Document:

Leatt Corporation - Exhibit 10.12 - Filed by newsfilecorp.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     AMENDMENT NO. 3 

EMPLOYMENT AGREEMENT 

                   This
AMENDMENT NO. 3 to the EMPLOYMENT AGREEMENT, effective as of July 1, 2016 (this
“Third Amendment”), is by and between Leatt Corporation, a Nevada
corporation (the “Company”) and Mr. Sean Macdonald, an individual (the
“Executive”). Each of the parties hereto are referred to as a
“Party” and collectively as the “Parties.” Capitalized terms used,
but not otherwise defined, herein have the meanings ascribed to such terms in
the Original Agreement (as defined below).

BACKGROUND 

                   The
Parties entered into an Employment Agreement, dated as of January 16, 2014,
pursuant to which, as amended, the Company agreed to employ the Executive and
the Executive agreed to work for the Company (the “Original Agreement”).
The Parties now desire to enter into this Third Amendment to the Original
Agreement as more specifically set forth herein.

AGREEMENT 

                   NOW,
THEREFORE, in consideration of the mutual promises of the Parties, and for good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:

                   1.       
Amendment to Paragraph 5: Paragraph 5 (Specific duties and obligations of
the employee) of the Original Agreement is deleted in its entirety and replaced
with the following provision: 

5. Specific duties and obligations
of the employee

The Board of Directors may assign
specific tasks and duties to the employee from time to time. The employee
undertakes to do the following: 

5.1        Diligently to
perform all such duties and exercise such powers consistent with the position to
which he/she is appointed; 

5.2        To carry out to the
best of his/her ability and under the control of the employer, such duties and
functions as may reasonably be assigned to the

employee from time to time by the
Board of Directors or any other person delegated by the Board for such purposes;

5.3        Outside normal
business hours, and when necessary, to devote such portion of his/her time,
attention and abilities to the affairs of the employer as may be reasonable in
the circumstances; 

5.4        To obey and observe
all lawful instructions of the Board of Board of Directors; 

5.5        To advise the Board
of Directors as soon as the employee is aware that he/she will not be able to
attend work to enable the employer to make alternative arrangements. Failure to
notify as required constitutes serious misconduct; and 

5.6        Should the employee
acquire Company shares by means of share option schemes, the employee undertakes
not to sell, dispose, gift or donate the Company’s share for a minimum period of
2 (two) years from issuance of the Company shares to the employee whilst the
Company employs the employee. The two-year period will commence on the date that
the shares are issued to the employee by the Company’s transfer agent. The
period of 2 (two) years may be extended by written agreement between the Board
of Directors and the employee. 

Notwithstanding the foregoing, this
Section 5 shall not apply to employee in the event of a change in control of the
Company. A “change in control” is deemed to have occurred where any one
stockholder acquires twenty-five percent (25%) or more of the Company’s
outstanding common stock or fifty percent (50%) or more of its outstanding
preferred stock as of the effective date of this Third Amendment. 

                   2.       
Agreement. In all other respects, the Original Agreement shall remain in
full force and effect.

                   3.       
Counterparts. This Amendment may be executed in two or more counterparts,
each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.

[SIGNATURE PAGE TO FOLLOW] 

Amendment No. 3 to Employment Agreement 

                   
IN WITNESS WHEREOF, the Parties have executed this Third Amendment to the
Original Agreement as of the date first above written.

	Company: 	LEATT CORPORATION 

	 	By: 	/s/ Christopher Leatt 
	 	  	Christopher Leatt 
	 	  	Chairman 

	 	Address: 
	 	Leatt Corporation 
	 	50 Kiepersol Drive, Atlas Gardens 
	 	Contermanskloof Road 
	 	Durbanville, Western Cape 
	 	7441, South Africa 

Executive: 

	 	By: 	/s/ Sean Macdonald 
	 	  	Sean Macdonald

	 	Address: 
	 	c/o Leatt Corporation 
	 	50 Kiepersol Drive, Atlas Gardens 
	 	Contermanskloof Road 
	 	Durbanville, Western Cape 
	 	7441, South Africa 

Amendment No. 3 to Employment Agreement 

AMENDMENT NO. 4 

EMPLOYMENT AGREEMENT 

            This
AMENDMENT NO. 4 to the EMPLOYMENT AGREEMENT, effective as of January 1, 2017
(this “Fourth Amendment”), is by and between Leatt Corporation, a Nevada
corporation (the “Company”) and Mr. Sean Macdonald, an individual (the
“Executive”). Each of the parties hereto are referred to as a
“Party” and collectively as the “Parties.” Capitalized terms used,
but not otherwise defined, herein have the meanings ascribed to such terms in
the Original Agreement (as defined below).

BACKGROUND 

            The
Parties entered into an Employment Agreement, dated as of January 16, 2014,
pursuant to which, as amended, the Company agreed to employ the Executive and
the Executive agreed to work for the Company (the “Original Agreement”).
The Parties now desire to enter into this Third Amendment to the Original
Agreement as more specifically set forth herein.

AGREEMENT 

            NOW,
THEREFORE, in consideration of the mutual promises of the Parties, and for good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:

            1.       
Amendment to Section 6.1: Section 6.1 of Paragraph 6 Remuneration of the
Original Agreement is deleted in its entirety and in lieu thereof the following
provision is inserted: 6.1. As remuneration for the services of the employee,
the employer shall pay a total all-inclusive cost to the employee (Total Cost of
Employment - TCOE) equaling a total of US$204,120 per annum.

            2.       
Agreement. In all other respects, the Original Agreement shall remain in
full force and effect.

            3.       
Counterparts. This Amendment may be executed in two or more counterparts,
each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.

[SIGNATURE PAGE TO FOLLOW] 

Amendment No. 4 to Employment Agreement 

                          
IN WITNESS WHEREOF, the Parties have executed this Fourth Amendment to the
Original Agreement as of the date first above written.

	Company: 
	LEATT CORPORATION 

 

	 	By: 	/s/
      Christopher Leatt 
	 	  	Christopher Leatt 
	 	  	Chairman 

	 	Address: 
	 	Leatt Corporation 
	 	50 Kiepersol Drive, Atlas Gardens 
	 	Contermanskloof Road 
	 	Durbanville, Western Cape 
	 	7441, South Africa 

 

             Executive: 

	 	By: 	/s/
      Macdonald 
	 	  	Sean Macdonald 

	 	Address: 
	 	c/o Leatt Corporation 
	 	50 Kiepersol Drive, Atlas Gardens 
	 	Contermanskloof Road 
	 	Durbanville, Western Cape 
	 	7441, South Africa 

Amendment No. 4 to Employment AgreementEX-10.13

 Exhibit 10.13 

BEAR NEWCO, INC. 

EXECUTIVE OFFICER SHORT TERM INCENTIVE COMPENSATION PLAN 
  

	1.	Purposes of the Plan 

 The purpose of the Bear Newco, Inc. Executive Officer Short Term
Incentive Compensation Plan is to motivate and reward eligible Executive Officers by making a portion of their cash compensation dependent on the achievement of certain corporate, business unit and individual performance goals. Certain awards under
the Plan may be intended to qualify as performance-based compensation deductible by the Company under the qualified performance-based compensation exception to Section 162(m). The Plan shall become effective on the Effective Date and shall remain in
effect until it has been terminated pursuant to Section 9(e). 
  

	2.	Definitions 

 (a) Definitions. For purposes of the Plan, the following capitalized
words shall have the meanings set forth below: 
 “Affiliate” means any entity that directly, or
indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the Company or General Electric Company. 

“Award” means an award granted pursuant to the Plan, the payment of which shall be contingent on the
attainment of Performance Targets with respect to a Performance Period, as determined by the Committee pursuant to Section 6(a). 

“Base Salary” means the Participant’s annualized rate of base salary on the last day
of the Performance Period before (i) deductions for taxes or benefits and (ii) deferrals of compensation pursuant to any Company or Affiliate-sponsored plans. 

“Board” means the Board of Directors of the Company, as constituted from time to time. 

“Cause” means: 

(i) If the Participant is a party to an employment agreement with the Company or an Affiliate and such agreement provides for a
definition of Cause, the definition contained therein; 
 (ii) If no such agreement exists, or if such agreement does not
define Cause: 
 (1) the Participant’s material failure to perform his or her employment duties for the Company or an
Affiliate (other than any such failure resulting from incapacity due to physical or mental illness); 

 (2) the Participant’s willful engagement in dishonesty, illegal conduct or
gross misconduct, which is, in each case, materially injurious to the Company or its Affiliates; 
 (3) the
Participant’s embezzlement, misappropriation or fraud, whether or not related to the Participant’s employment with the Company or its Affiliates; 

(4) the Participant’s conviction of or plea of guilty or nolo contendere to a crime that constitutes a
felony (or state law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude, if such felony or other crime is work-related, materially impairs the Participant’s ability to perform services for the Company or its
Affiliates or results in material harm to the Company or its Affiliates; or 
 (5) any other act or omission that
constitutes Cause, as determined in the reasonable, good faith discretion of the Committee. 
 “Change
in Control” means: 
 (i) any person (as such term is used in Section 13(d) of the Exchange
Act) or persons acting together in a manner which would constitute such persons a “group” for purposes of Section 13(d) of the Exchange Act acquires and “beneficially owns” (as defined in Rule
13d-3 under the Exchange Act), directly or indirectly, at least 50% of the total voting power represented by the Company’s then-outstanding voting securities; provided, however, that for
purposes of this clause (i), the following acquisitions shall not constitute a Change in Control: (1) any acquisition directly from the Company, (2) any acquisition by the Company, General Electric Company or any of their Affiliates, or
(3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any of its Affiliates; 

(ii) the consummation of a merger or consolidation of the Company with any other entity, other than a merger or consolidation
which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least
50% of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation; or 

(iii) there is consummated a sale or disposition by the Company of all or substantially all of the Company’s assets, other
than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially
the same proportions as their ownership of the Company immediately prior to such sale. 

  
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 Notwithstanding the foregoing, any direct or indirect spin-off, split-off or similar transaction involving Company securities by any stockholder of the Company to its stockholders, including pursuant to a Permitted Spin
Transaction (as defined in the Amended & Restated Operating Agreement of Newco LLC), shall not constitute a Change in Control. With respect to an Award that is subject to Section 409A and for which payment or settlement of the Award will
accelerate upon a Change in Control, no event set forth herein will constitute a Change in Control for purposes of the Plan unless such event also constitutes a “change in ownership,” “change in effective control,” or
“change in the ownership of a substantial portion of the Company’s assets” as defined under Section 409A. 

“Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time, including any
regulations or authoritative guidance promulgated thereunder and successor provisions thereto. 

“Committee” shall mean a committee of the Board acting in accordance with the provisions of
Section 3, designated by the Board to administer the Plan and composed of members that are “outside directors” as defined in Section 162(m) of the Code. For purposes of the Plan, reference to the Committee shall be deemed to refer to
any subcommittee, subcommittees, or other persons or groups of persons to whom the Committee delegates authority pursuant to Section 3(d). 

“Company” means Bear Newco, Inc., a Delaware corporation, and any successor thereto. 

“Disability” means the inability to perform any job for which the Participant is reasonably suited by
means of education, training or experience. 
 The disability of the Participant shall be determined by the Committee in good
faith after reasonable medical inquiry, including consultation with a licensed physician as chosen by the Committee, and a fair evaluation of the Participant’s ability to perform the Participant’s duties. Notwithstanding the previous two
sentences, with respect to an Award that is subject to Section 409A where the payment or settlement of the Award will accelerate upon termination of employment as a result of the Participant’s Disability, no such termination will constitute a
Disability for purposes of the Plan unless such event also constitutes a “disability” as defined under Section 409A. 

“Effective Date” means the business day immediately prior to the effective date of the
first registration statement that is filed by the Company and declared effective pursuant to Section 12 of Exchange Act with respect to any class of the Company’s equity securities. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time,
including any regulations or authoritative guidance promulgated thereunder and successor provisions thereto. 

“Executive Officers” means an individual who is an executive officer pursuant to Rule 3b-7 under the Exchange Act. 

  
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 “Good Reason” means 

(i) If the Participant is a party to an employment agreement with the Company or an Affiliate and such agreement provides for a
definition of Good Reason, the definition contained therein; 
 (ii) If no such agreement exists, or if such agreement does
not define Good Reason, Good Reason means the occurrence of one or more of the following without the Participant’s express written consent, which circumstances are not remedied by the Company within 30 days of its receipt of a written notice
from the Participant describing the applicable circumstances (which notice must be provided by the Participant within 90 days of the Participant’s knowledge of the applicable circumstances): 

(1) any material, adverse change in the Participant’s duties, responsibilities, authority, title, status or reporting
structure; provided, however, that any reduction in authorities, duties or responsibilities resulting merely from a Change in Control of the Company and its existence as a subsidiary or division of another entity shall not be
sufficient to constitute Good Reason; 
 (2) a material reduction in the Participant’s base salary; or 

(3) a geographical relocation of the Participant’s principal office location by more than 50 miles. 

“Maximum Award” means as to any Participant for any Plan Year, $10,000,000. The Maximum
Award limit shall be pro-rated for any Award payable with respect to a Performance Period that is shorter than one year. 

“Participant” means those Executive Officers of the Company or its Subsidiaries (excluding employees
participating for the Plan Year in any other short-term incentive plan of the Company or an Affiliate) who are selected by the Committee to receive an Award for the Plan Year. 

“Performance Criteria” means the performance criteria upon which the Performance Targets
for a particular Performance Period are based. In the case of Awards intended to meet the requirements for qualified performance-based compensation under Section 162(m), the Performance Criteria may include, either individually, alternatively or in
any combination, applied to either the company as a whole or to a business unit or related company, and measured either annually or cumulatively over a period of years, on an absolute basis or relative to a
pre-established target, to a previous year’s results or to a designated comparison group, in each case as specified by the Committee for the Award: net earnings; earnings per share; net income (before or
after taxes); stock price (including growth measures and total shareholder return); return measures (including return on net capital employed, return on assets, return on equity, or sales return); earnings before or after interest, taxes,
depreciation and/or amortization; dividend payments; gross revenues; gross margins; expense targets; cash flow return on 

  
 4 

 
investments, which equals net cash flows divided by owner’s equity; internal rate of return or increase in net present value; working capital targets relating to inventory or accounts
receivable; planning accuracy (as measured by comparing planned results to actual results); net sales growth; net operating profit; cash flow (including operating cash flow and free cash flow); and operating margin, subject to adjustment by the
Committee to remove the effect of charges for restructurings, discontinued operations and all items of gain, loss or expense determined to be unusual in nature or infrequent in occurrence, related to the disposal of a segment or a business, or
related to a change in accounting principle or otherwise. 
 With respect to Awards that are not intended to constitute qualified
performance-based compensation under Section 162(m), the Committee may establish Performance Targets based on any Performance Criteria it deems appropriate. 

Performance Criteria may relate to the performance of the Company as a whole, a business unit, division, department, individual or any
combination of these and may be applied on an absolute basis and/or relative to one or more peer group companies or indices, or any combination thereof, as the Committee shall determine. 

“Performance Targets” means the goals selected by the Committee, in its discretion, to be
applicable to a Participant for any Performance Period. Performance Targets shall be based upon one or more Performance Criteria. Performance Targets may include a threshold level of performance below which no Award will be paid and levels of
performance at which specified percentages of the Target Award will be paid and may also include a maximum level of performance above which no additional Award amount will be paid. 

“Performance Period” means the period established by the Committee over which Performance
Targets are measured, which, unless otherwise indicated by the Committee, shall be the Plan Year. 

“Plan” means the Bear Newco, Inc. Executive Officer Short Term Incentive Compensation Plan, as amended
from time to time. 
 “Plan Year” means the Company’s fiscal year. 

“Pro-rated Award” means an amount equal to the
Award otherwise payable to the Participant for a Performance Period in which the Participant was actively employed by the Company or an Affiliate for only a portion thereof, multiplied by a fraction, the numerator of which is the number of days the
Participant was actively employed by the Company or an Affiliate during the Performance Period and the denominator of which is the number of days in the Performance Period. 

“Section 162(m)” means Section 162(m) of the Code. 

“Section 162(m) Determination Date” means the earlier of:
(i) the 90th day of the Performance Period; or (ii) the date on which 25% of the Performance Period has elapsed. The Determination Date shall be a date on which the outcomes of the Performance Targets are substantially uncertain. 

  
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 “Section 409A” means Section 409A of the
Code. 
 “Subsidiary” means (i) any entity that, directly or through one or more intermediaries,
is controlled by the Company and (ii) any entity in which the Company has a significant equity interest, as determined by the Committee. 

“Target Award” means the target award payable under the Plan to a Participant for a
particular Performance Period, expressed as a percentage of the Participant’s Base Salary. In special circumstances, the target award may be expressed as a fixed amount of cash. 

(b) Rules of Construction. The masculine pronoun shall be deemed to include the feminine pronoun, and the singular form of a word shall
be deemed to include the plural form, unless the context requires otherwise. Unless the text indicates otherwise, references to sections are to sections of the Plan. 
  

	3.	Administration 

 (a) Committee. The Plan shall be administered by the Committee,
which, in addition to the other express powers conferred on the Committee by the Plan, shall have full power and authority, subject to applicable Law and to the express provisions hereof, to: (i) select Participants; (ii) grant Awards in
accordance with the Plan; (iii) determine the terms and conditions of each Award, including, without limitation, Performance Periods, Performance Targets, and the effect or occurrence, if any, of termination of employment or leave of absence
with the Company or any of its Affiliates or a Change in Control of the Company; (iv) subject to Sections 5(b), 6(a) and 9(e), amend the terms and conditions of an Award after the granting thereof; (v) make factual determinations in
connection with the administration or interpretation of the Plan; (vi) adopt, prescribe, establish, amend, waive and rescind administrative regulations, rules and procedures relating to the Plan; (vii) employ such legal counsel,
independent auditors and consultants as it deems desirable for the administration of the Plan and to rely upon any advice, opinion or computation received therefrom; (viii) vary the terms of Awards to take into account tax laws (or changes
thereto) and other regulatory requirements or to procure favorable tax treatment for Participants; (ix) correct any defects, supply any omission or reconcile any inconsistency in the Plan; and (x) make all other determinations and take any
other action desirable or necessary to interpret, construe or implement properly the provisions of the Plan. 
 (b) Plan Construction and
Interpretation. The Committee shall have full power and authority, subject to the express provisions hereof, to construe and interpret the Plan and any document delivered under the Plan. 

(c) Determinations of Committee Final and Binding. All determinations by the Committee in carrying out and administering the Plan and
in construing and interpreting the Plan shall be made in the Committee’s sole discretion and shall be final, binding and conclusive for all purposes and upon all persons interested herein. 

  
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 (d) Delegation of Authority. To the extent not prohibited by applicable laws, rules and
regulations, the Committee may, from time to time, delegate some or all of its authority under the Plan to a subcommittee or subcommittees thereof or other persons or groups of persons as it deems necessary, appropriate or advisable under such
conditions or limitations as it may set at the time of such delegation or thereafter; provided, however, that the Committee may not delegate its authority, except to a subcommittee thereof, to make Awards to individuals whose
compensation for such fiscal year may be subject to the limit on deductible compensation pursuant to Section 162(m). Notwithstanding the foregoing, no person to whom authority has been delegated pursuant to this Section 3(d) shall make any
Award to himself or herself or to any other person to whom authority to make Awards has been so delegated. 
 (e) Liability of Committee
and its Delegates. Subject to applicable laws, rules and regulations: (i) no member of the Board or Committee (or its delegates pursuant to Section 3(d)) shall be liable for any good faith action, omission or determination made in
connection with the operation, administration or interpretation of the Plan and (ii) the members of the Board or the Committee (and its delegates) shall be entitled to indemnification and reimbursement in accordance with applicable law in the
manner provided in the Company’s by-laws and any indemnification agreements as they may be amended from time to time. In the performance of its responsibilities with respect to the Plan, the Committee
shall be entitled to rely upon information and/or advice furnished by the Company’s officers or employees, the Company’s accountants, the Company’s counsel and any other party the Committee deems necessary, and no member of the
Committee shall be liable for any action taken or not taken in reliance upon any such information and/or advice.  
 (f) Action by
the Board. Anything in the Plan to the contrary notwithstanding, subject to applicable laws, rules and regulations, any authority or responsibility that, under the terms of the Plan, may be exercised by the Committee may alternatively be
exercised by the Board. 
  

	4.	Eligibility and Participation 

 (a) Eligibility. The individuals entitled to
participate in the Plan shall be those Executive Officers of the Company or its Subsidiaries (excluding employees participating for the Plan Year in any other short-term incentive plan of the Company) who are selected by the Committee to receive an
Award for the Plan Year. 
 (b) Participation. The Committee, in its discretion, shall select the persons who shall be Participants
for the Performance Period. In the case of Awards intended to meet the requirements for qualified performance-based compensation under Section 162(m), such selection shall be made no later than the Section 162(m) Determination Date. Only eligible
individuals who are designated by the Committee to participate in the Plan with respect to a particular Performance Period may participate in the Plan for that Performance Period. An individual who is designated as a Participant for a given
Performance Period is not guaranteed or assured of being selected for participation in any subsequent Performance Period. 
 (c) New
Hires; Newly Eligible Participants. A newly hired or newly eligible Participant will be eligible to receive a Pro-rated Award. The amount of any Award paid to such Participant shall not exceed that
proportionate amount of the Maximum Award set forth in the definition of “Maximum Award”. 

  
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 (d) Leaves of Absence. If a Participant is on a leave of absence for a portion of a
Performance Period, the Participant will be eligible to receive a Pro-rated Award reflecting participation for the period during which he or she was actively employed and not any period when he or she was on
leave. 
  

	5.	Terms of Awards 

 (a) Determination of Target Awards. Prior to, or reasonably
promptly following the commencement of each Performance Period, the Committee, in its sole discretion, shall establish the Target Award for each Participant, the payment of which shall be conditioned on the achievement of the Performance Targets for
the Performance Period. In the case of Awards intended to meet the requirements for qualified performance-based compensation under Section 162(m), such determination shall be made no later than the Section 162(m) Determination Date. 

(b) Determination of Performance Targets and Performance Formula. Prior to, or reasonably promptly following the commencement of, each
Performance Period, the Committee, in its sole discretion, shall establish the Performance Targets for the Performance Period and shall prescribe a formula for determining the percentage of the Target Award which may be payable based upon the level
of attainment of the Performance Targets for the Performance Period. The Performance Targets shall be based on one or more Performance Criteria, each of which may carry a different weight, and which may differ from Participant to Participant. In the
case of Awards intended to meet the requirements for qualified performance-based compensation under Section 162(m), all such actions shall be completed by no later than the Section 162(m) Determination Date, and the Performance Targets shall be
determined in accordance with generally accepted accounting principles (subject to adjustments and modifications for specified types of events or circumstances approved by the Committee in advance, provided that no such adjustment shall be
made if the effect would be to cause such Awards to fail to qualify as qualified performance-based compensation under Section 162(m)). 
  

	6.	Payment of Awards 

 (a) Determination of Awards; Certification. 

(i) Following the completion of each Performance Period, the Committee shall determine the extent to which the Performance
Targets have been achieved or exceeded. If the minimum Performance Targets established by the Committee are not achieved, no payment will be made. 

(ii) To the extent that the Performance Targets are achieved, the Committee shall determine, and in the case of Awards intended
to meet the requirements for qualified performance-based compensation under Section 162(m) shall certify in writing, the extent to which the Performance Targets applicable to each Participant have been achieved and shall then determine the amount of
each Participant’s Award. 

  
 8 

 (iii) In determining the amount of each Award, the Committee may reduce or
eliminate the amount of an Award by applying negative discretion if, in its sole discretion, such reduction or elimination is appropriate. In the case of Awards other than Awards intended to meet the requirements for qualified performance-based
compensation under Section 162(m), the Committee may also exercise its discretion to increase the amount of an Award to the extent that it believes that circumstances so warrant. 

(iv) In no event shall the amount of an Award for any Plan Year exceed the Maximum Award. 

(b) Form and Timing of Payment. Except as otherwise provided herein, as soon as practicable following the Committee’s
certification pursuant to Section 6(a) for the applicable Performance Period, each Participant shall receive a cash lump sum payment of his or her Award, less required withholdings. In no event shall such payment be made later than the March 15
following the date the Committee certifies that the Performance Targets have been achieved. 
 (c) Deferral of Awards. The Committee,
in its sole discretion, may permit a Participant to defer the payment of an Award that would otherwise be paid under the Plan. Any deferral election shall be subject to such rules and procedures as shall be determined by the Committee in its sole
discretion. 
  

	7.	Termination of Employment 

 (a) Employment Requirement. Except as otherwise
provided in Section 7(b) and subject to a Participant’s employment agreement with the Company or an Affiliate, if a Participant’s employment terminates for any reason prior to the date that Awards are paid, all of the Participant’s
rights to an Award for the Performance Period shall be forfeited. However, the Committee, in its sole discretion, may pay a Pro-rated Award, subject to the Committee’s certification that the Performance
Targets for the Performance Period have been met. Such Pro-rated Award will be paid at the same time and in the same manner as Awards are paid to other Participants. Notwithstanding the foregoing, if a
Participant’s employment is terminated for Cause, the Participant shall in all cases forfeit any Award not already paid. 
 (b)
Termination of Employment Due to Death or Disability. Unless a Participant’s employment agreement with the Company or an Affiliate states otherwise, if a Participant’s employment is terminated by reason of his or her death or
Disability during a Performance Period or following a Performance Period but before the date that Awards are paid, the Participant or his or her beneficiary will be paid his or her Target Award (in the case of termination during a Performance
Period) or the Award that would otherwise be payable if the Participant remained employed through the date that Awards are paid (in the case of termination following a Performance Period but before Awards were paid). In the case of a
Participant’s Disability, the employment termination shall be deemed to have occurred on the date that the Committee determines that the Participant is Disabled. Payment of such Target Award or Award, as applicable, will be made within sixty
(60) days following the employment termination (in the case of termination during a Performance Period) or at the same time and in the same manner as Awards are paid to other Participants (in the case of termination following a Performance
Period but before Awards were paid). 

  
 9 

 (c) Termination Without Cause, for Good Reason. Unless a Participant’s employment
agreement with the Company or an Affiliate states otherwise, if a Participant’s employment is terminated without Cause (other than due to death or Disability) or for Good Reason during a Performance Period or following a Performance Period but
before the date that Awards are paid, the Participant will be paid a Pro-rated Award (in the case of termination during a Performance Period) or the Award that would otherwise be payable if the Participant
remained employed through the date that Awards are paid (in the case of termination following a Performance Period but before Awards were paid). Payment of such Pro-rated Award or Award, as applicable, will be
made at the same time and in the same manner as Awards are paid to other Participants. 
  

	8.	Change in Control 

 Unless a Participant’s employment agreement with the Company or
an Affiliate states otherwise, if a Participant’s employment is terminated without Cause or for Good Reason during the 12-month period following a Change in Control, the Participant will receive an amount
equal to his or her Target Award for the year of termination multiplied by a fraction, the numerator of which equals the number of days that have elapsed since the beginning of the Performance Period through and including the date of termination and
the denominator of which equals the number of days in the Performance Period. Amounts paid pursuant to this Section 8 will be paid within sixty (60) days following the employment termination. 

 

	9.	General Provisions 

 (a) Compliance with Legal Requirements. The Plan and the
granting of Awards shall be subject to all applicable federal and state laws, rules and regulations, and to such approvals by any regulatory or governmental agency as may be required. 

(b) Tax Withholding. The Company or an Affiliate, as appropriate, shall have the right to deduct from all payments made to a
Participant any applicable taxes required or permitted to be withheld (up to the maximum statutory tax rate in the relevant jurisdiction) with respect to such payments. 

(c) Non-Transferability. A Participant’s rights and interests under the Plan, including
any Award previously made to such Participant or any amounts payable under the Plan may not be assigned, pledged, or transferred, except, in the event of the Participant’s death, to a designated beneficiary in accordance with the Plan, or in
the absence of such designation, by will or the laws of descent or distribution or pursuant to a domestic relations order. 
 (d) No
Right to Awards or Employment. No person shall have any claim or right to receive Awards under the Plan. Neither the Plan, the grant of Awards under the Plan nor any action taken or omitted to be taken under the Plan shall be deemed to create or
confer on any person any right to be retained in the employ of the Company or any of its Affiliates, or to interfere with or to limit in any way the right of the Company or any of its Affiliates to terminate the employment of such person at any
time. No Award shall constitute salary, recurrent 

  
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compensation or contractual compensation for the year of grant, any later year or any other period of time. Payments received by a Participant under any Award made pursuant to the Plan shall not
be included in, nor have any effect on, the determination of employment-related rights or benefits under any other employee benefit plan or similar arrangement provided by the Company and its Affiliates,
unless otherwise specifically provided for under the terms of such plan or arrangement or by the Committee. 
 (e) Amendment or
Termination of the Plan. The Board or the Committee may, at any time, amend, suspend or terminate the Plan in whole or in part, provided that no amendment that requires stockholder approval in order for the Plan to continue to comply with
Section 162(m) shall be effective unless approved by the requisite vote of the stockholders of the Company. Notwithstanding the foregoing, no amendment shall adversely affect the rights of any Participant to Awards allocated prior to such amendment.

 (f) 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 except as expressly set forth in the Plan. The Plan is not intended to be subject to the Employee Retirement Income Security Act of 1974, as amended. 

(g) Section 162(m). Unless otherwise determined by the Committee, or expressly provided herein, in the case of Awards intended to meet
the requirements for qualified performance-based compensation under Section 162(m) the provisions of this Plan shall be administered and interpreted in accordance with Section 162(m) to ensure the maximum deductibility by the Company of the payment
of such Awards. 
 (h) Section 409A. It is intended that, except for payments which a Participant has elected to defer pursuant to
Section 6(c), payments under the Plan qualify as short-term deferrals exempt from the requirements of Section 409A. In the event that any Award does not qualify for treatment as an exempt short-term deferral, it is intended that such amount will be
paid in a manner that satisfies the requirements of Section 409A. The Plan shall be interpreted and construed accordingly. 
 (i)
Successors. All obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding upon any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 
 (j) Headings. The
headings of Sections herein are included solely for convenience of reference and shall not affect the meaning of any of the provisions of the Plan. 

(k) Clawback. Notwithstanding anything in the Plan to the contrary, all Awards granted under the Plan and any payments made pursuant to
the Plan shall be subject to clawback or recoupment as permitted or mandated by applicable law, rules, regulations or any Company policy as enacted, adopted or modified from time to time. 

  
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 (l) Severability. If any provision of this Plan is held unenforceable, the remainder of
the Plan shall continue in full force and effect without regard to such unenforceable provision and shall be applied as though the unenforceable provision were not contained in the Plan. 

(m) Governing Law. The Plan shall be construed, administered and enforced in accordance with the laws of Delaware without regard to
conflicts of law. 

  
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