Document:

10-1FormofTargetAwardNotificationLtrFiscal2013

Exhibit 10.1
FORM OF TARGET AWARD NOTIFICATION LETTER (FISCAL 2013) 
UNDER FARMER BROS. CO. 2005 INCENTIVE COMPENSATION PLAN

Dear ______________:
The Compensation Committee (“Committee”) has chosen you to be a participant in the Farmer Bros. Co. 2005 Incentive Compensation Plan (the “Plan”) for fiscal 2013. Your target award for fiscal 2013 is equal to ________% of your annual base salary (“Target Bonus Percentage”). If your base salary changes during the year, your target award will be the indicated percentage of twelve (12) times your average monthly base salary for fiscal 2013. Your target award was determined by the Committee based on your expected total compensation, job responsibilities, [and] expected job performance [and the terms of your employment agreement]. [Subject to the terms and conditions of your employment agreement, you are entitled to a guaranteed bonus for fiscal 2013 equal to one-third (1/3) of your target award.]
In general, your bonus for fiscal 2013 will be determined primarily by measuring the Company’s financial performance and your achievement of individual goals which the Committee has assigned to you. The method for determining your bonus is described below.

Company Financial Performance
 
In calculating your bonus under the Plan, Company financial performance will be weighted at 80%. Company financial performance will be gauged by the level of achievement of operating cash flow as determined from the Company’s audited financial statements. “Operating cash flow” is defined as income from operations after executive bonus accruals, excluding non-recurring items such as income from the sale of capital assets, severance paid or payable to terminated employees, interest expense, depreciation and amortization, pension related expense and ESOP compensation expense. Subject to the Committee’s discretion under the Plan, threshold operating cash flow of $26.5 million must be achieved in fiscal 2013 to earn any bonus payout under the Plan. Assuming this threshold is reached, a percentage of achievement ranging from 90% for operating cash flow of $26.5 million to 150% for operating cash flow of $44.1 million or more will be assigned in proportion to the level of operating cash flow achieved.
 
Individual Performance

In calculating your bonus under the Plan, individual performance will be weighted at 20%.  Each goal will be weighted as shown below. The Committee has assigned the following individual goals to you for fiscal 2013: 
 
	
		
	Goal
	Weighting

	 
	%

	 
	%

	 
	%

	 
	%

Bonus Determination 

After the end of the fiscal year and promptly upon availability of the Company’s audited financial statements, the Committee will determine the Company’s level of operating cash flow and the resulting percentage of achievement.

At such time, the Committee will also determine your percentage of achievement of each of the assigned individual goals in a range of 0% to 150% as determined by the Committee in its discretion, and each goal will be weighted as shown above to arrive at a composite percentage for achievement of the assigned goals.

The achievement percentages for operating cash flow and for your assigned goals will be added together and multiplied by your Target Bonus Percentage. The product will be multiplied by your fiscal 2013 annual base salary. The result will be the amount of your preliminary bonus award for fiscal 2013. The preliminary bonus award is subject to adjustment, upward or downward, by the Compensation Committee in its discretion. The Committee also has the discretion to alter the Company financial performance measure and individual goals during the year and to decline to award any bonus should the 

Committee determine such actions to be warranted by a change in circumstances. Accordingly, [subject to the terms of your employment agreement,] no bonus is earned unless and until an award is actually made by the Committee after year-end.

Example

Assume that your annual base salary for fiscal 2013 is $250,000 and did not change during the year, your target award is 40% of your annual base salary and that Company financial performance is to be weighted at 80% and individual goals are to be weighted at 20%.  Assume also that you have been assigned four individual goals, weighted evenly. Assuming the levels of achievement set forth below, your bonus would be determined as follows: 

	
								
	Performance Measure/Goal
	Weighting
	Achievement
	Achievement %
	Weighted Level of Achievement
(Weighting x Achievement %)

	Operating Cash Flow
	80
	%
	$44.1 million
	150
	%
	120
	%

	Individual Goal #1
	5
	%
	--
	100
	%
	5
	%

	Individual Goal #2
	5
	%
	--
	50
	%
	2.5
	%

	Individual Goal #3
	5
	%
	--
	125
	%
	6.25
	%

	Individual Goal #4
	5
	%
	--
	75
	%
	3.75
	%

	Total achievement percentage
	 
	137.5
	%

The preliminary bonus is the product of your total achievement percentage multiplied by your Target Bonus Percentage multiplied by your base salary.  In the above example, the preliminary bonus amount is $137,500 (137.5% x 40% x $250,000).  The Committee has discretion to change your preliminary bonus amount to arrive at your final bonus amount.  However, absent extraordinary circumstances, the Committee does not intend to exercise discretion to award bonuses if the threshold operating cash flow of $26.5 million is not achieved.

The Committee intends that the bonus structure described above will encourage teamwork among key management personnel as well as individual achievement. The Company and individual goals are not intended to be easily achievable. The Committee can determine to pay awards on a current or deferred basis, or partly on each. 

All awards are governed by the Plan provisions which control any inconsistency with this letter. A copy of the Plan is enclosed. 

Please let me know if you have any questions. We wish you great success for fiscal 2013! 
 
Very truly yours,

James J. McGarry
Compensation Committee ChairmanExhibit 10.56
  
 THIRD AMENDMENT TO PURCHASE AND SALE CONTRACT 
  
  
 THIS THIRD AMENDMENT TO PURCHASE AND SALE CONTRACT (this "Amendment") is made and entered into as of the 25th day of September, 2012, by and between CENTURY PROPERTIES FUND XIX, LP, a Delaware limited partnership("Seller") and AUGUSTUS PARTNERS, LLC, a Colorado limited liability company("Purchaser").
 RECITALS:
 A.        Seller and Purchaser entered into that certain Purchase and Sale Contract, dated as of June 14, 2012, as amended by that certain First Amendment to Purchase and Sale Contract, dated as of August 15, 2012, and that certain Second Amendment to Purchase and Sale Contract, dated as of August 21, 2012 ("Contract") for the purchase of the Property described therein commonly known as Tamarind Bay Apartments.
 B.        Seller and Purchaser wish to amend the Contract as provided below.
 NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Purchaser agree as follows:
 1.                  Incorporation of Recitals.  The above recitals are true and correct and are incorporated herein as if set forth in full.
 2.                  General Provisions.  All capitalized terms not otherwise defined in this Amendment shall have the same meanings given to them as in the Contract.  Except as amended and modified by this Amendment, all of the terms, covenants, conditions, and agreements of the Contract shall be valid and binding against the parties and in full force and effect.  In the event of any conflict between the provisions of the Contract and the provisions of this Amendment, this Amendment shall control.
 3.                  Closing Credit. At Closing, Purchaser shall receive a credit against the Purchase Price in the amount of $381,000.00 for fire code upgrades to be undertaken at the Property by Purchaser following the Closing.
 4.                  Governing Law.  This Amendment shall be governed by the laws of the State of Florida.
 5.                  Counterparts; Facsimile.  This Amendment may be executed in counterparts each of which shall be deemed an original and all of which together shall constitute one instrument.  Facsimile or electronically transmitted signatures shall be deemed for all purposes to be originals.
  
 [Signature Pages Follow]

   
             IN WITNESS WHEREOF, Seller and Purchaser have executed this Amendment as of the day and year first above written.
 Seller:
  
 CENTURY PROPERTIES FUND XIX, LP,
 a Delaware limited partnership
  
 By:      FOX PARTNERS II,
             a California general partnership,
             its general partner
  
             By:      FOX CAPITAL MANAGEMENT CORPORATION,
                         a California corporation,
                         its managing general partner
  
  
 By:  /s/Steven D. Cordes
 Name:  Steven D. Cordes
 Title:  Senior Vice President
  
  
 [Purchaser’s Signature Page Follows]

 Purchaser:
  
 AUGUSTUS PARTNERS, LLC,
 a Colorado limited liability company
  
  
 By:  /s/Carter Faber
 Name:  Carter Faber
 Title:  MemberExhibit 10-CC

 

NON-EMPLOYEE DIRECTOR

NON-QUALIFIED STOCK OPTION AGREEMENT

 

 

OPTION AGREEMENT made this
___ day of ____, ____, by and between Donaldson Company, Inc., a Delaware corporation (hereinafter, together with its subsidiaries,
called “Donaldson”), and _______________, a non-employee Director of Donaldson (hereinafter called “Participant”).

 

In consideration of the
mutual covenants hereinafter set forth and for other good and valuable consideration, the parties agree as follows:

 

1.        Donaldson irrevocably
grants to the Participant the right and option to purchase all or any part of an aggregate of _____ shares of Common Stock, par
value of $5.00 per share, of Donaldson. This option is granted pursuant to the Donaldson Company Non-Qualified Stock Option Program
for Non-Employee Directors (the “Plan”). The Participant acknowledges receipt of a copy of the Plan.

 

2.        The purchase price
of the shares of Common Stock subject to this option is ____ per share. The date of grant is ________.

 

3.        The term of this
option is for the period of ten years from and after the date of grant, or such shorter period as may be provided by the provisions
of the Plan.

 

4.        This option shall
not be transferable otherwise than by will or the laws of descent and distribution and may be exercised during the lifetime of
the Participant only by the Participant; provided, however, that notwithstanding the above, this option shall be transferable by
Participant to family members and related estate planning entities.

 

5.        Each Annual Option
Grant may be exercised by the Eligible Director under the following schedule except as otherwise provided in this Agreement. The
Option may not be exercised for a period of one (1) year from the date of grant. Following that one-year period, the Option vests
in equal one-third increments:

 

		-	one-third of the shares vest on the one-year
anniversary date from the date of grant; 

		-	one-third of the shares vest on the two-year
anniversary date from the date of grant; 

		-	one-third of the shares vest on the three-year
anniversary date from the date of grant. 

 

The Option may be exercised
as to any or all of the shares that are vested. An unvested portion of the Option shall only vest so long as:

 

		(1)	the Eligible Director remains a Director of the Company on the date that the applicable shares
vest,

 

		(2)	the Eligible Director retires or resigns from service as a Director of the Company in accordance
with the age and term limits of the Corporate Governance Guidelines of the Company, or

 

		(3)	the Eligible Director’s service as a Director of the Company is terminated for any other
reason and a majority of the members of the Board of Directors other than the Eligible Director consent to the continued vesting
of such portion of the Option in accordance with the original vesting schedule.

 

The vesting of the Option
also is subject to acceleration in the event of a Change in Control of Donaldson as defined in the Non-Employee Director Non-Qualified
Stock Option Agreement.

 

    	 

    	 

    

 

6.        The Participant may
exercise this option in whole or in part at any time during the term as specified above but not after ten years from the date of
grant; provided, that if the Participant dies, this option may be exercised within three years after death, but not after ten years
from the date granted, by the Participant's estate or by the person or persons who acquire the right to exercise this option by
bequest, inheritance or otherwise by reason of such death. Donaldson and the Participant recognize that this Agreement in no way
restricts the right of Donaldson to terminate the Participant's membership consistent with applicable Delaware laws.

 

7.        Subject to
the terms and conditions of this Agreement, the Option may be exercised only within the Option period by serving written notice
of exercise on Donaldson at its principal office which is as of this date located at 1400 W. 94th Street, Bloomington,
Minnesota, Attention: Assistant Treasurer or Treasurer, or such other forms of written or electronic notice as are designated by
the Company. The notice must state the number of shares being exercised and include payment in full of the purchase price. Payment
of the purchase price shall be made in cash or, with the approval of Donaldson (which may be given in its sole discretion), in
Common Stock of Donaldson having a fair market value equal to the full purchase price of the shares being acquired or a combination
of cash and such shares. For these purposes, the fair market value of Donaldson’s Common Stock as of any date shall be as
reasonably determined by Donaldson.

 

8.        In
the event of a Change in Control of Donaldson (as defined below), any outstanding options granted under this Agreement not
previously vested and exercisable shall become fully vested and exercisable and shall remain exercisable thereafter until they
are either exercised or expire by their terms. The term “Change in Control” shall have the following meaning assigned
to it in this Agreement. A “Change in Control” of Donaldson shall have occurred if (i) any “person” as such
term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (other
than Donaldson, any trustee or other fiduciary holding securities under an employee benefit plan of Donaldson or any corporation
owned, directly or indirectly, by the shareholders of Donaldson in substantially the same proportions as their ownership of stock
of Donaldson), either is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of Donaldson representing 30% or more of the combined voting power of Donaldson's then outstanding
securities, (ii) during any period of two consecutive years (not including any period prior to the effective date of this Master
Plan), individuals who at the beginning of such period constitute the Board of Directors of Donaldson (the “Board”),
and any new director (other than a director designated by a person who has entered into an agreement with Donaldson to effect a
transaction described in clause (i), (iii) or (iv) of this subparagraph) whose election by the Board or nomination for election
by Donaldson's shareholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either
were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for
any reason to constitute at least a majority thereof, unless the approval of the election or nomination for election of such new
directors was in connection with an actual or threatened election or proxy contest, (iii) the shareholders of Donaldson approve
a merger or consolidation of Donaldson with any other corporation, other than (A) a merger or consolidation which would result
in the voting securities of Donaldson outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving
entity) more than 80% of the combined voting power of the voting securities of Donaldson or such surviving entity outstanding immediately
after such merger or consolidation or (B) a merger or consolidation effected to implement a recapitalization of Donaldson (or similar
transaction) in which no “person” (as hereinabove defined) acquires more than 30% of the combined voting power of Donaldson’s
then outstanding securities or (iv) the shareholders of Donaldson approve a plan of complete liquidation of Donaldson or an agreement
for the sale or disposition by Donaldson of all or substantially all of Donaldson's assets
or any transaction having a similar effect.

 

9.        If all or
any portion of the option is exercised subsequent to any stock dividend or split, recapitalization, consolidation, or the like,
occurring after the date hereof, as a result of which securities of any class shall be issued in respect of outstanding shares
of Common Stock, or shares of Common Stock shall be changed into the same or a different number of shares or other securities of
the same or other class or classes, then the Board of Directors shall determine if any equitable adjustment is necessary to protect
the Participant against dilution and shall determine the terms of such adjustment, if any. In the case of any stock dividend or
split effected after the date hereof, the number of shares to be granted hereunder shall be automatically adjusted to prevent dilution
of the potential benefits intended to be made available hereunder.

 

IN WITNESS WHEREOF, Donaldson
and the Participant have duly executed this Agreement as of the day and year first above written.

 

 

	DONALDSON COMPANY, INC.	 	PARTICIPANT	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	By: 	 	 	 	 
	 	Name	 	Name	 
	Its:

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