Exhibit 10.1
MERISANT WORLDWIDE,
INC.
2005 SHARE APPRECIATION
PLAN
1.0
DEFINITIONS
The following terms shall have the
following meanings unless the context indicates
otherwise:
1.1
“ Affiliate ”
shall mean with respect to any Person, any other Person that
(i) directly or indirectly controls such Person,
(ii) directly or indirectly is controlled by such Person or
(iii) is under direct or indirect common control with such
Person.
1.2
“ Appreciation Award
” shall mean a compensatory award that is granted in
accordance with Section 7 below, and that Vests and is paid out in
accordance with Section 8 below. Each Appreciation Award may
be a First Level Appreciation Award, a Second Level Appreciation
Award or a Third Level Appreciation Award and each such
Appreciation Award shall be represented by a specific number of
whole and/or fractional Share Units.
1.3
“ Award Letter ”
shall mean a written agreement between the Company and the
Participant that establishes the terms, conditions, restrictions
and/or limitations applicable to an Appreciation Award in addition
to those established by the Plan and by the Committee’s
exercise of its administrative powers.
1.4
“ Beneficial Owner
,” “ Beneficial Ownership ” or
“ Beneficially Own ” shall have the meanings
ascribed to any such terms in Rule 13d-3 of the General Rules and
Regulations under the Exchange Act.
1.5
“ Board ” shall
mean the Board of Directors of the Company.
1.6
“ Change in
Control” shall mean:
(a)
acquisition by any Person or group of Persons, including any
“person” within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended
(“Exchange Act”), of beneficial ownership within the
meaning of Rule 13d-3 promulgated under the Exchange Act, of more
than 50 percent of either (i) the then outstanding shares of Common
Stock (the “ Outstanding Common Stock ”) or (ii)
the combined voting power of the then outstanding securities of the
Company entitled to vote generally in the election of directors
(the “ Outstanding Voting Securities ”);
excluding, however, the following: (A) any acquisition directly
from the Company (except for any acquisition resulting from the
exercise of an exercise, conversion or exchange privilege unless
the security being so exercised, converted or exchanged was
acquired directly from the Company ), (B) any acquisition by the
Company, (C) any acquisition by an
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employee benefit
plan (or related trust) sponsored or maintained by the Company or
any corporation controlled by the Company or (D) any acquisition by
any corporation pursuant to a transaction that complies with
clauses (i), (ii) and (iii) of subsection (b) of this Section 1.5;
provided further, that for purposes of clause (B), if any Person or
group of Persons (other than the Company or any employee benefit
plan (or related trust) sponsored or maintained by the Company or
any corporation controlled by the Company) shall become the
Beneficial Owner of more than 50 percent of the Outstanding Common
Stock or of the Outstanding Voting Securities by reason of an
acquisition by the Company, and such Person or group of Persons
shall, after such acquisition by the Company, become the Beneficial
Owner of any additional shares of the Outstanding Common Stock or
any additional Outstanding Voting Securities and such Beneficial
Ownership is publicly announced, such additional Beneficial
Ownership shall constitute a Change in Control;
(b) consummation
of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the
Company (a “ Corporate Transaction ”);
excluding, however, a Corporate Transaction pursuant to which (i)
all or substantially all of the individuals or entities who are the
Beneficial Owners, respectively, of the Outstanding Common Stock
and the Outstanding Voting Securities immediately prior to such
Corporate Transaction will Beneficially Own, directly or
indirectly, more than 50 percent of, respectively, the outstanding
shares of common stock, and the combined voting power of the
outstanding securities entitled to vote generally in the election
of directors, as the case may be, of the corporation resulting from
such Corporate Transaction (including, without limitation, a
corporation that as a result of such transaction owns the Company
or all or substantially all of the Company’s assets either
directly or indirectly) in substantially the same proportions
relative to each other as their ownership, immediately prior to
such Corporate Transaction, of the Outstanding Common Stock and the
Outstanding Voting Securities, as the case may be, (ii) no Person
or group of Persons (other than the Company, any employee benefit
plan (or related trust) sponsored or maintained by the Company or
any corporation controlled by the Company, the corporation
resulting from such Corporate Transaction, or any Person that
Beneficially Owned, immediately prior to such Corporate
Transaction, directly or indirectly, more than 50 percent of the
Outstanding Common Stock or of the Outstanding Voting Securities,
as the case may be) will Beneficially Own, directly or indirectly,
more than 50 percent of, respectively, the outstanding shares of
common stock of the corporation resulting from such Corporate
Transaction or the combined voting power of the outstanding
securities of such corporation entitled to vote generally in the
election of directors and (iii) individuals who were members of the
Incumbent Board will constitute at least a majority of the members
of the board of directors of the corporation resulting from such
Corporate Transaction; or
(c) consummation
of a plan of complete liquidation or dissolution of the
Company.
1.7
“ Code ” shall
mean the Internal Revenue Code of 1986, as amended from time to
time, including applicable regulations promulgated
thereunder.
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1.8
“ Committee ”
shall mean (i) the Board or (ii) a committee or subcommittee of the
Board appointed by the Board from among its members. The
Committee may be the Board’s Compensation Committee or such
committee that performs the functions generally associated with
those functions performed by the compensation committees of
publicly traded corporations.
1.9
“ Common Stock ”
shall mean the common stock, $.01 par value per share, of the
Company.
1.10
“ Company ” shall
mean Merisant Worldwide, Inc., a Delaware corporation.
1.11
“ Complementary Company
” shall mean any Person that owns or possesses intellectual
property or other assets primarily used by the Company and its
Subsidiaries in the Company’s tabletop sweetener business
through licensing or other contractual arrangements.
1.12
“ Distribution Date
” shall mean the Initial Distribution Date or a Subsequent
Distribution Date, as applicable.
1.13
“ Effective Date
” shall mean September 19, 2005.
1.14
“ Employee ”
shall mean an employee of the Company or any Subsidiary as
described in Treasury Regulation Section 1.421-7(h).
1.15
“ Equity Interest
” shall mean a share of stock, membership interest,
partnership interest or other equity interest in a Complementary
Company.
1.16
“ Equity Value ”
shall mean the following (as determined pursuant to Section
8.5):
(A + B - C) + (D + E - F),
where:
A =
the aggregate proceeds received and
to be received by the holders of capital stock of the Company on
the Distribution Date and on each Distribution Date prior to such
Distribution Date;
B =
the amount of any Interim
Distributions made after the Effective Date with respect to the
shares of Common Stock;
C =
the Return Amount with respect to
New Company Equity;
D =
to the extent that all or
substantially all of the assets or Equity Interests of the
Complementary Company are conveyed, transferred or sold, including
by way of merger, in connection with a Change of Control or in a
related transaction or series of related transactions
contemporaneous with a Change of Control, the aggregate proceeds
received or to be received by holders of Equity Interests
in
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exchange for their Equity
Interests;
E =
the amount of any Interim
Distributions made after the Effective Date with respect to the
Equity Interests, to the extent D is included in the calculation;
and
F =
the Return Amount with respect to
Equity Interests, to the extent D is included in the
calculation.
1.17
“ERISA”
shall mean the Employee Retirement
Income Security Act of 1974, as amended from time to time,
including applicable regulations promulgated thereunder.
1.18
“Exchange
Act” shall mean the
Securities Exchange Act of 1934, as amended from time to time,
including applicable regulations thereunder.
1.19
“First Level Appreciation
Award” shall mean
an Appreciation Award to be paid under the Plan with respect to
Equity Value on the Distribution Date that is less than or equal to
$100,000,000.
1.20
“Incumbent
Board” shall mean
those individuals who, as of September 19, 2005, constitute the
Board; provided that any individual who becomes a director of the
Company subsequent to September 19, 2005 whose election, or
nomination for election by the Company’s stockholders, was
approved by the vote of at least a majority of the directors then
comprising the Incumbent Board shall be deemed a member of the
Incumbent Board; and provided further, that any individual who was
initially elected as a director of the Company as a result of an
actual or threatened election contest, as such terms are used in
Rule 14a-11 of Regulation 14A promulgated under the Exchange Act,
or any other actual or threatened solicitation of proxies or
consents by or on behalf of any Person other than the Board shall
not be deemed a member of the Incumbent Board.
1.21
“ Initial
Distribution Date ” shall mean (a) the date on which
Merisant Investors receive cash or marketable securities in
exchange for at least 50% of their shares of Common Stock in a
single transaction or a series of related transactions or in any
transaction which is otherwise a Change in Control under paragraph
(a) or (b) of the definition thereof.
1.22
“Initial
Participants” shall
mean the Participants selected by the Committee and whom are
granted Appreciation Awards during the 120-day period immediately
following the Effective Date in accordance with Section 7
below.
1.23
“ Interim Distribution
” shall mean any distribution or payment by the Company, a
Complementary Company or any third party with respect to
outstanding shares of Common Stock or Equity Interests, as
applicable.
1.24
“ Investors ”
shall mean (a) the individuals and entities which are Merisant
Investors and (b) the individuals and entities which are or may
become holders of Equity Interests.
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1.25
“ Merisant Investors
” shall mean the individuals and entities identified as
“Shareholders” in the Shareholders Agreement dated as
of March 17, 2000 by and among the Company, Tabletop Holdings, LLC,
a Delaware limited liability company, the entities identified as
“Mezzanine Investors” in Schedule I to such agreement
and the individuals identified as “Purchasers” in
Schedule I to such agreement. The term Merisant
Investors shall include any member of Tabletop Holdings, LLC and
any Affiliate a Merisant Investor who acquires shares of Common
Stock from a Merisant Investor.
1.26
“New Company
Equity” shall mean
capital stock of the Company issued to any Person after the
Effective Date.
1.27
“Participant”
shall mean any Employee or director
of the Company or any Subsidiary to whom an Appreciation Award has
been granted by the Committee under the Plan and, the case of an
Employee, who is employed by the Company or any Subsidiary as of
the date the Appreciation Award Vests in accordance with Section 8
or 9 below.
1.28
“ Person ” shall
mean any natural person or corporation, limited liability company,
partnership or other entity.
1.29
“Plan”
shall mean the Merisant Worldwide,
Inc. 2005 Share Appreciation Plan.
1.30
“ Return Amount ”
shall mean, with respect to Equity Interests, the amount of the
aggregate equity investments in and contributions to the capital of
a Complementary Company made by the Persons who are or have been
holders of Equity Interests plus an amount equal to 12% compounded
annual return on such investment measured with respect to such
equity investment or contribution to the capital to the date as of
which such return in paid. With respect to New Company
Equity, the term “Return Amount” means the amount of
the aggregate equity investments in and contributions to the
capital of the Company by any of the Merisant Investors after the
Effective Date plus an amount equal to 12% compounded annual return
on such investment measured with respect to such equity investment
or contribution to the capital to the date as of which such return
in paid.
1.31
“SAR Plan”
shall mean the Tabletop Holdings,
Inc. Stock Appreciation Rights Plan, as the same may be amended or
supplemented from time to time.
1.32
“Second Level Appreciation
Award” shall mean
an Appreciation Award to be paid under the Plan with respect to
Equity Value on the Distribution Date that is greater than
$100,000,000 but less than or equal to $200,000,000.
1.33
“ Share Unit ”
shall mean a hypothetical share of Common Stock. Share Units
may include fractions of a Share Unit.
1.34
“Subsequent Distribution
Date” shall mean one or more dates after the Initial
Distribution Date on which at least a substantial portion of the
Merisant Investors receive cash or
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marketable securities in exchange
for any of their shares of Common Stock in a transaction or series
of related transactions.
1.35
“Subsidiary” shall mean a corporation of which the Company
directly or indirectly owns more than 50 percent of the Voting
Stock or any other business entity in which the Company directly or
indirectly has an ownership interest of more than 50
percent.
1.36
“Third Level Appreciation
Award” shall mean
an Appreciation Award to be paid under the Plan with respect to
Equity Value on the Distribution Date that is greater than
$200,000,000.
1.37
“ Total Common Stock
” shall mean 9,089,380 shares of Common Stock, as adjusted in
accordance with Section 6.2 below.
1.38
“Total Share
Units” shall mean,
with respect to First Level Appreciation Awards, 869,499 Share
Units; with respect to Second Level Appreciation Awards, 1,111,026
Share Units; and, with respect to Third Level Appreciation Awards,
1,363,531 Share Units.
1.39
“Treasury
Regulation” shall
mean the regulations promulgated under the Code by the United
States Department of the Treasury, as amended from time to
time.
1.40
“Vest”
shall mean that the Participant has
an unrestricted right, title and interest to receive the
compensation (whether payable in cash or stock or a combination of
both) attributable to an Appreciation Award (or a portion of such
Appreciation Award) or to otherwise enjoy the benefits underlying
such Appreciation Award without a substantial ris