Document:

Exhibit 10.1

 

	
 

 

EXTERRAN HOLDINGS, INC.

AWARD NOTICE AND AGREEMENT
   PERFORMANCE UNITS
    	

    

 

Exterran Holdings, Inc. (the “Company”), has granted to you (the “Participant”) a Performance Award (your “Award”) under the Exterran Holdings, Inc. 2013 Stock Incentive Plan (as may be amended from time to time, the “Plan”).  Each Performance Unit (as defined below) is granted in tandem with a corresponding Dividend Equivalent, which shall entitle you to payments in accordance with Section 2 below.  All capitalized terms not explicitly defined in this Award Notice and Agreement (the “Award Notice”) but defined in the Plan shall have the respective meanings ascribed to them in the Plan.

 

The main terms of your Award are as follows:

 

1.                                      Award.  You have been granted a number of performance units, the payout of which is based on the attainment of certain performance objectives (the “Performance Units”), as described herein.  Each Performance Unit is granted in tandem with a corresponding Dividend Equivalent.  The Award is stated at target; however, the actual number of Performance Units (or the cash equivalent thereof) that becomes earned and payable hereunder may be greater or less than the target number.

 

2.                                      Dividend Equivalents.  Each Performance Unit granted hereunder is hereby granted in tandem with a corresponding Dividend Equivalent, which Dividend Equivalent shall remain outstanding from the Grant Date until the earlier of the payment or forfeiture of the Performance Unit to which it corresponds (the “Dividend Equivalent Period”).  Each Dividend Equivalent shall entitle you to receive payments, subject to and in accordance with this Award Notice, in an amount equal to each dividend (including any extraordinary or other non-recurring dividend), in each case, that (a) is made by the Company in respect of the share of Common Stock underlying the Earned Unit to which such Dividend Equivalent relates, and (b) has an applicable Dividend Date (as defined below) occurring during the Dividend Equivalent Period.  Such amounts (if any) shall be payable no later than thirty (30) days following the date on which such dividends are paid generally to the Company’s stockholders; provided, that no such payments shall be made prior to the date on which the Earned Unit becomes an Earned Unit, and any Dividend Equivalent payments that would have been made prior to the date on which the Earned Unit becomes an Earned Unit shall be paid in a single lump sum no later than sixty (60) days following the date on which the Earned Unit becomes an Earned Unit.  Notwithstanding the foregoing, upon the payment of an Earned Unit or forfeiture of a Performance Unit, the Dividend Equivalent granted in tandem with such paid Earned Unit or forfeited Performance Unit, as applicable, and the Dividend Equivalent Period shall terminate with respect to such Earned Unit or Performance Unit, as applicable.  For the avoidance of doubt, a Dividend Equivalent will only entitle you to payments relating to dividends with an applicable Dividend Date occurring between the Grant Date and the date on which you receive payment in respect of the Earned Unit to which it corresponds in accordance with Section 8 below (or, if earlier, the date on which you forfeit the Performance Unit to which it corresponds), and you shall not be entitled to any Dividend Equivalent payment with respect to any Performance Unit that does not become an Earned Unit.  The Dividend Equivalents and any amounts that may become distributable in respect thereof shall be treated separately from the Performance Units and the rights arising in connection therewith for purposes of Section 409A of the Code (including for purposes of the designation of the time and form of payments required by Section 409A of the Code).  For purposes of this Notice, “Dividend Date” shall mean, with respect to any dividend made in respect of the Common Stock of the Company, the date preceding the ex-dividend date applicable to such dividend.

 

3.                                      Grant Date.  The Grant Date of this Award is the date of approval by the Board of Directors of the Company or an appropriate committee of the Board of Directors.

 

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4.                                      Vesting.  Subject to Section 5 below, your Award will become payable (as provided in Section 8 below) at 0% to 150% of the Performance Units based on the achievement of the applicable pre-determined Performance Measures over the applicable performance period (the “Performance Period”) and the satisfaction of the time-based vesting requirements described below.  The target Performance Units equals the number of Performance Units (or the cash equivalent thereof) that would be earned and paid if the Performance Measures are met at the target level over the Performance Period.

 

This Award is further subject to a time-based vesting schedule.  One-third of the Performance Units subject to this Award will vest on each of the first, second and third anniversaries of the Grant Date (each such date, a “Vest Date”); however, except as set forth in Sections 5 and 6 below, you must remain in continuous service as an Employee of the Company or one of its Affiliates at all times from the Grant Date up to and including the applicable Vest Date for the applicable portion of the Award to vest.

 

Exhibit A hereto provides (a) the Performance Period for your Award, (b) an explanation of the Performance Measures and (c) the percentage of the Award that will be earned, if any, based on the achievement of the Performance Measures (subject to the time-based vesting requirements set forth in this Notice).

 

5.                                      Termination of Service.

 

(a)                                 Subject to Sections 5(b) and 6 below, if your status as an Employee with the Company or an Affiliate terminates for any reason, other than due to your death or Disability or as provided in Section 6 below, the unvested portion of your Award (after taking into account any accelerated vesting that occurs in connection with such termination, if any) and the Dividend Equivalents corresponding with such unvested portion of your Award will be automatically cancelled and forfeited on the date of such termination unless the Committee directs otherwise.

 

(b)                                 If your status as an Employee of the Company or an Affiliate terminates as a result of your death or Disability, then your Award will immediately vest and be payable as of such date based upon the Achievement Percentage (defined in Section 8) or, if the Achievement Percentage has not yet been determined, based upon the target performance level.  Any such date on which such accelerated vesting occurs pursuant to this Section 5(b) is referred to in this Award Notice as an “Accelerated Vest Date”.

 

6.                                      Corporate Change.  In the event a Corporate Change occurs, notwithstanding anything to the contrary in this Award Notice, this section will govern the vesting of your Award on and after the date the Corporate Change is consummated.

 

(a)                                 Determination of Achievement Percentage.  If a Corporate Change is consummated prior to the end of the Performance Period and you are employed by the Company or an Affiliate as of such consummation date, then (a) the Committee, in its discretion, shall determine in good faith the Achievement Percentage (as defined below) based on performance during the portion of the Performance Period commencing on the first day of the Performance Period and ending on the date the Corporate Change is consummated or (b) if the Committee determines, in its discretion, that no such determination can reasonably be made, then the Achievement Percentage shall be deemed to be 100% (and your Earned Units (as defined below) will be determined based upon such Achievement Percentage).

 

(b)                                 Termination of Service Following a Corporate Change.  If your status as an Employee of the Company or an Affiliate is terminated on or within 18 months following the date a Corporate Change is consummated (i) by the Company or such Affiliate without Cause, (ii) by you for Good Reason (as defined below) or (iii) as a result of your death or Disability, then the unvested portion of your Award as of the date of your Termination of Service as an Employee will immediately vest in full as of the date of your Termination of Service as an Employee.  If your status as an Employee is terminated by the Company with Cause or by you without Good Reason on or after the date the Corporate Change is consummated, then the unvested portion of your Award and the Dividend Equivalents corresponding

 

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with such unvested portion of your Award will be automatically forfeited on the date of your Termination of Service as an Employee.

 

For purposes of this Award Notice, unless otherwise provided in a written agreement between the Company or an Affiliate and you, “Good Reason” means the occurrence of any of the following without your express written consent:

 

(i)            A reduction of 10% or more of your base salary;

(ii)           Your being required to be based at any other office or location of employment more than 50 miles from your primary office or location of employment immediately prior to the Corporate Change; or

(iii)          The willful failure by the Company or an Affiliate to pay you your compensation when due;

 

provided, however, unless otherwise provided in a written agreement between the Company or an Affiliate and you, that Good Reason does not exist with respect to a matter unless you give the Company or an Affiliate, as applicable, a notice of termination due to such matter within 20 days of the date such matter first exists.  If you fail to give a notice of termination timely, you shall be deemed to have waived all rights you may have under this Award Notice with respect to such matter.  The Company or an Affiliate will have 30 days from the date of your notice of termination to cure the matter.  If the Company or an Affiliate cures the matter, your notice of termination shall be deemed rescinded.  If the Company or an Affiliate (as applicable) fails to cure the matter timely, your status as an Employee shall be deemed to have been terminated by the Company for Good Reason at the end of the 30-day cure period.

 

7.                                      Transaction.  As described on Exhibit A hereto, if the Transaction (as defined below) is consummated prior to the end of the Performance Period and you are employed by the Company or an Affiliate as of such consummation date, then the Achievement Percentage shall be 100% (and your Earned Units (as defined below) will be determined based upon such Achievement Percentage). For purposes of this Award Notice, “Transaction” means the Company’s separation of its international services and global fabrications businesses into a separate, publicly-traded company.

 

8.                                      Determination of Earned Units, Settlement and Payment.  As soon as administratively practicable following the conclusion of the Performance Period (or, if earlier, the date on which a Corporate Change is consummated), the Committee shall certify in writing the level of performance achieved with respect to the Performance Measures (the “Achievement Percentage”).  The actual number of Performance Units payable under your Award shall be equal to the product of the target number of Performance Units multiplied by the Achievement Percentage or, in the event of your termination due to your death or Disability during the Performance Period or a Corporate Change during the Performance Period in connection with which the Committee determines, in its discretion, it cannot reasonably determine the Achievement Percentage, 100% of the Performance Units (in any case, such number of Performance Units payable under your Award, the “Earned Units”).  In addition, at this time the Committee shall determine the form of payment in respect of any Earned Units that become vested in accordance with the terms of this Award Notice, which shall be (a) an equivalent number of shares of Common Stock of the Company or (b) a lump sum cash payment equal to the Fair Market Value of an equivalent number of shares of Common Stock as of the applicable Vest Date, Accelerated Vest Date or Corporate Change Vest Date of such vested Earned Units or (c) a combination thereof.

 

As soon as administratively practicable after your Earned Units vest, but in no event later than the sixtieth (60th) day following the applicable Vest Date, Accelerated Vest Date, or Corporate Change Vest Date of such Earned Units, you will receive payment in respect of such vested Earned Units in the form of cash, shares of Common Stock or a combination thereof, as applicable. Payments in respect of any corresponding Dividend Equivalents shall be paid in the form in which the applicable dividends were paid, unless otherwise determined by the Committee.

 

Except as provided below, this Award and the Dividend Equivalents are intended to be exempt under Section 409A of the Code (“Section 409A”) under the short-term deferral exclusion and will be interpreted and operated consistent with such intent.  If, for any reason, the Company determines that this Award and/or the Dividend Equivalents are subject to Section 409A, the Company shall have the

 

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right in its sole discretion (without any obligation to do so or to indemnify you or any other person for failure to do so) to adopt such amendments to the Plan or this Award Notice, or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Company determines are necessary or appropriate to provide for either the Performance Units and/or Dividend Equivalents to be exempt from the application of Section 409A or to comply with the requirements of Section 409A.

 

9.                                      Stockholder Rights.  The Performance Units represent an unfunded, unsecured and contingent right to receive payment.  Except as otherwise provided in Section 2 above, you have no rights as a stockholder with respect to any Performance Units unless and until you receive shares of Common Stock of the Company in respect of your vested Earned Units.  The grant of the Performance Units under your Award shall be implemented by a credit to a bookkeeping account maintained by the Company.

 

10.                               Non-Transferability. You cannot sell, transfer, pledge, exchange, hypothecate or otherwise dispose of your Award or the Dividend Equivalents except as otherwise set forth in Paragraph XV(i) of the Plan.

 

11.                               No Right to Continued Service.  Nothing in this Award Notice guarantees your continued service as an Employee or other service provider of the Company or any of its Affiliates or interferes in any way with the right of the Company or its Affiliates to terminate your status as an Employee or other service provider at any time.

 

12.                               Data Privacy.  You consent to the collection, use, processing and transfer of your personal data as described in this paragraph.  You understand that the Company and/or its Affiliates hold certain personal information about you (including your name, address and telephone number, date of birth, social security number, social insurance number, etc.) for the purpose of administering the Plan (“Data”).  You also understand that the Company and/or its Affiliates will transfer this Data amongst themselves as necessary for the purpose of implementing, administering and managing your participation in the Plan, and that the Company and/or its Affiliates may also transfer this Data to any third parties assisting the Company in the implementation, administration and management of the Plan.  You authorize them to receive, possess, use, retain and transfer the Data, in electronic or other form, for these purposes.  You also understand that you may, at any time, review the Data, require any necessary changes to the Data or withdraw your consent in writing by contacting the Company.  You further understand that withdrawing your consent may affect your ability to participate in the Plan.

 

13.                               Withholding.  Your Award is subject to applicable income and/or social insurance tax withholding obligations (including, without limitation, any applicable FICA, employment tax or other social security contribution obligations), and the Company and its Affiliates may, in their sole discretion, withhold a sufficient number of shares or amount of cash otherwise issuable or payable to you under this Award and/or with respect to the Dividend Equivalents in order to satisfy any such withholding obligations.  If necessary, the Company reserves the right to withhold from your regular earnings an amount sufficient to meet the withholding obligations.

 

14.                               Plan Governs.  This Award Notice is subject to the terms of the Plan, a copy of which is available at no charge through your UBS account or which will be provided to you upon request as indicated in Section 18.  All the terms and conditions of the Plan, as may be amended from time to time, and any rules, guidelines and procedures which may from time to time be established pursuant to the Plan, are hereby incorporated into this Award Notice, including, but not limited to, Sections XV(l) (“Section 409A of the Code”) and XV(j) (“Clawback”) thereof.  In the event of a discrepancy between this Award Notice and the Plan, the Plan shall govern.

 

15.                               Adjustment.  This Award shall be subject to adjustment as provided in Paragraph XIII of the Plan.

 

16.                               Modifications.  The Company may, without your consent, make any change to this Award Notice that is not adverse to your rights under this Award Notice or the Plan.

 

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17.                               Non-Solicitation/Confidentiality Agreement.  The greatest assets of the Company and its Affiliates (“Exterran” in this Section 17) are its employees, directors, customers, and confidential information.  In recognition of the increased risk of unfairly losing any of these assets, Exterran has adopted this Non-Solicitation/Confidentiality Agreement as set forth in this Section 17, the terms of which you accept and agree to by accepting the Award.

 

a.                                     In order to assist you with your employment-related duties, Exterran has provided and shall continue to provide you with access to confidential and proprietary operational information and other confidential information which is either information not known by actual or potential competitors and third parties or is proprietary information of Exterran (“Confidential Information”).  Such Confidential Information shall include, without limitation, information regarding Exterran’s customers and suppliers, employees, business operations, product lines, services, pricing and pricing formulae, machines and inventions, research, knowhow, manufacturing and fabrication techniques, engineering and product design specifications, financial information, business plans and strategies, information derived from reports and computer systems, work in progress, marketing and sales programs and strategies, cost data, methods of doing business, ideas, materials or information prepared or performed for, by or on behalf of Exterran.  You agree, during your service as an Employee and at all times thereafter, not to use, divulge, or furnish or to make accessible to any third party, company, or other entity or individual, without Exterran’s written consent, any Confidential Information of Exterran, except as required by your job-related duties to Exterran.

 

b.                                     You agree that whenever your service as an Employee of Exterran ends for any reason, (i) you shall return to Exterran all documents containing or referring to Exterran’s Confidential Information as may be in your possession and/or control, with no request being required; and (ii) you shall return all Exterran computer and computer-related equipment and software, and all Exterran property, files, records, documents, drawings, specifications, lists, equipment and other similar items relating to Exterran’s business coming into your possession and/or control during your employment, with no request being required.

 

c.                                      In connection with your acceptance of the Award under the Plan, and in exchange for the consideration provided hereunder, and in consideration of Exterran disclosing and providing access to Confidential Information, you agree that you will not, during your service as an Employee or other service provider of Exterran, and for one year thereafter, directly or indirectly, for any reason, for your own account or on behalf of or together with any other person, entity or organization (i) call on or otherwise solicit any natural person who is employed by Exterran in any capacity with the purpose or intent of attracting that person from the employ of Exterran, or (ii) divert or attempt to divert from Exterran any business relating to the provision of natural gas compression equipment and related services, oil and natural gas production and processing equipment and related services or water treatment equipment and related services without, in each case, the prior written consent of Exterran.

 

d.                                     You agree that (i) the terms of this Section 17 are reasonable and constitute an otherwise enforceable agreement to which the terms and provisions of this Section 17 are ancillary or a part of; (ii) the consideration provided by Exterran under this Section 17 is not illusory; (iii) the restrictions of this Section 17 are necessary and reasonable for the protection of the legitimate business interests and goodwill of Exterran; and (iv) the consideration given by Exterran under this Section 17, including without limitation, the provision by Exterran of Confidential Information to you, gives rise to Exterran’s interests in the covenants set forth in this Section 17.

 

e.                                      You and Exterran agree that it was both parties’ intention to enter into a valid and enforceable agreement.  You agree that if any covenant contained in this Section 17 is found by a court of competent jurisdiction to contain limitations as to time, geographic area, or scope of activity that are not reasonable and impose a greater restraint than is necessary to protect the goodwill or other business interests of Exterran, then the court shall reform the

 

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covenant to the extent necessary to cause the limitations contained in the covenant as to time, geographic area, and scope of activity to be restrained to be reasonable and to impose a restraint that is not greater than necessary to protect the goodwill and other business interests of Exterran.

 

f.                                       In the event that Exterran determines that you have breached or attempted or threatened to breach any term of this Section 17, in addition to any other remedies at law or in equity Exterran may have available to it, it is agreed that Exterran shall be entitled, upon application to any court of proper jurisdiction, to a temporary restraining order or preliminary injunction (without necessity of (i) proving irreparable harm, (ii) establishing that monetary damages are inadequate, or (iii) posting any bond with respect thereto) against you prohibiting such breach or attempted or threatened breach by proving only the existence of such breach or attempted or threatened breach.  You agree that the period during which the covenants contained in this Section 17 are in effect shall be computed by excluding from such computation any time during which you are in violation of any provision of this Section 17.

 

g.                                      You hereby acknowledge that the Award being granted to you under the Plan is an extraordinary item of compensation and is not part of, nor in lieu of, your ordinary wages for services you may render to Exterran.

 

h.                                     You understand that this agreement is independent of and does not affect the enforceability of any other restrictive covenants by which you have agreed to be bound in any other agreement with Exterran.

 

i.                                         Notwithstanding any other provision of this Award, the provisions of this Section 17 shall be governed, construed and enforced in accordance with the laws of the State of Texas, without giving effect to the conflict of law principles thereof.  Any action or proceeding seeking to enforce any provision of this Section 17 shall be brought only in the courts of the State of Texas or, if it has or can acquire jurisdiction, in the United States District Court for the Southern District of Texas, and the parties consent to the jurisdiction of such courts in any such action or proceeding and waive any objection to venue laid therein.

 

18.                              Additional Information.  If you require additional information concerning your Award, contact the Company’s Stock Plan Administrator at 281.836.7000 or at mystock@exterran.com.  You may also contact UBS at 713.654.4713.

 

19.                              Participant Acceptance.  If you agree with the terms and conditions of this Award, please indicate your acceptance in UBS One Source by selecting “Accept.”  To reject the Award, select “Reject.”   Please note that if you reject the Award or do not accept the Award within 90 days of the Grant Date, the Award will be forfeited.

 

6WCI Management Incentive Compensation Plan 2015

 Exhibit 10.24 

WCI Management Incentive Compensation Plan 2015 
  

	I.	Background 

 WCI Communities, Inc. (the “Company” or
“WCI”) has established a management incentive compensation plan as set forth below (the “MICP” or “Plan”) to incentivize certain key managers to focus on critical business plan objectives for the
period commencing January 1, 2015 through December 31, 2015. The Plan is a sub-plan established under the WCI Communities, Inc. Senior Executive Incentive Bonus Plan approved by the Board of Directors of the Company (the
“Board”) on June 14, 2013 and approved by the stockholders of the Company on July 9, 2013 (the “Senior Executive Bonus Plan”). 
  

	II.	MICP Structure 

 The MICP is split into two (2) components: a) Objective
(75%) (“Objective Component”) and b) Subjective (25%) (“Subjective Component”). In the Objective Component of the Plan, payment of incentive bonuses under the MICP is independently conditioned upon the
achievement of the following financial objective (“Financial Objective”): 2015 Pre-tax Income. The Financial Objective in this Objective Component will be measured independently and will be paid based on the respective grid in
Appendix A. If actual performance with respect to the Financial Objective is below Threshold as set forth on Appendix A, there will be no MICP bonus payout with respect to the Financial Objective. If actual performance with respect to the Financial
Objective exceeds Max as set forth on Appendix A, the MICP bonus payout with respect to the Financial Objective will be at Max MICP Payout as set forth on Appendix A. If actual performance is between any levels set forth on Appendix A, MICP
bonus payout with respect thereto will be determined by linear interpolation. 
 Impairments taken in the calendar year 2015 shall be
included in the Financial Objective calculation, but such calculation may be neutralized for impairments at the sole discretion of the Compensation Committee of the Board (the “Committee”) based upon facts and circumstances as it
deems appropriate. Exclusion of any other extraordinary items will be at the discretion of the Committee. 
 In the Subjective Component of
the Plan, payment of incentive bonuses under the MICP is independently conditioned upon the individual MICP Participant’s performance as determined and approved by both the Board and the Committee in their discretion. If actual performance with
respect to this Subjective Component is below Threshold as determined by the Board or Committee, there will be no MICP bonus payout with respect to the Subjective Component. If actual performance with respect to the Subjective Component exceeds Max
as determined by the Board and Committee, the MICP bonus payout with respect to the Subjective Component will be at Max MICP Payout as set forth on Appendix A. If actual performance is between any levels set forth on Appendix A, MICP bonus payout
with respect thereto will be determined by linear interpolation. 

  
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 The Financial Objective in the Objective Component and the Subjective Component will carry the
following weighting as it relates to payment under the MICP: 
  

					
	 •       Financial Objective
	  	 	75	% 
	 •       Subjective Component
	  	 	25	% 
	 Total:
	  	 	100	% 

  

	III.	Participation 

 The initial participants of the Plan will be 24 key managers of
the Company selected by the Company’s Chief Executive Officer (“CEO”) and approved by the Committee, but the number of participants in the MICP may vary as a result of new hires, terminations, or otherwise as provided in the
next paragraph below (the “MICP Participants”). Except with respect to replacement and new MICP Participants determined by the CEO as described below, the Target MICP bonus for each MICP Participant shall be determined by the CEO
and approved by the Committee. The combined threshold, target and maximum MICP bonuses for all of the MICP Participants will not exceed $1,550,000, $3,100,000, and $4,650,000, respectively, stated on an annualized basis. The list of the initial 24
MICP Participants and Target MICP bonuses has been approved by the Committee. 
 Provided that the combined threshold, target and maximum
MICP bonuses for all of the MICP Participants do not exceed the amounts set forth in the preceding sentence, the CEO will have the discretion and authority, without the approval of the Committee, to: (i) adjust or reallocate individual target
bonus amounts at any time up to a maximum of $25,000 per individual but only one time for each MICP Participant before finalizing the bonus payments, and (ii) replace or add MICP Participants in the normal course of business (i.e.,
resulting from a termination (with or without Cause (as defined below)), voluntary termination, new hire, promotion, or transfer, etc.). 
  

	IV.	MICP Vesting and Payment 

 As outlined below, Company management will provide the
Committee with a calculation supported by relevant backup information for the Financial Objective in the Objective Component, as well as a certification signed by the CEO and CFO as to the Company’s achievement under the Financial Objective
(the “MICP Documentation”). The presented MICP Documentation shall include any items of an unusual or nonrecurring nature which may affect the calculation of the Financial Objective. 

Management shall prepare and present to the Committee the MICP Documentation required for payment of the Financial Objective, no later than
February 28, 2016. Any bonuses with respect to the Financial Objective will be reviewed and approved by the Committee and payment made during calendar year 2016 no later than March 15, 2016. Without limiting the Company’s rights under
Section 5 of the Senior Executive Bonus Plan, the Company retains the right to recover any monies paid to MICP Participants under the Financial Objective to the extent that the subsequent audited financial statements demonstrate such monies as
not earned under the Plan. 

  
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 Management shall prepare and present to the Committee their recommendations on the Subjective
Component performance level achieved no later than February 28, 2016. Any bonuses with respect to the Subjective Component will be reviewed and approved by the Committee and payment made during calendar year 2016 no later than March 15,
2016. The Committee shall make final determinations with respect to all bonus payments under the Subjective Component. Dollars earned under this Subjective Component may be moved between participants at the sole discretion of the Committee and are
not subject to any individual caps. 
 In the event that prior to December 31, 2015 an MICP Participant dies, then the MICP bonus shall
vest for such MICP Participant and shall be prorated based upon such MICP Participant’s number of completed full calendar months of active employment by the Company during calendar year 2015 through the date of his or her death and shall be
paid at the same time that MICP bonuses are otherwise paid to MICP Participants under the MICP. 
 In the event that prior to
December 31, 2015 the Company terminates the employment of an MICP Participant following such MICP Participant’s permanent disability (as defined below), then the MICP bonus shall vest for such MICP Participant and shall be prorated based
upon such MICP Participant’s number of completed full calendar months of active employment by the Company during calendar year 2015 through the date of such termination and shall be paid at the same time that MICP bonuses are otherwise paid to
MICP Participants under the MICP. For purposes of the MICP, the determination of “permanent disability” shall be made by the Committee. 

In the event that on or prior to December 31, 2015 the employment of an MICP Participant is terminated by the Company with or without
Cause, or an MICP Participant voluntarily terminates his or her employment, and neither of the two immediately preceding paragraphs applies, bonus eligibility under the MICP for said MICP Participant shall be forfeited. 

For clarification purposes, in the event an MICP bonus award for an MICP Participant vests on December 31, 2015, and subsequent to that
date (but prior to the pay-out date for such bonus award), such MICP Participant’s employment with the Company terminates for any reason other than (a) for Cause or (b) voluntary resignation, then in such event the MICP Participant
shall be entitled to receive such bonus, and shall be paid such bonus at the same time that bonuses are otherwise paid under the MICP in accordance with the Plan, and if such termination is by the Company for Cause or due to voluntary resignation,
such bonus award will be forfeited. 
 If, at any time on or before December 31, 2015, a “change in control event” (as
defined below) occurs with respect to the Company AND as a result of such change in control event (a) the employment of an MICP Participant is terminated by the Company without Cause, OR (b) an MICP Participant is
“demoted” (as defined below) and such MICP Participant thereafter terminates his or her employment with the Company (a “CIC Termination Event”), then such MICP Participant’s MICP bonus shall immediately vest as of the
date of such CIC Termination Event, and shall be paid within 30 days after the date of such CIC Termination Event at the greater of the: (i) the full 12 month Target bonus per Appendix A for the Financial Objective, or (ii) the full 12
month bonus that would be payable based upon the actual results through the date of the CIC Termination Event. For purposes of the MICP, an MICP Participant shall be deemed to have been “demoted” if prior to December 31, 2015
(a) the MICP Participant’s base salary is reduced 

  
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(excluding any such reduction that affects all WCI employees generally), or (b) there has been a material change in the MICP Participant’s title, duties or responsibilities. For
purposes of the MICP, a “change in control event” shall have the same meaning as used in Treasury Regulation Section 1.409A-3(i)(5), except that the reference to a change in effective control of a company which occurs when a person or
group acquires (during a 12 month period) “30%” or more of the total voting power of a company’s stock, shall be changed to “50%” or more of the total voting power of the Company’s stock. A termination of
employment shall not be deemed to have occurred for purposes of this paragraph unless such termination is a “separation of service” within the meaning of Section 409A of the Code. 

Notwithstanding anything to the contrary in the MICP, if an MICP Participant is party to an effective employment agreement with the Company,
and there is a conflict between the terms of the MICP and such employment agreement, the terms and provisions of such employment agreement shall control. 
  

	V.	MICP Ratification & Approval; Administration 

 The Committee will have
the responsibility for administering, operating and interpreting the Plan in accordance with its terms and conditions. The Committee will have all powers necessary or appropriate to administer and operate the Plan. The Committee will have full
discretionary authority in all matters related to the discharge of its responsibilities, and the exercise of its authorities and powers, under the Plan. All interpretations, constructions, determinations, decisions and actions of the Committee in
relation to the Plan will be final, binding and conclusive on all MICP Participants and all other persons. Subject to its obligations under the Committee Charter, the Committee may delegate all or any part of its responsibilities and powers under
this Article V to any person or persons selected by it. 
  

	VI.	Miscellaneous 

 A. The adoption and maintenance of the Plan shall not be deemed to
be a contract of employment or service between the Company or any of its affiliates and any MICP Participant. Nothing in the Plan and no amount payable under the Plan will give any MICP Participant a right to continue to be an employee of the
Company or any of its affiliates or in any other way affect the right of the Company or any of its affiliates to terminate the employment of any MICP Participant at any time, for any reason or no reason, with or without Cause or notice. No MICP
Participant or other person shall have any rights or claims in relation to the Plan except in accordance with the provisions of the Plan. 

B. To the extent that any person acquires a right to receive payments from the Company under the Plan, such right shall be no greater than the
right of an unsecured general creditor of the Company. The Plan is “unfunded” and all payments provided for under the Plan shall be paid in cash from the general funds of the Company. No MICP Participant shall have any interest in any
specific asset of the Company as a result of the Plan. Nothing contained in the Plan and no action taken pursuant to the provisions of the Plan shall create or be construed to create a trust of any kind, or a fiduciary relationship among the
Company, the Committee, the CEO and any MICP Participant or any other person. 

  
 4 

 C. Any liability of the Company to any employee of the Company in relation to the Plan shall be
based solely upon contractual obligations created by the Plan. None of the Company, the Committee, the CEO or any other person participating in any determination of any question under the Plan, or in the interpretation, administration or application
of the Plan, shall have any liability to any party for any action taken or not taken in connection with the Plan, except as may expressly be provided by statute. None of the Company, the Committee or any such other person shall be liable to any MICP
Participant or any other person as to any tax consequence expected, but not realized, by any such MICP Participant or other person in relation to participation in the Plan. 

D. No amount payable at any time under the Plan shall be subject in any manner to alienation, sale, transfer, assignment, pledge, attachment,
or encumbrance of any kind. 
 E. Any payment or other distribution under the Plan may be reduced by any amount (including employment taxes)
required to be withheld by the Company or any of its affiliates with respect thereto under any applicable law, rule, regulation, order or other requirement of any governmental authority, and the Company and its affiliates may cause to be made, as a
condition precedent to any payment under the Plan, appropriate arrangements with any MICP Participant for the satisfaction of any such taxes. In addition, the Company and its affiliates shall have full authority to withhold any taxes (including
employment taxes) applicable to amounts payable hereunder from other compensation owing to any such MICP Participant other than pursuant to the Plan, to the extent permitted by applicable law. 

F. The Plan and all rights hereunder shall be governed by and construed and interpreted according to the laws of the State of Delaware,
excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law of another jurisdiction. 

G. The Committee, at any time and with or without prior notice, may amend, suspend or terminate the Plan, and each such amendment, suspension
or termination shall be binding upon the Company, all MICP Participants and all other persons, provided, however, that no amendment, suspension or termination of the Plan shall materially and adversely affect the rights of any MICP Participant
without such MICP Participant’s prior written consent, except such an amendment made to cause the Plan to comply with applicable law, tax rules or accounting rules. 

H. The Company intends that bonus payments provided for in the Plan either be exempt from Section 409A of the Code or be provided in a
manner that complies with the provisions of Section 409A of the Code and the Plan shall be interpreted and construed in a manner consistent with such intent. Notwithstanding any provision of the Plan to the contrary, in the event that following
the date of adoption of the Plan the Company determines that any provision of the Plan could otherwise cause any person to be subject to the penalty taxes imposed under Section 409A of the Code, the Company may adopt such amendments to the Plan
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 comply with the requirements of Section 409A
of the Code and related Department of Treasury guidance and thereby avoid the application of any penalty taxes under Section 409A of the Code. Notwithstanding anything herein to the contrary, in no event shall any liability for failure to
comply with the requirements of Section 409A of the Code be transferred from an MICP 

  
 5 

 
Participant or any other person to the Company or any of its affiliates, employees or agents pursuant to the terms of the Plan or otherwise. 

I. This Plan shall be administered consistent with the provisions of the Senior Executive Bonus Plan and in the event of any conflict between
the terms of this Plan and the terms of the Senior Executive Bonus Plan, the terms of the Senior Executive Bonus Plan shall control. For the avoidance of doubt, the bonus awards paid under this Plan constitute bonuses payable pursuant to the last
sentence of Section 4(b) of the Senior Executive Bonus Plan. Nothing in this Plan shall be deemed to constitute a “material modification” (within the meaning of Treasury Regulation Section 1.162-27(h)(1)(iii)) of the Senior
Executive Bonus Plan and this Plan shall be interpreted accordingly. 
 J. For purposes of this Plan, “Cause”
(i) shall have meaning given to such term in any employment agreement with the Company to which the MICP Participant is a party (a “Cause Agreement”); or (ii) in the absence of an applicable Cause Agreement, shall mean that the
MICP Participant: (1) has committed any felony or any other act involving fraud, theft, misappropriation, dishonesty, or embezzlement; (2) has committed intentional acts that materially impair the goodwill or business of the Company or
cause material damage to its property, goodwill, or business; (3) has refused to, or willfully failed to, perform his or her material duties, which refusal or failure continues for a period of fourteen (14) days following notice thereof by
the Company to the MICP Participant; or (4) has violated any written Company policies or procedures, which violation is not cured, to the extent susceptible to cure, within fourteen (14) days after the Company has given written notice to
the MICP Participant describing such violation. For purposes of clause (ii) above, any voluntary termination by the MICP Participant in anticipation of a termination by the Company for Cause shall be deemed a termination by the Company for
Cause. 

  
 6 

 Appendix A 

2015 MICP Payout Grid 

WCI Communities 
 The 2015 MICP Plan is
split 75/25 in two components; Objective and Subjective 
 The 75% Objective Component will have the following Objective: 2015 Pre-tax Income

 The 25% Subjective Component will be based on an individual’s performance to the organization at the discretion of the Board. 

 

																	
	 Description
	  	Weight	 	 	Max	 	  	Target	 	  	Threshold	 
	 Objective
	  				 				  				  			
	 1) Pre-tax Income
	  	 	75	% 	 	$	3,487,500	  	  	$	2,325,000	  	  	$	1,162,500	  
					
	 Subjective
	  				 				  				  			
	 2) Individual Contribution
	  	 	25	% 	 	$	1,162,500	  	  	 	775,000	  	  	$	387,500	  
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total
	  	 	100	% 	 	$	4,650,000	  	  	$	3,100,000	  	  	$	1,550,000	  
		  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 1) Pre-tax Income 
  

					
	 	  	2015	 
	 2015 Pre-tax Income Plan
	  	$	43,846,000	  

  

													
	 	  	Pre-tax Income %
Achieved	 	Pre-tax Income $
Achieved	 	  	MICP
Payout %	 	MICP
Payout $	 
	 Max
	  	120.0%	 	$	52,615,200	  	  	150.0%	 	$	3,487,500	  
		  	115.0%	 	$	50,422,900	  	  	137.5%	 	$	3,196,875	  
		  	110.0%	 	$	48,230,600	  	  	125.0%	 	$	2,906,250	  
		  	105.0%	 	$	46,038,300	  	  	112.5%	 	$	2,615,625	  
	 Target MICP
	  	100.0%	 	$	43,846,000	  	  	100.0%	 	$	2,325,000	  
		  	95.0%	 	$	41,653,700	  	  	87.5%	 	$	2,034,375	  
		  	90.0%	 	$	39,461,400	  	  	75.0%	 	$	1,743,750	  
		  	85.0%	 	$	37,269,100	  	  	62.5%	 	$	1,453,125	  
	 Threshold
	  	80.0%	 	$	35,076,800	  	  	50.0%	 	$	1,162,500

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