☐
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Preliminary Proxy Statement
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☐
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
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☒
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Definitive Proxy Statement
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☐
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Definitive Additional Materials
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☐
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Soliciting Material Pursuant to §240.14a-12
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☒
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No fee required.
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☐
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Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
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(1)
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Title of each class of securities to which the transaction applies:
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(2)
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Aggregate number of securities to which the transaction applies:
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(3)
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Per unit price or other underlying value of the transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
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(4)
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Proposed maximum aggregate value of the transaction:
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(5)
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Total fee paid:
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☐
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Fee paid previously with preliminary materials.
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☐
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Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
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(1)
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Amount Previously Paid:
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(2)
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Form, Schedule or Registration Statement No.:
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(3)
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Filing Party:
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(4)
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Date Filed:
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(1)
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To elect Mr. Ram Mukunda and Mr. Sudhakar Shenoy to the Company’s board of directors to serve as a Class C and Class A directors, respectively, until the 2019 and 2020 annual meetings of Stockholders and until such directors’ respective successors shall be duly elected and qualified, or until such directors’ earlier death, resignation or removal from office;
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(2)
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To ratify the appointment of AJSH & Company (“AJSH”), as the Company’s independent registered public accounting firm for the 2018 fiscal year;
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(3)
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To approve the issuance of up to 2,000,000 additional shares of our common stock to Bricoleur Partners, L.P. (“Bricoleur”), to be used as payment of principal and/or interest;
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(4)
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To approve the grant of 1,900,000 shares of common stock to be granted from time to time to the Company’s current and new employees, advisors, directors, and consultants by the board of directors, pursuant to certain metrics including performance, vesting and incentive as set by the board of directors and or the CEO;
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(5)
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To approve the adoption of the IGC’s 2018 Omnibus Incentive Plan for a period of 10 years commencing in 2018 on substantially the same terms as the current shareholder approved 2008 Omnibus Incentive Plan as Amended set to expire in 2018.
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(6)
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To approve, by a non-binding advisory vote, the compensation of the Company’s named executive officers as disclosed pursuant to the SEC’s compensation disclosure rules (which disclosure includes the Compensation Discussion and Analysis, the compensation tables and the narrative disclosures that accompany the compensation tables) (the “Say-on-Pay Proposal”); and
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(7)
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To act upon such other matters as may properly come before the Annual Meeting, including any proposal to adjourn or postpone of the Annual Meeting to a later date or dates, if necessary, to permit further solicitation and vote of proxies (the “Adjournment Proposal”).
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Name
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Age
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Position
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Time in Position
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|||
Ram Mukunda
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59
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Chief Executive Officer, Executive Chairman, President and Class C Director
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April 2005 to the Present
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Sudhakar Shenoy
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70
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Compensation Committee Chairman
Class A Director
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Since 2012
May 2005 to the Present
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Name
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Age
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Position
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Time in Position
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|||
Mr. Richard Prins
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60
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Chairman of the Board and the Audit Committee
Class B Director
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Since 2012
2007 to Present
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·
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the determination of which employees, directors, advisors and consultants will be granted options and other awards;
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·
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the number of shares subject to options and other awards;
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·
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the exercise price of each option, which may not be less than fair market value on the date of grant;
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·
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the schedule upon which options become exercisable;
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·
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the terms and conditions of other awards, including conditions for repurchase, termination or cancellation, issue price and repurchase price; and
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·
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all other terms and conditions upon which each award may be granted in accordance with the Stock Plan.
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·
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provide that all outstanding options shall be assumed or substituted by the successor corporation;
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·
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upon written notice to a participant, (i) provide that the participant’s unexercised options or awards will terminate immediately prior to the consummation of such transaction unless exercised by the participant; or (ii) terminate all unexercised outstanding options immediately prior to the consummation of such transaction unless exercised by the optionee;
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·
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in the event of a merger pursuant to which holders of our common stock will receive a cash payment for each share surrendered in the merger, make or provide for a cash payment to the optionees equal to the difference between the merger price times the number of shares of our common stock subject to such outstanding options, and the aggregate exercise price of all such outstanding options, in exchange for the termination of such options;
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·
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provide that all or any outstanding options shall become exercisable in full immediately prior to such event; and
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·
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provide that outstanding awards shall be assumed or substituted by the successor corporation, become realizable or deliverable, or restrictions applicable to an award will lapse, in whole or in part, prior to or upon the reorganization event.
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Stock Grants: |
With respect to stock grants under the Stock Plan that result in the issuance of shares that are either not restricted as to transferability or not subject to a substantial risk of forfeiture, the grantee must generally recognize ordinary income equal to the fair market value of shares received. Thus, deferral of the time of issuance will generally result in the deferral of the time the grantee will be liable for income taxes with respect to such issuance. We generally will be entitled to a deduction in an amount equal to the ordinary income recognized by the grantee.
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Shares Owned
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|||||||
Name and Address of Beneficial Owner (1)
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Number of Shares
Beneficially Owned
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Percentage
of Class*
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||||||
Ranga Krishna (2)
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1,522,676
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5.5
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%
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|||||
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||||||||
Ram Mukunda
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3,389,233
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12.1
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%
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|||||
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||||||||
Richard Prins
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457,000
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1.6
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%
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|||||
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||||||||
Sudhakar Shenoy
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830,000
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3.0
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%
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|||||
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||||||||
John Cherin (3)
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325,000
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1.2
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%
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|||||
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||||||||
All Executive Officers and Directors as a group (3 persons)
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16.8
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%
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(1) |
Unless otherwise indicated, the address of each of the individuals listed in the table is c/o India Globalization Capital, Inc., 4336 Montgomery Avenue, Bethesda, MD 20814.
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(2) |
Based on available Form 4 and 13G filings including shares held beneficially by Wells Fargo & Company and International Pharma Trials.
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(3) |
Mr. Cherin, CFO, Treasurer, and Principal Accounting Officer (PAO), has been replaced by Mr. Shajy Mathilakathu and Mr. Rohit Goel, Co-Principal Accounting Officers, effective September 29, 2017.
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Name
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Positions
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Age
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Director Since
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Term will Expire
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Ram Mukunda
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President, Chief Executive Officer and Director (Class C director)
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59
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2005
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2019
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Mr. Rohit Goel
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Co-Principal Financial and Accounting Officer
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23
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—
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—
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Mr. Shajy Mathilakathu
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Co-Principal Financial and Accounting Officer
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49
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—
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—
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Richard Prins
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Chairman of the Board of Directors (Class B director)
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60
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|
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2007
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2018
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Sudhakar Shenoy
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Director (Class A director)
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70
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2005
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2017
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· |
base salary,
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· |
performance-based incentive cash and stock compensation,
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· |
right to purchase our common stock at a preset price (via stock options), and
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· |
401-K plan with matching contribution, and other benefits.
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- |
market data,
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- |
internal review of the executives’ compensation, both individually and relative to other officers, and
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- |
individual performance of the executive.
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· |
enhance the link between the creation of stockholder value and long-term executive incentive compensation,
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· |
provide an opportunity for increased equity ownership by executives, and
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· |
maintain competitive levels of total compensation.
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Name and Principal Position
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Year
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Salary
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Bonus
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Option/ Stock Awards
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Total Compensation
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|||||||||||||
Ram Mukunda (1)
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2017
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$
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300,000
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$
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-
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$
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125,000
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$
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425,000
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President and Chief Executive Officer
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2016
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$
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300,000
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$
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-
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$
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269,000
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$
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569,000
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|||||||||
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John Cherin (2)
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2017
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$
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20,500
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$
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$
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40,000
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$
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60,500
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CFO, Treasurer and Principal Financial and Accounting Officer
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(1) |
IGC is contractually obligated to pay the CEO an annual compensation of $300,000. The amounts actually paid were $300,000 and $150,000 in fiscal 2017 and 2016, respectively. The Option/Stock amounts reported represent the fair value of stock awards to the named executive officer as computed using the closing price for the day the issuance was granted. For Mr. Mukunda the stock grant includes a special grant approved by the stockholders on September 12, 2014 that vested in November 2015 and included in the Option/Stock Awards for fiscal year ended March 31, 2016.
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(2) |
Mr. Cherin was appointed as the CFO on November 15, 2016, prior to that he was a consultant to the Company. The amounts disclosed herein were paid to Mr. Cherin’s wholly owned Limited Liability Corporation during fiscal 2017. Effective September 29, 2017, IGC appointed Mr. Rohit Goel and Mr. Shajy Mathilakathu to the positions of Co-Principal Accounting Officers replacing John Cherin as CFO, Treasurer, and Principal Accounting Officer (PAO).
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Name
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Shares
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Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable
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Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable
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Option
Exercise
Price
($)
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Option
Expiration
Date
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||||||||||||||||
Ram Mukunda
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2,288,433
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(1
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)
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-
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-
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$
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-
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-
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|||||||||||||
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|||||||||||||||||||||
John Cherin (3)
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300,000
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(2
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)
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-
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-
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$
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-
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-
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(1) |
Include those granted under the 2008 Omnibus Incentive Plan and a grant voted on by the shareholders on September 12, 2014 that vested on November 4, 2015.
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(2) |
Includes 50,000 shares for previous consulting services and an additional 250,000 shares vesting over two years to serve as the Company’s CFO.
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(3) |
Effective September 29, 2017, IGC appointed Mr. Rohit Goel and Mr. Shajy Mathilakathu to the positions of Co-Principal Accounting Officers replacing John Cherin as CFO, Treasurer, and Principal Accounting Officer (PAO).
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Plan category
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(a)
Number of
securities to be
issued upon
exercise of
outstanding
options,
warrants and
rights (1)
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(b)
Weighted-
average exercise
price of
outstanding
options,
warrants and
rights
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(c)
Number of
securities
available for
future
issuance
(excluding
shares in
column (a)(1)
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|||||||||
Equity compensation plans approved by security holders:
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||||||||||||
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||||||||||||
2008 Omnibus Incentive Plan (2)
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$
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-
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$ | - |
$
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-
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(1) |
Consists of our 2008 Omnibus Incentive Plan, as amended. See Note 16, “Stock-Based Compensation” of the Notes to the Consolidated Financial Statements included in this report.
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(2) |
There are no options outstanding as on March 31, 2017.
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March 31, 2017
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March 31, 2016
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||||||
Audit Fees – AJSH & Co LLP
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$
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80,000
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$
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70,000
|
||||
Audit-Related Fees
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5,000
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5,000
|
||||||
Tax Fees
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-
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-
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||||||
All other Fees
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-
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-
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||||||
Total
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$
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85,000
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$
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75,000
|
1. |
Audit
services include audit work performed in the preparation of financial statements, as well as work that generally only the independent auditor can reasonably be expected to provide, including comfort letters, statutory audits, and attest services and consultation regarding financial accounting and/or reporting standards.
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2. |
Audit-Related
services are for assurance and related services that are traditionally performed by the independent auditor, including due diligence related to mergers and acquisitions, employee benefit plan audits, and special procedures required to meet certain regulatory requirements.
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3. |
Tax
services include all services performed by the independent auditor’s tax personnel except those services specifically related to the audit of the financial statements, and includes fees in the areas of tax compliance, tax planning and tax advice.
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4. |
Other
Fees are those associated with services not captured in the other categories.
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· |
The Audit Committee reviewed and discussed the Company’s Audited Financial Statements with management;
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· |
The Audit Committee discussed with AJSH & Co LLP the Company’s independent auditors for fiscal year 2017, the matters required to be discussed by Statements on Auditing Standards No. 61 (Codification of Statements on Auditing Standards, AU §380), as adopted by the Public Company Accounting Oversight Board in Rule 3200T;
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· |
The Audit Committee received from the independent auditors the written disclosures regarding auditor independence and the letter required by Independence Standards Board Standard No. 1 (Independence Discussions with Audit Committees), discussed with AJSH & Co LLP, its independence from the Company and its management, and considered whether AJSH & Co LLP’s provision of non-audit services to the Company was compatible with the auditor’s independence; and
|
· |
Based on the review and discussion referred to above, and in reliance thereon, the Audit Committee recommended to the Board that the Audited Financial Statements be included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017, for filing with the U.S. Securities and Exchange Commission.
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Exhibit No.
|
Description
|
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10.1
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1.
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The Board of Directors recommends a vote FOR the directors of the Company listed below, to serve until the Annual Meeting of Stockholders following the 2019 (Ram Mukunda) and 2020 (Sudhakar Shenoy) fiscal years and until such directors’ respective successors shall be elected and qualified, or until such directors’ earlier death, resignation or removal from office.
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||
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MR. RAM MUKUNDA
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FOR ☐ |
WITHHOLD
☐
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MR. SUDHAKAR SHENOY
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FOR
☐
|
WITHHOLD
☐
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|
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2.
|
The Board of Directors recommends a vote FOR ratification of the appointment of AJSH & Company (“AJSH”) as the independent auditors for the Company for the fiscal year ending March 31, 2018.
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||
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FOR
☐
|
AGAINST
☐
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ABSTAIN
☐
|
3.
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The Board of Directors recommends a vote FOR the issuance of up to 2,000,000 additional shares of our common stock to Bricoleur Partners, L.P., to be used for the payment of principal and/or interest.
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||
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FOR
☐
|
AGAINST
☐
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ABSTAIN
☐
|
|
|
|
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4.
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The Board of Directors recommends a vote FOR approval of the special grant of 1,900,000 shares of common stock to the Company’s current and future officers, directors, employees, advisors, and consultants as determined by the Compensation Committee.
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||
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FOR
☐
|
AGAINST
☐
|
ABSTAIN
☐
|
5.
|
The Board of Directors recommends a vote FOR approval of the Company’s 2018 Omnibus Incentive Plan (“Stock Plan”) for a period of 10 years, on substantially the same terms as the 2008 Omnibus Incentive Plan that is set to expire in March 2018.
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||
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FOR
☐
|
AGAINST
☐
|
ABSTAIN
☐
|
|
|
|
|
6.
|
The Board of Directors recommends a vote FOR approval, by a non-binding advisory vote, of the compensation of the Company’s named executive officers as disclosed pursuant to the SEC’s compensation disclosure rules (which disclosure includes the Compensation Discussion and Analysis, the compensation tables and the narrative disclosures that accompany the compensation tables) (the “Say-on-Pay Proposal”).
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||
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|
|
|
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FOR
☐
|
AGAINST
☐
|
ABSTAIN
☐
|
|
|
|
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7. |
The Board of Directors recommends a vote FOR the Adjournment Proposal which allows the Chairman or Executive Chairman to adjourn the meeting to a later date or dates, if necessary, to permit further solicitation of vote of proxies.
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||
FOR ☐ |
AGAINST
☐
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ABSTAIN
☐
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|
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Dated: __________________, 2017
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X
__________________
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X
__________________
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Signature(s) of Stockholders
|
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ARTICLE 1.
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ESTABLISHMENT, PURPOSE, AND DURATION
|
1
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ARTICLE 2.
|
DEFINITIONS
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1
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ARTICLE 3.
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ADMINISTRATION
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6
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ARTICLE 4.
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SHARES SUBJECT TO THE PLAN
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8
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ARTICLE 5.
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ELIGIBILITY AND PARTICIPATION
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10
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ARTICLE 6.
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STOCK OPTIONS
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10
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ARTICLE 7.
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STOCK APPRECIATION RIGHTS
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13
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ARTICLE 8.
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RESTRICTED STOCK AND RESTRICTED STOCK UNITS
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15
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ARTICLE 9.
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PERFORMANCE UNITS/PERFORMANCE SHARES
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17
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ARTICLE 10.
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CASH-BASED AWARDS AND OTHER STOCK-BASED AWARDS
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19
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ARTICLE 11.
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PERFORMANCE MEASURES
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20
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ARTICLE 12.
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DIVIDEND EQUIVALENTS
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22
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ARTICLE 13.
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BENEFICIARY DESIGNATION
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22
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ARTICLE 14.
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RIGHTS OF PARTICIPANTS
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22
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ARTICLE 15.
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CHANGE IN CONTROL
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23
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ARTICLE 16.
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CANCELLATION OF AWARDS
|
24
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ARTICLE 17.
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AMENDMENT, MODIFICATION AND TERMINATION
|
25
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ARTICLE 18.
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WITHHOLDING
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25
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ARTICLE 19.
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INDEMNIFICATION
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26
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ARTICLE 20.
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SUCCESSORS
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26
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ARTICLE 21.
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GENERAL PROVISIONS
|
27
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(a)
|
“
Affiliate
” shall mean any corporation or other entity (including, but not limited to, a partnership or limited liability company) that is affiliated with the Company through stock or equity ownership such that it controls or is controlled by, or is under common control with, the Company.
|
(b)
|
“
Agreement
” means an agreement entered into by each Participant and the Company, setting forth the terms and provisions applicable to Awards granted to Participants under this Plan.
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(c)
|
“
Award
” means, individually or collectively, a grant under this Plan of Incentive Stock Options, Nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units, Other Stock-Based Awards and Cash-Based Awards.
|
(d)
|
“
Beneficial Owner
” or “
Beneficial Ownership
” shall have the meaning ascribed to such term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act.
|
(e)
|
“
Board
” or “
Board of Directors
” means the Board of Directors of the Company.
|
(f)
|
“
Cause
” means (i) the same definition for “cause” set forth in any employment agreement between the Participant and the Company, Subsidiary and/or Affiliate in effect when the event(s) occur, or, (ii) in the absence of such an employment agreement, the Participant’s conduct that is (A) the Participant’s engaging in any act or omission in the capacity of his or her employment with the Company, Subsidiary and/or Affiliate constituting dishonesty, theft, fraud, embezzlement, moral turpitude or other wrongdoing or malfeasance; or, (B) the Participant’s conviction of a felony under federal or state law; or, (C) the Participant’s engaging in any act or omission constituting gross misuse of his or her authorities, gross or continual dereliction of his or her duties to the Company, Subsidiary and/or Affiliate, or that is materially injurious or embarrassing to any such entity’s business, operations or reputation; or, (D) the Participant breaching the noncompetition, nonsolicitation, or confidentiality provisions of any written agreement with the Company, Subsidiary and/or Affiliate prohibiting such conduct. Solely for purposes of this Plan, the Plan Administrator may use the designation of “Cause,” or without “Cause,” determined by the Company (or any subsidiary that is the “employer” of the Participant) or the Plan Administrator may make an independent designation of “Cause” with respect to employment termination in accordance with the terms of this Plan. The designation of the Plan Administrator with respect to “Cause” under this Plan shall not be used for any other purpose and shall not be used against either the Company or any Participant.
|
(g)
|
“
Change in Control
” has meaning set forth in
Article 15
of this Plan.
|
(h)
|
“
Code
” means the Internal Revenue Code of 1986, as amended from time to time, or any successor act thereto.
|
(i)
|
“
Committee
” means the Compensation Committee of the Board of Directors appointed by the Board to administer the Plan with respect to grants of Awards, as specified in
Article 3
, and to perform the functions set forth therein; or in the absence of such appointment, the Board itself.
|
(j)
|
“
Common Stock
” means the common stock of the Company.
|
(k)
|
“
Company
” means India Globalization Capital, Inc., a Maryland corporation, or any successor thereto as provided in
Article 20
.
|
(l)
|
“
Covered Employee
” means any key Employee who is or may become a “Covered Employee,” as defined in Code Section 162(m), and who is designated, either as an individual Employee or class of Employees, by the Committee within the shorter of: (i) ninety (90) days after the beginning of the Performance Period, or (ii) twenty-five percent (25%) of the Performance Period has elapsed, as a “Covered Employee” under this Plan for such applicable Performance Period.
|
(m)
|
“
Detrimental Activity
” means the violation of any agreement between the Company, Subsidiary and/or Affiliate and the Participant pertaining to (a) the disclosure of confidential information or trade secrets of any such entity, (b) the solicitation of employees, customers, suppliers, licensees, licensors or contractors of any such entity, or (c) the performance of competitive services with respect to the business of the Company, Subsidiary and/or Affiliate; provided, that the Committee may provide in the Agreement that only certain of the restrictions provided above apply for purposes of the Agreement.
|
(n)
|
“
Director
” means any individual who is a member of the Board of Directors of the Company or any Parent, Subsidiary, or Affiliate and who is not an Employee.
|
(o)
|
“
Disability
” shall have the meaning ascribed in such term in the Company’s long-term disability plan covering the Participant, or in the absence of such plan, a meaning consistent with Code Section 22(e)(3), unless otherwise specified in an employment agreement between the Company, Subsidiary and/or Affiliate and a Participant. The existence of Disability shall be determined by the Committee in good faith. To the extent an Award constitutes “deferred compensation” subject to Code Section 409A and provides for payment upon disability, the Agreement shall define “disability” pursuant to Treasury Regulation Section 1.409A-3(i)(4).
|
(p)
|
“
Employee
” means any employee of the Company or any Parent, Subsidiary, or Affiliate.
|
(q)
|
“
Exchange Act
” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto.
|
(r)
|
“
Fa
ir
Market Value
” shall be determined as follows:
|
(i)
|
If, on the relevant date, the Shares are traded on a national or regional securities exchange or on The New York Stock Exchange (Market) (“NYSE AMERICAN”) and closing sale prices for the Shares are customarily quoted, on the basis of the closing sale price on the principal securities exchange on which the Shares may then be traded or, if there is no such sale on the relevant date, then on the immediately preceding day on which a sale was reported;
|
(ii)
|
If, on the relevant date, the Shares are not listed on any securities exchange or traded on NYSE AMERICAN, but nevertheless are publicly traded and reported on NYSE AMERICAN without closing sale prices for the Shares being customarily quoted, on the basis of the mean between the closing bid and asked quotations in such other over-the-counter market as reported by NYSE AMERICAN; but, if there are no bid and asked quotations in the over-the-counter market as reported by NYSE AMERICAN on that date, then the mean between the closing bid and asked quotations in the over-the-counter market as reported by NYSE AMERICAN on the immediately preceding day such bid and asked prices were quoted; and
|
(iii)
|
If, on the relevant date, the Shares are not publicly traded as described in (i) or (ii), on the basis of the good faith determination of the Committee.
|
(s)
|
“
Grant Price
” means the price established when the Committee approves the grant of a SAR pursuant to
Article 7
, used to determine whether there is any payment due upon exercise of the SAR.
|
(t)
|
“
Incentive Stock Option
” or “
ISO
” means an option to purchase Shares granted under
Article 6
to an Employee which is designated as an Incentive Stock Option and is intended to meet the requirements of Section 422 of the Code, or any successor provision.
|
(u)
|
“
Insider
” shall mean an individual who is, on the relevant date, an officer or a director, or a ten percent (10%) Beneficial Owner of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act or any successor provision, as “officer” and “director” are defined under Section 16 of the Exchange Act.
|
(v)
|
“
No
nqualified
Stock Option
” or “
NQSO
” means an option to purchase Shares granted under
Article 6
, and which is not intended to meet the requirements of Code Section 422 or which fails to meet such requirements.
|
(w)
|
“
Non-Tandem SAR
” means a SAR that is granted independently of any Option, as described in
Article 7
.
|
(x)
|
“
Option
” means an Incentive Stock Option or a Nonqualified Stock Option, as described in
Article 6
.
|
(y)
|
“
Option Price
” means the price at which a Share may be purchased by a Participant pursuant to an Option, as determined by the Committee.
|
(z)
|
“
Other Stock-Based Award
” means an equity-based or equity-related Award not otherwise described by the terms of this Plan, granted pursuant to
Article 10
.
|
(aa)
|
“
Parent
” means a “parent corporation,” whether now or hereafter existing as defined in Code Section 424(e).
|
(bb)
|
“
Participant
” means an Employee, a Director, consultant or other person who performs services for the Company or a Parent, Subsidiary, or Affiliate of the Company, who has been granted an Award under the Plan which is outstanding.
|
(cc)
|
“
Performance-Based Compensation
” means compensation under an Award that is intended to satisfy the requirements of Code Section 162(m) for certain performance-based compensation paid to Covered Employees. Notwithstanding the foregoing, nothing in this Plan shall be construed to mean that an Award which does not satisfy the requirements for performance-based compensation under Code Section 162(m) does not constitute performance-based compensation for other purposes, including Code Section 409A.
|
(dd)
|
“
Performance-Based Exception
” means the exception for Performance-Based Compensation from the tax deductibility limitations of Code Section 162(m).
|
(ee)
|
“
Performance Measures
” means measures as described in
Article 11
on which the performance goals are based and which are approved by the Company’s shareholders pursuant to this Plan in order to qualify Awards as Performance-Based Compensation.
|
(ff)
|
“
Performance Period
” means the period of time during which the performance goals must be met in order to determine the degree of payout and/or vesting with respect to an Award.
|
(gg)
|
“
Performance Share
” means an Award under
Article 9
and subject to the terms of this Plan, denominated in fully paid Shares, the value of which at the time it is payable is determined as a function of the extent to which corresponding performance criteria or Performance Measure(s), as applicable, have been achieved.
|
(hh)
|
“
Performance Unit
” means an Award under
Article 9
and subject to the terms of this Plan, denominated in units, the value of which at the time it is payable is determined as a function of the extent to which corresponding performance criteria or Performance Measure(s), as applicable, have been achieved.
|
(ii)
|
“
Period of Restriction
” means the period when Restricted Stock or Restricted Stock Units are subject to a substantial risk of forfeiture (based on the passage of time, the achievement of performance goals, or the occurrence of other events as determined by the Committee, in its discretion).
|
(jj)
|
“
Person
” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof.
|
(kk)
|
“
Plan
” means this India Globalization Capital, Inc. 2018 Omnibus Incentive Plan, including any amendments thereto.
|
(ll)
|
“
Plan Year
” means the Company’s fiscal year.
|
(mm)
|
“
Restricted Stock
” means an Award of Common Stock granted in accordance with the terms of
Article 8
and the other provisions of the Plan, and which is nontransferable and subject to a substantial risk of forfeiture. Shares of Common Stock shall cease to be Restricted Stock when, in accordance with the terms hereof and the applicable Agreement, they become transferable and free of substantial risk of forfeiture.
|
(nn)
|
“
Restricted Stock Unit
” means an Award to a Participant pursuant to
Article 8
, except that no Shares are actually awarded to the Participant on the Grant Date.
|
(oo)
|
“
Shares
” means the shares of Common Stock of the Company (including any new, additional or different stock or securities resulting from the changes described in
Section 4.2
).
|
(pp)
|
“
Stock Appreciation Right
” or “
SAR
” means an Award, designated as a SAR, pursuant to the terms of
Article 7
herein.
|
(qq)
|
“
Subsidiary
” means (i) in the case of an ISO, any company during any period in which it is a “subsidiary corporation” (as that term is defined in Code Section 424(f)), and (ii) in the case of all other Awards, in addition to a “subsidiary corporation” as defined above, a partnership, limited liability company, joint venture or other entity in which the Company as fifty percent (50%) or more of the voting power or equity interests.
|
(rr)
|
“
Tandem SAR
” means a SAR that is granted in connection with a related Option pursuant to
Article 7
, the exercise of which shall require forfeiture of the right to purchase a Share under the related Option (and when a Share is purchased under the Option, the Tandem SAR shall similarly be forfeited).
|
(ss)
|
“
Third-Party Service Provider
” means any consultant, agent, advisor, or independent contractor who renders services to the Company, any Parent, any Subsidiary, or an Affiliate that: (i) are not in connection with the offer or sale of the Company’s securities in a capital raising transaction; and (ii) do not directly or indirectly promote or maintain a market for the Company’s securities.
|
(a)
|
The grant of an Award shall reduce the Shares available for grant under the Plan by the number of Shares subject to the Award.
|
(b)
|
While an Award is outstanding, Shares subject to the Award shall be counted against the authorized pool of Shares, regardless of vested status.
|
(c)
|
Any Shares related to Awards which terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such Shares, are settled in cash in lieu of Shares, or are exchanged with the Committee’s permission, prior to the issuance of Shares, for Awards not involving Shares, shall be available again for grant under this Plan.
|
(d)
|
If the Option Price of any Option granted under this Plan is satisfied by tendering Shares to the Company (by either actual delivery or by attestation and subject to
Section 6.7
), or if a SAR is exercised, only the number of Shares issued, net of the Shares tendered, if any, will be delivered for purposes of determining the maximum number of Shares available for delivery under this Plan.
|
(a)
|
Options.
The maximum aggregate number of Shares subject to Options granted in any one Plan Year to any one Participant shall be three million (3,000,000) as adjusted pursuant to
Sections 4.4
and/or
17.2
.
|
(b)
|
SARs.
The maximum number of Shares subject to Stock Appreciation Rights granted in any one Plan Year to any one Participant shall be three million (3,000,000), as adjusted pursuant to
Sections 4.4
and/or
17.2
.
|
(c)
|
Restricted Stock Units or Restricted Stock.
The maximum aggregate grant with respect to Awards of Restricted Stock Units or Restricted Stock that a Participant may receive in any one Plan Year shall be three million (3,000,000) Shares, as adjusted pursuant to
Sections 4.4
and/or
17.2
, or equal to the value of three million (3,000,000) Shares, as adjusted pursuant to
Sections 4.4
and/or
17.2
.
|
(d)
|
Performance Units or Performance Shares.
The maximum aggregate Award of Performance Units or Performance Shares that a Participant may receive in any one Plan Year shall be three million (3,000,000) Shares, as adjusted pursuant to
Sections 4.4
and/or
17.2
, or equal to the value of three million (3,000,000) Shares, as adjusted pursuant to
Sections 4.4
and/or
17.2
, determined as of the date of vesting or payout, as applicable.
|
(e)
|
Cash-Based Awards.
The maximum aggregate amount awarded or credited with respect to Cash-Based Awards to any one Participant in any one Plan Year may not exceed the greater of the value of eighteen million dollars ($18,000,000) or three million (3,000,000) Shares, as adjusted pursuant to
Sections 4.4
and/or
17.2
, determined as of the date of vesting or payout, as applicable.
|
(f)
|
Other Stock-Based Awards.
The maximum aggregate grant with respect to Other Stock-Based Awards pursuant to
Section 10.2
in any one Plan Year to any one Participant shall be three million
(3,000,000) Shares, as adjusted pursuant to
Sections 4.4
and/or
17.2
.
|
(a)
|
The excess of the Fair Market Value of a Share on the date of exercise over the Grant Price; by
|
(b)
|
The number of Shares with respect to which the SAR is exercised.
|
(a)
|
The Participant shall not be entitled to delivery of a certificate until the expiration or termination of the Period of Restriction for the Shares represented by such certificate and the satisfaction of any and all other conditions prescribed in the Agreement or by the Committee or Board;
|
(b)
|
None of the Shares of Restricted Stock may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the Period of Restriction and until the satisfaction of any and all other conditions prescribed in the Agreement or by the Committee or Board (including satisfaction of any applicable tax withholding obligations); and
|
(c)
|
All of the Shares of Restricted Stock that have not vested shall be forfeited and all rights of the Participant to such Shares of Restricted Stock shall terminate without further obligation on the part of the Company, unless the Participant has remained an employee of (or Director of or active Third-Party Service Provider providing services to) the Company or any of its Subsidiaries, until the expiration or termination of the Period of Restriction and the satisfaction of any and all other conditions prescribed in the Agreement or by the Committee or Board applicable to such Shares of Restricted Stock. Upon the forfeiture of any Shares of Restricted Stock, such forfeited Shares shall be transferred to the Company without further action by the Participant and shall, in accordance with
Section 4.2
, again be available for grant under the Plan. If the Participant paid any amount for the Shares of Restricted Stock that are forfeited, the Company shall pay the Participant the lesser of the Fair Market Value of the Shares on the date they are forfeited or the amount paid by the Participant.
|
(a)
|
Net earnings or net income (before or after taxes);
|
(b)
|
Earnings per share (basic or fully diluted);
|
(c)
|
Net sales or revenue growth;
|
(d)
|
Net operating profit;
|
(e)
|
Return measures (including, but not limited to, return on assets, capital, invested capital, equity, sales, or revenue);
|
(f)
|
Cash flow (including, but not limited to, operating cash flow, free cash flow, cash flow return on equity, and cash flow return on investment);
|
(g)
|
Earnings before or after taxes, interest, depreciation, and/or amortization;
|
(h)
|
Gross or operating margins;
|
(i)
|
Productivity ratios;
|
(j)
|
Share price (including, but not limited to, growth measures and total shareholder return);
|
(k)
|
Expense targets;
|
(l)
|
Leverage targets (including, but not limited to, absolute amount of consolidated debt, EBITDA/consolidated debt ratios and/or debt to equity ratios);
|
(m)
|
Credit rating targets;
|
(n)
|
Margins;
|
(o)
|
Operating efficiency;
|
(p)
|
Market share;
|
(q)
|
Developing new products and lines of revenue;
|
(r)
|
Reducing operating expenses;
|
(s)
|
Developing new markets;
|
(t)
|
Meeting completion schedules;
|
(u)
|
Developing and managing relationships with regulatory and other governmental agencies;
|
(v)
|
Managing cash;
|
(w)
|
Managing claims against the Company, including litigation; and
|
(x)
|
Identifying and completing strategic acquisitions
|
(a)
|
provide that all outstanding Options shall be assumed or substituted by the successor corporation;
|
(b)
|
in the event of a Change in Control or merger pursuant to which holders of the Company’s common stock will receive a cash payment for each share surrendered in the merger, make or provide for a cash payment to the Participants equal to the difference between the merger price times the number of shares of the Company’s common stock subject to such outstanding Options, and the aggregate Option Price of all such outstanding Options, in exchange for the termination of such Options;
|
(c)
|
upon written notice to a Participant, (i) provide that the Participant’s unexercised Options or Awards will terminate immediately prior to the consummation of such transaction unless exercised by the Participant; or (ii) terminate all unexercised outstanding Options immediately prior to the consummation of such transaction unless exercised by the Participant;
|
(d)
|
provide that all or any outstanding Options shall become exercisable in full immediately prior to such event; and
|
(e)
|
provide that outstanding Awards shall be assumed or substituted by the successor corporation, become realizable or deliverable, or restrictions applicable to an Award will lapse, in whole or in part, prior to or upon the Change in Control, merger or other reorganization event, as the case may be.
|
(a)
|
The closing of the sale of all or substantially all of Company’s assets as an entirety to any person or related group of persons other than an existing holder or existing holders of Company’s equity;
|
(b)
|
The merger or consolidation of Company with or into another entity or the merger or consolidation of another entity with or into Company, in either case with the effect that immediately after such transaction the equity holders of Company immediately prior to such transaction hold less than a majority in interest of the total voting power of the outstanding voting interests of the entity surviving such merger or consolidation; or
|
(c)
|
The closing of a transaction pursuant to which beneficial ownership of more than fifty percent (50%) of Company’s outstanding voting equity is transferred to any person or related group of persons other than an existing holder or existing holders of Company’s equity.
|
(a)
|
Determine which Affiliates and Subsidiaries shall be covered by this Plan;
|
(b)
|
Determine which Employees, Directors, and/or Third-Party Service Providers outside the United States are eligible to participate in this Plan;
|
(c)
|
Modify the terms and conditions of any Award granted to Employees and/or Third-Party Service Providers outside the United States to comply with applicable foreign laws;
|
(d)
|
Establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable. Any subplans and modifications to Plan terms and procedures established under this
Section 21.6
by the Committee shall be attached to this Plan document as appendices; and
|
(e)
|
Take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary local government regulatory exemptions or approvals.
|