SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
TRANSPORTATION LOGISTICS INT'L, INC.
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(Exact name of Registrant as specified in Charter)
Colorado 84-1191355
- -----------------------------------------------------------------------
(State of Incorporation) (I.R.S. Employer I.D. Number)
136 Freeway Drive, East Orange, NJ 07018
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(Address of Principal Executive Offices)
2002 STOCK AND STOCK OPTION PLAN
--------------------------------
(Full Title of Plan)
MICHAEL MARGOLIES
Transportation Logistics Int'l, Inc.
136 Freeway Drive
East Orange, NJ 07018
(973) 266-7020
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(Name, Address and Telephone Number of Agent for Service)
Copy to:
ROBERT BRANTL, ESQ.
322 Fourth Street
Brooklyn, NY 11215
(718) 768-6045
CALCULATION OF REGISTRATION FEE
Proposed Proposed
Title of Maximum Maximum
Securities Amount Offering Aggregate Amount of
to be to be Price per Offering Registration
Registered Registered(1) Share (2) Price (2) Fee
- ------------------------------------------------------------------------------
Common Stock, 3,000,000 shares $.075 $225,000 $20.70
no par value
(1) This Registration Statement also covers an indeterminable number of
additional shares that may be issued as a result of an adjustment in the
shares in the event of a stock split, stock dividend or similar capital
adjustment, as required by the Plan.
(2) The price stated is estimated solely for purposes of calculation of the
registration fee and is the product resulting from multiplying 3,000,000
shares by $.075, the closing price of shares of the Common Stock on the
OTC Bulletin Board on January 22, 2002.
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3. Incorporation of Documents by Reference.
Transportation Logistics Int'l, Inc. is incorporating by reference the
following documents previously filed with the Securities and Exchange
Commission:
(1) Transportation Logistics' Annual Report on Form 10-KSB for the fiscal
year ended December 31, 2000;
(2) Transportation Logistics' Quarterly Report on Form 10-QSB for the
quarter ended March 31, 2001;
(3) Transportation Logistics' Quarterly Report on Form 10-QSB for the
quarter ended June 30, 2001;
(4) Transportation Logistics' Quarterly Report on Form 10-QSB for the
quarter ended September 30, 2001;
(5) Transportation Logistics' Current Report on Form 8-K dated March 28,
2001;
(6) the description of Transportation Logistics Common Stock contained in
its Registration Statement on Form 10-SB.
Transportation Logistics is also incorporating by reference all documents
hereafter filed by Transportation Logistics pursuant to Sections 13(a), 13(c),
14 and 15(d) of the Securities Exchange Act of 1934, prior to the filing of a
post-effective amendment which indicates that all securities offered have been
sold or which deregisters all securities then remaining unsold.
Item 4. Description of Securities.
Not Applicable.
Item 5. Interests of Named Experts and Counsel.
Robert Brantl, Esq., counsel to Transportation Logistics, has passed upon
the validity of the shares registered pursuant to this Registration Statement.
Mr. Brantl holds no interest in the securities of Transportation Logistics.
Item 6. Indemnification of Directors and Officers.
Section 7-109 of the Colorado Business Corporation Act authorizes a
corporation to provide indemnification to a director or officer of the
corporation against liability and expenses actually and reasonably incurred
by him in connection with a proceeding, if such party conducted himself in good
faith and in a manner he reasonably believed to be in or not opposed to the
best interests of the corporation, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe his conduct was unlawful, except
that with respect to any action which results in a judgment against the person
and in favor of the corporation or a judgment on the basis that the person
derived and improper personal benefit, the corporation may not indemnify unless
a court determines that the person is fairly and reasonably entitled to the
indemnification. Section 7-109 further provides that indemnification shall be
provided if the party in question is successful on the merits.
Article VI of the Bylaws of Transportation Logistics Int'l, Inc. provides
that Transportation Logistics shall indemnify directors and officers to the
extent authorized by the Colorado Business Corporation Act.
Item 7. Exemption from Registration Claimed.
Not applicable.
Item 8. Exhibits.
4.1 2002 Stock and Stock Option Plan
5 Opinion of Robert Brantl, Esq.
23.1 Consent of Rosenberg Rich Baker Berman & Co., C.P.A., P.A.
23.2 Consent of Schuhalter, Coughlin & Suozzo, LLC, independent public
accountants
23.3 Consent of Robert Brantl, Esq. is contained in his opinion, filed as
Exhibit 5.
Item 9. Undertakings.
Transportation Logistics hereby undertakes:
(1) To file, during any period in which offers or sales are being made,
a post-effective amendment to this Registration Statement to include any
material information with respect to the plan of distribution not previously
disclosed in the Registration Statement or any material change to such
information in the Registration Statement;
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed to
be a new registration statement relating to the securities offered therein,
and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof;
(3) To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the termination
of the offering;
(4) That, for purposes of determining any liability under the Securities
Act of 1933, each filing of the annual report pursuant to Section 13(a) or
15(d) of the Securities Exchange Act of 1934 (and, where applicable, each
filing of an employee benefit plan's annual report pursuant to Section 15(d)
of the Securities Exchange Act of 1934) that is incorporated by reference in
this Registration Statement shall be deemed to be a new registration statement
relating to the securities offered herein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
Insofar as indemnification for liabilities arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling persons of
Transportation Logistics pursuant to the provisions of the Colorado Business
Corporation Act or otherwise, Transportation Logistics has been advised that
in the opinion of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such
liabilities (other than the payment by Transportation Logistics of expenses
incurred or paid by a director, officer or controlling person of Transportation
Logistics in the successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in connection with
the securities being registered, Transportation Logistics will, unless in the
opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, Transportation
Logistics Int'l, Inc. certifies that it has reasonable grounds to believe that
it meets all of the requirements for filing on Form S-8 and has duly caused
this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of East Orange and the State of New
Jersey on the 22nd day of January, 2002.
TRANSPORTATION LOGISTICS INT'L, INC.
By:/s/Michael Margolies
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Michael Margolies
Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed below by the following persons in the
capacities indicated on January 22, 2002.
Name Title
/s/Michael Margolies Chairman (Chief Executive Officer, Chief
- -------------------- Financial Officer)
Michael Margolies
- -------------------- Director
Jim Thorpe
/s/Stanley Chason Director
- --------------------
Stanley Chason
INDEX TO EXHIBITS
4.1 2002 Stock and Stock Option Plan
5 Opinion of Robert Brantl, Esq.
23.1 Consent of Rosenberg Rich Baker Berman & Co., C.P.A., P.A.
23.2 Consent of Schuhalter, Coughlin & Suozzo, LLC, independent public
accountants
23.3 Consent of Robert Brantl, Esq. is contained in his opinion, filed
as Exhibit 5.
* * * * *
EXHIBIT 4.1
TRANSPORTATION LOGISTICS INT'L, INC.
2002 Stock and Stock Option Plan
Article 1. Establishment and Purpose
1.1 Establishment of the Plan. Transportation Logistics Int'l, Inc., a
Colorado corporation (the "Company" or "TLI"), hereby establishes an incentive
compensation plan (the "Plan"), as set forth in this document.
1.2 Purpose of the Plan. The purpose of the Plan is to promote the
success and enhance the value of the Company by linking the personal interests
of Participants to those of the Company's shareholders, and by providing
Participants with an incentive for outstanding performance. The Plan is
further intended to attract and retain the services of Participants upon whose
judgment, interest, and special efforts the successful operation of TLI and its
subsidiaries is dependent.
1.3 Effective Date of the Plan. The Plan shall become effective on
January 14, 2002.
Article 2. Definitions
Whenever used in the Plan, the following terms shall have the meanings
set forth below and, when the meaning is intended, the initial letter of the
word is capitalized:
(a) "Award" means, individually or collectively, a grant under this Plan
of Nonqualified Stock Options, Incentive Stock Options, Stock, Restricted
Stock, or Performance Shares.
(b) "Award Agreement" means an agreement which may be entered into by
each Participant and the Company, setting forth the terms and provisions
applicable to Awards granted to Participants under this Plan.
(c) "Board" or "Board of Directors" means the TLI Board of Directors.
(d) "Cause" shall mean willful and gross misconduct on the part of an
Eligible Person that is materially and demonstrably detrimental to the Company
or any Subsidiary as determined by the Committee in its sole discretion.
(e) "Change in Control" shall be deemed to have occurred if (i) any
"person" (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act), other than (A) a person who on January 14, 2002 was the beneficial
owner of more than 25% of the outstanding Shares, (B) a trustee or other
fiduciary holding securities under an employee benefit plan of the Company or
(C) a corporation owned directly or indirectly by the shareholders of the
Company in substantially the same proportions as their ownership of stock of
the Company, is or becomes the "beneficial owner" (as defined in Rule 13d-3
under said Act), directly or indirectly, of securities of the Company
representing forty percent (40%) or more of the total voting power represented
by the Company's then outstanding voting securities, or (ii) during any period
of two (2) consecutive years, individuals who at the beginning of such period
constitute the Board of Directors of the Company and any new Director whose
election by the Board of Directors or nomination for election by the Company's
shareholders was approved by a vote of at least two-thirds (2/3) of the
Directors then still in office who either were Directors at the beginning of
the period or whose election or nomination for election was previously so
approved, cease for any reason to constitute a majority thereof, or (iii) the
shareholders of the Company approve a merger or consolidation of the Company
with any other corporation, other than a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) at least fifty-five
percent (55%) of the total voting power represented by the voting securities
of the Company or such surviving entity outstanding immediately after such
merger or consolidation, or the shareholders of the Company approve a plan of
complete liquidation of the Company or an agreement for the sale or disposition
by the Company of all or substantially all the Company's assets.
(f) "Code" means the Internal Revenue Code of 1986, as amended from time
to time.
(g) "Committee" means the committee or committees, as specified in
Article 3, appointed by the Board to administer the Plan with respect to grants
of Awards.
(h) "Consultant" means a natural person under contract with the Company
to provide bona fide services to the Company which 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.
(i) "Director" means any individual who is a member of the TLI Board of
Directors.
(j) "Disability" shall mean the Participant's inability to perform the
Participant's normal Employment functions due to any medically determinable
physical or mental disability, which can last or has lasted 12 months or is
expected to result in death.
(k) "Eligible Person" means an Employee, Director or Consultant.
(l) "Employee" means any officer or employee of the Company or of one of
the Company's Subsidiaries. Directors who are not otherwise employed by the
Company shall not be considered Employees under this Plan.
(m) "Employment," with reference to an Employee, means the condition of
being an officer or employee of the Company or one of its Subsidiaries.
"Employment," with reference to a Consultant, means the condition of being a
Consultant. "Employment," with reference to a Director, means the condition
of being a Director. The change in status of an Eligible Person among the
categories of Employee, Director and Consultant shall not be deemed a
termination of Employment.
(n) "Exchange Act" means the Securities Exchange Act of 1934, as amended
from time to time, or any successor Act thereto.
(o) "Exercise Price" means the price at which a Share may be purchased
by a Participant pursuant to an Option, as determined by the Committee.
(p) "Fair Market Value" shall mean (i) at such time as there are closing
prices quoted for the Shares, the closing price of Shares on the relevant date,
or (if there were no sales on such date) the next preceding trading date, all
as reported on the principal market for the Shares, or (ii) at such time as
there is a public market quoted without closing prices, the mean of the closing
high bid and low asked on the relevant date, as reported on the principal
market for the Shares, or (iii) at such time as there is no public market for
the Shares, the value determined from time to time by the Board of Directors.
(q) "Incentive Stock Option" or "ISO" means an option to purchase Shares
from TLI, granted under this Plan, which is designated as an Incentive Stock
Option and is intended to meet the requirements of Section 422 of the Code.
(r) "Insider" shall mean an Eligible Person who is, on the relevant
date, an officer, director, or ten percent (10%) beneficial owner of the
Company, as those terms are defined under Section 16 of the Exchange Act.
(s) "Nonqualified Stock Option" or "NQSO" means the option to purchase
Shares from TLI, granted under this Plan, which is not intended to be an
Incentive Stock Option.
(t) "Option" or "Stock Option" shall mean an Incentive Stock Option or a
Nonqualified Stock Option.
(u) "Participant" means a person who holds an outstanding Award granted
under the Plan.
(v) "Performance Share" shall mean an Award granted to an Eligible Person
pursuant to Article 9 herein.
(w) "Plan" means this 2002 Stock and Stock Option Plan.
(x) "Restricted Stock" means an Award of Stock granted to an Eligible
Person pursuant to Article 8 herein.
(y) "Restriction Period" means the period during which Shares of
Restricted Stock are subject to restrictions or conditions under Article 8.
(z) "Shares" or "Stock" means the shares of common stock of the Company.
(aa) "Subsidiary" shall mean any corporation in which the Company owns
directly, or indirectly through subsidiaries, more than fifty percent (50%) of
the total combined voting power of all classes of Stock, or any other entity
(including, but not limited to, partnerships and joint ventures) in which the
Company owns more than fifty percent (50%) of the combined equity thereof.
Article 3. Administration
3.1 The Committee. The Plan and all Awards hereunder shall be
administered by one or more Committees of the Board as may be appointed by the
Board for this purpose. The Board may appoint a Committee specifically
responsible for Awards to Insiders (the "Disinterested Committee") where each
Director on such Disinterested Committee is a "Non-Employee Director" (or any
successor designation for determining who may administer plans, transactions
or awards exempt under Section 16(b) of the Exchange Act), as that term is
used in Rule 16b-3 under the Exchange Act, as that rule may be modified from
time to time. If no specific Committee is appointed by the Board, then the
Board in its entirety shall be the Committee. Any Committee may be replaced
by the Board at any time.
3.2 Authority of the Committee. The Committee shall have full power,
except as limited by law and subject to the provisions herein, to select the
recipients of Awards; to determine the size and types of Awards; to determine
the terms and conditions of such Awards in a manner consistent with the Plan;
to construe and interpret the Plan and any agreement or instrument entered
into under the Plan; to establish, amend, or waive rules and regulations for
the Plan's administration; and (subject to the provisions of Article 10 herein)
to amend the terms and conditions of any outstanding Award to the extent such
terms and conditions are within the discretion of the Committee as provided
in the Plan. Further, the Committee shall make all other determinations which
may be necessary or advisable for the administration of the Plan.
The Committee shall determine which Awards are made pursuant to Rule 701
under the Securities Act of 1933, as amended.
No Award may be made under the Plan after December 31, 2011.
All determinations and decisions made by the Committee pursuant to the
provisions of the Plan and all related orders or resolutions of the Board
shall be final, conclusive, and binding on all persons, including the Company,
its stockholders, Eligible Persons, Participants, and their estates and
beneficiaries.
Subject to the terms of this Plan, the Committee is authorized, and shall
not be limited in its discretion, to use any of the Performance Criteria
specified herein in its determination of Awards under this Plan.
Article 4. Shares Subject to the Plan
4.1 Number of Shares. Subject to adjustment as provided in Section 4.3
herein, the number of Shares available for grant under the Plan shall not
exceed three million (3,000,000) Shares. The Shares granted under this Plan
may be either authorized but unissued or reacquired Shares.
Without limiting the discretion of the Committee under this section,
unless otherwise provided by the Committee, the following rules will apply for
purposes of the determination of the number of Shares available for grant under
the Plan or compliance with the foregoing limits:
(a) The grant of a Stock Option or a Restricted Stock Award shall reduce
the Shares available for grant under the Plan by the number of Shares subject
to such Award. However, to the extent the Participant uses previously owned
Shares to pay the Exercise Price or any taxes, or Shares are withheld to pay
taxes, these Shares shall be available for regrant under the Plan.
(b) With respect to Performance Shares, the number of Performance Shares
granted under the Plan shall be deducted from the number of Shares available
for grant under the Plan. The number of Performance Shares which cannot be,
or are not, converted into Shares and distributed to the Participant (after
any applicable tax withholding) following the end of the Performance Period
shall increase the number of Shares available for regrant under the Plan by
an equal amount.
4.2 Lapsed Awards. If any Award granted under this Plan is canceled,
terminates, expires, or lapses for any reason, Shares subject to such Award
shall be again available for the grant of an Award under the Plan.
4.3 Adjustments in Authorized Plan Shares. In the event of any merger,
reorganization, consolidation, recapitalization, separation, liquidation,
Stock dividend, split-up, Share combination, or other change in the corporate
structure of the Company affecting the Shares, an adjustment shall be made in
the number and class of Shares which may be delivered under the Plan, and in
the number and class of and/or price of Shares subject to outstanding Awards
granted under the Plan, and/or the number of outstanding Options, Shares of
Restricted Stock, and Performance Shares constituting outstanding Awards, as
may be determined to be appropriate and equitable by the Committee, in its sole
discretion, to prevent dilution or enlargement of rights.
Article 5. Eligibility and Participation
5.1 Eligibility. All Eligible Persons are eligible to participate in
this Plan.
5.2 Actual Participation. Subject to the provisions of the Plan, the
Committee may, from time to time, select from all Eligible Persons, those to
whom Awards shall be granted and shall determine the nature and amount of each
Award. No Eligible Person is entitled to receive an Award unless selected by
the Committee.
Article 6. Stock Options
6.1 Grant of Options. Subject to the terms and provisions of the Plan,
Options may be granted to Eligible Persons at any time and from time to time,
and under such terms and conditions, as shall be determined by the Committee.
The Committee shall have discretion in determining the number of Shares subject
to Options granted to each Eligible Person. The Committee may grant ISOs,
NQSOs, or a combination thereof. ISOs, however, may be granted only to
Employees and only if this Plan is approved by the shareholders of the Company
within one year after it is adopted by the Board of Directors.
6.2 Form of Issuance. Each Option grant may be issued in the form of an
Award Agreement and/or may be recorded on the books and records of the Company
for the account of the Participant. If an Option is not issued in the form of
an Award Agreement, then the Option shall be deemed granted as determined by
the Committee. The terms and conditions of an Option shall be set forth in
the Award Agreement, in the notice of the issuance of the grant, or in such
other documents as the Committee shall determine. Such terms and conditions
shall include the Exercise Price, the duration of the Option, the number of
Shares to which an Option pertains (unless otherwise provided by the Committee,
each Option may be exercised to purchase one Share), and such other provisions
as the Committee shall determine, including, but not limited to whether the
Option is intended to be an ISO or a NQSO.
6.3 Exercise Price.
(a) Unless a greater Exercise Price is determined by the Committee, the
Exercise Price for each ISO awarded under this Plan shall be equal to one
hundred percent (100%) of the Fair Market Value of a Share on the date the
Option is granted. If, however, the Eligible Person owns stock possessing
more than ten percent (10%) of the total combined voting power of all classes
of stock of the Company or of its parent or subsidiary corporations, then the
Exercise Price of an ISO shall be not less than one hundred ten percent (110%)
of the Fair Market Value of a Share on the date the Option is granted.
(b) The Exercise Price of a NQSO shall be determined by the Committee in
its sole discretion.
6.4 Duration of Options. Each Option shall expire at such time as the
Committee shall determine at the time of grant (which duration may be extended
by the Committee); provided, however, that no Option shall be exercisable later
than the tenth (10th) anniversary date of its grant. If, however, the
Eligible Person owns stock possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Company or of its parent
or subsidiary corporations, then no Option shall be exercisable later than the
fifth (5th) anniversary date of its grant.
6.5 Vesting of Options. Options shall vest at such times and under such
terms and conditions as determined by the Committee; provided, however, unless
a different vesting period is provided by the Committee at or before the grant
of an Option, the Options will vest on the first anniversary of the grant.
6.6 Exercise of Options. Options granted under the Plan shall be
exercisable at such times and be subject to such restrictions and conditions
as the Committee shall in each instance approve, which need not be the same
for each grant or for each Participant.
Options shall be exercised by delivery of a written notice (including
e-mail and telecopies) to the Secretary of the Company (or, if so provided by
the Company, to its designated agent), which notice shall be irrevocable,
setting forth the exact number of Shares with respect to which the Option is
being exercised and including with such notice payment of the Exercise Price.
When Options have been transferred, the Company or its designated agent may
require appropriate documentation that the person or persons exercising the
Option, if other than the Participant, has the right to exercise the Option.
No Option may be exercised with respect to a fraction of a Share.
6.7 Payment. The Exercise Price shall be paid in full at the time of
exercise. No Shares shall be issued or transferred until full payment has
been received therefor.
Payment may be made:
(a) in cash, or
(b) unless otherwise provided by the Committee at any time, and subject
to such additional terms and conditions and/or modifications as the Committee
or the Company may impose from time to time, and further subject to suspension
or termination of this provision by the Committee or Company at any time, by:
(i) delivery of Shares of Stock owned by the Participant in partial
(if in partial payment, then together with cash) or full payment (if a
fractional Share remains after payment of the Exercise Price in full by
previously owned Shares, then the fractional Share shall be withheld for
taxes); provided, however, as a condition to paying any part of the Exercise
Price in Stock, at the time of exercise of the Option, the Participant must
establish to the satisfaction of the Company that the Stock tendered to the
Company has been held by the Participant for a minimum of six (6) months
preceding the tender; or
(ii) if the Company has designated a stockbroker to act as the
Company's agent to process Option exercises, issuance of an exercise notice
together with instructions to such stockbroker irrevocably instructing the
stockbroker: (A) to immediately sell a sufficient portion of the Shares to
pay the Exercise Price of the Options being exercised and the required tax
withholding, and (B) to deliver on the settlement date the portion of the
proceeds of the sale equal to the Exercise Price and tax withholding to the
Company. In the event the stockbroker sells any Shares on behalf of a
Participant, the stockbroker shall be acting solely as the agent of the
Participant, and the Company disclaims any responsibility for the actions
of the stockbroker in making any such sales. No Stock shall be issued until
the settlement date and until the proceeds (equal to the Option Price and
tax withholding) are paid to the Company.
If payment is made by the delivery of Shares of Stock, the value of the
Shares delivered shall be equal to the Fair Market Value of the Shares on the
day preceding the date of exercise of the Option.
6.8 Termination of Employment. Unless otherwise provided by the
Committee, the following limitations on exercise of Options shall apply upon
termination of Employment:
(a) Termination by Death or Disability. In the event the Employment of
a Participant shall terminate by reason of death or Disability, all
outstanding Options granted to that Participant shall immediately vest as of
the date of termination of Employment and may be exercised, if at all, no more
than three (3) years from the date of the termination of Employment, unless
the Options, by their terms, expire earlier.
(b) Termination for Cause. If the Employment of a Participant shall be
terminated by the Company for Cause, all outstanding Options held by the
Participant shall immediately be forfeited to the Company and no additional
exercise period shall be allowed, regardless of the vested status of the
Options.
(c) Retirement or Other Termination of Employment. If the Employment
of a Participant shall terminate for any reason other than the reasons set
forth in (a) or (b) above, all outstanding Options which are vested as of the
effective date of termination of Employment may be exercised, if at all, no
more than thirty (30) days from the date of termination of Employment, unless
the Options, by their terms, expire earlier. In the event of the death of the
Participant after termination of Employment, this paragraph (c) shall still
apply and not paragraph (a), above.
(d) Options not Vested at Termination. Except as provided in paragraph
(a) above, all Options held by the Participant which are not vested on or
before the effective date of termination of Employment shall immediately be
forfeited to the Company (and shall once again become available for grant
under the Plan).
(e) Notwithstanding the foregoing, the Committee may, in its sole
discretion, establish different terms and conditions pertaining to the effect
of termination of Employment, but no such modification shall shorten the terms
of Options issued prior to such modification.
6.9 Restrictions on Exercise and Transfer of Options. Unless otherwise
provided by the Committee:
(a) During the Participant's lifetime, the Participant's Options shall
be exercisable only by the Participant or by the Participant's guardian or
legal representative. After the death of the Participant, an Option shall
only be exercised by the holder thereof (including, but not limited to, an
executor or administrator of a decedent's estate) or his guardian or legal
representative.
(b) No Option shall be transferable except: (i) in the case of the
Participant, only upon the Participant's death; and (ii) in the case of any
holder after the Participant's death, only by will or by the laws of descent
and distribution.
6.10 Competition. Notwithstanding anything in this Article 6 to the
contrary, in the event the Committee determines, in its sole discretion, that
a Participant is engaging in activity competitive with the Company, any
Subsidiary, or any business in which any of the foregoing have a substantial
interest (the "TLI Businesses"), the Committee may cancel any Option granted
to such Participant, whether or not vested, in whole or in part. Such
cancellation shall be effective as of the date specified by the Committee.
Competitive activity shall mean any business or activity if a substantially
similar business activity is being carried on by a TLI Business, including,
but not limited to, representing or providing consulting services to any
person or entity that is engaged in competition with a TLI Business or that
takes a position adverse to a TLI Business. However, competitive activity
shall not include, among other things, owning a nonsubstantial interest as a
shareholder in a competing business.
Article 7. Stock Grant
7.1 Grant of Stock. Subject to the terms and provisions of the Plan,
the Board of Directors, at any time and from time to time, may grant Shares
of Stock to Eligible Persons in such amounts and upon such terms and condition
as the Board of Directors shall determine.
Article 8. Restricted Stock
8.1 Grant of Restricted Stock. Subject to the terms and provisions of
the Plan, the Committee, at any time and from time to time, may grant Shares
of Restricted Stock to Eligible Persons in such amounts and upon such terms
and conditions as the Committee shall determine. In addition to any other
terms and conditions imposed by the Committee, vesting of Restricted Stock may
be conditioned upon the attainment of Performance Goals based on Performance
Criteria in the same manner as provided in Section 9.3, herein with respect
to Performance Shares.
8.2 Restricted Stock Agreement. The Committee may require, as a
condition to an Award, that a recipient of a Restricted Stock Award enter
into a Restricted Stock Award Agreement, setting forth the terms and conditions
of the Award. In lieu of a Restricted Stock Award Agreement, the Committee
may provide the terms and conditions of an Award in a notice to the Participant
of the Award, on the Stock certificate representing the Restricted Stock, in
the resolution approving the Award, or in such other manner as it deems
appropriate.
8.3 Transferability. Except as otherwise provided in this Article 8,
the Shares of Restricted Stock granted herein may not be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated until the end of
the applicable Restriction Period established by the Committee, if any.
8.4 Other Restrictions. The Committee may impose such other conditions
and/or restrictions on any Shares of Restricted Stock granted pursuant to the
Plan as it may deem advisable including, without limitation, a requirement
that Participants pay a stipulated purchase price for each Share of Restricted
Stock and/or restrictions under applicable Federal or state securities laws;
and may legend the certificates representing Restricted Stock to give
appropriate notice of such restrictions.
The Company shall also have the right to retain the certificates
representing Shares of Restricted Stock in the Company's possession until such
time as all conditions and/or restrictions applicable to such Shares have been
satisfied.
8.5 Removal of Restrictions. Except as otherwise provided in this
Article 8, Shares of Restricted Stock covered by each Restricted Stock grant
made under the Plan shall become freely transferable by the Participant after
the last day of the Restriction Period and completion of all conditions to
vesting, if any. However, unless otherwise provided by the Committee, the
Committee, in its sole discretion, shall have the right to immediately waive
all or part of the restrictions and conditions with regard to all or part of
the Shares held by any Participant at any time.
8.6 Voting Rights, Dividends and Other Distributions. During the
Restriction Period, Participants holding Shares of Restricted Stock granted
hereunder may exercise full voting rights and shall receive all regular cash
dividends paid with respect to such Shares. Except as provided in the
following sentence, in the sole discretion of the Committee, other cash
dividends and other distributions paid to Participants with respect to Shares
of Restricted Stock may be subject to the same restrictions and conditions as
the Shares of Restricted Stock with respect to which they were paid. If any
such dividends or distributions are paid in Shares, the Shares shall be subject
to the same restrictions and conditions as the Shares of Restricted Stock with
respect to which they were paid.
8.7 Termination of Employment Due to Death or Disability. In the event
the Employment of a Participant shall terminate by reason of death or
Disability, unless otherwise provided by the Committee prior to or at the time
of the Award, all Restriction Periods and all restrictions imposed on
outstanding Shares of Restricted Stock held by the Participant shall
immediately lapse and the Restricted Stock shall immediately become fully
vested as of the date of termination of Employment.
8.8 Termination of Employment for Other Reasons. If the Employment of
a Participant shall terminate for any reason other than those specifically
set forth in Section 8.7 herein, all Shares of Restricted Stock held by the
Participant which are not vested as of the effective date of termination of
Employment immediately shall be forfeited and returned to the Company.
Article 9. Performance Shares
9.1 Grants of Performance Shares. A Performance Share is equivalent
in value to a Share of Stock. Subject to the terms of the Plan, Performance
Shares may be granted to Eligible Persons at any time and from time to time,
as determined by the Committee. The Committee shall have complete discretion
in determining the number of Performance Shares awarded to each Participant.
9.2 Performance Period. The Performance Period for Performance Shares
is the period over which the Performance Goals are measured. The Performance
Period is set by the Committee for each Award; however, in no event shall an
Award have a Performance Period of less than six months.
9.3 Performance Goals. For each Award of Performance Shares, the
Committee shall establish performance objectives ("Performance Goals") for the
Company, its Subsidiaries, and/or divisions of any of foregoing, based on the
Performance Criteria and other factors set forth below. Performance Goals
shall include payout tables, formulas or other standards to be used in
determining the extent to which the Performance Goals are met, and, if met,
the number of Performance Shares distributed to Participants in accordance
with Section 9.5. All Performance Shares which may not be converted under
the Performance Goals or which are reduced by the Committee under Section 9.5
or which may not be converted for any other reason after the end of the
Performance Period shall be canceled at the time they would otherwise be
distributable. When the Committee desires an Award to qualify under Section
162(m) of the Code, as amended, the Committee shall establish the Performance
Goals for the respective Performance Shares prior to or within 90 days of the
beginning of the service relating to such Performance Goal, and not later than
after 25% of such period of service has elapsed. For all other Awards, the
Performance Goals must be established before the end of the respective
Performance Period.
(a) The Performance Criteria which the Committee is authorized to use,
in its sole discretion, are any of the following criteria or any combination
thereof:
(1) Financial performance of the Company (on a consolidated basis),
of one or more of its Subsidiaries, and/or a division of any of
the foregoing. Such financial performance may be based on net
income and/or Value Added (after-tax cash operating profit less
depreciation and less a capital charge).
(2) Service performance of the Company (on a consolidated basis), of
one or more of its Subsidiaries, and/or of a division of any of
the foregoing. Such service performance may be based upon
measured customer perceptions of service quality.
(3) The Company's Stock price; return on shareholders' equity; total
shareholder return (Stock price appreciation plus dividends,
assuming the reinvestment of dividends); and/or earnings per
share.
(4) With respect to the Company (on a consolidated basis), to one or
more of its Subsidiaries, and/or to a division of any of the
foregoing: sales, costs, market share of a product or service,
return on net assets, return on assets, return on capital, profit
margin, and/or operating revenues, expenses or earnings.
(5) Completion of a marketing or development project as defined in
the Award Agreement.
(b) Except to the extent otherwise provided by the Committee in full or
in part, if any of the following events occur during a Performance Period and
would directly affect the determination of whether or the extent to which
Performance Goals are met, they shall be disregarded in any such computation:
changes in accounting principles; extraordinary items; changes in tax laws
affecting net income and/or Value Added; natural disasters, including floods,
hurricanes, and earthquakes; and intentionally inflicted damage to property
which directly or indirectly damages the property of the Company or its
Subsidiaries. No such adjustment shall be made to the extent such adjustment
would cause the Performance Shares to fail to satisfy the performance-based
exemption of Section 162(m) of the Code.
9.4 Dividend Equivalents on Performance Shares. Unless reduced or
eliminated by the Committee, a cash payment in an amount equal to the dividend
payable on one Share will be made to each Participant for each Performance
Share which on the record date for the dividend had been awarded to the
Participant and not converted, distributed or canceled.
9.5 Form and Timing of Payment of Performance Shares. As soon as
practicable after the applicable Performance Period has ended and all other
conditions (other than Committee actions) to conversion and distribution of a
Performance Share Award have been satisfied (or, if applicable, at such other
time determined by the Committee at or before the establishment of the
Performance Goals for such Performance Period), the Committee shall determine
whether and the extent to which the Performance Goals were met for the
applicable Performance Shares. If Performance Goals have been met, then the
number of Performance Shares to be converted into Stock and distributed to the
Participants shall be determined in accordance with the Performance Goals for
such Awards, subject to any limits imposed by the Committee. Conversion of
Performance Shares shall occur as soon as reasonably administratively possible
following the determination of the number of Shares to which the Participant
is entitled. At any time prior to the distribution of the Performance Shares,
unless otherwise provided by the Committee, the Committee shall have the
authority to reduce or eliminate the number of Performance Shares to be
converted.
9.6 Termination of Employment Due to Death or Disability. Unless
otherwise provided by the Committee prior to or at the time of an Award, if
the Employment of a Participant shall terminate by reason of death or
Disability, the Participant shall receive a distribution of all outstanding
Performance Shares calculated as if all unfinished Performance Periods had
ended with 100% of the Performance Goals achieved, payable in the year
following the date of termination of Employment.
9.7 Termination of Employment for Other Reasons. If the Employment of
a Participant shall terminate for other than a reason set forth in Section
9.6 (and other than for Cause), the number of Performance Shares to be
converted and distributed shall be converted and distributed based upon the
achievement of the Performance Goals and in accordance with all other terms
of the Award and the Plan; however, the Participant may receive no more than
a prorated payout of all Performance Shares, based on the portions of the
respective Performance Periods that have been completed.
9.8 Termination of Employment for Cause. In the event that a
Participant's Employment shall be terminated by the Company for Cause, all
Performance Shares shall be forfeited by the Participant to the Company.
9.9 Nontransferability. Performance Shares may not be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by will
or laws of intestacy.
Article 10. Employee Matters
10.1 Employment Not Guaranteed. Nothing in the Plan shall interfere
with or limit in any way the right of the Company or any Subsidiary to
terminate any Participant's Employment at any time, nor confer upon any
Participant any right to continue in the employ of the Company or one of its
Subsidiaries.
10.2 Participation. No Eligible Person shall have the right to be
selected to receive an Award under this Plan, or, having been so selected, to
be selected to receive a future Award.
10.3 Claims and Appeals. Any claim under the Plan by a Participant or
anyone claiming through a Participant shall be presented to the Committee.
Any person whose claim under the Plan has been denied may, within sixty (60)
days after receipt of notice of denial, submit to the Committee a written
request for review of the decision denying the claim. The Committee shall
determine conclusively for all parties all questions arising in the
administration of the Plan.
Article 11. Amendment, Modification, and Termination
11.1 Amendment, Modification, and Termination. The Board of Directors
alone shall have the right to alter, amend or revoke the Plan or any part
thereof at any time and from time to time, provided, however, that the Board
of Directors may not, without the approval of the holders of a majority of
the voting Shares, make any alteration or amendment to the Plan which changes
the aggregate number of shares of Common Stock which may be issued under the
Plan, extend the term of the Plan, or change the employees or class of
employees eligible to receive Awards thereunder. The Board may at any time
suspend or terminate the Plan in whole or in part.
11.2 Awards Previously Granted. No termination, amendment, or
modification of the Plan shall adversely affect in any material way any Award
previously granted under the Plan, without the written consent of the
Participant holding such Award.
Article 12. Change in Control
Upon the occurrence of a Change in Control:
(a) Any and all Options granted hereunder immediately shall become
vested and exercisable;
(b) Any Restriction Periods and all restrictions imposed on Restricted
Shares shall lapse and they shall immediately become fully vested;
(c) The 100% Performance Goal for all Performance Shares relating to
incomplete Performance Periods shall be deemed to have been fully achieved
and shall be converted and distributed in accordance with all other terms of
the Award and this Plan; provided, however, notwithstanding anything to the
contrary in this Plan, no outstanding Performance Share may be reduced.
Article 13. Withholding
13.1 Tax Withholding. The Company shall deduct or withhold an amount
sufficient to satisfy Federal, state, and local taxes (including the
Participant's employment tax obligations) required by law to be withheld with
respect to any taxable event arising or as a result of this Plan ("Withholding
Taxes").
13.2 Share Withholding. With respect to withholding required upon the
exercise of Options, upon the lapse of restrictions on Restricted Stock, upon
the distribution of Performance Shares in the form of Stock, or upon any other
taxable event hereunder involving the transfer of Stock to a Participant, the
Company shall withhold Stock having a Fair Market Value on the date the tax is
to be determined in an amount equal to the Withholding Taxes on such Stock.
Any fractional Share remaining after the withholding shall be withheld as
additional Federal withholding.
Unless otherwise determined by the Committee, when the method of payment
for the Exercise Price is from the sale by a stockbroker, pursuant to Section
6.7(b)(ii), herein, of the Stock acquired through the Option exercise, then
the tax withholding shall be satisfied out of the proceeds. For administrative
purposes in determining the amount of taxes due, the sale price of such Stock
shall be deemed to be the Fair Market Value of the Stock.
Prior to the end of any Performance Period a Participant may elect to
have a greater amount of Stock withheld from the distribution of Performance
Shares to pay withholding taxes; provided, however, the Committee may prohibit
or limit any individual election or all such elections at any time.
13.3 Payment In Lieu of Share Withholding. In any situation in which the
Company would be required to withhold Stock pursuant to Sec. 13.2 above, the
Participant may, in lieu of all or part of such withholding, remit to the
Company an amount in cash sufficient to satisfy the federal, state and local
withholding tax requirements or may direct the Company to withhold from other
amounts payable to the Participant, including salary.
Article 14. Successors
All obligations of the Company under the Plan, with respect to Awards
granted hereunder, shall be binding on any successor to the Company, whether
the existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all of the
business and/or assets of the Company.
Article 15. Legal Construction
15.1 Severability. In the event any provision of the Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of the Plan, and the Plan shall be construed and
enforced as if the illegal or invalid provision had not been included.
15.2 Requirements of Law. The granting of Awards and the issuance of
Shares under the Plan shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or national
securities exchanges as may be required.
15.3 Securities Law Compliance. With respect to Insiders, transactions
under this Plan are intended to comply with all applicable conditions of Rule
16b-3 or its successors under the Exchange Act. To the extent any provision
of the plan or action by the Committee fails to comply with a condition of
Rule 16b-3 or its successors, it shall not apply to the Insiders or
transactions thereby.
15.4 Governing Law. To the extent not preempted by Federal law, the
Plan, and all agreements hereunder, shall be construed in accordance with and
governed by the laws of the State of Colorado.
* * * * *
EXHIBIT 5
ROBERT BRANTL, ESQ.
322 Fourth Street
Brooklyn, NY 11215
718-768-6045
January 22, 2002
Transportation Logistics Int'l, Inc.
136 Freeway Drive
East Orange, NJ 07018
Gentlemen:
With reference to the Registration Statement on Form S-8 which Transportation
Logistics Int'l, Inc. proposes to file with the Securities and Exchange
Commission registering 3,000,000 common shares which may be offered and sold
by Transportation Logistics Int'l, Inc. under the 2002 Stock and Stock Option
Plan (the "Shares"), I am of the opinion that all proper corporate proceedings
have been taken so that the Shares, upon sale and payment therefor in accordance
with the Plan, will be legally issued, fully paid, and nonassessable.
I hereby consent to the filing of this opinion with the Securities and Exchange
Commission in connection with the Registration Statement referred to above.
Yours,
/s/ Robert Brantl
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Robert Brantl
* * * * *
EXHIBIT 23.1
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
We consent to the use in this Registration Statement on Form S-8 of our
report dated April 23, 2001 with respect to the financial statements of
Transportation Logistics Int'l, Inc. and Subsidiaries for the year ended
December 31, 2000.
/s/ Rosenberg Rich Baker Berman & Co.
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Rosenberg Rich Baker Berman & Co.
Certified Public Accountants
Bridgewater, New Jersey
January 18, 2002
* * * * *
EXHIBIT 23.3
CONSENT OF INDEPENDENT AUDITOR
We hereby consent to the use in this Registration Statement on Form S-8 of
Transportation Logistics Int'l, Inc., a Colorado corporation, of our report
dated August 6, 2000 on the financial statements of Transportation Logistics
Int'l, Inc., a New York corporation, for the periods ending December 31, 1999.
Dated: January 18, 2002
/s/ Schuhalter, Coughlin & Suozzo, LLC
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Schuhalter, Coughlin & Suozzo, LLC