Document:

EXECUTIVE EMPLOYMENT AGREEMENT

 

EXECUTIVE EMPLOYMENT AGREEMENT (this
"Agreement"), dated below and effective as of the 12th day of February, 2018 (“Effective
Date”), by and between Drone Guarder Inc. a Corporation organized and existing under the laws of Nevada, (the "Company"),
with a registered address at 1700 Montgomery Street, Suite 101, San Francisco, CA 94111 and Johanne Margot Elizabeth Ellis (hereinafter
referred to as "Executive"), whose address is 3 Polecat Cottages Huish Lane Tunworth Basingstoke Hampshire
RG25 2LA UK. Company and Executive may be referred to collectively as “Parties” and individually as “Party”.

 

W I T N E S S E T H:

 

WHEREAS, the Company
desires to employ Executive as Chief Operating Officer upon the terms and conditions set forth below and Executive desires to accept
employment upon such terms and conditions; and

 

WHEREAS, the Company
and Executive desire to set forth in writing the terms and conditions of their agreements and understandings with respect to Executive's
employment by the Company.

 

NOW, THEREFORE,
in consideration of the promises and the mutual covenants and agreements contained herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally bound, hereby agree as
follows:

 

1.       EMPLOYMENT.
  The Company hereby employs Executive and Executive hereby accepts employment by the Company, upon all the terms and conditions
set forth in this Agreement for the position of Chief Operating Officer.

 

2.       TERM.
  Subject to the provisions for earlier termination set forth in Section 9 hereof, this Agreement shall commence on the Effective
Date hereof and shall continue until the close of business on the day immediately preceding the 1st anniversary of the
Effective Date hereof (the "Initial Term").  Thereafter, the Company shall have the right to renew
this Agreement for successive one year periods (each a "Year Renewal Period").  The Company shall,
if the Company desires not to renew this Agreement for any Year Renewal Period, give Executive written notice to that effect at
least ninety (90) days prior to the end of the Initial Term or the Year Renewal Period then in effect (as the case may be). 
The period during which this Agreement shall be in effect as provided herein is referred to herein as the "Employment
Term".

 

3.       EXECUTIVE'S
REPRESENTATIONS AND WARRANTIES.  Executive represents and warrants to the Company that she is free to accept employment
with the Company as contemplated herein and has no medical reasons, other written or oral obligations or commitments of any kind
or nature which would in any way interfere with her acceptance of employment pursuant to the terms hereof or the full performance
of her obligations hereunder or the exercise of her best efforts in her employment hereunder or which would otherwise pose any
conflict of interest. 

 

    	 	1	 

     

    

 

4.       DUTIES
AND EXTENT OF SERVICES.

 

A.  Duties and
Extent of Service. During the Employment Term, Executive shall serve as the Chief Operating Officer (“COO”),
subject to the terms and conditions of this Agreement. The Executive shall report to and be directly responsible to the Board.
The Executive shall perform, observe and conform to such duties and instructions as from time to time are reasonably assigned or
communicated to her by the Board and which are reasonably consistent with the employment and status of the Executive as the COO
of the Company, and shall make such reports to the Board as may be necessary to fully and properly inform it of the matters of
business of the Company for which the Executive is responsible as well as such additional reports as the Board may from time to
time reasonably request. 

 

B. Executive agrees to devote sufficient time,
skill, attention and energy diligently and competently to perform the duties and responsibilities assigned to her hereunder or
pursuant hereto.  Executive shall be loyal and faithful at all times and constantly endeavor to improve her ability and her
knowledge of the business of the Company in an effort to increase the value of her services for the mutual benefit of the Company
and Executive.   

 

Notwithstanding the above, the Executive may:
(i) serve, with or without compensation, on the boards of such companies or corporations, or on such industry associations or on
such government or other public boards or committees (domestic or international) as the Executive may determine, subject to the
prior written approval of the Board, such approval not to be unreasonably withheld, provided that the objectives of such boards
or committees are not, in the opinion of the Board, similar to the interests of the Company and may devote such reasonable amount
of her time (including time during business hours) to the affairs of such boards or committees as the Executive, in consultation
with the Board, may determine. 

 

C.       Rules
and Regulations.  Executive agrees to abide by the lawful rules and regulations of the Company promulgated by the Company
from time to time with respect and applicable to the Company's employees generally, which are all hereby incorporated by reference
and made a part of this Agreement.

      
                 

D.    Location.  Executive
will operate from her home office, or as deemed beneficial for the Company, the Company and Executive may mutually agree to a relocation
of the office space. 

 

5.COMPENSATION.Subject
to the provisions of Section 9 of this Agreement, during the Employment Term for all services rendered under this Agreement, the
Executive shall receive a base Salary according to the provisions of this Section 5. Pursuant to the mutual agreement of the Parties,
Executive’s compensation shall be as follows:

 

		·	$36,000 (Thirty Six Thousand
Dollars) per year payable in cash on a monthly basis of Three Thousand Dollars Per Month paid by electronic transfer into a designated
bank account of Executive on the 1st business day of each month commencing 1ST March, 2018, with February
2018 prorated.

 

    	 	2	 

     

    

 

		·	FRINGE BENEFITS
AND EXPENSES.

 

A.       Executive
Benefits.  Executive shall be entitled to future benefits or fringe benefits made available by the Company from time to
time to all of its other executives generally, including health and medical insurance paid by the Company but only if approved
by the Board after sufficient funds are available or cash flow from the operation of the Company. 

 

B.       Expenses. 
The Company shall reimburse Executive for her normal and reasonable out-of-pocket costs and expenses in connection with the performance
of her duties and responsibilities hereunder, subject to the submission of appropriate vouchers and receipts in accordance with
the Company's policy from time to time in effect, including sufficient detail to entitle the Company to an income tax deduction
for such paid items, if such items are so deductible.  Company shall create an Employee Expense Statement Form that every
employee will utilize to regularly report his/her out-of-pocket business expenses, which will be approved and reimbursed within
five business days of submittal of the Employee Expense Statement.  Such expenses shall include, but not be limited to: 
business class airfare (first class if no business class is available), appropriate hotel accommodation, travel meals and bona
fide business expenses and entertainment as allowed by applicable law.  Should extended stays be required in other Company
locations, the Company shall reimburse Executive for extended temporary living expenses. 

 

From time-to time the Executive may request
an advance against anticipated expenses for any forthcoming business trip or other expensable event.  The Company shall provide
the advance per electronic transfer of funds to a bank of the Executive’s choice.

 

7.       VACATIONS. 
Executive shall be entitled to a total of four weeks (20 scheduled work days) of vacation during each full year of the Employment
Term beginning with the Effective Date of this Agreement.  The periods during which Executive will be able to use vacation
time shall be at the mutual agreement of the Company and Executive. Vacation time, by mutual agreement, may be taken at any time
during each year of the Employment Term.  

 

8.       FACILITIES. 
The Company shall provide and maintain (or cause to be provided and maintained) such facilities, equipment, supplies and personnel
as it deems reasonably necessary for Executive's performance of her duties and responsibilities under this Agreement.  Facilities
shall include but not be limited to office expenses, space, telephone (fixed and mobile phone service), fax at both home (if necessary)
and office, and computer equipment for Executive and professional staff as deemed appropriate by Executive.

 

    	 	3	 

     

    

 

9.       TERMINATION
OF EMPLOYMENT.

 

A.       Termination
Events.  Notwithstanding any provisions of this Agreement to the contrary, this Agreement may be terminated only as follows: 
(i) by the Company with or without “Cause” (as hereinafter defined), effective upon the delivery of written notice
to Executive; (ii) upon Executive's death; (iii) upon Executive becoming “Disabled” (as hereinafter defined) and receiving
written notice of termination from the Company to that effect; (iv) Executive's voluntary termination of employment with “Good
Reason” (as hereinafter defined); (v) Executive's voluntary termination of employment for other than “Good Reason”
(as hereinafter defined); (vi) the non-renewal of this Agreement by the Company at the end of the Initial Term or any Year Renewal
Term; or (vii) the refusal of Executive to accept employment for a Year Renewal Term after the Company has elected or is deemed
to have elected to have renewed this Agreement.

 

B.       Definition
of Cause and Disabled.  For purposes of this Agreement, "Cause" shall mean and include: (i) a
willful or reckless failure to perform her duties as set forth in Section 4 herein, (ii) a willful commission of an illegal act
for which the Company is directly and adversely affected, (iii) any act of dishonesty by the Executive bearing directly upon the
Company, (iv) a conviction of the Executive for a felony or any other crime involving moral turpitude and (v) Executive's willful
and repeated failure to fully perform his or her duties and responsibilities as directed by the Board in its reasonable discretion;
provided, however, that Executive shall be entitled to receive written notice from the Company setting forth in reasonable detail
his or her willful and repeated failure to perform such duties and shall have the right until 30 days after the date of such notice
is received to cure any such act of willful misconduct or gross negligence.  

 

Executive shall be deemed "Disabled"
if Executive is unable, due to mental, emotional or physical injury or illness, to perform substantially the essential functions
of her position, with or without a reasonable accommodation, for a period of 60 consecutive scheduled work days or a total of 90
scheduled work days within any period of 365 days.  The initial determination as to whether Executive is Disabled shall be
made by the physician regularly treating the condition causing the disability or incapacity.  The Company shall have the right
at its sole cost and expense to require Executive to be examined by another physician qualified to diagnose and treat Executive’s
Disability who is duly licensed to practice medicine in the jurisdiction of Executive’s residence to determine such qualified
physician's opinion as to Executive's Disability.  If such qualified physician's opinion differs from that of the physician
treating Executive, both of such physicians shall forthwith jointly select a third qualified physician so licensed whose opinion,
after examination and review of available information, shall be conclusive and binding upon all Parties hereto.  Termination
of this Agreement for Disability will be effective on the date the Company gives notice of termination by reason of Disability
to Executive.

 

    	 	4	 

     

    

 

C.       Effect
of Termination for Cause or Executive's Voluntary Termination of Employment for Other than Good Reason.  In the event
that this Agreement is terminated by the Company for Cause, or in the event that Executive voluntarily terminates her employment,
including a refusal to accept employment for a Year Renewal Period after the Company has elected or is deemed to have elected to
renew this Agreement (other than a voluntary termination for Good Reason), the Company shall pay to Executive, within thirty (30)
days following the date of such termination, Salary accrued and unpaid through the date of such termination and any accrued and
unpaid vacation pay (less vacation already taken) to which Executive may then be entitled through such date, as provided in Section
7 hereof.  Executive shall not be entitled to any other compensation, remuneration or other sums provided for in this Agreement
or to which Executive might otherwise be entitled hereunder or at law or in equity.  For avoidance of doubt, the share bonus
described in Section 5B shall not be payable.  In the event that Executive desires to voluntarily terminate her employment,
Executive shall provide the Company with written notice to such effect three (3) months prior to the date of such voluntary termination. 

 

Executive shall be entitled to terminate this
Agreement for "Good Reason".  For purposes of this Agreement, “Good Reason” means (i)
a material breach by Company of this Agreement, (ii) a significant reduction in the nature or scope of Executive’s duties
and responsibilities, (iii) the assignment to Executive of duties and responsibilities that are materially inconsistent with her
position, (iv) a requirement by the Company’s Board  that Executive take any action or inaction which would violate
applicable law, (v) any requirement that Executive relocate to an unacceptable working site or (vi) Executive is not offered a
position with comparable duties, pay and benefits following a Change of Control as defined in Section 11 of this Agreement. Prior
to Executive’s termination for Good Reason, Executive must give written notice to Company of the reason for her termination
and the reason must remain uncorrected for 30 days following such written notice. Relocation benefits to return to her home base
as described in Section 6.B. above will remain in effect.

 

D.       Resignation. 
In the event of the termination of Executive's services hereunder for any reason (other than by death), Executive agrees that he
shall deliver her written resignation as an officer and/or director of the Company (and its affiliates, including the Company)
to the Board of Directors of the Company, such resignation to become effective immediately. 

 

    	 	5	 

     

    

 

10.       CONFIDENTIALITY: 
ASSIGNMENT OF INVENTIONS.  

 

A.       Executive
agrees that in performing her normal duties with the Company and by virtue of the relationship of trust and confidence between
the Executive and the Company, he possesses and will possess certain knowledge of operations and other confidential information
of the Company which are of a special and unique nature and value to the Company.  The Executive agrees that during engagement
under this Agreement and for one (1) year after termination of such engagement, the Executive will not, without express written
consent of the Company, divulge or use Confidential business information or trade secrets obtained by the Executive in the course
of engagement with the Company, directly or indirectly, for the Executive’s own benefit or for the benefit of any other person,
firm, business, corporation, or entity, except in accordance with this Agreement or with the written permission of the Company.

 

Executive may retain one file copy of any and
all Confidential business information he has received for her records in accordance with normal and customary business practices.

 

B.       The
Executive agrees that all inventions, innovations or improvements in the Company's products or methods of conducting its business
(including new contributions, improvements, ideas and discoveries, whether patentable or not) conceived or made by her during the
employment period, belong to the Company.  The Executive agrees to promptly disclose such inventions, innovations or improvements
to the Company and take all actions reasonably requested by the Company to establish and confirm such ownership

 

11.       CHANGE
OF CONTROL.  For the purposes of this agreement, “Change of Control” shall mean the first to occur
of any of the following events while the Executive is employed by the Company: 

 

(i) any merger, consolidation, or
reorganization in which Company is not the surviving entity (or survives only as a subsidiary of an entity), 

 

(ii) after one year's operation, any
sale, lease, exchange, or other transfer of (or agreement to sell, lease, exchange, or otherwise transfer) all or substantially
all of the assets of Company to any other person or entity (in one transaction or a series of related transactions), 

 

(iii) dissolution or liquidation of
Company, 

 

(iv) a new individual or party, or
group of individuals or parties acting jointly or in concert coming to own of record or beneficially, or coming to control or exercise
direction over, for the first time, 50% or more of the then issued and outstanding voting shares of Company, or 

 

(v) as a result of or in connection
with a contested election of directors, the persons who were directors of Company before such election cease to constitute a majority
of the Board; provided, however, that the term Change of Control shall not include any reorganization, merger, consolidation, sale,
lease, exchange, or similar transaction involving solely Company and one or more previously wholly-owned subsidiaries of Company.

 

A.       In
the event of a Change of Control of Company during the term of this Agreement the Executive may treat this Agreement as terminated
by Company without cause as described in Section 9.

 

    	 	6	 

     

    

 

For purposes of this Agreement takeover of
control shall be evidenced by the acquisition any person, or by any person and its associates, and whether directly or indirectly,
of common shares of the Company that, when added to all other common shares of Company at the time held by such person and its
affiliates, totals for the first time more than 50% of the outstanding common shares of Company.

 

14.       APPLICABLE
LAW.  This Agreement shall be governed by and construed pursuant to the laws of the State of Nevada, without giving
effect to conflicts of laws principles. 

 

15.FORCE MAJEURE. 
The obligations of each Party under this Agreement shall be excused or suspended while such Party is prevented or hindered from
complying therewith, in whole or in part, by Force Majeure (being an unavoidable and unforeseeable event outside of the reasonable
control of the Parties hereto and not inclusive of the death or incapacity of the Executive). In the event Force Majeure causes
a suspension of the obligations of any Party as aforesaid, such Party shall give notice thereof as soon as reasonably possible
to the other Party stating the date and extent of such suspension, whether in whole or in part, and the nature of the Force Majeure.
Any Party whose obligations have been suspended as aforesaid shall take all reasonable steps to remove the Force Majeure situation
and shall resume the performances of such obligations as soon as reasonably possible after the removal of the Force Majeure and
shall so notify the other Party.

 

17.       NOTICES. 
Any notices required or permitted to be given pursuant to this Agreement shall be sufficient, if in writing and sent by certified
or registered mail, return receipt requested, to her residence, in the case of Executive, and in the case of the Company to address
set forth on the first page hereof.

 

18.       ASSIGNMENT.
  This Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective legal representatives,
heirs, assignees and/or successors in interest of any kind whatsoever; provided, however, that Executive acknowledges
and agrees that he cannot assign or delegate any of her rights, duties, responsibilities or obligations hereunder to any other
person or entity except as required for good governance during periods of vacation or other leaves of absence as agreed by the
Board.  In such cases, a Power-of-Attorney shall be issued making such authorization.  The Company may assign its rights
under this Agreement to any affiliate of the Company or to any entity upon any sale of all or substantially all of the Company's
assets, or upon any merger or consolidation of the Company with or into any other entity. Such assignment may constitute a Change
of Control as defined in Section 11 of this Agreement.

 

    	 	7	 

     

    

 

19.       SEVERABILITY. 
If any provision of this Agreement shall be held to be invalid or unenforceable, and is not reformed by a court of competent jurisdiction,
such invalidity or unenforceability shall attach only to such provision and shall not in any way affect or render invalid or unenforceable
any other provision of this Agreement, and this Agreement shall be carried out as if such invalid or unenforceable provision were
not contained herein.  

 

20.       NO
WAIVER.  A waiver of any breach or violation of any term, provision or covenant contained herein shall not be deemed
a continuing waiver or a waiver of any future or past breach or violation.  No oral waiver shall be binding.

 

21.       ARBITRATION. 
Except as provided in Section 14 hereof, any dispute, claim arising out of any matter involving this Agreement shall be submitted
to binding and non-appealable arbitration in accordance with the rules of the American Arbitration Association.  Any such
arbitration shall be held New York.  The arbitrator so selected must enforce the terms of this Agreement and must rule in
accordance with New York law.  Judgment upon any award rendered by the arbitrators may be entered in any court having jurisdiction. 
The prevailing Party in any such arbitration will be entitled to an award of its reasonable attorneys' fees and expenses in connection
with such arbitration and enforcement of any award or relief granted therein.

 

22.       COUNTERPARTS. 
This Agreement may be executed in counterparts, each of which shall be an original, but all of which together shall constitute
one and the same instrument and it shall not be necessary in making proof of this agreement to account for all such counterparts.

 

23.  MISCELLANEOUS. 
No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed in
writing and signed by the Executive and such officer or director as may be designated by the Board.  

 

IN WITNESS WHEREOF, the undersigned
have hereunto set their hands to this Agreement on the day and year first above written.

 

COMPANY

 

By: /s/ Adam Taylor

   

Name: Adam Taylor

   

Title: CEO   

 

Dated: 2/12/2018

 

EXECUTIVE                
                                     
               

 

By: /s/ Johanne Margot Elizabeth Ellis

 

Name:  Johanne Margot Elizabeth Ellis

 

Title: COO

 

Dated: 2/12/2018

 

    	 	8thrm-ex101_6.htm

 

EXHIBIT 10.1

Amended and Restated

Gentherm Incorporated
Performance Bonus Plan 

 

(Amended with effective date of January 1, 2018)

 

	
1. 
	
Purpose 

The purpose of this Gentherm Incorporated Performance Bonus Plan (the “Plan”) is to attract, motivate, reward and retain eligible employees by making a portion of their cash compensation dependent on (i) the performance of Gentherm Incorporated (the “Company”), and (ii) individual performance.   

 

	
2. 
	
Participants 

The individuals to whom incentive bonus payments may be made hereunder shall be the executive officers of the Company, as determined by the Company’s Board of Directors (the “Executive Officer Participants”), and such other key employees of the Company and subsidiaries of the Company as the Chief Executive Officer shall determine in his or her sole discretion (the “Other Participants” and, together with the Executive Officer Participants, the “Participants”).  Participants are categorized as either “Senior Level Participants” or “Standard Level Participants”.  All Executive Officer Participants are also Senior Level Participants.  The Other Participants shall either be Senior Level Participants or Standard Level Participants, as determined by the Chief Executive Officer in his or her sole discretion.

 

	
3. 
	
The Committee

(a)The Compensation Committee of the Board of Directors of the Company (the “Committee”) shall administer and interpret the Plan for the Executive Officer Participants.  With the oversight of the Committee, the Chief Executive Officer shall administer and interpret the Plan for the Other Participants; provided, however, that the Chief Executive Officer’s administration and interpretation shall not be in direct conflict with the actions taken by the Committee.  The Committee and the Chief Executive Officer, in the exercise of the foregoing powers, shall be referred to as the “Administrator.”

 

(b)     Subject to the express provisions and limitations of this Plan, applicable law and the listing standards of the Nasdaq Stock Market (or other national securities exchange, as applicable), the Administrator shall be authorized and empowered to do all things necessary or desirable, in its sole discretion, in connection with the administration of the Plan, including, without limitation, the following: 

 

	
 
	
(i) 
	
To prescribe, amend and rescind rules and regulations relating to the Plan and to define terms not otherwise defined herein, and to take or approve such further actions as it determines necessary or appropriate to the administration of the Plan, such as correcting a defect or supplying any omission, or reconciling any inconsistency so that the Plan or any award complies with applicable law, regulations and listing requirements and so as to avoid unanticipated consequences or address unanticipated events deemed by the Administrator to be inconsistent with the purposes of the Plan; 

    

	
 
	
(ii) 
	
To designate Participants, to establish performance goals, and to determine the incentive bonus payments, if any, to be made to such Participants; 

 

	
 
	
(iii) 
	
To prescribe and amend the terms of any agreements or other documents under the Plan; 

 

 

 

	
 
	
(iv)
	
To determine whether, and the extent to which, adjustments are required pursuant to Section 5 hereof; 

 

	
 
	
(v) 
	
To interpret and construe the Plan, any rules and regulations under the Plan, and the terms and conditions of any incentive bonus payment provided hereunder, and to make exceptions to any such provisions in good faith and for the benefit of the Company; and 

 

	
 
	
(vi) 
	
To make all other determinations deemed necessary or advisable for the administration of the Plan.   

  

(c)     All decisions, determinations and interpretations by the Administrator regarding the Plan and incentive bonus payments shall be final and binding on all Participants. The Administrator may consider such factors, as it deems relevant to making such decisions, determinations and interpretations including, without limitation, the recommendations or advice of any director, officer or employee of the Company and such attorneys, consultants and accountants as it may select. 

 

	
4.
	
Target Bonus and Earned Bonus

(a)Each Participant will have a target incentive bonus for each fiscal year during the term of this Plan stated as a percentage of his or her annual base salary (the “Target Bonus Percentage”).  Bonus payments under this Plan, if any, shall be paid based on performance measurements determined at the end of each year.  Bonuses are based on Company and individual performances for the entire year.  

As an example of the foregoing, if an individual with a salary of $100,000 has a 20% Target Bonus Percentage, such individual has a target bonus of $20,000.  Example computations of the bonus payments to such hypothetical individual (the “Example Participant”) are set forth further below.

(b)A Participant’s annual base salary as of the last business day of the applicable Performance Period (as defined herein), as reflected in the Company’s payroll records, shall be used to calculate the earned bonus for such Performance Period; provided, however, (i) for terminations under Sections 6(a)(i) or (iii) hereof prior to last business day of the Performance Period, the annual base salary in effect as of the date of termination shall be used and (ii) for a new hire under Section 7(a) hereof that is hired after the beginning of a Performance Period, the annual base salary in effect on the date of hire shall be used. The annual base salary used to calculate the earned bonus shall not be reduced for any contributions made to the Company’s 401(k) plan or other deferred compensation plans, and shall be exclusive of any awards under the Plan or any other bonus, incentive (including equity incentive) or special pay awards.  

(c) No incentive bonus payment shall be paid to a Participant unless he or she is an employee of the Company as of the payment date for the applicable Performance Period, except as permitted by Section 6 hereof. 

(d)Financial results for Company Performance Goals (as defined herein) must be finalized as appropriate by the Chief Financial Officer (or person having similar duties) and must be computed using financial results audited by an independent registered public accounting firm before earned bonuses can be calculated and paid.  Further, no incentive bonus payments will be made unless and until the Administrator approves payments in accordance with the Plan.  The incentive bonus payments hereunder shall be made in cash in the employee’s local currency (the same currency for which the employee receives his or her regular salary).

2

 

(e)Notwithstanding Section 4(d) hereof, Earned Bonuses (as defined herein) shall be paid in February or March of the year subsequent to the Performance Period, with the specific date of payment in such applicable periods determined by the Administrator.

 

	
5. 
	
Performance Measures and Earned Bonus 

(a)January 1 through December 31 of each calendar year is referred to herein as the “Performance Period”.

(b)A base bonus shall be determined for each Participant for each Performance Period based upon the achievement of the Company Performance Goals (defined below) for the applicable Performance Period (referred to as the “Base Bonus”).  The Base Bonus shall be modified by the Individual Performance Modifier as set forth below, and as so modified shall be referred to as the “Modified Bonus”.  The Modified Bonus may be further modified by the Administrator in its sole discretion, and as so further modified or not, shall be referred to as the “Earned Bonus”.

(c) Company Performance Goals.  

	
 
	
(i)
	
Unless other specific financial or non-financial measurements are established by the Committee, the Base Bonus shall be based upon the Company’s actual revenue and the Company’s actual earnings before interest, taxes, depreciation and amortization, deferred financing cost amortization, transaction expenses, debt retirement expenses, unrealized currency gain or loss, unrealized revaluation of derivatives and any other non-recurring adjustments that the Committee determines, in its discretion, should be excluded (“Adjusted EBITDA”) for the Performance Period measured against revenue and Adjusted EBITDA targets pre-established by the Committee (the “Company Performance Goals”).  If an unusual or extra-ordinary event significantly impacts the Company Performance Goals, the Committee has the discretion to adjust the Company Performance Goals as appropriate. The Committee shall determine, for each Performance Period, the relative weight of the revenue and Adjusted EBITDA targets (or other established targets) that comprise the Company Performance Goals.  For example, the Committee may determine that the Company Performance Goals for a particular Performance Period should be based 50% on achievement of revenue targets and 50% on achievement of EBITDA targets.  The Committee shall also determine, for each Performance Period, the “Threshold Company Performance”, which is the minimum Company financial achievement necessary before any bonus may be paid under the Plan.  The Threshold Company Performance for any particular Performance Period may be based solely on actual revenue, solely on actual Adjusted EBITDA, on a combination of both or on some other measurement.  

	
 
	
(ii)
	
The Base Bonus shall be calculated as 0% to 150% of the Target Bonus Percentage based on the achievement of each Company Performance Goal for the applicable Performance Period, as set forth in the table below.  There shall be a linear increase in the Base Bonus earned between such threshold, target and maximum amounts.  

3

 

	
 Company Performance Goal
	
  
	
Degree of 
Performance Achieved
	
  
	
Percent of Applied Target Bonus Percentage to Compute Base Bonus

	
Below Threshold Company Performance OR Below 85% of the Target
	
  
	
Below Threshold
	
  
	
    0%

	
85% of the Target
	
  
	
Threshold
	
  
	
  50%

	
100% of Target
	
  
	
Target
	
  
	
100%

	
120% or more of Target
	
  
	
Maximum
	
  
	
150%

 

As an example of the foregoing, if, during a Performance Period, the Threshold Company Performance was established as 85% of target Adjusted EBITDA, the Company achieved more than 85% of the target Adjusted EBITDA and the Company achieved 95% of the Company Performance Goals (taking into account the relative weight of the Company Performance Goals), then, with respect to the Example Participant, the Base Bonus would be 83.33% of the Target Bonus (determined based on a linear increase between the Threshold and the Target above), which is 16.66% (83.33% x 20%) of salary for the Performance Period or $16,666.

 

(c) Individual Performance Modifier.  The “Modified Bonus” shall be calculated as the Base Bonus multiplied by the Performance Modifier, as determined under either subsection (i) below, for Senior Level Participants or subsection (ii) below, for Standard Level Participants.  In no case, however, will the Modified Bonus exceed 200% of the Target Bonus.  If any computation under this Plan results in a Modified Bonus in excess of 200% of the Target Bonus, then the Modified Bonus will be deemed to be exactly equal to 200% of the Target Bonus.

 

	
 
	
(i)
	
Senior Level Participants.  The Performance Modifier for Senior Level Participants will be determined based on the achievement of individual goals for the Performance Period that may be objective and/or subjective as determined by the Administrator.  One or more individual goals will be established for each Senior Level Participant, with corresponding threshold, target and stretch performance measurement points.  Each goal will be weighted so that the total weight of all goals is 100%.  Achievement of the threshold performance for a particular goal, the lowest level of acceptable performance, will result in a 50% score for that goal; achievement of the target performance for a particular goal will result in a 100% score for that goal; and achievement of stretch performance for a particular goal, a superior level of performance above which no further increase in scoring is possible, will result in a 150% score for that goal.  There shall be a linear adjustment to each score if goal achievement is between threshold and target or between target and stretch measurement points.  The product of each goal’s weight multiplied by the score for such goal is that goal’s “Weighted Score”.  The sum of the Weighted Scores for all of a Participant’s goals results in that Participant’s Performance Modifier.  

 

Continuing the example from above, if, during a Performance Period, the Example Participant were a Senior Level Participant and had the following goals (which goals could be established in a wide variety of units, such as dollars, ratios, percentages, parts, units, time periods, incidents, etc.):

 

	
Goal #1
	
Threshold: 100
	
Target: 200
	
Stretch: 300
	
Weight: 30%

	
Goal #2
	
Threshold: 40%
	
Target: 50%
	
Stretch: 60%
	
Weight: 25%

	
Goal #3
	
Threshold: 0.5
	
Target: 1
	
Stretch: 1.75
	
Weight: 10%

	
Goal #4
	
Threshold: 30
	
Target: 60
	
Stretch: 120
	
Weight: 35%

 

And if the Example Participant’s actual results were as follows:

 

4

 

	
Goal #1:  190
	
Goal #2: 55%
	
Goal #3: 0.4
	
Goal #4: 130

 

Then the Example Participant’s Weighted Score by Goal would be as follows (these computations determine where on the linear threshold/target/stretch lines the actual results lie, and that score is adjusted by the applicable weight assigned to the goal):

 

Goal #1 = [90/100] * 50% + 50% = 95% * 30% weight = 28.5%

Goal #2 = [5/10] * 50% + 100% = 125% * 25% weight = 31.25%

Goal #3 = 0 (below threshold) * 10% weight = 0%

Goal #4 = 150% (above stretch) * 35% weight = 52.5%

Total = 112.25%

 

The Base Bonus would be multiplied by 112.25% for a blended percentage of 93.54% [83.33% x 112.25%] and the Modified Bonus would be $18,708, [93.54% x $20,000 Target Bonus], prior to any adjustments by the Administrator as permitted under the Plan.

 

	
 
	
(ii)
	
Standard Level Participants.    Individual performance ratings for Standard Level Participants shall be determined by the Administrator.  The Administrator reserves the right to apply subjective and discretionary criteria to determine the individual performance objectives and performance thereof.  The Performance Modifier for Standard Level Participants corresponding to the individual performance ratings for such Participants is as follows:

 

			
	

Individual Performance Ratings

	
Level
	
Level Number
	
Performance Modifier

	
Breakthrough Performer
	
6
	
135%

	
Outstanding
	
5
	
120%

	
Valued Contributor
	
4
	
110%

	
Performs to Expectations
	
3
	
100%

	
Room for Improvement
	
2
	
60%

	
Unacceptable
	
1
	
0%

 

Continuing the example from above, if, during a Performance Period, the Example Participant were instead a Standard Level Participant and received an individual performance rating of “4”, then the Base Bonus would be multiplied by 110% for a blended percentage of 92% [83.33% x 110%] and the Modified Bonus would be $18,400 [92% x $20,000 Target Bonus], prior to any adjustments by the Administrator as permitted under the Plan.

 

(d)Notwithstanding the attainment of financial results, all earned bonuses under the Plan are subject to reduction or elimination by the Administrator prior to payment.  For example, but not as a limitation of the foregoing general provision, a reduction in any and all earned bonuses may be made if earnings are achieved in ways that are considered not in the best interests of the Company’s shareholders or not authorized by the Board of Directors or management.  Furthermore, the Administrator also may adjust individual performance ratings and/or Performance Modifiers in order to ensure the Company’s aggregate payments under the Plan do not exceed the funding authorized under the Plan.

 

(e)The Earned Bonus, based on the Modified Bonus as adjusted by the Administrator as permitted under this Plan, shall be payable at the time set forth in Section 4(e).  

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6.
	
Termination of Employment; Change in Control.

 

(a)Death or Disability During the Performance Period.  

 

	
 
	
(i)
	
If a Participant’s employment is terminated due to death, the bonus will be earned and paid (to the estate of the Participant) on a pro rata basis.  The pro rata period will be from the beginning of the Performance Period until the date of death.  

 

	
 
	
(ii)
	
A Participant’s disability of 30 calendar days or less will not have an impact on the Participant’s eligibility to earn a bonus under the Plan.

 

	
 
	
(iii)
	
If a Participant’s disability lasts more than 30 calendar days, then a bonus may be earned only for fiscal quarters in which the Participant works more than 60 calendar days and will be earned on a pro rata basis for days worked in the applicable fiscal quarters.

 

(b)Voluntary Termination.  If a Participant’s employment is terminated due to a voluntary termination, excluding a retirement that meets the definition of retirement established by the Committee, no bonus will be earned by or paid to the Participant.  In the case of qualifying retirement, the Administrator shall have the discretion, but not the obligation, to pay a pro rata bonus to such Participant for the Performance Period during which the Participant retired in accordance with Section 7.

 

(c)Involuntary Termination.  If a Participant’s employment is terminated for cause (but excluding any other event otherwise described in this Section 6), no bonus will be earned by or paid to the Participant.  For purposes of the Plan, a termination for “cause” means a material failure to perform such employee’s duties and responsibilities to a satisfactory degree, any violation of laws or regulations or a material violation of Company policies and procedures.  If a Participant’s employment is terminated without cause, the Administrator shall have the discretion, but not the obligation, to approve a pro rata bonus for the applicable Participant for the Performance Period during which the Participant was terminated in accordance with Section 7.  

 

(d)Change in Control. If there is a Change in Control (as defined under the Company’s 2013 Equity Incentive Plan, as amended, or any successor equity incentive plan) and a Participant is terminated by the Company (or any successor thereof, by merger, acquisition or otherwise) within six months of such Change in Control for any reason other than for intentional acts of material misconduct or omission in carrying out the duties and responsibilities of such Participant’s position, such Participant shall earn a cash bonus equal to the Target Bonus Percentage for the applicable Performance Period in which the Change in Control occurred multiplied by the greater of his or her actual base salary in effect on the date of (i) the employment termination and (ii) the Change in Control.  Such payments shall be paid in cash to the Participant as soon as administratively possible, but not later than 30 days following such termination.

 (e)Section 409A.  Notwithstanding anything in this Plan to the contrary, if it is determined that any payment hereunder constitutes “nonqualified deferred compensation” that would be paid upon “separation from service” of a “specified employee” (as such terms are defined in Section 409A of the Internal Revenue Code of 1986, as amended), then such payment that otherwise would have been paid within six months after the Participant’s “separation from service” shall be accrued, without interest, and its payment delayed until the first day of the seventh month following the Participant’s “separation from service,” or if earlier, the Participant’s death, at which point the accrued amount will be paid as a single, lump sum cash payment.

6

 

(f) Timing of Payments.  Except as set forth in Sections (6)(d) and (e) hereof, earned bonuses under this Section 6 will be paid to Participants at the same time as bonuses are made to other Participants under the Plan for the applicable Performance Period.

 

	
7.
	
Pro Rata Bonuses.

 

(a)New Hires.  A new employee who becomes a Participant in connection with such hire shall earn a pro rata bonus from the date of hire, but only if the date of hire is on or before September 30 of the Performance Period.

 

(b)Transfer; Promotion; Demotion; Retirement; Involuntary Termination Without Cause.

 

	
 
	
(i)
	
For an existing employee who is transferred to a new position which results in such employee becoming a Participant, the pro rata period shall begin from the date of transfer. 

 

	
 
	
(ii)
	
For an existing employee who was a Participant prior to a promotion and who continues to be a Participant thereafter, and the Target Bonus Percentage is increased, the earned bonus will be based on two pro rata periods: (i) from the beginning of the Performance Period through the date immediately preceding such promotion, and (ii) from the date of such promotion until the end of the Performance Period.

 

	
 
	
(iii)
	
For an existing employee who was a Participant and who is demoted such that the employee is no longer a Participant thereafter, the pro rata period will end on the date immediately preceding such demotion.

 

	
 
	
(iv)
	
For an existing employee who retires and for whom a pro rata bonus is approved by the Administrator under Section 6(b), the pro rata period will end on the date immediately preceding such retirement.

 

	
 
	
(v)
	
For an existing employee who was a Participant and who is involuntary terminated without cause and for whom a pro rata bonus is approved by the Administrator under Section 6(c), the pro rata period will end on the date immediately preceding such termination.

 

(c)Achievement of Performance Period Company Performance Measures.  A pro rata bonus will be earned only if the applicable Company Performance Goals also are satisfied for the full Performance Period.     

 

(d)Timing of Pro Rata Payments.  Earned pro rata bonuses under this Section 7 will be paid to Participants at the same time as bonuses are made to other Participants under the Plan for the applicable Performance Period

 

	
8.
	
Bonus Clawback.  

 

If the Company’s financial statements are the subject of a restatement due to error or misconduct, to the extent permitted by governing law, the Company is authorized under this Plan to seek reimbursement of excess incentive bonus payments under the Plan to Executive Officer Participants for the relevant Performance Periods; provided, this Section 8 only shall apply to any bonuses earned for the three completed fiscal years prior to the date the Company determines such restatement is required. For purposes of this Plan, an excess incentive bonus payment means the positive difference, if any, between 

7

 

(i) the bonus paid to the Executive Officer Participant and (ii) the bonus that would have been made to the Executive Officer Participant had the performance been calculated based on the Company’s financial statements as restated. The Company will not be required to award any Participants an additional bonus should the restated financial statements result in a higher bonus. 

 

	
9. 
	
General

 

(a)Amendment and Termination. The Company reserves the right to amend or terminate this Plan at any time by action of the Board of Directors or the Committee with respect to future services of Participants.  To comply with local laws, the Company (acting through the Administrator) reserves the right to adopt amendments, rules, procedures, guidelines or other documents (collectively “Addendums”) affecting this Plan at any time that are applicable only to such local jurisdictions; provided, however, that any Addendums that are applicable to any Executive Officer Participants must be reflected in a written amendment to this Plan that is approved by the Committee. 

 

(b)Tax Withholding.  The Company shall have the right to make all payments or distributions pursuant to the Plan to any person, net of any applicable federal, state and local payroll or withholding taxes, or the applicable taxes of any foreign jurisdiction (collectively, “Taxes”), required to be paid or withheld. The Company shall have the right to withhold from wages or other amounts otherwise payable to such Participant such Taxes as may be required by law, or if permitted by law, to otherwise require the Participant to pay such Taxes. If such person shall fail to make such Tax payments as are required, the Company shall, to the extent permitted by law, have the right to deduct any such Taxes from any payment of any kind otherwise due to such Participant or to take such other action as may be necessary to satisfy such Tax obligations.

 

(c)No Assignment. Unless the Committee expressly provides otherwise in writing, no Participant nor any other person may sell, assign, convey, gift, pledge or otherwise hypothecate or alienate any bonus payment. 

 

(d)Non-Exclusivity. The adoption of the Plan by the Board of Directors shall not be construed as creating any limitations on the power of the Board of Directors or Administrator to adopt such other incentive arrangements as either may deem desirable, including, without limitation, cash or equity-based compensation arrangements, either tied to performance or otherwise, and any such other arrangements as may be either generally applicable or applicable only in specific cases. 

 

(e)Employment at Will. Neither the Plan, the selection of a person as a Participant, the payment of any bonus to any Participant, nor any action by the Company or the Administrator shall be held or construed to confer upon any person any right to be continued in the employ of the Company. The Company expressly reserves the right to discharge any Participant whenever in the sole discretion of the Company its interest may so require. 

 

(f)No Vested Interest or Right.  Except as specified under Section 6 hereof, at no time before the actual payment of a bonus to any Participant or other person shall any Participant or other person accrue any vested interest or right whatsoever under the Plan, and the Company has no obligation to treat Participants identically under the Plan.

 

(g)Beneficiary Designation.  Each Participant may name, from time to time, any beneficiary (who may be named contingently or successively) to whom any benefit under the Plan is to be paid in case of his or her death before he or she receives any or all of such benefit.  Each designation will revoke all prior designations by the same Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with the Company during his or her lifetime.  

8

 

 

(h)Headings.  Headings are given to the sections and subsections of the Plan solely as a convenience to facilitate reference.  Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof.

 

(i)Governing Law.  The Plan and any agreements and documents hereunder shall be governed, construed and administered in accordance with the laws of the State of Michigan (regardless of the laws that might otherwise govern under applicable principles of conflicts of laws of such jurisdiction or any other jurisdiction) and applicable federal law.   

 

(j)Code Section 409A. It is intended that this Plan be exempt from or comply with Code Section 409A, and the Plan shall be interpreted and administered consistent with that intent; provided, however, that under no circumstances whatsoever shall the Company be liable for any additional tax, interest or penalty imposed upon a Participant, or any other damage suffered by a Participant, on account of the bonus plan being subject to but not in compliance with Code Section 409A.  

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