Document:

exv10w11

Exhibit 10.11

EXECUTION VERSION

*** indicates material that has been omitted pursuant to a Request for Confidential Treatment
filed with the Securities and Exchange Commission. A complete copy of this agreement,
including the redacted portions so indicated, has been filed separately with the Securities and
Exchange Commission.

Feedstock Supply Agreement

(Columbus, Mississippi)

This Feedstock Supply Agreement (“Supply Agreement”), dated as of May 27, 2011 (“Supply Agreement
Effective Date”) is made by and between Catchlight Energy LLC, a Delaware limited liability company
(“CLE”), and KiOR Columbus, LLC, a Delaware limited liability company (“KiOR”).

     WHEREAS, KiOR has developed a proprietary technology (the “BCC Process”) for the conversion of
cellulosic biomass to bio-oil.

     WHEREAS, the Parties entered into that certain Letter of Intent dated July 13, 2010 describing
their intention to negotiate and enter into the following agreements related to the BCC Process,
each listed as a contemplated transaction in such Letter of Intent: (a) FCU Offtake Agreement, (b)
Biocrude Testing and Optimization Agreement (which has now become the Testing and Optimization
Agreement) (“Testing and Optimization Agreement”), (c) Feedstock Supply Agreement, (d) Subsequent
Offtake Agreement, and (e) CLE Plant Agreement. This Agreement is the Feedstock Supply Agreement
referenced in the Letter of Intent. In addition, the Parties intend to negotiate and enter into a
Re-Crude Testing Agreement (the “Re-Crude Testing Agreement”). This Agreement, the other
agreements listed as a contemplated transaction in the Letter of Intent and the Re-Crude Testing
Agreement, in each case after it is executed by the Parties, and that certain Master
Confidentiality Agreement between the Parties, dated as of April 12, 2011 (“Master Confidentiality
Agreement”), shall each be a “Related Agreement.”

     WHEREAS, KiOR is developing and constructing and shall own and operate a production facility,
the First Commercial Unit (“FCU”) located in Columbus, MS (the “KiOR Unit”).

     WHEREAS, KiOR desires to obtain a reliable supply of biomass as Feedstock for the KiOR Unit
and desires to purchase Feedstock from CLE on the terms and conditions set forth in this Supply
Agreement.

     WHEREAS, CLE desires to sell Feedstock to KiOR on the terms and conditions set forth in this
Supply Agreement.

     NOW, THEREFORE, in consideration of the foregoing and the mutual promises and covenants set
forth below, CLE and KiOR agree as follows:

	1.	 	Definitions.

	 	1.1	 	“Affiliate” has the meaning ascribed to it in Section 20.2.

	 	1.2	 	“Business Day” means a day, other than a Saturday or Sunday or holiday on which
banks are authorized or required to be closed for business in the State of New York.

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	 	1.3	 	“Delivered Volume” means the volume of Feedstock delivered to the Receiving
Facility that meets Specifications (or volume that fails to meet Specifications, but
with respect to which KiOR has waived such failure), measured in GST at the scales of
the Receiving Facility.

	 	1.4	 	“Delivery Plan” means a schedule for the volume and type of Feedstock to be
delivered during the Supply Term as further described in Section 4.1.

	 	1.5	 	“Delivery Start Date” shall mean the date on which deliveries of Feedstock
under this Supply Agreement will commence, to be set upon six (6) months advance
written notification by KiOR to CLE.

	 	1.6	 	“FCU” has the meaning ascribed to it in the Preamble.

	 	1.7	 	“Feedstock” means, for this Supply Agreement, biomass within the categories of
feedstock set forth in Section 5.1.

	 	1.8	 	“Feedstock Operational Differential” means an added cost to a delivered
benchmark price to reflect a cost not covered in the F2M Benchmark Area Price.

	 	1.9	 	“F2M” means Forest to Market, an independent company specializing in providing
economic and market price information to the forestry business.

	 	1.10	 	“F2M Benchmark Area Price” means the total delivered price developed by F2M for
a specified feedstock for the specific area known as Market Area 4 that is normally
reported by F2M.

	 	1.11	 	“Force Majeure Event” means any act or event or combination of acts or events
that, with respect to a Party, (a) impedes or delays such Party’s performance of its
obligations in accordance with this Supply Agreement, (b) is beyond the reasonable
control of such Party, (c) does not result from such Party’s fault or negligence, and
(d) such Party has been unable to overcome by taking diligent actions. Subject to
compliance with all of the preceding conditions, “Force Majeure Event” includes,
without limitation, the following acts or events:

	 	(a)	 	strikes, lockouts or other industrial disputes or disturbances
that are not caused by such Party’s failure to comply with a labor contract;

	 	(b)	 	acts of a public enemy or of belligerents, hostilities or other
disorders, wars (declared or undeclared), blockades, thefts, insurrections,
riots, civil disturbances or sabotage;

	 	(c)	 	acts of nature, landslides, earthquakes, fires, tornadoes,
hurricanes, storms, floods, perils of the sea, washouts, inclement weather that
necessitates extraordinary measures and expense to construct facilities or
maintain operations, tidal waves, and other adverse weather conditions and
warnings issued by any Governmental Authority for any of the foregoing which
necessitate the precautionary shut-down of pipelines, docks, loading and
unloading facilities of the FCU or other related facilities or CLE, Affiliate
or third party facilities handling Feedstock.

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	 	 	 	A Party’s mere inability economically to perform its obligations hereunder does not
constitute a Force Majeure Event.

	 	1.12	 	“Forest Residuals” means small trees, branches, tops and otherwise
un-merchantable wood remaining after the clearing, thinning or final felling of forest
stands.

	 	1.13	 	“Governmental Authority” means any U.S. federal, state, regional, local or
municipal governmental body, agency, instrumentality, board, bureau, commission,
department, authority or entity established or controlled by a government or
subdivision thereof, including any legislative, administrative or judicial body.

	 	1.14	 	“Green Short Tons” or “GST” of Feedstock means U.S. tons (i.e., 2,000 pounds)
of Feedstock as delivered to the Receiving Facility gate.

	 	1.15	 	“Harvest Year” has the meaning ascribed to it in Section 4.1.1.

	 	1.16	 	“KiOR Unit” has the meaning ascribed to it in the Preamble.

	 	1.17	 	“Management Fee” means the amount set forth in Section 7.4 below representing
the value provided by CLE in (a) supplying 100% of the Feedstock to the FCU and (b)
performing the other services required by this Supply Agreement.

	 	1.18	 	“Operating Period” means the period commencing on the Delivery Start Date and
ending on the last day of the Supply Term.

	 	1.19	 	“Pine and Hardwood Pulpwood” or “Pulpwood” means logs or segments of logs
(other than saw logs, veneer logs or similar or higher grade log products) that can be
chipped, shredded, flaked, ground, or otherwise converted to make pulp, paper, or
composite panel products.

	 	1.20	 	“Price” has the meaning ascribed to it in Section 9.

	 	1.21	 	“Quarter” means one of the periods of January-March, April-June,
July-September, and October-December.

	 	1.22	 	“Receiving Facility” is a receiving and shipping facility (on land) designated
by KiOR at or in the immediate vicinity of the KiOR Unit.

	 	1.23	 	“Shortfall” means the difference between (i) the amount of Feedstock that is
ninety-five percent (95%) of the annual Delivery Plan amounts for a Harvest Year and
(ii) the amount of Feedstock actually accepted by KiOR or delivered by CLE (as the case
may be) for such Harvest Year.

	 	1.24	 	“Specifications” means the specifications for Feedstock set forth on Exhibit A,
as such may be adjusted from time to time as set forth in this Supply Agreement.

	 	1.25	 	“Supply Term” has the meaning ascribed to it in Section 3.

	 	1.26	 	“Variance” is the amount, expressed as a percentage or stated volume, by which
the Delivered Volume during a calendar year may vary from the Delivery Plan without

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	 	 	 	either Party being considered in breach of its obligations under this Agreement
(without giving consideration to the effects of a Force Majeure Event).

	 	1.27	 	“Whole Tree Chips” means stems or tops of hardwood and/or pine trees that are
chipped in the woods, including limbs, branches, leaves and needles, where only
“sawtimber grade” stems may be merchandized from any of the material prior to chipping.

	2.	 	KiOR Unit. The KiOR Unit is located at 600 Industrial Park Access Road, Columbus,
Mississippi 39701.

	3.	 	Term of Supply Agreement; Supply Term. CLE shall provide one hundred percent (100%) of the
requirements of Feedstock of the KiOR Unit, which the parties target to be approximately
350,000 GST annually, from the Delivery Start Date and for a period of two (2) years
thereafter (the “Initial Term”) unless otherwise terminated as set forth herein. Unless CLE
or KiOR notifies the other Party on or before the date that is six (6) months prior to the end
of the Initial Term or the then-current Extended Term (as defined below), if any, that it
desires to terminate this Supply Agreement effective at the end of the Initial Term or the
then-current Extended Term, as applicable, the term of this Supply Agreement shall be
automatically extended for an additional period of one (1) year (each such extension, the
“Extended Term”), unless otherwise earlier terminated as set forth herein. The Initial Term
together with all Extended Terms, if applicable, shall be considered the “Supply Term” of this
Supply Agreement.

	4.	 	Delivery Planning.

	 	4.1	 	Delivery Plan. CLE and KiOR shall work together to develop mutually agreeable
schedules for deliveries of Feedstock for each Quarter during the Supply Term
(“Delivery Plans”) for the KiOR Unit. Such Delivery Plans shall reflect the mutual
desire of the Parties to implement inventory strategies that minimize the probability
of Feedstock stockout while managing the Parties’ respective working capital costs to
reasonable levels.

	 	4.1.1	 	During Operating Period. Not less than ninety (90) days
prior to the Delivery Start Date and prior to October 1 of each year thereafter
of the Operating Period (each such year a “Harvest Year”), the Parties shall
confer and agree upon a Delivery Plan specifying the target annual delivery
volume and type of Feedstock to be delivered under this Supply Agreement during
each Quarter of the initial Harvest Year and each subsequent Harvest Year of
the Operating Period.

	 	4.1.2	 	Variances. Deliveries shall be dispatched on a relatively
even flow basis within each Quarter. If KiOR accepts less than ninety-five
percent (95%) of the annual Delivery Plan amounts during any Harvest Year for
any reason other than (a) CLE’s failure to deliver such amounts or (ii) the
occurrence of a Force Majeure Event, KiOR shall not be in default hereunder,
but shall be required, if requested by CLE, to pay to CLE damages for the
Shortfall in an amount equal to the Price of the Feedstock in the Shortfall,
less amounts received by CLE for the sale of the Shortfall amounts to others
(if any), plus CLE’s direct expenses incurred for marketing and distributing
the Feedstock in the Shortfall to others. If CLE delivers less than
ninety-five percent (95%) of the annual Delivery Plan amounts during any
Harvest Year for any reason other than (a) KiOR’s failure to accept such
delivered amounts or (b) the occurrence of a Force Majeure Event,

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	 	 	 	CLE shall not be in default hereunder, but shall be required, if requested
by KiOR, to pay to KiOR damages for the Shortfall in an amount equal to the
market price paid by KiOR to procure from others the Feedstock in the
Shortfall, less the Price of the Feedstock in the Shortfall, plus KiOR’s
direct expenses incurred to procure the Feedstock in the Shortfall from
others. The Parties shall work together to adjust delivery schedules to
accommodate temporary or unforeseen hardships for either Party. Each Party
shall notify the other Party of any anticipated delays as soon as such delay
is anticipated. The Parties acknowledge that the liquidated damages set
forth in this Section 4.1.2 are reasonable under the circumstances existing
as of the effective date of this Supply Agreement and reasonably approximate
the amount of damage that would be sustained by the damaged Party as a
result of a Shortfall, and that it is impracticable or extremely difficult
to determine the actual damages that would be sustained by the damaged Party
as a result of a Shortfall.

	 	4.2	 	Effect of Delivery Plan. The volumes of Feedstock to be delivered to the KiOR
Unit shall be specified in the Delivery Plan for each Harvest Year. CLE agrees to sell
and deliver, and KiOR agrees to purchase from CLE, for the Price, the volumes of
Feedstock agreed in the Delivery Plan for such Harvest Year.

	5.	 	Feedstock

	 	5.1	 	Feedstock Type. Feedstock may include the following feedstock categories:
Pine and Hardwood Pulpwood, Whole Tree Chips and Forest Residuals.

	 	5.2	 	Feedstock Weighing. All Feedstock delivered under this Supply Agreement shall
be weighed by KiOR, or a designated third party approved by CLE, upon delivery to the
Receiving Facility for the KiOR Unit at the scales of such Receiving Facility, and all
weight data shall be recorded by the weigher on weight tickets, along with such other
data as either Party may reasonably request or as may be required by law. Copies
thereof, and/or the information contained therein, shall be provided to CLE in such
form and manner as may be reasonably requested by CLE from time to time. The weight
scales used by KiOR shall be certified by a third party and/or state or local agency in
accordance with applicable law and regulation, and KiOR shall promptly provide CLE with
any notices or statements in deficiencies received by KiOR with respect to the scales
or the weighing process. If a federal or state entity provides written notice to KiOR
of a deficiency with respect to KiOR’s weighing process, KiOR shall provide CLE with
written notice of such deficiency within seven (7) days of receipt of the notice from
such federal or state entity.

	 	5.3	 	Feedstock Unloading. KiOR agrees that the Receiving Facility for the KiOR Unit
shall be constructed with adequate unloading facilities for unloading Feedstock from
trucks in a manner and time period consistent with general industry practice for
facilities the size of the KiOR Unit. In the event that CLE reasonably determines that
the Receiving Facility at the KiOR Unit is sized in a manner inconsistent with the
foregoing sentence, CLE and KiOR shall meet in good faith to resolve such matters.

	 	5.4	 	Feedstock Unloading Turn Time. KiOR shall use commercially reasonable efforts
to unload Feedstock from trucks within a forty-five (45) minute turn-time. Turn-time
shall be measured by the total cycle time from entry to the scale ramp to the exit off
the scale

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	 	 	 	ramp via a mutually agreed upon virtual perimeter or “Geofence” created for the FCU
as defined consistent with this Section 5.4 by global positioning system (“GPS”)
during the delivery and unloading process.

	 	(a)	 	CLE will provide KiOR a weekly report of daily turn times. If
turn-time exceeds forty-five (45) minutes on an average daily basis for more
than thirty (30) days during any quarter, KiOR shall pay, in addition to the
price of Feedstock set forth in Section 7 below, an additional 10% surcharge to
the price of Feedstock, on the volume that is delivered on days with average
turn-times greater than forty-five (45) minutes on an average daily basis
during the quarter.

	 	5.5	 	RFS2 Compliance. All Feedstock delivered to the KiOR Unit must meet the
definition of “renewable biomass” as provided in 40 CFR 80.1454 (RFS2). CLE will
provide the documents associated with Feedstock purchases and transfers that identify
where the Feedstocks were produced and are sufficient for KiOR to verify that the
Feedstocks meet the definition of renewable biomass in RFS2. These documents include,
but are not limited to, documentation of land management in accordance with a
silvicultural product certification program as of December 19, 2007; maps or electronic
data identifying the boundaries of the land where the Feedstock was produced; and bills
of lading, product transfer documents, or other commercial documents showing the
quantity of Feedstock and any transfers of custody from the location where it was
produced to the KiOR Unit. Document examples are attached as Exhibit C and include
Weyerhaeuser’s certification to the Sustainable Forestry Initiative (SFI®) standard, a
sample setting plat showing boundaries and latitude and longitude of a harvest area,
and a standard truck trip ticket.

	6.	 	Specifications. Specifications for Feedstock to be supplied to the KiOR Unit shall be
initially determined by mutual agreement of the parties by no later than July 31, 2011 and
shall be attached hereto as Exhibit A. CLE agrees to deliver to KiOR Feedstock that conforms
to the Specifications (unless modified pursuant to the provisions of this Section 6). After
commencement of the Supply Term, on an annual basis (or more frequently if agreed by both
Parties), the Parties shall discuss whether or not to adjust the Specifications, including
without limitation as may be required by manufacturing or field conditions. If the Parties
mutually agree to adjust the Specifications including, if necessary, any adjustment in prices,
the adjustments shall be reflected in a written amendment, executed in writing by duly
authorized representatives of both Parties, to this Supply Agreement.

	 	6.1	 	Deliveries Not Meeting Specifications. KiOR shall have no obligation to take
delivery of or purchase Feedstock that does not meet the Specifications at the time of
delivery to the Receiving Facility for the KiOR Unit (a “Non-Conforming Delivery”). To
the extent that any attempted delivery of Feedstock is a Non-Conforming Delivery, KiOR
shall have the right, in its sole discretion, to elect to reject or not receive the
Non-Conforming Delivery. If KiOR elects to receive a Non-Conforming Delivery, CLE
shall have a right to inspect such Non-Conforming Delivery prior to unloading the
material at the Receiving Facility (in which case the turn-time
requirements of Section 5.4 shall not apply to all trucks associated with such
Non-Conforming Delivery), after which the Parties shall mutually agree in writing on
any necessary adjustment to the Price. In the event the Parties are unable to agree on
an adjustment to the Price, then KiOR shall have no obligation to purchase such
Non-Conforming Delivery and may reject it. Feedstock that is rejected shall not be
counted as Delivered Volume. Feedstock that is rejected shall be disposed of or
otherwise handled at CLE’s sole expense.

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	7.	 	Price. The price of the Feedstock shall be determined based on the prices of the
components listed below:

	 	7.1	 	Pulpwood: Pricing for Pulpwood Feedstock delivered to KiOR shall be equal to
the F2M previous calendar quarter’s F2M Benchmark Area Price of purchased Softwood and
Hardwood Pulpwood reported by F2M. For Softwood it is the F2M Market Area 4 Average
and for Hardwood it is the F2M Southwide Average for Hardwood.

	 	7.2	 	Whole Tree Chips: Pricing for Whole Tree Chips delivered to KiOR shall be equal
to the pricing for Pine Pulpwood as set forth above plus a Feedstock Operational
Differential of $***/Green Short Ton to adjust for the additional cost of in-woods
chipping.

	 	7.3	 	Forest Residuals: Pricing for Forest Residuals shall be determined by mutual
agreement of the Parties at such time as harvest of Forest Residuals becomes
economically beneficial to both Parties.

	 	7.4	 	Management Fee: For the service of providing 100% of the Feedstock supply for
the KiOR Unit in compliance with the terms of this Supply Agreement, CLE will add a
management fee of $***/GST to the price of each ton of Feedstock supplied to the FCU,
which shall be in addition to any other prices described in this Section.

	 	7.5	 	F2M Price Determination: Those Feedstock price calculations which are based on
F2M shall be effective the first calendar day of the month immediately following the
release by F2M of the previous calendar quarter’s price data. For example, the price
developed from first Quarter data and which is released in April would be implemented
on May 1 and become effective through July.

	 	7.6	 	Severance Tax: All taxes, duties, fees, charges and surcharges of any nature
(other than taxes imposed on the gross or net income of CLE), which shall become
payable by reason of the weighing, purchase and sale, transportation, handling,
treatment, storage, loading and unloading, export and import, and consumption of the
Feedstock shall be paid by KiOR. If CLE is required to remit or collect on any of
these items, it may either bill the same to KiOR separately, require KiOR to pay such
amount directly to the collecting authority or add the same to the price of Feedstock.

	8.	 	Safety Policy. The KiOR safety policy for this Supply Agreement shall be attached hereto by
no later than December 31, 2011 as Exhibit B and incorporated by reference and made a part of
this Supply Agreement.

	9.	 	Terms of Sale.

	 	9.1	 	Price. KiOR shall pay CLE for Feedstock delivered to the receiving facility at
the price per Green Short Ton as determined pursuant to Section 7 above (the “Price”).

	 	9.2	 	Invoicing and Timing. KiOR shall pay CLE weekly, no later than ten (10) days
from the end of each calendar week, for all Feedstock delivered and accepted by KiOR
during such calendar week. At the same time as such payments, KiOR shall also provide
weight tickets, in the form acceptable to CLE, to document and support the payments
from KiOR. Payment shall be in U.S. Dollars by electronic funds transfer of
immediately available funds to CLE’s designated bank.

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	 	9.3	 	Financial Responsibility. If at any time KiOR’s financial responsibility shall
become impaired or unsatisfactory to CLE in applying its normal credit standards
following KiOR’s inability to make timely undisputed payments for Feedstock, CLE may,
without prejudice to its other rights, demand security, change payment terms, or
require advance payment. KiOR agrees to pay CLE a late fee of 1.75% per month or the
highest rate permitted by law, if lower, on all overdue balances.

	 	9.4	 	Title Transfer. Title to and risk of loss for the Feedstock shall pass from CLE to
KiOR upon the unloading of CLE’s trucks at the Receiving Facility of the KiOR Unit. To
avoid doubt, upon and after unloading, KiOR shall bear all risk of loss to the
Feedstock.

	 	9.5	 	Right to Audit. Each Party shall prepare and maintain complete and accurate
books, records and accounts as may be reasonably required to confirm such Party has met
its obligations to provide Feedstock and to pay for Feedstock consistent with the terms
of this Supply Agreement. Each Party shall have the right, at reasonable times and
upon reasonable advance notice to have an independent auditor approved by the other
Party (the “Auditor”), such approval not to be unreasonably withheld, examine the
applicable books, records and accounts of the other Party solely to verify such
obligations have been met hereunder. A Party may perform an audit only once each
twelve (12) month period and each such audit shall be limited to an audit of the
activities of the preceding twelve (12) months. An Auditor must enter into a
confidentiality agreement with the audited Party with terms at least as protective of
such Party as the terms under the Master Confidentiality Agreement and shall not share
Confidential Information of the audited Party. The results of such audit shall
indicate only whether, and to what extent, such audited obligations have been met and
shall be the Confidential Information of both Parties. Any such audit shall be
conducted during the normal business hours of the Party being audited, in such a manner
as not to interfere with the normal business activities of the Party being audited, and
shall be at the expense of the Party requesting the audit.

	10.	 	Mutual Representations and Warranties. Each of KiOR and CLE hereby represents and warrants
to the other of them that the representing and warranting Party is duly organized in its
jurisdiction of organization; that the representing and warranting Party has the full power
and authority to enter into this Supply Agreement; that this Supply Agreement is binding upon
the representing and warranting Party; and that this Supply Agreement has been duly authorized
by all requisite corporate or limited liability company action, as applicable, by the
representing and warranting Party.

	11.	 	Conditions Precedent.

	 	11.1	 	Specifications. The Parties’ obligations, including of KiOR to take delivery
of or purchase any Feedstock, hereunder shall be subject to the mutual agreement by the
Parties of the required Specifications for Feedstock by no later than July 31, 2011.

	 	11.2	 	CLE-Weyerhaeuser Feedstock Agreement. The Parties’ obligations hereunder,
including of KiOR to take delivery of or purchase any Feedstock, shall be subject to
the execution of a written agreement between CLE and Weyerhaeuser NR Company for the
back-to-back purchase by CLE from Weyerhaeuser NR Company of Feedstock sold hereunder
by CLE (“CLE-Weyerhaeuser Supply Agreement”) prior to forty-five (45) days after the
effective date of this Agreement.

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	12.	 	Master Confidentiality Agreement. Except to the extent expressly provided for otherwise in
this Supply Agreement, the terms of the Master Confidentiality Agreement between the Parties
shall apply to this Supply Agreement as if set forth fully herein.

	13.	 	Insurance; Conflicts of Interest.

	 	13.1	 	Insurance. Each party shall, throughout the term of this Supply Agreement,
carry appropriate insurance with a reputable insurance carrier covering property
damage, business interruptions, worker’s compensation, employer’s liability and general
liability insurance (including contractual liability) to protect its own business and
property interests, provided that each Party may self-insure in accordance with
applicable industry standards.

	 	13.2	 	Conflicts of Interest (CLE). Conflicts of interest relating to this Agreement
are strictly prohibited. Except as otherwise expressly provided herein, neither CLE
nor any director, employee or agent of CLE or its subcontractors or vendors shall give
to or receive from any director, employee or agent of KiOR any gift, entertainment or
other favor of significant value, or any commission, fee or rebate. Likewise, neither
CLE nor any director, employee or agent of CLE or its subcontractors or vendors shall,
without prior written notification to KiOR, enter into any business relationship with
any director, employee, or agent of KiOR or any Affiliate, unless such person is acting
for and on behalf of KiOR. CLE shall promptly notify KiOR of any violation of this
Section 13.2 and any consideration received as a result of such violation shall be paid
over or credited to KiOR. Additionally, in the event of any violation of this Section
13.2, including any violation occurring prior to the Effective Date of this Agreement,
resulting directly or indirectly in KiOR’s consent to enter into this Agreement, KiOR
may, at KiOR’s sole option, terminate this Agreement at any time and notwithstanding
any other provision of this Agreement, pay CLE only for Feedstock delivered prior to
the date of termination. Subject to all other restrictions in Section 9.5 (Right to
Audit), any representatives authorized by KiOR may audit any and all records of CLE and
its subcontractors and vendors for the sole purpose of determining whether there has
been compliance with this Section 13.2.

	 	13.3	 	Conflicts of Interest (KiOR). Conflicts of interest relating to this Agreement
are strictly prohibited. Except as otherwise expressly provided herein, neither KiOR
nor any director, employee or agent of KiOR or its subcontractors or vendors shall give
to or receive from any director, employee or agent of CLE any gift, entertainment or
other favor of significant value, or any commission, fee or rebate. Likewise, neither
KiOR nor any director, employee or agent of KiOR or its subcontractors or vendors
shall, without prior written notification to CLE, enter into any business relationship
with any director, employee, or agent of CLE or any Affiliate, unless such person is
acting for and on behalf of CLE. KiOR shall promptly notify CLE of any violation of
this Section 13.3 and any consideration received as a result of such violation shall be
paid over or credited to CLE. Additionally, in the event of any violation of this
Section 13.3, including any violation occurring prior to the Effective Date of this
Agreement, resulting directly or indirectly in CLE’s consent to enter into this
Agreement, CLE may, at CLE’s sole option, terminate this Agreement at any time.
Subject to all other restrictions in Section 9.5 (Right to Audit), any representatives
authorized by CLE may audit any and all records of KiOR and its subcontractors and
vendors for the sole purpose of determining whether there has been compliance with this
Section 13.3.

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	14.	 	Limited Warranty.

	 	14.1	 	Limited Warranty. CLE represents and warrants to KiOR that: (a) Feedstock
sold to KiOR pursuant to this Agreement shall, at the time of delivery at the Receiving
Facility, conform to the Specifications defined in this Supply Agreement; (b) Feedstock
sold to KiOR is not subject to any lien, pledge, security interest, imperfection of
title, encumbrance, right of first refusal or other right, restriction or limitation
with respect to the Feedstock sold to KiOR and CLE has good and valid title to all
Feedstock sold to KiOR, free and clear of any and all of the foregoing; (c) Feedstock
sold to KiOR is certified as “renewable” in compliance with RFS2 as required by Section
5.5; (d) the production process of the Feedstock sold to KiOR meets all best management
practices of the State of Mississippi or Alabama; and (e) the forest stands from which
the Feedstock sold to KiOR was sourced has been managed consistent with the principles
of the Sustainable Forestry Initiative. KiOR’s sole and exclusive remedy, and CLE’s
sole liability, for a breach of Section 14.1(a) or (b) shall be the remedy set forth in
Section 6.1.

	 	14.2	 	Disclaimer of Warranties. EXCEPT AS SET FORTH IN SECTION 14.1, KIOR
ACKNOWLEDGES AND AGREES THAT THE FEEDSTOCK PROVIDED BY CLE HEREUNDER IS SUPPLIED TO
KIOR “AS IS” WITH NO WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, EXCEPT AS SET FORTH IN
SECTION 14.1, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE OR NON-INFRINGEMENT, ALL OF WHICH WARRANTIES ARE HEREBY EXPRESSLY DISCLAIMED.

	15.	 	Limitation of Liability; Indemnity.

	 	15.1	 	Limitation of Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER
PARTY FOR ANY INDIRECT, CONSEQUENTIAL, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES, EVEN IF
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND NOTWITHSTANDING ANY FAILURE OF ESSENTIAL
PURPOSE OF ANY LIMITED REMEDY OF ANY KIND, UNDER ANY CONTRACT, NEGLIGENCE, STRICT
LIABILITY OR OTHER THEORY, ARISING OUT OF OR RELATING IN ANY WAY TO THIS AGREEMENT.
EACH PARTY’S AGGREGATE LIABILITY ARISING OUT OF OR RELATING IN ANY WAY TO THIS SUPPLY
AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER THEORY, SHALL NOT
EXCEED AMOUNTS PAID BY KIOR UNDER THIS SUPPLY AGREEMENT DURING THE TWELVE (12) MONTH
PERIOD PRIOR TO THE EVENT GIVING RISE TO THE LIABILITY. THE LIMITATION OF LIABILITY IN
THE FOREGOING SENTENCE SHALL NOT APPLY TO, AND SHALL BE IN ADDITION TO, ANY AMOUNTS
PAYABLE UNDER THIS SUPPLY AGREEMENT. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN,
THE LIMITATIONS OF LIABILITY IN THIS SECTION 15.1 SHALL NOT APPLY TO ANY SUCH DAMAGES
PAID OR PAYABLE BY OR ON BEHALF OF AN INDEMNIFIED PARTY TO A THIRD PARTY IN CONNECTION
WITH A CLAIM FOR WHICH INDEMNIFICATION IS DUE UNDER SECTION 15.2.

	 	15.2	 	Mutual Indemnification. Each Party shall indemnify, defend, and hold the other
Party harmless from claims, demands, expenses (including penalties, interest and
reasonable attorneys’ fees), and causes of action asserted against the other Party by
any other person

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	 	 	 	(including without limitation employees of either Party or any Federal, state or
local governmental authority) for personal injury or death, or the loss of or damage
to property, resulting from the willful or negligent acts or omissions of the
indemnifying Party or from the indemnifying Party’s failure to comply with Federal,
state or local laws or regulations relevant and applicable to the Feedstock sold to
KiOR under this Agreement, including their delivery and receipt. Where the personal
injury, death or loss of or damage to property is the result of the joint negligence
or misconduct of the Parties hereto, the Parties expressly agree to indemnify each
other in proportion to their share of such joint negligence or misconduct as
determined either by agreement of the Parties or by final judgment of a court of
competent jurisdiction.

	16.	 	Force Majeure.

	 	16.1	 	Force Majeure in General. The obligations of the Party subject to a Force
Majeure Event (“Affected Party”) pursuant to the Agreement (other than any obligation
to pay money) may be suspended by such Affected Party without liability hereunder
during the continuance of such Force Majeure Event as set forth in this Section 16,
provided that the suspension shall be of no greater scope and of no longer duration
than is reasonably attributable to the Force Majeure Event.

	 	16.2	 	Force Majeure Notification. If the Affected Party wishes to invoke the
provisions of Section 16 hereof, then the Affected Party shall give notice to the other
Party of such Force Majeure Event as soon as reasonably practicable after becoming
aware of such Force Majeure Event. Each such notice shall specify and describe the
particulars of the Force Majeure Event and the steps taken to mitigate and overcome the
effects of such Force Majeure Event.

	 	16.3	 	Force Majeure Process. The Affected Party shall, by reason of any Force
Majeure Event in respect of which it has claimed relief:

	 	(a)	 	Use commercially reasonable efforts to mitigate the effects of
such Force Majeure Event and to remedy any inability to perform its obligations
hereunder due to such Force Majeure Event as promptly as reasonably
practicable; provided that it shall: (i) not be obliged to take any steps that
would not be in accordance with applicable laws or that would be beyond its
control and (ii) not be required to settle any strikes or other labor disputes.

	 	(b)	 	Provide reports to the other Party, as reasonably requested by
the other Party, regarding the progress in overcoming the resulting delay in
its performance due to the Force Majeure Event and setting forth its best, good
faith estimate concerning when it shall be able to resume the performance of
its obligations under this Agreement.

	 	16.4	 	Reduction of Amounts. Any amounts of Feedstock KiOR is obligated to purchase or
CLE is obligated to sell under this Agreement shall be reduced during the period of
suspension of performance by the Affected Party due to the Force Majeure Event by the
amount of Feedstock that is unable to be delivered, received, produced or processed as
a result of such suspension.

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	 	16.5	 	Resumption of Performance. When the Affected Party is able to resume
performing the obligations under this Agreement that were suspended as a result of the
Force Majeure Event, then the Affected Party shall promptly give the other Party
written notice to that effect and the period of suspension of performance relating to
such Force Majeure Event shall be deemed to have ended.

	 	16.6	 	Volume Reduction. If the suspension of performance due to a Force Majeure
Event lasts for more than six (6) months and reduces the total volume of Feedstock sold
by CLE to KiOR to fifty percent (50%) or less of the Parties’ total volumetric
obligations under this Supply Agreement for such period, then, upon thirty (30) days
prior written notice to the Affected Party, the other Party may terminate this
Agreement.

	17.	 	Termination.

	 	17.1	 	By Mutual Agreement. At any time, the Parties may terminate this Supply
Agreement upon mutual written agreement.

	 	17.2	 	Termination Due to Breach of Material Obligation. This Supply Agreement may be
terminated upon the giving of written notice thereof to the other Party in the event of
any breach of any material obligation of the other Party hereunder (including any
nonpayment of an amount due), which breach is not cured within ninety (90) days
following the giving of written notice thereof to the breaching Party by the
non-breaching Party.

	 	17.3	 	Termination Prior to Start of Operating Period. This Supply Agreement may be
terminated by either Party, at its option, effective upon the giving of written notice
thereof to the other Party in the event of the failure to achieve any of the conditions
precedent described in Section 11. In addition, CLE, in its sole discretion, may
terminate this Agreement if it has not received KiOR’s written notice of the Delivery
Start Date by December 31, 2012.

	 	17.4	 	Effect of Termination. Upon termination or expiration of this Supply
Agreement, all rights and obligations under this Supply Agreement shall terminate
except for those of Sections 9 (with respect to amounts owed as of the effective date
of expiration or termination), 9.5, 12, 14.2, 15 and 20 of this Agreement.

	18.	 	Publicity. Neither Party shall use the name, trade name or trademark of the other Party
without the express prior written consent of such other Party except as required under any
applicable law. Any publication, news release or other public announcement by either Party
relating to this Supply Agreement or to the performance hereunder, shall first be reviewed and
approved by the non-announcing Party. Without CLE’s prior written consent, KiOR shall not
(and shall not authorize any third party to) use the name of CLE or its Affiliates to endorse
or promote KiOR’s products, or make any representation or imply, to any third party, that CLE
or its Affiliates make any endorsement or approval of KiOR or KiOR’s products. Upon execution
of this Agreement KiOR may issue a press release announcing this Agreement subject to the
consent of CLE as required in this Section 18.

	19.	 	Subsequent Agreements. After execution of this Agreement both Parties will attempt in good
faith to negotiate an agreement for the supply of feedstocks, including clean chips, during
the commissioning period of the FCU (i.e. prior to the Delivery Start Date). In addition, both
KiOR and CLE recognize that further opportunities may exist beyond the scope of this Agreement
with

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	 	 	regard to the supply of Feedstock to subsequent KiOR units. In the event that such
opportunities materialize the Parties shall collaborate in an effort to identify potential
locations and, where appropriate, negotiate and execute site-specific supply agreements
using this Agreement as a starting point.

	20.	 	Miscellaneous.

	 	20.1	 	Entire Agreement; No Amendment. This Agreement (together with any
Site-Specific Supply Agreements), the other Related Agreements, if and when executed by
the Parties and the letter between the Parties dated as of April 12, 2011, constitute
the entire agreement between the Parties concerning the subject matter hereof and
supersede all prior or contemporaneous representations, negotiations, conditions,
communications and agreements, whether oral or written, between the Parties relating to
the subject matter hereof. No amendment, cancellation, modification, or waiver of any
provision of this Agreement shall be effective unless in writing and signed by duly
authorized signatories of both Parties.

	 	20.2	 	Assignment. This Supply Agreement and the rights and obligations hereunder may
not be assigned by either Party, in whole or part, whether voluntarily, by operation of
law, change of control or otherwise, without the prior written consent of the other
Party, which consent shall be in the sole discretion of such other Party, except that
with respect to an assignment to an Affiliate of a Party, the consent of the other
Party shall not be unreasonably withheld. Notwithstanding the foregoing, an assignment
by CLE to any of its Affiliates set forth in Annex 1 of this Supply Agreement shall be
deemed reasonable and accordingly KiOR’s prior written consent shall not be required
for an assignment by CLE to any of the entities set forth in Annex 1. In addition, CLE
may assign this Supply Agreement without KiOR’s prior written consent to any person(s)
or entity(ies) that acquire all or a substantial portion of the timberlands owned by
CLE’s Affiliate from whom CLE sources a substantial portion of the Feedstock for this
Supply Agreement. Any purported assignment or delegation in violation of the foregoing
shall be null, void and of no force or effect. Subject to the foregoing, this Supply
Agreement shall be binding upon and inure to the benefit of the Parties and their
respective successors and permitted assigns. For purposes of this Supply Agreement,
“Affiliate” shall mean, with respect to a Party, any entity that controls, is
controlled by, or is under common control with such Party. An entity shall be regarded
as being in control of another entity if it owns, directly or indirectly, fifty percent
(50%) or more of the equity share capital or voting interest of the other entity.

	 	20.3	 	Notices. Any notice, request or other communication hereunder shall be in
writing and shall be deemed given or submitted when so delivered in person, by
overnight courier (with receipt confirmed), by facsimile transmission (with receipt
confirmed by telephone or by automatic transmission report), or, if delivered by mail,
upon receipt, to the addresses and facsimile numbers set forth below or to such other
persons and/or addresses and facsimile numbers as may be specified in subsequent
notices.

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	 	(a)	 	If to CLE:

Catchlight Energy LLC

Attention: Maro Imirzian, Vice President, Finance

PO Box 9777

WTC 1B42

Federal Way, WA 98063-9777

Tel: (253) 924-2737

	 	 	 	With a copy (which shall not constitute notice) to:

Morrison and Foerster LLP

Attention: Tessa Schwartz, Esq.

425 Market Street

San Francisco, CA 94105

Tel: (415) 268-7000

	 	(b)	 	If to KiOR:

KiOR Columbus, LLC

Attention: Mike McCollum

13001 Bay Park Road

Pasadena, TX 77507

Tel: (281) 694-8753

Fax: (281) 694-8799

	 	 	 	With a copy (which shall not constitute notice) to:

KiOR, Inc.

Attention: Christopher A. Artzer, Vice President and General Counsel

13001 Bay Park Road

Pasadena, TX 77507

Tel: (281) 694-8703

	 	20.4	 	Choice of Law. This Supply Agreement shall be governed by and construed in
accordance with the laws of the State of New York, USA, without reference to its
conflicts of laws provisions. Any controversy, claim, or dispute, arising out of or in
connection with the Agreement shall be commenced in the Southern District of New York
or in New York County, and each Party irrevocably submits to the exclusive jurisdiction
and venue of such court. THE PARTIES HEREBY EXPRESSLY WAIVE THE RIGHT TO A TRIAL BY
JURY IN ANY ACTION OR PROCEEDING BROUGHT BY OR AGAINST EITHER OF THEM RELATING TO THIS
SUPPLY AGREEMENT.
	 
	 	20.5	 	Relationship of the Parties. The Parties acknowledge that each is acting as an
independent contractor with respect to the other and nothing contained in this Supply
Agreement is intended, or is to be construed, to constitute the Parties as partners,
joint venturers, or agents of the other, and neither Party shall have any authority of
any kind to bind the other Party in any respect whatsoever.

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	 	20.6	 	Performance. In connection with CLE’s performance of its obligations and
exercise of its rights hereunder, CLE may have such obligations performed and such
rights exercised on its behalf by its Affiliates and its and their respective
contractors and consultants.
	 
	 	20.7	 	Severability. In the event that any of the provisions of this Supply Agreement
shall be held by a court or other tribunal of competent jurisdiction to be invalid or
unenforceable, the remaining portions hereof shall remain in full force and effect in
accordance with their terms and such provision shall be enforced to the maximum extent
possible so as to effect the intent of the Parties and shall be reformed to the extent
necessary to make such provision valid and enforceable in accordance with its terms.
	 
	 	20.8	 	No Waiver. The waiver by either Party of a default under any provision of this
Supply Agreement shall not be construed as a waiver of any subsequent default under the
same or any other provision, nor shall any delay or omission on the part of either
Party to exercise or avail itself of any right or remedy that it has or may have
hereunder operate as a waiver of any right or remedy.
	 
	 	20.9	 	Headings. The section or paragraph headings or titles herein are for
convenience of reference only and shall not be deemed a part of this Supply Agreement.
	 
	 	20.10	 	Counterparts. This document may be executed in two or more counterparts
(including via facsimile), each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

[Signature page follows]

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IN WITNESS WHEREOF, the Parties have executed this Supply Agreement to be effective as of the
Supply Agreement Effective Date.

	 	 	 	 	 	 	 

	 
	Catchlight Energy LLC	 	KiOR Columbus, LLC
	 
	By: 	 /s/ Michael H. Burnside	 	By: 	  /s/ Fred Cannon
	 	Name: 	 Michael H. Burnside	 	 	Name: 	  Fred Cannon
	 	Title:	 President and CEO	 	 	Title:	  President and CEO

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Exhibit A

Feedstock Specifications

(Attach specifications by July 31, 2011)

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Exhibit B

Safety Policy for Columbus, MS Site

(Attach policy by December 31, 2011)

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Exhibit C

Examples of RFS2 Documentation

Harvest Area Map

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Weyerhaeuser’s SFI Certification

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Annex I

CLE Affiliates

Chevron Products Company (a Chevron U.S.A. Inc. division)

Chevron Global Downstream LLC

Chevron Business Development Inc.

Chevron Technology Ventures (a Chevron U.S.A. Inc. division)

CTTV Investments LLC

Chevron Technology Ventures LLC

Chevron Standard Limited

Chevron Corporation

Chevron U.S.A. Inc.

Chevron Capital U.S.A. Holdings, Inc.

Chevron Energy Technology Company (a Chevron U.S.A. Inc. division)

Weyerhaeuser Company

Weyerhaeuser NR Company

Weyerhaeuser Solutions Inc.

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22exv10w1

    Exhibit
    10.1

 

    LULULEMON
    ATHLETICA INC.

    

 

    EXECUTIVE
    BONUS PLAN

 

	 	 	 
	

    PLAN TERM

	
 
	
    Five fiscal years beginning January 31, 2011

	

    PLAN EFFECTIVE DATE

	
 
	
    January 31, 2011

	

    PLAN YEAR

	
 
	
    lululemon’s fiscal year

 

    PURPOSE

 

			
	 	    • 
	
    The purpose of this Executive Bonus Plan (the
    “Plan”) is to increase stockholder value by
    providing an incentive for the achievement of goals that support
    the strategic plan of lululemon athletica inc. (the
    “Company”).

 

    ELIGIBILITY

 

			
	 	    • 
	
    The Plan is applicable for positions of executive vice president
    and above, and other senior officers of the Company as
    designated by the Management Development and Compensation
    Committee of the Board of Directors (the
    “Participants”).

	 
	 	    • 
	
    The CEO has the authority to recommend participants. The
    Management Development and Compensation Committee has the sole
    authority to designate Participants.

	 
	 	    • 
	
    Eligibility will cease upon termination of the
    Participant’s employment, withdrawal of designation by the
    Management Development and Compensation Committee, transfer to a
    position compensated otherwise than as provided in the Plan,
    termination of the Plan by the Company, or if the Participant
    engages, directly or indirectly, in any activity which is
    competitive with any Company activity.

	 
	 	    • 
	
    If a Participant changes from an eligible position to an
    ineligible position during the Plan Year, eligibility to
    participate will be at the discretion of the Management
    Development and Compensation Committee.

 

    TARGET
    BONUS

 

			
	 	    • 
	
    The target bonus shall be the amount that would be paid to the
    Participant under the Plan if 100% of Financial Performance
    Goals and 100% of Individual Performance Goals were met (the
    “Target Bonus”).

	 
	 	    • 
	
    The Target Bonus for each Participant shall be established by
    the Management Development and Compensation Committee no later
    than ninety (90) days after the beginning of the Plan Year.

	 
	 	    • 
	
    The Target Bonus may be established as a percentage of base cash
    salary, or according to another method established by the
    Management Development and Compensation Committee. The amount of
    the Target Bonus earned by the Participant shall be based on the
    achievement of Financial Performance Goals and, if applicable,
    Individual Performance Goals.

 

    OBJECTIVE
    FINANCIAL PERFORMANCE GOALS

 

			
	 	    • 
	
    The Management Development and Compensation Committee shall
    select the Financial Performance Goals for each Participant no
    later than ninety (90) days after the beginning of the Plan
    Year and while the outcome is substantially uncertain.

	 
	 	    • 
	
    The Management Development and Compensation Committee may
    establish any special adjustments that will be applied in
    calculating whether the Financial Performance Goals have been
    met to factor out extraordinary items no later than ninety
    (90) days after the beginning of the Plan Year and while
    the outcome is substantially uncertain.

	 
	 	    • 
	
    In accordance with Section 162(m) of the Internal Revenue
    Code, the Management Development and Compensation Committee
    shall select one or more objective Financial Performance Goal
    measures from among Company Revenue, Earnings Per Share, Return
    on Capital, Sales Growth and Volume, Return on

    

    1

 

			
	 	
	
    Assets, Return on Equity, Net Income, Operating Income, Economic
    Profit, Expense Reduction or Controllable Expenses, Profit
    Margin, Gross Margin, Total Shareholder Return, Stock Price,
    Inventory Turns,
    and/or Free
    Cash Flow for the Objective Performance Goals.

 

			
	 	    • 
	
    The maximum performance level for each Financial Performance
    Goal is 150%.

	 
	 	    • 
	
    90% of the Target Bonus will be based on achievement of the
    Financial Performance Goals.

 

    INDIVIDUAL
    PERFORMANCE GOALS

 

			
	 	    • 
	
    The portion of the Target Bonus not determined by achievement of
    the Financial Performance Goals shall be determined by the
    Participant’s achievement of Individual Performance Goals.

	 
	 	    • 
	
    Each Participant with Individual Performance Goals shall submit
    such Individual Performance Goals for approval by the Management
    Development and Compensation Committee within ninety
    (90) days after the beginning of the Plan Year.

	 
	 	    • 
	
    The maximum performance level for each Individual Performance
    Goal is 150%.

 

    BONUS
    PAYOUT AND ELIGIBILITY

 

			
	 	    • 
	
    The bonus payout for each Participant under the Plan is based on
    the achievement of the Financial Performance Goals and the
    Individual Performance Goals (the “Bonus
    Payout”). A Bonus Payout under the Plan is earned as of
    the end of the Plan Year and will be paid according to the Plan,
    if the Participant remains a Company employee through the date
    on which Bonus Payouts are made to Participants under the Plan,
    unless employment is terminated prior to the end of the Plan
    Year due to death or disability.

	 
	 	    • 
	
    The Management Development and Compensation Committee, in its
    discretion, may determine that the Bonus Payout for any
    Participant will be less than (but not greater than) the amount
    earned by such Participant under the Plan.

	 
	 	    • 
	
    The maximum Bonus Payout for the achievement of Financial
    Performance Goals and the Individual Performance Goals is
    $3,500,000 to any one Participant in any plan year.

 

    BONUS
    PAYOUT CALCULATION

 

			
	 	    • 
	
    Within ninety (90) days after the beginning of the Plan
    Year and while the outcome is substantially uncertain, the
    Management Development and Compensation Committee shall review
    and approve for each Participant: the Target Bonus; the
    Financial Performance Goals; the Individual Performance Goals;
    and the relative weighting of the goals for the Plan Year. Those
    metrics will be used to calculate the Bonus Payout for each
    Participant. The Management Development and Compensation
    Committee shall review the Bonus Payout calculation for each
    Participant.

 

    BONUS
    PAYOUT PRORATIONS

 

			
	 	    • 
	
    For any Company employee who meets eligibility criteria and
    becomes a Participant after the start of the Plan Year but
    before November 1st of that fiscal year, or whose
    employment with the Company is terminated prior to the end of
    the Plan Year because of disability or death, the Management
    Development and Compensation Committee (1) shall prorate
    the Bonus Payout related to the Financial Performance Goals, and
    (2) in its discretion, may prorate the Bonus Payout related
    to Individual Performance Goals. If the Participant is on a
    leave of absence for a portion of the Plan Year, the Management
    Development and Compensation Committee in its discretion may
    reduce the Participant’s Bonus Payout on a pro-rata basis.

	 
	 	    • 
	
    The proration is based on the number of full months during which
    the Participant participated in the Plan during the Plan Year.
    Credit is given for a full month if the Participant is eligible
    for 15 or more calendar days during that month.

    

    2

 

 

			
	 	    • 
	
    If a Participant changes positions within the Company during the
    Plan Year, the Management Development and Compensation Committee
    in its discretion may prorate the Participant’s Bonus
    Payout by the number of months in each position.

 

    ADMINISTRATION

 

    MANAGEMENT
    DEVELOPMENT AND COMPENSATION COMMITTEE
    RESPONSIBILITIES:

 

			
	 	    • 
	
    Approve the Plan design, Financial Performance Goals, and
    Individual Performance Goals for each Participant. Determine and
    certify the achievement of the Financial Performance Goals and
    Individual Performance Goals. Approve the Bonus Payout
    calculation and Bonus Payout for each Participant.

	 
	 	    • 
	
    In the event of a dispute regarding the Plan, the Participant
    may seek resolution through the CEO and the Management
    Development and Compensation Committee. All determinations by
    the Management Development and Compensation Committee shall be
    final and conclusive.

 

    BONUS
    PAYOUT ADMINISTRATION

 

			
	 	    • 
	
    The Bonus Payout will be made as soon as administratively
    feasible and is expected to be within approximately seventy-five
    (75) days after the end of the Plan Year. No amount is due
    and owing to any Participant before the Management Development
    and Compensation Committee has determined the Bonus Payout.

	 
	 	    • 
	
    The Company will withhold amounts applicable to federal, state
    and local taxes, domestic or foreign, required by law or
    regulation.

 

    CLAWBACK
    POLICY

 

			
	 	    • 
	
    All incentive compensation paid or awarded under the Plan on or
    after September 8, 2010 is subject to the terms and
    conditions of the Company’s Policy for Recoupment of
    Incentive Compensation (the “Clawback Policy”),
    as such policy may be amended from time to time.

 

    TERMINATION
    OF EMPLOYMENT

 

			
	 	    • 
	
    The Plan is not a contract of employment for any period of time.
    Any Participant may resign or be terminated at any time for any
    or no reason. Employment and termination of employment are
    governed by the Company’s policies and any applicable
    employment agreement and not by the Plan.

 

    REVISIONS
    TO THE PLAN

 

			
	 	    • 
	
    The Plan will be reviewed by the CFO, CEO and the Management
    Development and Compensation Committee on a periodic basis for
    revisions. The Company reserves the right at its discretion with
    or without notice, to review, change, amend or cancel the Plan,
    at any time.

    

    3

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