Document:

Exhibit 10.1

 

Aspen Technology, Inc.

 

Executive Annual Incentive Bonus Plan

 

FY13

 

For

 

“NAME”

 

I.          Purpose

 

The purpose of Aspen Technology’s (“Company”) Executive Annual Incentive Plan (the “Plan”) is to motivate and reward performance that results in the achievement of key Company objectives.  The Plan was adopted by the Compensation Committee of the Company’s Board of Directors in July 2012 and amended by the Compensation Committee of the Company’s Board of Directors in October 2012.

 

II.        Effective Date of Plan

 

The Plan will operate on a fiscal year basis (“Plan Year”), and is effective from July 1, 2012 through June 30, 2013.

 

III.       Eligibility

 

Eligibility is afforded to those employees:

 

A.    whose positions are determined by Aspen Technology to have significant impact on the operating results of the Company; and

B.    who have been employed by the Company for six months or more (pro-rated target awards for employment greater than six months and less than twelve months).

 

In FY13, the eligible positions include:

 

·      CEO

·      EVP, Field Operations

·      EVP & CFO

·      EVP, Products

·      SVP, Marketing

·      SVP, HR

·      SVP, Corporate Strategy

·      SVP & General Counsel

 

Eligibility for the Plan does not guarantee payment of an award.  Payment is dependent upon performance.  Further, eligibility does not guarantee continuation of employment.  If employment ends prior to the end of the performance period any payment eligibility is subject to the Executive Retention 

 

Revised October 2012

 

1

 

Agreement then in force. Should an Executive voluntarily resign after the completion of the performance period, he is eligible to receive the earned bonus in accordance with the Plan.

 

IV.       Target Award

 

The Plan is based on the “Target Award” concept, which bases the award on the Company’s overall performance.  In order to achieve the Target Award amount, the Company must achieve 100% of its pre-established objectives by the end of the Plan Year. The actual award paid to the participant, if any, for a given Plan Year will be based on the Company’s overall performance, as adjusted for the overall level of bonus pool funding.

 

The Target Award for each position is the incentive award as defined when 100% of all Plan objectives are met and the Company attains the necessary level of performance to fund the bonus pool at 100%.

 

V.        Components of Award

 

“Company Metric Performance” for Plan purposes is based on the accomplishment of one or more predetermined annual Company financial objectives, which will be selected each year based on their critical importance to the Company’s success.  Company Metric Performance for fiscal year 2013 will be measured based on the achievement of the FY13 Growth in Total License Contract Value “TLCV” and Cash Flow from Operations.

 

The following summarizes the weighting for the various incentive components for FY13.

 

	
FY13 Plan Components
    	
 
    	
Overall Bonus
   Weighting
    	
 
    	
On Target Metric
    	
 
    
	
Growth in TLCV
    	
 
    	
50
    	
%
    	
$
    	
TBD
    	
 
    
	
Cash Flow from   Operations
    	
 
    	
50
    	
%
    	
$
    	
TBD
    	
 
    

 

Company Metric Performance (Growth in TLCV & Cash Flow)

 

The achievement level will then correspond to a bonus plan funding/weighting percentage by individual metric according to the following table:

 

	
Actual Performance
   Achieved by Metric
    	
 
    	
Funding Level of Metric
   Based on Performance
    	
 
    
	
< 70% of Target
    	
 
    	
0%
    	
 
    
	
70% of Target
    	
 
    	
50%
    	
 
    
	
80% of Target
    	
 
    	
70%
    	
 
    
	
90% of Target
    	
 
    	
90%
    	
 
    
	
100% of Target
    	
 
    	
100%
    	
 
    

 

This Plan is capped at 100% funding.

 

The funding is based on a minimum achievement of 70% of the on target metric.  At 70% achievement, the plan funds at 50% target and will increase at a 2:1 ratio until 90% achievement.  Achievement between 90% and 100% will fund at a 1:1 ratio.  Each metric is measured and funded independently.

 

2

 

VI.       Plan Funding Allocation and Achievement

 

For fiscal year 2013, Plan funding will be based on the attainment of specified levels of Growth in Total License Contract Value and Cash Flow from Operations.  Funding is contingent upon and proportional to the Company’s attainment of required levels (minimum 70% performance).  In FY13, there is the potential for a mid-year payment as well as a final year-end payment.  The mid-year payment is based on mid-year performance against the mid-year targets and will not exceed 25% of the annual bonus target.  The year-end payment is based on total annual performance against the annual performance targets less any payment received at mid-year.

 

The allocation of target bonus by metric/measurement for each measurement period is as follows:

 

	
Measurement
    	
 
    	
% of Annual Bonus
    	
 
    
	
Growth in TLCV
    	
 
    	
50
    	
%
    
	
Cash Flow
    	
 
    	
50
    	
%
    

 

Should the mid-year bonus earned be less than the target of 25% of bonus potential, the unrealized difference (up to the 25% mid-year potential) can be made up at year-end based on annual achievement against annual goals.

 

VII.     Bonus Calculation

 

A.    Bonus calculation takes into account three components:

 

·      Growth in TLCV and corresponding funding percentage (Section V);

·      Cash Flow from Operations and corresponding funding percentage (Section V); and

·      Target Bonus ($) level (as defined in Appendix A).

 

B.    The bonus will be measured on a first half performance at mid-year and on an annual performance level at year end.

 

First Half (H1) Calculation (Maximum payout of 25% of annual bonus target)

 

Growth in TLCV

 

	
Annual Bonus Target
    	
X
    	
Metric Weighting 50%
    	
X
    	
Maximum Payout 25%
    	
X
    	
Mid –Year Funding Achievement %
    	
=
    	
H1 Growth in TLCV Bonus Payout
    

 

Cash Flow from Operations

 

	
Annual Bonus Target
    	
X
    	
Metric Weighting 50%
    	
X
    	
Maximum Payout 25%
    	
X
    	
Mid -Year Funding Achievement %
    	
=
    	
H1 Cash Flow Bonus Payout
    

 

Total H1 Bonus

 

	
H1   Growth in TLCV Bonus Payout
    	
 
    	
+
    	
 
    	
H1 Cash Flow Bonus Payout
    	
=
    	
Total H1 Bonus Payout
    

 

3

 

End of Year (YE) Calculation

 

Growth in TLCV

 

	
Annual Bonus Target
    	
X
    	
Metric Weighting 50%
    	
-
    	
H1 Earned
    	
X
    	
Funding Achievement %
    	
=
    	
YE Growth in TLCV Earned Bonus
    

 

Cash Flow from Operations

 

	
Annual Bonus Target
    	
X
    	
Metric Weighting 50%
    	
-
    	
H1 Earned
    	
X
    	
Funding Achievement %
    	
=
    	
YE Cash Flow Earned Bonus
    

 

YE Bonus Funding

 

	
Growth   in TLCV Earned
    	
+
    	
YE Cash Flow Earned
    	
=   Total YE Bonus   Payout
    

 

Illustration

 

The following illustrations demonstrate sample calculations for determining potential bonus payments using an annual bonus potential of $100,000.

 

H1 Bonus Calculation

 

	
Category
    	
 
    	
Metric
   Weighting
    	
 
    	
Annual
   Bonus
   Target
    	
 
    	
Maximum
   Payout %
    	
 
    	
H1 Target
   Award
    	
 
    	
Mid-Year
   Funding
   Achievement
   %
    	
 
    	
H1
   Bonus
   Payout
    	
 
    
	
Growth   in TLCV
    	
 
    	
50
    	
%
    	
$
    	
100,000
    	
 
    	
25
    	
%
    	
$
    	
12,500
    	
 
    	
90
    	
%
    	
$
    	
11,250
    	
 
    
	
Cash   Flow
    	
 
    	
50
    	
%
    	
$
    	
100,000
    	
 
    	
25
    	
%
    	
$
    	
12,500
    	
 
    	
70
    	
%
    	
$
    	
8,750
    	
 
    
	
H1   Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
20,000
    	
 
    

 

End of Year Calculation

 

	
Category
    	
 
    	
Metric
   Weighting
    	
 
    	
Annual
   Bonus
   Target
    	
 
    	
Annual
   Bonus
   Target
   Award
    	
 
    	
End of Year
   (YE) Bonus
   Target (minus
   H1 Bonus
   Payout)
    	
 
    	
Funding
   Achievement
   %
    	
 
    	
YE
   Bonus
   Payout
    	
 
    
	
Growth   in TLCV
    	
 
    	
50
    	
%
    	
$
    	
100,000
    	
 
    	
$
    	
50,000
    	
 
    	
$
    	
38,750
    	
 
    	
80
    	
%
    	
$
    	
31,000
    	
 
    
	
Cash   Flow
    	
 
    	
50
    	
%
    	
$
    	
100,000
    	
 
    	
$
    	
50,000
    	
 
    	
$
    	
41,250
    	
 
    	
100
    	
%
    	
$
    	
41,250
    	
 
    
	
 H2   Total 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
72,250
    	
 
    
	
H1 Total 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
20,000
    	
 
    
	
Full Year Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
92,250
    	
 
    
	
% of Annual Bonus Target
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
92.25
    	
%
    

 

Note: All Actual Plan awards will be adjusted up/down based on Company bonus pool funding levels.

 

4

 

VIII.    Discretionary Variation

 

In addition to awards based on the performance metrics established herein and notwithstanding any limitations including caps set forth elsewhere herein, the Compensation Committee of the Board of Directors may make discretionary awards to eligible employees in such amounts as the Committee determines are appropriate and in the best interests of the Company.

 

In addition, the CEO (in the case of his direct reports) and the Compensation Committee (in the case of the CEO) may reduce any award otherwise payable hereunder by up to 10 percent in his or its discretion to any of said direct reports or to the CEO, as the case may be.

 

IX.       Administration

 

Administration of this Plan will be the responsibility of the CEO or the Compensation Committee of the Board of Directors. Any interpretation of the terms, conditions, goals, or payments from this Plan required because of a dispute will be made solely by the CEO or the Compensation Committee of the Board of Directors after a full review of the facts, input from the affected parties, and with appreciation of the overall intent of the Plan and previous practices.

 

If any term or condition of this Plan is found to be in non-conformance with a given state or federal law (USA) or local legislation (International locations), that term or condition will be non-enforceable but will not negate other terms and conditions of the Plan.  However, Aspen Technology, Inc., will review and modify the overall Plan to conform to such law.

 

Eligibility and participation in this Plan in no way implies or reflects any guarantee or contract of employment, except as may be stipulated by applicable local law.  Aspen Technology, Inc. reserves the right to amend, modify, or terminate this Plan and the procedures set forth herein at any time.  Any change to the terms of the Plan will be made in writing by SVP of Human Resources to all Participants in as far in advance as possible of the effective date of such change, and will be subject to acceptance by the Participant.

 

5Exhibit 10.1

 

SENIOR HOUSING PROPERTIES TRUST

 

RESTRICTED SHARE AGREEMENT

 

This Restricted Share Agreement (this “Agreement”) is made as of «DATE», «YEAR», between «NAME» (the “Recipient”) and Senior Housing Properties Trust (the “Company”).

 

In consideration of the mutual promises and covenants contained in this Agreement, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                      Grant of Shares.  Subject to the terms and conditions hereinafter set forth and the terms and conditions of the Senior Housing Properties Trust 2012 Equity Compensation Plan, as it may be amended from time to time (the “Plan”), the Company hereby grants to the Recipient, effective as of the date of this Agreement, «SNH» of its common shares of beneficial interest, par value $.01 per share.  The shares so granted are hereinafter referred to as the “Shares,” which term shall also include any shares of the Company issued to the Recipient by virtue of his or her ownership of the Shares, by share dividend, share split, recapitalization or otherwise.

 

2.                                      Vesting; Repurchase of Shares.

 

(a)                                 The Shares shall vest one-fifth as of the date hereof and a further one-fifth on «DATE» of each of the next four calendar years commencing on «DATE», «YEAR».  Any Shares not vested as of any date are herein referred to as “Unvested Shares.”

 

(b)                                 At the option of the Company, in the event the Recipient ceases to render significant services, whether as an employee or otherwise, to (i) the Company, (ii) the entity which is the manager or shared services provider to the Company or an entity controlled by, under common control with or controlling such entity (collectively, the “Manager”), or (iii) an affiliate of the Company (which shall be deemed for such purpose to include any other entity to which the Manager is the manager or shared services provider), all or any portion of the Unvested Shares shall be forfeited by the Recipient as of the date the Recipient ceases to render such services.  The Company may exercise such option by delivering or mailing to the Recipient (or his or her estate), at any time after the Recipient has ceased to render such services, a written notice of exercise of such option.  Such notice shall specify the number of Unvested Shares to be forfeited.

 

3.                                      Legends.  Share certificates, if any, evidencing the Shares shall prominently bear legends in substantially the following terms:

 

“THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  SUCH SHARES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SHARES UNDER THE ACT OR AN OPINION OF THE TRUST’S COUNSEL THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT.

 

 

THE SHARES EVIDENCED BY THIS CERTIFICATE WERE ISSUED PURSUANT TO AN EQUITY COMPENSATION PLAN MAINTAINED BY THE TRUST.  THESE SHARES MAY BE SUBJECT TO TRANSFER AND/OR VESTING RESTRICTIONS, AND UNVESTED SHARES ARE SUBJECT TO REPURCHASE RIGHTS AND FORFEITURE CONDITIONS CONTAINED IN THE PLAN, THE RELATED GRANT OF SHARES OR AN AGREEMENT BETWEEN THE TRUST AND THE INITIAL HOLDER OF THESE SHARES.  A COPY OF APPLICABLE RESTRICTIONS, REPURCHASE RIGHTS AND FORFEITURE CONDITIONS WILL BE FURNISHED TO THE HOLDER OF THIS CERTIFICATE WITHOUT CHARGE UPON REQUEST TO THE SECRETARY OF THE TRUST.”

 

In the event that the Shares are not evidenced by share certificates, the share books and records of the Company shall contain a notation in substantially the following terms:

 

“THE SHARES COVERED BY THIS STATEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  SUCH SHARES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SHARES UNDER THE ACT OR AN OPINION OF THE TRUST’S COUNSEL THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT.

 

THE SHARES COVERED BY THIS STATEMENT WERE ISSUED PURSUANT TO AN EQUITY COMPENSATION PLAN MAINTAINED BY THE TRUST.  THESE SHARES MAY BE SUBJECT TO TRANSFER AND/OR VESTING RESTRICTIONS, AND UNVESTED SHARES ARE SUBJECT TO REPURCHASE RIGHTS AND FORFEITURE CONDITIONS CONTAINED IN THE PLAN, THE RELATED GRANT OF SHARES OR AN AGREEMENT BETWEEN THE TRUST AND THE INITIAL HOLDER OF THESE SHARES.  A COPY OF APPLICABLE RESTRICTIONS, REPURCHASE RIGHTS AND FORFEITURE CONDITIONS WILL BE FURNISHED TO THE HOLDER OF THE SHARES COVERED BY THIS STATEMENT WITHOUT CHARGE UPON REQUEST TO THE SECRETARY OF THE TRUST.”

 

Certificates evidencing Shares and Shares not evidenced by certificates shall also bear or contain, as applicable, legends and notations as may be required by the Plan or the Company’s declaration of trust, any applicable supplement thereto or bylaws, each as in effect from time to time, or as the Company may otherwise determine appropriate.

 

4.                                      Tax Withholding.  To the extent required by law, the Company shall withhold or cause to be withheld income and other taxes incurred by the Recipient by reason of a grant of Shares, and the Recipient agrees that he or she shall upon request of the Company pay to the Company an amount sufficient to satisfy its tax withholding obligations from time to time (including as Shares become vested) as the Company may request.

 

2

 

5.                                      Miscellaneous.

 

(a)                                 Amendments.  Neither this Agreement nor any provision hereof may be changed or modified except by an agreement in writing executed by the Recipient and the Company; provided, however, that any change or modification that does not adversely affect the rights hereunder of the Recipient, as they may exist immediately prior to the effective date of such change or modification, may be adopted by the Company without an agreement in writing executed by the Recipient, and the Company shall give the Recipient written notice of such change or modification reasonably promptly following the adoption of such change or modification.

 

(b)                                 Binding Effect of the Agreement.  This Agreement shall inure to the benefit of, and be binding upon , the Company, the Recipient and their respective estates, heirs, executors, transferees, successors, assigns and legal representatives.

 

(c)                                  Provisions Separable.  In the event that any of the terms of this Agreement shall be or become or is declared to be illegal or unenforceable by any court or other authority of competent jurisdiction, such terms shall be null and void and shall be deemed deleted from this Agreement, and all the remaining terms of this Agreement shall remain in full force and effect.

 

(d)                                 Notices.  Any notice in connection with this Agreement shall be deemed to have been properly delivered if it is in writing and is delivered by hand or by facsimile or sent by registered certified mail, postage prepaid, to the party addressed as follows, unless another address has been substituted by notice so given:

 

	
To the Recipient:
    	
 
    	
To the Recipient’s   address as set forth on the signature page hereof.
    
	
 
    	
 
    	
 
    
	
To the Company:
    	
 
    	
Senior Housing   Properties Trust
    
	
 
    	
 
    	
Two Newton Place
    
	
 
    	
 
    	
255 Washington Street
    
	
 
    	
 
    	
Newton, MA 02458
    
	
 
    	
 
    	
Attn: Secretary
    

 

(e)                                  Construction.  The headings and subheadings of this Agreement have been inserted for convenience only, and shall not affect the construction of the provisions hereof.  All references to sections of this Agreement shall be deemed to refer as well to all subsections which form a part of such section.

 

(f)                                   Employment Agreement.  This Agreement shall not be construed as an agreement by the Company, the Manager or any affiliate of the Company or the Manager to employ the Recipient, nor is the Company, the Manager or any affiliate of the Company or the Manager obligated to continue employing the Recipient by reason of this Agreement or the grant of Shares to the Recipient hereunder.

 

(g)                                  Applicable Law.  This Agreement shall be construed and enforced in accordance with the laws of The Commonwealth of Massachusetts.

 

3

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement, or caused this Agreement to be executed under seal, as of the date first above written.

 

 

	
 
    	
SENIOR HOUSING   PROPERTIES TRUST
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
RECIPIENT:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
«NAME»
    
	
 
    	
«ADDRESS»
    
	
 
    	
«CITY», «ST» «ZIP»

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