Document:

EX-10.01

 Exhibit 10.01 

 
 

 
 CADENCE DESIGN SYSTEMS, INC. 

SENIOR EXECUTIVE BONUS PLAN 

(Effective February 5, 2019) 
  

	1.	 Purpose. 

The purpose of the Senior Executive Bonus Plan (the “Plan”) is to motivate and reward the individual who is serving as
the Chief Executive Officer (the “CEO”) of Cadence Design Systems, Inc. (the “Company”) and the individuals who are part of the senior executive staff and are designated as participants by the
Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) to participate in the Plan (collectively, the “Executives”) in order to improve the Company’s
profitability and achieve established corporate goals of the Company. Under the Plan, an Executive may be awarded for each fiscal year of the Company, or a portion thereof, a performance bonus, described in Section 4 hereof. 

 

	2.	 Eligibility. 

In addition to the CEO, those individuals who are part of the senior executive staff as determined by the Compensation Committee will be
eligible to participate in the Plan. Other than the CEO, no person is automatically entitled to participate in the Plan in any fiscal year, or portion thereof. Participation in the Plan during any fiscal year, or portion thereof, does not entitle an
individual to participate in the Plan or any similar plan in the future. 
  

	3.	 Administration of the Plan. 

The Plan will be administered by the Compensation Committee which will consist of at least two independent directors of the Company who are
intended to satisfy the applicable Nasdaq Stock Market listing requirements and the applicable rules of the U.S. Securities and Exchange Commission. The Compensation Committee will have the sole discretion and authority to: (i) administer and
interpret the Plan; (ii) designate participants for any given performance period; (iii) prescribe the terms and conditions of any awards granted under the Plan; (iv) adopt rules and guidelines for the administration of the Plan that
are consistent with the Plan; and (v) interpret, amend or revoke any such rules and guidelines. The decisions of the Compensation Committee will in every case be final and binding on all persons having an interest in the Plan. 

 

	4.	 Performance Bonus Amounts. 

For each fiscal year, the performance bonus amount payable to each Executive under this Section 4 will be based on a target bonus, in turn
based on one or more relevant performance criteria and the extent to which targets identified for such criteria are realized. The Compensation Committee will, for each fiscal year, approve the target bonus amount for each Executive, the relevant
performance criteria, the respective targets for such criteria, and the bonus amounts payable depending upon if and the extent to which such targets are realized, in accordance with the following rules: 

 

	 	(i)	 The relevant performance criteria may include, without limitation, either individually or in combination,
applied to the Company as a whole or to individual units thereof, and measured either absolutely or relative to a designated group of companies or relative to a pre-established target or a previous year’s
results (and in each case as specified on a GAAP or non-GAAP basis, if applicable): (a) cash flow (including 

	 	
measures of operating or free cash flow), (b) earnings per share (diluted or basic), (c) earnings per share from continuing operations, (d) earnings (including but not limited to
earnings before interest, taxes, depreciation and amortization), (e) return on equity, (f) total stockholder return, (g) return on capital, (h) return on assets or net assets, (i) revenue or revenue growth, (j) income or net
income, (k) operating income or net operating income, (l) operating profit or net operating profit, (m) operating margin, (n) return on operating revenue, (o) market share, (p) customer loyalty or satisfaction as
measured by a customer loyalty or satisfaction index determined by an independent consultant or expert in measuring such matters, (q) return on investment, (r) stock price, (s) market capitalization, (t) cash from operations,
(u) product innovation or release schedule, (v) capital expenditure , (w) working capital, (x) cost of capital, (y) cost reductions, (z) bookings and segments of bookings such as net product bookings, (aa) market
penetration, and (bb) technology development or proliferation. Notwithstanding the foregoing, the Compensation Committee retains discretion to select any other performance criteria that it deems appropriate, whether or not listed herein. The
performance criterion established for the performance period may consist of any objective or subjective Company-wide, unit or individual measures, whether or not listed herein. 

 

	 	(ii)	 The Compensation Committee may adjust any evaluation of performance under any performance criterion as it deems
appropriate including, without limitation, (A) to eliminate the effects of charges for restructurings, discontinued operations, extraordinary items and all items of gain, loss or expense determined to be extraordinary or unusual in nature or
related to the disposal of a segment of a business, or related to a change in accounting principle, all as determined in accordance with the applicable accounting provisions, as well as the cumulative effect of accounting changes; and (B) to
exclude any of the following events that occurs during a performance period: (i) asset write-downs, (ii) litigation, claims, judgments or settlements, (iii) the effect of changes in tax law or other such laws or provisions affecting
reported results, (iv) accruals for reorganization and restructuring programs and (v) accruals of any amounts for payment under this Plan or any other compensation arrangement maintained by the Company. 

 

	 	(iii)	 As determined by the Compensation Committee, in its sole discretion, any given performance criterion may be
measured over all or part of the fiscal year. The Compensation Committee will identify in writing the target bonus and the selected performance criteria and targets. If for any fiscal year the Compensation Committee determines to measure the
performance criterion over less than the entire fiscal year, then the performance bonus for the fiscal year will be the bonus calculated for such short performance period, or, if more than one performance period per fiscal year is involved, then the
sum of the bonuses calculated separately for each short performance period ending with or within the fiscal year. 

  

	 	(iv)	 The Compensation Committee may in its discretion direct that any performance bonus be reduced below the amount
as calculated above or decide that no payment will be made. Further, the Compensation Committee may in its discretion increase the amount of compensation otherwise payable to any Executive upon satisfaction of the designated targets.

  
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	5.	 The Payment of Bonuses. 

The bonus or bonuses for a fiscal year (including all short performance periods ending with or within such year) will be paid as soon as
practicable following the approval of such bonuses following the end of such year or short performance period, as the case may be (but in any event no later than the 15th day of the third month of the calendar year following the calendar year in
which the Executive’s right to payment ceased being subject to a substantial risk of forfeiture). Further, unless otherwise provided in a written agreement with an Executive, the Executive must be employed by the Company on the date that bonus
payments are distributed for a fiscal year or short performance period, as the case may be, or have terminated employment prior to that time solely on account of death or disability. If an Executive is entitled to payment of a performance bonus
under Section 4 hereof, but was not employed by the Company for the entire fiscal year or short performance period, as the case may be, he or she may, at the discretion of the Compensation Committee, receive a prorated amount of the bonus
amount payable as though he or she were employed for the entire year determined as follows: (i) if the performance period for such bonus is the entire fiscal year, the full year bonus amount will be multiplied by a fraction, the numerator of
which is the number of days the Executive was employed by the Company during the fiscal year and the denominator of which is the number of days in the entire fiscal year; or (ii) if the bonus for the fiscal year represents the bonus or sum of
bonuses computed separately for each short period within the fiscal year, then the bonus otherwise payable for each short period will be multiplied by a fraction, the numerator of which is the number of days the Executive was employed by the Company
during such short period and the denominator of which is the total number of days in such short period. 
  

	6.	 Amendment and Termination. 

The Compensation Committee may terminate or amend the Plan at any time, for any or no reason, including any amendment to the Plan in order to
adjust the amount of any Executive’s bonus payments. 
  

	7.	 Cadence Design Systems, Inc. Clawback Policy. 

All amounts earned under the Plan are subject to the Cadence Design Systems, Inc. Clawback Policy as in effect from time to time, a current
copy of which may be requested from the Company at any time, and the terms and conditions of which are hereby incorporated by reference into this Plan. 
  

	8.	 Section 409A of the Code. 

To the extent applicable, it is intended that this Plan and any awards granted hereunder either be exempt from the requirements of, or else
comply with the requirements of, Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and any related regulations or other guidance promulgated with respect to such Section by the U.S. Department
of the Treasury or the Internal Revenue Service. Any provision that would cause any award granted hereunder to incur additional taxes under Section 409A of the Code will have no force or effect until amended to comply with Section 409A of
the Code, which amendment may be retroactive to the extent permitted by Section 409A of the Code. 
  

	9.	 No Right to Employment, Reelection or Continued Service. 

Nothing in this Plan or a bonus granted hereunder will interfere with or limit in any way the right of the Company to terminate any
participant’s employment or service for the Company at any time or for any reason not prohibited by law, nor will this Plan or a bonus granted 

  
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hereunder, itself confer upon any participant any right to continue his or her employment or service for any specified period of time. Neither a bonus awarded hereunder nor any benefits arising
under this Plan will constitute an employment contract with the Company. 
  

	10.	 Unfunded Plan. 

The Plan is intended to be an unfunded plan. Participants are and will at all times be general creditors of the Company with respect to their
bonus awards, if any. If the Compensation Committee or the Company chooses to set aside funds in a trust or otherwise for the payment of bonuses under the Plan, such funds will at all times be subject to the claims of the creditors of the Company in
the event of its bankruptcy or insolvency. 
  

	11.	 Governing Law. 

The Plan and each award hereunder, and all determinations made and actions taken pursuant thereto, to the extent not otherwise governed by the
Code or the laws of the United States, will be governed by the laws of the State of Delaware and construed in accordance therewith without giving effect to principles of conflicts of laws. 

 

	12.	 Effective Date of Plan. 

The Plan will be effective as of February 5, 2019. 

  
 4February
8, 2019

 

By
email to Amanda Kabak

Dear Amanda Kabak:

 

Clean
Spark, LLC, (the “Company”), is pleased to offer you a promotion with the Company on terms described below.

1.  
Position. You are being offered a promotion from your current position
to the position of Chief Technical Officer and Principal Software Architect. Effective February 8, 2019.

2.  
Duties. You will be responsible for such duties as are normally associated
with such position and identified in a job description as outlined below. You will report directly to the Company’s CEO
and President.

Chief Technology
Officer:

		·	Assist
                                         the Company in designing, creating, managing and executing its strategic technology goals.

		·	Design
                                         refinement, development/improvement, integration, and testing of CleanSpark’s data

management, analytics,
intelligence, and automation software

		·	Documenting
                                         the above processes

		·	Other
                                         duties as needed or required:

		·	Software
                                         Development in line with the Solution Architecture such as

		·	Proficiency
                                         in design and implementation using WCF, Azure Event Hubs, Azure Service Bus, and Azure
                                         Service Fabric

		·	Familiarity
                                         and proficiency in decoupled data storage typology evaluation and implementation

		·	Requirements
                                         distillation and management

		·	Setting
                                         up communications with electrical/control equipment, configuring, and automating SCADA
                                         system configuration

		·	Designs
                                         & develops embedded systems consistent with cloud deployment

		·	Assist
                                         and advise the sales team of technical considerations for proposed projects.

		·	Demonstrating
                                         and presenting products

		·	Attending
                                         trade exhibitions, conferences and meetings

		·	Travel
                                         as needed to meet with clients and prospective clients

 

		4.	Compensation.

Base
Pay. Your annual base pay for this position will be $190,000 per year, paid weekly (effective February 1, 2019). All forms
of compensation referred to in this letter are subject to applicable withholding and payroll taxes.

Stock
Option Compensation: You will be allowed to participate in the Incentive Stock Option plan as outlined in Exhibit “A”.

Your job
description, base pay, duties and responsibilities may be modified from time to time in the sole discretion of the company.

5.  
Employment Status. This position is considered exempt status for federal
wage and hour purposes and is not eligible for overtime pay for hours worked in excess of 8 in a given workday or 40 hours per
week. Your employment status in this position will be full-time – regularly scheduled to work 30 or more hours per week.

6.  
Benefits. In addition to your base pay compensation, you will be eligible
to receive the benefits which are offered to Clean Spark, LLC employees which have been provided by the Company’s PEO, Ataraxis.

7.  
Confidentiality and/or Non-Compete. As an employee of Clean Spark, LLC,
you may be asked to sign a “Confidentiality” and/or a “Non-Compete” agreement as a condition of your employment.

    	 		 

    	 

    

 

 

8.  
Dispute Resolution. In the event of any dispute or claim relating to
or arising out of our employment relationship, you and the Company agree that (i) any and all disputes between you and the Company
shall be fully and finally resolved by binding arbitration, (ii) you are waiving all rights to a jury trial but all court remedies
will be available in arbitration, (iii) all disputes shall be resolved by a neutral arbitrator who shall first issue a written
opinion, (iv) the arbitration shall provide for adequate discovery, and (v) the Company shall pay all but the first $125 of the
arbitration fees. Please note that we must receive your signed Agreement before your first day of employment.

9.  
Employment Relationship. Employment with the Company is employment at-will.
Employment at-will may be terminated with or without cause and with or without notice at any time at the will of either you or
the Company. Terms and conditions of employment with the Company may be modified at the sole discretion of the Company with or
without cause and with or without notice. Other than the Company President, no one has the authority to make any agreement for
employment other than for employment at-will or to make any agreement limiting the Company's discretion to modify the terms and
conditions of employment. Only the Company President has the authority to make any such agreement and then only in writing and
signed by each of the Company President and the respective employee. No implied contract concerning any employment-related decision
or term or condition of employment can be established by any other statement, conduct, policy, or practice. As a new hire, your
performance will be reviewed after a ninety (90) day trial period, at which time your continued employment will be evaluated.
This trial period does not in any way modify the at-will status of your employment relationship with the Company.

10.   
Entire Agreement. If you accept this offer the provisions of this employment
offer letter contain the entire agreement of the parties relating to the subject matter and supersede all prior oral and written
employment agreements or arrangements between the parties. This Agreement cannot be amended or modified except by a written agreement
signed by you and the Company.

11.   
Representation. By signing below, you represent that your performance
of services to the Company will not violate any duty which you may have to any other person or entity (such as a present or former
employer), including obligations concerning providing services (whether or not competitive) to others, confidentiality of proprietary
information and assignment of inventions, ideas, patents or copyrights, and you agree that you will not do anything gin the performance
of services hereto that would violate any such duty.

12.   
Expiration. This offer of employment, if not previously accepted by
you, will expire seven days from the date of this letter, although additional time for consideration of the offer can be made
available if you find it necessary.

Should you
have any questions, please do not hesitate to contact me at zach@cleanspark.com

If you wish
to accept this offer, please sign and date this letter and return it to the Company within seven days.

We
look forward to your acceptance and to having you as part of the Clean Spark, LLC team!

Sincerely,

 

Zachary
Bradford President and CFO

 

Accepted
and Agreed:

 

		/s/ Amanda Kabak	 	February 8, 2019
	 	Name: Amanda Kabak	 	Date

  

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Exhibit A

 

STOCK OPTION COMPENSATION

 

You will be granted
Incentive Stock Options to purchase $100,000 in shares of CleanSpark Inc. Common Stock (CLSK) for each annual period you are with
the Company. The Incentive Stock Options will be issued under the Company’s 2017 Incentive plan and will be subject to all
rights and restrictions outline in the plan.

1/12 of the total options
will be granted on the first day of each month and will carry a strike price equal to the closing price of our common stock as
quoted on OTCmarkets (or higher exchange in the case of an up list) on the last day of the prior month.

Granted options
will fully vest on the last day of each month.

Stock Compensation may be renegotiated annually.

    	 	3

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