Document:

Form of Change of Control Agreement

 Exhibit 10.1 
  
 [Mailing Date] 
  
 [Exec Name] 
  
 Dear [Exec Name]: 
  
 We are
pleased to inform you that the Company’s Board of Directors has approved a special severance benefit program for you. The purpose of this letter agreement is to set forth the terms and conditions of your severance benefits. 
  
 Your severance package will become payable should your employment terminate
under certain circumstances following a substantial change in ownership or control of the Company. To understand the full scope of your benefits, you should familiarize yourself with the definitional provisions of Part One of this letter agreement.
The benefits comprising your severance package are detailed in Parts Two and Three. Part Four deals with ancillary matters affecting your severance arrangement. 
  

PART ONE – DEFINITIONS 
  
 For purposes of this letter agreement, the following definitions will be in effect: 
  
 Base Salary means the annual rate of base salary in effect for you immediately prior to the Change in Control or (if
greater) the annual rate of base salary in effect at the time of your Involuntary Termination. 
  
 Board means the Company’s Board of Directors. 
  
 Change in Control means a change in the ownership or control of the Company effected through any of the following transactions: 
  
 (i) a merger or consolidation approved by the Company’s stockholders in which securities possessing
more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities are transferred to a person or persons different from the persons holding those securities immediately prior to such transaction;

  
 (ii) any stockholder-approved sale, transfer
or other disposition of all or substantially all of the Company’s assets in complete liquidation or dissolution of the Company; 
  
 (iii) the acquisition, directly or indirectly, by any person or related group of persons (other than the Company or a person that directly

 or indirectly controls, is controlled by or is under common control with, the Company) of beneficial
ownership (within the meaning of Rule 13d-3 of the Securities Exchange Act of 1934, as amended) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities pursuant to a
tender or exchange offer made directly to the Company’s stockholders; or 
  
 (iv) a change in the composition of the Board over a period of thirty-six (36) consecutive months or less such that a majority of the Board members ceases, by reason of one or more contested elections for Board
membership, to be comprised of individuals who either (A) have been Board members continuously since the beginning of such period or (B) have been elected or nominated for election as Board members during such period by at least a majority of the
Board members described in clause (A) who were still in office at the time the Board approved such election or nomination. 
  
 Code means the Internal Revenue Code of 1986, as amended. 
  

Common Stock means the Company’s common stock. 
  
 Company means Portal Software, Inc., a Delaware corporation, or any successor corporation, whether or not resulting from a Change in Control.

  
 Disability means your inability to perform the normal
and usual duties of your position with the Company by reason of any physical or medical impairment which is expected to result in death or continue for a period of twelve (12) consecutive months or more. 
  
 Fair Market Value means, with respect to the shares of Common Stock
subject to any of your Options, the closing selling price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq National Market and published in The Wall
Street Journal. If there is no closing selling price reported for the Common Stock on the date in question, then the Fair Market Value will be the closing selling price on the last preceding date for which such report exists. 
  
 Health Care Coverage means the continued coverage to which you and
your eligible dependents may become entitled under the Company’s health care plans pursuant to the severance benefit provisions of Part Two of this letter agreement. 
  
 Involuntary Termination means (i) the involuntary termination of your employment with the Company other than a
Termination for Cause or (ii) your voluntary resignation within one hundred eighty days (180) days (A) following both (x) a material reduction in your duties and responsibilities or the level of management to which you
report in the acquiror (for example if the Employee was the CFO of the Company previously reported to the CEO of the Company and now reports to the CFO of the acquiror, the employee would have experienced a reduction in level of management to which
he reports; also if the employee was a 
  

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 Section 16 reporting officer of the Company and is not deemed to be a Section 16 reporting officer of the acquiror, a
material reduction will have been deemed to have taken place) AND (y) a 120 day period following the change of control, (B) following a reduction in your level of compensation (including Base Salary, fringe benefits and target bonus under any
corporate-performance based bonus or incentive programs) by more than fifteen percent (15%) or (C) following a relocation of your principal place of employment by more than fifty (50) miles. 
  
 An Involuntary Termination will not be deemed to occur in the event your
employment terminates by reason of your death or Disability or a Termination for Cause. 
  
 Option means any outstanding option you hold under the Plan at the time of the Change in Control or upon your subsequent Involuntary Termination. Your Options will be divided into two (2) separate categories as
follows: 
  
 Acquisition-Accelerated
Options: any outstanding Option (or installment thereof) which automatically accelerates, pursuant to the acceleration provisions of the agreement evidencing that Option, upon a Change in Control. 
  
 Severance-Accelerated Options: any outstanding Option
(or installment thereof) which, pursuant to Part Two of this letter agreement, accelerates upon an Involuntary Termination. 
  
 Option Parachute Payment means, with respect to any Acquisition-Accelerated Option or any Severance-Accelerated Option, the portion of that Option
deemed to be a parachute payment under Code Section 280G and the Treasury Regulations issued thereunder. The portion of such Option which is categorized as an Option Parachute Payment will be calculated in accordance with the valuation provisions
established under Code Section 280G and the applicable Treasury Regulations and will include an appropriate dollar adjustment to reflect the lapse of your obligation to remain in the Company’s employ as a condition to the vesting of the
accelerated installment. In no event, however, will the Option Parachute Payment attributable to any Acquisition-Accelerated Option or Severance-Accelerated Option (or accelerated installment) exceed the spread (the excess of the Fair Market Value
of the accelerated option shares over the option exercise price payable for those shares) existing at the time of acceleration. 
  
 Other Parachute Payment means any payment in the nature of compensation (other than the benefits to which you become entitled under Part Two of
this letter agreement) which is made to you in connection with the Change in Control and which accordingly qualifies as parachute payments within the meaning of Code Section 280G(b)(2) and the Treasury Regulations issued thereunder. Your Other
Parachute Payment will include (without limitation) the Present Value, measured as of the Change in Control, of the aggregate Option Parachute Payment attributable to your Acquisition-Accelerated Options (if any). 
  
 Parachute Payment means any payment or benefit provided you under Part
Two of this letter agreement (other than the Option Parachute Payment attributable to your Severance-Accelerated Options) which is deemed to constitute a parachute payment within the meaning of Code Section 280G(b)(2) and the Treasury Regulations
issued thereunder. 
  

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 Plan means (i) the Company’s 1999 Stock Incentive Plan, as amended or restated from time to
time, (ii) the Company’s 2000 Supplemental Stock Option Plan and (iii) any successor stock incentive plan subsequently implemented by the Company. 
  
 Present Value means the value, determined as of the date of the Change in Control, of any payment in the nature of compensation to which you become
entitled in connection with the Change in Control or your subsequent Involuntary Termination, including (without limitation) the Option Parachute Payment attributable to your Severance-Acceleration Options, the additional benefits to which you
become entitled under Part Two of this letter agreement and the Option Parachute Payment attributable to your Acquisition-Accelerated Options. The Present Value of each such payment will be determined in accordance with the provisions of Code
Section 280G(d)(4), utilizing a discount rate equal to one hundred twenty percent (120%) of the applicable Federal rate in effect at the time of such determination, compounded semi-annually to the effective date of the Change in Control. 

 
 Target Bonus means the target bonus (as a percentage of base salary
) in effect for you under the Company’s annual cash incentive bonus program immediately prior to the Change in Control or (if greater) the target bonus in effect for you at the time of your Involuntary Termination. 
  
 Termination for Cause means the Company’s termination of your
employment for any of the following reasons: (i) your commission of any act of fraud, embezzlement or dishonesty, (ii) your unauthorized use or disclosure of any confidential information or trade secrets of the Company, (iii) any intentional
misconduct by you which has a materially adverse effect upon the Company’s business or reputation, (iv) your continued failure to perform the major duties, functions and responsibilities of your position after written notice from the Company
identifying the deficiencies in your performance and a reasonable cure period of not less than thirty (30) days or (v) a material breach of your fiduciary duties as an officer of the Company. 
  
 PART TWO — CHANGE IN CONTROL BENEFITS 
  
 Should your employment with the Company terminate by reason of an Involuntary
Termination within twelve (12) months after a Change in Control, then you will become entitled to receive the severance benefits provided under this Part Two, provided you execute and deliver to the Company, at the time of such Involuntary
Termination, a General Release in substantially the form of attached Exhibit A. However, your benefits under this Part Two will be in lieu of all other severance benefits to which you might otherwise be entitled upon such termination of your
employment. 
  

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 1. Accelerated Vesting. 
  
 Each outstanding Option which you hold at the time of your Involuntary Termination, to the extent not otherwise exercisable
for all the shares of Common Stock subject to that Option, will immediately vest and become exercisable for all those option shares and may be exercised for any or all of those shares as fully vested shares. Each such accelerated Option granted
prior to the date of this letter agreement will remain exercisable until the earlier of (i) the expiration of the option term or (ii) the end of the three (3)-month period following the date of your Involuntary Termination, and each such
accelerated Option granted after the date of this letter agreement will remain exercisable until the earlier of (x) the expiration of the option term or (y) the end of the twelve (12)-month period following the date of your Involuntary
Termination. Any Options not exercised prior to the expiration of the applicable post-service exercise period will lapse and cease to remain exercisable. 
  
 2. Severance Payment. 
  
 You will receive a severance payment from the Company in an amount equal to three (3) times the sum of your annual rate of Base Salary and Target Bonus,
subject to all applicable withholding taxes. The severance payment shall be paid to you in one lump sum payment, payable no later than the date your Involuntary Termination within twelve (12) months after the occurrence of a Change in Control.

  
 3. Health Care Coverage. 
  
 The Company will, at its expense, provide you and your eligible dependents
with continued health care coverage under the Company’s medical/dental plan in effect on the date of the occurrence of a Change in Control until the earlier of (i) the expiration of the thirty-six (36) month period measured from the
first day of the first month following the effective date of your Involuntary Termination or (ii) the first date that you are covered under another employer’s health benefit program which provides substantially the same level of benefits
without exclusion for pre-existing medical conditions. Such Health Care Coverage will be in lieu of any other continued health care coverage to which you or your dependents would otherwise be entitled at your own cost under Code Section 4980B by
reason of your termination of employment. 
  
 PART THREE –
EFFECT OF CODE SECTION 280G 
  
 1. Excise Tax.

  
 If any payment or distribution by the Company to you or for
your benefit, whether pursuant to the terms of this Agreement or otherwise (a “Payment”), constitutes a parachute payment within the meaning of Code Section 280G(b)(2) and is subject to the excise tax imposed by Section 4999 of the Code or
any interest or penalties are incurred by you with respect to such excise tax (such excise tax, together with any such interest and penalties are hereinafter collectively referred to as the “Excise Tax”), the Company will make an
additional payment (a “Gross-Up Payment”) to you in an amount such that, after payment by you of all taxes (including, any interest or penalties imposed with respect to such taxes) including, without limitation, any 
  

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 federal, state or local income and employment taxes and the Excise Tax imposed upon the Gross-Up Payment, you will retain
an amount of the Gross-Up Payment equal to the Excise Tax imposed on the Payment. 
  
 2. Determination of Gross Up Payment. 
  
 Subject to the provisions of Paragraph 3 below, all determinations under this Part Three, including whether a Gross-Up Payment is required and the amount of the Gross-Up Payment, will be made by a certified public
accounting firm immediately before the Change in Control occurs (the “Accounting Firm”), which shall provide detailed supporting calculations to both you and the Company within 15 business days after the Change in Control (or any other
change in ownership or effective control that triggers application of the Excise Tax). All fees and expenses of the Accounting Firm will be borne solely by the Company. The initial Gross-Up Payment determined pursuant to this Paragraph 2 will be
paid to you by the Company within five days after it receives the Accounting Firm’s determination. If the Accounting Firm determines that no Excise Tax is payable by you, it will furnish you with a written opinion that failure to report the
Excise Tax on your applicable federal tax return will not result in the imposition of a negligence or similar penalty. Any determination by the Accounting Firm will be binding on both you and the Company. Notwithstanding the foregoing, as a result
of uncertainty in applying Section 4999 of the Code, it is possible that the Company will not have made Gross-Up Payments that it should have made hereunder (an “Underpayment”). If the Company exhausts its remedies pursuant to Paragraph 3
hereof and you are thereafter required to pay any Excise Tax, the Accounting Firm will determine the amount of the Underpayment, inform you and the Company in writing of the Underpayment, and, within five days of receiving such written report, the
Company will pay the amount of such Underpayment to you or for your benefit. 
  
 3. Notice and Payment of Excise Tax. 
  
 You must notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. You must give such notification as soon as
practicable but not later than ten business days after you are informed in writing of such claim and the notification must apprise the Company of the nature of such claim and the date on which such claim is required to be paid. You agree to not pay
such claim before the expiration of 30 days following the date on which you give such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such is due). If the Company notifies you in writing
before the expiration of such 30-day period that it desires to contest such claim, you must (1) give the Company any information reasonably requested by the Company relating to such claim, and (2) take such action in connection with contesting such
claim as the Company reasonably requests in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company; provided, however, that the Company will directly
pay all costs and expenses (including additional interest and penalties) incurred in connection with such contest and will indemnify and hold you harmless, on an after-tax basis, for any tax, including interest and penalties, imposed as a result of
such representation and payment of costs and expenses. The Company will control all proceedings in connection with such contest and may, at its sole option, either direct you to pay the tax claimed and sue for a refund or to contest 
  

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 the claim in any permissible manner, and you agree to prosecute such contest to a determination before any appropriate
administrative tribunal or court, as the Company may determine; provided, that if the Company directs you to pay such claim and sue for a refund, the Company will advance to you the amount of such payment, on an interest-free basis, and will
indemnify and hold you harmless, on an after-tax basis, from any tax, including interest or penalties, imposed with respect to such advance. The Company’s control of the contest will be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder, and you will be entitled to settle or contest any other issue. 
  
 4. Refund of Excise Tax. 
  
 If, after you receive an advance by the Company pursuant to Paragraph 3 hereof, you become entitled to receive a refund claimed pursuant to such Paragraph 3, you will (subject to the Company’s complying with the requirements of such
Paragraph 3) promptly pay to the Company the amount of such refund (together with any interest thereon, after taxes applicable thereto). If, after you receive an amount advanced by the Company pursuant to Paragraph 3 hereof, a determination is made
that you will not be entitled to any refund claimed pursuant to such Paragraph 3, and the Company does not notify you in writing of its intent to contest such denial of refund before the expiration of 30 days after such determination, you will not
be required to repay such advance, and the amount of such advance shall offset, to the extent thereof, the amount of the required Gross-Up Payment. 
  
 PART FOUR — MISCELLANEOUS 
  
 1. Amendment and Termination. 
  
 This letter agreement may only be amended by written instrument signed by you and an authorized officer of the Company. This letter agreement shall remain
in effect through [start date, 1 yr later] or any earlier termination of your employment with the Company. Provided you continue in the Company’s employ, this letter agreement shall automatically be renewed for successive one (1)-year terms,
beginning [1 day after date (this paragraph)] September 16, 2004, unless the Company provides you with written notice of termination of this letter agreement at least thirty (30) days prior to the start of any such one (1)-year renewal period. Once
a Change in Control occurs, this letter agreement may not be terminated at any time prior to the expiration of the twelve (12)-month period following the effective date of that Change of Control, and no subsequent termination of this letter
agreement shall adversely affect your right to receive any benefits to which you may have previously become entitled hereunder in connection with your Involuntary Termination following that Change in Control. 
  
 2. Termination for Cause. 
  
 Should your employment cease by reason of a Termination for Cause or should
you voluntarily resign under circumstances which would otherwise constitute grounds for a Termination for Cause, then the Company will only be required to pay you (i) any unpaid compensation earned for services previously rendered through the date
of such termination and (ii) any accrued but unpaid vacation benefits or sick days, and no benefits will be payable to you under Part Two of this letter agreement. 
  

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 3. Death. 
  
 Should you die before receipt of one or more salary continuation/target bonus payments to which you become entitled under
this letter agreement, then those payments will be made to the executors or administrators of your estate. Should you die before you exercise all your outstanding Options as accelerated hereunder, then such Options may be exercised, within twelve
(12) months after your death, by the executors or administrators of your estate or by persons to whom the Options are transferred pursuant to your will or in accordance with the laws of inheritance. In no event, however, may any such Option be
exercised after the specified expiration date of the option term. 
  
 4. Indemnification. 
  
 The
indemnification provisions for Officers and Directors under the Company By-Laws will (to the maximum extent permitted by law) be extended to you, during the period following your Involuntary Termination, with respect to any and all matters, events
or transactions occurring or effected during your period of employment with the Company. 
  
 5. Miscellaneous. 
  
 This letter agreement will be binding upon the Company, its successors and assigns (including, without limitation, the surviving entity in any Change in Control) and is to be construed and interpreted under the laws of the State of
California. If any provision of this letter agreement as applied to you or the Company or to any circumstance should be adjudged by a court of competent jurisdiction to be void or unenforceable for any reason, the invalidity of that provision will
in no way affect (to the maximum extent permissible by law) the application of such provision under circumstances different from those adjudicated by the court, the application of any other provision of this letter agreement, or the enforceability
or invalidity of this letter agreement as a whole. Should any provision of this letter agreement become or be deemed invalid, illegal or unenforceable in any jurisdiction by reason of the scope, extent or duration of its coverage, then such
provision will be deemed amended to the extent necessary to conform to applicable law so as to be valid and enforceable or, if such provision cannot be so amended without materially altering the intention of the parties, then such provision will be
stricken and the remainder of this letter agreement will continue in full force and effect. 
  
 6. General Creditor Status. 
  
 All cash payments to which you become entitled hereunder will be paid, when due, from the general assets of the Company, and no trust fund, escrow arrangement or other segregated account will be established as a
funding vehicle for such payment. Accordingly, your right (or the right of the personal representatives or beneficiaries of your estate) to receive such cash payments hereunder will at all times be that of a general creditor of the Company and will
have no priority over the claims of other general creditors. 
  

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 7. At Will Employment. 
  
 Nothing in this letter agreement is intended to provide you with any right to continue in the employ of the Company (or any
subsidiary) for any period of specific duration or interfere with or otherwise restrict in any way your rights or the rights of the Company (or any subsidiary), which rights are hereby expressly reserved by each, to terminate your employment at any
time and for any reason . 
  
 8. Legal Fees and
Expenses. 
  
 The Company will pay all legal fees and
expenses (including but not limited to reasonable attorneys’ fees) which you may incur as a result of the Company’s contesting the validity, enforceability or your interpretation of, or determinations under, this letter agreement or the
Company’s failure to perform its obligations under this letter agreement. 
  
 9. Entire Agreement. 
  
 With respect to the subject matter hereto, this letter agreement supersedes and replaces all previous severance or change in control contracts and agreements, and constitutes the entire agreement between you and the Company. No oral
statements or prior written material, unless specifically incorporated herein, shall be of any force and effect. 
  
 Please indicate your agreement with the foregoing terms and conditions of your change in control severance package by signing the Acceptance section of
the enclosed copy of this letter and returning it to the Company. 
  

			
	Very truly yours,
	
	PORTAL SOFTWARE, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

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 ACCEPTANCE 
  

I hereby agree to all the terms and provisions of the foregoing letter agreement governing the special benefits to which I may become entitled in the
event my employment should terminate under certain prescribed circumstances following a substantial change in control or ownership of the Company. 
  

			
	 Signature:
	 	  

	 Name:
	 	[Exec Name, Title]
	 Dated:
	 	  

  

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 EXHIBIT A 
  

GENERAL RELEASE 

 RELEASE AND WAIVER OF CLAIMS 
  
 In consideration of the severance payments and other benefits to which I have become entitled, pursuant to that certain
letter agreement between Portal Software, Inc., a Delaware corporation (the “Company”), and myself dated                 ,
         (the “Severance Agreement), in connection with the termination of my employment on this date, I,
                    , hereby furnish the Company with the following release and waiver (“Release and Waiver”). 
  
 I hereby release and forever discharge the Company, its officers, directors,
agents, employees, stockholders, successors, assigns and affiliates from any and all claims, liabilities, demands, causes of action, costs, expenses, attorney fees, damages, indemnities and obligations of every kind and nature, in law, equity or
otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed, arising from or relating to my employment with the Company and the termination of that employment, including (without limitation) claims of wrongful discharge,
emotional distress, defamation, fraud, breach of contract, breach of the covenant of good faith and fair dealing, discrimination claims based on sex, age, race, national origin, disability or any other basis under Title VII of the Civil Rights Act
of 1964, as amended, the California Fair Employment and Housing Act, the Federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”), the Americans with Disability Act, contract claims, tort claims, and wage or benefit
claims, including but not limited to, claims for salary, bonuses, commissions, stock grants, stock options, vacation pay, fringe benefits, severance pay or any other form of compensation (other than the payments and benefits to which I am entitled
under the Severance Agreement). 
  
 In releasing claims unknown to
me at present, I am waiving all rights and benefits under Section 1542 of the California Civil Code, and any law or legal principle of similar effect in any jurisdiction: “A general release does not extend to claims which the creditor does
not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.” 
  
 This Release and Waiver does not pertain to any claims which may subsequently arise in connection with the Company’s
default in any of its payment obligations under the Severance Agreement. 
  
 I acknowledge that, among other rights subject to his Release and Waiver, I am hereby waiving and releasing any rights I may have under ADEA, that this release and waiver is knowing and voluntary, and that the
consideration given for this release and waiver is in addition to anything of value to which I was already entitled as an executive of the Company. I further acknowledge that I have been advised, as required by the Older Workers Benefit Protection
Act, that: (a) the release and waiver granted herein does not relate to claims which may arise after this release and waiver is executed; (b) I have the right to consult with an attorney prior to executing this release and waiver (although I may
choose voluntarily not to do so); and if I am over 40 years old upon execution of this (c) I have twenty-one (21) days from the date of termination of my employment with the Company in which to consider this release and waiver (although I may

 choose voluntarily to execute this release and waiver earlier); (d) I have seven (7) days following the execution of this
release and waiver to revoke my consent to this release and waiver; and (e) this release and waiver shall not be effective until the seven (7)-day revocation period has expired. 
  

					
	 Date:
	 	  

	 	

	 	 	 	 	EXECUTIVEEX-10.1

Tractor Supply Company

Fiscal 2005

Chairman of the Board Bonus Plan

Purpose The Tractor Supply Company and its subsidiaries, hereinafter referred to as “the
Company”, Chairman of the Board Bonus Plan is established to provide a financial incentive and
reward for attaining the Company’s “Net Income” objectives.

Eligibility The plan established a participating employee group holding the position of Chairman
of the Board.

Except as provided below, participants in the plan shall only be entitled to bonuses to be paid
with respect to a fiscal year if they are employed by the Company on the determination date
(hereinafter defined) for such fiscal year. Participation for eligible associates in position for
less than a full calendar year will be on a pro-rata basis, which will only be computed on full
fiscal months of service. Participants who are not employed by the Company on such determination
date because of death, disability, retirement, or involuntary termination (other than for cause)
will be entitled to a payment equal to the on plan bonus amount with respect to such fiscal year on
a pro rata basis, which will only be computed on full fiscal months of service, if all other plan
conditions are met. Participation is limited to those individuals that are employed on or before
October 1st of any given year.

The Company reserves the right, subject to review by the Compensation Committee of the Board of
Directors, to withhold all or a portion of bonus payments when an individual’s performance rating
needs improvement or is below standard.

Calculation The Corporate Controller shall have the responsibility of calculating each bonus
payment. Percentages used in the calculation will not be rounded up or down. The process and
calculation will be reviewed by the Company’s independent public accountants or other independent
party selected by the Compensation Committee of the Board of Directors.

Determination date Bonus amounts shall be determined no later than March 15 following the
Company’s fiscal year end (the “Determination Date”). Bonus amounts shall be paid to the Chairman
of the Board employee group as soon as administratively practicable after the Determination Date.

Bonus amounts Bonus amounts awarded will be based on the percentage attainment of Net Income as
set forth below. The annual budget approved by the Company’s Board of Directors will be used to
determine the payout.

Bonus Opportunity The table below shows the payout percentage as it relates to achievement of
Company Level Net Income. Bonus percentage is calculated based upon the annual salary in effect on
the last day of the fiscal year.

Profit Plan Net income for this bonus plan will exclude the financial effect of all unusual,
infrequent or extraordinary items, all as defined in accordance with Generally Accepted Accounting
Principles.

Attainment of Profit Plan COB

Less than 90% 0

90% but less than 93% 14

93% but less than 95% 21

95% but less than 98% 27

98% but less than 100% 41

100% but less than 102% 56

102% but less than 104% 70

104% but less than 106% 76

106% but less than 108% 89

108% but less than 110% 102

110% 113

Right of discharge reserved Nothing in the plan shall confer upon any participant the right to
continue in the employment of the Company or affect any right that the Company may have to
terminate the employment of such participant.

Amendment or termination of the plan The Company, with the approval of the Compensation Committee
of the Board of Directors, reserves the right to discontinue or modify the plan at any time and for
any reason whatsoever, without prior notice and without further liability of the Company to the
participants.

Effective date The plan shall be effective for fiscal years commencing on and after

December 26, 2004.

Governing law The plan shall be governed by and construed in accordance with the internal laws of
the state of Delaware.

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