Document:

Exhibit 10.1

 

Silicon Laboratories Inc.

2010 Bonus Plan

 

Overview

 

Silicon Laboratories Inc.
(“Silicon Labs”) is committed to sharing its success with the people who make
it possible — the Silicon Labs employees.  The Compensation Committee of
the Board of Directors approved this 2010 Bonus Plan (the “Plan”) to encourage
participation by Silicon Labs employees in achieving company goals and to
permit Silicon Labs employees to share in the rewards of our success.  The
term of this Plan is for the 2010 fiscal year.

 

Eligible
Employees

 

To be eligible to
participate in the Plan, a person must be a regular full-time or part-time
employee of Silicon Labs or one of its wholly-owned subsidiaries and not a
participant in any other bonus plan or cash incentive plan (including any sales
commission plan) unless participation under the Plan is permitted under the
terms of such other plan.

 

Bonus
Calculation

 

Our business strategy has
always been for Silicon Labs to be a growth company with strong
profitability.  Accordingly, bonuses under the Plan will be largely
dependent on Silicon Labs’ adjusted operating income as a percentage of
revenue, rounded to the nearest tenth of a percent with 0.05% rounded up (the “Adjusted
Operating Income %”).  Adjustments will be made from time to time at the
sole discretion of the Compensation Committee to include or exclude certain
items.  An example of a potential adjustment would be the exclusion of an
expense item such as stock compensation.  Bonuses may also be made dependent
on individual or company performance criteria as established by the
Compensation Committee (or its designee).  In addition to adjusted
operating income, such alternative criteria may include, without limitation,
revenue, revenue by product area(s), gross margin, gross margin by product area(s) or
management-based objectives set by the Compensation Committee (or its designee)
such as the introduction of new products.

 

Unless an eligible
employee receives written notice from the CEO of Silicon Labs that different
bonus criteria is applicable to such employee, such employee’s bonus will be
determined on a quarterly basis as follows:

 

	
   

  	
   

  	
  Adjusted Operating

  Income

   %

  	
   

  	
  Bonus as a

  percent of

  Eligible

  Earnings for such

  Quarter

  	
   

  
	
  Maximum

  	
   

  	
  >30

  	
  %

  	
  15

  	
  %

  
	
  Target

  	
   

  	
  25

  	
  %

  	
  10

  	
  %

  
	
   

  	
   

  	
  20

  	
  %

  	
  7

  	
  %

  
	
   

  	
   

  	
  15

  	
  %

  	
  5

  	
  %

  
	
  Minimum

  	
   

  	
  10

  	
  %

  	
  3

  	
  %

  
	
  No
  bonus

  	
   

  	
  <10

  	
  %

  	
  0

  	
  %

  

 

As illustrated by the
chart above, the bonus increases by 0.04% for every 0.1% increase in Adjusted
Operating Income % over the 10% minimum until reaching an Adjusted Operating
Income % of 20%. Thereafter, the bonus increases by 0.06% for every 0.1%
increase in Adjusted Operating Income % until reaching the Target Adjusted
Operating Income % of 25%.  Thereafter, the bonus increases by 0.1% for
every 0.1% increase in Adjusted Operating Income % until reaching the maximum
bonus payment of 15% at the Maximum Adjusted Operating Income % of 30%. 
The bonus shall be rounded to the nearest tenth of a percent with 0.05% rounded
up.

 

 

Eligible
Earnings

 

Bonuses are paid as a percentage
of Eligible Earnings earned by such employee during such quarter. 
Eligible Earnings include only an employee’s base salary or hourly wages. 
Eligible Earnings do not include, among other things, “extra months” bonuses or
payments, disability pay, bonus payments from a previous bonus period or other
payments that are taxable but not considered regular base earnings.  For
non-exempt employees, overtime pay would be considered Eligible Earnings.

 

Timing
of Payments

 

Bonus checks will
generally be issued within approximately one month after the end of each
quarterly period.  Bonus payments are not considered earned by the
employee until the payment is received.

 

General
Provisions

 

· Bonuses are subject to all applicable
taxes and other required deductions.  Bonus payments are not subject to
benefit plan deductions or 401(k) plan contributions.

 

· The Plan will not be available to
employees subject to the laws of any jurisdiction which prohibits any
provisions of this Plan or in which tax or other business considerations make
participation impracticable in the judgment of the Compensation Committee.

 

· The Plan does not constitute a guarantee
of employment nor does it restrict Silicon Labs’ rights to terminate employment
at any time or for any lawful reason.

 

· The Plan does not create vested rights
of any nature nor does it constitute a contract of employment or a contract of
any other kind.  The Plan does not create any customary concession or
privilege to which there is any entitlement from year-to-year, except to the
extent required under applicable law.  Nothing in the Plan entitles an
employee to any remuneration or benefits not set forth in the Plan nor does it
restrict Silicon Labs’ rights to increase or decrease the compensation of any
employee, except as otherwise required under applicable law.

 

· The Plan shall not become a part of any
employment condition, regular salary, remuneration package, contract or
agreement, but shall remain gratuitous in all respects.  Bonuses are not
to be taken into account for determining severance pay, termination pay, “extra
months” bonuses or payments, or any other form of pay or compensation.

 

· The Plan is provided at Silicon Labs’
sole discretion and Silicon Labs may modify or eliminate it at any time,
individually or in the aggregate, prospectively or retroactively, without
notice or obligation. In addition, there is no obligation to extend or
establish a similar plan in subsequent years.

 

· The Plan shall not be pre-funded.
Silicon Labs shall not be required to establish any special or separate fund or
to make any other segregation of assets to assure the payment of bonuses.

 

· All references to a quarterly period
refer to fiscal quarters of Silicon Labs.

 

· This Plan constitutes the entire
arrangement regarding the Plan, supersedes any prior oral or written description
of the Plan and may not be modified except by a written document that
specifically references this Plan and is signed by the Silicon Labs CEO.

 

· Employees who resign or are terminated
prior to the actual payment of a bonus shall not receive a bonus.

 

 

· Eligible employees who begin employment
with Silicon Labs after the first day of a fiscal quarter for which a bonus is
paid shall be eligible to receive a bonus for such quarter.  The bonus
will be based on actual Eligible Earnings earned by such employee during such
quarter.

 

· Employees who are separated from
employment with Silicon Labs due to divestiture, closure, or dissolution of a
business are not eligible to receive a bonus.

 

· Independent contractors, consultants,
individuals who have entered into an independent contractor or consultant
agreement, temporary employees, contract employees and interns are not eligible
to participate in the Plan.

 

· The bonus for an otherwise eligible
employee who has died prior to the end of a quarter while actively employed
will be paid to the decedent’s estate.Exhibit 10.32

 

AMENDMENT NO. 4 TO

FIFTH SUPPLEMENT

TO THE MASTER LOAN AGREEMENT

(REVOLVING LINE OF CREDIT LOAN)

 

This
Amendment No. 4 to the Master Loan Agreement (Revolving Line of Credit
Loan) (this “Amendment”) is effective as of December 8,
2009, by and between HERON LAKE BIOENERGY, LLC,
a Minnesota limited liability company (“Borrower”) and AGSTAR FINANCIAL SERVICES, PCA (“Lender”).

 

RECITALS

 

A.            Lender has extended various credit
facilities to Borrower for the purposes of acquiring, constructing, equipping,
furnishing and operating an ethanol production facility in Jackson County,
Minnesota, pursuant to that certain Fourth Amended and Restated Master Loan
Agreement dated as of October 1, 2007, as the same may be amended,
supplemented, modified, extended or restated from time to time (the “MLA”); that certain Third Supplement to the Master Loan
Agreement (Term Loan) dated as of October 1, 2007, as the same may be
amended, supplemented, modified, extended or restated from time to time (the “Third Supplement”); that certain Fourth Supplement to the
Master Loan Agreement (Term Revolving Loan) dated as of October 1, 2007,
as the same may be amended, supplemented, modified, extended or restated from
time to time (the “Fourth Supplement”);
and that certain Fifth Supplement to the Master Loan Agreement (Revolving Line
of Credit Loan) dated as of November 19, 2007, as amended by that certain
Amendment No. 1 to Fifth Supplement to the Master Loan Agreement dated November 17,
2008, as further amended by that certain Amendment No. 2 to Fifth
Supplement to the Master Loan Agreement dated February 1, 2009, and as
further amended by that certain Amendment No. 3 to Fifth Supplement to the
Master Loan Agreement dated May 29, 2009, as the same may be amended,
supplemented, modified, extended or restated from time to time (collectively,
the “Fifth Supplement”).  The MLA, Third Supplement, Fourth Supplement
and Fifth Supplement are referred to collectively hereinafter as the “Loan Agreement”).

 

B.            Borrower has requested that Lender
extend the maturity date of the Revolving Line of Credit Loan, and Lender has
agreed to such extension upon the terms and conditions set forth herein.

 

C.            Unless otherwise expressly defined
herein, capitalized terms used herein shall have the same meaning ascribed to
them in the MLA or the Fifth Supplement, as applicable.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the premises herein contained, and for other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto herby agree as follows:

 

1.             Amendment
to Fifth Supplement.  Section 1:  The following defined term in the Fifth
Supplement is hereby amended and restated to read as follows:

 

“Revolving
Line of Credit Loan Maturity Date” shall mean February 1, 2010.

 

2.             Representations and Warranties.  Borrower hereby represents to Lender
that, after giving effect to this Amendment:

 

(a)           All of the representations and
warranties of Borrower contained in the MLA and in each other Loan Document are
true and correct in all material respects as though made on and as of the date
hereof.

 

 

(b)           As the date hereof, except as
otherwise specifically stated herein, no Event of Default has occurred and is
continuing.

 

3.             Miscellaneous.

 

(a)           Effect; Ratification.  The amendments set forth herein are effective
solely for the purposes set forth herein and shall be limited precisely as
written, and shall not be deemed to (i) be a consent to, or an
acknowledgment of, any amendment, waiver or modification of any other term or
condition of the Loan Agreement or (ii) prejudice any right or remedy
which Lender may now have or may have in the future under or in connection with
the Loan Agreement, as amended hereby, or any other instrument or agreement
referred to therein. It is further understood and agreed by and between the
Borrower and the Lender that all other terms and provisions of the Loan
Agreement shall remain in full force and effect, enforceable by the Lender
against the Borrower as fully as though no amendments had been made hereby, and
this Amendment shall not be deemed to hinder, compromise or lessen the
enforceability of the Loan Agreement, the Notes, or any mortgage, security
interest, or guaranty securing repayment of the Loans, in any way.  Each reference in the Loan Agreement and in
any other Loan Document to the “Fifth Supplement” shall mean the Fifth
Supplement, as amended hereby.

 

(b)           Loan Documents.  This Amendment is a Loan Document executed
pursuant to the MLA and shall be construed, administered and applied in
accordance with the terms and provisions thereof.

 

(c)           Defined Terms.  All terms used and
not otherwise defined herein shall have the meanings assigned to them in the
MLA or the Fifth Supplement, as applicable.

 

(d)           Counterparts.  This Amendment may be executed in any number
of counterparts, each such counterpart constituting an original and all of
which when taken together shall constitute one and the same instrument.

 

(e)           Severability.  Any provision contained in this Amendment
which is held to be inoperative, unenforceable or invalid in any jurisdiction
shall, as to that jurisdiction, be inoperative, unenforceable or invalid
without affecting the remaining provisions of this Amendment in that
jurisdiction or the operation, enforceability or validity of such provision in
any other jurisdiction.

 

(f)            GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF MINNESOTA.

 

(g)           WAIVER OF JURY TRIAL.  THE BORROWER AND THE LENDER HEREBY
IRREVOCABLY WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT TO WHICH IT IS A
PARTY OR ANY INSTRUMENT OR DOCUMENT DELIVERED THEREUNDER.

 

{SIGNATURE PAGE FOLLOWS}

 

2

 

SIGNATURE PAGE TO

AMENDMENT NO. 4 TO

FIFTH SUPPLEMENT TO THE MASTER LOAN AGREEMENT

(REVOLVING LINE OF CREDIT LOAN)

BY AND BETWEEN

HERON LAKE BIOENERGY, LLC

AND

AGSTAR FINANCIAL SERVICES, PCA

DATED AS OF:  December 8,
2009

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
and delivered by their respective duly authorized officers as of the date first
written above.

 

BORROWER:

 

HERON
LAKE BIOENERGY, LLC,

a
Minnesota limited liability company

 

 

	
  By:

  	
  /s/
  Robert J. Ferguson

  	
   

  
	
   

  	
  Robert J. Ferguson

  	
   

  
	
   

  	
  Its: President

  	
   

  

 

LENDER:

 

AGSTAR
FINANCIAL SERVICES, PCA,

a
United States corporation

 

 

	
  By:
  

  	
  /s/
  Mark Schmidt

  	
   

  
	
   

  	
  Mark Schmidt

  	
   

  
	
   

  	
  Its:  Vice
  President

  	
   

  

 

3

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