Document:

Beneficiary Outreach Letter

Exhibit 10.22
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December 31, 2021
To: William Kelley
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Re:Employment Transition and Separation
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Dear Bill:
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This letter agreement (this “Letter Agreement”) confirms the termination of your employment with Lightning eMotors, Inc. (the “Company”), to take effect on January 3, 2021 (the “Separation Date”). 
In connection with your termination, the Company wishes to ensure the smooth transition of your duties and responsibilities.
If you sign and return this Letter Agreement on or after the Separation Date but no later than January 20, 2022, then this Letter Agreement shall become a binding agreement between you and the Company on the date you sign this Letter Agreement (the “Effective Date”), and you will receive all compensation and benefits described herein subject to the conditions set forth herein. If you do not timely sign and return this Letter Agreement, or if you revoke your ADEA Release (as provided in Section 5(c) below), you will receive no compensation or benefits from the Company, except as provided in Section 1 below.
Therefore, for the receipt of good and adequate consideration, you and the Company agree as follows:
1.Final Pay; Business Expenses; Separation Benefits.
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(a)Upon the Separation Date, you will be paid all final wages accruing through the Separation Date as set forth on Exhibit A-1, in accordance with applicable law. You acknowledge and agree that the payments set forth on Exhibit A-1 accurately and completely reflect all wages earned by you through the Separation Date, and that you are not entitled to any additional wages or benefits, including any salary, bonuses, commissions, benefits, or other compensation, in connection with your employment with or termination of employment from the Company.
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	815 14th St SW, Suite A100
Loveland, CO 80537, USA
800.223.0740
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(b)As soon as possible and no later than the Separation Date, you will submit for reimbursement in accordance with the Company’s expense reimbursement policies and practices all unreimbursed business expenses, if any, incurred by you, so that the Company may promptly pay you.
 2.Consideration. With the receipt of the payments and benefits set forth in Section 1 above, you will have received all payments and benefits earned or owed to you in connection with your employment with the Company, and you shall not be entitled to any additional compensation or benefits, except as provided below, subject to the terms and conditions set forth in this Letter Agreement. You acknowledge that the compensation and benefits provided below is good and valid consideration for the release of claims and other covenants set forth below.
3.Equity Acceleration; Transition Consulting Services. 
(a)In addition to the payments set forth in Section 1, provided you timely execute and return this Letter Agreement and do not revoke your ADEA Release (as defined below) and subject to your continued compliance with the provisions set forth in Section 4, one hundred percent (100%) of each of your outstanding and unvested equity awards shall automatically become vested and, if applicable, exercisable and any forfeiture restrictions or rights of repurchase thereon shall immediately lapse with respect to one hundred percent (100%) of the shares subject thereto, as of immediately prior to the Separation Date.  You further acknowledge that any vested option that remains unexercised on the three (3)-month anniversary of your cessation of services (including upon the Consulting Period End Date (as defined below)) shall thereupon terminate.
(b)Provided you timely execute and return this Letter Agreement and do not revoke your ADEA Release, and subject to your continued compliance with the provisions set forth in Section 4, during the period (the “Consulting Period”) commencing on the Separation Date and ending on the twelve (12)-month anniversary thereof (the “Consulting Period End Date”), you shall be available to provide services to the Company, on a non-exclusive basis, as a consultant and shall provide transition services on an as-needed, as-requested basis, with an expectation of providing at least forty (40) hours of service per month (the “Transition Services”).  You acknowledge and confirm that you shall be obligated to preserve the confidentiality of any confidential information received during the Consulting Period, including information protected by the attorney-client privilege and the attorney work product doctrine.  During the Consulting Period, you reaffirm your commitment to remain in compliance with that certain Proprietary Information and Invention Assignment Agreement (the “PIIA Agreement”) entered into with the Company,  including, without limitation, the non-solicitation covenants set forth therein. 
(c)In exchange for the performance of the Transition Services during the Consulting Period, you will receive a consulting fee of $100,000 per year, payable in 12 equal monthly installments for forty (40) hours of consulting work per month (the “Consulting Fee”), subject to your continuing to provide, or remaining available to provide, the Transition Services to the Company.  On the earlier of (i) the date you cease to provide, or remain available to provide, the Transition Services or (ii) the Consulting Period End Date, you shall cease receiving the Consulting Fee and any unpaid portion shall thereupon be forfeited. 
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	815 14th St SW, Suite A100
Loveland, CO 80537, USA
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	Telephone: 1-800-223-0740
lightningemotors.com

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4.Restrictive Covenants.  Both during and after your employment you acknowledge your continuing obligations under your PIIA Agreement not to use or disclose any confidential or proprietary information of the Company, to refrain from certain solicitation activities and to not disparage the Company or its affiliates, officers, or directors, in each case as detailed in the PIIA Agreement.   You acknowledge that all such covenants remain in full force and effect pursuant to their terms, and that your continuing compliance with such obligations is a material condition to the Company’s agreement to enter into this Letter Agreement. In the event that following your Separation Date, the Company determines that during your employment with the Company and its affiliates, you engaged in conduct that would have constituted “cause” for termination or you breached your obligations under this Section 4 (including your obligations under the PIIA Agreement), the Company shall have no further obligations under Section 3 and  you will forfeit any stock options that remain outstanding and, to the extent permitted by applicable law, you shall pay the Company an amount equal to all proceeds received in connection with any sale or other disposition of any shares underlying your stock options.
Notwithstanding the foregoing, nothing herein shall restrict you from responding to a valid subpoena, nor shall you be prohibited from communicating with any government agency, including your right to communicate directly with the U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, the U.S. Department of Justice or similar agency, or to cooperate with or participate in any investigation conducted by such agency or to make any other disclosures that are protected under the whistleblower provisions of applicable law. For the avoidance of doubt, you do not need to notify or obtain the prior authorization of the Company to exercise any of the foregoing rights. Further, you understand that: (i) you will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in confidence to a federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law; (ii) you will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; and (iii) if you file a lawsuit for retaliation by the Company for reporting a suspected violation of law, you may disclose trade secrets to your attorney and use the trade secret information in the court proceeding if you: (x) file any document containing the trade secret under seal; and (y) do not disclose the trade secret, except pursuant to court order.
5.General Release of Claims and Agreement Not to Sue. You agree not to sue, or otherwise file any claim against, the Company or its parent companies, subsidiaries or affiliates, and any of their respective successors, assigns, directors, officers, managers, employees, attorneys, insurers, or agents (collectively, the “Company Parties”) for any reason whatsoever based on anything that has occurred at any time up to and including the Effective Date as follows:
(a)On behalf of yourself and your executors, administrators, heirs and assigns, you hereby release and forever discharge the Company Parties, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, loss, cost or expense, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which you now have or may hereafter have against any of the Company Parties by reason of any matter, cause, or thing whatsoever from the beginning of time through and 

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	815 14th St SW, Suite A100
Loveland, CO 80537, USA
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	Telephone: 1-800-223-0740
lightningemotors.com

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including the Effective Date, including, without limiting the generality of the foregoing: any Claims arising directly or indirectly out of, relating to, or in any other way involving in any manner whatsoever your employment by the Company or the separation thereof, including without limitation any and all Claims arising under federal, state, or local laws relating to employment; any Claims of any kind that may be brought in any court or administrative agency; any Claims arising under the Age Discrimination in Employment Act, the Older Workers Benefits Protection Act, the Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Equal Pay Act, the Civil Rights Act of 1866, Section 1981, 42 U.S.C. § 1981, the Family and Medical Leave Act of 1993, the Americans with Disabilities Act of 1990, the False Claims Act, the Employee Retirement Income Security Act, the Worker Adjustment and Retraining Notification Act, the Fair Labor Standards Act, the Sarbanes-Oxley Act of 2002, the National Labor Relations Act of 1935, the Uniformed Services Employment and Reemployment Rights Act of 1994, the Fair Credit Reporting Act, the Genetic Information Nondiscrimination Act, the Colorado Anti-Discrimination Act, the Lawful Off-Duty Activities Statute, the Personnel Files Employee Inspection Right Statute, the Colorado Labor Peace Act, the Colorado Labor Relations Act, the Colorado Equal Pay Act, the Colorado Minimum Wage Order, and the Colorado Genetic Information Non-Disclosure Act, each of the foregoing as may have been amended, and any other federal, state, or local statute, regulation, ordinance, constitution, or order concerning labor or employment, termination of labor or employment, wages and benefits, retaliation, leaves of absence, or any other term or condition of employment; Claims for breach of contract; Claims for unfair business practices; Claims arising in tort, including, without limitation, Claims of wrongful dismissal or discharge, discrimination, harassment, retaliation, fraud, misrepresentation, defamation, libel, infliction of emotional distress, violation of public policy, and/or breach of the implied covenant of good faith and fair dealing; and Claims for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages, injunctive relief and attorney’s fees. 
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(b)Notwithstanding the generality of the foregoing, you do not release any Claims that cannot be released as a matter of law including, without limitation, (i) your right to seek indemnification against the Company; (ii) your right to file a charge of discrimination, harassment, interference with leave rights, failure to accommodate, or retaliation with the Equal Employment Opportunity Commission, or similar local agency, or to cooperate with or participate in any investigation conducted by such agency, provided, however, that you hereby release your right to receive damages in any such proceeding brought by you or on your behalf; (iii) any right to file an unfair labor practice charge under the National Labor Relations Act; (iv) your right to communicate directly with the U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, the U.S. Department of Justice or similar agency, or to cooperate with or participate in any investigation conducted by such agency; or (v) your right to make any other disclosures that are protected under the whistleblower provisions of applicable law. For the avoidance of doubt, you do not need to notify or obtain the prior authorization of the Company to exercise any of the foregoing rights.
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(c)You acknowledge that the general release of Claims set forth in Section 5(a) above includes a release of Claims under the Age Discrimination in Employment Act (the “ADEA Release”). In accordance with the Older Workers Benefit Protection Act, you acknowledge as follows:
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	815 14th St SW, Suite A100
Loveland, CO 80537, USA
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	Telephone: 1-800-223-0740
lightningemotors.com

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(i)You have been advised to consult an attorney of your choice before signing this Letter Agreement and you either have so consulted with counsel or voluntarily decided not to consult with counsel;
(ii)You have been granted over twenty-one (21) days after you were presented with this Letter Agreement to decide whether or not to sign it. You agree that such period shall not be extended due to any material or immaterial changes to the Letter Agreement;
(iii)You have carefully reviewed and considered and fully understand the terms set forth in this Letter Agreement, including all exhibits hereto; and
(iv)You have the right to revoke your ADEA Release within seven (7) calendar days of signing this Letter Agreement. If you wish to revoke your ADEA Release, you must deliver written notice stating your intent to so revoke by emailing the General Counsel, on or before 5:00 p.m. on the seventh (7th) day after the date on which you sign this Letter Agreement. In the event your ADEA Release is so timely revoked, you shall not be entitled to any of the benefits set forth in this Letter Agreement, except as provided in Section 1.
6.Arbitration. Without limiting your right to file Claims with governmental agencies as provided in Section 5(b), you and the Company agree and desire that all disputes between you and the Company relating to or arising out of your employment with the Company or this Letter Agreement, other than Claims which you have effectively released pursuant to Section 5(a) above and Claims that cannot, as a matter of law, be required to arbitrate (collectively, “Covered Claims”), will, to the fullest extent permitted by law, be resolved by final and binding arbitration in the county where you primarily worked for the Company as of the Separation Date. The arbitration will be conducted by a single, neutral arbitrator in accordance with the applicable arbitration rules (“Rules”) of the Judicial Arbitration and Mediation Service (“JAMS”) in effect when the dispute is submitted to arbitration, which can be found at www.jamsadr.com, or  other rules mutually agreed upon in writing by the Company and you. The arbitrator shall be appointed as mutually agreed upon by you and the Company or, if no agreement can be reached, by JAMS pursuant to its Rules. The Federal Arbitration Act, 9 U.S.C. §§ 1 et seq. shall govern the interpretation and enforcement of this arbitration clause. The Company and you shall be entitled to more than minimal discovery and the arbitrator shall prepare a written decision containing the essential findings and conclusions on which the award is based so as to ensure meaningful judicial review of the decision. The arbitrator shall apply the same substantive law, with the same statutes of limitation and the same remedies that would apply if the claims were brought in a court of law. The Company shall pay all costs unique to arbitration, including without limitation arbitration administrative fees, arbitrator compensation and expenses, and costs of any witnesses called by the arbitrator. Unless otherwise ordered by the arbitrator under applicable law, you and the Company shall each bear your or its own expenses, such as expert witness fees and attorneys’ fees and costs. Nothing herein shall prevent you or the Company from seeking a statutory award of reasonable attorneys’ fees and costs, if any. This Section 6 shall be governed by and enforceable pursuant to the Federal Arbitration Act. This Section 6 is intended to be the exclusive method for resolving any and all Claims by you or the Company against each other for payment of damages under this Letter Agreement or relating to your employment; provided, however, that neither this Letter Agreement nor the submission to arbitration shall limit your or the Company’s 

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	815 14th St SW, Suite A100
Loveland, CO 80537, USA
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	Telephone: 1-800-223-0740
lightningemotors.com

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right to seek provisional relief, including without limitation injunctive relief, in any court of competent jurisdiction.
7.Waiver of Right to Jury Trial; Class Action Waiver. The Company and you understand and agree that this Letter Agreement constitutes a waiver of its and your right to a trial by court or jury of any Covered Claims. You understand and acknowledge that this Letter Agreement also constitutes a waiver of your right to bring any Covered Claim as part of or in connection with, or to participate with each person in or recover through, a class action lawsuit or claim. You and the Company agree that no Covered Claim shall be resolved by a court or jury trial, and no Covered Claim shall be brought as a class action.
8.Cooperation. After the Separation Date, you shall assist and cooperate with the Company and its affiliates, (i) concerning reasonable requests for information about the business of the Company or its affiliates or your involvement and participation therein; (ii) in connection with the defense, prosecution or investigation of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company or its subsidiaries or affiliates, including any proceeding before any arbitral, administrative, judicial, legislative, or other body or agency, including testifying in any proceeding to the extent such claims, actions, investigations or proceedings relate to services performed or required to be performed by you, pertinent knowledge possessed by you, or any act or omission by you; and (iii) and in connection with any investigation or review by any federal, state or local regulatory, quasi- or self-regulatory or self-governing authority or organization (including, without limitation, the SEC and FINRA) as any such investigation or review relates to services performed or required to be performed by you, pertinent knowledge possessed by you, or any act or omission by you.  Your full cooperation shall include, but not be limited to, being available to meet and speak with board members, officers or employees of the Company, its affiliates and/or their counsel at reasonable times and locations, executing accurate and truthful documents, appearing at the Company’s request as a witness at depositions, trials or other proceedings without the necessity of a subpoena, and taking such other actions as may reasonably be requested by the Company and/or its counsel to effectuate the foregoing.  In requesting such services, the Company will consider other commitments that you may have at the time of the request.  
9.Employee’s Representations. You represent and warrant that:
(a)You have returned to the Company all Company property in your possession, including, without limitation, all Confidential Information, laptops, cell phones, portable devices, software, keys, access badges or IDs, credit cards, thumb drives, equipment, supplies, records, files, handbooks, guidelines, materials, documents, and all other property belonging to the Company, whether in physical or electronic form, and all copies thereof.
(b)You are not owed wages, salaries, commissions, bonuses, business expenses, benefits, or other compensation, other than as set forth in this Letter Agreement.
(c)During the course of your employment you did not sustain any injuries for which you might be entitled to compensation pursuant to worker’s compensation law.
(d)You have not initiated any adversarial proceedings of any kind against any of the Company Parties, nor will you do so in the future, except as specifically allowed by this Letter Agreement.
(e)You have signed this Letter Agreement knowingly and voluntarily, without any duress. 

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	815 14th St SW, Suite A100
Loveland, CO 80537, USA
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	Telephone: 1-800-223-0740
lightningemotors.com

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(f)In signing this Letter Agreement, everything you are receiving is set forth herein, and you are not relying upon any agreements, promises or statements, verbal, written, or implied, that are not expressly set forth in this Letter Agreement.

10.Severability. The provisions of this Letter Agreement are severable. If any provision is held to be invalid or unenforceable, it shall not affect the validity or the enforceability of any other provision. You represent that you have thoroughly read and considered all aspects of this Letter Agreement, that you understand all of its provisions, and that you are voluntarily entering into this Letter Agreement.
11.Governing Law. Except as expressly provided otherwise herein, this Letter Agreement will in all respects be interpreted, enforced and governed under the laws of the State of Colorado, without regard to the conflicts of law rules thereof.
12.Integrated Agreement. This Letter Agreement, together with the PIIA Agreement, sets forth the entire agreement between you and Company and supersedes and replaces any and all prior oral or written agreements or understandings between you and Company. 
13.Amendment of this Letter Agreement. This Letter Agreement may not be altered, amended, or modified except by a further written document signed by you and an authorized representative of Company.
14.Execution in Counterparts. This Letter Agreement may be executed in counterparts with the same force and effectiveness as though executed in a single document. Facsimile and electronic signatures shall have the same force and effectiveness as original signatures.
15. Section 409A. 
(a) General. The intent of the parties is that the payments and benefits under this Agreement comply with or be exempt from Section 409A of the Code and the Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the Effective Date, (“Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith. Notwithstanding any provision of this Agreement to the contrary, if the Company determines that any compensation or benefits payable under this Agreement may be subject to Section 409A, the Company shall work in good faith with you to adopt such amendments to this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Company determines are necessary or appropriate to avoid the imposition of taxes under Section 409A, including, without limitation, actions intended to (i) exempt the compensation and benefits payable under this Agreement from Section 409A, and/or (ii) comply with the requirements of Section 409A; however, this Section 17 shall not create an obligation on the part of the Company to adopt any such amendment, policy or procedure or take any such other action, nor shall the Company (A) have any liability for failing to do so, or (B) incur or indemnify you for any taxes, interest or other liabilities arising under or by operation of Section 409A. 
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	815 14th St SW, Suite A100
Loveland, CO 80537, USA
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	Telephone: 1-800-223-0740
lightningemotors.com

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(b) Installments and Reimbursements. For purposes of Section 409A, your right to receive installment payments shall be treated as a right to receive a series of separate and distinct payments; and (iii) to the extent that any reimbursement of expenses or in-kind benefits constitutes “deferred compensation” under Section 409A, such reimbursement or benefit shall be provided no later than December 31st of the year following the year in which the expense was incurred. The amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year. The amount of any in-kind benefits provided in one year shall not affect the amount of in-kind benefits provided in any other year.
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Signature Page Follows
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	815 14th St SW, Suite A100
Loveland, CO 80537, USA
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	Telephone: 1-800-223-0740
lightningemotors.com

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To indicate your acknowledgment and agreement to the terms above, please date and sign the original of this Letter Agreement in the place indicated below and return it to me on or after your Separation Date, but no later than January 20, 2021.
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Very truly yours,
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LIGHTNING EMOTORS, INC.
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/s/ Arthi Chakravarthy   
December 31, 2021
General Counsel
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Accepted and agreed to on 
this 31st day of December, 2021 by:
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/s/ William Kelley
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	815 14th St SW, Suite A100
Loveland, CO 80537, USA
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	Telephone: 1-800-223-0740
lightningemotors.com

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Exhibit A-1
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The final wages referenced in Section 1 shall include your unpaid base salary accruing through the Separation Date; and
Such final wages will be paid out in accordance with the applicable plan documents, if any, and the applicable wage payment laws and will be subject to applicable taxes, garnishments and any other withholding required by law or authorized by you.

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	815 14th St SW, Suite A100
Loveland, CO 80537, USA
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	Telephone: 1-800-223-0740
lightningemotors.com

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Exhibit 10.23
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2022 Short-Term Incentive (STI) Plan
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PURPOSE OF THE PLAN
The purpose of the 2022 Short-Term Incentive Plan (the “Plan”) is to reward Selected Participants (as defined below) of Lightning eMotors, Inc (the “Company”) for the achievement of specific Company strategic goals.
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EFFECTIVE DATE
The Plan is in effect from January 1, 2022, to December 31, 2022 (“Plan Term”) and supersedes all prior arrangements designed to provide annual incentive Bonus Awards. 
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DEFINITIONS
For the purposes of this document only, the following definitions will apply:
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“Board of Directors” shall mean the Board of Directors of Lightning eMotors, Inc. that has delegated administration of the Plan to the Committee (defined below).
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“Bonus Award” shall mean the actual award paid to a Selected Participant, as determined by the Committee, paid in cash following the end of the Plan Term. 
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 “Committee” shall mean the Compensation Committee of the Board of Directors of Lightning eMotors, Inc. that has delegated administration of the Plan to the Company. The Committee delegates approval of individual Bonus Awards to individuals who are not Section 16 “officers” as defined under Rule 16a-1 under the Securities Exchange Act to the Chief Executive Officer.
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“Company” shall mean Lightning eMotors, Inc., a Delaware corporation, and its consolidated subsidiaries. 
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“Fiscal Year” shall mean the 12-month period from January 1, 2022, to December 31, 2022. 
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“Performance Period” shall mean the twelve (12) month performance measurement period in the Plan Term. For the avoidance of doubt, payout for the Performance Period would be made after the end of the Fiscal Year as defined in the term “Bonus Award” above.
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“Plan” shall mean the 2022 Short-Term Incentive Plan whose terms and conditions are presented herein.
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“Retirement” shall mean a combination of age and years of service which total a minimum of sixty-five (65) provided that the minimum years of service is no less than five (5) years. 
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“Selected Participant” shall mean regular, full-time employees of the Company who are deemed eligible, and selected to participate in the Plan by the Committee for Section 16 officers, and by the Chief Executive Officer for others.
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ELIGIBILITY
Participation is limited to Selected Participants who are classified with a job level of Tier 6 or higher and are not covered by any commission plan or sales incentive plan.. Notwithstanding anything in the Plan to the contrary, and unless otherwise determined by the Committee, an individual shall not be eligible to participate in the Plan if such individual (a) performs services for the Company and is classified or paid as an independent contractor by the Company or (b) performs services for the Company pursuant to an agreement between the Company and any other person or entity including an employee leasing organization.
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To earn and be eligible for a Bonus Award, if any, a Selected Participant must be actively employed in the eligible role as of December 1, 2022 and must be employed and continue to be employed and provide the services required of their position through the applicable Bonus Award payment date.  
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Irrespective of the terms of this Plan, if the Selected Participant is subject to a Company-issued employment or change of control agreement (“CIC Agreement”), those terms may take precedence in particular situations related to certain terminations and associated payment of a Bonus Award.  Failure to comply with the Company’s policies, including but not limited to audit and control issues, may result in a loss of Bonus Award eligibility and potentially termination of employment. 
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MEASURES OF PERFORMANCE
Generally, no later than 90 days after the beginning of the Performance Period, performance metrics have been or will be established by the Committee for such period based on the Company’s 2022 Annual Operating Plan, as periodically updated.  The performance metrics translate the business strategy into defined targets against which actual business results are measured during the Fiscal Year. Under the Plan, the corporate bonus pool for 2022 will be funded to the extent the Company achieves certain threshold, target or stretch levels of the pre-established performance metrics.  
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Each of the performance metrics carries a different weight in funding the corporate bonus pool (generally referred to herein as “corporate achievement”).  Corporate achievement funds the bonus pool at 50% of threshold, 100% at target and 150% at stretch, each of which will be determined by the Committee. The Committee may determine that one or more performance metrics must be met to trigger pool funding for the remaining performance metrics.  Achievement percentages between the threshold and target and between the target and stretch levels will be interpolated based on actual results in each category to determine the 

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final achievement percentage to fund the pool.  The Committee also has the discretion to establish other individual achievement scales for Selected Participants. 
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The Committee reserves the right to define Company performance metrics, and to review, revise, amend the performance metrics at any time without notice at its sole discretion. Among the performance metrics the Committee may use (some of which may be non-GAAP financial measures), are the following:  (a) net earnings or net income; (b) operating earnings, operating income; (c) pretax earnings; (d) earnings per share; (e) earnings per share after applying a capital charge; (f) share price, including growth measures and total stockholder return; (g) earnings before interest and taxes and related margin; (h) earnings before interest, taxes, depreciation and/or amortization and related margin; (i) sales or revenue growth, whether in general, by type of production, application or service, or by type of customer; (j) gross or operating profit or margins; (k) return measures, including return on assets, capital, investment, equity, sales or revenue; (l) economic value add (EVA) with or without a capital charge; (m) cash flow, including operational cash flow, free cash flow, cash flow return on equity and cash flow return on investment; (n) productivity ratios; (o) expense targets; (p) market share; (q) financial ratios as provided in credit agreements of the Company and its subsidiaries and interest expense; (r) working capital targets; (s) completion of acquisitions of businesses/companies or attainment of synergies; (t) completion of divestitures and asset sales; (u) operating metrics, design wins and inventory; (v) any combination of any of the foregoing business criteria and associated margins, some of which may exclude restructuring charges, acquisition related costs, stock based compensation, amortization of intangibles, tax release items, certain one-time tax items and other one-time charges, and may be limited to continuing operations.
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The Committee may, in its sole and absolute discretion, make discretionary adjustments (including reduction) to any Selected Participant’s bonus opportunity or payout amount based on individual or corporate performance.  
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BONUS AWARD CALCULATION
Potential Bonus Awards are calculated as a percentage of the Selected Participant’s year-end annualized base salary (hereinafter referred to as “Target Percent”). The annual Target Percentage will be generally determined by the employment levels (Tier 0 through Tier 6). 
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Following the end of each Performance Period, the Committee will evaluate actual business results against each established performance metric in order to determine and certify the final achievement percentage.  Subject to meeting the conditions and terms of the Plan, the final achievement percentage will be multiplied by the Select Participant’s year-end annualized base salary and their Target Percent resulting in a final Bonus Award payment. 
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METHOD AND TIMING OF PAYMENTS

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Bonus Award payments, if any, are paid after the Fiscal Year-end review, authorization of the payments by the Committee and after the filing of certain regulatory reports or other items, but generally no later than 90 days from the end of the Fiscal Year during which the applicable Plan Term ends.  Selected Participants must be actively employed by the Company on the date the Bonus Awards are paid in order to earn a Bonus Award, except in the case of eligible Retirement, in which case a prorata Bonus Award may be approved by the Compensation Committee, or the Chief Executive Officer for employees who are not Section 16 officers. Bonus Awards will be paid in cash.  Bonus Award payouts are limited to the extent the bonus pool is funded by corporate achievement of performance metrics. 
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The Bonus Award payment is subject to standard deductions and withholdings specific to the Selected Participant.  Such deductions may include, but are not limited to, any participant elections made by the Selected Participant for contributions through payroll into the relevant qualified employer-sponsored Plans.  Any such deferrals will be made in accordance with the terms of the applicable tax qualified employer-sponsored Plans. 
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PROMOTIONS / DEMOTIONS 
The Company may in its sole and absolute discretion determine whether a promotion allows the Selected Participant to be transitioned to another plan or whether the potential Bonus Award is pro-rated or would continue at the current target level through the end of the Fiscal Year. If a Selected Participant’s level changes during the Plan Term, the Target Percent used in the calculation will be prorated between the lower percentage and the higher percentage dependent on the time worked in each role. A demotion of a Selected Participant during the Fiscal Year may be determined by the Company in its sole and absolute discretion. Such a demotion may result in a reduction of the Bonus Award or ineligibility under the Plan.  
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NEW HIRES / LATE ENTRANTS
Selected Participants who become eligible to participate in the Plan after the beginning of the Fiscal Year (promoted, hired, rehired or converted from a non-employee status) may be eligible for a Bonus Award on a prorata basis, provided that the Selected Participant must be actively employed in the eligible role as of December 1, 2022.   The Company may require a twelve (12) month waiting period prior to eligibility for Selected Participants who join the Company due to an acquisition.  
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TERMINATION OF EMPLOYMENT 
A condition precedent to earning any Bonus Award or prorated portion thereof is continuous active full-time employment, which shall include qualifying leaves of absence through the Bonus Award payment date. Selected Participants must be actively employed by the Company on the date the Bonus Awards are paid in order to earn and receive a Bonus Award.  In the case of an eligible Retirement, payment of a prorata award will be based on time worked in the role through the retirement date. In such cases, the Bonus Award payment will be paid on the Bonus Award payment date and not sooner unless specifically approved by the Committee. 
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ADMINISTRATION

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The Committee will be responsible for the administration of the Plan and only the Committee has the ability to modify the Plan.  The Committee is authorized to interpret the Plan, to prescribe, amend and rescind rules and regulations deemed advisable, and to make all other administrative determinations necessary. All modifications to the Plan related to the CEO must be reviewed by the Board of Directors.  
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The Committee reserves the right to define Company performance metrics, to determine and assign individual performance goals and objectives for Selected Participants. Furthermore, the Committee may determine to exclude certain adjustments, one-time taxes and other charges from the performance metrics..  
The Committee, in its sole and absolute discretion, may change Performance Periods based on market, business or other conditions, and review, revise, amend, or terminate the Plan at any time without notice at its sole discretion.   Any decision of the Committee in the interpretation and administration of the Plan, as described herein, shall lie within its sole and absolute discretion and shall be final, conclusive, and binding on all parties concerned.
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GENERAL
Except for certain limited exceptions with respect to CIC Agreements (as noted above), this Plan document supersedes any prior communications or previous documents a Selected Participant may have received. In the event of any conflict between a Selected Participants employment agreement with the Company and this Plan, the terms of the Participant’s employment agreement will control for those provisions that do not relate to annual bonus incentive compensation.  
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The Company shall not be required to fund or otherwise segregate any cash or any other assets which may at any time be paid to Selected Participants under the Plan.  That Plan shall constitute an “unfunded” plan of the Company.
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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 has not been included.  Any questions regarding this Plan should be directed to the Human Resources department. 
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TERMS AND CONDITIONS
This Plan does not constitute a guarantee of work, job status or employment for any period of time.  Your employment at the Company is at will and either you or the Company may terminate the relationship at any time.  This document is not intended to create a contract of employment or commitment of ongoing payment, express or implied.

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