Document:

EX-10.3

Ex. 10.3

VIASPACE INC. 

SUBSCRIPTION AGREEMENT

THIS SUBSCRIPTION AGREEMENT (this “Agreement”), made as of this 22nd day of
December 2015, by and between VIASPACE Inc., a Nevada corporation (the “Company”), and the
undersigned (the “Subscriber”).

1) Subscription; Purchase Price.

a) Subject to the terms and conditions herein, the Subscriber, intending to be legally bound,
hereby, irrevocably agrees to purchase from the Company 15,000,000 shares of common stock
(“Shares”) at the “Purchase Price Per Share”. The “Purchase Price per Share shall be equal
to 20% of the Average Trading Price (defined as the daily closing price) as reported by the
principal trading exchange on which the Company’s Common Stock is traded for the twenty (20)
trading days preceding the date of this agreement which the parties agree is $0.0004. The aggregate
purchase price of the Shares shall be $6,000.00 (the “Purchase Price”).

b) The Subscriber hereby acknowledges and agrees that: (i) subject to Section 3 below, this
Agreement shall not be deemed to have been accepted by the Company until the Company indicates its
acceptance by returning to Subscriber a copy of this Agreement executed by an authorized
representative of the Company; and (ii) acceptance by the Company of this Agreement is conditioned
upon the information and representations and warranties of Subscriber contained herein being
complete, true and correct as of the date hereof.

2)  Payment of Purchase Price. 

a) Simultaneously with Subscriber’s receipt of a copy of this Agreement accepted and executed
by an authorized representative of the Company, the Purchase Price shall be due and payable by the
Subscriber. Such payment shall be made to the Company’s operating account. These funds may be
used by the Company from time to time as the Officers of the Company deems appropriate, in the sole
discretion of the Officers of the Company and without notice to the Subscriber.

3) Deliveries. The Subscriber shall deliver or cause to be delivered to the Company
the following:

a) this Agreement duly executed by Subscriber;

b) a complete, accurate and executed confidential Accredited Investor Questionnaire, attached
hereto as Exhibit A; and

c) the Subscriber’s aggregate Purchase Price, payable by personal or business cashier’s check,
wire transfer of immediately available funds or money order made payable to “VIASPACE Inc.”. If
paying the Purchase Price by wire transfer, Subscriber should deliver said wire transfer to:

	 	 	 
	Bank Name:

Bank Address:

ABA:

SWIFT-BIC (International):

Account Number:

Account Name:

Required Information:

	 	Bank of America, N.A.

100 West 33rd Street, New York, NY 10001

026009593

BOFAUS3N

6550113516

Merrill Lynch

Further Credit to VIASPACE Inc. Account 7BR-01G34

4) Closing Conditions. The obligations of the Company hereunder in connection with
the acceptance of this subscription are subject to the following conditions being met:

a) the accuracy in all material respects when made and on the date hereof of the
representations and warranties of the Subscriber contained herein and in the Accredited Investor
Questionnaire attached hereto as Exhibit A;

b) all obligations, covenants and agreements of the Subscriber required to be performed at or
prior to the date hereof shall have been performed;

c) the delivery by the Subscriber of the items set forth in Section 3 above.

5) Reserved.

6) Representations, Warranties and Agreements of Subscriber. The Subscriber hereby
acknowledges, represents and warrants to the Company as follows:

a) If the Subscriber is an entity, the Subscriber is duly organized, validly existing and in
good standing under the laws of the jurisdiction of its organization with full right, corporate or
partnership power and authority to enter into and to consummate the transactions contemplated by
this Agreement and otherwise to carry out its obligations thereunder. The execution, delivery and
performance by the Subscriber of the transactions contemplated by this Agreement have been duly
authorized by all necessary corporate or similar action on the part of the Subscriber. Each
transaction document to which it is a party has been duly executed by the Subscriber, and when
delivered by the Subscriber in accordance with the terms hereof, will constitute the valid and
legally binding obligation of the Subscriber, enforceable against it in accordance with its terms,
except (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of
creditors’ rights generally, (ii) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and
contribution provisions may be limited by applicable law.

b) The Subscriber acknowledges and understands that the offering and sale of the Shares has
not been registered under the Securities Act of 1933, as amended (the “Act”) and is
intended to be exempt from registration under the Act by virtue of Rules 504, 505, and 506 of
Regulation D promulgated under the Act and by virtue of Sections 4(6) and 4(2) of the Act. In
accordance therewith and in furtherance thereof, the Subscriber represents and warrants and agrees
as follows:

i) The Subscriber is purchasing the Shares for the Subscriber’s own account for investment
purposes only and not with the intent toward the further sale or distribution thereof.

ii) The Subscriber acknowledges and agrees that the Shares have not been registered under the
Act and may not be transferred, sold, assigned, hypothecated or otherwise disposed of, unless (i)
the terms of the Shares and (ii) such transaction is the subject of a registration statement, filed
with and declared effective by the United States Securities and Exchange Commission (the
“SEC”), or unless an exemption from the registration requirements under the Act is
available.

iii) The Subscriber is an “accredited investor,” as that term is defined in Regulation D
promulgated under the Act. The Subscriber has reviewed the definition of “accredited investor”
contained in Accredited Investor Questionnaire in Exhibit A attached hereto and hereby
represents and warrants that the Subscriber understands such definition. Prior to or in connection
with the execution of this Agreement, the Subscriber shall submit to the Company the confidential
Accredited Investor Questionnaire pursuant to which the Subscriber represents and warrants to the
Company that the Subscriber is an “accredited investor” and sets forth the factual basis therefor.
The Subscriber was informed of the significance of the foregoing representations and hereby
represents that the information provided and the representations made by the Subscriber in the
confidential Accredited Investor Questionnaire are true and correct in all respects as of the date
hereof.

iv) If the Subscriber is a natural person, the Subscriber has reached the age of majority in
the jurisdiction in which the Subscriber resides, the Subscriber has adequate means of providing
for the Subscriber’s current financial needs and contingencies, is able to bear the substantial
economic risks of an investment in the Shares for an indefinite period of time, has no need for
liquidity in such investment, and, at the present time, could afford a complete loss of such
investment.

v) The purchase of the Shares involves a high degree of risk and the Subscriber acknowledges
that the Subscriber can bear the complete economic risk of the purchase of the Shares, including
the total loss of the investment represented hereby.

vi) The Subscriber has such knowledge and experience in financial, tax and business matters so
as to enable the Subscriber to utilize the information made available to the Subscriber in
connection herewith to evaluate the merits and risks of this investment and to make an informed
investment decision with respect thereto.

vii) The Subscriber acknowledges that the Subscriber, or the Subscriber’s attorney,
accountant, or adviser(s), has/have had a reasonable opportunity to inspect all documents and
records pertaining to this subscription for the Shares.

viii) The Subscriber and/or the Subscriber’s adviser(s) has/have had a reasonable opportunity
to ask questions and receive answers from a person or persons acting on behalf of the Company
concerning the subscription for the Shares and all such questions have been answered to the full
satisfaction of the Subscriber.

ix) In making a decision to purchase the Shares, the Subscriber has not relied on any
information other than information supplied to it by the Company and in this Agreement.

x) The Subscriber is not relying on the Company or any agent thereof with respect to any
legal, tax or economic advice related to an investment in the Shares.

xi) The Subscriber is not subscribing for the Shares as a result of or subsequent to any
advertisement, article, notice or other communication published in any newspaper, magazine, or
similar media or broadcast over television or radio, or presented at any seminar or meeting, or any
solicitation of a subscription by a person other than a representative of the Company. Subscriber
is acquiring the Shares for his own account, for investment purposes only and not with a view to
the resale or distribution thereof.

xii) The Subscriber understands and acknowledges that the certificate representing the Shares
will bear the following legend and any other legend required by the laws of the jurisdiction in
which the Subscriber resides, and any legend required by any applicable law, including without
limitation, any legend that will be useful to aid compliance with Regulation D or other regulations
adopted by the SEC under the Act:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE OFFERED FOR SALE, SOLD,
TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR
THE SECURITIES UNDER THE SECURITIES ACT OF 1933 OR (B) AN OPINION OF COUNSEL, IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD
PURSUANT TO RULE 144, RULE 144A OR OTHER EXEMPTION UNDER SAID ACT.

THE TRANSFER OF THE SECURITIES REPRESENTED HEREBY IS PROHIBITED EXCEPT IN ACCORDANCE WITH
THE SECURITIES ACT OF 1933, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION.”

c) The Subscriber hereby agrees to provide such information and to execute and deliver such
documents as the Company may deem reasonably appropriate with regard to the Subscriber’s
suitability or otherwise in connection with this Agreement.

d) The execution, delivery and performance of this Agreement by the Subscriber: (i) will not
constitute a default under or conflict with any agreement or instrument to which the Subscriber is
a party or by which it or its assets are bound; (ii) will not conflict with or violate any order,
judgment, decree, statute, ordinance or regulation applicable to the Subscriber (including, without
limitation, any applicable laws relating to permissible legal investments); and (iii) except as set
forth herein, does not require the consent of any person or entity, other than those that have been
obtained prior to the date hereof. This Agreement has been duly authorized, executed and delivered
by the Subscriber and constitutes the valid and binding agreement of the Subscriber enforceable
against it in accordance with its terms.

e) The Subscriber has not retained, or otherwise entered into any agreement or understanding
with, any broker or finder in connection with the purchase of the Shares by the Subscriber, and the
Company will not incur any liability for any fee, commission or other compensation on account of
any such retention, agreement or understanding by the Subscriber.

f) The Subscriber understands, acknowledges and agrees that:

i) The Shares has not been recommended by any federal or state securities commission or
regulatory authority.

ii) The representations, warranties, and agreements of the Subscriber contained in this
Agreement shall survive the execution and delivery of this Agreement and the purchase of the
Shares.

iii) The Subscriber will have absolutely no decision-making authority over any matters
concerning the Company. As a holder of Shares, the Subscriber acknowledges and agrees that the
Subscriber will not (i) be able to participate in the management of the Company or the conduct of
its business; or (ii) have any right to approve any decision or action of the Officers of the
Company in connection with the business of the Company, except as provided by the Company’s
Articles of Incorporation and Bylaws.

g) The Subscriber recognizes that the purchase of the Shares involves a high degree of risk
including, but not limited to, the following: (i) the Company remains a development stage business
with limited operating history and requires funds in addition to the proceeds of this offering;
(ii) an investment in the Company is highly speculative and only investors who can afford the loss
of their entire investment should consider investing in the Company and the Shares; (iii) the
Subscriber may not be able to liquidate its investment; (iv) transferability of the Shares is
extremely limited; (v) in the event of a Company disposition, the Subscriber could sustain the loss
of its entire investment; and (vi) the Company has not paid any distributions since its inception
and does not anticipate paying any distributions in the near future.

7) Miscellaneous.

a) This Agreement shall be governed by, and construed in accordance with, the laws of the
State of California, without giving effect to principles of conflicts of law. The Parties agree
that jurisdiction and venue in any action brought by any party pursuant to this Agreement shall
properly lie in any federal or state court located in the City of Los Angeles, State of California.
By execution and delivery of this Agreement each party irrevocably submits to the jurisdiction of
such courts for itself and in respect of its property with respect to such action.

b) In the event that any provision of this Agreement is invalid or unenforceable under any
applicable statute, rule of law or regulation, then such provision shall be deemed inoperative to
the extent that it may conflict therewith and shall be deemed modified to conform to such statute,
rule of law or regulation. Any provision hereof which may prove invalid or unenforceable shall not
affect the validity or enforceability of any other provision hereof.

c) Each party shall indemnify each other party against any loss, expense or damages (including
reasonable attorney’s fees but excluding consequential damages) incurred as a result of such
parties’ breach of any representation, warranty, covenant or agreement in this Agreement.

d) This Agreement may be executed in counterparts, each of which shall be an original, but all
of which shall constitute one instrument.

e) This Agreement constitutes the entire agreement between the parties hereto with respect to
the subject matter hereof. Any provision of this Agreement may be amended and the observance
thereof may be waived (either generally or in a particular instance and either retroactively or
prospectively), only by a writing executed by the Company and the Subscriber.

f) Any notice or other communication given hereunder shall be deemed sufficient if in writing
and sent by: (i) electronic mail to the Company’s email address as prescribed by the officer(s) (i)
registered or certified mail, return receipt requested; or (iii) a nationally recognized overnight
carrier, in each case addressed to VIASPACE Inc., 382 N. Lemon Ave., Suite 364. Walnut, CA 91789
Attention: Chief Executive Officer, and to the Subscriber at the address indicated on the last page
of this Subscription Agreement. Notices shall be deemed to have been given on the date of
transmission or mailing, except notices of change of address, which shall be deemed to have been
given when received.

g) The signatures on this Agreement are contained in the applicable Signature Page attached
hereto.

INDIVIDUAL SIGNATURE PAGE

(To be completed if Subscriber is a natural person)

IN WITNESS WHEREOF, subject to acceptance by the Company, the undersigned’s signature on this
Individual Signature Page evidences the undersigned’s agreement to be bound by the foregoing
Agreement as a Subscriber.

If the undersigned is purchasing the Shares with his or her spouse, both the undersigned and his or
her spouse must sign this Individual Signature Page.

The undersigned represents that (a) he/she has read and understands this Agreement and (b) he/she
shall immediately notify the Company in writing if any material change in any of the information
contained in this Agreement occurs before the acceptance of his/her subscription.

	 	 	 	 	 
	$	0.0004	 	 	December 22, 2015

	 	 	 	 	 

	Purchase Price

15,000,000
	 	Date

/S/ CARL KUKKONEN

	 	 	 	 	

	Shares
	 	Signature

	 	 	 	 	       Carl Kukkonen—

	 	 	 	 	 

	 	 	 	 	Name (Please Type or Print)

	     

Address
	 	     

United States Social Security Number

	     

Address (continued)
	 	     

Signature of Spouse if Co-Owner

	     

(Telephone Number) (Fax Number)
	 	     

Name of Spouse if Co-Owner

(Please Type or Print)

	 	     	 	 	     

	 	 	 	 	

(Email) United States Social Security Number of Spouse if Co-Owner

Check one if more than one subscriber:

[ ] tenants in common (both parties sign — each owns one-half);

[ ] joint tenants with rights of survivorship (both parties sign — survivor upon death gets all —
except if married, see below);

[ ] tenants by the entireties (both parties sign — survivor between husband and wife gets all)

[ ] community property (both parties sign)

SIGNATURE PAGE FOR ENTITIES

(To be completed if Subscriber is other than a natural person)

IN WITNESS WHEREOF, subject to acceptance by the Company, the undersigned’s signature on this
Entity Signature Page evidences the undersigned’s agreement to be bound by the foregoing
Agreement.

The undersigned represents that (a) it has read and understands this Agreement, and (b) it shall
immediately notify the Company in writing if any material change in any of the information
contained in this Agreement occurs before the acceptance of his/her subscription.

The undersigned warrants that he/she has full power and authority to execute this Subscription
Agreement on behalf of the above entity, and investment in the Company is not prohibited by the
governing documents of the entity or by any law applicable to such entity.

      

	 	 	 	Date

      

Entity Name

Form of Organization: By:       

Signature

       Partnership,        Corporation,        LLC

       Trust        Other: Its:       

      

Print Name

            

Address Federal Tax ID No. (FEIN)

            

Address (continued) Telephone Number            Fax Number

      

Email

ACCEPTANCE OF SUBSCRIPTION

(to be filled out only by the Company)

The Company hereby accepts the above application for subscription for Shares on behalf of the
Company.

Dated: December 22, 2015

VIASPACE INC.

By:      /S/ HARIS BASIT

Name: Haris Basit

Title: Chief Executive Officer

Exhibit A

CONFIDENTIAL

ACCREDITED INVESTOR QUESTIONNAIRE

Exhibit B

Definition of Accredited Investor Under Regulation D

Accredited investor shall mean any person who comes within any of the following categories, or who
the Company reasonably believes comes within any of the following categories, at the time of the
sale of the Shares to that person:

(1) Any bank as defined in Section 3(a)(2) of the Act, or a savings and loan association or
other institution as defined in Section 3(a)(5)(A) of the Act, whether acting in its individual or
fiduciary capacity; any broker dealer registered pursuant to Section 15 of the Securities and
Exchange Act of 1934; any insurance company as defined in Section 2(13) of the Act; any investment
company registered under the Investment Company Act of 1940 or a business development company as
defined in Section 2(a)(48) of that Act; any Small Business Investment Company licensed by the
United States Small Business Administration under Section 301(c) or (d) of the Small Business
Investment Act of 1958; any plan established and maintained by a state, its political subdivisions,
or any agency or instrumentality of a state or its political subdivisions, for the benefit of its
employees, if such plan has total assets in access of $5,000,000; any employee benefit plan within
the meaning of the Employee Retirement Income Security Act of 1974, if the investment decision is
made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings
and loan association, insurance company, or registered investment adviser, or if the employee
benefit plan has total assets in excess of $5,000,000, or, if a self directed plan with the
investment decisions made solely by persons that are accredited investors;

(2) Any private business development company as defined in Section 202(a)(22) of the
Investment Advisers Act of 1940;

(3) Any organization described in Section 501(c)(3) of the Internal Revenue Code, corporation,
Delaware or similar business trust, or partnership, not formed for the specific purpose of
acquiring the securities offered with total assets in excess of $5,000,000;

(4) Any director, executive officer, or general partner of the issuer of the securities being
offered or sold, or any director, executive officer, or general partner of a general partner of
that issuer;

(5) Any natural person whose individual net worth, or joint net worth with that person’s
spouse, at the time of such person’s purchase exceeds $1,000,000, excluding the value and equity in
that person’s primary residence;

(6) Any natural person who had an individual income in excess of $200,000 in each of the two
most recent years or joint income with that person’s spouse in excess of $300,000 in each of those
years and has a reasonable expectation of reaching the same income level in the current year;

(7) Any trust with total assets in excess of $5,000,000, not formed for the specific purpose
of acquiring the securities offered, whose purchase is directed by a sophisticated person as
described in Rule 506(b)(2)(ii); and

(8) Any entity in which all of the equity owners are accredited investors.EX-10.1

 Exhibit 10.1 

LINDSAY CORPORATION 

MANAGEMENT INCENTIVE PLAN (MIP) 

2016 
 Plan Year 

 

	
	  

	VP HR Signature/Date
	
	  

	CFO Signature/Date
	
	  

	CEO Signature/Date

 Table of Contents 

 

							
	1.	 	Purpose	  	 	1	  
	2.	 	Definitions	  	 	1	  
	3.	 	Effective Date	  	 	2	  
	4.	 	Eligibility for Participation	  	 	2	  
	5.	 	Enrollment in the Plan	  	 	2&3	  
	6.	 	Determination of Target Payout Levels	  	 	3&4	  
	7.	 	Basis of Awards	  	 	4,5,&6	  
	8.	 	Changes in Employment Status	  	 	6&7	  
	9.	 	Administration	  	 	7	  
	10.	 	Attachments	  	 	8	  

	1.	Purpose 

 The purpose of the Management Incentive Plan (the “Plan”) is to: 

 

	 	•	 	Encourage performance consistent with the Company’s business strategy. 

  

	 	•	 	Focus on near-term performance results as well as progress toward the achievement of long-term objectives. 

  

	 	•	 	Strengthen the link between performance and pay by delivering awards based on measurable corporate and individual goals. 

  

	2.	Definitions 

 The terms used in this Plan have the meanings set forth below. 

 

	 	A.	“Company” shall mean Lindsay Corporation. 

  

	 	B.	“Compensation Committee” shall mean the Compensation Committee of the Company’s Board of Directors. 

  

	 	C.	“Financial Performance Component” shall mean the portion of a Participant’s Plan award that is based on the Company’s and specific Market financial performance as defined in Section 7B.

  

	 	D.	“Individual Performance Component” shall mean the portion of a Participant’s Plan award that is based on a Participant’s performance relative to individual objectives established in accordance with
Section 7C. 

  

	 	E.	“Named Executive Officers” shall mean the executives of the Company listed in the Executive Compensation section of the Company’s Proxy Statement, other executive officers of the Company for SEC reporting
purposes and any other elected officers. 

  

	 	F.	“Participant” shall mean a key employee eligible for awards under the terms outlined in Section 4 of this Plan. 

  

	 	G.	“Plan” shall mean Lindsay Corporation Management Incentive Plan. 

  
 1 

	3.	Effective Date 

 The Plan shall be effective as of September 1, 2015 and will be in
effect for the 2016 bonus year. The 2016 bonus year is defined as September 1, 2015 through August 31, 2016. 
  

	4.	Eligibility for Participation 

  

	 	A.	Participation in the Plan is limited to individuals in positions which have significant responsibility for and impact on the Company’s corporate performance. 

 

	 	B.	Only the Chief Executive Officer and those employees in grades H through J (elected officers as noted in the annual report) are eligible to be considered for participation in the Plan. 

 

	 	C.	Participation in the Plan does not guarantee or entitle any employee to participate in any bonus plan enacted in the future. Participation in the Plan at any target bonus level does not guarantee or entitle any employee
to be eligible to participate at any similar target bonus level in any bonus plan which may be enacted in the future. 

  

	5.	Enrollment in the Plan 

  

	 	A.	Initial Enrollment 

 At the beginning of the Plan year, each Participant must be enrolled in
the Plan subject to the approvals and eligibility criteria set forth in Sections 4 and 6. The enrollment process is as follows: 
  

	 	i.	Plan Participants will participate in the Plan at the standard target percent per grade level as listed in Section 6. 

  

	 	ii.	The Company’s Chief Executive Officer will review the participant list and projected bonus costs of enrolled employees with the Compensation Committee. The Compensation Committee provides final approval on the
aggregate potential cost of the Plan. 

  
 2 

	 	B.	Mid-year Enrollment 

 When hiring or promoting employees during the Plan year who may be
eligible for participation in the Plan, the following procedures must be followed: 
  

	 	i.	Prior to the commencement of the recruiting or promotion process, the hiring manager consults with Human Resources to determine the position’s eligibility for participation in the Plan and the recommended target
bonus amount. 

  

	 	ii.	Offer letters indicating bonus Plan participation and target bonus award opportunities to new hires and/or promoted employees must be reviewed by the CEO or, in the case of a Named Executive Officer, by the Compensation
Committee. Target bonus recommendations must be approved before communication to a prospective Participant. Generally, employees hired or promoted during the fourth quarter 2016 are not eligible to participate in the 2016 Plan. 

 

	6.	Determination of Target Payout Levels 

  

	 	A.	Incentive awards will be calculated as a percentage of the Participant’s annual base salary received during the Plan year, provided that annual base salary increases which are made during the first quarter of the
Plan year will be treated for purposes of calculating a Participant’s bonus as if they had been made at the beginning of the Plan year. The impact of promotions or other adjustments to base pay made after the annual pay adjustment noted above
will be prorated for the time in effect. While award amounts will vary based on the range of award opportunity and an assessment of individual performance results, the target award opportunities for each grade level are shown below:

  

					
	 Grade
	  	Target % of Salary	 
	 CEO
	  	 	90	% 
	 J
	  	 	50	% 
	 I
	  	 	40	% 
	 H
	  	 	30	% 

  

	 	i.	Actual participation is subject to approval by the CEO and by the Compensation Committee. Actual participation is based on an assessment of the individual’s position impact on the organization. 

 

	 	ii.	Standard target percents per grade level should be followed for all Plan Participants. 

  

	 	B.	 If a Participant’s Plan target award opportunity (Target % of Salary as set forth above) changes due to promotion into a grade level with a
higher target bonus, the Participant’s bonus will be calculated based on his or her annual salary during the Plan year and a pro-rated bonus award. The pro-rated bonus award will reflect the

  
 3 

	 	
portion of the Plan year spent in each grade level (e.g., 26 weeks at 40% and 26 weeks at 50%). In evaluating the performance of Participants who change positions during the Plan year,
consideration will be given to the length of time and results in each position. Actual award decisions will be made by the CEO or, in the case of a Named Executive Officer, by the Compensation Committee. Generally, fourth quarter promotions will not
result in an increase in a Participant’s target award opportunity. 

  

	 	C.	Examples of various award calculations are included with this Plan document as Attachment A. 

  

	 	D.	[Intentionally omitted.] 

  

	 	E.	The Compensation Committee will determine the award payments to the Named Executive Officers. 

  

	 	F.	Award payments will be calculated on an annual basis and paid in accordance with the Company’s normal payroll cycle. Payments will be made within 75 days following the Plan year. The payment date may be changed at
any time and for any reason at the discretion of the CEO, or in the case of a Named Executive Officer, with approval of the Compensation Committee, but may not be later than March 15 following the end of the Plan year for which the award is
paid. 

  

	7.	Basis of Awards 

  

	 	A.	Measurable performance objectives for each Plan Participant will be established at the beginning of the Plan year (or at mid-year for mid-year hires or newly eligible employees). In 2016, consideration will be given to:

  

	 	i.	Financial Performance Component: Company and Market financial performance vs. Plan performance objectives in accordance with Section 7B. 

 

	 	ii.	Individual Performance Component: Participant’s performance relative to individual goals established in accordance with Section 7C. 

  
 4 

	 	iii.	Individual and Financial Performance Components will be added to reach a Participant’s total bonus. The relative weighting will vary by grade in accordance with the following schedule: 

 

									
	 Grade
	  	Financial
Performance	 	 	Individual
Performance	 
	 CEO
	  	 	80	% 	 	 	20	% 
	 J
	  	 	80	% 	 	 	20	% 
	 I
	  	 	80	% 	 	 	20	% 
	 H
	  	 	80	% 	 	 	20	% 

  

	 	B.	At the beginning of the Plan year, the objectives for the Financial Performance Component are identified and approved by the Compensation Committee. 

 

	 	i.	Recommended award amounts may range from 0 - 200% of the Financial Performance Component of the Participant’s target award, based on performance. 

 

	 	ii.	Percentages between the threshold, intermediate, target, and maximum award will be interpolated. 

  

	 	iii.	In the event of an acquisition, revenue, operating income, expenses, fees, assets, liabilities and acquisition fees resulting from the acquisition will be excluded from award payout calculations, unless the Compensation
Committee approves a modification to include any such items. 

  

	 	C.	The Individual Performance Component will be based on written objectives set annually for Participants by their supervisors and approved by the CEO or, in the case of a Named Executive Officer, by the Compensation
Committee. Objectives will be based on the Participant’s position and may be financial, operational or strategic. 

  

	 	i.	Objectives under the Individual Performance Component may be linked to team-based goals, if appropriate 

  

	 	ii.	Examples of appropriate objectives under the Individual Performance Component include: 

  

	 	•	 	Safety 

  

	 	•	 	Customer Service 

  

	 	•	 	Market Share 

  

	 	•	 	On-time Delivery 

  

	 	•	 	Cost Reduction 

  

	 	•	 	Product Development 

  

	 	iii.	 Recommended award amounts may range from 0% - 200% of the target amount under the Individual Performance Component. Recommended

  
 5 

	 	
award amounts will be based on an assessment of the individual’s performance relative to objectives established under the Individual Performance Component, in accordance with the following
guidelines: 

  

					
	 Individual

Performance
	  	Payout
(as % of Target Individual
Performance Component)	 
	 Does not meet objectives
	  	 	0	% 
	 Meets some objectives
	  	 	50	% 
	 Meets most objectives
	  	 	75	% 
	 Meets all objectives
	  	 	100	% 
	 Exceeds objectives
	  	 	150	% 
	 Significantly exceeds objectives
	  	 	200	% 

  

	 	iv.	The “Payout (as % of Target Individual Performance Component)” represents the payout relative to target award for the Individual Performance Component of the Plan. 

 

	 	v.	With respect to the CEO only, the CEO shall be entitled to an award amount equal to the maximum 200% of the target amount under his or her Individual Performance Component if the Company achieves at least $1 million of
operating income in fiscal 2016. Notwithstanding the foregoing, the Compensation Committee shall have negative discretion to reduce such award amount to an amount calculated based on the CEO’s Individual Performance in a manner consistent with
the assessment of the performance of other executives relative to objectives established under their respective Individual Performance Components. 

  

	8.	Changes in Employment Status 

  

	 	A.	Participants who cease to be employees of the Company during the Plan year will not be eligible to receive an award. Participants who were employed as of the end of the Plan year, but whose employment is terminated
prior to the payment date, will continue to be eligible to receive an award. Any exceptions will require the approval of the CEO, or in the case of a Named Executive Officer, the Compensation Committee. 

  
 6 

	 	B.	In the event that a Participant transfers out of an eligible position into an ineligible position within the Company, the employee may be eligible for a prorated bonus award based upon the approval of the CEO, or in the
case of a Named Executive Officer, the Compensation Committee. 

  

	 	C.	In all cases awards will be calculated and paid according to the provisions in Sections 6 and 7 of this Plan document. 

  

	9.	Administration 

  

	 	A.	General authority for Plan administration and responsibility for ongoing Plan administration will rest with the Compensation Committee of the Company’s Board of Directors. The Compensation Committee has sole
authority for decisions regarding interpretation of the terms of this Plan. 

  

	 	B.	This plan is being adopted pursuant to and shall be subject to the terms of the Management Incentive Umbrella Plan as approved by stockholders on January 27, 2014. 

 

	 	C.	The Company reserves the right to amend or change the Plan in whole or in part at any time during the Plan year. Amendments to the Plan require the approval of the Compensation Committee. 

 

	 	D.	Participation in the Plan does not constitute a contract of employment nor a contractual agreement of payment. It shall not affect the right of the Company to discharge, transfer, or change the position of a
Participant. The Plan shall not be construed to limit or prevent the Company from adopting or changing, from time to time, any rules, standards or procedures affecting the Participant’s employment with the Company or any Company affiliate,
including those which affect bonus payouts. 

  

	 	E.	If any provision of this Plan is found to be illegal, invalid or unenforceable under present or future laws, that provision shall be severed from the Plan. If such a provision is severed, this Plan shall be construed
and enforced as if the severed provision had never been part of it and the remaining provisions of this Plan shall remain in full force and effect and shall not be affected by the severed provisions or by its severance from this Plan. In place of
any severed provision there shall be added automatically as part of this Plan a provision as similar in terms to the severed provision as may be possible and be legal, valid and enforceable. 

 

	 	E.	This is not an ERISA plan. This is a bonus program. 

  
 7 

 ATTACHMENT A 

Award Calculation Guidelines 
 The
following examples are to be used as guidelines in calculating bonus awards at the end of the 2016 Plan year. Managers should use their discretion in calculating actual bonus awards and may consider exceptions to the calculations below when
necessary. Any such exceptions must be fully documented and are subject to review and approval by the Chief Executive Officer, or in the case of a Named Executive Officer, the Compensation Committee. 

 

					
	 Full Year Participation
	  	 	 
		
	 Individual Score:
	  	 	100	  
	 Financial Performance Score:
	  	 	100.00	% 
		
	 Individual Score
	  	 	100	  
	 Total Incentive Plan %
	  	 	40	% 
	 % Objectives to Total Incentive Plan Participation
	  	 	20	% 
	 Base Salary
	  	$	150,000	  
	 Objectives Performance Payout
	  	$	12,000	  
		
	 Financial Score
	  	 	100	% 
	 Total Incentive Plan %
	  	 	40	% 
	 % Financial to Total Incentive Plan Participation
	  	 	80	% 
	 Base Salary
	  	$	150,000	  
	 Financial Performance Payout
	  	$	48,000	  
	 Incentive Amount
	  	$	60,000	  
	 Time Period (weeks)
	  	 	52	  
	 Proration Factor
	  	 	1	  
	 Prorated Payout for Time Period
	  	$	60,000	  

  

					
	 Partial Year Participation
	  	 	 
		
	 Individual Score:
	  	 	100	  
	 Financial Performance Score:
	  	 	100.00	% 
		
	 Individual Score
	  	 	100	  
	 Total Incentive Plan %
	  	 	40	% 
	 % Objectives to Total Incentive Plan Participation
	  	 	20	% 
	 Base Salary
	  	$	150,000	  
	 Objectives Performance Payout
	  	$	12,000	  
		
	 Financial Score
	  	 	100	% 
	 Total Incentive Plan %
	  	 	40	% 
	 % Financial to Total Incentive Plan Participation
	  	 	80	% 
	 Base Salary
	  	$	150,000	  
	 Financial Performance Payout
	  	$	48,000	  
	 Incentive Amount
	  	$	60,000	  
	 Time Period (weeks)
	  	 	30	  
	 Proration Factor
	  	 	0.576923	  
	 Prorated Payout for Time Period
	  	$	34,615	  

 

					
	 Mid-Year Promotion
	  	 	 
		
	 Individual Score:
	  	 	100	  
	 Financial Performance Score:
	  	 	100.00	% 
		
	 Individual Score
	  	 	100	  
	 Total Incentive Plan %
	  	 	40	% 
	 % Objectives to Total Incentive Plan Participation
	  	 	20	% 
	 Base Salary
	  	$	150,000	  
	 Objectives Performance Payout
	  	$	12,000	  
		
	 Financial Score
	  	 	100	% 
	 Total Incentive Plan %
	  	 	40	% 
	 % Financial to Total Incentive Plan Participation
	  	 	80	% 
	 Base Salary
	  	$	150,000	  
	 Financial Performance Payout
	  	$	48,000	  
	 Incentive Amount
	  	$	60,000	  
	 Time Period (weeks)
	  	 	26	  
	 Proration Factor
	  	 	0.5	  
	 Prorated Payout for Time Period
	  	$	30,000	  
		
	 Post Promotion Calculation
	  			
	 Individual Score
	  	 	100	  
	 Total Incentive Plan %
	  	 	50	% 
	 % Objectives to Total Incentive Plan Participation
	  	 	20	% 
	 Base Salary
	  	$	200,000	  
	 Objectives Performance Payout
	  	$	20,000	  
		
	 Financial Score
	  	 	100	% 
	 Total Incentive Plan %
	  	 	50	% 
	 % Financial to Total Incentive Plan Participation
	  	 	80	% 
	 Base Salary
	  	$	200,000	  
	 Financial Performance Payout
	  	$	80,000	  
	 Incentive Amount
	  	$	100,000	  
	 Time Period (weeks)
	  	 	26	  
	 Proration Factor
	  	 	0.5	  
	 Prorated Payout for Time Period
	  	$	50,000	  
		  	  
	  
	 
		
	 Total Prorated Incentive Amount
	  	$	80,000	  
		  	  
	  
	 

 
 

  
 8 

 “The Financial Performance Component Elements for Fiscal Year 2016 constitutes confidential information and
has been omitted from this filing. This appendix has been filed separately with the Securities and Exchange Commission.” 

  
 9

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