Document:

Exhibit

Exhibit 10.2

EXECUTIVE EMPLOYMENT AND RETIREMENT AGREEMENT AND RELEASE
This Employment and Retirement Agreement and Release (“Agreement”) is made and entered into by and between Kathleen Philips (“Executive”) and Zillow Group, Inc. (the “Company”), hereinafter collectively referred to as the “Parties.”
RECITALS
A.    WHEREAS, on or about September 15, 2010, the Company appointed Executive to the positions of General Counsel and Secretary to the Company, and on or about May 20, 2011, the Company and Executive entered into an Executive Employment Agreement, restating Executive’s appointment to the position of General Counsel (the “Employment Agreement”), and thereafter the Company appointed Executive to the positions of Chief Financial Officer, Chief Legal Officer, and Treasurer of the Company; 
B.    WHEREAS, Executive has provided the Company with notice of her retirement from the Company; and
C.    WHEREAS, the Parties wish to end the employment relationship amicably and to enter into certain covenants below, to provide assurances and peace of mind to each party; 
NOW, THEREFORE, in consideration of the Recitals and the mutual promises, covenants, and agreements set forth herein, the receipt and sufficiency of which are hereby acknowledged, the Parties covenant and agree as follows:
1. TERMINATION OF EMPLOYMENT
1.1    Termination of Employment.  Executive understands and agrees that Executive’s employment with the Company will terminate on August 31, 2020, (“Separation Date”) unless ended earlier for failure to comply with the terms of this Agreement, or pursuant to the provisions of paragraph 1.6.  
1.2.    Interim Employment.  The Parties agree that subject to Executive’s compliance with the terms of this Agreement, Executive will remain on the Company’s payroll through December 31, 2018 (“Interim Period of Employment”) on the following terms: 
(a) Executive will remain in her role as Chief Financial Officer, Secretary and Treasurer,  until such time as the Company hires a new Chief Financial Officer or appoints an Interim Chief Financial Officer, and the new Chief Financial Officer or Interim Chief Financial Officer assumes that role, or until the close of business May 31, 2018, whichever event occurs first.  
(b) Should the Company hire a new Chief Financial Officer or appoint an Interim Chief Financial Officer at or prior to the close of business May 31, 2018, Executive’s day-to-day responsibilities as Chief Financial Officer, Secretary and Treasurer with the Company will immediately cease, and Executive will then provide reasonable assistance with the onboarding of the new Chief Financial Officer or Interim Chief Financial Officer.  From the date upon which the onboarding process is complete through December 31, 2018, Executive will make herself available to the new Chief Financial Officer or Interim Chief Financial Officer and the Company for consultation on a reasonable, as-needed basis.
(c) Executive will assist in the transitioning of her position as an officer of Zillow Group Mortgages, Inc. (“ZGMI”) until such time as another officer of the Company is appointed to the position of Chief Financial Officer with ZGMI, or until the close of business on December 31, 2018, whichever event occurs first. 
(d) Executive will remain in her role as an officer and member of the board of directors of the Company’s wholly-owned subsidiaries (as applicable) until such time as another officer and/or director of such subsidiaries is appointed, or until the close of business on December 31, 2018, whichever event occurs first.

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1.3    Transition Period.  Subject to Executive’s compliance with the terms of this Agreement, the Company will continue to employ Executive from January 1, 2019 through August 31, 2020, (the “Transition Period”).  The parties shall mutually agree upon Executive’s title to be used during the Transition Period.  Executive will make herself available for an advisory role with the Company, upon and in accordance with the Company’s reasonable requests.    
1.4.    Compliance with Agreement.  Executive acknowledges and agrees that the Company may terminate her employment at any time during the Interim Period of Employment or Transition Period if she fails to comply with the terms of this Agreement.  Executive further acknowledges and agrees that if during the Interim Period of Employment or the Transition Period she is convicted of a felony, or engages in conduct that the Company reasonably believes violates any statute, rule or regulation governing the Company that results in a material adverse effect on the Company, she will immediately cease to be entitled to any rights to continued vesting of equity compensation as provided for under this Agreement.
1.5.    Effect of this Agreement.  The Parties acknowledge and agree that upon the Effective Date (as defined in paragraph 7.8 herein) of this Agreement, the Employment Agreement will terminate.    Executive, however, understands and agrees that she has continuing obligations under the confidentiality and proprietary rights provisions of her Confidential Information, Inventions, Nonsolicitation and Noncompetition Agreement with the Company (attached as Exhibit A), incorporated herein by reference, to the extent enforceable under all applicable law, and she reaffirms those commitments in this Agreement, and agrees that, as part of this Agreement she will continue to abide by her obligations under the terms of Exhibit A, consistent with and to the extent enforceable under all applicable law.  
1.6.    Effect of Other Employment.  Executive agrees that within five business days of accepting employment as an executive officer at another company, she will provide the Company’s Chief Executive Officer with written notice of her acceptance of the position.  Executive further acknowledges and agrees that upon such employment at another company she will immediately cease to be entitled to any compensation, benefits, or other rights inuring to her under this Agreement, including but not limited to any rights to continued vesting of equity compensation as provided for under this Agreement.  For purposes of this paragraph 1.6, employment as an executive officer at another company does not include providing consulting services to other companies on a part-time basis, provided that Executive may not under any circumstances provide consulting services on any basis to a competitor of the Company, as “competitor” is defined in the Confidential Information, Inventions, Nonsolicitation and Noncompetition Agreement (attached hereto as Exhibit A).  Executive acknowledges and agrees that upon providing consulting services of any type, on any basis to a competitor of the Company, she will immediately cease to be entitled to any compensation, benefits, or other rights inuring to her under this Agreement, including but not limited to any rights to continued vesting of equity compensation as provided for under this Agreement.  
Executive agrees that prior to accepting a position with the board of directors (“Board Position”) of another company she will provide the Company’s Chief Executive Officer with written notice of her interest in the position.  If it is determined after the vetting process then in place for determining the suitability of board positions for company executives that the potential position is with a competitor of the Company, as “competitor” is defined in the Confidential Information, Inventions, Nonsolicitation and Noncompetition Agreement (attached hereto as Exhibit A), Executive acknowledges and agrees that upon acceptance of such a position, she will immediately cease to be entitled to any compensation, benefits, or other rights inuring to her under this Agreement, including but not limited to any rights to continued vesting of equity compensation as provided for under this Agreement.  The Company acknowledges that as of May 3, 2018, Executive serves as a director on the boards of Apptio, Inc. and TPG Pace Holdings Corp. (“Current Board Positions”).  The Company further acknowledges and agrees that Executive’s current Board Positions are with companies that are not currently competitors of the Company, and as such, Executive’s continued service in the Current Board Positions does not violate the provisions of this paragraph 1.6.
1.7.    Effect of Executive’s Death or Total Disability.  This Agreement and Executive’s employment hereunder shall terminate automatically upon the death or Total Disability of Executive.  “Total Disability” shall mean Executive’s inability, with reasonable accommodation, to perform Executive’s duties under this Agreement for a period or periods aggregating ninety (90) days in any period of one hundred eighty (180) consecutive days as a result of physical or mental illness, loss of legal capacity or any other cause beyond Executive’s control.  Termination under this paragraph 1.7 shall be deemed to be effective (a) at the end of the calendar month in which Executive’s death occurs or (b) immediately upon a determination by the Board of Directors (or the Compensation Committee thereof) of Executive’s Total Disability. In the case of termination of employment under this paragraph 1.7, Executive’s outstanding unvested options shall be accelerated in vesting with respect to those portions of such 

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options that would have otherwise vested had employment continued through the Separation Date.  Executive or her legal representatives shall also be entitled to any accrued and unpaid vacation pay or other benefits which may be owing in accordance with the Company’s policies, and to COBRA benefits to the extent permitted by law.
2. COMPENSATION
2.1    Compensation During Interim Period of Employment.  
Subject to Executive’s compliance with all the terms and conditions of this Agreement, during the Interim Period of Employment, the Company will continue to pay Executive’s base salary (as in effect on April 1, 2018), less standard deductions and withholdings required by law or directed by Executive, and maintain Executive’s health care allowance for herself and her covered family members, subject to the terms and conditions of the applicable benefit plans or programs.  Executive will be paid on the regular payroll dates of the Company.  
2.2    Compensation During Transition Period.
Subject to Executive’s compliance with all the terms and conditions of this Agreement, during the Transition Period, the Company will pay Executive a base salary of forty thousand dollars ($40,000) per annum, less standard deductions and withholdings required by law or directed by Executive, and maintain Executive’s health care allowance for herself and her covered family memb\''',,jjers, subject to the terms and conditions of the applicable benefit plans or programs.  Executive will be paid on the regular payroll dates of the Company.
2.3     Initial and Renewed Separation Payment) 
(a) No later than ten days after the Effective Date (as defined in paragraph 7.8), the Company will pay Executive a lump sum of Ten Thousand Dollars ($10,000), less standard deductions and withholdings required by law and directed by Executive (“Initial Separation Payment”).
(b) Subject to the Executive’s compliance with all the terms and conditions of this Agreement, no later than ten days after the Second Effective Date (as defined in Exhibit B), provided the Executive has executed the renewed release in Exhibit B and has not revoked acceptance of this Agreement or Exhibit B, the Company will pay Executive a lump sum of Ten Thousand Dollars ($10,000), less standard deductions and withholdings required by law and directed by Executive.  (“Renewed Separation Payment,” and, collectively, with the Initial Separation Payment, the “Separation Payment’).
2.4.    COBRA.  To the extent provided by the federal COBRA law and by the Company’s current group health plan, Executive may be eligible to continue group health insurance benefits at her own expense after the Separation Date.  The Company will provide Executive with separate written notice of her rights and obligations under COBRA.
2.5    Equity Compensation.  Each outstanding stock option held by Executive will continue to vest in accordance with its applicable vesting schedule under the Stock Option Grant Notice and Stock Option Agreement for the option until the Separation Date (or such earlier date employment terminates, including for failure to comply with the terms of this Agreement or pursuant to the provisions of paragraph 1.6) (“Option Separation Date”).  All unvested options as of the Option Separation Date will automatically terminate and cease to be exercisable, except as otherwise provided in paragraph 1.7.  Following the Option Separation Date, Executive will have three months to exercise the vested portions of such options (or one year in the event of termination of employment by reason of death or if death occurs during the foregoing three-month option exercise period and one year in the event of termination of employment by reason of Total Disability); provided, however, that in no event may an option be exercisable after the last day upon which such stock option expires by its original terms under any circumstances.  
2.6    Legal Consideration.  Executive agrees that the Separation Payment referenced in paragraph 2.3 constitutes sufficient legal consideration for her promises and covenants set forth in the Agreement.  Executive further acknowledges and agrees that the Separation Payment is not required by the policies and procedures of the Company, by the Employment Agreement or by any other contractual obligation, but rather is offered solely as consideration for Executive’s promises and covenants made pursuant to this Agreement.  Executive further agrees that she is not entitled to any other compensation not expressly provided for herein.

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    3. GENERAL RELEASE AND WAIVER OF CLAIMS BY EXECUTIVE
3.1    In consideration of the Initial Separation Payment set forth in paragraph 2 above, and other mutual agreements and covenants set forth in the Agreement, Executive, on behalf of herself, her marital community, her heirs, executors, administrators, successors and assigns, agrees to the following:
(a)    Executive expressly waives any claims against the Company and releases the Company and its predecessors, successors, parents, subsidiaries, and related or affiliated entities (including, without limitation, their present, former, and future officers, directors, shareholders, managers, agents, employees, attorneys, and representatives) (the "Released Parties") from any claims that Executive may have in any way connected with Executive’s employment with the Company and the termination thereof, whether or not such claims are presently known or unknown to Executive.  It is understood that the release includes, but is not limited to, any claims for damages of any kind whatsoever, including any claims for employment benefits, arising out of any contracts, express or implied, any covenant of good faith and fair dealing, express or implied, any theory of unlawful discharge or other tort theory, any legal restriction on the Company’s right to terminate Executives, or any federal, state or other governmental statute or ordinance, including, without limitation, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Americans with Disabilities Act, the Employee Retirement Income Security Act of 1974, the Washington Law Against Discrimination (“WLAD”), the California Fair Employment and Housing Act (“FEHA”), the California Family Rights Act, the California Labor Code, any California Industrial Welfare Commission Wage Order, and any other state laws concerning discrimination or harassment, or any other legal limitation on the employment relationship to the maximum extent such claims are allowed by law to be released.  The waiver and release shall not waive or release claims where the events in dispute first arise after execution of the Agreement, nor shall it preclude Executive or the Company from filing a lawsuit for the exclusive purpose of enforcing the Agreement.
(b)    Executive represents and warrants that, as of the Effective Date, she has not filed any lawsuits, complaints, or charges against the Released Parties with any governmental agency or any court.  
(c)    Executive understands that nothing in this Agreement is intended to interfere with or deter Executive’s right to challenge the waiver of an ADEA claim or state law age discrimination claim or the filing of an ADEA charge or ADEA complaint or state law age discrimination complaint or charge with the EEOC or any state discrimination agency or commission or to participate in any investigation or proceeding conducted by those agencies. Further, Executive understands that nothing in this Agreement would require Executive to tender back the money received under this Agreement if Executive seeks to challenge the validity of the ADEA or state law age discrimination waiver, nor does the Executive agree to ratify any ADEA or state law age discrimination waiver that fails to comply with the Older Workers’ Benefit Protection Act by retaining the money received under the Agreement. Further, nothing in this Agreement is intended to require the payment of damages, attorneys’ fees or costs to the Company should Executive challenge the waiver of an ADEA or state law age discrimination claim or file an ADEA or state law age discrimination suit except as authorized by federal or state law.
(d)    This release excludes any claim which cannot be released by private agreement, such as workers’ compensation claims, claims after the Effective Date of this Agreement (as defined below), and the right to file administrative charges with certain government agencies. Nothing in this Agreement shall be construed to prohibit Executive from filing a charge with or participating in any investigation or proceeding conducted by the Equal Employment Opportunity Commission, National Labor Relations Board, or a comparable state or local agency. Notwithstanding this or the immediately preceding paragraph, Executive agrees to waive any right to recover monetary damages in any charge, complaint, or lawsuit against the Company filed by Executive or by anyone else on Executive’s behalf with respect to any Released Claim.
(e)    To the extent permitted by law, Employee also promises never directly or indirectly to bring or participate in an action against any released party under California Business & Professions Code Section 17200 or any unfair competition law of any jurisdiction regarding any events up through the Effective Date.
This release does not cover any claim or right Employee cannot waive as a matter of law, such as rights to workers compensation benefits, unemployment benefits, vested benefits under Company's fringe benefit plans, claims against Company for breach of its obligations under this Agreement, and any claims that might arise after the date Employee signs this Agreement.

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(f)    It is the intention of Executive in executing this Agreement that the same shall be effective as a waiver and bar to each and every claim, including any potential unknown or unsuspected claims.  Executive, therefore, expressly waives any and all rights and benefits conferred by the provisions of SECTION 1542 OF THE CALIFORNIA CIVIL CODE, which provides:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”
Executive expressly waives any right, claim or cause of action that might arise as a result of information later learned by Executive.
3.2    This release covers both claims that Executive knows about and those that Executive may not know about, except that it does not waive any rights or claims, including claims under the ADEA that may arise after the Effective Date of this Agreement.  Executive further represents and warrants that: (i) Executive has been fully and properly paid for all hours worked, (ii) Executive has received all leave to which Executive is entitled in accordance with applicable law; and (iii) Executive has not suffered any on the job injury for which Executive has not already filed a claim. Executive further acknowledges, agrees and hereby stipulates that: (i) during Executive’s employment with the Company, Executive was allowed to take all leave and afforded all other rights to which Executive was entitled under the Family and Medical Leave Act (“FMLA”); and (ii) the Company has not in any way interfered with, restrained or denied the exercise of (or attempt to exercise) any FMLA rights, nor terminated or otherwise discriminated against Executive for exercising (or attempting to exercise) any such rights. 
4.    RETURN OF COMPANY PROPERTY
4.    On or before the Separation Date, Executive shall turn over to the Company all property of the Company, including without limitation all files, memoranda, keys, manuals, equipment, data, records, and other documents, including electronically recorded documents and data that Executive received from the Company or its directors or employees or that Executive generated in the course of her employment with the Company.  No later than the Separation Date, Executive shall also provide the Company with access to all Company-related computer files and any and all passwords needed to access those files.
5.    RESTRICTIVE COVENANTS
5.1.     Confidentiality and Proprietary Rights 
(a)    Executive acknowledges and agrees that during her employment with the Company she acquired considerable Confidential Information about the Company.  Executive acknowledges and agrees that the term "Confidential Information" shall mean information belonging to the Company which is of value to the Company or with respect to which Company has right in the course of conducting its business and the disclosure of which could result in a competitive or other disadvantage to the Company.  Confidential Information includes information, whether or not patentable or copyrightable, in written, oral, electronic or other tangible or intangible forms, stored in any medium, including, by way of example and without limitation, trade secrets, ideas, concepts, designs, configurations, specifications, drawings, blueprints, diagrams, models, prototypes, samples, flow charts processes, techniques, formulas, software, improvements, inventions, data, know-how, discoveries, copyrightable materials, marketing plans and strategies, sales and financial reports and forecasts, customer lists, studies, reports, records, books, contracts, instruments, surveys, computer disks, diskettes, tapes, computer programs and business plans, prospects and opportunities (such as possible acquisitions or dispositions of businesses or facilities) which have, to Executive’s knowledge, been discussed or considered by the management of the Company.  Confidential Information includes information developed by Executive within the course and scope of Executive's employment by the Company, as well as other information to which Executive may have access in connection with Executive's performance of her duties to the Company.  Confidential Information also includes the confidential information of others with which the Company has a business relationship that became known to Executive in connection with her performance of her duties to the Company.  Notwithstanding the foregoing, Confidential Information does not include information in the public domain, unless due to breach of Executive's duties under paragraph 7.2 of this Agreement.
(b)    Executive hereby reaffirms her continuing confidentiality obligations under the terms of her Confidential Information, Inventions, Nonsolicitation and Noncompetition Agreement with the Company (attached 

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as Exhibit A), consistent with and to the extent enforceable under all applicable law, specifically including, but not limited to, the provisions regarding nondisclosure of the Company’s trade secrets and confidential and proprietary information, non-solicitation, and noncompetition, as set forth in Exhibit A to this Agreement.  Executive covenants and agrees that both prior to and after the Separation Date she will continue to be bound by the terms of Non-Competition, Non-Solicitation, Confidentiality, and Proprietary Rights provisions of the Employment Agreement, restated and incorporated herein by reference.  
(c)    Notwithstanding anything to the contrary, this paragraph does not prohibit the disclosure of trade secret information within the limitations permitted by the Defend Trade Secrets Act, and Executive is hereby notified that no individual will be held criminally or civilly liable for the disclosure of a trade secret (as defined in the Act) that is: (a) made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and made solely for the purpose of reporting or investigating a suspected violation of law; (b) made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal so that it is not made public; or (c) disclosed to the individual’s attorney or used in a court proceeding (as permitted by court order) in connection with a lawsuit for retaliation by an employer for reporting a suspected violation of the law.
(d)    Nothing in this paragraph or Agreement shall be construed to prohibit Executive from filing a charge with or participating in any investigation or proceeding conducted by the Equal Employment Opportunity Commission, National Labor Relations Board, or a comparable state or local agency. Furthermore, this paragraph does not apply to the Executive filing a charge with or participating in any investigation or proceeding conducted by the Equal Employment Opportunity Commission, National Labor Relations Board, or a comparable state or local agency.
5.2.    Non-Disparagement.  The Company’s directors and executive officers and other individuals authorized to make official communications on Company’s behalf agree to refrain from disparaging Executive or Executive’s performance or otherwise taking any action that could reasonably be expected to adversely affect the Executive’s personal or professional reputation.  Similarly, Executive agrees to refrain from any disparagement, defamation, libel, slander or making of any other negative statement regarding the Company, its prospects, products or services (together, the “Company Business”), its employees, directors, shareholders, consultants, advisors, agents or representatives (the “Company People”), or its business reputation, or tortious interference with the contracts and relationships of the Company.  Executive further agrees that she will not otherwise intentionally engage in conduct that is not in good faith and that is intended to disrupt, damage, impair or interfere with the Company Business, the Company People, and the Company’s reputation and relationships.    
5.3.    Internal and External Communications.  Prior to May 7, 2018, the Parties will develop and issue mutually agreed upon external and internal statements regarding Executive’s retirement.
5.4.    Remedies.  It is specifically understood and agreed that any breach of the provisions of paragraph 5 of this Agreement is likely to result in irreparable injury to the Company and that the remedy at law alone will be an inadequate remedy for such breach, and that in addition to any other remedy it may have, the Company shall be entitled (a) to enforce the specific performance of this Agreement by Executive and to seek both temporary and permanent injunctive relief (to the extent permitted by law) without bond and without liability should such relief be denied, modified or violated and (b) to cease making any payments or providing any benefit otherwise required by this Agreement, including, without limitation, any Compensation required under paragraph 2 of this Agreement, in each case in addition to any other remedy to which the Company may be entitled at law or in equity. 
6.    NOTICES
All notices hereunder, to be effective, shall be in writing and shall be deemed effective when delivered by hand or mailed by (a) certified mail, postage and fees prepaid, or (b) nationally recognized overnight express mail service, as follows:

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If to the Company:
	
			
	 
	Zillow Group, Inc.
	 

	 
	1301 2nd Ave, Floor 31
	 

	 
	Seattle, WA
	 

	 
	legal@zillowgroup.com
	 

	 
	 
	 

	 
	Attn: General Counsel
	 

If to the Executive:

	
			
	 
	Kathleen Philips
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

or to such other address as a party may notify the other pursuant to a notice given in accordance with this paragraph 6.
7.    GENERAL PROVISIONS
7.1.    No Admissions.  The Agreement should not be construed as an admission or a statement of any party hereto that such party has acted wrongfully or unlawfully. Each party expressly denies any wrongful or unlawful action. 
7.2.    Opportunity to Review and Revocation Period.  Executive hereby warrants and represents that (a) she has carefully read this Agreement including the release in paragraph 3, and finds that it is written in a manner that she understands; (b) Executive knows the contents hereof; (c) Executive has been advised to consult and has discussed the Agreement and its effects with her personal attorney or has knowingly and voluntarily waived the right to do so; (d) Executive  understands that she is giving up all claims, damages, and disputes that have arisen before the date of this Agreement, except as provided herein; (e) Executive has had the opportunity to review and analyze this Agreement for twenty-one (21) days (the “Review Period”) and must sign this Agreement by the end of the Review Period, but agrees that if she signs this Agreement before expiration of the Review Period, she knowingly and voluntarily agrees to waive the remainder of the Review Period; (f) Executive has seven (7) days to revoke this Agreement by notifying the Company’s General Counsel via written communication at the address below before midnight on the seventh day after you sign this Agreement (the “Revocation Period”); (g) Executive did not rely upon any representation or statement concerning the subject matter of this Agreement, except as expressly stated in the Agreement; (h) Executive understands the Agreement’s final and binding effect; and (i) Executive has signed the Agreement as her free and voluntary act.
7.3.    Entire Agreement; Amendment.  This Agreement constitutes the entire Agreement between the parties hereto with regard to the subject matter hereof, superseding all prior understandings and agreements, whether written or oral, with the exception of the confidentiality and proprietary rights provisions of the Confidential Information, Inventions, Nonsolicitation and Noncompetition Agreement with the Company (attached as Exhibit A), which remain in effect to the extent enforceable under all applicable law, and the terms of the Indemnification Agreement entered into between Executive and the Company on or about May 20, 2011.  This Agreement may not be amended or revised except by a writing signed by the parties.
7.4.    Section 409A.  The parties intend that this Agreement and the payments and benefits provided hereunder be exempt from the requirements of Section 409A of the Code to the maximum extent possible, whether pursuant to the short-term deferral exception described in Treas. Reg. Section 1.409A-1(b)(4), the involuntary separation pay plan exception described in Treas. Reg. Section 1.409A-1(b)(9)(iii), or otherwise.  To the extent Section 409A of the Code is applicable to this Agreement, the parties intend that this Agreement and any payments and benefits thereunder comply with the deferral, payout and other limitations and restrictions imposed under Section 409A of the Code.  Notwithstanding anything herein to the contrary, this Agreement shall be interpreted, operated and 

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administered in a manner consistent with such intentions; provided, however that in no event shall the Company (or any of its affiliates or successors) be liable for any additional tax, interest or penalty that may be imposed on Executive pursuant to Section 409A of the Code or for any damages incurred by Executive as a result of this Agreement (or the payments or benefits hereunder) failing to comply with, or be exempt from, Section 409A of the Code. Without limiting the generality of the foregoing and notwithstanding any other provision of this Agreement to the contrary: 
(a)If any payment, compensation or other benefit provided to Executive in connection with her employment termination is determined, in whole or in part, to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code and Executive is a specified employee as defined in Section 409A(a)(2)(B)(i) of the Code, then no portion of such “nonqualified deferred compensation” shall be paid before the day that is 6 months plus one (1) day after the date of termination (the “New Payment Date”).  The aggregate of any payments that otherwise would have been paid to Executive during the period between the date of termination and the New Payment Date shall be paid to Executive in a lump sum on such New Payment Date.  Thereafter, any payments that remain outstanding as of the day immediately following the New Payment Date shall be paid without delay over the time period originally scheduled, in accordance with the terms of this Agreement.  Notwithstanding the foregoing, to the extent that the foregoing applies to the provision of any ongoing welfare benefits to Executive that would not be required to be delayed if the premiums therefor were paid by Executive, Executive shall pay the full cost of premiums for such welfare benefits during the six-month period and the Company shall pay Executive an amount equal to the amount of such premiums paid by Executive during such six-month period promptly after its conclusion. The parties hereto acknowledge and agree that the interpretation of Section 409A of the Code and its application to the terms of this Agreement is uncertain and may be subject to change as additional guidance and interpretations become available.  Anything to the contrary herein notwithstanding, all benefits or payments provided by the Company to Executive that would be deemed to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code are intended to comply with Section 409A of the Code.  If, however, any such benefit or payment is deemed to not comply with Section 409A of the Code, the Company and Executive agree to renegotiate in good faith any such benefit or payment (including, without limitation, as to the timing of any severance payments payable hereof) so that either (i) Section 409A of the Code will not apply or (ii) compliance with Section 409A of the Code will be achieved; provided, that, neither the Company nor its employees or representatives shall have liability to Executive with respect hereto. 

(b) Notwithstanding anything to the contrary contained in this Agreement, all reimbursements for costs and expenses under this Agreement shall be paid in no event later than the end of the taxable year following the taxable year in which Executive incurs such expense. With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Section 409A of the Code, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (ii) the amount of expenses eligible for reimbursements or in-kind benefits provided during any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable year.

(c)If under this Agreement, an amount is paid in two or more installments, for purposes of Section 409A of the Code, each installment shall be treated as a separate payment.

(d)A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits subject to Section 409A of the Code upon or following a termination of employment unless such termination is also a “separation from service” as defined in Section 1.409A-1(h) of the Department of Treasury final regulations, including the default presumptions, and for purposes of any such provision of this Agreement, references to a “resignation,” “termination,” “terminate,” “termination of employment” or like terms shall mean separation from.

7.5    Enforcement.  This Agreement shall be construed under and enforced in accordance with the laws of the State of Washington, without regard to the conflicts of law provisions thereof.  Any disputes arising under this Agreement shall be brought in a court of competent jurisdiction within King County, Washington.  Executive acknowledges that she may be subject to a permanent injunction and/or temporary restraining order for any violations of this Agreement, including any violations of the Confidential Information, Inventions, Nonsolicitation and Noncompetition Agreement with the Company (attached as Exhibit A).
7.6.    Cooperation.  
(a)    In return for the amounts paid hereunder, Executive agrees to cooperate in defense of the Company in any legal action or claim in which Executive is named as a witness or defendant.  Cooperation shall 

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include, upon request by the Company, participating in and testifying at depositions, trials, mediations, arbitrations, or other hearings; providing information in written format such as declaration or affidavit; making herself available to the Company and its attorneys for interview or other consultation; and providing general assistance to the Company and its attorneys.  Executive acknowledges that this is a material term of this Agreement, and that breach of this term would cause damage to the Company.  Lack of compliance shall be shown by failure, after notice in writing, to abide by the Company’s request.
(b)    In exchange for Executive’s agreement to cooperate and assist in the defense of the Company in any legal action, the Company agrees to be responsible and reimburse Executive for reasonable expenses or costs associated with her participation and cooperation in such possible legal actions, including any and all travel, airfare and transportation, lodging, and meals within thirty (30) days after submission of receipts by Executive.
7.7.    Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and shall have the same effect as if the signatures hereto and thereto were on the same instrument. 
7.8.    The “Effective Date” of this Agreement is the date that is eight (8) days following the date on which Executive signs this Agreement, so long as Executive has not revoked acceptance of this Agreement before such date.
7.9.    By executing this Agreement, Executive also acknowledges that Executive: (a) is not relying upon any statements, understandings, representations, expectations, or agreements other than those expressly set forth in this Agreement; (b) has made Executive’s own investigation of the facts and is relying solely upon Executive’s own knowledge and the advice of Executive’s own legal counsel; and (c) knowingly waives any claim that this Agreement was induced by any misrepresentation or nondisclosure and any right to rescind or avoid this Agreement based upon presently existing facts, known or unknown.  The Parties stipulate that each Party is relying upon these representations and warranties in entering into this Agreement.  These representations and warranties shall survive the execution of this Agreement.  
7.10.    All terms and provisions of this Agreement, and the drafting of this Agreement, have been negotiated by the Parties at arm’s length and to mutual agreement, with consideration by and participation of each, and no party shall be deemed the scrivener of this Agreement.
7.11.    Construction.  Paragraph 3 of the Agreement is integral to its purpose and may not be severed from it.  Should any other provision of the Agreement be deemed invalid or unenforceable, that provision shall be narrowed to the extent required to make it lawful and enforceable, and the remaining provisions shall not be affected but instead remain valid and enforceable to the maximum extent consistent with current law.
7.12.    Knowing and Voluntary Agreement.  Executive understands this Agreement is a release of claims against Releasees arising before or on the Effective Date of this Agreement.  Executive understands that Executive is not waiving claims that the law does not permit Executive to waive, nor is Executive waiving any claims arising after the Effective Date of this Agreement, including, but not limited to, claims for enforcement of this Agreement.
[The remainder of this page is left intentionally blank.]

9

IN WITNESS WHEREOF, the parties have executed this Executive Employment and Retirement Agreement and Release as of the dates indicated below.
	
				
	"COMPANY"
	 
	ZILLOW GROUP, INC.

	 
	 
	 
	 

	 
	 
	Name:
	/s/ SPENCER M. RASCOFF

	 
	 
	Title:
	Chief Executive Officer

	 
	 
	Dated:
	5/3/2018

	 
	 
	 
	 

	 
	 
	 
	 

	"EXECUTIVE"
	 
	 

	 
	 
	 
	 

	 
	 
	/s/ KATHLEEN PHILIPS

	 
	 
	Kathleen Philips

	 
	 
	Dated:
	5/3/2018

SPOUSAL CONSENT
I am the spouse of Kathleen Philips.  I acknowledge that I have read the foregoing Executive Employment and Retirement Agreement and Release (“Agreement”) and that I know the contents thereof, including the contents of the exhibits thereto.  I am aware that by the provisions of the Agreement, my spouse agrees, among other things, to the general release and waiver of claims set forth in paragraph 3 of the Agreement and paragraph 1 of Exhibit B to the Agreement, including my community interest therein (if any), on the terms and conditions set forth in the Agreement.  I hereby expressly approve of and agree to be bound by the provisions of this Agreement in its entirety, including, but not limited to, those provisions relating to the general release and waiver of claims.  I also acknowledge that I have been advised to obtain independent counsel to represent my interests with respect to this consent but that I have declined to do so and hereby expressly waive my right to such independent counsel.

	
				
	 
	 
	 
	 

	 
	 
	/s/ DONALD PHILIPS

	 
	 
	Donald Philips, Spouse

	 
	 
	Name of Employee: Kathleen Philips

	 
	 
	Dated:
	5/3/2018

10

EXHIBIT A

Confidential Information, Inventions, Nonsolicitation, and Noncompetition Agreement

11

EXHIBIT B

Renewed Release Agreement

This is a renewed release agreement (“Renewed Agreement” or “Exhibit B”) between Kathleen Philips (“Executive”) and Zillow Group, Inc. (the “Company”).  It incorporates the terms of the prior release agreement between Executive and the Company (“Agreement”).  The parties further agree as follows:

1.    General Release of Claims

In consideration of the Renewed Separation Payment (as defined in the Agreement), Executive, on behalf of herself, her marital community, her heirs, executors, administrators, successors and assigns, agrees to the following:

(a)    Executive expressly waives any claims against the Company and releases the Company and its predecessors, successors, parents, subsidiaries, and related or affiliated entities (including, without limitation, their present, former, and future officers, directors, shareholders, managers, agents, employees, attorneys, and representatives) (the "Released Parties") from any claims that Executive may have in any way connected with Executive’s employment with the Company and the termination thereof, whether or not such claims are presently known or unknown to Executive.  It is understood that the release includes, but is not limited to, any claims for damages of any kind whatsoever, including any claims for employment benefits, arising out of any contracts, express or implied, any covenant of good faith and fair dealing, express or implied, any theory of unlawful discharge or other tort theory, any legal restriction on the Company’s right to terminate Executives, or any federal, state or other governmental statute or ordinance, including, without limitation, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Americans with Disabilities Act, the Employee Retirement Income Security Act of 1974, the Washington Law Against Discrimination (“WLAD”), the California Fair Employment and Housing Act (“FEHA”), the California Family Rights Act, the California Labor Code, any California Industrial Welfare Commission Wage Order, and any other state laws concerning discrimination or harassment, or any other legal limitation on the employment relationship to the maximum extent such claims are allowed by law to be released.  The waiver and release shall not waive or release claims where the events in dispute first arise after execution of the Agreement, nor shall it preclude Executive or the Company from filing a lawsuit for the exclusive purpose of enforcing the Agreement.
(b)    Executive represents and warrants that, as of the Effective Date, she has not filed any lawsuits, complaints, or charges against the Released Parties with any governmental agency or any court.  
(c)    Executive understands that nothing in this Agreement is intended to interfere with or deter Executive’s right to challenge the waiver of an ADEA claim or state law age discrimination claim or the filing of an ADEA charge or ADEA complaint or state law age discrimination complaint or charge with the EEOC or any state discrimination agency or commission or to participate in any investigation or proceeding conducted by those agencies. Further, Executive understands that nothing in this Agreement would require Executive to tender back the money received under this Agreement if Executive seeks to challenge the validity of the ADEA or state law age discrimination waiver, nor does the Executive agree to ratify any ADEA or state law age discrimination waiver that fails to comply with the Older Workers’ Benefit Protection Act by retaining the money received under the Agreement. Further, nothing in this Agreement is intended to require the payment of damages, attorneys’ fees or costs to the Company should Executive challenge the waiver of an ADEA or state law age discrimination claim or file an ADEA or state law age discrimination suit except as authorized by federal or state law.
(d)    This release excludes any claim which cannot be released by private agreement, such as workers’ compensation claims, claims after the Effective Date of this Agreement (as defined below), and the right to file administrative charges with certain government agencies. Nothing in this Agreement shall be construed to prohibit Executive from filing a charge with or participating in any investigation or proceeding conducted by the Equal Employment Opportunity Commission, National Labor Relations Board, or a comparable state or local agency. Notwithstanding this or the immediately preceding paragraph, Executive agrees to waive any right to recover monetary damages in any charge, complaint, or lawsuit against the Company filed by Executive or by anyone else on Executive’s behalf with respect to any Released Claim.

12

(e)    To the extent permitted by law, Employee also promises never directly or indirectly to bring or participate in an action against any released party under California Business & Professions Code Section 17200 or any unfair competition law of any jurisdiction regarding any events up through the Effective Date.
This release does not cover any claim or right Employee cannot waive as a matter of law, such as rights to workers compensation benefits, unemployment benefits, vested benefits under Company's fringe benefit plans, claims against Company for breach of its obligations under this Agreement, and any claims that might arise after the date Employee signs this Agreement.
(f)    It is the intention of Executive in executing this Agreement that the same shall be effective as a waiver and bar to each and every claim, including any potential unknown or unsuspected claims.  Executive, therefore, expressly waives any and all rights and benefits conferred by the provisions of SECTION 1542 OF THE CALIFORNIA CIVIL CODE, which provides:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”
Executive expressly waives any right, claim or cause of action that might arise as a result of information later learned by Executive.
This release covers both claims that Executive knows about and those that Executive may not know about, except that it does not waive any rights or claims, including claims under the ADEA that may arise after the Effective Date of this Agreement.  Executive further represents and warrants that: (i) Executive has been fully and properly paid for all hours worked, (ii) Executive has received all leave to which Executive is entitled in accordance with applicable law; and (iii) Executive has not suffered any on the job injury for which Executive has not already filed a claim. Executive further acknowledges, agrees and hereby stipulates that: (i) during Executive’s employment with the Company, Executive was allowed to take all leave and afforded all other rights to which Executive was entitled under the Family and Medical Leave Act (“FMLA”); and (ii) the Company has not in any way interfered with, restrained or denied the exercise of (or attempt to exercise) any FMLA rights, nor terminated or otherwise discriminated against Executive for exercising (or attempting to exercise) any such rights. 
2.    Right to Legal Advice and ADEA Consideration Period

This Exhibit B is intended to comply with the OWBPA for the release of claims under the ADEA.  Executive acknowledges receipt of this Exhibit B on August 31, 2020 and knows that Executive is entitled to twenty-one (21) days to consider whether to sign it, up to September 21, 2020 (“Second Consideration Period”).  By accepting this Exhibit B, Executive acknowledges and agrees that Executive is waiving rights and claims under the ADEA, as well as any similar state law.  The proposed terms of this Exhibit B shall not be amended, modified, or revoked by Company during the Second Consideration Period.  Executive may sign this Exhibit B or reject it at any time during the Second Consideration Period.  If Executive signs this Exhibit B before the Second Consideration Period has ended, Executive has voluntarily waived any remaining Second Consideration Period.  The Second Consideration Period allows Executive time to consider whether to execute this Exhibit B and to seek the advice of legal counsel or other advisors to be able to make an informed decision.  Executive has the right -- and is hereby advised -- to consult an attorney about this Exhibit B before signing it.

3.    Revocation of Exhibit B

Within seven (7) days of signing this Exhibit B, Executive may revoke it.  This Exhibit B will not become effective and enforceable and Executive will not receive the Renewed Separation Payment unless and until the seven-day revocation period passes without such a written revocation.  If Executive decides to revoke this Exhibit B, the revocation must be made in writing and delivered during the seven-day period to the Company’s General Counsel.

4.    Second Effective Date

This Exhibit B becomes effective and binding eight (8) days after Executive signs and returns this Exhibit B to the Company, so long as Executive has not revoked it (the “Second Effective Date”).

13

	
				
	"COMPANY"
	 
	ZILLOW GROUP, INC.

	 
	 
	 
	 

	 
	 
	Name:
	 

	 
	 
	 
	 

	 
	 
	Title:
	 

	 
	 
	 
	 

	 
	 
	Dated:
	 

	 
	 
	 
	 

	 
	 
	 
	 

	"EXECUTIVE"
	 
	 

	 
	 
	 
	 

	 
	 
	 

	 
	 
	Kathleen Philips

	 
	 
	 
	 

	 
	 
	Dated:
	 

SPOUSAL CONSENT
I am the spouse of Kathleen Philips.  I acknowledge that I have read the foregoing Executive Employment and Retirement Agreement and Release (“Agreement”) and that I know the contents thereof, including the contents of the exhibits thereto.  I am aware that by the provisions of the Agreement, my spouse agrees, among other things, to the general release and waiver of claims set forth in paragraph 3 of the Agreement and paragraph 1 of Exhibit B to the Agreement, including my community interest therein (if any), on the terms and conditions set forth in the Agreement.  I hereby expressly approve of and agree to be bound by the provisions of this Agreement in its entirety, including, but not limited to, those provisions relating to the general release and waiver of claims.  I also acknowledge that I have been advised to obtain independent counsel to represent my interests with respect to this consent but that I have declined to do so and hereby expressly waive my right to such independent counsel.

	
				
	 
	 
	 
	 

	 
	 
	 

	 
	 
	Donald Philips, Spouse

	 
	 
	Name of Employee: Kathleen Philips

	 
	 
	Dated:
	 

14ecol_Ex10_1

		

			EXHIBIT 10.1

		

		

			 

		

		
			US ECOLOGY, INC.
		

		
			2018 Management Incentive Plan 
		

		
			(EXECUTIVE)
		

		
			 
		

			
	
			
				I.
			

			
	
			
			PURPOSE

		
			The US Ecology, Inc. Omnibus Incentive Plan (“Omnibus Plan”) authorizes the Compensation Committee of US Ecology, Inc. (“Company”) to grant performance-based awards denominated in cash in such amounts and subject to such terms and conditions as the Compensation Committee may determine.  Pursuant to the Omnibus Plan, the US Ecology, Inc. 2018 Management Incentive Plan (Executive) (“Plan”) provides a variable component of compensation for executives for achievement of objectives set by the Compensation Committee during calendar year 2018 (“Plan Year”).  The Plan is designed to align the interests of executives with those of stockholders and attract, motivate and retain management critical to the long-term success of the Company. 
		

		
			 
		

			
	
			
				II.
			

			
	
			
			ADMINISTRATION

		
			The administrator of the Plan shall be the Compensation Committee of the Company’s Board of Directors (“Board”); hereinafter referred to as “Administrator”.  The Administrator shall have full power, discretion and authority to, among other things, interpret the Plan, verify all amounts paid under the Plan, and establish rules and procedures for its administration, as deemed necessary and appropriate.  The Administrator may rely on opinions, reports or statements of the Company’s officers, public accountants and other professionals.  The calculation of any amounts to be paid under the Plan shall be performed by the Company’s Chief Financial Officer and submitted by the Company’s Chief Executive Officer (“CEO”) to the Administrator for approval.  Any interpretation of the Plan or act of the Administrator, or its designee, in administering the Plan, shall be final and binding.  
		

		
			 
		

		
			No member of the Board shall be liable for any action, interpretation or construction made in good faith with respect to the Plan.  The Company shall indemnify, to the fullest extent permitted by law, each member of its Board who may become liable in any civil action or proceeding with respect to decisions made relating to the Plan.
		

		
			 
		

			
	
			
				III.
			

			
	
			
			ELIGIBILITY

		
			Eligibility to participate in the Plan is limited to designated executives of the Company (each a “Participant”) as approved by the Administrator and shall be evidenced by a letter from the CEO (“Participant Letter”). 
		

		
			 
		

		
			To be eligible to receive an award under the Plan, a Participant must have been employed by the Company (i) on a full-time basis during the Plan Year and (ii) on the date of any payment under the Plan, except as otherwise provided for in this Plan or when such requirement is waived by the Administrator.  
		

		
			 
		

			
	
			
				 a.
			

			
	
			
			New Hire/Rehire — A Participant whose employment with the Company began during the Plan Year shall be eligible for an award on a pro-rata basis, provided the Administrator has approved participation and other conditions of the Plan are satisfied.  An award will be pro-rated based upon the number of calendar days the Participant was employed in an eligible position during the Plan Year.  In the case of rehires, there shall be no credit for prior service, unless otherwise approved in writing by the Administrator.

		
			 
		

		
			

		 

		

			 

		

		

			 

		

 

		

			
	
			
				 b.
			

			
	
			
			Leave of Absence — A Participant who is absent from full-time employment with the Company for more than thirteen (13) consecutive weeks of the Plan Year shall not be eligible for payment under the Plan, unless the Administrator approves participation in writing. 

		
			 
		

			
	
			
				 c.
			

			
	
			
			Promotion — If a Participant is promoted to an eligible position or from one eligible position to another eligible position (with a higher award potential) during the Plan Year, a pro-rated award will be calculated by factoring the number of calendar days in each eligible position and considering the Target Incentive, Plan Objectives, metrics and weights applicable during the Participant’s tenure in each position. 

		
			 
		

			
	
			
				 d.
			

			
	
			
			Demotion – If a Participant is demoted from an eligible position during the Plan Year, such Participant shall be deemed ineligible for receipt of any payments under the Plan, unless otherwise approved in writing by the Administrator.

		
			 
		

			
	
			
				 e.
			

			
	
			
			Removal from Plan — A Participant may be removed from the Plan or an award adjusted, including elimination of any right to an award under the Plan, for insubordination, misconduct, malfeasance, or any formal disciplinary action taken by the Company during the Plan Year or prior to payment.

		
			 
		

			
	
			
				 f.
			

			
	
			
			Termination Without Cause by Company/With Good Reason by Participant — In the event a Participant is terminated without Cause by the Company or for Good Reason by the Participant, any amount that would have been due the Participant absent his/her termination shall be paid on a pro-rata basis based on the number of calendar days the Participant was employed during the Plan Year.  Payment shall be made according to the terms of the Plan and the requirement that the Participant be an employee on that date of payment shall be waived. “Cause” and “Good Reason” shall have the meanings set forth in the Participant’s employment agreement.  Notwithstanding any other provision herein to the contrary, Participant shall not be deemed to have terminated his/her employment for Good Reason unless (i) Participant notifies the Board in writing of the condition that Participant believe constitutes Good Reason within ninety (90) days of the initial existence thereof (which notice specifically identifies such condition and the details regarding its existence), (ii) the Company fails to remedy such condition within ten (10) days after the date the Board receives such notice (the “Remedial Period”), and (iii) Participant terminates employment with the Company (and its subsidiaries and affiliates) within sixty (60) days after the end of the Remedial Period.  The failure by Participant to include in the notice any fact or circumstance that contributes to a showing of Good Reason shall not waive any right of Participant hereunder or preclude Participant from asserting such fact or circumstance in enforcing his/her rights hereunder.

		
			 
		

			
	
			
				IV.
			

			
	
			
			INCENTIVE AWARD

		
			The Administrator shall establish the objectives (each a “Plan Objective”) that must be achieved for a Participant to receive payment of all or a portion of his/her target incentive amount, which amount is the product of the Participant’s annual salary and an established percentage (“Target Incentive”), also established by the Administrator.  
		

		
			 
		

		
			Payments under the Plan, if any, shall be made to a Participant upon certification by the Administrator that such payments are authorized and all applicable criteria have been satisfied.  Payments shall be made as soon as practicable after approval and availability of the Company’s final audited Plan Year financial statements, but in any event will be made by March 15, 2019.
		

		
			 
		

			
	
			
				V.
			

			
	
			
			PLAN OBJECTIVES

		
			

		 

		

			 

		

		

			2

		

		

			 

		

 

		

		
			Plan Objectives fall into one of four categories:  a) Financial (50% of Target Incentive), b) Individual Performance (30% of Target Incentive), c) Health and Safety (10% of Target Incentive), and d) Compliance (10% of Target Incentive).  Plan Objectives are independent and mutually exclusive from each other, so that the applicable percentage of the Target Incentive may be earned if one Plan Objective is met, even if the threshold performance is not met for another Plan Objective. 
		

		
			 
		

			
	
			
				 a.
			

			
	
			
			Financial – The Financial Plan Objective is based on the Plan Year’s actual consolidated operating income before Plan expenses (“Operating Income Target”). The Operating Income Target amount is set and approved by the Administrator.  Achievement will be determined by comparing the Plan Year’s actual financial results (based on audited financial information) to the Operating Income Target.  Achievement of the Operating Income Target will be weighted at 50%. 

		
			 
		

		
			The Administrator, in its sole discretion, may include or exclude certain non-recurring or special transactions from calculated operating income for purposes of determining the amount of an award under the Plan. 
		

		
			 
		

		
			The portion of a Participant’s Target Incentive he or she may receive based on operating income results (“Finance Target Incentive”) is scalable. For every percentage point achievement over 79% of the Operating Income Target, up to and including 99% (rounded to the nearest percentage), a Participant shall earn 4.76% of the Finance Target Incentive.  Upon 100% achievement of the Operating Income Target, 100% of the Finance Target Incentive shall be available to a Participant.  
		

		
			 
		

		
			If the Operating Income Target is exceeded, a Participant shall be eligible for an additional amount, calculated by multiplying the Participant’s annual salary by 4.5% (“Excess Percentage”) for every 1%, or fraction thereof, over the Operating Income Target and the resulting product by the Operating Income Target weight (“Additional Finance Incentive”). The Additional Finance Incentive is capped at one times the Participant’s Target Incentive.    
		

		
			 
		

		
			By way of example only, a Participant with an annual base salary of $300,000 who has a Target Incentive of 40% would receive the following amounts based on various levels of achievement. 
		

		
			        EXAMPLE
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						CONSOLIDATED OPERATING INCOME TARGET

				
	
					
						(WEIGHTED 50% OF TARGET INCENTIVE)

				
	
					
						Achievement

					
					
						% of Award

					
					
						Cumulative

					
					
						Payout

					
					
						Achievement

					
					
						% of Award

					
					
						Cumulative

					
					
						Payout

				
	
					
						79%

					
					
						0%

					
					
						0%

					
					
						$0 

					
					
						90%

					
					
						4.76%

					
					
						52.38%

					
					
						$31,429 

				
	
					
						80%

					
					
						4.76%

					
					
						4.76%

					
					
						$2,857 

					
					
						91%

					
					
						4.76%

					
					
						57.14%

					
					
						$34,286 

				
	
					
						81%

					
					
						4.76%

					
					
						9.52%

					
					
						$5,714 

					
					
						92%

					
					
						4.76%

					
					
						61.90%

					
					
						$37,143 

				
	
					
						82%

					
					
						4.76%

					
					
						14.29%

					
					
						$8,571 

					
					
						93%

					
					
						4.76%

					
					
						66.67%

					
					
						$40,000 

				
	
					
						83%

					
					
						4.76%

					
					
						19.05%

					
					
						$11,429 

					
					
						94%

					
					
						4.76%

					
					
						71.43%

					
					
						$42,857 

				
	
					
						84%

					
					
						4.76%

					
					
						23.81%

					
					
						$14,286 

					
					
						95%

					
					
						4.76%

					
					
						76.19%

					
					
						$45,714 

				
	
					
						85%

					
					
						4.76%

					
					
						28.57%

					
					
						$17,143 

					
					
						96%

					
					
						4.76%

					
					
						80.95%

					
					
						$48,571 

				
	
					
						86%

					
					
						4.76%

					
					
						33.33%

					
					
						$20,000 

					
					
						97%

					
					
						4.76%

					
					
						85.71%

					
					
						$51,429 

				
	
					
						87%

					
					
						4.76%

					
					
						38.10%

					
					
						$22,857 

					
					
						98%

					
					
						4.76%

					
					
						90.48%

					
					
						$54,286 

				
	
					
						88%

					
					
						4.76%

					
					
						42.86%

					
					
						$25,714 

					
					
						99%

					
					
						4.76%

					
					
						95.24%

					
					
						$57,143 

				
	
					
						89%

					
					
						4.76%

					
					
						47.62%

					
					
						$28,571 

					
					
						100%

					
					
						4.76%

					
					
						100.00%

					
					
						$60,000 

				

		
			 
		

		
			

		 

		

			 

		

		

			3

		

		

			 

		

 

		

		
			Assuming 95% achievement of the Operating Income Target, the Participant in this example would be entitled to $45,714, calculated as follows:
		

		
			 
		

			
					
						 

					
					
						 

					
						 

				
	
					
						 

					
					
						OPERATING INCOME

					
						TARGET

				
	
					
						Annual Salary

					$
300,000
				
	
					
						Target Incentive

					
					
						X 40%

				
	
					
						Target Incentive Award

					$
120,000
				
	
					
						Financial Objective Weight

					
					
						X 50%

				
	
					
						Weighted Target Incentive Award

					$
60,000
				
	
					
						Cumulative Award Percent Earned

					
					
						X 76.19%

				
	
					
						Earned Award

					$
45,714
				

		
			 
		

		
			Assuming instead a 105% achievement of the Operating Income Target, the Participant would be entitled to $93,750, calculated as follows: 
		

		
			   
		

			
					
						 

					
					
						 

					
						 

				
	
					
						 

					
					
						OPERATING INCOME

					
						TARGET

				
	
					
						Annual Salary

					$
300,000
				
	
					
						Target Incentive

					
					
						X 40%

				
	
					
						Target Incentive Award

					$
120,000
				
	
					
						Financial Objective Weight

					
					
						X 50%

				
	
					
						Weighted Target Incentive Award

					$
60,000
				
	
					
						Cumulative Award Percent Earned

					
					
						X 100%

				
	
					
						Earned Award

					$
60,000
				

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						ADDITIONAL FINANCE INCENTIVE

				
	
					
						Annual Salary

					$
300,000
				
	
					
						Cumulative Excess Percentage (5 X 4.5%)

					
					
						X 22.5%

				
	
					
						Additional Finance Incentive Award

					$
67,500
				
	
					
						Financial Objective Weight

					
					
						X 50%

				
	
					
						Weighted Additional Finance Incentive Award

					$
33,750
				
	
					
						 

					
					
						 

				
	
					
						Finance Target Incentive

					$
60,000
				
	
					
						Additional Finance Incentive

					$
33,750
				
	
					
						Earned Award

					$
93,750
				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			4

		

		

			 

		

 

		

		
			Assuming instead a 130% achievement of the Operating Income Target, the Participant would be entitled to an Additional Finance Incentive of $120,000 and a total earned amount of $180,000, calculated as follows:
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						ADDITIONAL FINANCE INCENTIVE

				
	
					
						Annual Salary

					$
300,000
				
	
					
						Cumulative Excess Percentage (30 X 4.5%)

					
					
						X 135%

				
	
					
						Additional Finance Incentive Award

					$
405,000
				
	
					
						Financial Objective Weight

					
					
						X 50%

				
	
					
						Weighted Additional Finance Incentive Award (Before Cap)

					$
202,500
				
	
					
						Additional Finance Incentive Award Cap (.40 x $300,000)

					
					
						  ($120,000)

				
	
					
						Excess Additional Finance Incentive Award Disallowed

					$
82,500
				
	
					
						 

					
					
						 

				
	
					
						Finance Target Incentive

					$
60,000
				
	
					
						Additional Finance Incentive

					$
120,000
				
	
					
						Earned Award

					$
180,000
				

		
			 
		

			
	
			
				 b.
			

			
	
			
			Individual Performance - Up to an additional 30% of a Participant’s Target Incentive shall be awarded, at the sole discretion of the Administrator (“Individual Performance Incentive”) based on 1) achieving established objectives that align with the Company’s strategic priorities, 2) overall individual performance level, and 3) how the participant leads including living our shared values and promoting the Humble, Hungry and Smart virtues.  This metric is independent so that a percentage of the Individual Performance Incentive may be earned independent and mutually exclusive of achievement of any other Plan Objective. 

		
			 
		

			
	
			
				 c.
			

			
	
			
			Health and Safety - The metrics for this Plan Objective are identified below and are weighted cumulatively at 10% of a Participant’s Target Incentive.  Each metric is independent and mutually exclusive from the other metrics so that a percentage of the Target Incentive related to Health and Safety may be earned independent of achievement of any other Health and Safety metric or other Plan Objective.

		
			 
		

			
	
			
				i.
			

			
	
			
			Total Recordable Incident Rate (“TRIR”) (2% Weight) – The Target Incentive related to TRIR shall be earned if the Company-wide metric, as set and approved by the Administrator, is achieved as determined by the Administrator. 

		
			 
		

			
	
			
				ii.
			

			
	
			
			Days Away Restricted Time (“DART”) (3% Weight) – The Target Incentive related to DART shall be earned if the Company-wide metric, as set and approved by the Administrator, is achieved as determined by the Administrator.

		
			 
		

			
	
			
				iii.
			

			
	
			
			Lost Time Incident (“LTI”) (5% Weight) –  The Target Incentive related to LTI shall be earned if the Company-wide metric, as set and approved by the Administrator, is achieved as determined by the Administrator. 

		
			 
		

			
	
			
				 d.
			

			
	
			
			Compliance – The metric for this Plan Objective is the Company’s avoidance of Notices of Violation or Enforcement with monetary penalties during the Plan Year and is weighted at 10% of a Participant’s Target Incentive.  The Target Incentive related to Compliance (“Compliance Target Incentive”) shall be 

		 

		

			 

		

		

			5

		

		

			 

		

 

	earned based on a determination by the Administrator, taking into consideration, among other things, the dollar amount of a monetary penalty paid (or accrued under generally accepted accounting principles – “GAAP”) in the Plan Year, severity of the Notices of Violation or Enforcement, regulatory basis for penalty and respective fact patterns.  This metric is independent so that a percentage of the Compliance Target Incentive may be earned independent and mutually exclusive of achievement of any other Plan Objective. 

		
			 
		

		
			The CEO will include in each Participant Letter the applicable Target Incentive, Plan Objectives, metrics, weights and such other information as may be determined.
		

		
			 
		

			
	
			
				VI.
			

			
	
			
			MISCELLANEOUS

		
			 
		

			
	
			
				 a.
			

			
	
			
			Interests Not Transferable – Any interest of a Participant under the Plan may not be voluntarily sold, transferred, alienated, assigned or encumbered, other than by will or pursuant to the laws of descent and distribution.  Notwithstanding the foregoing, if a Participant dies during the Plan Year, or after the Plan Year and prior to payment of an award, then a pro-rata portion of the award to which the Participant would have been eligible absent death shall be paid to the deceased’s beneficiary, as designated in writing by such Participant (attached hereto as Exhibit A); provided however, that if the deceased Participant has not designated a beneficiary then such amount shall be payable to the deceased Participant’s estate.  Payment shall be based on the number of calendar days the Participant was employed in an eligible position during the Plan Year and shall be made at the time other Participants are paid. The requirement that the Participant be an employee on that date of payment shall be waived.

		
			 
		

			
	
			
				 b.
			

			
	
			
			Withholding Taxes – The Company shall withhold from any amounts payable under the Plan applicable withholding including, but not limited to, federal, state, city and local taxes, FICA and Medicare as shall be legally required.  Additionally, the Company will withhold from any amounts payable under the Plan the applicable contribution for the Participant’s 401(k) Savings and Retirement Plan as defined in the US Ecology, Inc. 401(K) Plan description protected under ERISA. 

		
			 
		

			
	
			
				 c.
			

			
	
			
			No Right of Employment – Nothing in this Plan will be construed as creating any contract of employment or conferring upon any Participant any right to continue in the employ or other service of the Company or limit in any way the right of Company to change such person’s compensation or other benefits or to terminate the employment or other service of such person with or without Cause. 

		
			 
		

			
	
			
				 d.
			

			
	
			
			No Representations – The Company does not represent or guarantee that any particular federal or state income, payroll, personal property or other tax consequence will result from participation in the Plan. 

		
			 
		

			
	
			
				 e.
			

			
	
			
			Section Headings – The section headings contained herein are for convenience only and, in the event of any conflict, the text of the Plan, rather than the section headings, will control.

		
			 
		

			
	
			
				 f.
			

			
	
			
			Severability – In the event any provision of the Plan shall be held to be illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts of the Plan and the Plan shall be construed and enforced as if such illegal or invalid provisions had never been contained in the Plan.

		
			 
		

			
	
			
				 g.
			

			
	
			
			Invalidity – If any term or provision contained herein is to any extent invalid or unenforceable, such term or provision shall be reformed so that it is valid, and such invalidity or unenforceability  shall not affect any other provision or part hereof.

		
			

		 

		

			 

		

		

			6

		

		

			 

		

 

		

		
			 
		

			
	
			
				 h.
			

			
	
			
			Amendment, Modification or Termination – The Administrator reserves the right to unilaterally amend, modify or terminate the Plan at any time as it deems necessary or advisable. 

		
			 
		

			
	
			
				 i.
			

			
	
			
			Applicable Law – Except to the extent superseded by the laws of the United States, the laws of the State of Idaho, without regard to its conflicts of laws principles, shall govern in all matters relating to the Plan.  

		
			 
		

			
	
			
				 j.
			

			
	
			
			Effect on Other Plans – Payments or benefits provided to a Participant under any stock, deferred compensation, savings, retirements or other employee benefit plan are governed solely by the terms of each of such plans.

		
			 
		

			
	
			
				 k.
			

			
	
			
			Effective Date – The Plan is effective as of January 1, 2018.

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			7

		

		

			 

		

 

		

			 

		

		

		
			EXHIBIT A
		

		
			BENEFICIARY DESIGNATION
		

		
			I hereby designate the following person or persons as Beneficiary to receive any management incentive payments due under the attached US Ecology, Inc. 2018 Management Incentive Plan (Executive), effective January 1, 2018, in the event of my death, reserving the full right to revoke or modify this designation, or any modification thereof, at any time by a further written designation:
		

		
			Primary Beneficiary
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						    

					
					
						 

					
					
						    

					
					
						 

				
	
					
						Name of Individual

					
					
						 

					
					
						Relationship to me

					
					
						 

					
					
						Birth Date (if minor)

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Address

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Name of Trust

					
					
						 

					
					
						Date of Trust

					
					
						 

					
					
						 

				

		
			 
		

		
			Provided, however, that if such Primary Beneficiary shall not survive me by at least sixty (60) days, the following shall be the Beneficiary:
		

		
			 
		

		
			Contingent Beneficiary
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						    

					
					
						 

					
					
						    

					
					
						 

				
	
					
						Name of Individual

					
					
						 

					
					
						Relationship to me

					
					
						 

					
					
						Birth Date (if minor)

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Address

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Name of Trust

					
					
						 

					
					
						Date of Trust

					
					
						 

					
					
						 

				

		
			 
		

		
			This Beneficiary Designation shall not affect any other beneficiary designation form that I may have on file with US Ecology, Inc. regarding benefits other than that referred to above.
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Date

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Name

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Signature

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