Document:

DC5496.pdf -- Converted by SEC Publisher 4.2, created by BCL Technologies Inc., for SEC Filing

	
EXHIBIT 10.1

     ENCORIUM GROUP, INC. 2002 EQUITY INCENTIVE PLAN

AMENDED AND RESTATED NON-QUALIFIED STOCK OPTION AWARD AGREEMENT

     WHEREAS, on September 8, 2008 (the “Date of Grant”) the Encorium Group, Inc. (the “Company”) granted to Dr. David Ginsberg (the “Optionee”) an option to purchase a total
of 250,000 shares of Common Stock of the Company with an exercise price of $1.70 per share (the “Original Option”), which was the Fair Market Value on the Date of Grant;

     WHEREAS the Original Option is evidenced by that certain Non-Qualified Stock Option Award Agreement dated September 8, 2008;

     WHEREAS, the Original Option was granted to the Optionee in order to provide a performance incentive and to more closely align the interests of the Optionee with those of the Company’s
stockholders in maximizing stockholder value;

     WHEREAS, as a result of the decline in the Company's stock price immediately after the date of grant of the Original Option, the Compensation Committee believes that such Original Option is not
achieving the purposes for which it was intended and that it is in the best interest of the Company and its stockholders to reprice the Original Option in order to properly incentivize the Optionee;

     WHEREAS to assure the Company that it will have the continued dedication of the Optionee and the availability of his advice and counsel notwithstanding the possibility, threat, or occurrence of a
Change in Control (as hereinafter defined) of the Company the Board of Directors believes that it is in the best interest of the Company and its stockholders to provide for an acceleration of the Original Option upon a Change of Control.

     WHEREAS, on November 4, 2008 (the “Repricing Date”), the Compensation Committee of the board of directors of the Company acted to reprice the Original Option to have an exercise price equal
to the closing price of the Company's common stock on November 4, 2008, which was $ .36 per share and to provide that the Original Option shall vest immediately upon a “Change of Control” of the Company; and

     WHEREAS, in order to effect the amendments set forth above, the Company hereby amends and restates the Original Option Agreement to read as follows:

     The Company hereby grants to the Optionee an option to purchase a total of 250,000 shares of Common Stock of the Company (the “Option”), at the price and on the terms set forth herein, and
in all respects subject to the terms, definitions and provisions of the Encorium Group, Inc.(formerly, Covalent Group, Inc.) 2002 Equity Incentive Plan (the “Plan”) applicable to non-qualified stock options, which terms and provisions are
hereby incorporated by reference herein.

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Unless otherwise provided for herein or unless the context herein otherwise requires, the terms defined in the Plan shall have the same meanings when used herein.

	
 
		
 		
1. 
		
 		
Nature of the Option. This Option is not intended to be an incentive 
	
	
stock option. 
		
 		
 
		
 		
 
	
	
 
	
	
 
		
 		
2. 
		
 		
Term of Option. This Option may not be exercised later than the date 
	

that is ten (10) years after the Date of Grant, subject to earlier termination, as provided in the Plan or Section 6 hereof.

     3. Option Exercise Price. The cost to the Optionee to purchase, pursuant to this Award Agreement, one Share is $ .36, which is the Fair Market Value on the
Repricing Date. 

     4. Exercise of Option. This Option shall be exercisable during its term only in accordance with the terms and provisions of the Plan and this Award Agreement as
follows:

	
(a)      		
Right to Exercise.	
	 
	
(i)      		
The Option shall become exercisable with respect to 83,333 Shares if the	
	 

Optionee remains continuously employed by the Company through the first (1st) anniversary of the Date of Grant.

     (ii) The Option shall become exercisable with respect to 83,333 Shares if the Optionee remains continuously employed by the Company through the second
(2nd) anniversary of the Date of Grant.

     (iii) The Option shall become exercisable with respect to 83,334 Shares if the Optionee remains continuously employed by the Company through the third
(3rd) anniversary of the Date of Grant.

     (b) Accelerated Vesting. The Option shall become exercisable immediately upon a Change of Control of the Company. “Change in Control” of the Company under
this Agreement shall be deemed to have occurred as of the first day that any one or more of the following conditions shall have been satisfied: 

     (i) When a “person”, as defined in Sections 3(a)(9) and 13(d)(3) of the Exchange Act, becomes the beneficial owner, directly or indirectly, of securities of
the Company representing (A) more than twenty percent (20%) of the combined voting power of the Company’s then outstanding securities, unless such person is subject to contractual restrictions that would preclude him from voting such shares in
a manner to influence or control the management of the Company’s business, provided that in the event such contractual restrictions are removed, a Change of Control will be deemed to have occurred on the effective date of such removal, or (B)
one hundred percent (100%) of the combined voting power of the Company’s then outstanding securities regardless of any contractual restrictions. For purposes of this provision, “person” shall not include the Company, any subsidiary of
the Company, any employee benefit plan or employee stock plan of the Company, or any person holding the Company’s Common Stock by for or pursuant to the terms of such a plan; and “voting power” 

	
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shall mean the power under ordinary circumstances (and not merely upon the happening of a contingency) to vote in the election of directors. 

     (ii) When, as a result of a vote of stockholders for which proxies are solicited by or on behalf of any person other than the Company in accordance with the SEC rules
issued under Section 14 of the Exchange Act, or which is exempt from the SEC proxy rules by reason of Rule 14a-2 under the Exchange Act, or as a result of an action by written consent of stockholders without a meeting, the “incumbent
directors” cease to constitute at least a majority of the authorized number of members of the Board. For purposes of this provision, “incumbent directors” shall mean the persons who were members of the Board on the date hereof
(including Executive’s nominees), and the persons who were elected or nominated as their successors or pursuant to increases in the size of the Board by a vote of at least an absolute majority (and not just the majority of a quorum) of the
Board members who were then Board members (or successors or additional members so elected or nominated). 

     (iii) When the stockholders of the Company approve a merger, consolidation, or reorganization, whether or not the Company is the surviving entity in such transaction,
other than a merger, consolidation, or reorganization that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) at least seventy percent (70%) of the combined voting power of the voting securities, held in relatively the same proportion, of the Company (or such surviving entity) outstanding immediately after the merger,
consolidation, or reorganization. 

     (iv) When the stockholders of the Company approve (A) the sale or other disposition of all or substantially all of the assets the company or (B) a complete liquidation
or dissolution of the Company. 

     (v) When the Board adopts a resolution to the effect that any person has acquired effective control of the business and affairs of the Company. 

     (c) Method of Exercise. The Optionee may exercise this Option by providing written notice stating the election to exercise this Option. Such written notice must be
signed by the Optionee and must be delivered in person or by certified mail to the Chief Financial Officer of the Company or such other person as may be designated by the Company. The written notice must be accompanied by payment of the option
exercise price in the manner described in Section 4(d), by an executed exercise form provided by the administrator and by any other agreements required by the Board or its Committee and/or the terms of the Plan, which other agreements may restrict
the sale or other transfer of the Shares and may include certain additional representations and agreements as to the Optionee’s investment intent with respect to the Shares. This Option will be deemed to be exercised only upon the receipt by
the Company of such written notice, payment of the option exercise price, and duly executed copies of the exercise form and any other agreements required by the Board or its Committee, the terms of the Plan and/or this Award Agreement. The Optionee
will have no right to vote or receive dividends and will have no other rights as a stockholder with respect to such Shares notwithstanding the exercise of this Option, until the issuance (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company) of the stock certificate(s) 

	
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evidencing Shares that are being issued upon exercise of this Option. The certificate(s) for the Shares will be registered in the name of the Optionee and will contain any legend as may be required under the Plan, this Award
Agreement, and/or applicable law.

     (d) Method of Payment. The method of payment of the option exercise price will be determined by the Board or its Committee and may consist entirely of
cash, certified check, or such other consideration or method of payment as may be authorized under the Plan.

     (e) Partial Exercise. This Option may be exercised in whole or in part; provided, however, that any exercise may apply only with respect to a whole number of Shares.

     (f) Restrictions on Exercise. This Option may not be exercised if the issuance of these Shares upon such exercise would constitute a violation of any
applicable federal or state securities laws or other laws or regulations. In addition, as a further condition to the exercise of this Option, the Company may require the Optionee to make any representation or warranty to the Company as may be
required by or advisable under any applicable law or regulation.

5. Investment Representations. Unless the Shares have been registered under the 

Securities Act of 1933, in connection with the acquisition of this Option, the Optionee represents and warrants to the Company as follows: 

     (a) The Optionee is acquiring this Option, and upon exercise of this Option, the Optionee will be acquiring the Shares for investment for his or her own
account, not as a nominee or agent, and not with a view to or for resale in connection with any distribution thereof.

     (b) The Optionee has a preexisting business or personal relationship with the Company or one of its directors, officers or controlling persons and by
reason of his or her business or financial experience, has, and could be reasonably assumed to have, the capacity to protect his interests in connection with the acquisition of this Option and the Shares.

	
6.      		
Termination of Relationship with the Company.	
	 
	 	
(a) Generally. If the Optionee’s employment by the Company is terminated	
	 

voluntarily for any reason other than death, Disability or termination for Cause, the Option (to the extent exercisable at the time of such termination) may be exercised at any time within three (3) months after the date of
such termination. To the extent that the Option is not exercisable at the time of such termination, or to the extent the Option is not exercised within the time specified herein, the Option shall terminate.

     (b) Disability. If the Optionee’s employment by the Company terminates due to Disability, the Option (to the extent exercisable at the time of such
termination) may be exercised by the Optionee or his legal guardian or representative at any time within twelve (12) months after such termination. To the extent that the Option is not exercisable on the date of termination, or to the extent the
Option is not exercised within the time specified herein, the Option shall terminate.

     (c) Death.  If the Optionee’s employment by the Company terminates due to his death, the Option (to the extent exercisable at the time of such
death) will remain exercisable for twelve (12) months after the date of death by the Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance. To the extent that the Option is not exercisable on
the date of death, or to the extent the Option is not exercised within the time specified herein, the Option shall terminate.

	
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     (d) Termination for Cause. If the Optionee’s employment is terminated for Cause, the Option will then terminate immediately and automatically, and
the Optionee shall have no further rights therein.

Notwithstanding any other provision of this Section 6, the Option shall not be exercisable after the expiration of the term set forth in Section 2 hereof.

     7. Non-Transferability of Option. This Option may not be sold, pledged, assigned, hypothecated, gifted, transferred or disposed of in any manner either
voluntarily or involuntarily by operation of law, other than by will or by the laws of descent or distribution. During the Optionee’s lifetime, this Option is exercisable only by the Optionee (or by such Optionee’s legal guardian or
representative as provided in Section 6). Subject to the foregoing and the terms of the Plan, the terms of this Option will be binding upon the executors, administrators and heirs of the Optionee, meaning for purposes of this Award Agreement, both
testamentary heirs and heirs by intestacy.

8. No Continuation of Employment or Engagement.  Neither the Plan nor this 

Option shall confer upon any Optionee any right to continue in the service of the Company or any of its Subsidiaries or limit, in any respect, the right of the Company to discharge the Optionee at any time, with or without
cause and with or without notice.

     9. Market Stand-Off. The Optionee agrees that, in connection with any public offering by the Company of its equity securities pursuant to a registration
statement filed under the Securities Act, not to sell, make any short sale of, loan, hypothecate, pledge, grant any option for the purchase of or otherwise dispose of any Shares without the prior written consent of the Company or its underwriters,
for such period of time from the effective date of such registration as may be requested by the Company or such underwriters.

     10. Withholding. The Company reserves the right to withhold, in accordance with any applicable laws, from any consideration payable or property
transferable to Optionee any taxes required to be withheld by federal, state or local law as a result of the grant or exercise of this Option or the sale or other disposition of the Shares. If the amount of any consideration payable to the Optionee
is insufficient to pay such taxes or if no consideration is payable to the Optionee, upon the request of the Company, the Optionee (or such other person entitled to exercise this Option pursuant to Section 6 hereof) will pay to the Company an amount
sufficient for the Company to satisfy any federal, state or local tax withholding requirements applicable to the grant or exercise of this Option or the sale or other disposition of the Shares issued upon the exercise of this Option.

     11. The Plan. The Optionee has received a copy of the Plan (a copy of which is attached hereto), has read the Plan and is familiar with its terms, and
hereby accepts the Option subject to all of the terms and provisions of the Plan, as amended from time to time. Pursuant to the Plan, the Board or its Committee is authorized to interpret the Plan and to adopt rules and regulations not inconsistent
with the Plan as it deems appropriate. The Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Board or its Committee upon any questions arising under the Plan. 

     12. Governing Law. This Award Agreement will be construed in accordance with the laws of the State of Delaware, without regard to the application of the
principles of conflicts of laws.

     13. Amendment. Subject to the provisions of the Plan, this Award Agreement may only be amended by a writing signed by each of the parties
hereto.

	
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     14. Entire Agreement.  This Award Agreement, together with the Plan and the other exhibits attached thereto or hereto, represents the entire agreement
between the parties hereto relating to the subject matter hereof, and merges and supersedes all prior and contemporaneous discussions, agreements and understandings of every nature relating to the award of Options to Optionee by the Company. This
Award Agreement may not be changed or modified, except by an agreement in writing signed by each of the parties hereto.

     IN WITNESS WHEREOF, this Award Agreement has been executed by the parties on the 4th day of November, 2008.

	
ENCORIUM GROUP, INC. 
		
 		
 
	
	
 
	
	
 
	
	
By: 
		
 		
/s/ Kai Lindevall 
		
 		
 
	
	
		
		

		
		
	
	
Name: 
		
 		
Kai Lindevall 
		
 		
 
	
	
Title: 
		
 		
Chairman of the Board and President 
		
 		
of 
	
	
 
		
 		
European and Asian Operations 
		
 		
 
	
	
 
	
	
 
	
	
OPTIONEE 
		
 		
 
	
	
 
	
	
 
	
	
___/s/ David Ginsberg________ 
		
 		
 
	
	
Signature 
		
 		
 
	

THIS OPTION AND THE SECURITIES WHICH MAY BE PURCHASED UPON EXERCISE OF THIS OPTION HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS.  THESE SECURITIES HAVE
NOT BEEN ACQUIRED WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE SOLD, ASSIGNED, EXCHANGED, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR DISPOSED OF, BY GIFT OR OTHERWISE, OR IN ANY WAY ENCUMBERED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS, OR A SATISFACTORY OPINION OF COUNSEL SATISFACTORY TO COVALENT GROUP, INC. THAT REGISTRATION IS NOT REQUIRED UNDER SUCH
ACT AND UNDER APPLICABLE STATE SECURITIES LAWS.

	
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GV: #223938 v3 (4SS$03!.DOC)ex10-1.htm

    
      

    

    Exhibit
10.1

     

    TurboChef
Technologies, Inc

    2007
Incentive-Based Compensation Plan

    

    The
fundamental objectives of TurboChef’s 2007 Incentive-Based Compensation Plan are
to ensure that employees are compensated and provided incentives in a way that
advances both the short- & long-term interests of the shareholders while
also ensuring we are able to attract and retain qualified
employees.

    

    TurboChef
approaches this objective with four key components:

    

    
      	
               
      

            	
              ·

            	
              Base
      salary

            

    

    
      	
               
      

            	
              ·

            	
              Performance-based
      annual bonus payable in cash or
stock

            

    

    
      	
               
      

            	
              ·

            	
              Periodic
      (generally annual) grants of long-term stock-based compensation which will
      be granted in the form of restricted stock units which are subject to time
      based vesting requirements.

            

    

    
      	
               
      

            	
              ·

            	
              Performance-based
      additional annual bonus that is achieved by exceeding forecasted results
      or other qualitative measures, which may be payable in cash, stock or
      stock equivalent units.

            

    

    

    Performance-based
Annual Bonus

    

    The
primary objective of the Performance-based Annual Bonus is to reward an
employee’s contribution to the achievement of performance related
goals.  Determination of an employee’s achievement of the annual bonus
will be measured against the following criteria which are set out in more detail
in Exhibit A:  Achievement of (1) divisional goals; and (2) overall
Company performance goals for the year.

    

    Performance-based
Annual Bonuses are earned under different criteria, depending upon in which
bonus category an employee falls.  Eligibility categories are
Commercial, Residential, Marketing and Corporate.  Category
assignments are indicated in Exhibit A.

    

    Bonus-eligible
employees falling within Commercial and Corporate categories shall be eligible
for Performance-based Annual Bonuses under a formula based upon the Company
attaining EBITDA and revenue measures per category for 2007 as set forth in
Exhibit A.   If such specific EBITDA and revenue targets for 2007
are not attained, the Compensation Committee will consider for approval an
alternative proposal management may offer for bonuses within Commercial and
Corporate categories, but only if the proposal is based upon actual EBITDA and
revenue results compared to the targets as well as other qualitative and
quantitative factors that would reasonably support such approval.

    

    Bonus-eligible
employees falling within Residential and Marketing categories shall be eligible
for Performance-based Annual Bonuses under a subjective analysis of qualitative
and quantitative measures, taking into account the Company’s EBITDA measures per
category for 2007 set forth in Exhibit A.  The Compensation Committee
will consider for approval management’s proposal for such bonuses under these
guidelines.

     

     

     

     

     

    
      
        

      

      [*********]  Material
omitted pursuant to a request for confidential treatment under Rule 24b-2 of the
Exchange Act of 1934; filed separately with the Securities and Exchange
Commission.

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Long-Term
stock-based Compensation 

    

    The
primary objective of annual grants of long-term stock-based Compensation is
retention of key employees.  Restricted Stock Units will be granted to
employees who are identified as key employees.  The RSU will vest over
5 years annually, as described in Exhibit B.  The list of key
employee’s as determined by management is attached in Exhibit B.

    

    Performance-based
Additional Annual Bonus, Achieved by Exceeding Budgeted Results or other
Measures

    

    The
Company realizes the importance of recognizing employees whose contribution has
been paramount in creating business or financial results that exceeded the
Company’s expectations and projections.  In an effort to recognize
those individuals the Company will disburse a Performance-based Additional
Annual Bonus that is in addition to the Performance-based Annual Bonus discussed
above.  This Bonus will be payable in cash, stock or stock equivalent
units.

    

    Like the
Performance-based Annual Bonuses, the Performance-based Additional Annual
Bonuses may be earned by employees falling within the Commercial and Corporate
categories through attainment of certain specific measurable targets as set
forth in Exhibit C.  Performance-based Additional Annual Bonuses may
be earned by employees falling within the Residential or Marketing categories
under a subjective analysis of qualitative and quantitative measures, taking
into account the Company exceeding budgeted category EBITDA measures for
2007.  The Compensation Committee will consider for approval
management’s proposal for such additional bonuses for the Residential and
Marketing categories under these guidelines.

     

     

     

     

     

    
      

    

    
      [*********]  Material
omitted pursuant to a request for confidential treatment under Rule 24b-2 of the
Exchange Act of 1934; filed separately with the Securities and Exchange
Commission.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

    

    EXHIBIT
A

    

    Performance-based
Annual Bonus Calculation

    All cash
bonus eligible employees have an allocated amount of additional cash
compensation that can be earned based on favorable financial results or other
qualitative measures.  For 2007 the budgeted EBITDA* and revenue for
each category is as follows:

    

    
      
        	 
      	
                EBITDA

              	
                REVENUE

              
	
                Consolidated

              	
                (5,429,856)

              	 
      
	
                Commercial

              	
                13,277,779

              	
                81,487,246

              
	
                Residential

              	
                (1,384,226)

              	 
      
	
                Marketing

              	
                (9,012,370)

              	 
      

      

    

    

    *For these compensation plan purposes,
EBITDA shall be calculated exclusive of extraordinary items (such as costs of
the options investigation and possible recovery of MSI receivable).

    

    The
calculation for a Commercial employee’s bonus is 80% of their potential
allocation upon achievement of their category’s budgeted EBITDA and revenue
targets and the remaining 20% if the Consolidated EBITDA target is
met.  A Corporate employee’s bonus will be calculated with 25% coming
from achievement of each of the three categories’ EBITDA and revenue (if
applicable) results and the remaining 25% from hitting the Consolidated
target.  Employees falling within the Residential and Marketing
categories may receive a bonus determined by the Compensation Committee upon
recommendation of management by an analysis of qualitative and quantitative
measures, including the category budgeted EBITDA.

     

    
      
        
          
            
              
                
                  
                    
                      	 	
                              Last
      Name First Name

                            	
                              Division

                            	
                               2007
      Cash Bonus Potential

                            	
                               Last
      Name First Name

                            	
                              Division

                            	
                               2007
      Cash Bonus Potential

                            
	 	 
      	 
      	 
      	 
      	 
      	 
      
	 	
                              Lehr,
      Paul

                            	
                              Commercial

                            	
                                                  50,000

                            	
                              [*********]

                            	
                              [*********]

                            	
                              [*********]

                            
	 	
                              Perlman,
      Richard

                            	
                              Corporate

                            	
                                                  75,000

                            	 
      	 
      	 
      
	 	
                              Price,
      James

                            	
                              Corporate

                            	
                                                  75,000

                            	 
      	 
      	 
      
	 	
                              Cochran,
      James

                            	
                              Corporate

                            	
                                                  30,000

                            	 
      	 
      	 
      
	 	
                              Beshara,
      Stephen

                            	
                              Marketing

                            	
                                                  50,000

                            	 
      	 
      	 
      
	 	
                              McGrain,
      Joseph

                            	
                              Residential

                            	
                                                  30,000

                            	 
      	 
      	 
      
	 	
                              [*********]

                            	
                              [*********]

                            	
                              [*********]

                            	 
      	 
      	 
      

                    

                  

                

              

            

          

        

      

      
         

         

         

         

         

        
          
            

          

          [*********]  Material
omitted pursuant to a request for confidential treatment under Rule 24b-2 of the
Exchange Act of 1934; filed separately with the Securities and Exchange
Commission.

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

        

      

    

    EXHIBIT
B

    

    The 2007
RSU grant will be a total of 545,000 RSU.  All RSU are granted with a
vesting of one-fifth of the number of shares each March 10, beginning March 10,
2008.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        Name

                                      	
                                        Division

                                      	
                                         2007
      RSU Grant

                                      	 
      	
                                        Name

                                      	
                                        Division

                                      	
                                         2007
      RSU Grant

                                      
	
                                        McGrain,
      Joseph

                                      	
                                        Residential

                                      	
                                                         12,000

                                      	 
      	
                                        [*********]

                                      	
                                        [*********]

                                      	
                                        [*********]

                                      
	
                                        Cochran,
      James

                                      	
                                        Corporate

                                      	
                                                         20,000

                                      	 
      	 
      	 
      	 
      
	
                                        Perlman,
      Richard

                                      	
                                        Corporate

                                      	
                                                         58,000

                                      	 
      	 
      	 
      	 
      
	
                                        Price,
      James

                                      	
                                        Corporate

                                      	
                                                         58,000

                                      	 
      	 
      	 
      	 
      
	
                                        Lehr,
      Paul

                                      	
                                        Commercial

                                      	
                                                         66,000

                                      	 
      	 
      	 
      	 
      
	
                                        Beshara,
      Stephen

                                      	
                                        Marketing

                                      	
                                                         66,000

                                      	 
      	 
      	 
      	 
      
	
                                        [*********]

                                      	
                                        [*********]

                                      	
                                        [*********]

                                      	 
      	 
      	 
      	 
      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

     

     

     

     

    
      
        

      

      [*********]  Material
omitted pursuant to a request for confidential treatment under Rule 24b-2 of the
Exchange Act of 1934; filed separately with the Securities and Exchange
Commission.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    EXHIBIT
C

    

    There are
two thresholds for attainment of the Performance-based Additional Annual Bonus
for employees falling within Commercial and Corporate categories.  If
a category result is 15% to less than 25% better than the budgeted EBITDA
amounts, then there will be an additional bonus equal to 15% of the additional
EBITDA.  If the actual results are a 25% or greater improvement over
budgeted EBITDA, then the additional bonus will equal 25% of the additional
EBITDA.  For Commercial, this calculation would be based upon
Commercial results only.  For Corporate, this calculation would be
based upon the same 25% per category blending of results as the
Performance-based Annual Bonus.

    

    For
employees falling within Residential and Marketing categories, the additional
bonus would be determined under a subjective analysis of qualitative and
quantitative results, with the 25% of additional EBITDA measure in the chart
below serving as a maximum measure of possible additional bonus.  The
Compensation Committee would determine whether an additional bonus is earned
after consideration of a proposal for such by management, but only if the
proposal is based upon actual EBITDA results compared to the targets and
additional bonus guidelines in the chart below as well as other qualitative and
quantitative factors that would reasonably support such approval.

    

    The
additional bonus amount will be distributed subject to final approval of
allocations by the Compensation Committee.  Examples below assume a
payout in stock.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        	 	 
      	 
      	
                                                                                 Scenario
      1 (15% Overage)

                                                                              
	 	
                                                                                Division

                                                                              	
                                                                                2007
      Budgeted EBITDA

                                                                              	
                                                                                Actual
      EBITDA

                                                                              	
                                                                                EBITDA
      > Budget

                                                                              	
                                                                                Stock
      @ 

                                                                                $[*********]/Share

                                                                              	
                                                                                Expense
      for 

                                                                                Performance
      Bonus

                                                                              
	 	
                                                                                Consolidated

                                                                              	
                                                                                (5,429,856)

                                                                              	
                                                                                [*********]

                                                                              	
                                                                                [*********]

                                                                              	
                                                                                [*********]

                                                                              	
                                                                                [*********]

                                                                              
	 	
                                                                                Commercial

                                                                              	
                                                                                13,277,779

                                                                              	
                                                                                [*********]

                                                                              	
                                                                                [*********]

                                                                              	
                                                                                [*********]

                                                                              	
                                                                                [*********]

                                                                              
	 	 
      	 
      	 
      	 
      	 
      	 
      
	 	 
      	 
      	 
      	 
      	 
      	 
      
	 	 
      	 
      	
                                                                                 Scenario
      2 (25% Overage)

                                                                              
	 	
                                                                                Division

                                                                              	
                                                                                2007
      Budgeted EBITDA

                                                                              	
                                                                                Actual
      EBITDA

                                                                              	
                                                                                EBITDA
      > Budget

                                                                              	
                                                                                Stock
      @ 

                                                                                $[*********]/Share

                                                                              	
                                                                                Expense
      for 

                                                                                Performance
      Bonus

                                                                              
	 	
                                                                                Consolidated

                                                                              	
                                                                                (5,429,856)

                                                                              	
                                                                                [*********]

                                                                              	
                                                                                [*********]

                                                                              	
                                                                                [*********]

                                                                              	
                                                                                [*********]

                                                                              
	 	
                                                                                Commercial

                                                                              	
                                                                                13,277,779

                                                                              	
                                                                                [*********]

                                                                              	
                                                                                [*********]

                                                                              	
                                                                                [*********]

                                                                              	
                                                                                [*********]

                                                                              
	 	
                                                                                Residential

                                                                              	
                                                                                (1,384,226)

                                                                              	
                                                                                [*********]

                                                                              	
                                                                                [*********]

                                                                              	
                                                                                [*********]

                                                                              	
                                                                                [*********]

                                                                              
	 	
                                                                                Marketing

                                                                              	
                                                                                (9,012,370)

                                                                              	
                                                                                [*********]

                                                                              	
                                                                                [*********]

                                                                              	
                                                                                [*********]

                                                                              	
                                                                                [*********]

                                                                              

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

     

     

     

     

    
      
        

      

      [*********]  Material
omitted pursuant to a request for confidential treatment under Rule 24b-2 of the
Exchange Act of 1934; filed separately with the Securities and Exchange
Commission.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}]]