Document:

Document

CONTRACT FOR PURCHASE AND
SALE OF REAL PROPERTY

This Contract for the Purchase and Sale of Real Property (the “Agreement”) is made by and between Mayflower Vehicle Systems, LLC, a Delaware limited liability company (“Seller”), and Warren Distribution, Inc., a Nebraska corporation (“Buyer”), on the date of final signature, as indicted below (the “Effective Date”).  The Property shall be free and clear of any and all personal property, equipment, machinery, debris, or other items notwithstanding fixtures, whether belonging to Seller or other, prior to Buyer’s purchase. 

RECITALS

Whereas, the Seller wants to sell and the Buyer wants to buy the real property described herein based on the conditions and limitations as expressed herein;

Now, therefore, for the consideration set forth below, the Seller and Buyer, intending to be legally bound, set forth as follows:

		
	1.
	PROPERTY 

		
	A.
	The Buyer agrees to buy and the Seller agrees to sell and convey, on the terms hereinafter provided, certain real property located at 60581 State Route #7, Shadyside, Ohio, comprised of Belmont County tax parcels 17-01993.000; 17-01994.000 and 17-01995.000, all as more particularly described on Exhibit A attached hereto, together with all easements, tenements, hereditaments and appurtenant rights pertaining thereto together (the “Property”) excepting therefrom however, all of its undivided interest in the oil, gas, constituents and other minerals in, under, and that may be produced from the Property at all depths including but not limited to its rights under that certain oil and gas lease dated November 21, 2013 with Gulfport Energy Corporation (“OG Lease”), attached hereto as Exhibit B.  

		
	2.
	PURCHASE

		
	A.
	Purchase Price. The purchase price (the “Purchase Price”) shall be Two Million Five Hundred Thousand Dollars ($2,500,000.00) payable by cash or wire transfer of immediately available funds at closing of the purchase and sale described herein, which shall be after September 30, 2017 but prior to October 30, 2017 or such earlier date agreed to by Buyer and Seller (the “Closing”).  

		
	B.
	Earnest Money. Within 5 business days following the execution of this Agreement, Buyer shall pay to Coventry Title Agency, Inc. (“Title Agent”) One Hundred Thousand Dollars ($100,000.00) as earnest money (the “Earnest Money”) hereunder.  If Buyer exercises its right to terminate this Agreement pursuant to the provisions 

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of Section 3, the Earnest Money shall be paid to Buyer.  At Closing, all Earnest Money will be applied to the Purchase Price set forth in this Section 2.

		
	C.
	Information. Within ten (10) days of the Effective Date, Seller agrees to deliver to Buyer all information in Seller’s possession or control relating to the leasing, operating, maintenance, repair, zoning, platting, engineering, soil tests, water tests, environmental tests, construction (including the certificate of occupancy for the Property), and the like regarding the Property.

		
	3.
	INSPECTION      

		
	A.
	Buyer’s Inspections. For seventy-five (75) days following the Effective Date of this Agreement (the “Contingency Period”), Buyer has the right, at its own expense, to conduct any sampling, including soil, groundwater or surface water sampling, survey, environmental study, topography study, structural inspection, termite inspection or any other evaluation of the real property or structures as Buyer, in Buyer’s sole discretion, may elect to conduct; Buyer’s right to conduct the foregoing may be exercised by engineers, surveyors, consultants,  inspectors or other examiners.  All such inspections and studies shall be upon reasonable advance notice, subject to Seller’s consent, which shall not be unreasonably withheld, and conducted in a fashion that does not unreasonably disturb the Property or Seller’s operations.  Buyer’s entry upon the Property shall be made in strict accordance with and adherence to Seller’s reasonable conditions, as well as Seller’s reasonable confidentiality and security procedures.  All such activities performed by or for Buyer shall be non-destructive to the Property.  Buyer shall promptly restore the Property to its condition existing immediately prior to any inspection.  Buyer shall keep the Property free from all liens and claims arising out of any such entry by Buyer, or persons employed by Buyer, and shall indemnify, defend and hold harmless Seller from and against liens or other claims which may arise as a result of such entry onto the Property.

		
	B.
	Inspection Satisfaction. If Buyer is not, in good faith, satisfied with the condition of the Property as disclosed by any inspection thereof, Buyer at its sole discretion must either (i) elect to proceed with this Agreement and purchase the Property as contemplated herein; or (ii) terminate this Agreement whereby this Agreement shall terminate and become null and void and the Earnest Money shall be returned to Buyer.  Failure to give Seller written notice shall be deemed Buyer’s election to proceed with this Agreement and purchase the Property.  Provided, however, that prior to the expiration of the Contingency Period, Buyer may deliver to Seller a written request that the Seller remedy any unsatisfactory conditions. In the event that Buyer and Seller do not reach agreement regarding remedying the unsatisfactory conditions prior to the expiration of the Contingency Period, then Buyer shall have the right to elect to proceed or terminate this Agreement as set forth above.

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4.TITLE INSURANCE, SURVEY AND CLOSING COSTS   

		
	A.
	Title Insurance. Within 5 business days following the Effective Date of this Agreement, Seller shall order from Title Agent a Commitment for Title Insurance (“Commitment”), which Commitment shall be for an ALTA extended coverage owner’s title insurance policy (the “Owner’s Policy”) on the Property to Buyer. The Commitment shall be in the amount of the Purchase Price, shall show Seller as owner of fee simple title to the Property, and it shall obligate the title insurer to issue coverage to Buyer promptly upon closing Owner’s Policy. In addition to the Commitment, Title Agent shall simultaneously deliver to Buyer legible copies of all documents identified in Part Two of Schedule B of the Commitment, as well as copies of all vesting documents. If such Commitment contains any title exceptions which are not acceptable to Buyer, in its sole discretion, then Buyer may notify Seller of any unacceptable exceptions to which it objects within twenty (20) days of receipt of the Commitment. If Buyer fails to so notify Seller of any unacceptable exceptions to which it objects within such twenty (20) day period, then all exceptions set forth in Schedule B of the Commitment shall be deemed accepted by Buyer and shall constitute “Permitted Exceptions.” Buyer acknowledges that Seller is not transferring its ownership interest in the OG Lease attached hereto as Exhibit B and subject to the terms of Section 14C, Buyer agrees that the OG Lease is a Permitted Exception.  If Buyer timely notifies Seller of any unacceptable exceptions to title within the above stated time frame, Seller, in Seller’s sole discretion, shall have twenty (20) days from the date Seller receives notice of such unacceptable exceptions to remove or cure such exceptions. Seller shall be deemed to have given notice to Buyer that Seller refuses to cure any unacceptable exceptions, which Seller may so do in its sole discretion, unless Seller, within ten (10) days after receipt of notice from Buyer, shall notify Buyer in writing that Seller will attempt to cure such unacceptable exceptions. If Seller fails to give written notice to Buyer that it will attempt to cure such unacceptable exceptions or refuses to cure said unacceptable exceptions within the time period above provided, Buyer may (a) terminate this Agreement within ten (10) days after Seller gives notice, or is deemed to have given notice, that Seller refuses to cure such unacceptable exceptions and the Earnest Money shall be returned to Buyer, or (b) if Buyer fails to so terminate, Buyer shall be deemed to have waived such exceptions and accept title subject thereto. Notwithstanding the foregoing, Seller, at its cost, shall be obligated to cure or remove by Closing, all mortgages, deeds of trust and other monetary liens against the Property. Buyer will be responsible for the cost of said title commitment and title policy.  

		
	B.
	Survey.  Seller shall cause, at Seller’s sole cost and expense, a certified ALTA/ACSM Land Title Survey of the Property (the “Survey”) to be completed by a surveyor licensed in the State of Ohio and delivered to Title Agent and Buyer within thirty (30) days of the date of this Agreement, whereupon the legal description of the Survey shall control over the legal description in Exhibit A attached hereto to the extent they 

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may be inconsistent. The Survey shall meet the Minimum Standard Requirements for ALTA/ACSM Land Title Surveys. The Survey shall set forth the legal description and boundaries of the Property and all easements, encroachments and improvements thereon.

		
	C.
	Exceptions. If the Survey reveals any exceptions to title or any matters affecting the Property which are not acceptable to Buyer (“Survey Exceptions”), Buyer may notify Seller of such Survey Exceptions within twenty (20) days after Buyer’s receipt of the Survey (the “Survey Notice”), whereupon Seller may, at Seller’s option, cure any disapproved Survey Exceptions. If Seller fails to cure any Survey Exceptions referenced in the Survey Notice within the Contingency Period, Buyer shall have the option to terminate this Agreement by delivering written notice thereof to Seller.  In the event Buyer fails to notify Seller of any Survey Exceptions, Buyer shall be deemed to have accepted the Survey and any matters set forth thereon shall be considered Permitted Exceptions.

		
	D.
	Closing Costs. Seller shall be responsible for any documentary stamps, surtax, or transfer taxes and any escrow or recording fees. If Seller or Buyer elect to utilize a broker, each party is individually responsible for any and all broker costs. Any additional costs associated with closing not mentioned herein shall be split in the normal and customary way for properties of this type located in the local market.  

5.EASEMENTS, ACCESS RIGHTS

		
	A.
	Buyer and Seller shall cooperate to secure any and all easements, rights of way, consents, amendments, variances, permits and or approvals from third parties as are necessary in order to permit Buyer to have ingress and egress to and full use and enjoyment of the Property in the manner and for the purposes contemplated by Buyer.

6.TAX PRORATIONS, PRORATIONS RISK OF LOSS

		
	A.
	Taxes. All real property taxes and assessments (the “Taxes”) (including penalties thereon) which are delinquent shall be paid at Closing out of funds due Seller. Any non-delinquent Taxes, as determined on the date of Closing, are to be prorated between the Seller and Buyer as of midnight on the date of Closing, any special assessments that have been incurred upon the Property shall also be prorated as of the date of Closing.  

		
	B.
	Utilities. All water, sewer and utility charges shall be prorated as of the date of Closing.

		
	C.
	Risk of Loss. Prior to Closing, any risk of loss is borne 100% by the Seller, after the Closing, any risk of loss is borne 100% by the Buyer.  As such, if Seller shall be unable to complete Closing due to loss or damage to the Property from fire, wind, flood or other peril or act of god, this Agreement shall be terminated and Seller shall 

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not be held in default of said Agreement and Buyer shall not be entitled to any insurance or other benefits related to the loss.

7.CLOSING AND POSSESSION, DEED 

		
	A.
	Deed. The Property deed shall be delivered and possession thereof taken by Buyer at Closing.  Seller shall convey fee simple title to Buyer by Limited Warranty Deed (the “Deed”), and Buyer shall accept fee simple title to the Property in accordance with the terms of this Agreement, subject only to the Permitted Exceptions.        

		
	B.
	Contingent Obligations. In addition to the satisfaction or waiver of the Contingencies, Buyer’s obligations under this Agreement are subject to and contingent upon the occurrence of the following on or before the date of Closing: (a) all of Seller’s representations and warranties hereunder shall be true and correct in all material respects as of the date of Closing; (b) no moratorium, statute, order, regulation, ordinance or judgment of any court or governmental agency shall have been enacted, adopted, issued or initiated that would materially and adversely affect the Property or Buyer’s use thereof as contemplated herein; and (c) the parties shall have delivered all other documents and other deliverables listed in Sections 8  and 9 hereof.

        
8.SELLER’S OBLIGATIONS AT CLOSING  

At Closing, Seller shall do the following:

		
	A.
	Execute, acknowledge, and deliver to Buyer the Deed (at Seller’s sole cost) as described in Section 7A.

		
	B.
	Deliver to the title company evidence satisfactory to it of Seller’s authority to execute and deliver the documents necessary or advisable to consummate the transaction contemplated hereby.

		
	C.
	Execute such other documents, resolutions, or instruments as may reasonably be required by Buyer or the title company or required by this Agreement to effectuate the agreement memorialized herein, including without limitation a statement that the representations in Section 13 remain true and accurate as of Closing.

		
	9.
	BUYER’S OBLIGATIONS AT CLOSING

Contemporaneously with the performance by Seller of its obligations set forth in Section 8 above, Buyer shall at Closing do the following:

		
	A.
	Pay the Purchase Price, subject to adjustments provided for herein.

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	B.
	Execute and/or deliver any such other documents, resolutions, or instruments reasonably required by Seller or the title company or required by this Agreement to effectuate the agreement memorialized herein.

                            
10.CONDITIONS TO BUYER’S OBLIGATIONS AT CLOSING

Buyer’s obligation to perform under this Agreement is contingent upon the following: 

		
	A.
	Seller’s representation and warranties contained herein shall be true and correct as of the date of Closing; and

		
	B.
	Seller shall have made reasonable efforts to remove the property, equipment, and machinery from the Property in accordance with the estimated timeline of work and property removal (“Timeline”), attached and incorporated hereto as Exhibit C. Seller shall take reasonable  measures to prevent damage to the Property while removing property therefrom. Should substantial damage to the Property occur during Seller’s removal of property, equipment, or machinery, which renders an area of the Property unusable for Buyer’s operations, Seller shall return the effected Property to usable condition within thirty (30) days of damage occurrence. The foregoing obligation to repair Property to usable condition shall apply only to damage that occurs following Closing.

		
	a.
	For clarity, Seller shall have additional time following Closing to continue its work removing all property, equipment, and machinery from the Property, as reflected in the Timeline. However, the anticipated work and corresponding dates as found within the Timeline are in addition to all other obligations or responsibilities of Seller as set forth in this Agreement. Timeline does not release Seller of any other obligations or responsibilities as contained within this Agreement. Should Seller’s property, equipment, or machinery not be completely removed from the Property, and the Property left in usable condition, by December 22, 2017 or as reasonably possible thereafter (but in no event greater than thirty (30) days following the estimated removal date of December 22, 2017), Buyer may take any means it deems reasonably necessary to remove and dispose of all remaining property, equipment, and machinery from the Property at the sole expense of Seller. The Parties agree and understand that the Property must be free and clear of all property, equipment, and machinery by the estimated date of December 22, 2017 to allow Buyer to fully conduct its business operations. 

11.FAILURE OF PERFORMANCE

		
	A.
	If for any reason other than the failure or fault of Buyer to proceed with the Closing, Seller fails, neglects or refuses to perform this Agreement, the Buyer may seek 

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specific performance or pursue an action for damages.  If for any reason other than the failure or fault of Seller to proceed with the Closing or for unsatisfactory environmental or other inspections as contemplated above, Buyer fails, neglects or refuses to perform this Agreement, the Seller may retain the Earnest Money Deposit as liquidated damages.  Should legal action be required in any dispute arising from this Agreement, the prevailing party shall be entitled to recover of its attorneys’ fees and all costs associated with the same.

NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY SPECIAL OR PUNITIVE DAMAGES, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE OR STRICT LIABILITY), OR ANY OTHER LEGAL OR EQUITABLE PRINCIPAL OR THEORY.

12.NOTICES

		
	A.
	Any notice to be given or to be served upon any party hereto in connection with this Agreement must be in writing, and may be given by certified mail, or overnight receipt delivery service, and shall be deemed to have been given and received when a certified letter containing such notice, properly addressed, with postage prepaid, is deposited in the United States mail; and, if given otherwise than by certified mail, it shall be deemed to have been given when delivered to and received by the party to whom it is addressed.   Such notices shall be given to the parties hereto at the following addresses:

FOR SELLER:        Commercial Vehicle Group
Attn: General Counsel
7800 Walton Parkway
New Albany, OH 43054

FOR BUYER:            Warren Distribution, Inc.
Attn: General Counsel
 950 S. 10th St., Suite 300
Omaha, Nebraska  68108

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13.SELLER’S REPRESENTATIONS AND WARRANTIES 

As a material inducement to the execution and delivery of this Agreement by Buyer and the performance by Buyer of its duties and obligations hereunder, Seller does hereby warrant and represent to Buyer as follows as of the Effective Date of this Agreement.  The term “Knowledge” as used in this section shall mean knowledge based on Seller’s actual knowledge as of the Effective Date of this Agreement without the need for diligent inquiry or investigation.    
 

		
	A.
	Information. To Seller’s Knowledge, Seller has provided Buyer with any and all information in Seller’s possession or control relating to operating, maintenance, repair, zoning, platting, engineering, soil tests, water tests, environmental tests, construction, and the like regarding the Property. 

		
	B.
	Legal Compliance. Except as disclosed to Buyer, Seller has no Knowledge of any past or continuing violation or alleged violation of any legal requirement affecting the Property; including, without limitation, any past or continuing violation or alleged violation of any local, state or federal environmental, zoning, subdivision, fire or other law, ordinance, code, regulation, rule or order. In addition to the foregoing, the Seller has no Knowledge that the Property fails to comply with any applicable building and zoning codes or any other laws, statutes, codes ordinances, rules and regulations relating to the environment, except as otherwise disclosed to Buyer.

		
	C.
	Litigation. Seller has no Knowledge of any pending or threatened claims, actions, suits, litigation or governmental proceeding affecting the Property.

		
	D.
	Governmental Actions. Seller has no Knowledge of any threatened or pending condemnation or eminent domain proceeding, special assessment, rezoning or moratorium affecting the Property.

		
	E.
	Due Authorization.  Seller has full power to execute, deliver and carry out the terms and provisions of this Agreement and has taken all necessary action to authorize the execution, delivery and performance of this Agreement. The individual executing this Agreement on behalf of Seller has the authority to bind Seller to the terms and conditions of this Agreement.

		
	F.
	BUYER HEREBY ACKNOWLEDGES THAT AS OF CLOSING, BUYER WILL HAVE THOROUGHLY INSPECTED THE PHYSICAL CONDITION OF THE PROPERTY AND THE STATUS OF TITLE TO THE EXTENT DEEMED NECESSARY BY BUYER IN ORDER TO ENABLE BUYER TO EVALUATE THE PURCHASE OF THE PROPERTY.  BUYER FURTHER ACKNOWLEDGES AND AGREES THAT, EXCEPT FOR THE REPRESENTATIONS AND 

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WARRANTIES SET FORTH IN THIS AGREEMENT, BUYER IS RELYING SOLELY UPON THE INSPECTION, EXAMINATION AND EVALUATION OF THE PHYSICAL CONDITION OF THE PROPERTY BY BUYER AND THAT BUYER IS PURCHASING AND AT CLOSING WILL ACCEPT, THE PROPERTY ON AN “AS-IS”, “WHERE IS” AND “WITH ALL FAULTS” BASIS.

		
	14.
	SELLER’S COVENANTS PRIOR TO CLOSING

		
	A.
	Relayed Information. Any time prior to closing, if Seller receives any notice, knowledge or information relating to the leasing, operating, maintenance, repair, zoning, platting, engineering, soil tests, water tests, environmental tests, construction, and the like regarding the Property, other than as previously disclosed by Seller to Buyer, Seller agrees to provide to Buyer all such information immediately upon receipt of same.  

		
	B.
	Environmental Matters. Any time prior to Closing, if Seller receives notice, knowledge or information as to the presence, alleged presence, release or threatened release of Hazardous Materials (as defined below) on or about the Property other than as previously disclosed by Seller to Buyer, Seller agrees to provide to Buyer all information and data as to such Hazardous Materials immediately upon receipt of same. “Hazardous Materials” includes oil and petroleum products, asbestos, polychlorinated biphenyl, radon and urea formaldehyde, and any other materials classified as hazardous or toxic or as pollutants or contaminants under any environmental law.

		
	C.
	OG Lease and Rights.  Seller has informed Buyer that Seller has entered into the OG Lease relating to the Property.  Seller agrees that Seller shall not amend the OG Lease granting any surface rights on the Property to Gulfport Energy Corporation without the express written consent of Buyer or its successors or assigns, which may be withheld in Buyer’s reasonable discretion. 

15.    MISCELLANEOUS PROVISIONS

		
	A.
	Severability. If any term or provision of this Agreement or the application thereof to any person or circumstance shall to any extent be determined to be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term or provision to persons or circumstance other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.

		
	B.
	Entire Agreement. This writing contains the entire agreement between the parties hereto, and no agent, representative, salesperson or officer of Buyer hereto have authority to make or has made any statement, agreement or representation, whether 

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oral or written, in connection herewith, modifying, adding or changing the terms and conditions herein set forth.  No modification of this Agreement shall be binding unless such modification shall be in writing and signed by the parties hereto. 

		
	C.
	 Governing Law. This agreement shall be construed in accordance with the laws of the State of Ohio.

		
	D.
	Binding Effect. This agreement shall be binding upon, and inure to the benefit of the parties hereto and their successors and assigns.

		
	E.
	Superseding Effect of this Agreement. The Buyer and Seller hereby agree that this Agreement supersedes all prior agreements of the parties. To the extent that any conflict exists between the Letter of Intent and this Agreement, the language of this Agreement shall prevail.

[Remainder of this page intentionally left blank; Signature page follows]

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This Agreement shall be effective on the date of last signature, set forth below (“Effective Date”).

BUYER

WARREN DISTRIBUTION, INC.
                        

By: /s/ Rebecca Fox_____________
                        
Its:  _SVP & General Counsel_____________
                    
Date: July 24, 2017
                            

SELLER

MAYFLOWER VEHICLE SYSTEMS, LLC

By:  /s/ Patrick Miller___________
                        
Its: President 
                        
Date: July 21, 2017

11Exhibit

Exhibit 10.1
EHEALTH, INC.
EXECUTIVE BONUS PLAN
1) Purposes of the Plan. The Plan is intended to increase shareholder value and the success of the Company by motivating key executives to: (1) perform to the best of their abilities, and (2) achieve the Company’s objectives. The Plan’s goals are to be achieved by providing such executives with incentive awards based on the achievement of goals relating to the performance of the Company or upon the achievement of individual performance goals. 
2) Definitions.
“Award” means, with respect to each Participant, the award determined pursuant to Section 8(a) below for a Performance Period. Each Award is determined by a Payout Formula for a Performance Period, subject to the Committee’s authority under Section 8(a).
“Base Salary” means as to any Performance Period, the Participant’s annualized salary rate as of the time the Committee approves a Participant’s participation in the Plan for any Performance Period.  Such Base Salary may be pro-rated to reflect changes in a Participant’s annualized salary rate during a Performance Period. Such Base Salary shall be before both (a) deductions for taxes or benefits, and (b) deferrals of compensation pursuant to Company-sponsored plans.
“Board” means the Board of Directors of the Company.
“Code” means the Internal Revenue Code of 1986, as amended.
“Committee” means the Compensation Committee of the Board.
“Company” means eHealth, Inc. or any of its subsidiaries (as such term is defined in Code Section 424(f)).
“Fiscal Quarter” means a fiscal quarter of the Company. 
“Fiscal Year” means a fiscal year of the Company.
“Participant” means senior management of the Company participating in the Plan for a Performance Period.
“Payout Formula” means as to any Performance Period, the formula or payout matrix established by the Committee pursuant to Section 7 in order to determine the Awards (if any) to be paid to Participants. The formula or matrix may differ from Participant to Participant.
 “Performance Goals” means the goal(s) (or combined goal(s)) determined by the Committee (in its discretion) to be applicable to a Participant with respect to an Award. As determined by the Committee, the performance measures for any Performance Period will be any one or more of the following performance criteria, applied to either the Company as a whole or, except with respect to stockholder return metrics, to a region, business unit, affiliate or business segment, and measured either on an absolute basis or relative to a pre-established target, to a previous period’s results or to a designated comparison group, and, with respect to financial metrics, which may be determined in accordance with United States Generally Accepted Accounting Principles (“GAAP”), in accordance with accounting principles established by the International Accounting Standards Board (“IASB Principles”) or which may be adjusted when established to exclude any items otherwise includable under GAAP or under IASB Principles: (i) cash flow (including operating cash flow or free cash flow), (ii) revenue (on an absolute basis or adjusted for currency effects), (iii) gross margin, (iv) operating expenses or operating expenses as a percentage of revenue (including or excluding stock-based compensation), (v) earnings (which may include earnings before interest, taxes, depreciation, amortization, stock-based compensation, or earnings before taxes or net earnings), (vi) earnings per share, (vii) stock price, (viii) return on equity, (ix) total stockholder return, (x) growth in 

stockholder value relative to the moving average of the S&P 500 Index or another index, (xi) return on capital, (xii) return on assets or net assets, (xiii) return on investment, (xiv) economic value added, (xv) operating profit or net operating profit (including or excluding stock-based compensation), (xvi) operating margin (including or excluding stock-based compensation), (xvii) market share, (xviii) contract awards or backlog, (xix) overhead or other expense reduction, (xx) credit rating, (xxi) customer indicators, (xxii) new product invention or innovation, (xxiii) attainment of research and development milestones, (xxiv) improvements in productivity, (xxv) attainment of operating goals, (xxvi) employee metrics and (xxvii) strategic initiatives.
“Performance Period” means any Fiscal Quarter or Fiscal Year, or such other longer period but not in excess of five Fiscal Years, as determined by the Committee in its sole discretion.
“Plan” means this Executive Bonus Plan.
“Plan Year” means the Company’s fiscal year.
“Target Award” means the target award payable under the Plan to a Participant for the Performance Period, expressed as a percentage of his or her Base Salary or a specific dollar amount, as determined by the Committee in accordance with Section 6.
3) Plan Administration.
a) The Committee shall be responsible for the general administration and interpretation of the Plan and for carrying out its provisions. The Committee may delegate specific administrative tasks to Company employees or others as appropriate for proper administration of the Plan. The Committee shall have such powers as may be necessary to discharge its duties hereunder, including, but not by way of limitation, the following powers and duties, but subject to the terms of the Plan:
i) discretionary authority to construe and interpret the terms of the Plan, and to determine eligibility, Awards and the amount, manner and time of payment of any Awards hereunder;
ii) to prescribe forms and procedures for purposes of Plan participation and distribution of Awards; and
iii) to adopt rules, regulations and bylaws and to take such actions as it deems necessary or desirable for the proper administration of the Plan.
 
b) Any rule or decision by the Committee that is not inconsistent with the provisions of the Plan shall be conclusive and binding on all persons, and shall be given the maximum deference permitted by law.
4) Eligibility. The employees eligible to participate in the Plan for a given Performance Period shall be senior management of the Company who are designated by the Committee in its sole discretion.  No person shall be automatically entitled to participate in the Plan.  Participation in the Plan in one year does not imply continued Plan participation in any subsequent year.  The Committee may determine, in its sole discretion, to provide a pro rata bonus opportunity for individuals hired or promoted during the Performance Period.
5) Performance Goal Determination. The Committee, in its sole discretion, shall establish the Performance Goals for each Participant for the Performance Period.
6) Target Award Determination. The Committee, in its sole discretion, shall establish a Target Award for each Participant. Each Participant’s Target Award shall be determined by the Committee in its sole discretion, and each Target Award shall be set forth in writing.  All payments under the Plan are intended to fall within the “short-term deferral” exemption from Section 409A of the Code, or comply with any requirements necessary to avoid the imposition of additional tax under Section 409A of the Code, and the Plan shall be interpreted accordingly.
7) Determination of Payout Formula or Formulae. The Committee, in its sole discretion, shall establish a Payout Formula or Formulae for purposes of determining the Award (if any) payable to each Participant. Each Payout Formula shall (a) be set forth in writing, (b) be based on a comparison of actual performance to the 

Performance Goals, (c) provide for the payment of a Participant’s Target Award if the Performance Goals for the Performance Period are achieved, and (d) provide for an Award greater than or less than the Participant’s Target Award, depending upon the extent to which actual performance exceeds or falls below the Performance Goals.

8) Determination of Awards; Award Payment.
(a) Determination. After the end of each Performance Period, the Committee shall determine the extent to which the Performance Goals applicable to each Participant for the Performance Period were achieved or exceeded. The Award for each Participant shall be determined by applying the Payout Formula to the level of actual performance that has been certified by the Committee. Notwithstanding any contrary provision of the Plan, the Committee, in its sole discretion, may increase, eliminate or reduce the Award payable to any Participant below that which otherwise would be payable under the Payout Formula. 
(b) Right to Receive Payment. Each Award under the Plan shall be paid solely from the general assets of the Company. Nothing in this Plan shall be construed to create a trust or to establish or evidence any Participant’s claim of any right to payment of an Award other than as an unsecured general creditor with respect to any payment to which he or she may be entitled. A Participant needs to be employed by the Company through the payment date in order to be eligible to receive an Award payout hereunder.
(c) Form of Distributions. The Company shall distribute all Awards to the Participant in cash unless an alternative form of distribution is approved by the Committee in its sole discretion.
(d) Timing of Distributions. The Company shall distribute amounts payable to Participants as soon as is practicable following the determination and written certification of the Award for a Performance Period.
 
9) Term of Plan. The Plan shall first apply to the 2018 Plan Year and shall continue until terminated under Section 10 of the Plan.
10) Amendment and Termination of the Plan. The Committee may amend, modify, suspend or terminate the Plan, in whole or in part, at any time, including the adoption of amendments deemed necessary or desirable to correct any defect or to supply omitted data or to reconcile any inconsistency in the Plan or in any Award granted hereunder.  The Committee reserves the right at any time to modify, suspend or terminate the Plan or any Performance Goals, Payout Formulas or Target Awards hereunder.  At no time before the actual distribution of funds to Participants under the Plan shall any Participant accrue any vested interest or right whatsoever under the Plan except as otherwise stated in this Plan.
11) Withholding. Distributions pursuant to this Plan shall be subject to all applicable federal and state tax and withholding requirements.
12) At-Will Employment. No statement in this Plan should be construed to grant any employee an employment contract of fixed duration or any other contractual rights, nor should this Plan be interpreted as creating an implied or an expressed contract of employment or any other contractual rights between the Company and its employees. The employment relationship between the Company and its employees is terminable at-will. This means that an employee or the Company may terminate the employment relationship at any time and for any reason or no reason.
13) Successors. All obligations of the Company under the Plan, with respect to awards granted hereunder, shall be binding on 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 or assets of the Company.
14) Indemnification. Each person who is or shall have been a member of the Committee, or of the Board, shall be indemnified and held harmless by the Company against and from (a) any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action 

taken or failure to act under the Plan or any award, and (b) from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such claim, action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, by contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify them or hold them harmless.
15) Nonassignment. The rights of a Participant under this Plan shall not be assignable or transferable by the Participant except by will or the laws of intestacy.
16) Governing Law. The Plan shall be governed by the laws of the State of California, without regard to conflicts of law provisions thereunder.

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