Document:

EX-10.1

 Exhibit 10.1 

AMARIN CORPORATION PLC 

EXECUTIVE SEVERANCE AND CHANGE OF CONTROL PLAN 

Effective Date: January 28, 2021 

Amarin Corporation plc (the “Company”) sets forth herein the terms of its Executive Severance and Change of Control Plan (the
“Plan”) as follows: 
 SECTION 1. PURPOSE. 

The purpose of the Plan is to establish the conditions under which Eligible Executives will receive severance pay and benefits if employment
with the Company (or its successor, following a Change of Control) terminates under the circumstances specified herein. 
 SECTION 2. DEFINITIONS.

 (a) “Accrued Obligations” means, with respect to an Eligible Executive, (i) the Eligible Executive’s Base
Salary through the Date of Termination, (ii) an amount equal to the value of the Eligible Executive’s accrued unused paid time off days, if any, and (iii) the amount of any business expenses properly incurred by the Eligible Executive
on behalf of the Company prior to the Date of Termination and not yet reimbursed, if any. 
 (b) “Base Salary” means, with
respect to an Eligible Executive, the annual base salary payable to the Eligible Executive by the Company and its Subsidiaries as of the Date of Termination (or, if higher, the annual base salary payable to the Eligible Executive by the Company and
its Subsidiaries as of immediately prior to the Change of Control Date). 
 (c) “Board” means the Board of Directors of the
Company. 
 (d) “Cause” means and shall be limited to: (i) conduct constituting an act of material misconduct in
connection with the performance of the Eligible Executive’s duties, including, without limitation, misappropriation of funds or property of the Company other than the occasional, customary and de minimis use of Company property for personal
purposes; (ii) the commission by the Eligible Executive of (A) any felony; or (B) a misdemeanor involving moral turpitude, deceit, dishonesty or fraud; (iii) any conduct of the Eligible Executive that would reasonably be expected
to result in material injury or material reputational harm to the Company or any of its subsidiaries and affiliates if the Eligible Executive was retained; (iv) prior to a Change of Control, the Eligible Executive’s continued non-performance or continued unsatisfactory performance of the Eligible Executive’s responsibilities as reasonably determined by the Board; (v) a breach by the Eligible Executive of any of the material
provisions of any agreement between the Eligible Executive and the Company including, without limitation, any agreement relating to non-disclosure, non-competition or
assignment of inventions; and (vi) a material violation by the Eligible Executive of any of the Company’s written policies or procedures provided that, other than in the case of noncurable events, the Eligible Executive shall be
provided with written notice and fifteen (15) days to cure. 

 (e) “Change of Control” shall be limited to the following events, but only
to the extent such events constitute a “change in the ownership or effective control” of the Company or a “change in the ownership of a substantial portion of the Company’s assets” for purposes of Section 409A of the
Code: 
 (i) any person or company (either alone or together with any person or company acting in concert with him or it) (an
“Acquiring Company”) obtaining Control of the Company; 
 (ii) any person or company that Controls the
Company becoming bound or entitled to acquire ordinary shares of the Company under Sections 974 to 991 of the UK Companies Act 2006; 

(iii) any court sanctioning a compromise or arrangement under Section 899 of the UK Companies Act 2006; 

(iv) a resolution being tabled for the voluntary winding-up of the Company; 

(v) any Acquiring Company acquiring all or substantially all of the assets of the Company; 

(vi) any merger, reorganization, consolidation or other similar transaction pursuant to which the holders of the Company’s
outstanding voting power and outstanding stock immediately prior to such transaction do not own a majority of the outstanding voting power and outstanding stock or other equity interests of the Company or any resulting or successor entity (or its
ultimate parent, if applicable) immediately upon completion of such transaction; 
 (vii) the sale of all or a majority of
the shares of the Company to an unrelated person, entity or group thereof acting in concert; or 
 (viii) any other similar
transaction which the Board determines should constitute a Change of Control for the purposes of the Plan. 
 (f) “Change of Control
Date” means, with respect to a Change of Control, the date of consummation of such Change of Control. 
 (g) “Change of
Control Period” means the period commencing upon the Change of Control Date and ending 24 months thereafter. 
 (h)
“Code” means the Internal Revenue Code of 1986, as amended from time to time, and any regulations promulgated thereunder. 

(i) “Company” means Amarin Corporation plc or, from and after a Change of Control, the successor to the Company in any such
Change of Control. 

  
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 (j) “Continuing Obligations” means the Eligible Executive’s
obligations to the Company pursuant to the Eligible Executive’s Nondisclosure, Developments and Noncompetition Agreement and any other agreement relating to confidentiality, assignment of inventions, or other restrictive covenants. 

(k) “Control” means the ownership of more than 50 percent of the issued share capital or other equity interest of the
Company or the legal power to direct or cause the direction of the general management and policies of the Company. 
 (l) “Date of
Termination” means, with respect to an Eligible Executive, the effective date of termination of the Eligible Executive’s employment with the Company and all of its Subsidiaries. 

(m) “Disability” means that the Company has determined that the Eligible Executive is disabled within the meaning of
Section 22(e)(3) of the Code. 
 (n) “Eligible Executive” means an United States employee of the Company or any of its
Subsidiaries at the level of Vice President or above at the time of the Date of Termination (or, if applicable, at the time of a Change of Control). Notwithstanding anything to the contrary herein, if an Eligible Executive is party to an employment
or letter agreement with the Company (collectively, “Employment Agreement”) that, as of the Effective Date of this Plan, contains a more favorable definition of a defined term in this Plan (including, without limitation,
“Cause” or “Good Reason” or “Change of Control”) or provides for more favorable terms or provisions than provided under this Plan (including, without limitation, with respect to compensation, benefits or equity-related
rights) then the more favorable definition, term or provision, or relevant combination thereof, shall be applicable for the benefit of the Eligible Executive; provided, however, that in no event shall there be duplication of payments
or benefits under this Plan and the Employment Agreement. 
 (o) “Good Reason” means, with respect to an Eligible Executive
during the Change of Control Period (or, to the extent an Eligible Executive’s Employment Agreement provides Good Reason protection outside of the Change of Control Period, with respect to an Eligible Executive outside of the Change of Control
Period), that the Eligible Executive has complied with the Company’s “Good Reason Process” (hereinafter defined) following the occurrence of any of the following Good Reason conditions that occur without the Eligible Executive’s
consent: (i) a material diminution of the Eligible Executive’s Base Salary; (ii) a material diminution in the Eligible Executive’s authority, duties or responsibilities; (iii) a material change in the principal location
where the Eligible Executive is required to provide services for the Company (not including business travel and short-term assignments); and/or (iv) a material breach by the Company of an Employment Agreement. For purposes of this Agreement,
“Good Reason Process” shall mean that: (x) the Eligible Executive reasonably determines in good faith that a “Good Reason” condition has occurred; (y) the Eligible Executive notifies the Company in writing of the
Good Reason condition within 30 days of the first occurrence of such condition; (z) the Eligible Executive cooperates in good faith with the Company’s efforts, for a period of 30 days following such notice (the “Cure
Period”), to remedy the condition; notwithstanding such efforts, the Good Reason condition continues to exist; and the Eligible Executive terminates the Eligible Executive’s employment within 30 days after the end of the Cure Period.
If the Company cures the Good Reason condition during the Cure Period, Good Reason shall be deemed not to have occurred. 

  
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 (p) “Subsidiary” means any subsidiary of the Company or, from and after a
Change of Control, any subsidiaries of the successor to the Company. 
 (q) “Target Bonus” means, with respect to an
Eligible Executive, the Eligible Executive’s target annual performance bonus for the year in which the Date of Termination occurs (or, if higher, the target annual performance bonus in effect as of immediately prior to the Change of Control
Date). 
 SECTION 3. SEVERANCE BENEFITS OUTSIDE OF THE CHANGE OF CONTROL PERIOD. 

(a) If the Eligible Executive’s employment is terminated by the Company without Cause outside of the Change of Control Period (or, to the
extent an Eligible Executive’s Employment Agreement provides Good Reason protection outside of the Change of Control Period, if the Eligible Executive terminates employment for Good Reason outside of the Change of Control Period), then, in
addition to the Accrued Obligations, and subject to (i) (a) the Eligible Executive signing a separation agreement and release in a form and manner satisfactory to the Company, which shall include, without limitation, a general release of
claims against the Company and all related persons and entities in substantially the same form as set forth in Section 1 of Exhibit 1 attached hereto (the “Release”), a
non-disparagement provision, a return of property provision, a reaffirmation of all of the Executive’s Continuing Obligations, and, if applicable, a confirmation of the Eligible Executive’s
resignation from all officer, trustee and board member positions that the Eligible Executive holds with the Company or any of its respective subsidiaries and affiliates, and shall provide that if the Eligible Executive breaches any of the Continuing
Obligations, all payments of the severance payments and benefits shall immediately cease (the “Separation Agreement”), and (b) the Separation Agreement becoming irrevocable, all within 60 days after the Date of Termination (or
such shorter period as set forth in the Separation Agreement), and (ii) if requested by the Company, the Eligible Executive signing a UK settlement agreement and such UK settlement agreement becoming fully effective, such Eligible Executive
shall be entitled to receive the following severance payments and benefits: 
 (i) continuation of the Eligible Executive’s Base Salary
for the applicable Salary Continuation Period, as set forth on Schedule A, and, for the Company’s Chief Executive Officer only, 1.5 times his Target Bonus, to be paid in substantially equal installments over the Salary Continuation
Period; 
 (ii) continuation of group health plan benefits to the extent authorized by and consistent with 29 U.S.C. § 1161 et seq.
(commonly known as “COBRA”), with the cost of the regular premium for such benefits shared in the same relative proportion by the Company and the Eligible Executive as in effect on the Date of Termination until the earlier of: (i) the
end of the applicable Benefit Continuation Period, as set forth on Schedule A, and (ii) the date the Eligible Executive becomes eligible for health benefits through another employer or otherwise become ineligible for COBRA; and 

  
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 (iii) partial accelerated vesting for the applicable number of months, as set forth on
Schedule A, from the Date of Termination with respect to any of the Eligible Executive’s then outstanding stock options, restricted stock units or other equity incentive awards (in each case, only to the extent subject to time-based
vesting), with the applicable portion of the equity incentive awards to be accelerated pursuant to this subsection to immediately accelerate and become fully exercisable or nonforfeitable as of the later of the Date of Termination and the effective
date of the Separation Agreement. The forfeiture of any unvested equity that is subject to acceleration will be delayed to the extent necessary to effectuate this provision and will not occur if the acceleration pursuant to this provision occurs.

 (b) The amounts payable under Section 3(a)(i) shall be paid out in substantially equal installments in accordance with the
Company’s payroll practice over the applicable Salary Continuation Period commencing within 60 days after the Date of Termination; provided, however, that if the 60-day period begins
in one calendar year and ends in a second calendar year, such payments, to the extent they qualify as “non-qualified deferred compensation” within the meaning of Section 409A of the Code, shall
begin to be paid in the second calendar year by the last day of such 60-day period; provided, further, that the initial payment shall include a catch-up
payment to cover amounts retroactive to the day immediately following the Date of Termination. Each payment pursuant to this Plan is intended to constitute a separate payment for purposes of Treasury Regulation
Section 1.409A-2(b)(2). 
 SECTION 4. SEVERANCE BENEFITS WITHIN THE CHANGE OF CONTROL PERIOD. 

The provisions of this Section 4 shall apply in lieu of, and expressly supersede, the provisions of Section 3 if (i) the
Eligible Executive’s employment is terminated either (a) by the Company without Cause or (b) by the Eligible Executive for Good Reason, and (ii) the Date of Termination is within the Change of Control Period. These provisions
shall terminate and be of no further force or effect after the Change of Control Period. 
 (a) If the Eligible Executive’s employment
is terminated by the Company without Cause or the Eligible Executive terminates employment for Good Reason and in each case the Date of Termination occurs within the Change of Control Period, then, in addition to the Accrued Obligations, and subject
to (i) the signing of the Release (or a release in substantially the same form as the Release) by the Executive and, if requested by the Company, the Eligible Executive signing a UK settlement agreement, and (ii) the Release and any UK
settlement agreement becoming fully effective, all within the time frame set forth in the Release but in no event more than 60 days after the Date of Termination, such Eligible Executive shall be entitled to receive the following severance payments
and benefits: 
 (i) a lump sum in cash in an amount equal to the applicable Multiplier, as set forth on Schedule B, times the
sum of (A) the Eligible Executive’s Base Salary plus (B) the Eligible Executive’s Target Bonus, except for the Chief Executive Officer, who will receive continuation of his Base Salary for twenty-four (24) months in
accordance with the Company’s payroll practice and will receive a lump sum payment equal to two (2) times his Target Bonus; 

  
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 (ii) continuation of group health plan benefits to the extent authorized by and consistent
with 29 U.S.C. § 1161 et seq., with the cost of the regular premium for such benefits shared in the same relative proportion by the Company and the Eligible Executive as in effect on the Date of Termination until the earlier of: (i) the
end of the applicable Benefit Continuation Period, as set forth on Schedule B, and (ii) the date the Eligible Executive becomes eligible for health benefits through another employer or otherwise become ineligible for COBRA; and 

(iii) full accelerated vesting with respect to any of the Eligible Executive’s then outstanding stock options, restricted stock units or
other equity incentive awards (whether or not subject to time-based vesting), which shall immediately accelerate and become fully exercisable or nonforfeitable as of the later of the Date of Termination and the effective date of the Release. The
forfeiture of any unvested equity will be delayed to the extent necessary to effectuate this provision and will not occur if the acceleration pursuant to this provision occurs. 

(b) The amounts payable under Section 4(a)(i) shall be paid within 60 days after the Date of Termination; provided, however,
that if the 60-day period begins in one calendar year and ends in a second calendar year, such payments to the extent they qualify as “non-qualified deferred
compensation” within the meaning of Section 409A of the Code, shall be paid in the second calendar year by the last day of such 60-day period. 

SECTION 5. SECTION 280G LIMITATION. 

Anything in this Plan to the contrary notwithstanding, in the event that the amount of any compensation, payment or distribution by the Company
to or for the benefit of the Eligible Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Plan or otherwise, calculated in a manner consistent with Section 280G of the Code and the applicable
regulations thereunder (the “Severance Payments”), would be subject to the excise tax imposed by Section 4999 of the Code, the following provisions shall apply: 

(a) If the Severance Payments, reduced by the sum of (1) the Excise Tax and (2) the total of the Federal, state, and local income and
employment taxes payable by the Eligible Executive on the amount of the Severance Payments which are in excess of the Threshold Amount, are greater than or equal to the Threshold Amount, the Eligible Executive shall be entitled to the full benefits
payable under this Plan. 
 (b) If the Threshold Amount is less than (x) the Severance Payments, but greater than (y) the Severance
Payments reduced by the sum of (1) the Excise Tax and (2) the total of the Federal, state, and local income and employment taxes on the amount of the Severance Payments which are in excess of the Threshold Amount, then the Severance
Payments shall be reduced (but not below zero) to the extent necessary so that the sum of all Severance Payments shall not exceed the Threshold Amount. In such event, the Severance Payments shall be reduced in the following order: (1) cash
payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) noncash forms of benefits. To the extent any payment is to be made
over time (e.g., in installments, etc.), then the payments shall be reduced in reverse chronological order. 

  
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 (c) For the purposes of this Section, “Threshold Amount” shall mean three
times the Eligible Executive’s “base amount” within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise Tax” shall mean the excise tax
imposed by Section 4999 of the Code, and any interest or penalties incurred by the Eligible Executive with respect to such excise tax. 

(d) The determination as to which of the alternative provisions of this Section 5 shall apply to the Eligible Executive shall be made by a
nationally recognized accounting firm selected by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and the Eligible Executive within 15 business days of the Date of
Termination, if applicable, or at such earlier time as is reasonably requested by the Company or the Eligible Executive. For purposes of determining which of the alternative provisions of this Section 5 shall apply, the Eligible Executive shall
be deemed to pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year in which the determination is to be made, and state and local income taxes at the highest marginal rates of
individual taxation in the state and locality of the Eligible Executive’s residence on the Date of Termination, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. Any
determination by the Accounting Finn shall be binding upon the Company and the Eligible Executive. 
 SECTION 6. WITHHOLDING. 

Notwithstanding anything in this Plan to the contrary, all payments required to be made by the Company hereunder to an Eligible Executive or
the Eligible Executive’s estate or beneficiaries shall be subject to the withholding of such amounts relating to taxes as the Company reasonably may determine it should withhold pursuant to any applicable law or regulation. In lieu of
withholding such amounts, in whole or in part, the Company may, in its sole discretion, accept other provisions for the payment of taxes and any withholdings as required by law, provided that the Company is satisfied that all requirements of
law affecting its responsibilities to withhold compensation have been satisfied. Nothing in this Plan shall be construed to require the Company to make any payments to compensate the Eligible Executive for any adverse tax effect associated with any
payments or benefits or for any deduction or withholding from any payment or benefit. 
 SECTION 7. NO DUTY TO MITIGATE; INTEGRATION WITH OTHER PAY OR
BENEFITS. 
 An Eligible Executive’s payments received hereunder shall be considered severance pay in consideration of past service
and entitlement thereto shall not be governed by any duty to mitigate damages by seeking further employment. Notwithstanding anything to the contrary herein, all severance benefits provided to an Eligible Executive pursuant to Section 3 or
Section 4 (as applicable) shall be reduced and/or offset by any amounts or benefits paid to an Eligible Executive to satisfy the federal Worker Adjustment and Retraining Notification (WARN) Act, 29 U.S.C. § 2101 et seq., as amended, and
any applicable state plant or facility closing or mass layoff law (whether as damages, as payment of salary or other wages during an applicable notice period or otherwise). 

  
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 SECTION 8. AMENDMENT, SUSPENSION OR TERMINATION. 

This Plan may be amended, suspended or terminated at any time by the Board; provided, however, that no such amendment, suspension
or termination shall adversely affect the rights of any Eligible Executive then subject to the Plan, including, without limitation, an Eligible Executive then receiving payments, benefits or equity-related rights under the Plan, without the Eligible
Executive’s written consent. 
 SECTION 9. ADMINISTRATION. 

The Plan shall be administered by either the Board or the Remuneration Committee of the Board or such other committee or person(s) appointed by
the Board from time to time to administer the Plan (in either case, the “Administrator”); provided, however, that this Plan shall not be interpreted in a way that is less favorable to an Eligible Executive than would
be the case under the Eligible Executive’s Employment Agreement in effect as of the Effective Date of this Plan. The Administrator shall have the power and authority to interpret the terms and provisions of the Plan, to make all determinations
it deems advisable for the administration of the Plan, to decide all disputes arising in connection with the Plan and to otherwise supervise the administration of the Plan. All decisions and interpretations of the Administrator shall be final,
conclusive and binding on all persons. 
 SECTION 10. GOVERNING LAW. 

This Plan shall be governed by the laws of the United States to the extent applicable and otherwise by the laws of the State of New Jersey,
excluding the choice of law rules thereof. 
 SECTION 11. SEVERABILITY. 

If any part of any provision of this Plan shall be invalid or unenforceable under applicable law, such part shall be ineffective to the extent
of such invalidity or unenforceability only, without in any way affecting the remaining parts of such provision or the remaining provisions of this Plan. 

SECTION 12. SUCCESSOR TO COMPANY. 
 The
Company shall require any successor (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets of the Company expressly to
assume and agree to perform this Plan to the same extent that the Company would be required to perform it if no succession had taken place. Notwithstanding the foregoing, if the Eligible Executive remains employed or becomes employed by the Company,
the purchaser or any of their affiliates in connection with any such transaction, then the Eligible Executive shall not be entitled to any payments, benefits or vesting pursuant to this Plan solely as a result of such transaction. 

  
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 SECTION 13. UNFUNDED PLAN. 

This Plan shall be unfunded and shall not create (or be construed to create) a trust or separate fund. Likewise, the Plan shall not establish
any fiduciary relationship between the Company or any of its subsidiaries or affiliates and any Eligible Executive. 
 SECTION 14. DISCLAIMER OF
RIGHTS. 
 No provision in this Plan shall be construed to confer upon any individual the right to remain in the employ or service of the
Company or any Subsidiary, or to interfere in any way with any contractual or other right or authority of the Company either to increase or decrease the compensation or other payments to any individual at any time, or to terminate any employment or
other relationship between any individual and the Company. The obligation of the Company to pay any benefits pursuant to this Plan shall be interpreted as a contractual obligation to pay only those amounts described herein, in the manner and under
the conditions prescribed herein. The Plan shall in no way be interpreted to require the Company to transfer any amounts to a third party trustee or otherwise hold any amounts in trust or escrow for payment to any participant or beneficiary under
the terms of the Plan. Notwithstanding the foregoing, and for the avoidance of doubt, in the event of an Eligible Executive’s death after the Eligible Executive’s termination of employment but prior to the completion by the Company of all
payments due to the Eligible Executive under this Plan, the Company shall continue such payments to the Eligible Executive’s beneficiary designated in writing to the Company prior to the Eligible Executive’s death (or to the Eligible
Executive’s estate, if the Eligible Executive fails to make such designation). 
 If an Eligible Executive’s employment is
terminated for Cause or due to death or Disability or the Eligible Executive voluntarily terminates employment with the Company (other than for Good Reason during the Change of Control Period), the Eligible Executive shall be entitled to only the
Accrued Obligations through the Date of Termination. The mere occurrence of a Change of Control shall not, by itself, be treated as a termination of an Eligible Executive’s employment under this Plan, nor shall the mere transfer of an Eligible
Executive’s employment between the Company and/or any of its Subsidiaries, by itself, be treated as a termination of employment under this Plan. Further, Section 3 and Section 4 of this Plan are mutually exclusive and in no event
shall an Eligible Executive be entitled to payments or benefits pursuant to both Section 3 and Section 4 of this Plan. For the avoidance of doubt, this Plan supersedes the Amarin Corporation plc Change in Control Severance Pay Plan dated
as of April 21, 2016. 
 SECTION 15. CAPTIONS. 

The use of captions in this Plan is for the convenience of reference only and shall not affect the meaning of any provision of this Plan. 

SECTION 16. NUMBER AND GENDER. 
 With
respect to words used in this Plan, the singular form shall include the plural form, the masculine gender shall include the feminine gender, etc., as the context requires. 

  
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 SECTION 17. SECTION 409A. 

(a) Anything in this Plan to the contrary notwithstanding, if at the time of the Eligible Executive’s “separation from service”
within the meaning of Section 409A of the Code, the Company determines that the Eligible Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit
that the Eligible Executive becomes entitled to under this Plan on account of the Eligible Executive’s separation from service would be considered deferred compensation subject to the 20 percent additional tax imposed pursuant to
Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (A) six months and one
day after the Eligible Executive’s separation from service, or (B) the Eligible Executive’s death. If any such delayed cash payment is otherwise payable on an installment basis, the first payment shall include a catch-up payment covering amounts that would otherwise have been paid during the six-month period but for the application of this provision, and the balance of the
installments shall be payable in accordance with their original schedule. 
 (b) It is intended that this Plan will be administered in
accordance with Section 409A of the Code. To the extent that any provision of this Plan is ambiguous as to its exemption from or compliance with Section 409A of the Code, the provision shall be read in such a manner so to be exempt from or
in compliance with Section 409A of the Code so that all payments hereunder are either exempt from or comply with Section 409A of the Code. Each payment pursuant to this Plan is intended to constitute a separate payment for purposes of
applying Section 409A, any exemptions thereto and Treasury Regulation Section 1.409A-2(b)(2). 

(c) To the extent that any payment or benefit described in this Plan constitutes “non-qualified
deferred compensation” under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Eligible Executive’s termination of employment, then such payments or benefits shall be payable only upon the
Eligible Executive’s “separation from service.” The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation Section 1.409A-1(h). 
 (d) The Company makes no representation or warranty and shall have no
liability to the Eligible Executive or any other person if any provisions of this Plan are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such
Section. 
 *     *     *     *     * 

This Plan was duly authorized by the Board of Directors on the Effective Date. 

 

	
	 /s/ Joseph T. Kennedy

	Company Secretary

  
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 Schedule A 

 

							
	 Position
	  	 Salary Continuation

Period
	  	 Benefit Continuation

Period
	  	 Applicable Number of

Months for Partial Equity

Acceleration

	Chief Executive Officer	  	18 months	  	18 months	  	12 months
				
	Executive Vice President and/or Senior Vice President	  	12 months	  	12 months	  	6 months
				
	Vice President	  	9 months	  	9 months	  	6 months

 Schedule B 

 

					
	 Position
	  	 Multiplier
	  	 Benefit Continuation Period

	Chief Executive Officer	  	N/A	  	24 months
			
	Executive Vice President and/or Senior Vice President	  	1.5	  	18 months
			
	Vice President	  	1.0	  	12 months

 Exhibit 1 

Release 
 THIS RELEASE
AGREEMENT (“Release Agreement”) is entered into as of ___________, 20__ (the “Effective Date”), by _____________ (the “Executive”) in consideration of the severance payments and benefits (the “Severance
Benefits”) to be provided to the Executive by Amarin Corporation plc or its successor (the “Company”) pursuant to the Amarin Corporation plc Executive Severance and Change of Control Plan (the “Plan”), which is incorporated
herein by reference. Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Plan. 

WHEREAS, subject to the terms of the Plan, the Executive is eligible to receive the Severance Benefits. 

NOW, THEREFORE, in consideration of the Severance Benefits and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Executive agrees as follows: 
 1. General Release. The Executive, on the Executive’s own behalf and on behalf of the
Executive’s heirs, executors, administrators, attorneys and assigns, hereby unconditionally and irrevocably releases, waives and forever discharges Company and each of its affiliates, parents, successors, predecessors, and the subsidiaries,
directors, owners, members, shareholders, officers, agents, and employees of the Company and its affiliates, parents, successors, predecessors, and subsidiaries (collectively, all of the foregoing are referred to as the “Employer”), from
any and all causes of action, claims and damages, including attorneys’ fees, whether known or unknown, foreseen or unforeseen, presently asserted or otherwise arising through the date of his or her signing of the Release Agreement. This release
includes, but is not limited to, any claim or entitlement to salary, bonuses, any other payments, benefits or damages arising under any federal law (including, but not limited to, Title VII of the Civil Rights Act of 1964, the Age Discrimination in
Employment Act, the Employee Retirement Income Security Act of 1974, the Americans with Disabilities Act, Executive Order 11246, the Family and Medical Leave Act, and the Worker Adjustment and Retraining Notification Act, each as amended and any
other federal, state, local or foreign law relating to notice of employment termination or to severance pay); any claim arising under any state or local laws, ordinances or regulations (including, but not limited to, the New Jersey Law Against
Discrimination, the New Jersey Family Leave Act and any state or local laws, ordinances or regulations requiring that advance notice be given of certain workforce reductions); and any claim arising under any common law principle or public policy,
including, but not limited to, all suits in tort or contract, such as wrongful termination, defamation, emotional distress, invasion of privacy or loss of consortium; provided, however, that this release shall not apply to
(a) claims to enforce the Executive’s right to receive Severance Benefits; (b) claims for vested benefits pursuant to ERISA; (c) claims with respect to the Executive’s vested equity rights as of the Date of Termination;
(d) claims to enforce the Company’s obligation to indemnify the Executive to the extent such indemnification obligations exist; and (e) claims or administrative charges which legally may not be waived. 

  
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 The Executive is waiving, however, any right to monetary recovery or individual relief
should any federal, state or local agency (including the Equal Employment Opportunity Commission) pursue any claim on his or her behalf arising out of or related to his or her employment with and/or separation from employment with the Company;
provided that nothing in this Release Agreement limits any right the Executive may have to receive a whistleblower award or bounty for information provided to the Securities and Exchange Commission. The Executive represents that the Executive
has not assigned any claim to any third party. 
 2. Acknowledgments. The Executive acknowledges that: 

 

	 	(a)	 The Executive is hereby advised by the Company to discuss all aspects of this Release Agreement with an
attorney before signing this Release Agreement; 

  

	 	(b)	 The Executive has relied solely on his or her own judgment and/or that of his or her attorney regarding the
consideration for and the terms of this Release Agreement and is signing this Release Agreement knowingly and voluntarily of his or her own free will; 

  

	 	(c)	 The Executive is not entitled to the Severance Benefits unless the Executive agrees to and fully complies with
the terms of this Release Agreement; 

  

	 	(d)	 The Executive has been given [14/21/45 days]1 from the
date of its delivery to the Executive to consider this Release Agreement (the “Consideration Period”), and if the Executive chooses to sign this Release Agreement before the end of the Consideration Period, that decision is entirely
knowing and voluntary; 

  

	 	(e)	 To accept this Release Agreement, the Executive must deliver a signed, unmodified original or PDF copy of this
Release to [name of Company contact, email address] at or before the expiration of the Consideration Period; and 

  

	 	(f)	 [The Executive may revoke this Release Agreement within seven (7) calendar days after signing it by
submitting a written notice of revocation to the Employer. The Executive further understands that this Release Agreement is not fully effective until the next business day after the seven (7) day period of revocation has expired without
revocation, and that if the Executive revokes this Release Agreement within the seven (7) day revocation period, the Executive will not receive the Severance Benefits]2; [OR][This Release
Agreement shall become effective on the date when an executed copy is received by the Company within the Consideration Period.]3 

 

	1 	 NTD: 14 days for executives under age 40; 21 days for executives age 40 or older where the termination is not
part of a group termination; 45 days for executives age 40 or older where the termination is part of a group termination. 

	2 	 NTD: For executives age 40 or older. 

	3 	 NTD: For executives under age 40. 

  
 2 

	 	(g)	 The Executive has read and understands the Release Agreement and further understands that it includes a general
release of any and all known and unknown, foreseen or unforeseen claims presently asserted or otherwise arising through the date of his or her signing of this Release Agreement that he or she may have against the Employer; and 

 

	 	(h)	 No statements made or conduct by the Employer has in any way coerced or unduly influenced the Executive to
execute this Release Agreement. 

  

	 	(i)	 Except for the Severance Benefits, the Executive has been paid all wages, bonuses, compensation, benefits and
other amounts that the Employer ever owed to the Executive. Further the Executive acknowledges and agrees that the Executive is not entitled to any other severance pay, benefits or equity rights including without limitation pursuant to any other
severance plan, or program or arrangement. 

 3. No Admission of Liability. This Release Agreement does not
constitute an admission of liability or wrongdoing on the part of the Employer, the Employer does not admit there has been any wrongdoing whatsoever against the Executive, and the Employer expressly denies that any wrongdoing has occurred. 

4. Entire Agreement. There are no other agreements of any nature between the Employer and the Executive with respect to the matters
discussed in this Release Agreement, except as expressly stated herein, and in signing this Release Agreement, the Executive is not relying on any agreements or representations, except those expressly contained in this Release Agreement. 

5. Execution. It is not necessary that the Employer sign this Release Agreement following the Executive’s full and complete
execution of it for it to become fully effective and enforceable. 
 6. Severability. If any provision of this Release Agreement is
found, held or deemed by a court of competent jurisdiction to be void, unlawful or unenforceable under any applicable statute or controlling law, the remainder of this Release Agreement shall continue in full force and effect. 

7. Governing Law. This Release Agreement shall be governed by the laws of the State of New Jersey, excluding the choice of law rules
thereof. 
 8. Headings. Section and subsection headings contained in this Release Agreement are inserted for the convenience of
reference only. Section and subsection headings shall not be deemed to be a part of this Release Agreement for any purpose, and they shall not in any way define or affect the meaning, construction or scope of any of the provisions hereof. 

  
 3 

 IN WITNESS WHEREOF, the undersigned has duly executed this Release Agreement as of the day
and year first herein above written. 
  

	
	EXECUTIVE:
	
	  

  
 4vrrm-ex101_9.htm

Exhibit 10.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Verra Mobility Corporation

Amended and Restated Short-Term Incentive Plan

 

Effective January 1, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 

Exhibit 10.1

RECITALS 

 

WHEREAS, Verra Mobility Corporation (the “Company” or “Verra Mobility”) sponsors and maintains the Company’s Annual Incentive Bonus Plan, dated January 1, 2019 (the “Prior Plan”), pursuant to which specified incentive benefits are provided to Participants (as defined in Section 2.1) in the form of cash on the terms and conditions set forth therein;

WHEREAS, the Company desires to amend and restate the Prior Plan in its entirety the Prior Plan; and

WHEREAS, the Board of Directors of the Company has reviewed the terms and provisions hereof and found them satisfactory.

NOW, THEREFORE, effective as of the January 1, 2021, the Company hereby adopts this Amended and Restated Short-Term Incentive Plan (the “Plan”) on the terms and conditions set forth herein, which Plan will be known as the “Verra Mobility Corporation Amended and Restated Short-Term Incentive Plan.”

PLAN

 

	
1.
	
PURPOSE  

 

The Plan is an annual incentive compensation plan intended to motivate and reward selected employees in key or leadership positions.  The Plan, which amends and restates the Prior Plan, is effective as of January 1, 2021 and is effective for fiscal year 2021 and for each fiscal year thereafter (each, a “Plan Year”), unless otherwise amended or terminated in accordance with the Plan.  The Prior Plan and any other annual incentive bonus plans applicable to Participants (as defined below) previously approved by the Company are hereby terminated effective as of January 1, 2021, and the Plan supersedes all such prior plans and any written or verbal representations of the Company or its representatives regarding the subject matter of the Plan effective as of such date.

 

	
2.
	
ELIGIBILITY TO PARTICIPATE

 

2.1.General.  An employee is eligible to participate in the Plan if he or she (i) is employed by Verra Mobility or one of its direct or indirect subsidiaries and, in each case, is not covered by a collective bargaining agreement, (ii) is classified by the Company in a job code as a manager level or higher, (iii) does not participate in a different Verra Mobility short-term incentive or commission plan (absent explicit written approval from the Chief Executive Officer (“CEO”)), and (iv) is approved as a participant by the Company’s CEO and Chief People Officer (“CPO”) for participation in the Plan for the applicable Plan Year (a “Participant”).

 

2.2.Partial Year Participation.  If an employee becomes eligible to participate in the Plan during a Plan Year due to promotion or new hire, such Participant may be entitled to a pro-rata portion of any incentive bonus opportunity based on the period of time remaining in such Plan Year or Performance Period (as defined in Section 3.1), as applicable, after he or she began participating in the Plan.  If during a Plan Year a Participant becomes ineligible to participate in the Plan, the employee may be eligible to receive a pro-rata portion of any incentive bonus opportunity based on the period of time the employee was eligible to participate during such Plan Year or Performance Period, as applicable, provided that the employee remains employed by the Company (or one if its direct or indirect subsidiaries) on the corresponding applicable Payment Date (as defined in Section 4.3) and the other required criteria to receive an incentive bonus are met. 

 

2 

Exhibit 10.1

	
3.
	
PLAN DESIGN

 

3.1.Performance Period(s).  Each Plan Year is comprised of two (2) six-month financial performance periods (each a “Performance Period”); the “First Half Period” runs from January 1 through June 30, and the “Second Half Period” runs from July 1 through December 31.  Additionally, the Plan provides for a personal performance measurement (based on the individual Participant’s total weighted average performance rating), which is measured annually at the conclusion of each Plan Year (the “Individual Performance Factor”).  

 

3.2.Participant’s Annual Incentive Target Bonus.  A Participant’s annual incentive bonus opportunity is established as a percentage of his or her base salary (“Target Bonus”).  Participants will be notified of their Target Bonus during the first quarter of a Plan Year or as reasonably practical after the commencement of the Plan Year (or, for new hires or transfers into eligible positions during the year, at or around the time of such eligibility) or after any amendment to the Plan.  In addition to continued employment, the Target Bonus is earned on the basis of financial targets and individual performance, as described below.  In no event may a Participant earn more than 150% of his or her Target Bonus. 

 

3.3.Financial Measurements.

 

3.3.1. Financial Factors.  Each Performance Period shall have designated financial factors (each, a “Financial Factor”), as follows:

	
 
	
•
	
Company-wide Adjusted EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) (“Consolidated EBITDA”);

	
 
	
•
	
Business Unit Adjusted EBITDA (“BU EBITDA”);

	
 
	
•
	
Consolidated Revenue; and

	
 
	
•
	
Business Unit Revenue (“BU Revenue”).

Each Financial Factor will be assigned a target for each Performance Period (each, a “Financial Target”), which will be determined by the Company’s Chief Financial Officer and approved by the CEO and Board of Directors, and thereafter communicated to Participants as soon as reasonably practical after the commencement of each Performance Period (or after amendment to the Plan).  Product sales and/or other anticipated extraordinary events may be excluded from the Financial Targets at the Company’s discretion.

 

3.3.2.Bonus Calculation from Financial Measurements.  The Financial Factors and associated weighting of those factors applicable to calculating a Participant’s bonus is based on the Participant’s employment classification as follows: 

						
	
 
	
WEIGHTING OF FINANCIAL FACTORS
	
	
Job Classification
	
Consolidated EBITDA
	
Consolidated Revenue
	
BU EBITDA
	
BU Revenue

	
CEO 
	
50%
	
20%
	
--
	
--

	
Shared Services ELT
	
50%
	
20%
	
--
	
--

	
BU ELT
	
--
	
--
	
50%
	
20%

	
Shared Services Participants (excluding ELT)
	
40%
	
20%
	
--
	
--

	
BU Participants (excluding ELT)
	
--
	
--
	
40%
	
20%

 

3.3.2.1.EBITDA Threshold.  No Participant will be entitled to a payment under this Plan with respect to  Financial Factors unless both (i) the actual level of Consolidated EBITDA performance for a Performance Period equals or exceeds 80% of the Consolidated EBITDA Target for such Performance Period and (ii) for Business Unit (“BU”) Participants, the actual level of BU EBITDA performance for the Performance Period equals or exceeds 80% of the Participant’s applicable BU EBITDA Target for such Performance Period (collectively, the “EBITDA Threshold”).  If the EBITDA Threshold is not achieved for a Performance Period, no corresponding bonus payment related to financial performance will be paid to the Participant.

 

3.3.2.2.Performance Period Bonus Calculation.  If the EBITDA Threshold is achieved, the Participant’s bonus opportunity for the Performance Period will be calculated based on performance against the applicable Financial Targets as set forth in Exhibit 1, subject to the following:   

 

3.3.2.2.1.The applicable EBITDA and revenue components of a Participant’s Target Bonus for the Plan Year may not result in payment that exceeds 150% of the portion of the Target Bonus to be determined by such Financial Factors (based on actual performance against the Financial Target, as shown in Exhibit 1);  

 

3.3.2.2.2.To receive the portion of the bonus payment associated with the First Half Period, the Participant must be employed on the First Half Payment Date (as defined in Section 4.4.1) and meet the other requirements of this Plan.  Payments for the First Half Period, if any, will be capped at 100% of the Participant’s Target Bonus allocated to Financial Factors even if the performance of the Financial Factor(s) exceed the Financial Target(s), resulting in a payout calculation of greater than 100% for the Financial Factors (“First Half Period Over-Performance”).  

 

3.3.2.2.3.To receive the portion of the bonus payment associated with any First Half Period Over-Performance, the Participant must be employed on the Second Half Payment Date (as defined in Section 4.4.2) and meet the other requirements of this Plan, although the EBITDA Threshold for the Second Half Period need not be achieved.   To receive any bonus payment for Financial Factors for the Second Half Period, the Participant must be employed on the 

3 

Exhibit 10.1

Second Half Payment Date and the EBITDA Threshold for the Second Half Period must be achieved. 

 

3.3.2.2.4.The Company, in its sole discretion, may exclude product sales or other extraordinary events (positive or negative) from determining a BU’s financial performance for purposes of calculating achievement of a Financial Target.  

 

3.4.Individual Performance Measurement.  A Participant’s Individual Performance Factor is 40% of their total Target Bonus (or 30% for the CEO and Executive Leadership Team (“ELT”) members).  A Participant’s achievement of his or her Individual Performance Factor shall be determined following the conclusion of the applicable Plan Year based on input from the Participant’s supervisor, and is subject to the CEO’s approval and sole discretion, with the exception of the CEO and ELT members, whose Individual Performance Factor achievement shall be determined by the Company’s Board of Directors (or the Compensation Committee), in their discretion.

3.4.1.The EBITDA Threshold need not be met for a Participant to receive a payment for the Individual Performance Factor.  Achievement of the Individual Performance Factor may not result in payment that exceeds 150% of the portion of the Target Bonus to be determined by the Individual Performance Factor.

 

3.4.2.The Individual Performance Factor is an annual measurement and will not be calculated or eligible for payment until after the end of the Plan Year on the Second Half Payment Date (no payment will be made for Individual Performance at the end of the First Half Period). 

 

3.4.3.To receive the portion of the bonus payment associated with the Individual Performance Factor, the Participant must be employed on the Second Half Payment Date and meet the other requirements of this Plan.

 

	
4.
	
PAYMENTS UNDER THE PLAN 

 

4.1.Bonus Calculation.  Bonus payments made to eligible Participants will be calculated based on their base salary actually paid during the applicable Performance Period.  Employees whose job classification is changed during the plan year such that the new job title qualifies for a higher or lower Target Bonus and/or the Participant is subject to different BU Financial Targets shall have his or her bonus pro-rated to reflect the time in each position according to the applicable target(s) for the applicable Performance Period. See Exhibit 2 for an example bonus calculation. 

 

4.2.Final Approval of Incentive Bonuses.  All amounts paid to Participants under the Plan must be approved by the CEO prior to payment, with the exception of the CEO and ELT members, whose payments must be approved by the Company’s Board of Directors or the Compensation Committee.

 

4.3.Eligibility to Receive Payment.  To be eligible to receive any payment under the Plan, a Participant must be employed by the Company on both (i) the last day of a Performance Period and (ii) the date on which the Company actually pays the corresponding bonus payment (the “Payment Date”).  However, if the Company terminates a Participant’s employment without cause (as determined by the Company in its sole discretion) after the end of a Performance Period, but before the corresponding Payment Date, the Company may, in its sole discretion, pay all or a pro-rata portion of the Participant’s bonus for that Performance Period.

 

4 

Exhibit 10.1

4.4.Payment Dates.  Subject to all other requirements of this Plan, the Payment Dates are as follows:

 

4.4.1.The Payment Date for the First Half Period shall occur after the Company closes its financial statements for June of the applicable Plan Year but occur no later than August 15 of the Plan Year (the “First Half Payment Date”).

 

4.4.2.The Payment Date for the Second Half Period shall be after the Company’s books are closed for the fiscal year but occur no later than March 15 of the year following the applicable Plan Year (the “Second Half Payment Date”).

 

4.5.Tax Withholding.  All payments made under the Plan are subject to appropriate foreign, federal, state and local withholding and any other deductions required by applicable law.  Payments will generally be taxed as supplemental wages, rather than at the wage withholding rate on regular wages. 

 

4.6.401(k) Deferrals on Payments.  Unless otherwise specified in the Company 401(k) plan, Participants who also participate in the 401(k) plan will have their regular 401(k) deduction withheld from amounts paid under the Plan according to each Participant’s 401(k) election as in effect on the applicable Payment Date, subject to the applicable annual maximum contribution limit and other applicable terms of the 401(k) plan.  If a Participant wishes to change his or her 401(k) deductions from any payment under the Plan, it is the Participant’s responsibility to timely designate and process how much, if any, additional (or reduced) 401(k) contribution should be withheld. 

 

	
5.
	
OTHER IMPORTANT INFORMATION ABOUT THE PLAN 

 

5.1.Adjusting Performance Components.  The Company shall have the absolute and discretionary right to adjust the Plan components, or to exclude items from the calculation of any achieved Financial or Individual Performance Targets, during a Performance Period or Plan Year if it determines that external changes or other business conditions require changes to be made.  Any such adjustment to Financial Targets shall apply to all Plan Participants. 

 

5.2.Corporate Event.  In the event of a merger, consolidation, plan of exchange, acquisition of property or stock, split-up, spin-off, reorganization or liquidation, any sale, lease, exchange or other transfer (in one transaction or a series of transactions) of all, or substantially all, the assets of the Company (each, a “Corporate Event”), the Company will select, prior to the consummation of the transaction, one of the following alternatives: this Plan: (a) shall remain in effect in accordance with its terms; (b) shall remain in effect in accordance with its terms, but shall be assumed by the surviving corporation; (c) will terminate, along with any future accruals, as of the consummation of the transaction and all payments under this Plan shall be pro-rated based upon the number of days that have elapsed in the applicable Performance Period or Plan Year up to the date of the Corporate Event, calculated based on the attainment of performance criteria as of the transaction date, and paid within 30 days after the closing of the transaction or (d) will terminate, and all payments will be made to Plan Participants based on each Participant’s annualized base salary (i.e., not on a pro-rata basis, but rather a full year basis), calculated based on the attainment of Financial and Individual Performance Targets as of the transaction date, and paid within 30 days after the closing of the transaction, provided the Participant is employed on the transaction closing date.

 

5.3.Severability.  In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

 

5 

Exhibit 10.1

5.4.Amendment/Termination.  The Company may, from time to time, amend, suspend, or terminate in whole or in part, and if suspended or terminated, may reinstate, any or all of the provisions of the Plan.  The Company also has the sole and absolute discretion to determine the standard or formula pursuant to which the performance components and each Participant’s bonus shall be calculated, whether all or any portion of the bonus so calculated will be paid, and the specific amount, if any, to be paid to each Participant.  The Company reserves the sole and absolute right to interpret the Plan.  Any exceptions to this Plan document must be approved in writing by both the CEO and the CPO prior to communication to any Participant.

 

5.5.No Continued Right to Employment.  Neither the establishment of the Plan, nor the provision for or payment of any amounts hereunder, nor any action of the Company shall be held or construed to confer upon any Participant or other person or entity any legal right to receive, or possess any interest in, an incentive bonus payment, or any legal right to be continued in the employ of the Company (or any of its direct or indirect subsidiaries) for any particular period of time.  Participation in the Plan does not change the “at will” nature of a Participant’s employment with the Company (or any of its direct or indirect subsidiaries).

 

5.6.Applicable Law.  All questions pertaining to the construction, regulation, validity, and effect of the provisions of the Plan shall be determined in accordance with the laws of the State of Arizona.  This Agreement will be construed in accordance with, and any dispute or controversy arising from any breach or asserted breach of the Plan will be governed by the laws of the State of Arizona without reference to principles of conflicts of law thereof. In the event of any proceeding to enforce any provision of this Plan, the prevailing party shall recover its attorneys’ fees and expenses.

 

5.7.Code Section 409A.  The benefits provided under this Plan shall be paid in such a manner to satisfy the short-term deferral exception to the application of Code Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).  To the extent that those benefits become subject to Section 409A of the Code, the terms of this Plan shall be construed and administered in a manner calculated to meet the requirements of Section 409A, or an exception thereto, and all applicable guidance, rulings and regulations.  To the extent a provision of the Plan is contrary to or fails to address the minimum requirements of Section 409A of the Code and all applicable guidance, rulings and regulations, the Company may, in its sole discretion take such steps as it deems reasonable to provide the coverage or benefits provided  under the Plan so as to comply with Section 409A of the Code and all applicable guidance rulings and regulations; provided, however, that any and all tax liability and penalties resulting from non-compliance with Section 409A of the Code shall remain the Participant’s sole responsibility. Nothing in this Plan shall be construed as a guarantee of any particular tax treatment to a Participant. Each Participant shall be solely responsible for his or her tax consequences with respect to all amounts payable under this Plan, and in no event shall the Company have any responsibility or liability if this Plan does not meet any applicable requirements of Section 409A.

 

 

6 

Exhibit 10.1

Exhibit 1 – Calculation of Financial Targets Based on Performance

Bonus payments for a Participant’s EBITDA and revenue factors are calculated based upon the following schedule: 

		
	
% of Financial Target Achieved 
	
Payout % for Financial Factor

	
Less than 80%
	
0%

	
80.0%
	
50.0%

	
81.0%
	
52.5%

	
82.0%
	
55.0%

	
83.0%
	
57.5%

	
84.0%
	
60.0%

	
85.0%
	
62.5%

	
86.0%
	
65.0%

	
87.0%
	
67.5%

	
88.0%
	
70.0%

	
89.0%
	
72.5%

	
90.0%
	
75.0%

	
91.0%
	
77.5%

	
92.0%
	
80.0%

	
93.0%
	
82.5%

	
94.0%
	
85.0%

	
95.0%
	
87.5%

	
96.0%
	
90.0%

	
97.0%
	
92.5%

	
98.0%
	
95.0%

	
99.0%
	
97.5%

	
100.0%
	
100.0%

	
101.0%
	
102.5%

	
102.0%
	
105.0%

	
103.0%
	
107.5%

	
104.0%
	
110.0%

	
105.0%
	
112.5%

	
106.0%
	
115.0%

	
107.0%
	
117.5%

	
108.0%
	
120.0%

	
109.0%
	
122.5%

	
110.0%
	
125.0%

	
111.0%
	
127.5%

	
112.0%
	
130.0%

	
113.0%
	
132.5%

	
114.0%
	
135.0%

	
115.0%
	
137.5%

	
116.0%
	
140.0%

	
117.0%
	
142.5%

	
118.0%
	
145.0%

	
119.0%
	
147.5%

	
120.0%
	
150.0%

	
Capped at 150%

 

7 

Exhibit 10.1

Exhibit 2 – BONUS PAYMENT CACLUATION EXAMPLE

 

The following are examples of how a bonus calculation may be made under the Plan. The Financial Targets used are for illustration purposes only, and do not reflect the actual Financial Targets under the Plan.

 

				
	
PERIOD A FINANCIAL TARGETS
	
PERIOD B FINANCIAL TARGETS

	
Revenue ($)
	
Revenue ($)

	
Government Solutions
	
1,000,000
	
Government Solutions
	
1,000,000

	
Commercial Services
	
1,000,000
	
Commercial Services
	
1,000,000

	
Consolidated
	
2,000,000
	
Consolidated
	
2,000,000

	
 

	
EBITDA ($) Target/Threshold
	
EBITDA ($) Target/Threshold

	
Government Solutions
	
300,000/240,000
	
Government Solutions
	
300,000/240,000

	
Commercial Services
	
400,000/320,000
	
Commercial Services
	
400,000/320,000

	
Consolidated
	
700,000/560,000
	
Consolidated
	
700,000/560,000

 

Assume Bob, a Participant in the Plan and a manager in the Government Solutions BU, has a base salary of $100,000 for the entire Plan Year. Bob’s total annual Target Bonus is 20% of his base salary ($20,000).  His Target Bonus for the year consists of $6,000 for the First Half Period, based on Financial Factors ($4,000 EBITDA/$2,000 Revenue), and $14,000 for the Second Half Period, based on Financial Factors ($6,000) plus annual Individual Performance Factor ($8,000, or 40% of $20,000). 

 

Scenario 1

At the conclusion of the First Half Period, the Company’s Consolidated Revenue was $2.0M and the Consolidated EBITDA was $715K.  The Government Solutions BU had revenue of $1.1M (110% of Target) and EBITDA of $315K (105% of Target).  Because the EBITDA Thresholds were met, Bob is eligible for a First Half Period bonus payment provided he is employed on the First Half Payment Date.

 

Using the scale on Exhibit 1, the Revenue component of Bob’s bonus calculates to $2,500 (125% x $2,000), and the EBITDA component of Bob’s bonus calculates to $4,500 (112.5% x $4,000), resulting in a total calculated bonus of $7,000.  However, because First Half Period bonus payments are capped at 100% of Target for the Period, Bob will only be paid $6,000 on the First Half Payment Date.  He is not entitled to the additional payment representing the Over-Performance ($1,000) until the Second Half Payment Date, and only if he is employed on the Second Half Payment Date.  

 

At the conclusion of the Second Half Period, the Company’s Consolidated Revenue was $2.0M and the Consolidated EBITDA was $650K. The Government Solutions BU had revenue of $1.02M (102% of Target) and EBITDA of $291K (97% of Target).  Because the EBITDA Thresholds were met, Bob is eligible for a Second Half Period bonus payment provided he is employed on the Second Half Payment Date. Additionally, Bob received a performance evaluation for stellar achievements, and is assigned an Individual Performance Factor of 125% of his Target ($10,000; or $8,000 x 125%).

 

8 

Exhibit 10.1

Provided Bob is employed on the Second Half Payment Date, Bob’s Second Half Period bonus payment is as follows:

First Half Period Over-Performance: $1,000

Second Half Period Revenue: $2,100 (105% x $2,000)

Second Half Period EBITDA: $3,700 (92.5% x $4,000)

Annual Individual Performance: $10,000

Total Second Half Period Bonus Payment: $16,800

Total Bonus Payments for the Plan Year: $22,800

 

Scenario 2

Same facts as Scenario 1, except for the Second Half Period, the Company’s Consolidated EBITDA was $550,000. Because the EBITDA Threshold was not met, Bob is not eligible for a Second Half Period bonus payment.  However, provided Bob remains employed on the Second Half Payment Date, he will be paid the $1,000 First Half Period Over-Performance and $10,000 for his annual Individual Performance. His total bonus payments for the year are as follows:

First Half Period Over-Performance: $1,000

Second Half Period Revenue: $0 

Second Half Period EBITDA: $0

Annual Individual Performance: $10,000

Total Second Half Period Bonus Payment: $11,000       

Total Bonus Payments for the Plan Year: $17,000

 

Scenario 3

Same facts as Scenario 1, except Bob’s employment with the Company ends on November 15, 2021. Bob is not eligible for any further payments under the Plan. 

First Half Period Over-Performance: $0

Second Half Period Revenue: $0 

Second Half Period EBITDA: $0

Annual Individual Performance: $0

Total Second Half Period Bonus Payment: $0

Total Bonus Payments for the Plan Year: $6,000

 

9

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