Document:

Exhibit
10.1

AMENDMENT
TO EMPLOYMENT AGREEMENT

This Amendment to Employment Agreement (this “Amendment”),
dated as of  August 1, 2006, is entered
into by and among by and between Vistula Communications Services, Inc., a
Delaware corporation (the “Company”), and J. Keith Markley (the “Employee”) and
constitutes an amendment to that certain Employment Agreement dated as of April
11, 2006 (the “Employment Agreement”).

WHEREAS, the Employee currently serves as Chief
Executive Officer and as a director of the Company;

 WHEREAS, the
Company and the Employee have jointly determined that in the best interests of
the Company, the Employee should resign from his position as Chief Executive
Officer of the Company and become the President of Vistula USA, Inc, the Company’s
wholly owned Delaware subsidiary (the “Transition”), in order for the Employee
to focus on business development and related operational matters in the United
States for the Company and its subsidiaries (the “Vistula Group”);

WHEREAS, the Company and the Employee wish to amend
the Employment Agreement to reflect the change in the Employee’s role within
the Vistula Group; and

WHEREAS, in addition, the Company and the Employee
have agreed to certain matters in connection with the change in role of the Employee
as described herein;

NOW, THEREFORE,
in consideration of the premises and the mutual covenants contained herein, the
receipt and sufficiency of which are hereby acknowledged, and in accordance
with Section 14(d) of the Employment Agreement, the parties hereto agree as
follows:

1.             Resignation.  The Employee hereby resigns as Chief
Executive Officer of the Company effective as of the date hereof.

2.             Amendment
of Employment Agreement

       2.1           Section
3 of the Employment Agreement is hereby deleted and replaced with the
following:

“3. Position and Duties.  During the
Employment Period, the Employee shall serve as the President of Vistula USA,
Inc., the Company’s wholly owned subsidiary (“Vistula US”), responsible for
leading business development efforts for the Company and its subsidiaries
(collectively, the “Vistula Group”) in the United States and managing
operations of the business of the Vistula Group in the United States, and shall
faithfully perform all duties and responsibilities consistent with his position
as President of Vistula US and the duties and responsibilities relating to the
business or operations of the Vistula Group in the United States consistent
with his position as a senior executive officer of the Vistula Group as the
Company’s Board of Directors (the “Board
of Directors”), any 

 1
 

 

committee thereof, the Chairman of the Board of
Directors or the Board of Directors of Vistula US may direct from time to
time.  Without limiting the generality of
the foregoing, it is anticipated that the Employee’s primary duties and
responsibilities shall be overseeing and directing the overall United States
business and operations of the Vistula Group, including assisting with
generating business plans, establishing corporate strategy in the United
States, pursuing and reviewing material commercial ventures and relationships
in the United States, steering the Company’s U.S. operations toward management
approved forecasts and budgets, and advising the Chief Executive Officer on
material business matters affecting the Vistula Group in the United
States.  In the performance of the
Employee’s duties and responsibilities hereunder, the Employee shall regularly
report to the Chief Executive Officer of the Company.  In addition, the Employee agrees to serve as
a director of the Company, and, subject to the fiduciary duties of its
directors, the Company agrees to use its best efforts to nominate and cause the
Employee to be elected as a director of the Company as soon as reasonably
possible on or after the date hereof. The foregoing sentence does not limit in
any way the ability of the Board of Directors, the Company or any of its
shareholders to remove and/or replace the Employee as a director of the Company
in accordance with applicable law and the by-laws of the Company.

The Employee will fulfill his duties and
responsibilities to the Vistula Group hereunder from his residence office
currently located in Campton, New Hampshire, or at such location in the
Northeastern United States as he reasonably determines.  Notwithstanding the foregoing, the Employee
agrees to travel as is otherwise necessary, in the reasonable determination of
the Chief Executive Officer of the Company, to fulfill his duties and
responsibilities as set forth in this Agreement.”

2.2           Section 6(d) of the Employment
Agreement is hereby deleted and replaced with the following:

“(d)         Indemnification.  The Employee, his heirs and his estate shall
be eligible for indemnification and advancement of expenses to the fullest
extent authorized under the Company’s and Vistula US’s by-laws and certificate
of incorporation and applicable law. 
During such time as the Employee shall serve as a officer or director of
the Company or Vistula US, the Company shall maintain a D&O insurance or similar
policy in form and coverage reasonably acceptable to the Board of Directors,
and the Employee shall receive the same benefits provided to any of the Company’s
officers and directors under such policy and any additional D&O insurance
or similar policy, indemnification agreement, Company policy or the certificate
of incorporation or bylaws of the Company or Vistula US.”

2.3           Section 7(a) of the Employment
Agreement is hereby amended by deleting clause (v) of the definition of “Cause”
set forth therein and replacing it with the following:

“(v) the
Employee’s repeated or ongoing failure to comply with the reasonable directions
and instructions of the Company’s Chief Executive Officer or Board of Directors
in connection with the performance of the Employee’s duties and
responsibilities hereunder 

 2
 

 

(provided,
however, in no event shall the Company’s financial performance or failure to
achieve projections in the absence of any of the expressly stated elements of “Cause”
in this Section 7(a) be considered Cause hereunder); provided, that if the
Company elects to terminate the employment of the Employee for “Cause” as
defined in this clause (v) prior to the occurrence of a Change of Control (as
defined in Section 7(d)), the Employee may elect by written notice to the
Company to instead voluntarily terminate his employment with the Company
pursuant to Section 7(d) and such termination shall instead be treated as a
termination without Cause under Section 7(c) provided, however,
that (A) references in Section 7(c) to “eighteen (18) months” shall be read as “twelve
(12) months,” (B) such termination shall not be treated as a termination
without Cause for the purposes of Section 5(b) or for the purposes of the
options described in Section 5(b) and the terms of such options shall be deemed
to be amended to the extent necessary to reflect this intent, and (C) the
Employee shall only be required to provide seven (7) days prior written notice
of such voluntary cessation of employment to the Company;....”

2.4           Section 7(d) of the Employment
Agreement is hereby deleted and replaced with the following:

“(d)         Termination by the
Employee.  The Employee’s employment
with the Company may be terminated by the Employee at any time with or without
Good Reason.  In the event of a
termination of the Employee’s employment with the Company by the Employee upon
his voluntary termination or resignation (other than a termination of
employment with the Company by the Employee for “Good Reason,” as defined
below) prior to the occurrence of any Change of Control at any time following
the date of this Agreement, such termination shall be treated as a termination
without Cause under Section 7(c); provided however, that references in Section
7(c) to “eighteen (18) months” shall be read as “twelve (12) months” and
provided, further, that such termination shall not be treated as a termination
without Cause for the purposes of Section 5(b). As used herein, a “Change in
Control” shall be deemed to have occurred if the Company (i) is merged into or
consolidated with another corporation, or is the subject of a sale of stock by
its stockholders, under circumstances in which the stockholders of the Company
immediately prior to such merger, consolidation or stock sale do not own
immediately after giving effect to such merger, consolidation or stock sale
shares of capital stock representing at least fifty percent (50%) of the voting
power of the Company or the surviving or resulting corporation, as the case may
be, or (ii) sells or otherwise disposes of all or substantially all of its
assets; provided, however, that no such merger, consolidation, stock sale or
disposition of assets shall constitute a Change of Control if such transactions
take place between or among (x) two or more subsidiaries of the Company only,
or (y) the Company and one or more of its subsidiaries only. The Employee
agrees to provide the Board of Directors with at least thirty (30) days’ prior
written notice of his voluntary cessation of employment hereunder, subject to
the Board of Directors’ right to waive, upon notice to the Employee, such
requirement and accelerate the effectiveness of the Employee’s voluntary
cessation of employment to an earlier time and date (but not earlier than the
date of the Employee’s giving of notice of his voluntary cessation of
employment to the Board of Directors), it being mutually understood and agreed
that the Company shall to continue to pay or furnish to the 

 3
 

 

Employee his
Base Compensation and benefits during the time of continued employment, if any,
following the Employee’s notice of his voluntary cessation of employment up
through the effective date of termination. 
A termination of the Employee’s employment with the Company by the
Employee for Good Reason shall be treated as a termination without Cause under
Section 7(c).  For purposes hereof, the
term “Good Reason” shall mean that (i) the Employee’s primary place of
employment is moved by the Board of Directors (not at the request of the
Employee) to a location greater than 50 miles from his current location
(without a corresponding permission from the Board of Directors allowing the
Employee to telecommute), provided, the Employee has delivered written notice
of termination in respect of this clause (i) within thirty (30) days following
the execution and delivery by the Company at the Board of Directors’ direction
of a lease or other binding agreement committing the Company to such
relocation, the terms of which were authorized and approved by the Board of
Directors (provided, if the Board of Directors notifies the Employee of the
Board of Directors’ decision to cancel its planned relocation, the Board of
Directors shall be deemed to have cured the event of “Good Reason” and the
Employee’s notice of resignation shall be deemed revoked, and the status quo
shall be maintained, unless the Employee has already accepted employment with
another employer); (ii) the Company has breached any material term of this
Agreement; (iii) a material reduction in the Employee’s duties and
responsibilities hereunder, (iv) a material demotion in the Employee’s position
at the Company, or (v) the Company has reduced the Employee’s Base Compensation
due hereunder; provided, however, that with respect to each of the conditions
described above in items (i), (ii), (iii), (iv) and (v), the Employee may not
establish “Good Reason” unless he has provided written notice to the Board of
Directors of the existence of such condition and the Company fails to cure such
condition within the 30-day period following receipt of such notice.”

2.5           Section 7 of the
Agreement is hereby amended to add the following additional subsections:

“(g)         Nonqualified
Deferred Compensation. 
Notwithstanding any other provision in this Agreement to the contrary,
the Company shall not distribute and/or pay to the Employee and the Employee
shall not receive and/or take distribution from the Company for a period of six
months and one day following the date of the Employee’s termination of
employment with the Company (the “First Distribution Date”) any amounts that
constitute “nonqualified deferred compensation,” within the meaning of Section
409A of the Internal Revenue Code of 1986, as amended, and the regulations
promulgated thereunder and/or pursuant thereto, to which the Employee is
otherwise entitled under the Agreement; provided, however, that on the Company’s
first regular payroll payment date following the First Distribution Date, the
Company shall distribute and deliver to the Employee all nonqualified deferred
compensation to which the Employee shall have been otherwise entitled pursuant
to the terms of this Agreement for all periods from the date of termination of
the Employee’s employment with the Company through and including the First
Distribution Date, and, thereafter, the Company shall distribute and deliver to
the Employee any additional nonqualified deferred 

 4
 

 

compensation to
which the Employee is entitled under this Agreement in accordance with the
schedule and terms set forth in this Agreement.

(h)           COBRA. The
parties hereto acknowledge and agree that the Company shall meet its
obligations under this Agreement with respect to COBRA by reimbursing the
Employee pursuant to the agreement to the extent the Employee elects to
establish COBRA coverage, within 30 days following receipt by the Company of
substantiating proof of the Employee’s payment of the applicable monthly COBRA
premium.”

3.             Option Waiver. 
The Employee agrees to waive his rights to exercise that portion of the
Employee’s option to purchase 948,000 shares of common stock of the Company
(the “Option”) which entitles the Employee to purchase 500,000 shares of common
stock of the Company.  This portion of
such Option will be cancelled by the Company. The Employee will retain the
right to purchase up to 448,000 shares of common stock of the Company (the “Remaining
Portion”) under this Option. The Remaining Portion shall vest in accordance
with the vesting terms described in the existing option agreement with respect
to the Option.  In order to formally
effect the waiver and cancellation described above, the Employee agrees to
promptly return his copy of all of his executed option agreement with respect
to the Option to the Company.  Following
surrender of such option agreements, the Company will promptly issue to the
Employee a new option agreement relating to the Remaining Portion.

4.             Waiver and Release.  The Employee hereby waives his right to
assert any legal claims against the Company, any subsidiary of the Company or
other affiliated company of the Company, and any of their stockholders,
directors, officers, managers, employees, agents and representatives with
respect to the Transition arising under the Employment Agreement or
otherwise.  Accordingly, the Employee
hereby releases and forever discharges the Company and any of its parents,
subsidiaries and affiliates, and any of their stockholders, directors,
officers, managers, employees, agents and representatives, and any of their
successors or assigns, from any and all claims, charges, complaints, lawsuits,
damages, contracts and causes of action in law or equity, of any nature whatsoever,
or any other actions in any court, administrative agency, arbitration forum, or
other legal tribunal or authority, by reason of any matter or thing relating
to, arising out of or connected with the Transition arising from the beginning
of time through the date of this Agreement. Notwithstanding anything to the
contrary set forth in the Employment Agreement, the Transition shall not
constitute “Good Reason” as defined in Section 7(d) of the Employment
Agreement.

5.             Employment Agreement in Full Force and Effect.
The Employment Agreement, as amended herein, is hereby ratified and confirmed
in all respects. Except as expressly set forth herein, this Amendment shall not
be deemed to be a waiver, amendment or modification of any provisions of the
Employment Agreement or of any right, power or remedy of the Company or the
Employee thereunder.  Except as set forth
herein, the Company and the Employee reserve all rights, remedies, powers, or
privileges available under the Employment Agreement, at law or otherwise.

 5
 

 

 

6.             Miscellaneous.

6.1           This Amendment may be executed in any
number of counterparts (including by facsimile), and by the different parties
hereto on the same or separate counterparts, each of which shall be deemed to
be an original instrument but all of which together shall constitute one and
the same agreement.  Each party agrees
that it will be bound by its own facsimile signature and that it accepts the
facsimile signature of each other party. 
The descriptive headings of the various sections of this Amendment are
inserted for convenience of reference only and shall not be deemed to affect
the meaning or construction of any of the provisions hereof or thereof.

6.2           This Amendment and the Employment
Agreement (as hereby amended) constitute the entire agreement and understanding
between the parties with respect to the subject matter hereof and may not be
contradicted by evidence of prior, contemporaneous or subsequent oral
agreements between the parties, and shall be binding upon and inure to the benefit
of the successors and assigns of the parties hereto and thereto.  There are no unwritten oral agreements
between the parties with respect to the subject matter hereof and thereof.

6.3           This Amendment and the rights and
obligations of the parties hereunder shall be governed by and construed and
interpreted in accordance with the choice of law provisions set forth in the
Employment Agreement.

[Remainder
of page intentionally left blank]

 6
 

 

 

IN
WITNESS WHEREOF, the undersigned have executed this Amendment as an instrument
under seal as of the date first written above.  

	
  

  	
  Vistula Communications Services, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Rupert Galliers-Pratt

  	
   

  
	
   

  	
  By: Rupert Galliers-Pratt

  	
   

  
	
   

  	
  Title: Chairman, and Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ J. Keith Markley

  	
   

  
	
   

  	
  J. Keith Markley

  	
   

  

 

 7Exhibit
10.13

COPART,
INC.

EXECUTIVE
BONUS PLAN

(Effective
October 28, 2005)

 

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
  SECTION 1 BACKGROUND, PURPOSE
  AND DURATION

  	
   

  	
  1

  	
   

  
	
  1.1

  	
   

  	
  Effective Date

  	
   

  	
  1

  	
   

  
	
  1.2

  	
   

  	
  Purpose of the Plan

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2 DEFINITIONS

  	
   

  	
  1

  	
   

  
	
  2.1

  	
   

  	
  “1934 Act”

  	
   

  	
  1

  	
   

  
	
  2.2

  	
   

  	
  “Actual Award”

  	
   

  	
  1

  	
   

  
	
  2.3

  	
   

  	
  “Affiliate”

  	
   

  	
  1

  	
   

  
	
  2.4

  	
   

  	
  “Base Salary”

  	
   

  	
  1

  	
   

  
	
  2.5

  	
   

  	
  “Board”

  	
   

  	
  1

  	
   

  
	
  2.6

  	
   

  	
  “Code”

  	
   

  	
  2

  	
   

  
	
  2.7

  	
   

  	
  “Committee”

  	
   

  	
  2

  	
   

  
	
  2.8

  	
   

  	
  “Company”

  	
   

  	
  2

  	
   

  
	
  2.9

  	
   

  	
  “Determination Date”

  	
   

  	
  2

  	
   

  
	
  2.10

  	
   

  	
  “Disability”

  	
   

  	
  2

  	
   

  
	
  2.11

  	
   

  	
  “Earnings Per Share”

  	
   

  	
  2

  	
   

  
	
  2.12

  	
   

  	
  “Employee”

  	
   

  	
  2

  	
   

  
	
  2.13

  	
   

  	
  “Fair Market Value”

  	
   

  	
  2

  	
   

  
	
  2.14

  	
   

  	
  “Fiscal Year”

  	
   

  	
  2

  	
   

  
	
  2.15

  	
   

  	
  “Maximum Award”

  	
   

  	
  2

  	
   

  
	
  2.16

  	
   

  	
  “Operating Cash Flow”

  	
   

  	
  2

  	
   

  
	
  2.17

  	
   

  	
  “Operating Income”

  	
   

  	
  2

  	
   

  
	
  2.18

  	
   

  	
  “Participant”

  	
   

  	
  3

  	
   

  
	
  2.19

  	
   

  	
  “Payout Formula”

  	
   

  	
  3

  	
   

  
	
  2.20

  	
   

  	
  “Performance Period”

  	
   

  	
  3

  	
   

  
	
  2.21

  	
   

  	
  “Performance Goals”

  	
   

  	
  3

  	
   

  
	
  2.22

  	
   

  	
  “Plan”

  	
   

  	
  3

  	
   

  
	
  2.23

  	
   

  	
  “Profit After-Tax”

  	
   

  	
  3

  	
   

  
	
  2.24

  	
   

  	
  “Profit Before-Tax”

  	
   

  	
  3

  	
   

  
	
  2.25

  	
   

  	
  “Retirement”

  	
   

  	
  3

  	
   

  
	
  2.26

  	
   

  	
  “Return on Assets”

  	
   

  	
  3

  	
   

  
	
  2.27

  	
   

  	
  “Return on Equity”

  	
   

  	
  3

  	
   

  
	
  2.28

  	
   

  	
  “Return on Sales”

  	
   

  	
  4

  	
   

  
	
  2.29

  	
   

  	
  “Revenue”

  	
   

  	
  4

  	
   

  
	
  2.30

  	
   

  	
  “Shares”

  	
   

  	
  4

  	
   

  
	
  2.31

  	
   

  	
  “Target Award”

  	
   

  	
  4

  	
   

  
	
  2.32

  	
   

  	
  “Termination of
  Employment”

  	
   

  	
  4

  	
   

  

 

 ii
 

 

 

	
  2.33

  	
   

  	
  “Total Shareholder
  Return”

  	
   

  	
  4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3 SELECTION OF
  PARTICIPANTS AND DETERMINATION OF AWARDS

  	
   

  	
  4

  	
   

  
	
  3.1

  	
   

  	
  Selection of
  Participants

  	
   

  	
  4

  	
   

  
	
  3.2

  	
   

  	
  Determination of
  Performance Goals

  	
   

  	
  4

  	
   

  
	
  3.3

  	
   

  	
  Determination of Target
  Awards

  	
   

  	
  4

  	
   

  
	
  3.4

  	
   

  	
  Determination of Payout
  Formula or Formulae

  	
   

  	
  4

  	
   

  
	
  3.5

  	
   

  	
  Date for Determinations

  	
   

  	
  5

  	
   

  
	
  3.6

  	
   

  	
  Determination of Actual
  Awards

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4 PAYMENT OF AWARDS

  	
   

  	
  5

  	
   

  
	
  4.1

  	
   

  	
  Right to Receive
  Payment

  	
   

  	
  5

  	
   

  
	
  4.2

  	
   

  	
  Timing of Payment

  	
   

  	
  5

  	
   

  
	
  4.3

  	
   

  	
  Form of Payment

  	
   

  	
  5

  	
   

  
	
  4.4

  	
   

  	
  Payment in the Event of
  Death

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5 ADMINISTRATION

  	
   

  	
  6

  	
   

  
	
  5.1

  	
   

  	
  Committee is the
  Administrator

  	
   

  	
  6

  	
   

  
	
  5.2

  	
   

  	
  Committee Authority

  	
   

  	
  6

  	
   

  
	
  5.3

  	
   

  	
  Decisions Binding

  	
   

  	
  6

  	
   

  
	
  5.4

  	
   

  	
  Delegation by the
  Committee

  	
   

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6 GENERAL PROVISIONS

  	
   

  	
  6

  	
   

  
	
  6.1

  	
   

  	
  Tax Withholding

  	
   

  	
  6

  	
   

  
	
  6.2

  	
   

  	
  No Effect on Employment

  	
   

  	
  6

  	
   

  
	
  6.3

  	
   

  	
  Participation

  	
   

  	
  7

  	
   

  
	
  6.4

  	
   

  	
  Indemnification

  	
   

  	
  7

  	
   

  
	
  6.5

  	
   

  	
  Successors

  	
   

  	
  7

  	
   

  
	
  6.6

  	
   

  	
  Beneficiary
  Designations

  	
   

  	
  7

  	
   

  
	
  6.7

  	
   

  	
  Nontransferability of
  Awards

  	
   

  	
  7

  	
   

  
	
  6.8

  	
   

  	
  Deferrals

  	
   

  	
  7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7 AMENDMENT,
  TERMINATION AND DURATION

  	
   

  	
  8

  	
   

  
	
  7.1

  	
   

  	
  Amendment, Suspension
  or Termination

  	
   

  	
  8

  	
   

  
	
  7.2

  	
   

  	
  Duration of the Plan

  	
   

  	
  8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8 LEGAL CONSTRUCTION

  	
   

  	
  8

  	
   

  
	
  8.1

  	
   

  	
  Gender and Number

  	
   

  	
  8

  	
   

  
	
  8.2

  	
   

  	
  Severability

  	
   

  	
  8

  	
   

  
	
  8.3

  	
   

  	
  Requirements of Law

  	
   

  	
  8

  	
   

  
	
  8.4

  	
   

  	
  Governing Law

  	
   

  	
  8

  	
   

  
	
  8.5

  	
   

  	
  Captions

  	
   

  	
  8

  	
   

  

 

 iii

 

COPART, INC.

EXECUTIVE BONUS PLAN

SECTION 1

BACKGROUND, PURPOSE AND DURATION

1.1  Effective Date.  The Plan is effective as of October 28, 2005,
subject to ratification by an affirmative vote of the holders of a majority of
the Shares that are present in person or by proxy and entitled to vote at the
2005 Annual Meeting of Stockholders of the Company.

1.2  Purpose of the Plan.  The Plan is intended to increase shareholder
value and the success of the Company by motivating key executives (1) to
perform to the best of their abilities, and (2) to achieve the Company’s
objectives. The Plan’s goals are to be achieved by providing such executives
with incentive awards based on the achievement of goals relating to the
performance of the Company. The Plan is intended to permit the grant of awards
that qualify as performance-based compensation under section 162(m) of the
Code.

SECTION 2

DEFINITIONS

The following
words and phrases shall have the following meanings unless a different meaning
is plainly required by the context:

2.1  “1934 Act” means the Securities
Exchange Act of 1934, as amended. Reference to a specific section of the 1934
Act or regulation thereunder shall include such section or regulation, any
valid regulation promulgated under such section, and any comparable provision
of any future legislation or regulation amending, supplementing or superseding
such section or regulation.

2.2  “Actual Award”means as to any
Performance Period, the actual award (if any) payable to a Participant for the
Performance Period. Each Actual Award is determined by the Payout Formula for
the Performance Period, subject to the Committee’s authority under Section 3.6
to eliminate or reduce the award otherwise determined by the Payout Formula.

2.3  “Affiliate”means any corporation or
other entity (including, but not limited to, partnerships and joint ventures)
controlled by the Company.

2.4  “Base Salary”means as to any
Performance Period, the Participant’s annualized salary rate on the last day of
the Performance Period. Such Base Salary shall be before both (a) deductions
for taxes or benefits, and (b) deferrals of compensation pursuant to
Company-sponsored plans.

2.5  “Board”means the Board of Directors of
the Company.

 

2.6  “Code” means the Internal Revenue Code
of 1986, as amended. Reference to a specific section of the Code or regulation
thereunder shall include such section or regulation, any valid regulation
promulgated thereunder, and any comparable provision of any future legislation
or regulation amending, supplementing or superseding such section or
regulation.

2.7  “Committee”means the committee
appointed by the Board (pursuant to Section 5.1) to administer the Plan.

2.8  “Company”means Copart, Inc., a
California corporation, or any successor thereto.

2.9  “Determination Date”means the latest
possible date that will not jeopardize a Target Award or Actual Award’s
qualification as performance-based compensation under section 162(m) of the
Code.

2.10  “Disability”means a permanent and
total disability determined in accordance with uniform and nondiscriminatory
standards adopted by the Committee from time to time.

2.11  “Earnings Per Share”means as to any
Performance Period, the Company’s or a business unit’s Profit After-Tax,
divided by a weighted average number of common shares outstanding and dilutive
common equivalent shares deemed outstanding, determined in accordance with
generally accepted accounting principles.

2.12  “Employee”means any employee of the
Company or of an Affiliate, whether such employee is so employed at the time
the Plan is adopted or becomes so employed subsequent to the adoption of the
Plan.

2.13  “Fair Market Value”means the closing
per share selling price for Shares, as quoted on the Nasdaq National Market for
the date in question.

2.14  “Fiscal Year”means the fiscal year of
the Company.

2.15  “Maximum Award”means as to any
Participant for any Performance Period, $2,000,000.

2.16  “Operating Cash Flow”means as to any
Performance Period, the Company’s or a business unit’s sum of Profit After-Tax
plus depreciation and amortization less capital expenditures plus changes in
working capital comprised of accounts receivable, inventories, other current
assets, trade accounts payable, accrued expenses, advance payments from
customers and long-term accrued expenses, determined in accordance with
generally acceptable accounting principles.

2.17  “Operating Income”means as to any
Performance Period, the Company’s or a business unit’s income from operations
but excluding any unusual items, determined in accordance with generally
accepted accounting principles.

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2.18  “Participant”means as to any
Performance Period, an Employee who has been selected by the Committee for
participation in the Plan for that Performance Period.

2.19  “Payout Formula”means as to any Performance
Period, the formula or payout matrix established by the Committee pursuant to
Section 3.4 in order to determine the Actual Awards (if any) to be paid to
Participants. The formula or matrix may differ from Participant to Participant.

2.20  “Performance Period”means any Fiscal
Year or such other period longer than a Fiscal Year but not in excess of three
Fiscal Years, as determined by the Committee in its sole discretion.

2.21  “Performance Goals”means the goal(s)
(or combined goal(s)) determined by the Committee (in its discretion) to be
applicable to a Participant for a Target Award for a Performance Period. As
determined by the Committee, the Performance Goals for any Target Award
applicable to a Participant may provide for a targeted level or levels of
achievement using one or more of the following measures: (a) Earnings per
Share, (b) Operating Cash Flow, (c) Operating Income, (d) Profit After-Tax, (e)
Profit Before-Tax, (f) Return on Assets, (g) Return on Equity, (h) Return on
Sales, (i)  Revenue, and (j) Total
Shareholder Return. The Performance Goals may differ from Participant to
Participant and from award to award. Prior to the Determination Date, the
Committee shall determine whether any significant element(s) shall be included
in or excluded from the calculation of any Performance Goal with respect to any
Participants.

2.22  “Plan”means the Copart, Inc. Executive
Bonus Plan, as set forth in this instrument and as hereafter amended from time
to time.

2.23  “Profit After-Tax”means as to any Performance
Period, the Company’s or a business unit’s income after taxes, determined in
accordance with generally accepted accounting principles.

2.24  “Profit Before-Tax”means as to any
Performance Period, the Company’s or a business unit’s income before taxes,
determined in accordance with generally accepted accounting principles.

2.25  “Retirement”means, with respect to any
Participant, a Termination of Employment after attaining at least age 65.

2.26  “Return on Assets”means as to any
Performance Period, the percentage equal to the Company’s or a business unit’s
Operating Income before incentive compensation, divided by average net Company
or business unit, as applicable, assets, determined in accordance with
generally accepted accounting principles.

2.27  “Return on Equity”means as to any
Performance Period, the percentage equal to the Company’s Profit After-Tax
divided by average stockholder’s equity, determined in accordance with
generally accepted accounting principles.

 3
 

 

2.28  “Return on Sales”means as to any
Performance Period, the percentage equal to the Company’s or a business unit’s
Operating Income before incentive compensation, divided by the Company’s or the
business unit’s, as applicable, Revenue, determined in accordance with
generally accepted accounting principles.

2.29  “Revenue”means as to any Performance
Period, the Company’s or business unit’s net sales, determined in accordance
with generally accepted accounting principles.

2.30  “Shares”means shares of the Company’s
common stock.

2.31  “Target Award”means the target award
payable under the Plan to a Participant for the Performance Period, expressed
as a percentage of his or her Base Salary, as determined by the Committee in
accordance with Section 3.3.

2.32  “Termination of Employment”means a
cessation of the employee-employer relationship between an Employee and the
Company or an Affiliate for any reason, including, but not by way of
limitation, a termination by resignation, discharge, death, Disability,
Retirement, or the disaffiliation of an Affiliate, but excluding any such
termination where there is a simultaneous reemployment by the Company or an
Affiliate.

2.33  “Total Shareholder Return”means as to
any Performance Period, the total return (change in share price plus
reinvestment of any dividends) of a Share.

SECTION 3

SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS

3.1    Selection of Participants.  The Committee, in its sole discretion, shall
select the Employees of the Company who shall be Participants for any
Performance Period. Participation in the Plan is in the sole discretion of the
Committee, and on a Performance Period by Performance Period basis.
Accordingly, an Employee who is a Participant for a given Performance Period in
no way is guaranteed or assured of being selected for participation in any
subsequent Performance Period.

3.2    Determination of Performance Goals.  The Committee, in its sole discretion, shall
establish the Performance Goals for each Participant for the Performance
Period. Such Performance Goals shall be set forth in writing.

3.3    Determination of Target Awards.  The Committee, in its sole discretion, shall
establish a Target Award for each Participant. Each Participant’s Target Award
shall be determined by the Committee in its sole discretion, and each Target
Award shall be set forth in writing.

3.4    Determination of Payout Formula or
Formulae.  On or prior to the
Determination Date, the Committee, in its sole discretion, shall establish a
Payout Formula or Formulae for purposes of determining the Actual Award (if
any) payable to each Participant. Each Payout Formula shall (a) be in writing,
(b) be based on a comparison of actual performance to the Performance Goals,

 4
 

 

(c) provide for the
payment of a Participant’s Target Award if the Performance Goals for the
Performance Period are achieved, and (d) provide for an Actual Award greater
than or less than the Participant’s Target Award, depending upon the extent to
which actual performance exceeds or falls below the Performance Goals.
Notwithstanding the preceding, in no event shall a Participant’s Actual Award
for any Performance Period exceed his or her Maximum Award.

3.5    Date for Determinations.  The Committee shall make all determinations
under Section 3.1 through 3.4 on or before the Determination Date.

3.6    Determination of Actual Awards.  After the end of each Performance Period, the
Committee shall certify in writing the extent to which the Performance Goals
applicable to each Participant for the Performance Period were achieved or
exceeded. The Actual Award for each Participant shall be determined by applying
the Payout Formula to the level of actual performance that has been certified
by the Committee. Notwithstanding any contrary provision of the Plan, the
Committee, in its sole discretion, may (a) eliminate or reduce the Actual Award
payable to any Participant below that which otherwise would be payable under
the Payout Formula, and (b) determine what Actual Award, if any, will be paid
in the event of a Termination of Employment prior to the end of the Performance
Period.

SECTION 4

PAYMENT OF AWARDS

4.1    Right to Receive Payment.  Each Actual Award that may become payable
under the Plan shall be paid solely from the general assets of the Company.
Nothing in this Plan shall be construed to create a trust or to establish or
evidence any Participant’s claim of any right to payment of an Actual Award
other than as an unsecured general creditor with respect to any payment to
which he or she may be entitled.

4.2    Timing of Payment.  Payment of each Actual Award shall be made as
soon as administratively practicable, but in no event later than 90 days after
the end of the Performance Period during which the Award was earned.

4.3    Form of Payment.  Each Actual Award normally shall be paid in
cash (or its equivalent) in a single lump sum. However, the Committee, in its
sole discretion, may declare any Actual Award, in whole or in part, payable in
restricted Shares. The number of Shares of restricted stock granted shall be
determined by dividing the cash amount foregone by the Fair Market Value of a
Share on the date that the cash payment otherwise would have been made. Any
such restricted stock shall be subject to the vesting schedule (not to exceed
two calendar years) as may be determined by the Committee, provided that
accelerated vesting automatically shall occur upon death, Retirement or
involuntary Termination of Employment without cause. No more than 100,000
restricted Shares may be issued under Plan.

4.4    Payment in the Event of Death.  If a Participant dies prior to the payment of
an Actual Award earned by him or her prior to death for a prior Performance
Period, the Award shall be paid to his or her estate.

 5
 

 

SECTION 5

ADMINISTRATION

5.1    Committee is the Administrator.  The Plan shall be administered by the
Committee. The Committee shall consist of not less than two (2) members of the
Board. The members of the Committee shall be appointed from time to time by,
and serve at the pleasure of, the Board. Each member of the Committee shall
qualify as an “outside director” under section 162(m) of the Code. If it is
later determined that one or more members of the Committee do not so qualify,
actions taken by the Committee prior to such determination shall be valid
despite such failure to qualify.

5.2    Committee Authority.  It shall be the duty of the Committee to
administer the Plan in accordance with the Plan’s provisions. The Committee
shall have all powers and discretion necessary or appropriate to administer the
Plan and to control its operation, including, but not limited to, the power to
(a) determine which Employees shall be granted awards, (b) prescribe the terms
and conditions of awards, (c) interpret the Plan and the awards, (d) adopt such
procedures and subplans as are necessary or appropriate to permit participation
in the Plan by Employees who are foreign nationals or employed outside of the
United States, (e) adopt rules for the administration, interpretation and
application of the Plan as are consistent therewith, and (f) interpret, amend
or revoke any such rules.

5.3    Decisions Binding.  All determinations and decisions made by the
Committee, the Board, and any delegate of the Committee pursuant to the
provisions of the Plan shall be final, conclusive, and binding on all persons,
and shall be given the maximum deference permitted by law.

5.4    Delegation by the Committee.  The Committee, in its sole discretion and on
such terms and conditions as it may provide, may delegate all or part of its
authority and powers under the Plan to one or more directors and/or officers of
the Company; provided, however, that the Committee may delegate its authority
and powers only with respect to awards that are not intended to qualify as
performance-based compensation under section 162(m) of the Code.

SECTION 6

GENERAL PROVISIONS

6.1    Tax Withholding.  The Company shall withhold all applicable
taxes from any Actual Award, including any federal, state and local taxes
(including, but not limited to, the Participant’s FICA and SDI obligations).

6.2    No Effect on Employment.  Nothing in the Plan shall interfere with or
limit in any way the right of the Company to terminate any Participant’s
employment or service at any time, with or without cause. For purposes of the
Plan, transfer of employment of a Participant between the Company and any one
of its Affiliates (or between Affiliates) shall not be deemed a Termination of
Employment. Employment with the Company and its Affiliates is on an at-will
basis only. The Company expressly reserves the right, which may be exercised at
any time and without regard to when during a Performance Period such exercise
occurs, to terminate any individual’s employment

 6
 

 

with or without cause,
and to treat him or her without regard to the effect which such treatment might
have upon him or her as a Participant.

6.3    Participation.  No Employee shall have the right to be
selected to receive an award under this Plan, or, having been so selected, to
be selected to receive a future award.

6.4    Indemnification.  Each person who is or shall have been a member
of the Committee, or of the Board, shall be indemnified and held harmless by
the Company against and from (a) any loss, cost, liability, or expense that may
be imposed upon or reasonably incurred by him or her in connection with or
resulting from any claim, action, suit, or proceeding to which he or she may be
a party or in which he or she may be involved by reason of any action taken or
failure to act under the Plan or any award, and (b) from any and all amounts
paid by him or her in settlement thereof, with the Company’s approval, or paid
by him or her in satisfaction of any judgment in any such claim, action, suit,
or proceeding against him or her, provided he or she shall give the Company an
opportunity, at its own expense, to handle and defend the same before he or she
undertakes to handle and defend it on his or her own behalf. The foregoing
right of indemnification shall not be exclusive of any other rights of
indemnification to which such persons may be entitled under the Company’s
Certificate of Incorporation or Bylaws, by contract, as a matter of law, or
otherwise, or under any power that the Company may have to indemnify them or
hold them harmless.

6.5    Successors.  All obligations of the Company under the Plan,
with respect to awards granted hereunder, shall be binding on any successor to
the Company, whether the existence of such successor is the result of a direct
or indirect purchase, merger, consolidation, or otherwise, of all or
substantially all of the business or assets of the Company.

6.6    Beneficiary Designations.  If permitted by the Committee, a Participant
under the Plan may name a beneficiary or beneficiaries to whom any vested but
unpaid award shall be paid in the event of the Participant’s death. Each such
designation shall revoke all prior designations by the Participant and shall be
effective only if given in a form and manner acceptable to the Committee. In
the absence of any such designation, any vested benefits remaining unpaid at
the Participant’s death shall be paid to the Participant’s estate.

6.7    Nontransferability of Awards.  No award granted under the Plan may be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other
than by will, by the laws of descent and distribution, or to the limited extent
provided in Section 6.6. All rights with respect to an award granted to a
Participant shall be available during his or her lifetime only to the
Participant.

6.8    Deferrals.  The Committee, in its sole discretion, may
permit a Participant to defer receipt of the payment of cash that would
otherwise be delivered to a Participant under the Plan. Any such deferral
elections shall be subject to such rules and procedures as shall be determined
by the Committee in its sole discretion.

 7
 

 

SECTION 7

AMENDMENT, TERMINATION AND DURATION

7.1    Amendment, Suspension or Termination.
 The Board, in its sole discretion, may
amend or terminate the Plan, or any part thereof, at any time and for any
reason. The amendment, suspension or termination of the Plan shall not, without
the consent of the Participant, alter or impair any rights or obligations under
any Target Award theretofore granted to such Participant. No award may be
granted during any period of suspension or after termination of the Plan.

7.2    Duration of the Plan.  The Plan shall commence on the date specified
herein, and subject to Section 7.1 (regarding the Board’s right to amend or
terminate the Plan), shall remain in effect thereafter.

SECTION 8

LEGAL CONSTRUCTION

8.1    Gender and Number.  Except where otherwise indicated by the
context, any masculine term used herein also shall include the feminine; the
plural shall include the singular and the singular shall include the plural.

8.2    Severability.  In the event any provision of the Plan shall
be held illegal or invalid for any reason, the illegality or invalidity shall
not affect the remaining parts of the Plan, and the Plan shall be construed and
enforced as if the illegal or invalid provision had not been included.

8.3    Requirements of Law.  The granting of awards under the Plan shall be
subject to all applicable laws, rules and regulations, and to such approvals by
any governmental agencies or national securities exchanges as may be required.

8.4    Governing Law.  The Plan and all awards shall be construed in
accordance with and governed by the laws of the State of California, but
without regard to its conflict of law provisions.

8.5    Captions.  Captions are provided herein for convenience
only, and shall not serve as a basis for interpretation or construction of the
Plan.

 8

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