Document:

EX-10.2

 Exhibit 10.2 
  

 
 2019 RLHC Executive Officers Bonus Plan 

Purpose 
 RLHC is committed to compensating employees
through comprehensive and competitive pay packages that include base salary, bonus programs, incentive plans, competitive benefits plans, and reward and recognition programs. These programs are designed to motivate employees to exceed performance
expectations in support of the company’s business objectives. 
 The Executive Officers Bonus Plan (“Plan”) provides the opportunity for
annual bonus payments to the contributors who drive the successful attainment of company goals. The success of the company relies on many factors. Adjusted EBITDA is the main driver behind this plan, however; our success also depends on department
and individual goals. 
 Plan Year January 1, 2019 to December 31, 2019 

Eligible Employees; Target Bonus and Maximum Bonus 
  

									
	 Eligible Employees
	  	Minimum
Bonus	 	Threshold Bonus	 	Target Bonus	 	Maximum
Bonus
	 Executive Vice President
	  	0% of Base
Salary	 	25% of Base
Salary	 	50% of Base
Salary	 	80% of Base
 Salary

	 EVP, Chief Operating Officer
	  	0% of Base
Salary	 	30% of Base
Salary	 	60% of Base
Salary	 	96% of Base
Salary
	 EVP, Chief Financial Officer
	  	0% of Base
Salary	 	35% of Base
Salary	 	70% of Base
Salary	 	112% of Base
Salary
	 EVP, President of Global Development
	  	0% of Base
Salary	 	40% of Base
Salary	 	80% of Base
Salary	 	128% of Base
Salary
	 Chief Executive Officer
	  	0% of Base
Salary	 	50% of Base
Salary	 	100% of Base
Salary	 	160% of Base
Salary

 An employee must hold one of the above positions at the beginning of the Plan Year to be eligible to participate in this Plan,
unless otherwise approved by the Compensation Committee. Transfers to an ineligible position that occurs after the Plan Year will not affect any bonus earned during the Plan Year. Position transfers that occur during the Plan year may result in a pro-rated bonus amount for each position based upon the target bonus amount, the achievement of bonus criteria for each position and the discretion of the Compensation Committee. 

Plan Components 
 Whether a participant will receive a
bonus under the Plan depends on the extent to which the following goals are achieved: 
  

	 	(1)	 A company goal based on target Adjusted EBITDA for 2019 (“Target Adjusted EBITDA”); and

	 	(2	 One or more department or individual goals based on applicable division or department performance such as gross
operating profit; revenues from group business; RevPAR growth; increase in RevPAR index; improvement in customer service competitive quality index; associate engagement; and addition of franchised and managed hotels to RLHC’s system of hotels
and other goals that advance department or company strategic goals and/or personal development. The department and individual goals are established by the CEO and Compensation Committee. 

 

 
  

 Bonus Calculation 

For purposes of determining the bonuses, if any, due under this Plan for achievement of the Target Adjusted EBITDA (“EBITDA Goal Achievement”), the
calculation will be the fraction (expressed as a percentage) determined by dividing (i) RLHC’s 2019 Adjusted EBITDA, as disclosed in the 2019 Form 10-K by (ii) 2019 Target Adjusted EBITDA approved by
the Board on February 7, 2019. Neither the 2019 Adjusted EBITDA as disclosed, nor the Target Adjusted EBITDA shall be further adjusted for hotel sales, dispositions or acquisitions. There will be no bonus payout to the participants under this
calculation unless this percentage exceeds 90%. 
 The EBITDA Goal Achievement percentage will determine the tentative payouts, if any, to which the
participants are entitled, as set forth in or determined from the following applicable table: 
  

																													
	 	  	EBITDA
Goal
Achievement	 	 	Target
Multiplier(1)	 	 	Tentative
EVP Payout:
% of base
salary	 	 	Tentative
EVP, COO
Payout:
% of base
salary	 	 	Tentative
EVP, CFO
Payout:
% of base
salary	 	 	Tentative
EVP, PGD
Payout:
% of base
salary	 	 	Tentative
CEO
Payout:
% of base
salary	 
	 Maximum
	  	 	120	% 	 	 	160	% 	 	 	64	% 	 	 	76.8	% 	 	 	89.6	% 	 	 	102.4	% 	 	 	128	% 
		  	 	115	% 	 	 	145	% 	 	 	58	% 	 	 	69.6	% 	 	 	81.2	% 	 	 	92.8	% 	 	 	116	% 
		  	 	110	% 	 	 	130	% 	 	 	52	% 	 	 	62.4	% 	 	 	72.8	% 	 	 	83.2	% 	 	 	104	% 
		  	 	105	% 	 	 	115	% 	 	 	46	% 	 	 	55.2	% 	 	 	64.4	% 	 	 	73.6	% 	 	 	92	% 
	 Target
	  	 	100	% 	 	 	100	% 	 	 	40	% 	 	 	48	% 	 	 	56	% 	 	 	64	% 	 	 	80	% 
		  	 	97.5	% 	 	 	87.5	% 	 	 	35	% 	 	 	42	% 	 	 	49	% 	 	 	56	% 	 	 	70	% 
		  	 	95	% 	 	 	75	% 	 	 	30	% 	 	 	36	% 	 	 	42	% 	 	 	48	% 	 	 	60	% 
		  	 	92.5	% 	 	 	62.55	% 	 	 	25	% 	 	 	30	% 	 	 	35	% 	 	 	40	% 	 	 	50	% 
	 Threshold
	  	 	90	% 	 	 	50	% 	 	 	20	% 	 	 	24	% 	 	 	28	% 	 	 	32	% 	 	 	40	% 

 (1) The Target Multiplier and tentative payout percentages will be linearly interpolated for EBITDA Goal Achievement
percentages that are between any two percentages shown in the table. 
 The goal payout has two elements, EBITDA performance and hotel sales and
departmental/individual goals. The ratio of payouts is as follows: 
  

	 	1.	 EBITDA—represents 80% of the bonus payout, as is reflected in the chart above.

  

	 	2.	 Department/Individual goals—represents 20% of the bonus payout. To the extent the
department/individual goals are met, as determined collaboratively between the CEO and the Compensation Committee, then up to 20% of the target bonus is paid to eligible participants, up to a maximum of 32% of the target bonus if
department/individual goals are exceeded. 

 The minimum threshold to receive any bonus payout under this Plan is the 90% EBITDA target.
Failure to meet this threshold will result no bonus payment under this Plan. 
 Bonus payouts in excess of 100% are possible (up to 160%), if the EBITDA
goal is exceeded and/or Department/Individual Goals are exceeded, as determined by the Compensation Committee. 
 A participant who receives a bonus under
the Plan will be required to repay the bonus to RLHC to the extent required by (i) any “clawback” or recoupment policy adopted by RLHC to comply with the requirements of any applicable laws, rules or regulations, or (ii) any
applicable law, rule or regulation that imposes mandatory recoupment. 
 Administration 

The VP, HR, and CFO will administer the Plan. 
 Calculation,
Approval and Payment 
 As soon as the necessary information is available following the end of the Plan Year, the VP HR and the SVP, Chief Accounting
Officer will complete the bonus calculations for each participant and submit them to the CFO for review and 

 

 
  

 
approval including a review and recommendation by the CEO of the achievement of department and individual goals. Once approved by the CFO, she will submit the bonus calculations to the
Compensation Committee for final approval. Upon Compensation Committee approval, the CFO will provide the payment information to the SVP, Chief Accounting Officer and VP, HR for recordkeeping, who will in turn submit it to the payroll office for
payments. Payments will be made to participants as soon as administratively possible following the end of the bonus period. Typically, payments are approved following the February Board meeting and paid as soon as practical thereafter. Calculations
are based on the base salary of the participant on the last day of the Plan Year. 
 Effect of Change in Employment Status/Termination 

Leaves of Absences: To the extent a participant qualifies for an approved leave of absence, that participant’s bonus will not be forfeited, but
rather will be prorated. If the leave involves accrued paid leave, the bonus will be unaffected. If the leave involves unpaid leave, the bonus will be prorated based upon the actual number of days worked plus any paid leave as a proportion of the
full Plan Year. 
 Terminations: Bonuses for this Plan are not earned or vested until they are approved by the Compensation Committee and paid. Any
bonuses earned will be determined and paid on or before March 31, 2020. To encourage continued employment with RLHC, participants must be employed as of the date of payout in order to earn a bonus. Therefore, any participant whose employment
terminates prior to the date of payout will not earn, vest in, or receive a bonus. 
 General Provisions 

There is an overriding discretionary analysis of each participant’s eligibility to receive a bonus. Even though an individual might earn a bonus based on
the terms of this Plan, a bonus can be adjusted up or down or not paid entirely in the sole discretion of the Compensation Committee Directors. For example a bonus may be adjusted down for overall substandard work performance of the participant,
including, but not limited to the below. For example, if a participant fails to follow company policy and procedures, exposes the company to legal liability, exhibits inappropriate behavior, withholds information, or does not adequately follow
through on critical incidents, he or she may be disqualified from receiving a bonus. Other disqualifiers may include unacceptable performance against established performance objectives, unacceptable scores on internal audit processes (e.g., HR,
Accounting, Risk Management, Internal Audit, Quality Assurance), or poor associate or customer satisfaction scores. 
 Notwithstanding anything to the
contrary in this Plan, individual bonus payments may be deferred, partially paid or withheld in their entirety, at the sole discretion of the Compensation Committee, in consideration of the overall best interests of the company. RLHC reserves the
right to cancel, change, modify or interpret any and all provisions of the Plan at any time without notice. Participation in the Plan does not create any entitlement to continued employment and does not alter the
at-will status of participants. This Plan will be governed and construed in accordance with the laws of the state of Washington. 

This Plan supersedes all previous plans in existence and any past written or verbal communication to any participant regarding the terms of any incentive
plan.BTCS
Inc.

9466
Georgia Avenue #124

Silver
Spring, Maryland 20901

 

May
28, 2019

 

Cavalry
Fund I LP

61
Kinderkamack Rd.

Woodcliff
Lake, New Jersey 07677

Attention:
Thomas Walsh

 

Re:
Equity Line Purchase Agreement dated as of May 13, 2019

 

Dear
Thomas:

 

This
documents our understanding regarding that certain Equity Line Purchase Agreement dated as of May 13, 2019 (the “Agreement”)
and your ability to assign your rights under the Agreement. BTCS Inc. and Cavalry Fund I LP hereby agree to amend the Agreement
as provided below.

 

Section
9(g) and 9(h) of the Agreement shall be replaced in their entirety with the following:

 

Section
9(g) “Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Company and the
Investor and their respective successors. Neither this Agreement nor any rights of the Investor or the Company hereunder may be
assigned by either party to any other Person.”

 

Section
9(h) “No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective
permitted successors, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except that
each Indemnitee shall have the right to enforce the obligations of the Company with respect to Section 9(j).”

 

The
remaining terms and conditions of the Agreement shall remain the same. If you agree with the foregoing, please indicate so below.

 

	 	Sincerely,
	 	 
	 	 /s/ Charles
    Allen 
	 	Charles
    Allen, CEO of BTCS Inc.

 

Cavalry
Fund I LP hereby agrees to the foregoing.

 

	Cavalry
    Fund I LP
	 	 	 
	By:	Cavalry
    Fund I Management LLC	 
	Its:	General
    Partner	 

 

	By:	/s/
                                         Thomas Walsh

	 
	 	Thomas
    Walsh, Managing Partner

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