Document:

Exhibit 10.1

 

TRANSITION
agreement and release

 

This
Transition Agreement and Release (this “Agreement”) is made as of January 15th, 2016 by and between Rick Rinaldo,
an individual (“Employee”) and Modern Systems Corporation, a Delaware corporation (formerly known as BluePhoenix
Solutions USA, Inc.), a wholly-owned subsidiary of ModSys International Ltd. (the “Company” and together with
Employee collectively referred to as the “Parties” or individually referred to as a “Party”).

 

RECITALS

 

WHEREAS,
Employee is an at-will employee of the Company;

 

WHEREAS,
Employee signed an offer letter which included provisions for confidentiality, non-competition and non-solicitation with the Company
on September 15th, 2013.

 

WHEREAS,
the Parties entered into a non-competition agreement, (the “Confidentiality Agreement”).

 

WHEREAS,
the employee requests to end employment at a future date and the Parties mutually agree to resolve any and all disputes, claims,
complaints, grievances, charges, actions, petitions, and demands that the Employee may have against the Company and any of the
Releasees (as defined in Section 9);

 

NOW,
THEREFORE, in order to amicably resolve any outstanding matters related to the employment relationship, and in consideration of
the mutual promises made herein, the Company and Employee hereby agree as follows:

 

1.       Continued
Employment; Separation Date; Resignation as Officer.

 

(a)
Employee will continue as an employee as of the Effective Date. Employee's last day of employment with the Company will be April
15th, 2016 (the "Separation Date"). During the time-period between the present time and the Separation Date
(the "Transition Period"), Employee agrees to perform transitional duties (the “Transitional Duties”) for
the Company including but not limited to: assistance and understanding with preparation of annual and quarterly financials with
SEC regulations as well as bank compliance, 2016 planning, hand-over of files, emails and guidance in order for the Company to
prepare of and be in compliance with (u) corporate obligations, (v) quarter/year-end accounting close process and filing reasonable
corporate tax returns if any during the Transition Period, (w) SEC reporting and filing of 10-K for 2015, (x) corporate audit,
(y) account/banking authorizations, and (z) as otherwise reasonably assigned by the Chief Executive Officer and reasonably agreed
to by Employee.

 

(b)
During the Transition Period, you will continue to serve as Chief Financial Officer of the Company
with the primary responsibility of performing Transition Duties and helping Company to remain in compliance with all regulatory
obligations. On the Separation Date, you will be deemed to have resigned as an officer and employee of the Company.

 

    
	Transition Agreement and Release
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(c)
On the Separation Date, unless otherwise mutually agreed upon by the parties, Employee will be deemed to have resigned voluntarily
from all Company positions held by him, without any further required action by the Employee; provided however, if the Company
requests, Employee will execute any documents necessary to reflect his resignation. The Company agrees to remove Employee as an
officer or authorized signatory of the Company (or any of its related entities) within ninety (90) days of the Separation Date
and further agrees Company will indemnify Employee during this period or for as long as Employee is listed as an officer of any
entity, as provided for in the General Corporation Law of the State of Delaware and at Section 6.01 of the Company’s By-laws,
in the event of a lawsuit or claim in which Employee is sued either jointly or separately for acts arising out of the Company’s
failure to timely remove Employee as an officer and signatory. 

 

2.       Consideration
including Additional Consideration.

 

(a)
Transition Period. Through the Separation Date, the Company agrees to pay Employee’s (i) normal base salary compensation,
less required deductions and withholdings, paid on the Company's standard payroll dates beginning with the first payroll date
following the Effective Date and (ii) all other benefits consistent with what has been historically paid (e.g. health care benefits,
vacation accrual, reimbursement of corporate expenses), but specifically excluding vesting of restricted stock units and bonus
opportunities (see subsections (b)(i) and (ii) below).

 

(b)
Supplement to Transition Agreement and Release. In consideration for the execution by Employee of a Supplement to Transition Agreement
and Release within twenty one (21) business days after Employee’s Separation Date, the form of which is attached hereto
as Exhibit A (the “Supplemental Release”), then as provided in the Supplemental Release, the Company shall provide
Employee with the additional consideration described in subsections (i), (ii) and (iii) below (collectively, “Additional
Consideration”).

 

(i)
Restricted Stock Units. Subject to subsection (iv) below, Company agrees Employee will continue to vest in his restricted stock
units through the Separation Date and prior to May 13, 2016 will transfer to Employee all vested shares; provided, further that
upon transfer, Employee shall be responsible for all tax withholding and reporting requirements under any IRC and SEC rules. For
avoidance of doubt, all remaining unvested restricted stock units will be forfeited as of the Separation Date.

 

(ii)
Bonus. Subject to subsection (iv) below, during the Transition Period and provided Employee meets the goals and objectives set
by the Chief Executive Officer during the Transition Period, as reasonably determined by the Chief Executive Officer, then, the
Company will pay Employee a lump sum bonus of $6,200.00.

 

(iii)

 

(iv)
Employee acknowledges and agrees that continued employment through the Separation Date and the Additional Consideration provided
for herein constitutes adequate legal consideration for the promises and representations made by Employee in the Agreement. Furthermore,
with respect to the Additional Consideration, receipt of any Restricted Stock Units (as provided in subsection (i)) and any bonus
(as provided in subsection (ii)), is contingent upon Employee complying with the following conditions: (i) Employee must sign
the Supplement to Transition Agreement and Release ("Supplemental Release") on or within 21 days following the Separation
Date; (ii) Employee must not revoke the Supplemental Release; and (iii) the Supplemental Release must become effective and enforceable
on the eighth day after Employee signs the Supplemental Release (“Effective Date of the Supplemental Release”), (iv)
Employee must continue to abide by the surviving provisions of the Confidentiality Agreement; (v) Employee must continue to abide
by the covenants not to compete or solicit described in the Confidentiality Agreement.

 

    
	Transition Agreement and Release
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3.       Reaffirmation.
Employee and the Company agree to execute the attached Supplemental Release on or within twenty-one days after the Separation
Date in order to extend and reaffirm the promises and covenants made by them in this Agreement, including but not limited to the
mutual general release of all claims. If Employee fails to execute the Supplemental Release on or within twenty-one days after
the Separation Date, or effectively revokes the acceptance of the Supplemental Release, Employee shall not receive the Additional
Consideration.

 

4.       Employee
acknowledges that the additional vesting of restricted stock units described above in Section 2 (c)(i) is over and above anything
owed to him by law, contract or under the policies of the Company, and that it is being provided to him expressly in exchange
for Employee providing the Transition Services and entering into this Agreement including the Supplemental Release.

 

5.       Payment
of Salary, Benefits Prior to Effective Date. Employee acknowledges and represents that the Company has paid all salary,
wages, bonuses, paid time off, housing allowances, relocation costs, interest, severance, stock, stock options, outplacement costs,
fees, commissions and any and all other benefits and compensation due to Employee as of the Effective Date. Accrued vacation through
January 30, 2016 will be paid by the company in the January 30 payroll and accrued vacation from January 31 through the termination
date will be paid in the final paycheck on April 15, 2016

 

6.       Separation
from Employment. Employee acknowledges and agrees that employment with or service to the Company in any capacity ends on the
Separation Date. During the Transition Period Employee shall continue to receive his current base salary and benefits provided
in Section 2(a) above up to and including the Separation Date. Employee claims and shall claim no further right to employment
by the Company beyond the Separation Date. Further, the Parties understand and acknowledge that this Agreement and the Supplemental
Release are intended to represent Employee’s sole entitlement after the Effective Date to payments and benefits in connection
with the termination of employment.

 

7.       Confidentiality
Agreement. Employee shall continue to comply with the terms and conditions of the Confidentiality
Agreement, and maintain the confidentiality of all of the Company’s confidential and proprietary information. Employee shall
also return to the Company all of the Company’s property, including all confidential and proprietary information, and all
documents and information that Employee obtained in connection with his employment with the Company, on or before the Separation
Date. 

 

8.       Confidentiality.
Employee agrees to maintain in complete confidence the existence of this Agreement, the contents and terms of this Agreement,
and the consideration for this Agreement. Except as required by law, Employee may disclose Information only to his immediate family
members, the arbitrator or a court of competent jurisdiction in any proceedings to enforce the terms of this Agreement, Employee’s
legal counsel, and Employee’s accountant and any professional tax advisor to the extent that they need to know the information
contained herein in order to provide advice on tax treatment or to prepare tax returns, and must use commercially reasonable efforts
to prevent disclosure of any such information to all other third parties.

 

    
	Transition Agreement and Release
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9.       Release
of Claims. Employee agrees that the consideration described in this Agreement represents settlement in full of all
outstanding obligations owed to Employee by the Company and its current and former officers, directors, employees, agents, investors,
attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators, and subsidiaries, parent, subsidiaries,
and predecessor and successor corporations and assigns (collectively, the “Releasees”). Employee, on his own behalf
and on behalf of his respective heirs, family members, executors, agents, and assigns, hereby and forever releases the Releasees
from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty,
obligation, or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected,
that Employee may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred
up until and including the Effective Date, including, without limitation:

 

(a)       any
and all claims relating to or arising from Employee’s employment relationship with the Company and the termination of that
relationship;

 

(b)       any
and all claims relating to, or arising from, Employee’s rights with respect to any restricted stock units of the Company,
including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable
state corporate law, and securities fraud under any state or federal law;

 

(c)       any
and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination; harassment; retaliation;
breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory
estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent
or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander;
negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits;

 

(d)       any
and all claims for violation of any federal, state or municipal statute, including, but not limited to, Title VII of the Civil
Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973, Age Discrimination in Employment Act of 1967;
the Americans with Disabilities Act of 1990; the Fair Labor Standards Act, except as prohibited by law; the Fair Credit Reporting
Act; the Employee Retirement Income Security Act of 1974; the Family and Medical Leave Act, except as prohibited by law; the Worker
Adjustment and Retraining Notification Act; the Older Workers Benefit Protection Act; the Sarbanes-Oxley Act of 2002; and any
of the laws of the State of Washington, and any other state or local law or ordinance relating to employment discrimination;

 

(e)       any
and all claims for violation of the federal or any state constitution;

 

(f)       any
and all claims arising out of any other laws and regulations relating to employment or employment discrimination;

 

(g)      any
claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other tax treatment of any
of the proceeds received by Employee as a result of the Agreement; and

 

(h)       any
and all claims for attorneys’ fees and costs.

 

Employee
agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general release
as to the matters released. This release does not extend to any obligations incurred under the Agreement. This Agreement does
not release claims that cannot be released as a matter of law.

 

    
	Transition Agreement and Release
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10.       Acknowledgment
of Waiver of Claims under ADEA. Employee understands and acknowledges that he is waiving and releasing any rights he may have
under the Age Discrimination in Employment Act of 1967 (“ADEA”), and that this waiver and release is knowing and voluntary.
Employee understands and agrees that this waiver and release does not apply to any rights or claims that may arise under the ADEA
after the Separation Date. Employee understands and acknowledges that the consideration given for this waiver and release is in
addition to anything of value to which Employee was already entitled. Employee further understands and acknowledges that he has
been advised by this writing that: (a) he should consult with an attorney prior to executing this Agreement; (b) he has twenty
one (21) days within which to consider this Agreement, (c) he has seven (7) days following the execution of this Agreement to
revoke this Agreement (the “Revocation Period”) and any revocation must be in writing and must be received by the
company during the Revocation Period; and (d) this Agreement shall not be effective until the Revocation Period has expired. Nothing
in the Agreement prevents or precludes Employee from challenging or seeking a determination in good faith of the validity of this
waiver under the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized
by federal law. In the event Employee signs this Agreement and returns it to the Company in less than the periods identified above,
Employee hereby acknowledges that he has freely and voluntarily chosen to waive the time period allotted for considering the Agreement.

 

11.       No
Pending or Future Lawsuits. Employee represents that he has not filed or otherwise pursued any charges, complaints or claims
of any nature and there are no lawsuits, claims, or actions pending in his name, or on behalf of any other person or entity, against
the Company or any of the other Releasees. Employee also represents that, except to the extent permitted by law, he does not intend
and will not bring any claims on his own behalf or on behalf of any other person or entity against the Company or any of the other
Releasees.

 

12.      
No Cooperation. Employee further agrees that he will not knowingly encourage, counsel, or assist any attorneys or their
clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third
party against any of the Releasees, unless under a subpoena or other court order to do so or as related directly to the ADEA waiver
in this Agreement. Employee agrees both to immediately notify the Company upon receipt of any such subpoena or court order, and
to furnish, within three (3) business days of its receipt, a copy of such subpoena or other court order. If approached by anyone
for counsel or assistance in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints
against any of the Releasees, Employee shall state no more than that he cannot provide counsel or assistance.

 

13.       Non-Disparagement.
Employee and the Company (for this purpose, the Company is deemed to be the officers and individual members of the Board of
Directors) each agree to refrain from any disparagement, defamation, libel, or slander of the other (and in the case of Employee,
any of the Releasees).

 

14.       Breach.
Employee acknowledges and agrees that any material breach of this Agreement, unless such breach constitutes a legal action
by Employee challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA, or of any
provision of the Confidentiality Agreement shall entitle the Company to injunctive relief without a bond (or the lowest bond permissible
under applicable law), other appropriate remedies, and damages.

 

15.       Damages
for Breach.  Employee acknowledges that the obligations of the non-disparagement, confidentiality, and cooperation
sections set forth above are mutual as described by their terms, and in any event are material parts of the consideration and
inducement to the Company to provide any of the consideration set forth herein.  Further, Employee agrees that the harm
to the Company from any breach of the obligations of those provisions may be wholly or partially irreparable, and Employee agrees
that such obligations may be enforced by injunctive relief and other appropriate remedies, as well as by damages.

 

    
	Transition Agreement and Release
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16.       Costs.
The Parties shall each bear their own costs, attorneys’ fees, and other fees incurred in connection with the preparation
of this Agreement except as set forth in the Agreement.

 

17.       Section
Headings. Section headings in this Agreement are included for convenience of reference only and shall not be considered a
part of this Agreement for any other purpose.

 

18.       Severability.
The provisions of this Agreement are severable, and if any part is found to be unlawful or unenforceable, the other provisions
of this Agreement shall remain fully valid and enforceable to the maximum extent consistent with applicable law. Any court or
arbitrator having jurisdiction over such matters shall have the power to reform such unlawful or unenforceable provision to the
extent necessary for such provision to be enforceable to the fullest extent under applicable law.

 

19.       Governing
Law; Consent to Jurisdiction. This Agreement shall be governed by the laws of the State of Washington, without regard to its
choice of law provisions. The parties hereby irrevocably and unconditionally agree to submit any legal action or proceeding relating
to the subject matter of this Agreement to the non-exclusive general jurisdiction of the courts of the State of Washington located
in King County and the courts of the United States located in the Western District of Washington and, in any such action or proceeding,
consent to jurisdiction in such courts and waive any objection to the venue in such court.

 

20.       Tax
Consequences. The Company makes no representations or warranties with respect to the tax consequences of the payment of any
sums to Employee under the terms of this Agreement. Employee agrees and understands that he is responsible for payment of any
local, state and/or federal taxes on the sums paid hereunder by the Company and any penalties or assessments thereon. Employee
further agrees to indemnify and hold the Company harmless from any claims, demands, deficiencies, penalties, assessments, executions,
judgments, or recoveries by any government agency against the Company for any amounts claimed due on account of Employee’s
failure to pay federal or state taxes or damages sustained by the Company by reason of any such claims, including reasonable attorney
fees.

 

21.       No
Admission of Liability. The Parties understand and acknowledge that this Agreement constitutes a compromise and settlement
of disputed claims. No action taken by the Parties, previously or in connection with this Agreement, shall be construed to be:
(a) an admission of the truth or falsity of any claims made, or (b) an admission by either party of any fault or liability whatsoever
to the other party or to any third party.

 

22.       No
Oral Modification. Any modification or amendment of this Agreement, or additional obligation assumed by either party in connection
with this Agreement, shall be effective only if placed in writing and signed by both Parties or their authorized representatives.

 

23.       Attorney
Fees. In the event that either Party brings an action to enforce or effect its rights under this Agreement, the prevailing
party shall be entitled to recover its costs and expenses, including the costs of mediation, arbitration, litigation, court fees,
plus reasonable attorneys’ fees, incurred in connection with such an action.

 

24.       Effective
Date. This Agreement is effective after it has been signed by both parties and after seven (7) days have passed following
the date Employee signed the Agreement (the “Effective Date”).

 

    
	Transition Agreement and Release
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25.       Entire
Agreement. This Agreement represents the entire agreement and understanding between the Company and Employee concerning the
subject matter of this Agreement and Employee’s employment with and separation from the Company and the events leading thereto
and associated therewith, and supersedes and replaces any and all prior agreements and understandings concerning the subject matter
of this Agreement and Employee’s relationship with the Company, with the exception of the Confidentiality Agreement.

 

26.       Knowing
and Voluntary Agreement. Employee represents that he has had an opportunity to consult with an attorney, and has carefully
read and understands the scope and effect of the provisions of this Agreement. Employee has not relied upon any representations
or statements made by the Company that are not specifically set forth in this Agreement. Employee understands and agrees that
he executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of the Company or any third
party, with the full intent of releasing all of his claims against the Company and any of the other Releasees. Employee acknowledges
that:

 

(a)       he
has read this Agreement;

 

(b)       he
has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of his own choice or has
elected not to retain legal counsel;

 

(c)       he
has been given 21 days within which to consider this Agreement and understands he may elect to execute prior to 21 days; and

 

(d)       he
understands the terms and consequences of this Agreement and of the releases it contains and he is fully aware of the legal and
binding effect of this Agreement.

 

If this Agreement is acceptable
to Employee, please sign below within twenty-one (21) days of receipt of this Agreement. If Employee does not sign this Agreement
and return it to the Company within the aforementioned timeframe, the Company's offer to provide the consideration herein will
expire.

 

PLEASE
READ CAREFULLY. THIS IS A VOLUNTARY RELEASE THAT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

 

	MODERN
    SYSTEMS CORPORATION	 	RICK
RINALDO
	 	 	 
	behalf
    of [_________________]	 	 	 
	 	 	 	 	 
	/s/ Matt Bell	 	/s/
    Rick Rinaldo
	By:	Matt
    Bell	 	Rick
    Rinaldo
	Its:	 	 	 	 
	 	 	 	 	 
	Date:	January
    14, 2016	 	Date:	January
    14, 2016

 

    
	Transition Agreement and Release
 Page 7 of 7	 

     

    

 

EXHIBIT
A

 

SUPPLEMENT
TO TRANSITION AGREEMENT AND RELEASE

 

This
Supplement to Transition Agreement and Release (this “Supplemental Release”) is made by and between Rick Rinaldo,
an individual (“Employee”) and Modern Systems Corporation, a Delaware corporation (formerly known as BluePhoenix Solutions
USA, Inc.), a wholly-owned subsidiary of ModSys International Ltd. (the “Company” and together with Employee collectively
referred to as the “Parties” or individually referred to as a “Party”) and amends the Transition Agreement
and Release ("Agreement") by extending the promises and agreements of each and every section and subsection, except
Section 11 and its subparts, of the Agreement through the Separation Date. Terms not defined in this Supplemental Release have
the meaning ascribed in the Agreement.

 

1.       Acknowledgment
of Waiver of Claims under ADEA. This Supplemental Release is intended to satisfy the Age Discrimination in Employment Act
of 1967 (“ADEA”). Employee is advised to consult with an attorney before executing this Supplemental Release.

 

(a)       Acknowledgement/Time
to Consider. Employee acknowledges and agrees that (a) he has read and understands the terms of this Supplemental Release;
(b) he has been advised to consult with an attorney; (c) that he has obtained and considered such legal counsel as he deems necessary;
(d) that he has been given twenty-one (21) days to consider whether or not to sign this Supplemental Release (although Employee
may elect not to use the full 21-day period at his option); and (e) that by signing this Supplemental Release, Employee acknowledges
that he does so freely, knowingly, and voluntarily.

 

(b)       Revocation/Effective
Date. This Supplemental Release shall not become effective or enforceable until the eighth day after Employee signs this Supplemental
Release. In other words, Employee may revoke his acceptance of this Supplemental Release within 7 days after he signs it. Employee's
revocation must be in writing and received by Matt Bell, Chief Executive Officer, by 5:00 p.m. Pacific Time (with a copy to Adam
Goldblatt, Company counsel at adam@agoldblatt.com), on or before the seventh day after it is signed to be effective. If Employee
does not revoke his acceptance on or before that date, his acceptance of this Supplemental Release shall become binding and enforceable
on the eighth day ("Effective Date of the Supplemental Release").

 

(c)       Preserved
Rights of Employee. This Supplemental Release does not waive or release any rights or claims that Employee may have under
the ADEA that arise after the execution of this Supplemental Release. In addition, this Supplemental Release does not prohibit
Employee from seeking relief in the event of a breach of the Agreement, or from challenging the validity of waiver and release
of claims under the ADEA.

 

The
parties to this Supplemental Release have read the foregoing Supplemental Release and fully understand each and every provision
contained herein. Wherefore, the parties have FREELY AND VOLUNTARILY executed this SUPPLEMENTAL RELEASE on the dates shown below.

 

	MODERN
    SYSTEMS CORPORATION	 	Rick
    Rinaldo, an individual
	 	 	 
	behalf
    of [_________________]	 	 	 
	 	 	 	 
	/s/ Matt Bell	 	/s/
    Rick Rinaldo
	By:	Matt
Bell	 	Rick
    Rinaldo
	Its:	 	 	 	 
	 	 	 	 	 
	Date:  	January
    14, 2016	 	Date:  	January
    14, 2016

 

 

Exhibit A to Transition Agreement and Release10-K

Exhibit 10.16
LENNAR CORPORATION
2016 TARGET BONUS OPPORTUNITY
CHIEF EXECUTIVE OFFICER

	
		
	NAME
	TARGET AWARD OPPORTUNITY [1]

	Stuart Miller
	1.00% of Lennar Corporation Pretax Income [2]

[1] The 2016 Target Bonus Opportunity program, under the 2012 Incentive Compensation Plan, is intended to encourage superior performance and achievement of the Company’s strategic business objectives.  The bonus (if any) awarded under this plan may be adjusted downward at the sole discretion of the Compensation Committee of the Board of Directors, based on its assessment of the quantitative and qualitative performance of the CEO.  Factors that may cause an adjustment include, but are not limited to, a comparison of the Company’s actual results (sales, closings, starts, etc) to budget, inventory management, corporate governance, customer satisfaction, and peer/competitor comparisons.      

[2] Per our 2012 Incentive Compensation Plan (the “Plan”), Pretax income shall take into account and adjust for goodwill charges, losses or expenses on early retirement of debt, and impairment charges, in accordance with the Plan. Pretax Income is calculated as Net Earnings attributable to Lennar plus/minus income tax expense/benefit.

PAYMENTS 

		
	•
	The payment of any bonus shall be made no later than April 15th of the year following the fiscal year to which the bonus calculation applies, or if such day is not a business day, the next business day. 

		
	•
	100% of the bonus payment is contingent on the recipient being employed with the Company on the applicable payment date. No bonus will be earned or paid unless the participant remains employed in good standing through such date.

My participation in this 2016 Target Bonus Opportunity program shall not constitute a contract of employment or for wages between me and the Company or otherwise entitle me to remain in the employ of the Company. The Target Bonus Opportunity will be adjusted annually to be in alignment with Company goals.

I affirm that the Alternative Dispute Resolution Policy set forth in Section 1.8 of the Associate Reference Guide shall apply to and govern all disputes 1) under this Target Bonus Opportunity and 2) related to my employment.

I also understand and agree that for twelve (12) months following termination of my employment with Lennar, I will not, directly or indirectly, employ or offer employment to any Lennar Associate or solicit, recruit, influence or encourage any Lennar Associate to terminate his or her employment with Lennar.  Lennar Associate shall mean any person who is, or who during the three (3) month period prior to such time had been, an employee of Lennar. 

The Company and Associate acknowledge and agree that bonuses are not automatic, but are awarded for excellent individual performance, not just excellent market conditions.  Therefore, the Compensation Committee of the Board of Directors may reduce any bonus amount at its sole discretion under any circumstance, and all such decisions will be final and binding.

	
			
	/S/    STUART A. MILLER
	 
	/S/    STEVEN L. GERARD

	1/15/2016
	 
	1/13/2016

	Stuart Miller
Chief Executive Officer
Lennar Corporation
	 
	Steven Gerard
Chairman, Compensation Committee
Lennar Corporation

LENNAR CORPORATION
2016 TARGET BONUS OPPORTUNITY
PRESIDENT

	
		
	NAME
	TARGET AWARD OPPORTUNITY [1]

	Rick Beckwitt
	0.92% of Lennar Corporation Pretax Income [2]

[1] The 2016 Target Bonus Opportunity program, under the 2012 Incentive Compensation Plan, is intended to encourage superior performance and achievement of the Company’s strategic business objectives.  The bonus (if any) awarded under this plan may be adjusted downward at the sole discretion of the Compensation Committee of the Board of Directors, based on its assessment of the quantitative and qualitative performance of the Associate.  Factors that may cause an adjustment include, but are not limited to, a comparison of the Company’s actual results (sales, closings, starts, etc) to budget, inventory management, corporate governance, customer satisfaction, and peer/competitor comparisons.      

[2] Per our 2012 Incentive Compensation Plan (the “Plan”), Pretax income shall take into account and adjust for goodwill charges, losses or expenses on early retirement of debt, and impairment charges, in accordance with the Plan. Pretax Income is calculated as Net Earnings attributable to Lennar plus/minus income tax expense/benefit.

PAYMENTS 

		
	•
	The payment of any bonus shall be made no later than April 15th of the year following the fiscal year to which the bonus calculation applies, or if such day is not a business day, the next business day. 

		
	•
	100% of the bonus payment is contingent on the recipient being employed with the Company on the applicable payment date.  No bonus will be earned or paid unless the participant remains employed in good standing through such date.

My participation in this 2016 Target Bonus Opportunity program shall not constitute a contract of employment or for wages between me and the Company or otherwise entitle me to remain in the employ of the Company.  The Target Bonus Opportunity will be adjusted annually to be in alignment with Company goals.

I affirm that the Alternative Dispute Resolution Policy set forth in Section 1.8 of the Associate Reference Guide shall apply to and govern all disputes 1) under this Target Bonus Opportunity and 2) related to my employment.

I also understand and agree that for twelve (12) months following termination of my employment with Lennar, I will not, directly or indirectly, employ or offer employment to any Lennar Associate or solicit, recruit, influence or encourage any Lennar Associate to terminate his or her employment with Lennar.  Lennar Associate shall mean any person who is, or who during the three (3) month period prior to such time had been, an employee of Lennar. 

The Company and Associate acknowledge and agree that bonuses are not automatic, but are awarded for excellent individual performance, not just excellent market conditions.  Therefore, the Compensation Committee of the Board of Directors may reduce any bonus amount at its sole discretion under any circumstance, and all such decisions will be final and binding.

	
			
	/S/    RICK BECKWITT
	 
	/S/    STUART A. MILLER

	1/13/2016
	 
	 

	Rick Beckwitt
President
Lennar Corporation
	 
	Stuart Miller
Chief Executive Officer
Lennar Corporation

LENNAR CORPORATION
2016 TARGET BONUS OPPORTUNITY
CHIEF OPERATING OFFICER

	
		
	NAME
	TARGET AWARD OPPORTUNITY [1]

	Jon Jaffe
	0.92% of Lennar Corporation Pretax Income [2]

[1] The 2016 Target Bonus Opportunity program, under the 2012 Incentive Compensation Plan, is intended to encourage superior performance and achievement of the Company’s strategic business objectives.  The bonus (if any) awarded under this plan may be adjusted downward at the sole discretion of the Compensation Committee of the Board of Directors, based on its assessment of the quantitative and qualitative performance of the Associate.  Factors that may cause an adjustment include, but are not limited to, a comparison of the Company’s actual results (sales, closings, starts, etc) to budget, inventory management, corporate governance, customer satisfaction, and peer/competitor comparisons.      

[2] Per our 2012 Incentive Compensation Plan (the “Plan”), Pretax income shall take into account and adjust for goodwill charges, losses or expenses on early retirement of debt, and impairment charges, in accordance with the Plan. Pretax Income is calculated as Net Earnings attributable to Lennar plus/minus income tax expense/benefit.

PAYMENTS 

		
	•
	The payment of any bonus shall be made no later than April 15th of the year following the fiscal year to which the bonus calculation applies, or if such day is not a business day, the next business day. 

		
	•
	100% of the bonus payment is contingent on the recipient being employed with the Company on the applicable payment date.  No bonus will be earned or paid unless the participant remains employed in good standing through such date.

My participation in this 2016 Target Bonus Opportunity program shall not constitute a contract of employment or for wages between me and the Company or otherwise entitle me to remain in the employ of the Company.  The Target Bonus Opportunity will be adjusted annually to be in alignment with Company goals.

I affirm that the Alternative Dispute Resolution Policy set forth in Section 1.8 of the Associate Reference Guide shall apply to and govern all disputes 1) under this Target Bonus Opportunity and 2) related to my employment.

I also understand and agree that for twelve (12) months following termination of my employment with Lennar, I will not, directly or indirectly, employ or offer employment to any Lennar Associate or solicit, recruit, influence or encourage any Lennar Associate to terminate his or her employment with Lennar.  Lennar Associate shall mean any person who is, or who during the three (3) month period prior to such time had been, an employee of Lennar. 

The Company and Associate acknowledge and agree that bonuses are not automatic, but are awarded for excellent individual performance, not just excellent market conditions.  Therefore, the Compensation Committee of the Board of Directors may reduce any bonus amount at its sole discretion under any circumstance, and all such decisions will be final and binding.

	
			
	/S/    JON JAFFE
	 
	/S/    STUART A. MILLER

	1/13/2016
	 
	 

	Jon Jaffe
Chief Operating Officer
Lennar Corporation
	 
	Stuart Miller
Chief Executive Officer
Lennar Corporation

LENNAR CORPORATION
2016 TARGET BONUS OPPORTUNITY
SR. CORPORATE MANAGEMENTASSOCIATES

	
			
	NAME
	DEPARTMENT
	TARGET AWARD OPPORTUNITY [1]

	Bruce Gross
	Executive
	100% of base salary + 1.00% of LFS Pretax Income

The following are measured to determine % of target paid out:

	
				
	PERFORMANCE CRITERIA 
(see definitions section for more detail)
	PERCENT 
OF TARGET AWARD
	PERFORMANCE LEVELS/ 
TARGET BONUS OPPORTUNITY

	THRESHOLD
	% OF TARGET

	Individual Performance — Based on annual Performance Appraisal review determined at the end of the fiscal year by current supervisor.  
	60%
	Good 
Very Good 
Excellent
	20%
40% 
60% 

	Corporate Governance, Company Policy and Procedure Adherence, and Internal Audit Evaluation — As determined by the Corporate Governance Committee
	40%
	Good 
Very Good 
Excellent
	10%
25% 
40%

	TOTAL [1]
	100%
	 
	 

	ADDITIONAL BONUS POTENTIAL:
	 
	 

	LFS Pretax Income
	1.00%
	1.00% of LFS Pretax Income

	Pretax Achievement vs. Plan Upside Potential [2]
	Up to +50%
	% of upside target earned will be adjusted pro-rata between 0% and 50% of Associate’s Target based on Pretax achievement of 100% to 110% of Business Plan. Consideration will also be given for Associates’ contribution towards significant value creation transaction(s) for the Company.

[1] The 2016 Target Bonus Opportunity is intended to encourage superior performance and achievement of the Company’s strategic business objectives.  The bonus (if any) awarded under this plan may be adjusted downward at the sole discretion of the Compensation Committee of the Board of Directors, based on its assessment of the quantitative and qualitative performance of the associate.  Factors that may cause an adjustment include, but are not limited to, a comparison of the associate’s performance to others in the program, economic or market considerations, etc. 

[2] Upside Potential: % of Target earned will be adjusted pro-rata between 0% and 50% of Target based on Pretax achievement of 100% to 110% of Business Plan (i.e. 105% of Business Plan Achievement would result in an additional 25% of Target Earned, and 110% of Business Plan Achievement would result in an additional 50% of Target Earned). Consideration will also be given for Associates’ contribution towards significant value creation transaction(s) for the Company. Per our 2012 Incentive Compensation Plan (the “Plan”), Pretax income shall take into account and adjust for goodwill charges, losses or expenses on early retirement of debt, and impairment charges, in accordance with the Plan. Pretax Income is calculated as Net Earnings attributable to Lennar plus/minus income tax expense/benefit.

PAYMENTS 
		
	•
	The payment of any bonus shall be made no later than April 15th of the year following the fiscal year to which the bonus calculation applies, or if such day is not a business day, the next business day. 

		
	•
	100% of the bonus payment is contingent on the recipient being employed with the Company on the applicable payment date.  No bonus will be earned or paid unless the participant remains employed in good standing through such date.  

My participation in this 2016 Target Bonus Opportunity shall not constitute a contract of employment or for wages between me and the Company or otherwise entitle me to remain in the employ of the Company.  The Target Bonus Opportunity will be adjusted annually to be in alignment with Company goals.  

I affirm that the Alternative Dispute Resolution Policy set forth in Section 1.8 of the Associate Reference Guide shall apply to and govern all disputes 1) under this Target Bonus Opportunity and 2) related to my employment.  

I also understand and agree that for twelve (12) months following termination of my employment with Lennar, I will not, directly or indirectly, employ or offer employment to any Lennar Associate or solicit, recruit, influence or encourage any Lennar Associate to terminate his or her employment with Lennar.  Lennar Associate shall mean any person who is, or who during the three (3) month period prior to such time had been, an employee of Lennar. 

The Company and Associate acknowledge and agree that bonuses are not automatic, but are awarded for excellent individual performance, not just excellent market conditions.  Therefore, the Compensation Committee of the Board of Directors may reduce any bonus amount at its sole discretion under any circumstance, and all such decisions will be final and binding.
	
			
	/S/    BRUCE GROSS
	 
	/S/    STUART A. MILLER

	1/15/2016
	 
	 

	Bruce Gross
Chief Financial Officer
Lennar Corporation
	 
	Stuart Miller
Chief Executive Officer
Lennar Corporation

LENNAR CORPORATION
2016 TARGET BONUS OPPORTUNITY
SR. CORPORATE MANAGEMENTASSOCIATES

	
			
	NAME
	DEPARTMENT
	TARGET AWARD OPPORTUNITY [1]

	Mark Sustana
	Legal
	100% of base salary

The following are measured to determine % of target paid out:

	
				
	PERFORMANCE CRITERIA 
(see definitions section for more detail)
	PERCENT 
OF TARGET AWARD
	PERFORMANCE LEVELS/ 
TARGET BONUS OPPORTUNITY

	THRESHOLD
	% OF TARGET

	Individual Performance — Based on annual Performance Appraisal review determined at the end of the fiscal year by current supervisor.  
	60%
	Good 
Very Good 
Excellent
	20%
40% 
60% 

	Corporate Governance, Company Policy and Procedure Adherence, and Internal Audit Evaluation — As determined by the Corporate Governance Committee
	40%
	Good 
Very Good 
Excellent
	10%
25% 
40%

	TOTAL [1]
	100%
	 
	 

	UPSIDE POTENTIAL [2]
	 
	 

	Pretax achievement vs. Plan
	Up to +50%
	% of upside target earned will be adjusted pro-rata between 0% and 50% of Associate’s Target based on Pretax achievement of 100% to 110% of Business Plan. Consideration will also be given for Associates’ contribution towards significant value creation transaction(s) for the Company.

[1] The 2016 Target Bonus Opportunity is intended to encourage superior performance and achievement of the Company’s strategic business objectives.  The bonus (if any) awarded under this plan may be adjusted downward at the sole discretion of the Compensation Committee of the Board of Directors, based on its assessment of the quantitative and qualitative performance of the associate.  Factors that may cause an adjustment include, but are not limited to, a comparison of the associate’s performance to others in the program, economic or market considerations, etc. 

[2] Upside Potential: % of Target earned will be adjusted pro-rata between 0% and 50% of Target based on Pretax achievement of 100% to 110% of Business Plan (i.e. 105% of Business Plan Achievement would result in an additional 25% of Target Earned, and 110% of Business Plan Achievement would result in an additional 50% of Target Earned). Consideration will also be given for Associates’ contribution towards significant value creation transaction(s) for the Company. Per our 2012 Incentive Compensation Plan (the “Plan”), Pretax income shall take into account and adjust for goodwill charges, losses or expenses on early retirement of debt, and impairment charges, in accordance with the Plan. Pretax Income is calculated as Net Earnings attributable to Lennar plus/minus income tax expense/benefit.

PAYMENTS 
		
	•
	The payment of any bonus shall be made no later than April 15th of the year following the fiscal year to which the bonus calculation applies, or if such day is not a business day, the next business day. 

		
	•
	100% of the bonus payment is contingent on the recipient being employed with the Company on the applicable payment date.  No bonus will be earned or paid unless the participant remains employed in good standing through such date.  

My participation in this 2016 Target Bonus Opportunity program shall not constitute a contract of employment or for wages between me and the Company or otherwise entitle me to remain in the employ of the Company.  The Target Bonus Opportunity will be adjusted annually to be in alignment with Company goals.

I affirm that the Alternative Dispute Resolution Policy set forth in Section 1.8 of the Associate Reference Guide shall apply to and govern all disputes 1) under this Target Bonus Opportunity and 2) related to my employment.  

I also understand and agree that for twelve (12) months following termination of my employment with Lennar, I will not, directly or indirectly, employ or offer employment to any Lennar Associate or solicit, recruit, influence or encourage any Lennar Associate to terminate his or her employment with Lennar.  Lennar Associate shall mean any person who is, or who during the three (3) month period prior to such time had been, an employee of Lennar. 

The Company and Associate acknowledge and agree that bonuses are not automatic, but are awarded for excellent individual performance, not just excellent market conditions.  Therefore, the Compensation Committee of the Board of Directors may reduce any bonus amount at its sole discretion under any circumstance, and all such decisions will be final and binding.

	
					
	/S/    MARK SUSTANA
	 
	/S/    STUART A. MILLER
	 
	/S/    BRUCE GROSS

	1/13/2016
	 
	 
	 
	 

	Mark Sustana
General Counsel
Lennar Corporation
	 
	Stuart Miller
Chief Executive Officer
Lennar Corporation
	 
	

Bruce Gross
Vice President & Chief Financial Officer
Lennar Corporation

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