Document:

Exhibit

FEDERAL HOME LOAN BANK OF BOSTON ENDORSEMENT SPLIT-DOLLAR AGREEMENT

THIS AGREEMENT is adopted this 24th day of May, 2005, by and between FEDERAL HOME LOAN BANK OF BOSTON, a bank organized under the laws of the Commonwealth of Massachusetts with its main office in Boston, Massachusetts (the "Bank"), and M. SUSAN ELLIOTT (the "Executive").

INTRODUCTION

To encourage the Executive to remain an employee of the Bank, the Bank is willing to divide the death proceeds of a life insurance policy on the Executive's life. The Bank will pay life insurance premiums from its general assets.

AGREEMENT

The Bank and the Executive agree as follows:

ARTICLE 1 - GENERAL DEFINITIONS

The following terms shall have the meanings specified:

1.1.    "Insurer" means the insurance company identified in Exhibit A to this Agreement.

1.2.    "Policy" means the specific life insurance policy issued by the Insurer identified in Exhibit A to this Agreement.

ARTICLE 2 - POLICY OWNERSHIP/INTERESTS

2.1.    Bank Ownership. The Bank is the sole owner of the Policy and shall have the right, to the extent of its interest, to exercise all incidents of ownership. The Bank shall be the beneficiary of the remaining death proceeds of the Policy after the interest of the Executive has been paid according to Section 2.2 below.

2.2.    Executive's Interest. The Executive shall have the right to designate a beneficiary or beneficiaries to receive his share of the proceeds payable upon the death of the Executive as
provided in this Section 2.2.  In the event of the Executive's death while in the employ of the
Bank, the Executive's beneficiary shall be paid $1,085,000, in a lump sum, from the death proceeds of the Policy, but in no event more than the total death benefit payable from the Policy. No death benefit shall be paid to the Executive's beneficiary if the Executive's death occurs after the Executive's termination of employment with the Bank.

2.3    Comparable Coverage. Upon execution of this Agreement, the Bank shall maintain the Policy in full force and effect and in no event shall the Bank amend, terminate or otherwise abrogate the Executive's interest in the Policy, unless the Bank replaces the Policy with a comparable insurance policy to cover the benefit provided under this Agreement, and the

Bank and the Executive execute a new Split-Dollar Policy Endorsement for said comparable insurance policy. The Policy or any comparable policy shall be subject to the claims of the Bank's creditors.

ARTICLE 3 - PREMIUMS

3.1.    Premium Payment. The Bank shall pay any premiums due on the Policy.

3.2.    Taxable Benefit. The Executive understands that she will receive a taxable benefit relating to the insurance as required by the Internal Revenue Service. The Bank (or its administrator) will report to the Executive the amount of imputed income received each year on Form W-2 or its equivalent.  Such amount will be determined by multiplying the current one­ year term life insurance rate for the Executive's age by the aggregate death benefit payable to the Executive's beneficiary. The "current one-year term life insurance rate" is the minimum amount required to be imputed under IRS regulations or other applicable authority.

ARTICLE 4 - INSURER

The Insurer shall not be deemed a party to this Agreement, but will respect the rights of the parties as herein developed upon receiving an executed copy of this Agreement. Payment or other performance in accordance with the Policy provisions shall fully discharge the Insurer from any and all liability.

ARTICLE 5 - CLAIMS AND REVIEW PROCEDURES

Any claims for benefits under the Agreement shall follow the claims procedure set forth in Exhibit B hereto.

ARTICLE 6 - AMENDMENTS AND TERMINATION

This Agreement may be amended or terminated only by a written agreement signed by the Bank and the Executive.

ARTICLE 7 - MISCELLANEOUS

7.1.    Binding Effect. This Agreement shall bind the Executive and the Bank and their beneficiaries, survivors, executors, administrators and transferees, and any Policy beneficiary.

7.2.    No Guarantee of Employment. This Agreement is not an employment policy or contract. It does not give the Executive the right to remain an employee of the Bank, nor does it interfere with the Bank's right to discharge the Executive. It also does not require the Executive to remain an employee nor interfere with the Executive's right to terminate employment at any time.

7.3.    Applicable Law.  The Agreement and all rights hereunder shall be governed by and construed according to the laws of the Commonwealth of Massachusetts, except to the extent preempted by the laws of the United States of America.

7.4.    Notice.  Any notice, consent or demand required or permitted to be given under the provisions of this Agreement by one party to another shall be in writing, shall be signed by the party giving or making the same, and may be given either by delivering the same to such other party personally, or by mailing the same, by United States certified mail, postage prepaid, to such party, addressed to his last known address as shown on the records of the Bank. The date of such mailing shall be deemed the date of such mailed notice, consent or demand.

7.5.    Entire Agreement. This Agreement constitutes the entire agreement between the Bank and the Executive as to the subject matter hereof. No rights are granted to the Executive by virtue of this Agreement other than those specifically set forth herein.

7.6.    Administration. The Bank shall have powers which are necessary to administer this Agreement, including but not limited to:

		
	(a)
	Interpreting, for the Bank, the provisions of this Agreement;

		
	(b)
	Establishing and revising the method of accounting, on the Bank's books, for this Agreement;

		
	(c)
	Maintaining, for the Bank, a record of benefit payments; and

		
	(d)
	Establishing, for the Bank, rules and prescribing any forms necessary or desirable to administer this Agreement.

7.7.    Named Fiduciary. The Bank shall be the named fiduciary and plan administrator under this Agreement. The named fiduciary may delegate to others certain aspects of the management and operation responsibilities of this Agreement, including the employment of advisors and the delegation of ministerial duties to qualified individuals.

IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written.

	
			
	Attest:
	 
	Federal Home Loan Bank of

	 
	 
	Boston

	 
	 
	 

	 
	 
	By: /s/ Ellen McLaughlin

	Witness
	 
	Title: Sr. V.P. & General Counsel

	 
	 
	 

	 
	 
	 

	 
	 
	/s/ M. Susan Elliott 5-24-05

	Witness
	 
	M. Susan Elliott

	 
	 
	 

                    

EXHIBIT A - POLICY SUBJECT TO AGREEMENT

The following insurance policies and certificates shall be subject to the Endorsement Split-Dollar Agreement between the Federal Home Loan Bank of Boston and M. Susan Elliott dated May 24, 2005.

	
				
	 
	Policy No. 
	 
	Name of lnsurer

	 
	 
	 
	 

	 
	2008872
	 
	ING - Security Life of Denver

	 
	 
	 
	 

	 
	 
	 
	 

	 
	5/24/2005
	 
	/s/ M. Susan Elliott

	 
	Date
	 
	Signature

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

EXHIBIT B - CLAIMS PROCEDURE

1.    Any  controversy  or claim arising  out of or relating to this Agreement  shall be filed with the Named Fiduciary which shall make all determinations concerning such claim. Any decision by the Named Fiduciary denying such claim shall be in writing and shall be delivered to all parties in interest in accordance with the notice provisions of Section 7.4 hereof. Such decision shall set forth the reasons for denial in plain language. Pertinent provisions of the Agreement shall be cited. This notice of denial of benefits will be provided within 90 days of the Named Fiduciary's receipt of the claimant's claim for benefits.  If the Named Fiduciary fails to notify the claimant of its decision regarding his or her claim, the claim shall be considered denied, and the claimant shall then be permitted to proceed with his or her appeal as provided in this Section.

2.    A claimant who has been completely or partially denied a benefit shall be entitled to appeal this denial of his or her claim by filing a written statement of his or her position with the Named Fiduciary no later than sixty (60) days after receipt of the written notification of such claim denial. The Named Fiduciary shall schedule an opportunity for a full and fair review of the issue within thirty (30) days of receipt of the appeal.

3.    The decision on review shall set forth specific reasons for the decision, and shall cite specific references to the pertinent Agreement provisions on which the decision is based. Following its review of any additional information submitted by the claimant, either through the hearing process or otherwise, the Named Fiduciary shall render a decision on its review of the denied claim in the following manner:

4.    The Named Fiduciary shall make its decision regarding the merits of the denied claim within 60 days following its receipt of the request for review (or within 120 days after such receipt, in a case where there are special circumstances requiring extension of time for reviewing the appealed claim). The Named Fiduciary shall deliver the decision to the claimant in writing.  If an extension of time for reviewing the appealed claim is required because of special circumstances, written notice of the extension shall be furnished to the claimant prior to the commencement of the extension. If the decision on review is not furnished within the prescribed time, the claim shall be deemed denied on review.

BENEFICIARY DESIGNATION FORM
FOR THE ENDORSEMENT SPLIT-DOLLAR AGREEMENT

PRIMARY DESIGNATION:

	
				
	Name
	Address
	Relationship
	Percentage

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

SECONDARY (CONTINGENT) DESIGNATION:

	
				
	Name
	Address
	Relationship
	Percentage

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

All sums payable under the Endorsement Split-Dollar Agreement by reason of my death shall be paid to the Primary Beneficiary, if he or she survives me, and if no Primary Beneficiary shall survive me, then to the Secondary (Contingent) Beneficiary. If more than one surviving Primary or Secondary Beneficiary, each shall share in accordance with percentage indicated.

	
					
	 
	 
	 
	 
	 

	Name
	 
	 
	Datemed_Ex10_1

		

			Exhibit 10.1

		

		

			 

		

		
			MEDIFAST, INC.
		

		
			EXECUTIVE SEVERANCE PLAN
		

		
			 
		

		
			Medifast, Inc., a Delaware corporation (the “Company”), has adopted this Medifast, Inc. Executive Severance Plan (the “Plan”) to provide key employees of the Company and its affiliates and subsidiaries with severance protection under covered circumstances.
		

			
	
			
				Article I.
			 

		
			DEFINITIONS AND INTERPRETATIONS
		

			
	
			
				 Section 1.01
			Definitions. Capitalized terms used in this Plan shall have the following respective meanings, except as otherwise provided or as the context shall otherwise require:

		
			“Annual Base Salary” shall mean the base salary paid to a Participant on an annual basis exclusive of any bonus payments, commission payments or additional payments under any benefit plan of the Company.
		

		
			“Administrator” shall mean be the Compensation Committee.  
		

		
			“Board” shall mean the Board of Directors of the Company.
		

		
			“Cause” shall mean (a) indictment or conviction for, or a please of guilty or nolo contendere to, a felony or of a criminal act involving moral turpitude; (b) gross misconduct or willful and continued failure to substantially perform employment duties reasonably requested by the Company or an affiliate, after thirty (30) days’ written notice by certified mail of such conduct or failure, and the failure of the Participant to remedy such conduct or failure; (c) fraud,  embezzlement, or misappropriation of any amounts of money or other assets or property of the Company; (d) misconduct or negligence in connection with the business of the Company or an affiliate which has a substantial adverse effect on the Company or the affiliate; or (e) violation of any material policy of the Company, including the Company’s Code of Conduct and Business Ethics. Determination of Cause shall be made by the Compensation Committee in its sole discretion.  
		

		
			“Change in Control” shall have the meaning set forth in the Amended and Restated 2012 Share Incentive Plan or any successor to such plan.  
		

		
			“Change in Control Period” shall mean the 24 month period beginning on the date of a Change in Control. 
		

		
			“Code” shall mean the Internal Revenue Code of 1986, as amended. Reference in this Plan to any section of the Code shall be deemed to include any amendments or successor provisions to such section and any regulations under such section.
		

		
			“Compensation Committee” shall mean the Compensation Committee of the Company’s Board of Directors.
		

		
			“Effective Date” shall mean September 12, 2019.
		

		
			

		 

		

			1

		

		

			 

		

		

		
			“Good Reason” shall mean a Participant’s resignation of employment upon the occurrence (without the Participant’s prior written consent) of (a) a material reduction in the Participant’s Annual Base Salary or Target Bonus, (b) a material diminution in the Participant’s authority, duties or responsibilities, (c) a relocation of the Participant’s principal work location by more than 50 miles, or (d) any other action or inaction that constitutes a material breach by the Company of any written agreement under which the Participant provides services; provided, however, that, notwithstanding the foregoing, the Participant may not resign his or her employment for Good Reason unless (i) the Participant has provided the Company with at least thirty (30) days prior written notice of his or her intent to resign for Good Reason (which notice must be provided within ninety (90) days following the occurrence of the event(s) purported to constitute Good Reason); and (ii) the Company has not remedied the alleged violation(s) within the thirty (30) day period following its receipt of such notice.
		

		
			“Participants” shall mean those employees of the Company or any of its subsidiaries who are from time to time designated as Participants in accordance with Section 2.01.
		

		
			“Plan” shall mean this Medifast, Inc. Executive Severance Plan, as amended, supplemented or modified from time to time in accordance with its terms.
		

		
			“Qualifying Termination” shall mean a Participant’s Termination of Employment (a) by the Company and its subsidiaries without Cause or (b) by the Participant for Good Reason.
		

		
			“Target Bonus” shall mean the Participant’s target annual incentive bonus.
		

		
			“Termination Date” shall mean, with respect to any Participant, the actual date of the Participant’s Termination of Employment.
		

		
			“Termination of Employment” shall mean the time when the employee-employer relationship between the Participant and the Company or any subsidiary of the Company is terminated for any reason, with or without Cause, including, but not by way of limitation, a termination by resignation, discharge, death, permanent disability or retirement; provided, that such “Termination of Employment” constitutes a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h).
		

			
	
			
				 Section 1.02
			Interpretation.  In this Plan, unless a clear contrary intention appears, (a) the words “herein,” “hereof” and “hereunder” refer to this Plan as a whole and not to any particular Article, Section or other subdivision, (b) reference to any Article or Section, means such Article or Section hereof and (c) the words “including” (and with correlative meaning “include”) means including, without limiting the generality of any description preceding such term. The Article and Section headings herein are for convenience only and shall not affect the construction hereof.

		
			 
		

		
			

		 

		

			2

		

		

			 

		

		

			
	
			
				Article II.
			 

		
			ELIGIBILITY AND BENEFITS
		

			
	
			
				 Section 2.01
			Eligible Employees.  This Plan is only for the benefit of the following Participants, and no other employees, personnel, consultants or independent contractors shall be eligible to participate in this Plan or to receive any rights or benefits hereunder:

			
	
			
				 (a)
			

			
	
			
			Chief Executive Officer;

			
	
			
				 (b)
			

			
	
			
			Chief Financial Officer; and

			
	
			
				 (c)
			

			
	
			
			All other executive officers of the Company who are direct reports of the Chief Executive Officer and are at the Executive Vice President-level or above (“Other Executives”).

		
			 
		

			
	
			
				Article III.
			 

		
			SEVERANCE AND RELATED TERMINATION BENEFITS
		

			
	
			
				 Section 3.01
			Qualifying Termination. Except as set forth in Section 3.02, in the event that a Participant incurs a Qualifying Termination, then, subject to Section 3.03, such Participant shall be entitled to receive the severance benefits set forth on Exhibit A attached hereto.

			
	
			
				 Section 3.02
			Qualifying Termination Following Change in Control. In the event that, during the Change in Control Period, a Participant incurs a Qualifying Termination, then in lieu of the benefits payable pursuant to Section 3.01 and subject to Section 3.03, the Participant will be entitled to receive the severance benefits set forth on Exhibit B attached hereto. 

			
	
			
				 Section 3.03
			Conditions to Receipt of Severance Benefits.  A Participant’s receipt of any payment or benefits under this Article III shall be conditioned on and subject to such Participant’s execution and non-revocation of a general waiver and release of claims in favor of the Company, within the applicable time periods for execution following the Termination Date, as set forth in such agreements.

			
	
			
				 Section 3.04
			Other Terminations of Employment.  For the avoidance of doubt, in no event shall the Participant be entitled to any benefit under this Plan in the event that the Participant resigns without Good Reason or otherwise terminates employment due to death, permanent disability, or retirement, or is terminated by the Company for Cause.

			
	
			
				 Section 3.05
			No Duplication of Benefits.  Notwithstanding anything to the contrary in this Plan, in the event that a Participant is entitled to severance benefits under any other employment agreement, severance agreement or similar agreement between the Participant and the Company, no benefits shall be payable under this Plan.

		
			

		 

		

			3

		

		

			 

		

		

			
	
			
				 Section 3.06
			Plan Unfunded; Participant's Rights Unsecured. The Company shall not be required to establish any special or separate fund or make any other segregation of funds or assets to assure the payment of any benefit hereunder.  The right of any Participant to receive the benefits provided for herein shall be an unsecured claim against the general assets of the Company.

		
			 
		

			
	
			
				Article IV.
			 

		
			CLAIMS PROCEDURES
		

			
	
			
				 Section 4.01
			Initial Claims. A Participant who believes he or she is entitled to a payment under the Plan that has not been received may submit a written claim for benefits to the Plan within 60 days after the Participant's Qualifying Termination. Claims should be addressed and sent to:

		
			Medifast, Inc.
		

		
			Chair of the Compensation Committee
		

		
			100 International Drive
		

		
			Baltimore, MD 21202
		

		
			If the Participant's claim is denied, in whole or in part, the Participant will be furnished with written notice of the denial within 90 days after the Administrator's receipt of the Participant's written claim, unless special circumstances require an extension of time for processing the claim, in which case a period not to exceed 180 days will apply. If such an extension of time is required, written notice of the extension will be furnished to the Participant before the termination of the initial 90-day period and will describe the special circumstances requiring the extension, and the date on which a decision is expected to be rendered. Written notice of the denial of the Participant's claim will contain the following information:
		

			
	
			
				 (a)
			

			
	
			
			the specific reason or reasons for the denial of the Participant's claim;

			
	
			
				 (b)
			

			
	
			
			references to the specific Plan provisions on which the denial of the Participant's claim was based;

			
	
			
				 (c)
			

			
	
			
			a description of any additional information or material required by the Administrator to reconsider the Participant's claim (to the extent applicable) and an explanation of why such material or information is necessary; and

			
	
			
				 (d)
			

			
	
			
			a description of the Plan's review procedures and time limits applicable to such procedures, including a statement of the Participant's right to bring a civil action under Section 502(a) of ERISA following a benefit claim denial on review.

			
	
			
				 Section 4.02
			Appeal of Denied Claims. If the Participant's claim is denied and he or she wishes to submit a request for a review of the denied claim, the Participant or his or her authorized representative must follow the procedures described below:

		
			
		

		
			

		 

		

			4

		

		

			 

		

		

			
	
			
				 (a)
			

			
	
			
			Upon receipt of the denied claim, the Participant (or his or her authorized representative) may file a request for review of the claim in writing with the Administrator. This request for review must be filed no later than 60 days after the Participant has received written notification of the denial.

			
	
			
				 (b)
			

			
	
			
			The Participant has the right to submit in writing to the Administrator any comments, documents, records or other information relating to his or her claim for benefits.

			
	
			
				 (c)
			

			
	
			
			The Participant has the right to be provided with, upon request and free of charge, reasonable access to and copies of all pertinent documents, records and other information that is relevant to his or her claim for benefits.

			
	
			
				 (d)
			

			
	
			
			The review of the denied claim will take into account all comments, documents, records and other information that the Participant submitted relating to his or her claim, without regard to whether such information was submitted or considered in the initial denial of his or her claim.

			
	
			
				 Section 4.03
			Administrator's Response to Appeal. The Administrator will provide the Participant with written notice of its decision within 60 days after the Administrator's receipt of the Participant's written claim for review. There may be special circumstances which require an extension of this 60-day period. In any such case, the Administrator will notify the Participant in writing within the 60-day period and the final decision will be made no later than 120 days after the Administrator's receipt of the Participant's written claim for review. The Administrator's decision on the Participant's claim for review will be communicated to the Participant in writing and will clearly state:  

			
	
			
				 (a)
			

			
	
			
			the specific reason or reasons for the denial of the Participant's claim;

			
	
			
				 (b)
			

			
	
			
			reference to the specific Plan provisions on which the denial of the Participant's claim is based;

			
	
			
				 (c)
			

			
	
			
			a statement that the Participant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, the Plan and all documents, records, and other information relevant to his or her claim for benefits; and

			
	
			
				 (d)
			

			
	
			
			a statement describing the Participant's right to bring an action under Section 502(a) of ERISA.

			
	
			
				 Section 4.04
			Exhaustion of Administrative Remedies. The exhaustion of these claims procedures is mandatory for resolving every claim and dispute arising under the Plan. As to such claims and disputes: 

			
	
			
				 (a)
			

			
	
			
			no claimant shall be permitted to commence any legal action to recover benefits or to enforce or clarify rights under the Plan under Section 502 or Section 510 of ERISA or under any other provision of law, whether or not statutory, until these claims procedures have been exhausted in their entirety; and

		
			

		 

		

			5

		

		

			 

		

		

			
	
			
				 (b)
			

			
	
			
			in any such legal action, all explicit and implicit determinations by the Administrator (including, but not limited to, determinations as to whether the claim, or a request for a review of a denied claim, was timely filed) shall be afforded the maximum deference permitted by law.

			
	
			
				Article V.
			 

		
			MISCELLANEOUS PROVISIONS
		

			
	
			
				 Section 5.01
			No Mitigation. No Participant shall be required to mitigate the amount of any payment provided for in this Plan by seeking or accepting other employment following a termination of his or her employment with the Company or otherwise.  The amount of any cash payment provided for in this Plan shall not be reduced by any cash compensation earned by a Participant as the result of employment by another employer or by retirement benefits.

			
	
			
				 Section 5.02
			Amendment or Termination.  The Board may amend or terminate the Plan at any time; provided, however, that no such termination or amendment may materially and adversely affect any rights of any Participant who has incurred a Qualifying Termination prior to the date of such termination or amendment; and provided, further, that the Plan cannot be terminated or materially amended during the Change in Control Period.  Notwithstanding the foregoing, the Plan shall terminate when all of the obligations to Participants hereunder have been satisfied in full.

			
	
			
				 Section 5.03
			Enforceability.  The failure of a Participant or the Company or any of its subsidiaries to insist upon strict adherence to any term of the Plan on any occasion shall not be considered a waiver of such party's rights or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of the Plan.

			
	
			
				 Section 5.04
			Governing Law. This Plan shall be governed by and construed in accordance with the laws of the State of Maryland, without giving effect to its conflict of laws rules, and applicable federal law.

			
	
			
				 Section 5.05
			Tax Withholding. The Company shall have the right to deduct from any payment or benefit hereunder all federal, state and local taxes which are required to be withheld therefrom.

			
	
			
				 Section 5.06
			Plan Administration.  The Compensation Committee shall have full and final authority to make determinations with respect to the administration of this Plan, to construe and interpret its provisions and to take all other actions deemed necessary or advisable for the proper administration of this Plan, but such authority shall be subject to the provisions of this Plan.

			
	
			
				 Section 5.07
			Successors and Assigns.  This Plan shall be binding upon and inure to the benefit of the Company and its successors and assigns. This Plan and all rights of each Participant shall inure to the benefit of and be enforceable by each such Participant and his or her personal or legal representatives, executors, administrators, heirs and permitted assigns.  If any Participant should die while any amounts are due and payable to such Participant hereunder, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Plan to such Participant’s devisees, legatees or other designees or, if there be no such devisees, legatees or other 

		 

		

			6

		

		

			 

		

	designees, to such Participant’s estate.  No payments, benefits or rights arising under this Plan may be assigned or pledged by any Participant, except under the laws of descent and distribution.

			
	
			
				 Section 5.08
			Notices. All notices and other communications provided for in this Plan shall be in writing and shall be sent, delivered or mailed, addressed as follows: (a) if to the Company, at the Company’s principal office address or such other address as the Company may have designated by written notice to all Participants for purposes hereof, directed to the attention of the Chief Financial Officer of the Company (or such other officer as may be designated by the Company), and (b) if to any Participant, at his or her residence address on the records of the Company or to such other address as he or she may have designated to the Company in writing for purposes hereof.  Each such notice or other communication shall be deemed to have been duly given or mailed by United States certified or registered mail, return receipt requested, postage prepaid, except that any change of notice address shall be effective only upon receipt.

			
	
			
				 Section 5.09
			No Employment Rights Conferred.  The Plan does not alter the status of each Participant as an at-will employee of the Company. This Plan shall not be deemed to create a contract of employment between any Participant and the Company and/or any of its subsidiaries.  Nothing contained in this Plan shall (a) confer upon any Participant any right with respect to continuation of employment with the Company or any of its subsidiaries or (b) subject to the rights and benefits of any Participant hereunder, interfere in any way with the right of the Company or any of its subsidiaries to terminate such Participant's employment at any time.

			
	
			
				 Section 5.10
			Severability. If any provision of the Plan is, becomes, or is deemed to be invalid, illegal, or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions of this Plan shall not be affected thereby.

			
	
			
				 Section 5.11
			Section 409A. 

			
	
			
				 (a)
			

			
	
			
			The Plan is intended to comply with Section 409A of the Code or an exemption thereunder and shall be construed and administered in accordance with Section 409A of the Code. Notwithstanding any other provision of the Plan, payments provided under the Plan may only be made upon an event and in a manner that complies with Section 409A of the Code or an applicable exemption. Any payments under the Plan that may be excluded from Section 409A of the Code either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A of the Code to the maximum extent possible. For purposes of Section 409A of the Code, each installment payment provided under the Plan shall be treated as a separate payment. Any payments to be made under the Plan upon a termination of employment shall only be made upon a "separation from service" under Section 409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under the Plan comply with Section 409A of the Code and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest, or other expenses that may be incurred by a Participant on account of non-compliance with Section 409A of the Code.

		
			

		 

		

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				 (b)
			

			
	
			
			Notwithstanding any other provision of the Plan, if any payment or benefit provided to a Participant in connection with his or her Qualifying Termination is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A of the Code and the Participant is determined to be a "specified employee" as defined in Section 409A(a)(2)(b)(i) of the Code, then such payment or benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the Qualifying Termination or, if earlier, on the Participant's death (the "Specified Employee Payment Date"). The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date shall be paid to the Participant in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance with their original schedule. Notwithstanding any other provision of the Plan, if any payment or benefit is conditioned on the Participant's execution of a Release/Severance Agreement, the first payment shall include all amounts that would otherwise have been paid to the Participant during the period beginning on the date of the Qualifying Termination and ending on the payment date if no delay had been imposed.

			
	
			
				 (c)
			

			
	
			
			To the extent required by Section 409A of the Code, each reimbursement or in-kind benefit provided under the Plan shall be provided in accordance with the following: (i) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; and (ii) any right to reimbursements or in-kind benefits under the Plan shall not be subject to liquidation or exchange for another benefit. 

		
			 
		

		
			
		

		
			

		 

		

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			IN WITNESS WHEREOF, and as conclusive evidence of the adoption of this Plan, Medifast, Inc. has caused this Plan to be duly executed in its name and behalf by its proper officer thereunto duly authorized as of the Effective Date.
		

		
			 
		

		
			/s/ DANIEL R. CHARD                        November 7, 2019
		

		
			Daniel R. Chard,Date
		

		
			Chief Executive Officer,
		

		
			Medifast, Inc.
		

		
			 
		

		
			

		 

		

			9

		

		

			 

		

		

			 

		

		

		
			EXHIBIT A
		

		
			Qualifying Termination (General)
		

		
			 
		

			
					
						 

					
					
						Cash Severance

					
					
						Stock Options

					
					
						Time-Based Restricted Shares or Deferred Shares

					
					
						Performance-Based Restricted Shares or Deferred Shares

				
	
					
						Chief Executive Officer

					
					
						1.5 times the sum of the Annual Base Salary and the Target Bonus

					
					
						Fully vest and remain exercisable for 90 days

					
					
						Vest on a pro-rata basis, based on the number of months during the vesting period the Participant was employed

					
					
						Vest on a pro-rata basis, based on the number of months during the performance period the Participant was employed, paid out at the end of the performance period based on actual performance

				
	
					
						Chief Financial Officer

					
					
						1 times the sum of the Annual Base Salary and the Target Bonus

				
	
					
						Other Executives

					
					
						1 times the Annual Base Salary, and a pro-rated Target Bonus based on the number of months during the year the Participant was employed

				

		
			 
		

		
			The Cash Severance shall be paid in a lump sum, no later than 30 days following the Termination Date, subject to Section 3.03.  
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			10

		

		

			 

		

		

			 

		

		

		
			EXHIBIT B
		

		
			Qualifying Termination Following Change in Control
		

		
			 
		

			
					
						 

					
					
						Cash Severance

					
					
						Stock Options

					
					
						Time-Based Restricted Shares or Deferred Shares

					
					
						Performance-Based Restricted Shares or Deferred Shares

				
	
					
						Chief Executive Officer

					
					
						2.5 times the sum of the Annual Base Salary and the Target Bonus

					
					
						Fully vest and remain exercisable for 90 days

					
					
						Fully vest

					
					
						Vest on a pro-rata basis, based on the number of months during the performance period the Participant was employed, at the target performance level

				
	
					
						Chief Financial Officer*

					
					
						1.5 times the sum of the Annual Base Salary and the Target Bonus

				
	
					
						Other Executives

					
					
						1.5 times the sum of the Annual Base Salary and the Target Bonus

				

		
			 
		

		
			Cash Severance shall be paid in a lump sum, no later than 30 days following the Termination Date, subject to Section 3.03.  
		

		
			*Notwithstanding, and in addition to, the foregoing or any other plan or agreement, in the event of a Change in Control, the Chief Financial Officer’s stock options shall fully vest and remain exercisable for 90 days; restricted shares and time based equity awards shall fully vest; and performance based equity awards shall be paid out no later than 30 days following the Change in Control based on the target performance level.
		

		
			 
		

		 

		

			11

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