay you a one-time sign-on bonus in the lump sum amount of $100,000. This payment will be made in the next regular pay cycle after you have completed 30 days of continued, active employment. Should your employment with the Company be terminated voluntarily or for cause, within one year of your hire date, you will be required to repay 100% of the after-tax portion of the sign-on bonus.

		
	11.
	Severance.  In the event the Company terminates your employment without cause or within twelve (12) months following a change in control, you will be eligible for severance and other benefits as provided in the Executive Severance Addendum.

Such severance would be provided in exchange for your execution of a general release of any and all claims concerning your employment and termination in favor of the Company. You will not be entitled to severance in the event the Company terminates your employment for cause or in the event you voluntarily resign or terminate your employment with the Company.  

CONFIDENTIAL INFORMATION NONCOMPETE/NONSOLICITATION/EMPLOYEE NO-HIRE.  In accepting this offer, and in consideration of this employment offer and/or continued obligation and

Page 2

 promise to provide you with confidential information you agree to the Non-Compete and Confidentiality Addendum attached hereto and incorporated herein.  
EMPLOYMENT AT WILL.  By accepting the position on the terms stated, you acknowledge that your employment is “at-will.” This means that you may resign from the Company or the Company may end the employment relationship, at any time, with or without cause, and with or without notice.

Please review the information contained in this letter. Once you have had an opportunity to consider this letter, and provided you wish to accept the position on the terms outlined, please return an executed copy of this letter to me by April 3, 2015.

Should you have any questions, please do not hesitate to contact me.

Yours truly,
          

/s/ Scott A. Weisberg  
THE WENDY'S COMPANY
Scott A. Weisberg 
Chief People Officer

ACCEPTED AND AGREED:                

/s/ Kurt A. Kane                
Kurt A. Kane
    
March 31, 2015         
Date    

Page 3

KURT KANE
CHIEF CONCEPT OFFICER
	
			
	 
	 
	 

	PROVISION
	TERM
	      COMMENTS

	Base Salary
	$425,000/year
	Reviewed annually.

	Annual Incentive
	Target annual bonus percentage equal to 
75% of base salary
	Company and individual performance assessed for each fiscal year relative to pre-established performance measures.

	2015 Equity Award
	Value of $600,000
	Delivered in two installments in 2015: 
(1) $250,000 will be issued upon hire in the form of restricted stock units with 3-year cliff vesting; 
(2) $350,000 will be issued in the form of stock options with the grant date to be the date on which the Performance Compensation Subcommittee approves the award.

	Subsequent Equity Awards
	 
	Commencing in 2016, during your employment you are eligible to be granted awards under the Wendy’s annual long-term award program in effect for other executives of Wendy’s.

	One-Time Signing Bonus
	$100,000
	Payable 30 days after employment has commenced and provided your employment continues.

	Benefits/Car Allowance
	 
	Benefits as are generally made available to other senior executives of Wendy’s, including participation in Wendy’s health/medical and insurance programs and $16,800/year car allowance, paid bi-weekly.

	Vacation
	Four weeks per year
	 

Page 4

EXECUTIVE SEVERANCE ADDENDUM
TO OFFER LETTER OF MARCH 27, 2015

	
			
	SEVERANCE
	Termination without Cause
	Termination within 12 Months Following a Change in Control

	Salary Continuation
	•    18 months – base salary
	•    18 months – base salary and target annual incentive

	Annual Incentive
(Year of Termination)
	•    Prorated; based on Company performance and paid at the same time payments are made to active employees
	•    Prorated; based on Company performance and paid at the same time payments are made to active employees

	Equity
	•    Continued vesting of stock options and restricted stock units through salary continuation period. Vested stock options would be exercisable for one year after termination.
•    Pro rata vesting (through the date of termination)  of performance units would occur upon the conclusion of the performance period, based on actual performance for the entire measurement period
	•    Accelerated vesting of stock options and restricted stock units. Vested stock options would be exercisable for one year after termination.
•    Vesting of performance units based on actual performance through the termination date, if determinable; if undeterminable, full vesting of performance units at target. 

Page 5

NON-COMPETE AND CONFIDENTIALITY ADDENDUM
TO OFFER LETTER OF MARCH 27, 2015

CONFIDENTIAL INFORMATION.  You agree that you will not at any time during your employment and anytime thereafter, divulge, furnish, or make known or accessible to, or use for the benefit of anyone other than Wendy’s, its subsidiaries affiliates and their respective officers, directors and employee, any information of a confidential nature relating in any way to the business of Wendy’s or its subsidiaries or affiliates, or any of their respective franchisees, suppliers or distributors. You further agree that you are not subject to any agreement that would restrict you from performing services to Wendy’s and that you will not disclose to Wendy’s or use on its behalf, any confidential information or material that is the property of a former employer or third party.  

NONCOMPETE/NONSOLICITATION/EMPLOYEE NO-HIRE.  You acknowledge that you will be involved, at the highest level, in the development, implementation, and management of Wendy’s business strategies and plans, including those which involve Wendy’s finances, marketing and other operations, and acquisitions and, as a result, you will have access to Wendy’s most valuable trade secrets and proprietary information. By virtue of your unique and sensitive position, your employment by a competitor of Wendy’s represents a material unfair competitive danger to Wendy’s and the use of your knowledge and information about Wendy’s business, strategies and plans can and would constitute a competitive advantage over Wendy’s.  You further acknowledge that the provisions of this section are reasonable and necessary to protect Wendy’s legitimate business interests.
    
You agree that during your employment with Wendy’s and either (x) in the event your employment with Wendy’s is terminated “without cause”, for a period of twenty-four (24) months following such termination, or (y) in the event your employment with Wendy’s is terminated for cause, for a period of twelve (12) months following such termination:

(i) in any state or territory of the United States (and the District of Columbia) or any country where Wendy’s maintains restaurants, you will not engage or be engaged in any capacity, “directly or indirectly” (as defined below), except as a passive investor owning less than a two percent (2%) interest in a publicly held company, in any business or entity that is competitive with the business of Wendy’s or its affiliates.  This restriction includes any business engaged in drive through or food service restaurant business where hamburgers, chicken sandwiches or entree salads are predominant products (15% or more, individually or in the aggregate, of food products not including beverages). Notwithstanding anything to the contrary herein, this restriction shall not prohibit you from accepting employment, operating or otherwise becoming associated with a franchisee of Wendy’s, any of its affiliates or any subsidiary of the foregoing, but only in connection with activities associated with the operation of such a franchise or activities that otherwise are not encompassed by the restrictions of this paragraph, subject to any confidentiality obligations contained herein;

(ii) you will not, directly or indirectly, without Wendy’s prior written consent, hire or cause to be hired, solicit or encourage to cease to work with Wendy’s or any of its subsidiaries or affiliates, any person who is at the time of such activity, or who was within the six (6) month period preceding such activity, an employee of Wendy’s or any of its subsidiaries or affiliates 

Page 6

at the level of director or any more senior level or a consultant under contract with Wendy’s or any of its subsidiaries or affiliates and whose primary client is such entity or entities; and 

(iii) you will not, directly or indirectly, solicit, encourage or cause any franchisee or supplier of Wendy’s or any of its subsidiaries or affiliates to cease doing business with Wendy’s or subsidiary or affiliate, or to reduce the amount of business such franchisee or supplier does with Wendy’s or such subsidiary or affiliate.

For purposes of this section, “directly or indirectly” means in your individual capacity for your own benefit or as a shareholder, lender, partner, member or other principal, officer, director, employee, agent or consultant of or to any individual, corporation, partnership, limited liability company, trust, association or any other entity whatsoever; provided, however, that you may own stock in Wendy’s and may operate, directly or indirectly, Wendy’s restaurants as a franchisee without violating sections (i) or (iii).

If any competent authority having jurisdiction over this section determines that any of the provisions is unenforceable because of the duration or geographical scope of such provision, such competent authority shall have the power to reduce the duration or scope, as the case may be, of such provision and, in its reduced form, such provision shall then be enforceable. In the event of your breach of your obligations under the post-employment restrictive covenants, then the post-employment restricted period shall be tolled and extended during the length of such breach, to the extent permitted by law.

Page 7Ex 10.1 - ATSG EICP Plan

Exhibit 10.1

Air Transport Services Group, Inc.
Executive Incentive Compensation Plan

Air Transport Services Group, Inc.
Executive Incentive Compensation Plan

		
	1)
	Purpose

The purpose of this Plan is to achieve corporate goals by providing incentive compensation to eligible key executives who, through industry, ability, and exceptional service, contribute materially to the success of ATSG.

		
	2)
	Definitions

When used in this Plan, the following words and phrases shall have the following meanings:
		
	a)
	ATSG - Air Transport Services Group, Inc.

		
	b)
	Attainment – The actual performance results for a Performance Measure.

		
	c)
	Beneficiary – The beneficiary or beneficiaries designated to receive the amount, if any, payable under the Plan upon the death of the Participant.

		
	d)
	Board – The Board of Directors of ATSG.

		
	e)
	Compensation Committee – The Compensation Committee of the Board.

		
	f)
	Maximum – The point that represents the maximum payout level for a particular Performance Measure.

		
	g)
	Minimum – The point that represents the minimum payout level for a particular Performance Measure.

		
	h)
	Participant – Any employee eligible to receive awards under section 4.

		
	i)
	Performance Measure – A specific objective measure to assess success in achieving established goals.  Permitted Performance Measures are listed in section 5.

		
	j)
	Plan – The Executive Incentive Compensation Plan (EICP).

		
	k)
	Plan Year – Each calendar year for which Performance Measures and Targets are established for the Company.

		
	l)
	Retirement – When an employee leaves active service and qualifies under a regular or early retirement program of the Company or one of its subsidiaries in which the employee is a participant.

		
	m)
	Target – The point at which performance equals 100% of the stated objective.

		
	n)
	Threshold – The point below Target at which incentive payout for each Performance Measure begins.

		
	3)
	Administration

		
	a)
	The Compensation Committee will have the power to interpret the Plan and to make all determinations necessary or desirable for its administration.

		
	b)
	The decision of the Compensation Committee on any question concerning the interpretation or administration of the Plan will be final and conclusive.  Nothing in the Plan will be deemed to give any officer or employee, or legal representatives or assigns, any right to participate in the Plan except to such extent as the Compensation Committee may determine pursuant to the provisions of the Plan.

		
	c)
	The Compensation Committee shall determine the extent of achievement of the Performance Measures for the Chief Executive Officer of ATSG.  The Chief Executive Officer of ATSG, in consultation with the Compensation Committee, shall determine the extent of achievement of the Performance Measures for each of the other Participants.

		
	4)
	Eligibility

		
	a)
	Positions eligible for the Plan are:

Chief Executive Officer
Chief Financial Officer
Chief Commercial Officer
Senior Vice President, Corporate General Counsel
Vice President
Subsidiary President
Subsidiary Vice Presidents that have been elected as officers by the Board of Directors of the pertinent subsidiary.
Except as provided below, Participants for a Plan Year must be employed for the entire Plan Year.
		
	b)
	With approval of the Compensation Committee, prior to June 30th of each Plan Year, additional employees may be included in the Plan, with any award pro-rated as shall be determined by the Compensation Committee.

		
	c)
	Participants who retire in good standing during the year will be eligible for a pro-rated award for the year in which they retire, provided that they are on the active payroll on June 30th or later of the Plan Year.

		
	d)
	Participants who take a leave of absence will have their awards calculated based on actual salary earnings in calculating awards.  Participants who are on a leave of absence for more than 90 days and who continue to receive full or partial salary continuance will have their awards adjusted.  Any salary paid while on a leave of absence period over 90 days will not be included in the base salary used to calculate awards.

		
	5)
	Performance Measures

Unless otherwise determined by the Compensation Committee, bonuses will be based on at least two Performance Measures.  One of the Performance Measures will be net income from continuing operations.  The other Performance Measures will consist of one or more of the following: revenue growth, return on capital, earnings per share, shipment growth, increase in stock price, return on assets, service or personal goals.  Further, with respect to those Participants that are employed by a Company subsidiary that has a substantive agreement with DHL or another customer, one of their Performance Measures may be based on the level of performance under the service incentive associated with that agreement.  The Compensation Committee will select the Performance Measures and Targets, and the relevant weight to be given among those selected, for the Chief Executive Officer of ATSG.  The Chief Executive Officer of ATSG, in consultation with the Compensation Committee, will select the Performance Measures and Targets, and the relevant weight to be given among those selected, for each of the other Participants.  The selection of the Performance Measures and Targets will be made as soon as reasonably practicable after the beginning of each Plan year, and such Performance Measures and Targets may not be changed thereafter.  

		
	6)
	Qualifiers on Performance Measures

		
	a)
	The bonus percentage is applied to the Participant’s base salary paid in the Plan Year.

		
	b)
	No bonus will be paid unless the Company achieves profitability.

		
	c)
	To receive any award under the Plan, a Participant’s individual performance must be evaluated as at least competent.

		
	7)
	Bonus Amounts

The bonus for each Participant shall be determined by multiplying the Participant’s base salary earned during the calendar year by the applicable bonus amount, expressed as a percentage of base salary, which bonus amount shall be based upon the extent of Attainment of the pertinent Performance Measures described Section 5 hereof.  The Threshold, Target and Maximum bonus potentials for the Participants shall consist of the following:

	
				
	Position
	Threshold
	Target
	Maximum

	Chief Executive Officer
	4%
	100%
	150%

	CFO; Sr. VP, Corporate General Counsel; Chief Commercial Officer; Subsidiary President
	4%
	60%
	100%

	Vice President; Subsidiary Vice President
	4%
	48%
	80%

For the achievement of Performance Measures between the Threshold and Maximum percentages, the  actual bonus amount will be interpolated.

		
	8)
	Form of Payment

Awards shall be paid entirely in cash.  Payments will be made as soon as practicable after audited performance results are known and approved by the Compensation Committee, which should be on or about March 1.  Award checks will be prepared by the pertinent payroll department for each Participant and will be subject to tax withholding and 401(k) deductions.  If a Participant dies before the end of the Plan Year, an amount equal to a pro-rated portion thereof as of the date of death shall be paid in one lump cash sum to the Participant’s Beneficiary.

		
	9)
	Limitation on Allocation

Notwithstanding any other provision of the Plan, in no circumstances will the total amount allocated as an award to any individual Participant for any plan year exceed $1,000,000.00.

		
	10)
	Designation of Beneficiaries

Each Participant shall file with the Company a written designation of one or more persons as the Beneficiary who shall be entitled to receive the amount, if any, payable under the Plan upon the Participant’s death.  A Participant may, from time to time, revoke or change his Beneficiary designation without the consent of any prior Beneficiary by filing a new designation.  The last such designation received shall be controlling, provided, however, that no designation, change or revocation thereof, shall be effective unless received by the Company prior to the Participant’s death, and in no event shall it be effective as of a date prior to such receipt.

		
	11)
	Absence of Valid Designation

If no such Beneficiary designation is in effect at the time of a Participant’s death, or if no designated Beneficiary survives the Participant, or if such designation conflicts with the law, the Participant shall be deemed to have designated the Participant’s estate as the Participant’s Beneficiary and the Participant’s estate shall receive the payment of the amount, if any, under the 

Plan, upon the Participant’s death.  If the Compensation Committee is in doubt as to the right of any person to receive such amount, the Compensation Committee may direct the retention of such amount, without liability for any interest thereon, until the rights thereto are determined, or the Compensation Committee may direct the payment of such amount to any court of appropriate jurisdiction and such payment shall be a complete discharge of the liability of the Plan and of ATSG therefore.

		
	12)
	No Liability of Compensation Committee, Board Members, or Officers

No members of the Compensation Committee, the Board or corporate officers shall be personally liable by reason of any contract or other instrument executed by them or on their behalf nor for any mistake or judgment made in good faith, and ATSG shall indemnify and hold harmless each member of the Board and each other officer, employee or director of ATSG to whom any duty or power relating to the administration or interpretation of the Plan may be allocated or delegated, against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Compensation Committee) arising out of any act or omission to act in connection with the Plan unless arising out of such person’s own fraud or bad faith.

		
	13)
	Right to Amend, Suspend or Terminate Plan

The Board reserves the right at any time to amend, suspend or terminate the Plan in whole or in part and for any or no reason and without the consent of any Participant or Beneficiary; provided that no such amendment shall adversely affect rights to receive any amount to which Participants or Beneficiaries have become entitled prior to such amendment.  Unless otherwise provided herein, any amendment, modification, suspension or termination of any provisions of the Plan may be made retroactively.

		
	14)
	No Rights to Continue Employment or Bonus

Nothing contained in the Plan shall give any employee the right to be retained in the employment of ATSG or affect the right of ATSG to dismiss any employee.  The adoption of the Plan shall not constitute a contract between ATSG and any employee.  No Participant shall receive any right to be granted an award hereunder nor shall any such award be considered as compensation under any employee benefit plan of ATSG, except as otherwise determined by ATSG.

		
	15)
	No Right, Title or Interest in Assets

The Participants shall have no right, title or interest whatsoever in or to any investments which ATSG may make to aid in meeting its obligations under the Plan.  Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed to create a fiduciary relationship between ATSG and any Participant or any other person.  To the extent that any person acquires a right to receive payments from ATSG under this Plan, such right shall be no greater than the right of an unsecured general creditor of ATSG.

		
	16)
	Unfunded Plan; Governing Law

The Plan is intended to constitute an incentive compensation arrangement for a select group of management or highly compensated personnel and all rights thereunder shall be governed by and construed in accordance with the laws of the State of Ohio.

Last Reviewed: July 30, 2015

Last Modified: July 30, 2015

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