Document:

EX-10.1

 Exhibit 10.1 

Execution Version 
 CONSENT,
AGREEMENT AND OMNIBUS AMENDMENTS 
 THIS CONSENT, AGREEMENT AND OMNIBUS AMENDMENTS (this “Agreement”) is entered
into on February 7, 2020, among Falcon Global USA LLC (“Borrower”), the other Loan Parties, SEACOR, JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, “Agent”) for the Lenders
and the Lenders party hereto. Capitalized terms used but not defined in this Agreement have the meaning given them in the Credit Agreement (defined below). 

RECITALS 

A.    Borrower, the other Loan Parties, Agent, and the Lenders are party to that certain Credit Agreement, dated as of
February 8, 2018 (as amended from time to time, the “Credit Agreement”). 
 B.     SEACOR
and the Agent are party to that certain Obligation Guaranty dated as of February 8, 2018 (as amended from time to time, the “Obligation Guaranty”). 

C.    The Borrower and the Lenders have agreed to modify the repayment terms under the Credit Agreement to provide that
the date upon which the obligation to commence principal payments thereunder be delayed by one calendar year, on the condition that the “Obligation Termination Date”, as such term is defined in the Obligation Guaranty, be extended by the
same temporal period, and SEACOR and the Agent have agreed to such modification of the Obligation Guaranty, all subject to conditions and in consideration for the agreements set forth herein. 

D.    Section 5.01(d) of the Credit Agreement requires that the Borrower furnish to the Administrative Agent, within 30
days preceding April 30, 2019, Appraisals and survey reports based on complete physical inspections (a “Physical Appraisal”) regarding, among other Vessels, the LB Robert. 

E.    The Required Lenders previously consented that the Physical Appraisal regarding the LB Robert not be furnished
within 30 days preceding April 30, 2019, as otherwise required pursuant to Section 5.01(d) of the Credit Agreement. 

F.    Borrower has informed the Lenders that the LB Robert remains away from port, that it would be logistically
challenging to complete a physical inspections of the LB Robert, and requests that the Lenders agree to postpone the date on which such Physical Appraisals are required. 

NOW THEREFORE, in consideration of the mutual covenants, terms and conditions set forth herein, and for other good and valuable consideration,
the receipt and sufficiency of which are acknowledged, the undersigned hereby agree as follows: 

 1.    Amendments. Upon the occurrence of the Effective Date: 

(a)    Each of the Borrower, the Loan Parties, the Lenders, the Agent, the Issuing Bank and the Security
Trustee hereby agrees that the Credit Agreement shall be, and shall be deemed to be, amended pursuant to Section 9.02 of the Credit Agreement, without any further action by any parties as follows: 

(1)    The definition of Applicable Rate provided in Section 1.01 of the Credit Agreement is hereby
amended by deleting therefrom the text “2020” and inserting in its place the text “2021”. 

(2)    Section 2.08(b) of the Credit Agreement is hereby amended and restated as follows: 

“(b) Commencing on the last Business Day of March, 2021, Borrower hereby unconditionally promises, on the last Business
Day of each month, to repay to the Administrative Agent for the account of each Term Lender Term Loans in a principal amount equal to the lesser of (a) $806,245.04 and (b) the aggregate amount of Term Loans then outstanding.” 

(3)    Section 6.12(c) of the Credit Agreement is hereby amended by deleting therefrom the text “the
date of expiration of the Obligation Guaranty” and inserting in its place the text “the Obligation Termination Date (as defined in the Obligation Guaranty)”. 

(4)    Section 9.01(a)(ii) of the Credit Agreement is hereby amended by restating the address for notices
set forth therein as follows: 
 “JPMorgan Chase Bank, N.A. 

611 Woodward Ave, Floor 02 

Mail Code MI1-8095 

Detroit, MI 48226 
 Attention:
Mr. William Canney Jr. 
 Telephone: (313) 256-0517 

Fax: (313) 256-0355” 

(5)    Section 9.04(b)(i)(A) of the Credit Agreement is hereby amended and restated as follows: 

“(A)    [Reserved];” 

(6)    Section 9.04(b)(ii)(A) is hereby amended and restated as follows: 

“(A)    except in the case of an assignment to a Lender, an Affiliate of a Lender, or an Approved
Fund, or an assignment of the entire remaining amount of the assigning Lender’s Commitment or Loans of any Class, the amount of the Commitment or Loans of the assigning Lender subject to each such assignment (determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000 unless the Administrative Agent otherwise consents;” 

  
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 (7) The definition of Ineligible Institution in Section 9.04(b)(ii) is
hereby amended and restated as follows: 
 ““Ineligible Institution” means (a) with respect to
assignments of any rights, obligations, Loans or participations hereunder, (i) a Defaulting Lender, an Affiliate of a Defaulting Lender or any entity or an Affiliate of an entity that administers or manages a Defaulting Lender, (ii) a Loan
Party or a Subsidiary or other Affiliate of a Loan Party, or (iii) a competitor of the Borrower or SEACOR, including but not limited to any natural person who is employed by, or is an equity holder in, officer or director of such competitor of
Borrower or SEACOR, and (b) with respect to any assignments of any rights, obligations, Loans or participations hereunder that are assignments of Revolving Loans, Revolving Commitments or interests or obligations in respect of Letters of
Credit, in addition to the parties identified in sub-section (a) of this definition, (i) a natural person, or (ii) a company, investment vehicle or trust for, or owned and operated for the
primary benefit of, a natural person or relative(s) thereof; provided that, such company, investment vehicle or trust shall not constitute an Ineligible Institution if it (1) has not been established for the primary purpose of acquiring
any Loans or Commitments, (2) is managed by a professional advisor, who is not such natural person or a relative thereof, having significant experience in the business of making or purchasing commercial loans, and (3) has assets greater
than $25,000,000 and a significant part of its activities consist of making or purchasing commercial loans and similar extensions of credit in the ordinary course of its business; provided that upon the occurrence of an Event of Default, any Person
(other than a Lender) shall be an Ineligible Institution if after giving effect to any proposed assignment to such Person, such Person would hold more than 25% of the then outstanding Aggregate Credit Exposure or Commitments, as the case may
be.” 
 (8) Immediately preceding Section 9.04(b)(iii) there is inserted a new subsection (iii) as follows,
and the remaining subsections of Section 9.04(b) are renumbered accordingly: 
 “(iii) Upon delivery to the
Administrative Agent of a duly completed Assignment and Assumption executed by an assigning Lender and a proposed assignee, the proposed assignee’s duly completed Administrative Questionnaire (unless the proposed assignee is already a Lender
hereunder), and the processing and recordation fee referred to in paragraph (ii) of this Section 9.04(b), the Administrative Agent shall have five (5) Business Days to provide its written objection to the proposed assignment of a
Lender’s rights or obligations hereunder, provided that if the Administrative Agent fails to provide such written objection prior to the expiration of five (5) Business Days, the Administrative Agent shall be deemed to have consented to
such assignment. Upon request, the Administrative Agent will timely provide by telephone any reasons for objecting to a proposed assignment of a Lender’s rights or obligations hereunder.” 

  
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 (b)    Each of SEACOR, the Lenders, the Agent, the
Issuing Bank and the Security Trustee hereby agrees that the Obligation Guaranty shall be, and shall be deemed to be, amended pursuant to Section 22.1 of the Obligation Guaranty, without any further action by any parties as follows: 

(1)    Section 1 of the Obligation Guaranty is hereby amended and restated as follows: 

“1.    Guarantee Of Secured Obligations. Guarantor hereby absolutely and unconditionally agrees to, and by
these presents does hereby, guarantee the prompt and punctual payment, performance and satisfaction of the following (collectively, the “Secured Obligations”): (i) all interest accruing on the Loans from the Effective Date through
the third anniversary of the Effective Date (the “Obligation Termination Date”) pursuant to the terms of the Credit Agreement, including without limitation all interest pursuant to Section 2.11(c) of the Credit Agreement, and
(ii) all participation fees accruing pursuant to 2.10(b) of the Credit Agreement from the Effective Date through the end of the Final Testing Period (as defined herein), including any of the foregoing incurred or accrued during the pendency of
any bankruptcy, insolvency, receivership or other similar proceeding, whether or not allowed or allowable in such proceeding, whether liquidated or unliquidated and whether now existing or hereafter arising from the Effective Date through the
Obligation Termination Date. 
 Guarantor acknowledges that the Agent shall be entitled, in its sole and absolute discretion, to determine:
(i) the order in which the Agent will seek to collect the liabilities of the Borrower and Loan Parties under the Credit Agreement and the other Loan Documents, and (ii) the manner in which Lender will seek to collect such liabilities,
including, without limitation, whether by seeking to realize on any collateral security now or hereafter granted to the Agent by the Loan Parties, by the enforcement of the liabilities against the Borrower or such other Loan Parties, by enforcement
of any other guaranty by any other Person of the Obligations or the Secured Obligations, or by a combination of such methods.”     

(2)    Section 2 of the Obligation Guaranty is hereby amended and restated as follows: 

“2.    Cash Flow Shortfall. If, for the period from the Effective Date to December 31, 2018 (the
“Interim Testing Period”), there is a Cash Flow Shortfall (as defined below), Guarantor shall, on or before forty-five (45) days following the end of the Interim Testing Period, promptly deposit, into a blocked interest bearing
account (the “Blocked Account”) in the 

  
 4 

 
name of Guarantor subject to an account control agreement with the Agent, cash collateral securing this Obligation Guaranty in the amount of such Cash Flow Shortfall. Agent shall hold such cash
collateral securing this Obligation Guaranty until the determination of whether and how much of a capital contribution is due pursuant to the following sentence. If, for the period from the Effective Date to the third anniversary of the Effective
Date (the “Final Testing Period”), there is a Cash Flow Shortfall, Guarantor shall, on or before forty-five (45) days following the end of the Final Testing Period, make a cash capital contribution to the Borrower in at least
the amount of such Cash Flow Shortfall. Guarantor may use cash collateral deposited pursuant to this Section 2 only toward the satisfaction of its obligation to make a capital contribution pursuant to this Section 2. The Agent shall return
and/or release any remaining such cash collateral to Guarantor promptly following receipt of financial reporting reasonably satisfactory to the Agent demonstrating the amount of any such cash capital contribution obligation pursuant to this
Section 2 and the satisfaction of any such obligation. 
 For any period, a “Cash Flow Shortfall” is the amount by
which (a) interest expense exceeds (b) Adjusted EBITDA minus (i) Capital Expenditures, minus (ii) mandatory tax distributions minus (iii) principal payments on any indebtedness other than under the Loans.” 

(c)    SEACOR hereby consents to the amendment to the Credit Agreement contained herein. 

2.    Consent. The deadline for Borrower to furnish to the Administrative Agent the Physical Appraisal regarding
the LB Robert is extended to, through and including, April 30, 2020. 
 3.    Agreement. Borrower hereby
agrees to furnish to the Administrative Agent a Physical Appraisal regarding the LB Robert as soon as practical following its return to port following the date hereof, and in any event on or before April 30, 2020. 

4.    Effectiveness. This Agreement shall become effective on the date (the “Effective
Date”) on which (a) this Agreement shall have been executed by all parties hereto, and (b) Agent shall have received payment from Borrower of all fees and expenses (including legal fees and disbursements) incurred and not yet
reimbursed pursuant to Section 9.03 of the Credit Agreement. 
 5.     Representations and Warranties. Each
Loan Party and SEACOR represents and warrants to Agent and Lenders that (a) no consent of any Person (other than Agent) is required for this Agreement to be effective, (b) as of the Effective Date, the representations and warranties made
in each Loan Document to which it is a party are true and correct in all material respects on and as of the date of this Agreement as though made on the date of this Agreement, and (c) as of the Effective Date, it is in full compliance with all
covenants and agreements contained in each Loan Document to which it is a party. The representations and warranties 

  
 5 

 
made in this Agreement shall survive the execution, and delivery of this Agreement. No investigation by Agent or any Lender is required for Agent and Lenders to rely on the representations and
warranties in this Agreement. 
 6.    Scope of Waiver; Reaffirmations. Except as expressly provided herein, the
Loan Documents are unchanged and continue in full force and effect. However, in the event of any inconsistency between the terms of the Credit Agreement and any other Loan Document, the terms of the Credit Agreement shall control and such other
document shall he deemed to be amended to conform to the terms of the Credit Agreement. Each Loan Party hereby reaffirms its obligations under the Loan Documents to which it is a party and agrees that all Loan Documents to which it is a party remain
in full force and effect and continue to be the legal, valid, and binding obligations enforceable in accordance with their terms (as the same are expressly affected by this Agreement). The Loan Parties specifically reaffirm, confirm and acknowledge
the respective guaranties, mortgages, pledges, assignments and security agreements and all other Loan Documents by each of them in favor of or with the Lenders or the Agent. To the extent any of such agreements confer security for the Secured
Obligations, whether now existing or hereafter arising, such security is hereby reaffirmed, confirmed and acknowledged by each Loan Party, as applicable. 

7.    Waiver. TO INDUCE THE AGENT AND LENDERS TO AGREE TO THE TERMS OF THIS AGREEMENT, THE BORROWER AND THE
OTHER LOAN PARTIES (BY THEIR EXECUTION BELOW) REPRESENT AND WARRANT THAT AS OF THE DATE OF THE EXECUTION OF THIS AGREEMENT, TO THEIR KNOWLEDGE, THERE ARE NO CLAIMS OR OFFSETS AGAINST OR RIGHTS OF RECOUPMENT WITH RESPECT TO OR DEFENSES OR
COUNTERCLAIMS TO THEIR OBLIGATIONS UNDER THE LOAN DOCUMENTS AND IN ACCORDANCE THEREWITH, EACH OF THEM: 

(a)    WAIVES ANY AND ALL SUCH CLAIMS, OFFSETS, RIGHTS OF RECOUPMENT, DEFENSES OR COUNTERCLAIMS OF WHICH
THE BORROWER OR OTHER LOAN PARTIES HAVE KNOWLEDGE, ARISING PRIOR TO THE DATE HEREOF AND ONLY FROM OR IN CONNECTION WITH THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY; AND 

(b)    RELEASES AND DISCHARGES THE AGENT AND LENDERS AND THEIR OFFICERS, DIRECTORS, EMPLOYEES, AGENTS,
SHAREHOLDERS, AFFILIATES AND ATTORNEYS (COLLECTIVELY THE “RELEASED PARTIES”) FROM ANY AND ALL OBLIGATIONS, INDEBTEDNESS, LIABILITIES, CLAIMS, RIGHTS, CAUSES OF ACTION OR DEMANDS WHETHER IN LAW OR EQUITY, OF WHICH THE BORROWER OR THE OTHER
LOAN PARTIES HAVE KNOWLEDGE, ARISING PRIOR TO THE DATE HEREOF AND ONLY FROM OR IN CONNECTION WITH THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY. 

  
 6 

 AS USED IN THIS PROVISION, “KNOWLEDGE” MEANS ACTUAL KNOWLEDGE OR CONSTRUCTIVE KNOWLEDGE OF
WHICH A REASONABLE PERSON SHOULD HAVE KNOWN BASED ON THE INFORMATION AVAILABLE TO THE BORROWER OR THE OTHER LOAN PARTIES AS OF THE DATE OF ITS EXECUTION OF THIS AMENDMENT. 

8.    Miscellaneous. 

(a)    No Waiver of Defaults. Except as expressly provided for herein, this Agreement does not
constitute (i) a waiver of, consent to or waiver of rights or remedies in respect of any provision of the Credit Agreement or any other Loan Document not expressly waived by this Agreement, or (ii) a waiver of Agent’s or any
Lender’s right to insist upon future compliance with each term, covenant, condition and provision of the Loan Documents. 

(b)    Form. Each agreement, document, instrument or other writing to be furnished Agent under any
provision of this Agreement must be in form and substance satisfactory to Agent and its counsel. 

(c)    Headings. The headings and captions used in this Agreement are for convenience only and will
not be deemed to limit, amplify or modify the terms of this Agreement, the Credit Agreement, or the other Loan Documents. 

(d)    Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of each
of the undersigned and their respective successors and permitted assigns. 
 (e)    Multiple
Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all signatories had signed the same document. All counterparts must be construed together to constitute one and the same instrument. This
Agreement may be transmitted and signed by facsimile and portable document format (PDF). The effectiveness of any such documents and signatures shall, subject to applicable law, have the same force and effect as manually-signed originals and shall
be binding on each Loan Party, Agent and Lenders. Agent may also require that any such documents and signatures be confirmed by a manually-signed original; provided that the failure to request or deliver the same shall not limit the
effectiveness of any facsimile or PDF document or signature. 
 (f)    Governing Law. This
Agreement and the other Loan Documents must be construed, and their performance enforced, under the laws of the State of New York. 

(g)    Entirety. THIS AGREEMENT IS A
LOAN DOCUMENT. THE LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG EACH
LOAN PARTY, AGENT, AND LENDERS AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BY THE PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES. 

  
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 This Agreement is executed as of the date first written above. 

 

					
	 LOAN PARTIES:

		
	    	 	 FALCON GLOBAL USA LLC

			
		 	By:	 	 /s/ Jesús Llorca

		 		 	Name: Jesús Llorca
		 		 	Title: Vice President
		
		 	FALCON GLOBAL OFFSHORE LLC
			
		 	By:	 	 /s/ Jesús Llorca

		 		 	Name: Jesús Llorca
		 		 	Title: Vice President
		
		 	FALCON GLOBAL OFFSHORE II LLC
			
		 	By:	 	 /s/ Jesús Llorca

		 		 	Name: Jesús Llorca
		 		 	Title: Vice President
		
		 	FALCON GLOBAL JILL LLC
			
		 	By:	 	 /s/ Jesús Llorca

		 		 	Name: Jesús Llorca
		 		 	Title: Vice President
		
		 	FALCON GLOBAL ROBERT LLC
			
		 	By:	 	 /s/ Jesús Llorca

		 		 	Name: Jesús Llorca
		 		 	Title: Vice President
		
		 	FALCON GLOBAL LLC
			
		 	By:	 	 /s/ Jesús Llorca

		 		 	Name: Jesús Llorca
		 		 	Title: Vice President

 Omnibus Amendatory Agreement 

 
					
	 SEACOR:

		
	     
	 	 SEACOR MARINE HOLDINGS INC.

			
		 	 By:
	 	 /s/ Jesús Llorca

		 		 	 Name: Jesús Llorca

		 		 	 Title: Executive Vice President

 Omnibus Amendatory Agreement 

 
					
	 AGENT AND LENDER:

		
	    	 	JPMORGAN CHASE BANK, N.A., as Administrative Agent, Issuing Bank, Security Trustee, and a Lender
			
		 	By:	 	 /s/ William Canney

		 		 	Name: William Canney
		 		 	Title: Authorized Officer

 Omnibus Amendatory Agreement 

 
					
	 LENDERS:

		
	    	 	 REGIONS BANK

			
		 	 By:
	 	 /s/ William P. Carroll

		 		 	Name: William P. Carroll
		 		 	Title: SVP
		
		 	 WHITNEY BANK 

			
		 	 By:
	 	 /s/ Tommy D. Pitre

		 		 	Name: Tommy D. Pitre
		 		 	Title: Senior Vice President
		
		 	FIRST HORIZON BANK,
		 	 a Tennessee banking corporation, successor by conversion to First Tennessee Bank National Association, a national banking
association

			
		 	By:	 	 /s/ Jim Hennigan

		 		 	Name: Jim Hennigan
		 		 	Title: Senior Vice President
		
		 	 TRUSTMARK NATIONAL BANK

			
		 	By:	 	 /s/ Barry Harvey

		 		 	Name: Barry Harvey
		 		 	Title: CCO and EVP

 Omnibus Amendatory Agreementasmb-ex101_15.htm

 

Exhibit 10.1

 

ASSEMBLY BIOSCIENCES, INC.

2020 CORPORATE BONUS PLAN

 

Overview

 

The 2020 Corporate Bonus Plan (the “Plan”) of Assembly Biosciences, Inc. (the “Company”) is, upon approval by the Compensation Committee (the “Committee”) of the Board of Directors of the Company (the “Board”), effective as of January 1, 2020 (the “Effective Date”). The Plan is designed to motivate, retain, attract and reward Company employees through a combination of corporate and individual performance-based incentive compensation components from the Effective Date through December 31, 2020 (the “Performance Period”). Individuals employed by the Company during the Performance Period, who commence employment with the Company no later than October 31st of the Performance Period, and who are designated for participation by the Committee or the Chief Executive Officer of the Company (the “CEO”) and who remain employed by the Company through the Payment Date (as defined below) (each a “Participant”) shall be eligible to earn a cash bonus under the Plan. Any and all payments under this Plan will be subject to the business and financial condition of the Company. Any decisions made in good faith by the Committee or its delegate shall be final and binding on all Participants.

 

Administration

The Plan is administered by the Committee.  The Committee shall have full power and authority to administer and interpret the Plan, including, without limitation, the power to: (a) prescribe, amend, and rescind rules and procedures relating to the Plan and to define terms not otherwise defined herein; (b) certify the level at which those Corporate Objectives (as defined below) approved by the Board (after review and advice by the Committee) are attained for such Performance Period, including in excess of 100%; (c) determine which employees qualify as Participants (as herein defined) in the Plan and which Participants shall be paid cash bonuses under the Plan; (d) determine whether, to what extent, and under what circumstances cash bonuses awarded under the Plan may be forfeited or suspended; (e) correct any defect, supply any omission, or reconcile any inconsistency in the Plan or any cash bonus awarded under the Plan in the manner and to the extent that the Committee shall determine appropriate; (f) adjust or modify the calculation of a Corporate Objective or Individual Objective for the Performance Period so as to avoid unanticipated consequences or address unanticipated events; provided that while the Committee may equitably adjust the percentages allocated to any Corporate Objective, changes in the Corporate Objectives should be approved by the Board; and (g) make all determinations necessary and advisable in administering the Plan. Section headings are provided for administrative convenience and shall not restrict the Committee’s interpretive authority.

 

The Committee hereby delegates to the CEO full power and authority to administer and interpret the Plan and any cash bonuses awarded under the Plan with respect to Non-Executive Participants (as defined below), and references to the “Committee” as used herein shall be deemed to include the CEO with respect to Non-Executive Participants. The Committee hereby delegates to and authorizes the head of Human Resources and his or her agents to determine the treatment (including any proration) of awards for Non-Executive Participants who take any leave of absence, join the Company before November of the Performance Period, who change job grades or geographic work location or have a similar change in status during the Performance Period, to assist in the day-to-day administration of the Plan and to communicate the terms of the Plan and bonus awards to Participants. The determinations of the Committee and its delegates with respect to the Plan will be final, binding, and conclusive on all interested parties.

 

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Plan Objectives

 

The Plan is designed to award a cash bonus (each a “Cash Bonus”) for performance during the Performance Period to Participants based on the level of achievement (1) by the Company of certain Company-wide objectives (the “Corporate Objectives”) and/or (2) by the Participant of certain individual performance objectives, which may include certain department, group and/or team objectives applicable to such Participant (the “Individual Objectives”). 

 

The Company hopes that by providing competitive short-term incentive compensation, the Company will attract, motivate and increase the retention rate among its employees which, in turn, will enhance the Company’s long-term value.

 

Award Determination

 

(a)Performance Goals and Objectives. Payment of Cash Bonuses will be based on the attainment of the Corporate Objectives and/or Individual Objectives. 

 

(b)Target Awards for Non-Executive Participants and Executive Participants. The target bonus award for each Non-Executive Participant and each Executive Participant (as defined below) shall be determined using the target bonus award table provided below. 

 

			
	
Title

(or equivalent position at participating subsidiary)
	
Weighting of Corporate Objectives
	
Weighting of Individual Objectives

	
CEO
	
100%
	
0%

	
C-Level/Executive Officers (other than CEO)
	
75%
	
25%

	
VP/SVP (non-Executive Officer)
	
50%
	
50%

	
Below VP
	
25%
	
75%

 

The CEO may amend the target bonus award table with respect to Non-Executive Participants from time to time, in his or her sole discretion, with or without advance notice to the affected Non-Executive Participants. The Committee may amend the target bonus award table from time to time, in its sole discretion, with or without advance notice to the affected Participants.

 

(c)Award Determinations.  The actual Cash Bonus paid to an individual can range from 0 to 1.5 times the target bonus award, based on achievement of Individual Objectives and/or Corporate Objectives.  The Committee must determine that a Corporate Objective  has an achievement percentage of at least 50% for such Corporate Objective component to be included in the Cash Bonus award determination.  A Participant must receive an individual performance factor recommendation of at least 50% to be eligible for the Corporate Objective component of the Cash Bonus.  A Participant who receives a performance rating of “Below Expectations” or its equivalent for his or her performance review is not eligible for a Cash Bonus.

 

Determination of Plan Objectives

 

The Corporate Objective shall consist of financial and operational metrics established by the Board, which may include objectives from one or more of the following areas: discovery, clinical development, regulatory or commercial milestones; changes in the market price of the Company's common stock; economic value-added; debt, equity or other forms of financing; acquisitions or strategic transactions; partnerships, collaborations, licensing transactions or similar business transactions; financial metrics; operating efficiency; and/or employee retention and recruiting or other human resources matters.

Page | 2

 

 

 

The Corporate Objectives shall be approved by the Board within ninety (90) days after the beginning of the Performance Period. Each Corporate Objective category shall be assigned an initial relative weighting from the Board, reflecting its importance to the achievement of the Company’s key results during the Performance Period; provided, however, the Board may adjust the weighting of the Corporate Objectives, modify the Corporate Objectives or add new Corporate Objectives based on unanticipated events in its sole discretion at any time; and provided further, however, that the Committee may also adjust the weighting of the Corporate Objectives if in the reasonable determination of the Committee based upon unanticipated events, changes in the priorities of the Company or other equitable considerations the Committee determines such adjustments are reasonable and appropriate.  

 

The Individual Objectives shall be set as follows:

 

	
•
	
For the CEO, the Individual Objectives, if any, shall be set by the Board;

	
•
	
For Participants who are executive officers (as that term is defined under Section 16 of the Securities Exchange Act of 1934, as amended, and Rule 16a-1 thereunder), other than the CEO (collectively, the “Executive Participants”), the Individual Objectives shall be set by the Committee based upon recommendations made by the CEO; and

	
•
	
For Participants other than the CEO and the Executive Participants (collectively, the “Non-Executive Participants”), the Individual Objectives shall be set by each Participant’s immediate supervisor, with input from team leaders, group and department heads and others, as appropriate.

 

Plan Bonus Targets

 

Under the Plan, each Participant is eligible to earn a Cash Bonus targeted at a specified percentage of his or her annual base salary that is earned in 2020 (pro-rated for number of days employed), with such percentage based in part upon the position such Participant holds with the Company (the “Bonus Target”). Under the Plan, the Bonus Targets range from 75% of 2020 base salary for the CEO, 30% to 40% of a Participant’s 2020 base salary for the Executive Participants (other than CEO) and Non-Executive Participants at the Vice President level and above and up to 25% of a Participant’s 2020 base salary for other Non-Executive Participants below the Vice President level.

 

Determination of Cash Bonus Payments

 

The Company will determine the achievement of Corporate Objectives and Individual Objectives shortly after the end of the Performance Period, as follows:

 

Determination of Level of Achievement of Corporate Objectives

 

The Committee shall determine, after receiving and considering analysis and recommendations from management, the degree to which the Corporate Objectives have been met, expressed as a percentage of Corporate Objectives achieved, taking into consideration the weighting assigned to each Corporate Objective. The Committee has the right, in its sole discretion, to adjust the percentage of Corporate Objectives achieved upward beyond 100% in the event of over-achievement of the Corporate Objectives as determined by the Committee. 

 

Page | 3

 

 

Determination of Level of Achievement of Individual Objectives

 

The Committee shall determine, after receiving and considering analysis and recommendations from the CEO, the degree to which the Individual Objectives have been met for the Executive Participants, expressed as a percentage of Individual Objectives achieved, taking into consideration the weighting assigned to each Individual Objective.  For Non-Executive Participants, the degree to which the Individual Objectives have been achieved shall be determined by each Non-Executive Participant’s immediate supervisor, with input from team leaders, group and department heads and others, as appropriate.

 

Determination of Cash Bonus Payments for Individual Participants

 

The actual Cash Bonus earned by a Participant is based on the Participant’s (i) level of achievement of the Corporate Objectives; (ii) level of achievement by the Participant against his or her Individual Objectives, if applicable, and (iii) the Participant’s Bonus Target.  The Corporate Objectives and the Individual Objectives will be weighted as set forth above in the target bonus award table, subject to adjustment by the Committee or the CEO, as applicable, in their sole discretion. The determinations of the Committee and the CEO will be final and binding on all Participants. In making its determination, the Committee or the CEO, as applicable, shall consider the following:

	
•
	
For the CEO, the Committee’s own evaluation of his achievements; 

	
•
	
For Executive Participants, the recommendations made by the CEO; and

	
•
	
For Non-Executive Participants, the recommendations made by the CEO with input from team leaders, group and department heads and supervisors, as appropriate.

 

In determining the actual Cash Bonus earned, the Committee may also take into account the achievement of publicly announced targets, clinical milestones, strategic goals, cross-functional teamwork and collaboration, the business and financial condition of the Company, and unforeseen changes in the economy and/or geopolitical climate.

 

Timing of Cash Payments Under the Plan

 

Payment of Cash Bonuses under the Plan is expected to occur in the first quarter of 2021 following the conclusion of the Performance Period on such date as determined by the Committee in its sole discretion but no later than March 15, 2021  (the “Payment Date”). A Participant must remain employed by the Company through the Payment Date in order to earn any Cash Bonus. If a Participant terminates employment or service with the Company for any reason prior to the Payment Date, then the Participant will forfeit his or her eligibility with respect to receiving any Cash Bonus. The Plan and any Cash Bonus granted under the Plan are intended to be exempt from, or comply with, the requirements of Section 409A of the Internal Revenue Code of 1986, as amended from time to time and any related regulations or other guidance promulgated with respect to such Section by the U.S. Department of Treasury of the Internal Revenue Service and will be interpreted and administered in in accordance with that intent to the greatest extent possible.

 

Notwithstanding the foregoing, if the Committee determines, after receiving and considering analysis and recommendations from management, that one or more Corporate Objectives have been met by June 30th of the Performance Period, the Committee, in its sole discretion, may authorize the advance payment of a portion of the Cash Bonus attributable to such Corporate Objective (the “Advanced Bonus Payment”). The allocation of the Advanced Bonus Payment shall be distributed among all Participants in a manner substantially consistent with the process provided above. The final payout of the Cash Bonuses paid on the Payment Date shall take into account any Advanced Bonus Payment, unless the Board revises the Corporate Objectives to add new Corporate Objectives in lieu of the previously achieved Corporate Objectives for which Advance Bonus Payments have or will be made.

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Miscellaneous Provisions

 

Participation in the Plan shall not alter in any way the at-will nature of the Company’s employment of a Participant, and such employment may be terminated at any time for any reason, with or without cause and with or without prior notice. Nothing in this Plan shall be construed to be a guarantee that any Participant will receive all or part of a Cash Bonus or to imply a contract between the Company and any Participant.

 

This Plan supersedes and replaces all prior cash incentive and bonus plans of the Company, other than any applicable change of control payment plans and severance plans (for both Executive Participants and Non- Executive Participants). The Committee may amend or terminate this Plan at any time, with or without notice. The Committee may likewise terminate an individual’s participation in the Plan at any time, with or without notice. Further, the Board may modify the Corporate Objectives and/or the weighting of the Corporate Objectives at any time and the Committee may modify the Individual Objectives, the Bonus Targets and/or the weighting of the Corporate Objectives at any time.

 

Any Cash Bonuses paid hereunder shall be subject to any clawback policy adopted by the Company from time to time or as is otherwise required by applicable law, and, in accordance with any such clawback policy or applicable law, may be subject to the requirement that the Cash Bonus be repaid to the Company after it has been distributed to the Participant.

 

Unfunded Plan

 

Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind or a fiduciary relationship between the Company and any Participant, beneficiary or legal representative or any other person. To the extent that a person acquires a right to receive payments under the Plan, such right shall be no greater than the right of an unsecured general creditor of the Company.  All payments to be made hereunder shall be paid from the general funds of the Company and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts. The Plan is not intended to be subject to the Employee Retirement Income Security Act of 1974, as amended.

 

No Assignment

 

No Participant will have the right to alienate, assign, encumber, hypothecate or pledge his or her interest in any award under the Plan, voluntarily or involuntarily, and any attempt to so dispose of any such interest will be void. During the lifetime of any Participant, payment of a Cash Bonus under the Plan shall only be made to such Participant.

 

Applicable Law

 

To the extent not preempted by federal law, the Plan shall be construed in accordance with and governed by

the laws of the State of Delaware, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Plan to the substantive law of another jurisdiction

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