EXHIBIT 4.2
GLOBAL LINKS CORP.
AMENDED NON-EMPLOYEE DIRECTORS AND CONSULTANTS
RETAINER STOCK PLANFOR THE YEAR 2004 NO. 3
1. Introduction. This Amended Plan shall be known as the "Global Links
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Corp. Amended Non-Employee Directors and Consultants Retainer Stock Plan for the
Year 2004 No. 3," and is hereinafter referred to as the "Amended Plan." The
purposes of this Amended Plan are to enable Global Links Corp., a Nevada
corporation (the "Company"), to promote the interests of the Company and its
stockholders by attracting and retaining non-employee Directors and Consultants
capable of furthering the future success of the Company and by aligning their
economic interests more closely with those of the Company's stockholders, by
paying their retainer or fees in the form of shares of the Company's common
stock, par value $0.001 per share (the "Common Stock").
2. Definitions. The following terms shall have the meanings set forth
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below:
"Board" means the Board of Directors of the Company.
"Change of Control" has the meaning set forth in Paragraph 12(d) hereof.
"Code" means the Internal Revenue Code of 1986, as amended, and the rules
and regulations thereunder. References to any provision of the Code or rule or
regulation thereunder shall be deemed to include any amended or successor
provision, rule or regulation.
"Committee" means the committee that administers this Amended Plan, as more
fully defined in Paragraph 13 hereof.
"Common Stock" has the meaning set forth in Paragraph 1 hereof.
"Company" has the meaning set forth in Paragraph 1 hereof.
"Consultants" means the Company's consultants and advisors only if: (i)
they are natural persons; (ii) they provide bona fide services to the Company;
and (iii) the services are not in connection with the offer or sale of
securities in a capital-raising transaction, and do not directly or indirectly
promote or maintain a market for the Company's securities.
"Deferral Election" has the meaning set forth in Paragraph 6 hereof.
"Deferred Stock Account" means a bookkeeping account maintained by the
Company for a Participant representing the Participant's interest in the shares
credited to such Deferred Stock Account pursuant to Paragraph 7 hereof.
"Delivery Date" has the meaning set forth in Paragraph 6 hereof.
"Director" means an individual who is a member of the Board of Directors of
the Company.
"Dividend Equivalent" for a given dividend or other distribution means a
number of shares of the Common Stock having a Fair Market Value, as of the
record date for such dividend or distribution, equal to the amount of cash, plus
the Fair Market Value on the date of distribution of any property, that is
distributed with respect to one share of the Common Stock pursuant to such
dividend or distribution; such Fair Market Value to be determined by the
Committee in good faith.
"Effective Date" has the meaning set forth in Paragraph 3 hereof.
"Exchange Act" has the meaning set forth in Paragraph 12(d) hereof.
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"Fair Market Value" means the mean between the highest and lowest reported
sales prices of the Common Stock on the New York Stock Exchange Composite Tape
or, if not listed on such exchange, on any other national securities exchange on
which the Common Stock is listed or on The Nasdaq Stock Market, or, if not so
listed on any other national securities exchange or The Nasdaq Stock Market,
then the average of the bid price of the Common Stock during the last five
trading days on the OTC Bulletin Board immediately preceding the last trading
day prior to the date with respect to which the Fair Market Value is to be
determined. If the Common Stock is not then publicly traded, then the Fair
Market Value of the Common Stock shall be the book value of the Company per
share as determined on the last day of March, June, September, or December in
any year closest to the date when the determination is to be made. For the
purpose of determining book value hereunder, book value shall be determined by
adding as of the applicable date called for herein the capital, surplus, and
undivided profits of the Company, and after having deducted any reserves
theretofore established; the sum of these items shall be divided by the number
of shares of the Common Stock outstanding as of said date, and the quotient thus
obtained shall represent the book value of each share of the Common Stock of the
Company.
"Participant" has the meaning set forth in Paragraph 4 hereof.
"Payment Time" means the time when a Stock Retainer is payable to a
Participant pursuant to Paragraph 5 hereof (without regard to the effect of any
Deferral Election).
"Stock Retainer" has the meaning set forth in Paragraph 5 hereof.
"Third Anniversary" has the meaning set forth in Paragraph 6 hereof.
3. Effective Date of the Amended Plan. This Amended Plan was adopted
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by the Board effective December 17, 2004 (the "Effective Date").
4. Eligibility. Each individual who is a Director or Consultant on the
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Effective Date and each individual who becomes a Director or Consultant
thereafter during the term of this Amended Plan, shall be a participant (the
"Participant") in this Amended Plan, in each case during such period as such
individual remains a Director or Consultant and is not an employee of the
Company or any of its subsidiaries. Each credit of shares of the Common Stock
pursuant to this Amended Plan shall be evidenced by a written agreement duly
executed and delivered by or on behalf of the Company and a Participant, if such
an agreement is required by the Company to assure compliance with all applicable
laws and regulations.
5. Grants of Shares. Commencing on the Effective Date, the amount of
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compensation for service to directors or consultants shall be payable in shares
of the Common Stock (the "Stock Retainer") pursuant to this Amended Plan. The
deemed issuance price of shares of the Common Stock subject to each Stock
Retainer shall not be less than 85 percent of the Fair Market Value of the
Common Stock on the date of the grant. In the case of any person who owns
securities possessing more than ten percent of the combined voting power of all
classes of securities of the issuer or its parent or subsidiaries possessing
voting power, the deemed issuance price of shares of the Common Stock subject to
each Stock Retainer shall be at least 100 percent of the Fair Market Value of
the Common Stock on the date of the grant.
6. Deferral Option. From and after the Effective Date, a Participant
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may make an election (a "Deferral Election") on an annual basis to defer
delivery of the Stock Retainer specifying which one of the following ways the
Stock Retainer is to be delivered (a) on the date which is three years after the
Effective Date for which it was originally payable (the "Third Anniversary"),
(b) on the date upon which the Participant ceases to be a Director or Consultant
for any reason (the "Departure Date") or (c) in five equal annual installments
commencing on the Departure Date (the "Third Anniversary" and "Departure Date"
each being referred to herein as a "Delivery Date"). Such Deferral Election
shall remain in effect for each Subsequent Year unless changed, provided that,
any Deferral Election with respect to a particular Year may not be changed less
than six months prior to the beginning of such Year, and provided, further, that
no more than one Deferral Election or change thereof may be made in any Year.
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Any Deferral Election and any change or revocation thereof shall be made by
delivering written notice thereof to the Committee no later than six months
prior to the beginning of the Year in which it is to be effected; provided that,
with respect to the Year beginning on the Effective Date, any Deferral Election
or revocation thereof must be delivered no later than the close of business on
the 30th day after the Effective Date.
7. Deferred Stock Accounts. The Company shall maintain a Deferred
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Stock Account for each Participant who makes a Deferral Election to which shall
be credited, as of the applicable Payment Time, the number of shares of the
Common Stock payable pursuant to the Stock Retainer to which the Deferral
Election relates. So long as any amounts in such Deferred Stock Account have
not been delivered to the Participant under Paragraph 8 hereof, each Deferred
Stock Account shall be credited as of the payment date for any dividend paid or
other distribution made with respect to the Common Stock, with a number of
shares of the Common Stock equal to (a) the number of shares of the Common Stock
shown in such Deferred Stock Account on the record date for such dividend or
distribution multiplied by (b) the Dividend Equivalent for such dividend or
distribution.
8. Delivery of Shares.
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(a) The shares of the Common Stock in a Participant's Deferred Stock
Account with respect to any Stock Retainer for which a Deferral Election has
been made (together with dividends attributable to such shares credited to such
Deferred Stock Account) shall be delivered in accordance with this Paragraph 8
as soon as practicable after the applicable Delivery Date. Except with respect
to a Deferral Election pursuant to Paragraph 6 hereof, or other agreement
between the parties, such shares shall be delivered at one time; provided that,
if the number of shares so delivered includes a fractional share, such number
shall be rounded to the nearest whole number of shares. If the Participant has
in effect a Deferral Election pursuant to Paragraph 6 hereof, then such shares
shall be delivered in five equal annual installments (together with dividends
attributable to such shares credited to such Deferred Stock Account), with the
first such installment being delivered on the first anniversary of the Delivery
Date; provided that, if in order to equalize such installments, fractional
shares would have to be delivered, such installments shall be adjusted by
rounding to the nearest whole share. If any such shares are to be delivered
after the Participant has died or become legally incompetent, they shall be
delivered to the Participant's estate or legal guardian, as the case may be, in
accordance with the foregoing; provided that, if the Participant dies with a
Deferral Election pursuant to Paragraph 6 hereof in effect, the Committee shall
deliver all remaining undelivered shares to the Participant's estate
immediately. References to a Participant in this Amended Plan shall be deemed
to refer to the Participant's estate or legal guardian, where appropriate.
(b) The Company may, but shall not be required to, create a grantor
trust or utilize an existing grantor trust (in either case, "Trust") to assist
it in accumulating the shares of the Common Stock needed to fulfill its
obligations under this Paragraph 8. However, Participants shall have no
beneficial or other interest in the Trust and the assets thereof, and their
rights under this Amended Plan shall be as general creditors of the Company,
unaffected by the existence or nonexistence of the Trust, except that deliveries
of Stock Retainers to Participants from the Trust shall, to the extent thereof,
be treated as satisfying the Company's obligations under this Paragraph 8.
9. Share Certificates; Voting and Other Rights. The certificates for
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shares delivered to a Participant pursuant to Paragraph 8 above shall be issued
in the name of the Participant, and from and after the date of such issuance the
Participant shall be entitled to all rights of a stockholder with respect to the
Common Stock for all such shares issued in his name, including the right to vote
the shares, and the Participant shall receive all dividends and other
distributions paid or made with respect thereto.
10. General Restrictions.
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(a) Notwithstanding any other provision of this Amended Plan or
agreements made pursuant thereto, the Company shall not be required to issue or
deliver any certificate or certificates for shares of the Common Stock under
this Amended Plan prior to fulfillment of all of the following conditions:
(i) Listing or approval for listing upon official notice of
issuance of such shares on the New York Stock Exchange, Inc., or such other
securities exchange as may at the time be a market for the Common Stock;
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(ii) Any registration or other qualification of such shares
under any state or federal law or regulation, or the maintaining in effect of
any such registration or other qualification which the Committee shall, upon the
advice of counsel, deem necessary or advisable; and
(iii) Obtaining any other consent, approval, or permit from
any state or federal governmental agency which the Committee shall, after
receiving the advice of counsel, determine to be necessary or advisable.
(b) Nothing contained in this Amended Plan shall prevent the
Company from adopting other or additional compensation arrangements for the
Participants.
11. Shares Available. Subject to Paragraph 12 below, the maximum
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number of shares of the Common Stock which may in the aggregate be paid as Stock
Retainers pursuant to this Amended Plan is 125,000,000. Shares of the Common
Stock issuable under this Amended Plan may be taken from treasury shares of the
Company or purchased on the open market. In the event that any outstanding
Stock Retainer under this Amended Plan for any reason expires or is terminated,
the shares of Common Stock allocable to the unexercised portion of the Stock
Retainer shall be available for issuance under the Amended Global Links Corp.
Employee Stock Incentive Plan for the Year 2004 No. 3. The Compensation
Committee of the Board shall have the authority, in its discretion, to increase
the number of shares available for issuance under this Amended Plan, while
correspondingly decreasing the number of shares available for issuance under the
Global Links Corp. Amended Employee Incentive Stock Plan for the Year 2004 No.
3.
12. Adjustments; Change of Control.
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(a) In the event that there is, at any time after the Board adopts
this Amended Plan, any change in corporate capitalization, such as a stock
split, combination of shares, exchange of shares, warrants or rights offering to
purchase the Common Stock at a price below its Fair Market Value,
reclassification, or recapitalization, or a corporate transaction, such as any
merger, consolidation, separation, including a spin-off, stock dividend, or
other extraordinary distribution of stock or property of the Company, any
reorganization (whether or not such reorganization comes within the definition
of such term in Section 368 of the Code) or any partial or complete liquidation
of the Company (each of the foregoing a "Transaction"), in each case other than
any such Transaction which constitutes a Change of Control (as defined below),
(i) the Deferred Stock Accounts shall not be credited with the amount and kind
of shares or other property which would have been received by a holder of the
number of shares of the Common Stock held in such Deferred Stock Account had
such shares of the Common Stock been outstanding as of the effectiveness of any
such Transaction, (ii) the number and kind of shares or other property subject
to this Amended Plan shall also not be appropriately adjusted to reflect the
effectiveness of any such Transaction, and (iii) the Committee will not adjust
any other relevant provisions of this Amended Plan to reflect any such
transaction.
(b) If the shares of the Common Stock credited to the Deferred
Stock Accounts are converted pursuant to Paragraph 12(a) into another form of
property, references in this Amended Plan to the Common Stock shall be deemed,
where appropriate, to refer to such other form of property, with such other
modifications as may be required for this Amended Plan to operate in accordance
with its purposes. Without limiting the generality of the foregoing, references
to delivery of certificates for shares of the Common Stock shall be deemed to
refer to delivery of cash and the incidents of ownership of any other property
held in the Deferred Stock Accounts.
(c) In lieu of the adjustment contemplated by Paragraph 12(a), in
the event of a Change of Control, the following shall occur on the date of the
Change of Control (i) the shares of the Common Stock held in each Participant's
Deferred Stock Account shall be deemed to be issued and outstanding as of the
Change of Control; (ii) the Company shall forthwith deliver to each Participant
who has a Deferred Stock Account all of the shares of the Common Stock or any
other property held in such Participant's Deferred Stock Account; and (iii) this
Amended Plan shall be terminated.
(d) For purposes of this Amended Plan, Change of Control shall
mean any of the following events:
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(i) The acquisition by any individual, entity or group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
Act of 1934, as amended (the "Exchange Act")) (a "Person") of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 40 percent or more of either (1) the then outstanding shares of the Common
Stock of the Company (the "Outstanding Company Common Stock"), or (2) the
combined voting power of then outstanding voting securities of the Company
entitled to vote generally in the election of directors (the "Outstanding
Company Voting Securities"); provided, however, that the following acquisitions
shall not constitute a Change of Control (A) any acquisition directly from the
Company (excluding an acquisition by virtue of the exercise of a conversion
privilege unless the security being so converted was itself acquired directly
from the Company), (B) any acquisition by the Company, (C) any acquisition by
any 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 reorganization, merger or consolidation, if,
following such reorganization, merger or consolidation, the conditions described
in clauses (A), (B) and (C) of paragraph (iii) of this Paragraph 12(d) are
satisfied; or
(ii) Individuals who, as of the date hereof, constitute the
Board of the Company (as of the date hereof, "Incumbent Board") cease for any
reason to constitute at least a majority of the Board; provided, however, that
any individual becoming a director subsequent to the date hereof whose election,
or nomination for election by the Company's stockholders, was approved by a vote
of at least a majority of the directors then comprising the Incumbent Board
shall be considered as though such individual were a member of the Incumbent
Board, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of either an actual or threatened
election contest (as such terms are used in Rule 14a-11 of Regulation 14A
promulgated under the Exchange Act) or other actual or threatened solicitation
of proxies or consents by or on behalf of a Person other than the Board; or
(iii) Approval by the stockholders of the Company of a
reorganization, merger, binding share exchange or consolidation, unless,
following such reorganization, merger, binding share exchange or consolidation
(A) more than 60 percent of, respectively, then outstanding shares of common
stock of the corporation resulting from such reorganization, merger, binding
share exchange or consolidation and the combined voting power of then
outstanding voting securities of such corporation entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such reorganization, merger,
binding share exchange or consolidation in substantially the same proportions as
their ownership, immediately prior to such reorganization, merger, binding share
exchange or consolidation, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities, as the case may be, (B) no Person
(excluding the Company, any employee benefit plan (or related trust) of the
Company or such corporation resulting from such reorganization, merger, binding
share exchange or consolidation and any Person beneficially owning, immediately
prior to such reorganization, merger, binding share exchange or consolidation,
directly or indirectly, 20 percent or more of the Outstanding Company Common
Stock or Outstanding Company Voting Securities, as the case may be) beneficially
owns, directly or indirectly, 20 percent or more of, respectively, then
outstanding shares of common stock of the corporation resulting from such
reorganization, merger, binding share exchange or consolidation or the combined
voting power of then outstanding voting securities of such corporation entitled
to vote generally in the election of directors, and (C) at least a majority of
the members of the board of directors of the corporation resulting from such
reorganization, merger, binding share exchange or consolidation were members of
the Incumbent Board at the time of the execution of the initial agreement
providing for such reorganization, merger, binding share exchange or
consolidation; or
(iv) Approval by the stockholders of the Company of (1) a
complete liquidation or dissolution of the Company, or (2) the sale or other
disposition of all or substantially all of the assets of the Company, other than
to a corporation, with respect to which following such sale or other
disposition, (A) more than 60 percent of, respectively, then outstanding shares
of common stock of such corporation and the combined voting power of then
outstanding voting securities of such corporation entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such sale or other disposition in
substantially the same proportion as their ownership, immediately prior to such
sale or other disposition, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities, as the case may be, (B) no Person
(excluding the Company and any employee benefit
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plan (or related trust) of the Company or such corporation and any Person
beneficially owning, immediately prior to such sale or other disposition,
directly or indirectly, 20 percent or more of the Outstanding Company Common
Stock or Outstanding Company Voting Securities, as the case may be) beneficially
owns, directly or indirectly, 20 percent or more of, respectively, then
outstanding shares of common stock of such corporation and the combined voting
power of then outstanding voting securities of such corporation entitled to vote
generally in the election of directors, and (C) at least a majority of the
members of the board of directors of such corporation were members of the
Incumbent Board at the time of the execution of the initial agreement or action
of the Board providing for such sale or other disposition of assets of the
Company.
13. Administration; Amendment and Termination.
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(a) This Amended Plan shall be administered by a committee
consisting of two members who shall be the current directors of the Company or
senior executive officers or other directors who are not Participants as may be
designated by the Chief Executive Officer (the "Committee"), which shall have
full authority to construe and interpret this Amended Plan, to establish, amend
and rescind rules and regulations relating to this Amended Plan, and to take all
such actions and make all such determinations in connection with this Amended
Plan as it may deem necessary or desirable.
(b) The Board may from time to time make such amendments to this
Amended Plan, including to preserve or come within any exemption from liability
under Section 16(b) of the Exchange Act, as it may deem proper and in the best
interest of the Company without further approval of the Company's stockholders,
provided that, to the extent required under Nevada law or to qualify
transactions under this Amended Plan for exemption under Rule 16b-3 promulgated
under the Exchange Act, no amendment to this Amended Plan shall be adopted
without further approval of the Company's stockholders and, provided, further,
that if and to the extent required for this Amended Plan to comply with Rule
16b-3 promulgated under the Exchange Act, no amendment to this Amended Plan
shall be made more than once in any six month period that would change the
amount, price or timing of the grants of the Common Stock hereunder other than
to comport with changes in the Code, the Employee Retirement Income Security Act
of 1974, as amended, or the regulations thereunder. The Board may terminate
this Amended Plan at any time by a vote of a majority of the members thereof.
14. Restrictions on Transfer. Each Stock Option granted under this
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Amended Plan shall be transferable only by will or the laws of descent and
distribution. No interest of any Employee under this Amended Plan shall be
subject to attachment, execution, garnishment, sequestration, the laws of
bankruptcy or any other legal or equitable process. Each Stock Option granted
under this Amended Plan shall be exercisable during an Employee's lifetime only
by the Employee or by the Employee's legal representative.
15. Term of Amended Plan. No shares of the Common Stock shall be
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issued, unless and until the Directors of the Company have approved this Amended
Plan and all other legal requirements have been met. This Amended Plan was
adopted by the Board effective December 17, 2004, and shall expire on December
17, 2014.
16. Governing Law. This Amended Plan and all actions taken thereunder
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shall be governed by, and construed in accordance with, the laws of the State of
Nevada.
17. Information to Shareholders. The Company shall furnish to each of
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its stockholders financial statements of the Company at least annually.
18. Miscellaneous.
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(a) Nothing in this Amended Plan shall be deemed to create any
obligation on the part of the Board to nominate any Director for reelection by
the Company's stockholders or to limit the rights of the stockholders to remove
any Director.
(b) The Company shall have the right to require, prior to the
issuance or delivery of any shares of the Common Stock pursuant to this Amended
Plan, that a Participant make arrangements satisfactory to the Committee for the
withholding of any taxes required by law to be withheld with respect to the
issuance or
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delivery of such shares, including, without limitation, by the withholding of
shares that would otherwise be so issued or delivered, by withholding from any
other payment due to the Participant, or by a cash payment to the Company by the
Participant.
IN WITNESS WHEREOF, this Amended Plan has been executed effective as of
December 17, 2004.
GLOBAL LINKS CORP.
By /s/ Frank J. Dobrucki
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Frank J. Dobrucki, President
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