Document:

Exhibit 10.01

 

UNITED ONLINE, INC.

2005
MANAGEMENT BONUS PLAN

 

 

               I.               PURPOSES OF THE PLAN

 

                                1.01                         The
United Online, Inc. (“Company”) 2005 Management Bonus Plan (“Plan”) is
established to promote the interests of the Company by creating an incentive
program to (i) attract and retain employees who will strive for excellence, and
(ii) motivate those individuals to set and achieve above-average
objectives by providing them with rewards for contributions to the financial
performance of the Company.

 

             II.               ADMINISTRATION OF THE PLAN

 

                                2.01                         The
Plan is hereby adopted by the Company’s Compensation Committee of the Board of
Directors (the “Committee”), and shall be administered by the Committee
pursuant to the powers provided to the Committee by the Board of Directors of
the Company.

                                2.02                         The
interpretation and construction of the Plan and the adoption of rules and
regulations for administering the Plan shall be made by the Committee.  Decisions of the Committee shall be final and
binding on all parties who have an interest in the Plan.

 

            III.               DETERMINATION OF PARTICIPANTS

 

                                3.01                         The
following individuals will participate in the Plan:  Mark R. Goldston, Charles S. Hilliard,
Frederic A. Randall, Jr., Gerald J. Popek, Jon O. Fetveit and Robert J.
Taragan.  An individual shall be eligible
to participate in the Plan if employed by the Company or any of its
participating subsidiaries on the earlier of March 1, 2006 or the date on which
bonuses under this Plan are distributed. 
If an individual is not employed by the Company or a participating
subsidiary on such date, he will not eligible to receive a bonus under the
Plan.  However, an individual who is on a
leave of absence or whose employment terminates and is then re-hired in
the same fiscal year may remain eligible at the discretion of the Committee,
and the Committee may provide a pro rata bonus. 
In the event of termination of an individual’s employment as a result of
death or disability, the Committee shall provide the individual or the
individual’s estate with a pro rata bonus.

 

                                3.02                         For purposes of the
Plan:

 

                                                                A.            An individual shall be considered an
employee for so long as such individual remains employed by the Company or one
or more subsidiary corporations.

 

                                                                B.            Each corporation (other than the
Company) in an unbroken chain of corporations beginning with the Company shall
be considered to be a subsidiary of the Company, provided each such corporation
(other than the last corporation in the unbroken chain)

 

 

owns, at the time of determination, stock possessing
more than fifty percent of the total combined voting power of all classes of
stock in one of the other corporations in such chain.

 

            IV.               BONUS AWARDS

 

                                4.01                         No
eligible employee shall earn any portion of a bonus award made hereunder for
any fiscal year until December 31, 2005.

 

                                4.02                         The
individual bonus awards payable to the participants in the Plan for the 2005
Year shall be based upon the Company’s success in achieving specified ADJUSTED
OIBDA targets (that is, targets tied to the Company’s operating income before
depreciation and amortization expenses and certain other expenses) determined
by the Committee for that fiscal year (“ADJUSTED OIBDA Targets”).  In determining whether the Company has
achieved the ADJUSTED OIBDA Targets, ADJUSTED OIBDA will be determined
consistent with the Company’s historical methodology for calculating ADJUSTED
OIBDA for financial reporting purposes; provided, however, (1) ADJUSTED OIBDA
shall be calculated before restructuring expenses, merger related expenses, stock
based compensation expenses and other expenses associated with the relocation
of the Company’s headquarters, (2) in determining whether the Company has
achieved an ADJUSTED OIBDA Target, any bonus amounts which accrue under this
Plan at that particular Target level shall not be included as an expense in
computing  ADJUSTED OIBDA, (3) any
adjustments to ADJUSTED OIBDA attributable to a change in accounting principles
shall be excluded and (4) all items of gain, loss or expense for such fiscal
year determined to be extraordinary or unusual in nature or infrequent in
occurrence, or related to the disposal of a segment of a business, shall be
excluded from ADJUSTED OIBDA.  In the
event the Company acquires other companies or businesses during the 2005 fiscal
year, the Committee shall use its discretion to determine the impact, if any,
such acquisitions should have on the ADJUSTED OIBDA Targets.  While the bonuses shall be granted if the
Company achieves the ADJUSTED OIBDA Targets, the Committee may use its discretion
to award bonuses based on criteria other than the ADJUSTED OIBDA Targets if the
Committee determines it to be appropriate based on executive performance and
other facts and circumstances, with the goal being to reward performance based
upon the Company’s objectives.

 

                                4.03                         The
bonuses for shall be based on a percentage of each individual’s base salary for
fiscal 2005.  For Mark Goldston, he will
receive a bonus equal to 35%, 50%, 60%, 70%, 80%, 90%, 100%, 110%, 120% or 125%
of base if the Company achieves specified ADJUSTED OIBDA Targets as determined
by the Committee.  For the other eligible
participants, each will receive 25%, 40%, 50%, 60%, 70%, 80%, 90% or 100% of
his base if the Company achieves specified ADJUSTED OIBDA Targets as determined
by the Committee.  In the event the
Company achieves ADJUSTED OIBDA that is in between specified ADJUSTED OIBDA
Targets, the Committee may use its discretion to provide an individual an
additional bonus, pro rata or otherwise, based on the Company’s achievement.

 

                                4.04                         Following
completion of the bonus calculation referenced above, the Committee shall issue
a written report containing the final calculation.

 

2

 

             V.               PAYMENT OF BONUS AWARDS

 

                                5.01                         Bonuses shall be paid
no later than March 1, 2006.  All
payments under the Plan shall be subject to the Company’s collection of all
applicable federal, state and local income and employment withholding taxes.

 

            VI.               GENERAL PROVISIONS

 

                                6.01                         The
Plan shall become effective when adopted by the Compensation Committee.  The Committee may at any time amend, suspend
or terminate the Plan, provided such action is effected by written resolution
and does not adversely affect rights and interests of Plan participants.

                                6.02                         No
amounts awarded or accrued under this Plan shall actually be funded, set aside
or otherwise segregated prior to payment. 
The obligation to pay the bonuses awarded hereunder shall at all times
be an unfunded and unsecured obligation of the Company.  Plan participants shall have the status of
general creditors and shall look solely to the general assets of the Company
for the payment of their bonus awards.

 

                                6.03                         No
Plan participant shall have the right to alienate, pledge or encumber his/her
interest in this Plan, and such interest shall not (to the extent permitted by
law) be subject in any way to the claims of the employee’s creditors or to
attachment, execution or other process of law.

 

                                6.04                         Neither
the action of the Company in establishing the Plan, nor any action taken under
the Plan by the Committee, nor any provision of the Plan, shall be construed so
as to grant any person the right to remain in the employ of the Company or its
subsidiaries for any period of specific duration.  Rather, each employee will be employed “at-will,”
which means that either such employee or the Company may terminate the
employment relationship at any time for any reason, with or without cause,
subject in each case to any employment agreement between such person and the
Company.

 

                                6.05                         This
is the full and complete agreement between the eligible employees and the
Company with respect to incentive bonus compensation for the 2005 fiscal year.
This Plan does not supersede, but is supplemental to, any provisions of any
employment agreement to which any of the employees eligible under this Plan may
be party.  With respect to references to
Annual Bonuses in the Employment Agreements for Messrs. Goldston, Hilliard and
Randall, for the purposes of such Agreements the references to Annual Bonuses
shall be deemed (A) for the purposes of Involuntary Termination, the
greater of (i) 100% with respect to Mr. Goldston and 75% with respect to the
other participants, of their then current salary or (ii) the bonus received in
the preceding year and (B) for the purposes of termination without cause, 100%
of then current salary for Mr. Goldston and 75% of then current salary for the
other participants.

 

3EXHIBIT 4.7

 

Statement
of Resolution Regarding

Series of
Preferred Stock

of

TGC
Industries, Inc.

 

Pursuant
to the provisions of Article 2.13 of the Texas Business Corporation Act,
and the Articles of Incorporation, as amended, of the undersigned Corporation,
the Corporation submits the following with respect to its Statement of
Resolution Establishing its Series C 8% Convertible Exchangeable Preferred
Stock for the purpose of modifying certain terms of the Series C Preferred
Stock, which Statement of Resolution was originally filed with the Secretary of
State of Texas on July 9, 1996, and was modified by Statements of
Resolution filed with the Secretary of State of Texas on July 22, 1998, December 9,
1998, December 30, 1998, July 2, 1999, December 4, 2001, and December 11,
2002.

 

1.                                       The
name of the Corporation is TGC Industries, Inc.; and

 

2.                                       A
resolution adopting the Statement of Resolution Regarding Series C 8%
Convertible Exchangeable Preferred Stock is attached as Exhibit “A” hereto and
incorporated herein by reference.  Such
resolution was duly adopted by all necessary action on the part of the
Corporation at a Special Meeting of the Board of Directors of the Corporation
held on September 24, 2004.

 

	
  Dated September 29,
  2004.

  	
   

  
	
   

  	
   

  
	
   

  	
  TGC INDUSTRIES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Rice M. Tilley,
  Jr.

  	
   

  
	
   

  	
   

  	
   

  	
  Rice M. Tilley,
  Jr.,

  
	
   

  	
   

  	
   

  	
  Assistant
  Secretary

  

 

 

EXHIBIT “A”

 

AMENDMENT TO

STATEMENT OF RESOLUTION REGARDING

SERIES C 8% CONVERTIBLE EXCHANGEABLE PREFERRED STOCK

of

TGC INDUSTRIES, INC.

 

RESOLVED,
that pursuant to the authority vested in the Board of Directors of the
Corporation by Article 4.b of the Corporation’s Restated Articles of
Incorporation, as amended, the Corporation hereby approves an amendment to its
Statement of Resolution Establishing Series C 8% Convertible Exchangeable
Preferred Stock (the “Preferred Stock”), which Statement of Resolution was
originally filed with the Secretary of State of Texas on July 9, 1996, and
was amended by Statements of Resolution filed with the Secretary of State of
Texas on July 22, 1998, December 9, 1998, December 30, 1998, July 2,
1999, December 4, 2001, and December 11, 2002, by adopting the
following amendment to subparagraph 3.(d) thereof to reduce the conversion
price per share of Common Stock for a period of time beginning on September 24,
2004, and ending on January 31, 2005, so that such subparagraph 3.(d) of
such Statement of Resolution shall read in its entirety as set forth
below.  Except as amended as set forth
below (and except as amended by the amendment dated December 3, 2002), the
Statement of Resolution Establishing Series C 8% Convertible Exchangeable
Preferred Stock as filed with the Secretary of State on July 9, 1996,
shall remain in full force and effect.

 

“(d)                           Conversion Ratio.  Each share of Preferred Stock may, at the
discretion of the holder thereof, be converted into shares of Common Stock of
the Corporation at the conversion price per share as follows:  (i) during the period beginning on September 24,
2004, and ending at the close of business on January 31, 2005, at the
conversion price per share of Common Stock of Two Dollars ($2.00); and (ii)
thereafter, the conversion price per share of Common Stock of Six Dollars
($6.00), as such conversion price may be adjusted and readjusted from time to
time in accordance with subparagraph 3.(g) hereof (such conversion price, as
adjusted and readjusted and in effect at any time, being herein called the “Conversion
Price” or the “Conversion Ratio”), into the number of fully paid and
non-assessable shares of Common Stock determined by dividing (x) the $5.00 per
share price of the Preferred Stock to be so converted by (y) the Conversion
Price in effect at the time of such conversion. 
The Conversion Ratios referred to above will be subject to adjustment as
set forth in subparagraph 3.(g).”

 

[END]

 

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