Document:

catc-ex1021_51.htm

                                                                                                                                    

Cambridge Bancorp

2018 Long-Term Incentive Plan Summary

 

EX: 10.21

 

Eligibility

The senior executives of the organization are eligible to participate in the long-term incentive plan.

LTIP Overview

The long-term incentive plan (“LTIP”) is based on a target long term incentive dollar value to be issued as 25% time-based restricted stock units (RSUs) and 75% performance-vested restricted stock units (RSUs) award.  The 25% time-based RSU will vest ratably over a period of three years. The 75% performance based RSUs will vest based on the Company’s 3-year performance against the predefined metrics.  If the performance metrics exceed target, additional RSUs will be awarded.  If the performance metrics are not satisfied at target, some or all of the RSUs will be lost.  If the performance metrics are satisfied at target, no further adjustment will be made to the RSUs. 

The RSU award will be made promptly after the Compensation Committee approves the LTIP opportunity ranges and performance metrics applicable for the current year’s LTIP program.

Determination of LTIP Target Opportunity

The initial LTIP target opportunity for the executives is determined based on a recommendation to the Compensation Committee by an independent executive compensation consultant.  Typically, the  LTIP target opportunity is communicated to each employee during the first quarter of the year.  For 2018, the targets have been expressed in dollar values as shown in the table below.

The RSUs will be issued under the Cambridge Bancorp 2017 Equity and Cash Incentive Plan.  The dollar value will be converted to RSUs by dividing the dollar value by the NASDAQ closing price of the stock on the date of issue as approved by the Board of Directors. Fractional unit shall be rounded up to the nearest whole unit. 

Time-Vested RSUs

Time-Vested Restricted Stock Units will vest ratably over a period of three years.  While unvested, these shares will have no voting rights nor be eligible to receive dividend payments.  Dividend payments will be accrued over the vesting period and paid when the shares become vested.  

Performance Based RSUs 

Performance-Based RSUs are designed to reward future performance and align management’s interests with those of shareholders through the achievement of predefined performance criteria.  The extent to which the threshold, target or stretch opportunities are achieved is measured over a 3-year performance period that begins as of January 1 of the year in which the RSUs are granted (the “Performance Period”).  The achievement of the performance criteria is  based on a combination of 3-year average return on assets (“ROA”) and 3-year average diluted earnings per share (“EPS”) growth.  Both measures will be based on Cambridge Bancorp’s performance in these metrics relative to a peer group index selected by the Compensation Committee in its discretion however, no later than the time the RSU award is issued.

Determination of Performance-Based RSU Payout 

 

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Cambridge Bancorp

2018 Long-Term Incentive Plan Summary

 

The final RSU payout will be determined following the end of the Performance Period based on Cambridge Bancorp’s actual performance of each of the performance metrics as compared to the peer group  index.  The size of the final RSU payout can range from loss of all of the RSUs (if the threshold target for neither performance measure is achieved) to 200% of the original RSU award, based upon actual performance for each metric.  RSUs will settle by delivery of the calculated number of shares of Cambridge Bancorp stock that corresponds to the final number of vested RSUs.  This determination is generally made by the Compensation Committee during the second quarter of the year following the end of the Performance Period.

The settlement of RSUs will result in compensation income and is subject to applicable tax reporting and withholding.  No cash dividends will be paid with respect to outstanding RSUs prior to vesting.

Except in the case of death or disability, if an employee terminates for any reason (other than “cause,” as defined in Restricted Stock Unit Agreement) after issuance but prior to the determination by the Compensation Committee of his or her final RSU payout, he or she shall be entitled to a pro-rated award, as described below.

Assuming no change in the value of the stock price, the value of the potential RSU payout ranges from 25% of target (threshold) to 200% of target (stretch).  Results in between the threshold and stretch goals will be interpolated.

					
	
Executive
	
Title
	
LTI Target Opportunity

	
Threshold
	
Target
	
Stretch

	
Denis  Sheahan
	
Chief Executive Officer
	
$187,500
	
750,000
	
$1,500,000

	
Mark D. Thompson
	
President
	
$112,500
	
$450,000
	
$900,000

	
Michael Carotenuto
	
Chief Financial Officer
	
$56,250
	
$225,000
	
$450,000

	
Jennifer Pline
	
EVP, Wealth Management
	
$56,250
	
$225,000
	
$450,000

	
Martin Millane
	
EVP, Chief Lending Officer
	
$56,250
	
$225,000
	
$450,000

	
Lynne Burrow
	
Chief Information Officer
	
$25,000
	
$100,000
	
$200,000

	
Jennifer Willis
	
SVP, Chief Marketing Officer
	
$25,000
	
$100,000
	
$200,000

	
John Sullivan
	
SVP, Director of Consumer Lending
	
$25,000
	
$100,000
	
$200,000

	
TBD
	
SVP, Director of Private Banking Offices
	
$25,000
	
$100,000
	
$200,000

	
Pilar Pueyo
	
SVP, Director of Human Resources
	
$25,000
	
$100,000
	
$200,000

^ If threshold goals are not satisfied, no LTIP opportunity is available and all RSUs will be forfeited. If only the threshold goals are satisfied, the final RSU payout will be 25% of target (e.g. 25% x $100,000 =$25,000).

 

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Cambridge Bancorp

2018 Long-Term Incentive Plan Summary

 

^^ If the stretch goal is satisfied, the final RSU payout will be 200% of target (e.g. 200% x 100,000 = $200,000..  In no event will the final RSU payout exceed 200% of the target percentage.

Performance Metrics

The table below summarizes the measure and payout ranges for the LTIP program.  Performance falling in between the ranges will be calculated based on interpolation.

Performance is measured relative to a peer group index, which will be defined in the Restricted Stock Unit Agreement, but generally consists of public banks located in the Northeast with assets between $500M and $5B.

Each of the 2 performance measures – the 3-year average ROA and the 3-year average diluted EPS growth – will be equally weighted, so that each will account for 50% of the performance used to determine payout.  In addition, the threshold level of performance must be met on at least one metric in order to receive any payout.

Note:  The final number of vested RSUs is calculated on the basis of each individual metric, and then averaged to calculate the final payout.  Any resulting fractional share that would be issued on settlement of a vested RSU will be round up to the nearest whole share.

				
	
 
	
Threshold
	
Target
	
Stretch

	
Relative 3-year average ROA and 3-year average diluted EPS growth
	
25th percentile
	
50th percentile
	
90th percentile

	
Payout
	
25% of award
	
100% of award
	
200% of award

 

Termination of Employment During Performance Period

Except as provided below, if a participant’s employment is terminated prior to the end of the Performance Period related to an RSU award, the RSU award will be forfeited.

Special rule in the case of death or disability:  If an employee terminates employment as a result of death or disability during the Performance Period, his or her RSU award will be deemed to have satisfied the performance metrics at target.  The RSU award will immediately vest and settle in shares of Cambridge Bancorp stock.  If death occurs following the end of the Performance Period but before final settlement of the RSU, the employee’s estate will be entitled to any applicable payout.

Effective with respect to RSUs issued and outstanding on or after January 1, 2015:  In the event an employee terminates for any reason other than “cause” (or death or disability), he or she will remain entitled to a pro-rata portion of the target RSU award, based on full months of service during the Performance Period.  The balance of the RSUs shall be forfeited.  The remaining RSU award will remain subject to the satisfaction of the applicable performance criteria.  To the extent the performance criteria are satisfied, a final number of RSUs will vest and be paid out based on the application of the performance criteria to the employee’s pro-rated RSU award.

 

 

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Cambridge Bancorp

2018 Long-Term Incentive Plan Summary

 

Change in Control

In the event of a Change in Control (as defined in the Restricted Stock Unit Agreement) prior to the end of the Performance Period, the number of RSUs that shall be deemed vested (in no event greater than 200% of target) shall be determined by the Committee in its discretion.  If any RSU award is deemed vested by the Committee, the award shall be immediately settled in shares of Cambridge Bancorp stock upon the closing of the Change in Control transaction.

Illustration 1:  Achievement of Performance Metrics at Target

Executive: Executive ABase Salary: $225,000Target LTI: $100,000

Target LTIP Opportunity: $100,000 ($30,000*100%)

Assumed Stock Price: $80.00

Initial RSU Award (rounded up to the nearest share): 1,250 shares ($1000,000/$80.00)

Assuming that each of the 3-year average ROA and 3-year average diluted EPS growth were at the 50th percentile (target) and using the table above, the RSU payout is 100% of the target award.  Therefore, the 1,250 RSUs will vest and settle by delivery of 1,250 shares (1,250 RSUs x 100% payout) of Cambridge Bancorp stock.

Conclusion:  The total number of RSUs received as a result of meeting the performance metrics was 1,250.  Assuming no stock price movement, the total value of this award is $100,000, which reflects 100% of the initial LTIP opportunity (adjusted for rounding).  Assuming that the price of our stock had instead appreciated to $85.00/share, the total value of this award is $106,250, which reflects 100% of the initial LTIP opportunity of $100,000 (adjusted for rounding) plus stock price appreciation.

Illustration 2:  Achievement of Performance Metrics at Threshold

Executive: Executive BBase Salary: $2250,000Target LTI: $100,000

Target LTIP Opportunity: $100,000 ($30,000*100%)

Assumed Stock Price: $80.00

Initial RSU Award (rounded up to the nearest share): 1,250 RSUs ($100,000/$80.00)

Assuming that each of the 3-year average ROA and 3-year average diluted EPS growth were at the 25th percentile (threshold) and using the table above, the RSU payout is 25% of the target award.  Therefore, 313 RSUs (rounded up from 312.5) will vest and settle by delivery of 313 shares (1,250 RSUs x 25% payout) of Cambridge Bancorp stock.

Conclusion:  The total number of RSUs received as a result of meeting the threshold performance metrics was 313.  Assuming that the price of our stock had appreciated to $85.00/share, the total value of this award is $26,605, which reflects 25% of the initial LTIP opportunity of $25,000 plus stock price appreciation.

Illustration 3:  Achievement of Performance Metrics at Target; Termination after 27 Months

Executive: Executive CBase Salary: $225,000Target LTI: $$100,000

Target LTIP Opportunity: $100,000 

Assumed Stock Price: $80.00

Initial RSU Award (rounded up to the nearest share): 1,250 shares

Partial Forfeiture for Termination:  As applied to the initial $1,250 RSU award, 27 months of completed service divided by 36 month performance period results in an adjusted RSU award of 75% of the 

 

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Cambridge Bancorp

2018 Long-Term Incentive Plan Summary

 

original (27/36); the balance of the initial RSU award (25%) is forfeited.  Therefore, this former employee remains the holder of 937.5  (rounded to 938) RSUs.

Assuming that each of the 3-year average ROA and 3-year average diluted EPS growth were at the 50th percentile (target) and using the table above, the RSU payout is 100% of the adjusted RSU award.  Therefore, 938 RSUs will vest and settle by delivery of 938 shares (938 RSUs x 100% payout) of Cambridge Bancorp stock.

Conclusion:  100% of the initial RSUs are available as a result of meeting the target performance metrics.  But due to the employee’s termination, he or she is eligible for only 75% of the initial RSU award (1,250 RSUs x 75%).  Assuming no movement in our stock price, the total value of this award is $75,040 (938 RSUs x $80/share), even though the employee has terminated employment.

 

5Exhibit

	
					
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	AMENDED AND RESTATED
	 
	 

	 
	 
	ENERGY TRANSFER PARTNERS, L.L.C.
	 
	 

	 
	 
	ANNUAL BONUS PLAN
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

AMENDED AND RESTATED
ENERGY TRANSFER PARTNERS, L.L.C.
ANNUAL BONUS PLAN
		
	1.
	Purpose. The purpose of this Plan is to motivate management and the employees who perform services for the Partnership and/or its affiliates and subsidiaries to earn annual cash awards through the achievement of performance and target goals.

		
	2.
	Definitions. As used in this Plan, the following terms shall have the meanings herein specified:

		
	2.1
	Actual Results means the dollar amount of Adjusted EBITDA, Distributable Cash Flow, Departmental Budget or other applicable financial measure specified for the Budget Target(s) for a Plan Year actually achieved for such Plan Year as determined by the Partnership following the end of such Plan Year.

		
	2.2
	Adjusted EBITDA means earnings before interest, taxes, depreciation and amortization adjusted for non-cash compensation and extraordinary costs, including but not limited to transactional costs.

		
	2.3
	Annual Bonus means the cash bonus paid to an Eligible Employee for the Plan Year.

		
	2.4
	Annual Target Bonus means, for an Eligible Employee, a percentage of such Eligible Employee’s Eligible Earnings, and shall be dependent on a number of factors which may include but are not limited to an employee’s position title, job responsibilities, and reporting level within the Company. The Company may, but is not required to, specify a specific range for an Eligible Employee at any time prior to or during a Plan Year; provided that any such range may be adjusted from time to time or at any time in the Company’s sole discretion, including for the applicable Plan Year.

		
	2.5
	Annual Target Bonus Pool means, for a Plan Year, the Target Bonus of the Eligible Employees of the Company for that Plan Year.

		
	2.6
	Board means the Board of Directors of the Company.

		
	2.7
	Bonus Pool Payout Factor means the multiplier factor applied to the Annual Target Bonus Pool to determine the Funded Bonus Pool for the applicable Plan Year. The payout is determined by the comparison of the Budget Target(s) for the Plan Year to Actual Results.  General guidelines for the Budget Target and the Bonus Pool Payout Factor associated with such Budget Target for a Plan Year are set forth below, but each are subject to the sole discretion of the Compensation Committee.  The Bonus Pool Payout Factor for purposes of the Plan shall be adjusted each Plan Year based on the specific allocation of Annual Target Bonus Pools to each of the specified Budget Target(s). Such allocations of each Budget Target to the total Annual Bonus Pool shall be determined on an annual basis by the Compensation Committee.  For 2018, the Adjusted EBITDA Budget Target shall comprise 60% of the total Annual Target Bonus Pool, the Distributable Cash Flow Budget Target shall comprise 20% of the total Annual Target Bonus Pool and the Departmental Budget Target shall comprise the remaining 20% of the total Annual Target Bonus Pool.   While the Funded Bonus Pool will reflect an aggregation of performance under each Bonus Pool Payout Factor the performance of Adjusted EBITDA Budget Target shall drive calculation of the Bonus Pool, as no other targets shall be considered unless the Adjusted EBITDA Target results is at least 80% of its Budget Target.

Adjusted EBITDA Performance Target Payout Factor Guidelines
	
		
	% of Budget Target
	Bonus Pool Payout Factor

	>=110.0
	1.20x

	109.9 – 105.0
	1.10x

	104.9 – 95.0
	1.00x

	94.9 – 90.0
	.90x

	89.9 – 80.0
	.75x

	< 80.0
	.0x

       
Distributable Cash Flow Performance Target Payout Factor Guidelines
	
		
	% of Budget Target
	Bonus Pool Payout Factor

	>=110.0
	1.20x

	109.9 – 105.0
	1.10x

	104.9 – 95.0
	1.00x

	94.9 – 90.0
	.90x

	89.9 – 80.0
	.75x

	< 80.0
	.0x

  Departmental Budget Target Payout Factor Guidelines
	
		
	% of Budget Target
	Bonus Pool Payout Factor

	0.0-100.9
	1.00x

	101.0-105.9
	.90x

	106.0 – 110.9
	.70x

	111.0-114.9
	.50x

	>115
	.0x

		
	2.8
	Budget Target means the specific dollar amount of Adjusted EBITDA, Distributable Cash Flow, total Departmental Budget and/or other financial measure(s) established by the Compensation Committee for the Company for a Plan Year.

		
	2.9
	Company means Energy Transfer Partners, L.L.C., a Delaware limited liability company. The term “Company” shall include any successor to Energy Transfer 

Partners, L.L.C., any subsidiary or affiliate thereof that has adopted the Plan, or any entity succeeding to the business of Energy Transfer Partners, L.L.C., or any subsidiary or affiliate, by merger, consolidation, liquidation, or purchase of assets or equity, or similar transaction.
		
	2.10
	Compensation Committee means the Compensation Committee of the Company’s Board.

		
	2.11
	Departmental Budget means the specific dollar amount of general and administrative expenses (i.e. operating budget) or operating and maintenance expenses set for each department of Partnership and its subsidiaries.  In the case where a department head oversees multiple departments the Departmental Budget shall be the total aggregate budget for all of his/her departments.

		
	2.12
	Distributable Cash Flow means net income, adjusted for certain non-cash items, less maintenance capital expenditures.

		
	2.13
	Eligible Earnings means the aggregate regular earnings plus overtime earnings, if any, received by an Eligible Employee during the Plan Year.  For the avoidance of doubt, neither distribution payments or distribution equivalent payments on any Partnership restricted or common units nor any other bonus or sign-on payments received by an Eligible Employee during  the Plan Year shall be included in the calculation of Eligible Earnings for an Eligible Employee.

		
	2.14
	Eligible Employee has the meaning set forth in Section 4 below.

		
	2.15
	Funded Bonus Pool means the Annual Target Bonus Pool for a Plan Year multiplied by the applicable Bonus Pool Payout Factor for such Plan Year. The establishment and amount of a Funded Bonus Pool is 100% discretionary and subject to the final approval of and/or adjustment by the Compensation Committee.

		
	2.16
	Operational Safety Standards means the safety standards, training and requirements set forth on Exhibit A hereto, which operations based Eligible Employees are required to comply.

		
	2.17
	Partnership means Energy Transfer Partners L.P., a Delaware master limited partnership.

		
	2.18
	Person means an individual, corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity.

		
	2.19
	Plan means the Company’s Annual Bonus Plan as set forth herein, as the same may be amended from time to time.

		
	2.20
	Plan Year means the performance (calendar) year for the measurement and determination of the Budget Target and the calculation of Actual Results.  Unless otherwise determined by the Compensation Committee, each Plan Year shall be the one year period commencing on January 1 and ending on December 31 of the calendar year. 

		
	3.
	Plan Guidelines and Administration. The administration of the Plan and any potential Annual Bonus awarded pursuant to the Plan are subject to the sole determination and discretion of the Compensation Committee. The Compensation Committee will review the Partnership’s performance results for the designated Plan Year, the Budget Target and Bonus Pool Payout 

Factor for each Plan Year and thereafter will determine, in consultation with the Company’s Chief Executive Officer and the Company’s Chief Human Resources Officer, whether or not and to what extent to approve the Funded Bonus Pool under the Plan.
The Compensation Committee may delegate the responsibility for the administration and operation of the Plan to the Chief Executive Officer of the Company or his/her designee(s). The Compensation Committee or the person(s) to which administrative authority has been delegated (the Committee or such person referred to as the “Plan Administrator”) shall have the authority to interpret and construe any and all provisions of the Plan, including the establishment for any designated Plan Year or from time to time any Budget Targets, Budget Target guidelines, Bonus Pool Payout Factors and/or such other economic or performance factors as the Plan Administrator shall determine and whether and to what extent any such targets, guidelines or factors has been achieved. Any determination made by the Plan Administrator shall be final and conclusive and binding on all persons. 
		
	4.
	Eligible Employees. Subject to the discretion of the Compensation Committee and such other criteria as may be established by the Compensation Committee in general or for a particular Plan Year, all regular full-time employees providing services to the Partnership and its subsidiaries are eligible to participate in the Annual Target Bonus Pool for a Plan Year. No Eligible Employee shall be entitled to receive an Annual Bonus for a Plan Year unless he or she is actively employed by the Company (or one of its Affiliates) on the date the Annual Bonus for such Plan Year is paid by the Company even if such payment date is after the Plan Year.  

Notwithstanding the foregoing if an Eligible Employee becomes fully disabled, in the sole discretion of the Partnership, or dies after the completion of a Plan Year but prior to the payment of the Annual Bonus, such Eligible Employee or his/her estate, as applicable shall be eligible to receive such Eligible Employee’s Annual Bonus. Additionally, in a situation where an Eligible Employee is displaced as a result of a transaction and such transaction closes on or after December 31 of the Plan Year but prior to payment of the Annual Bonus, such Eligible Employee will be able to receive a bonus award even though he/she is not employed on the date of payment of the Annual Bonus. 
Employees of Sunoco LP and its subsidiaries and USA Compression Partners, LP and its subsidiaries shall participate in the Sunoco GP LLC Annual Bonus Plan and the USA Compression Partners, LP Annual Cash Incentive Plan, respectively and shall not be eligible to participate under this Plan.  
		
	5.
	Annual Bonus Payments for Eligible Employees.  As soon as reasonably practicable following the end of the Plan Year, management of the Company will determine the Annual Target Bonus for each Eligible Employee. The Funded Bonus Pool from which Annual Bonuses are paid to Eligible Employees shall equal (a) the aggregate of the Annual Target Bonuses of all Eligible Employees multiplied by (b) the Bonus Pool Payout Factor for such Plan Year, as determined by the Compensation Committee after review of the performance results for the Plan year.  The amount of the Annual Bonus for an Eligible Employee from the Funded Bonus Pool shall be determined in management’s sole discretion and shall be based on a number of factors including an employee’s performance, length of employment and such other factors as may be determined by management in its sole discretion, which factors may not be the same fall all Eligible Employees. Notwithstanding the foregoing, the Compensation Committee shall make determination of the Annual Bonus of all of the Company’s named executive officers and such other executive officers as may be determined from time to time. 

In addition, operations based Eligible Employees shall be evaluated against the Operational Safety Standards set forth on Exhibit A and any deviation or failure to meet such Operational 

Safety Standards may result in a reduction of such Eligible Employee’s Annual Bonus Pool of up to 25%.
In no event, shall the aggregate amount of the Annual Bonus payments for the Plan Year exceed, in total, the Funded Bonus Pool for such Plan Year Notwithstanding any provision herein, funds allocated under this Plan for distribution to Eligible Employees is 100% discretionary. 
		
	6.
	Amendment and Termination. The Compensation Committee, at its sole discretion, may, without prior notice to or consent of any Eligible Employees, amend the Plan or terminate the Plan at any time and at all times.

		
	7.
	Indemnification. Neither the Company, any participating Affiliate, nor the Board, or the Compensation Committee, of the Company or any participating affiliate, nor any officer or employee of the Company or any participating affiliate shall be liable for any act, omission, interpretation, construction or determination made in connection with the Plan in good faith; and the members of the Company’s Board, the Compensation Committee and/or management of the Company shall be entitled to indemnification and reimbursement by the Company to the maximum extent permitted by law in respect of any claim, loss, damage or expense (including counsel’s fees) arising from their acts, omission and conduct in their official capacity with respect to the Plan.

		
	8.
	General provisions.

		
	8.1
	Non-Guarantee of Employment or Participation in the Plan. Nothing contained in this Plan shall be construed as a contract of employment between the Company, the Partnership and/or any of its affiliates and any employee of the Company or any of its affiliates, and nothing in this Plan shall confer upon any employee, including an Eligible Employee, any right to continued employment with the Company and/or its affiliate, or interfere with the right of the Company, the Partnership  and/or its affiliate to terminate the employment, with or without cause, of an employee, including an Eligible Employee.  Nothing in this Plan shall give any employee any right to participate in the Plan and/or to receive an Annual Bonus with respect to any Plan Year.

		
	8.2
	Interests Not Transferable. No right, interest or benefit under the Plan shall be subject in any manner to alienation, sale, transfer, assignment, pledge, attachment or other legal process, or encumbrance of any kind, and any attempt to do so shall be void.

		
	8.3
	Controlling Law. To the extent not superseded by federal law, the law of the State of Texas, without regard to the conflicts of laws provisions thereunder, shall be controlling in all matters relating to the Plan.

		
	8.4
	Severability. If any Plan provision or any Annual Bonus award hereunder is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any person or award, or would disqualify the Plan or any award under the law deemed applicable by the Compensation Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Compensation Committee, materially altering the intent of the Plan or the award, such provision shall be stricken as to such jurisdiction, person or award and the remainder of the Plan and any such award shall remain in full force and effect.

		
	8.5
	No Trust or Fund Created. Neither the Plan nor any award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company and its Affiliates and an employee, including an Eligible Employee or any other person. The Plan shall constitute an unfunded mechanism for the Company to pay bonus compensation to participants from its general assets.  No participant shall have any security or other interest in the assets of the Company.

		
	8.6
	Headings. Headings are given to the sections of the Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision of it.

		
	8.7
	Tax Withholding. The Company and/or any participating Affiliate may deduct from any payment otherwise due under this Plan to a Participant (or beneficiary) amounts required by law to be withheld for purposes of federal, state or local taxes.  

		
	8.8
	Off-set.  The Company reserves the right to withhold any or all portions of an award or to reduce an award to a participant up to an amount equal to any amount the participant owes to the Company or any of its Affiliates.

		
	8.9
	Effective Date.  This Plan was effective for the Plan Year commencing on January 1, 2014 and was amended and restated effective for the Plan year commencing on January 1, 2018.

EXHIBIT A
OPERATIONAL SAFETY STANDARDS
		
	1.
	Satisfactory completion of all required safety training and instruction

		
	2.
	Attendance at all required safety meetings

		
	3.
	Avoidance of preventable vehicle incidents

		
	4.
	Management discretion of overall compliance and understanding of safety standards and requirements for operation

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