Document:

VMW-3.31.2013-10Q EX 10.20

Amended and Restated February 14, 2013
VMware, Inc.
Executive Bonus Program

Executive Bonus Program Objectives
Among the objectives of the VMware Bonus Program are to:  

		
	•
	motivate our executives to achieve our strategic, operational and financial goals

		
	•
	reward superior performance

		
	•
	attract and retain exceptional executives; and

		
	•
	reward behaviors that result in long term increased stockholder value

Overview
The Compensation and Corporate Governance Committee has adopted a cash bonus program relating to performance (the “Executive Bonus Program”) under the 2007 Equity and Incentive Plan (the "Plan") providing for possible cash bonuses to specified executives of VMware, Inc. and its consolidated subsidiaries (the "Company").  Unless otherwise indicated herein, provisions of the Plan shall apply to the Executive Bonus Program.
    
In keeping with VMware’s philosophy of tying a substantial portion of our executive compensation to the achievement of measurable achievements, a goals-based cash bonus program has been developed and implemented. The determination of bonus payouts will be made semiannually after the conclusion of the semi-annual measurement periods ending on June 30 and December 31 based on results achieved by the company, as reported to the Compensation and Corporate Governance Committee by the Chief Financial Officer, Chief Accounting Officer or Corporate Controller.  Bonuses will be determined by the Compensation and Corporate Governance Committee of the Board of Directors (the “Administrator”). Bonus payments will only occur if certain predetermined company and individual (“MBO”) objectives are successfully achieved.  Bonus amounts will be calculated (“Calculated Bonus Amounts”) based upon the degree of achievement of the predetermined objectives.  The Compensation and Corporate Governance Committee shall determine final bonus payouts and, in its discretion, taking into account review and discussion of recommendations made by the Chief Executive Officer, may reduce, but not increase, final bonus payouts from the Calculated Bonus Amounts.

Bonus awards represent an unfunded, unsecured promise by the Company to pay a bonus amount determined by the Compensation and Corporate Governance Committee to each Participant, but only upon satisfaction of the performance criteria determined by the Compensation and Corporate Governance Committee in accordance with the provisions set forth below.

Eligibility
All senior executives are eligible to be considered for participation. However, no person is automatically entitled to participate in the Executive Bonus Program.  Participants will be approved solely at the discretion of the Compensation and Corporate Governance Committee and may be amended at any time by the Compensation and Corporate Governance Committee.    Additionally, the executive must be an employee of the Company at the time the bonus is paid out in order to vest in right to receive payment. 

Participants may include executive officers of the Company as defined under Rule 3b-7 of the 1934 Securities Exchange Act (“Executive Officers”) and other senior executives who are not Executive Officers.  At its discretion, the Compensation and Corporate Governance Committee may delegate authority to the Chief Executive Officer to add senior executives who are not Executive Officers to the Executive Bonus Program.

Administration 
As Administrator, the Compensation and Corporate Governance Committee is ultimately responsible for administering the Executive Bonus Program.  The Administrator has all powers and discretion necessary or appropriate to review and approve the Executive Bonus Program and its operation, including, but not limited to, the power to (a) determine Participants, (b) interpret the provisions of the Executive Bonus Program, (c) adopt rules for the administration, interpretation and application of the Executive Bonus Program consistent with the Plan, and (d) interpret, amend or revoke any such rules.  All determinations and decisions made by the Administrator and any decision of the Administrator shall be final, conclusive, and binding on all persons, and shall be given the maximum deference permitted by law. 

Page 1        

Amended and Restated February 14, 2013
VMware, Inc.
Executive Bonus Program

The Administrator, in its sole discretion, may amend or terminate the Executive Bonus Program, or any part thereof, at any time and for any reason, subject to the limitations set forth in Sections 3, 6(b)(iv) and 7 of the Plan.   

The Administrator shall exercise full authority to make final determinations with respect to bonuses granted under the Executive Bonus Program to Executive Officers.  The Administrator may, in its discretion, delegate authority over bonuses to Participants who are not Executive Officers to the Chief Executive Officer of the Company.  

Target Percentage
The Administrator shall establish target bonuses and bonus formulas for the Executive Bonus Program.  

Target bonus amounts will be a percentage of a Participant’s actual semi-annual base salary during the course of the Performance Period as of the date the target bonus percentage is established (the “Target Bonus Percentage”).  

The Calculated Bonus Amount, if any, may range 0% to 200% of the Target Bonus Percentage multiplied by the Participant’s actual semi-annual base salary depending upon performance achievement.  Minimum bonus thresholds are described below.  For purposes of this calculation, Participant’s actual semi-annual base salary shall not exceed 200% of the Participant’s base salary as of the date that semi-annual performance targets are approved.

Performance Period
Unless otherwise indicated, the performance periods for bonuses granted under the Executive Bonus Program shall run each year from January 1 to June 30 and from July 1 to December 31 . (each, a “Performance Period”).  Participants are rewarded during the period that they are actively employed by VMware. 

Participants are not eligible to participate in any other Company bonus or incentive plan during a Performance Period.  This exclusion does not apply, however, to applicable employee referral bonuses, spot bonuses, equity awards, or Company contributions to qualified retirement or savings plans. 

New Hires: Calculated Bonus Amounts will be prorated for newly hired participants based on the number of days they are employed during the Performance Period.

Leaves of Absence: Calculated Bonus Amounts will be prorated for any time during the Performance Period that a Participant is on an unpaid leave of absence status. Unpaid leaves of absence exclude those absences for which vacation, sick leave or other compensation is paid directly by the Company.  Unpaid absences include those absences for which compensation is received from any source other than directly from the Company.  

Changes in Position: Participants who move from one bonus-eligible position to a different bonus-eligible position with a different target bonus percentage may earn a target bonus prorated based on  base pay and bonus at the start of each period.  

Termination: In order to vest and the right to receive a bonus under the Executive Bonus Program, an employee must be in an active employment status or on approved  leave at the day the bonus is paid out. An employee whose employment ends for any reason prior to that date will not earn and will not be paid any bonus under this Executive Bonus Program.

The Compensation and Corporate Governance Committee shall have the exclusive discretion to determine when a Participant is no longer actively employed for purposes of the Executive Bonus Program.  Participants have no right or interest in any bonus and such bonus is not earned unless the Administrator determines a bonus payout is due.

Performance Metrics
The Calculated Bonus Amount will depend on both a company component (“Corporate Financial Metric”) and an individual component (“MBO”) selected from the performance goals from the 2007 Plan.  The Company must meet a minimum performance threshold established within the Corporate Financial Metric in order for any bonus payouts to be made. If the minimum threshold is not achieved, the Executive Bonus Program shall not be funded and no bonus payouts shall be made.  The Corporate Financial Metrics and the relative weighting of the Corporate Financial Metrics and the MBOs shall be determined by the Committee within 45 days of the commencement of the performance period. The MBOs shall be determined by the Committee within 45 days of the commencement of the performance period; 

Page 2        

Amended and Restated February 14, 2013
VMware, Inc.
Executive Bonus Program

provided, however, that if the MBOs are used solely solely as a factor for the Administrator to consider in determining whether to exercise negative discretion, then they can be established or amended at any time during the performance period.
Corporate Financial Metric Component 
The Corporate Financial Metric shall be determined by calculating success against company-wide financial metrics and, as applicable, business unit performance metrics, as determined by the Compensation and Corporate Governance Committee.

MBO (Individual) Component 
Each Participant will be assigned individual performance goals by the Compensation and Corporate Governance Committee that are appropriate to the Participant’s role at the Company.  If threshold achievement of 80% of the Corporate Financial Metric is met, then the MBO component is funded at the same percentage as the Corporate Financial Metric. The Compensation and Corporate Governance Committee can exercise negative discretion to reduce the bonus for the MBO component.  In making its determination whether to reduce the bonus for the MBO component, the Committee’s shall review and discuss the Chief Executive Officer’s assessment of each Participant’s achievement of his or her individual performance goals. 

Bonus Determination and Payment
The Compensation and Corporate Governance Committee shall determine final bonus payouts to Participants based upon achievement of the foregoing metrics and goals.  The Committee reserves the right to reduce bonus payouts below Calculated Bonus Amounts or not make any bonus payouts in its sole discretion.  

Cancellation, Rescission and Recoupment of Awards
Any bonus granted under this Executive Bonus Program to a Participant shall be subject to cancellation, rescission, repayment or other action at the discretion of the Compensation Committee as set forth in Section 7(d) of the Plan in the event that such Participant engages in “Detrimental Activity” as such term is defined in Section 7(d). 

Additionally, the Compensation and Corporate Governance Committee shall have the discretion to require that each Participant reimburse the Company for all or any portion of any bonuses paid under the Executive Bonus Program if –

(a) the payment was predicated upon the achievement of certain financial results that were subsequently the subject of a material financial restatement, 

(b) in the Board’s view, the Participant engaged in fraud or misconduct that caused or partially caused the need for a material financial restatement by the Company or any substantial affiliate, and 

(c) a lower payment, award, or vesting would have occurred based upon the restated financial results. 

In each such instance, upon the determination of the Compensation and Corporate Governance Committee to require recoupment of a previously paid bonus awarded under the Executive Bonus Program, the Company will, to the extent practicable and allowable under applicable laws, require reimbursement of any bonus awarded for the relevant period exceeded the lower payment that would have been made based on the restated financial results, provided that the Company will not seek to recover bonuses compensation paid more than three years prior to the date the applicable restatement is disclosed.

At-Will Employment (US Only)
This Plan does not affect the terminable-at-will status of the employment relationship.  Neither the attainment of goals nor the continuous service requirement necessary to earn a bonus alters the ability of an employee or the Company to terminate employment at any time, with or without reason and with or without advance notice.

Page 3mineralriteexh4_1.htm

Exhibit 4.1

 

 

[FORM OF] TWELVE MONTH (12)

 

PROMISSORY NOTE

 

	
$100,000

	
Lindon, Utah

 

THIS NOTE AND THE SHARES OF COMMON STOCK ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS NOTE AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION MAY NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED OR PLEDGED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER APPLICABLE FEDERAL AND STATE SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE BORROWER THAT SUCH REGISTRATION IS NOT REQUIRED.

 

FOR VALUABLE CONSIDERATION RECEIVED, the undersigned, on behalf of MineralRite Corporation, an entity formed under the laws of the State of Nevada, its affiliates, successors and assigns, (Maker”), hereby promises to pay to ___________________________, an individual (“Lender”), at Lender’s address at: ____________________________________ or at any other place designated by the Lender hereof the principal sum of One Hundred Thousand Dollars (US$100,000), (the “Principal Sum”) together with any unpaid interest thereon as set forth below.

1.            Maturity.  April 17, 2014.

2.           Payment of Principal.  The principal balance of One Hundred Thousand Dollars ($100,000) shall be paid on or before Maturity.

3.           Interest.  Interest shall be paid on the unpaid principal balance at a rate of twelve percent simple interest (12%) per annum. All payments of interest due hereunder shall be made on or before Maturity.

4.           Prepayment.  This Note may be prepaid in whole or in part at any time without penalty, provided that any such prepayment shall be applied first to accrued interest with the remainder applied to reduction of principal.  If the Maker chooses to make a prepayment, the payment provided under Section 5 below shall be a) the profit as defined therein as of the date of such prepayment or $50,000, whichever is greater.

5.           Participation in Project Profits.  As additional consideration for making the loan evidenced by this Note, Maker agrees to pay the greater of a) five percent (5%) of the net profits received by Maker under its anticipated joint venture with CSI Import and Export, SA in Chiapas, Mexico (the “Project”) or b) the sum of $50,000. Net profit shall mean gross revenue received by Lender from the Project less the costs attributable to the project in accordance with U.S Generally Accepted Accounting Principles, consistently applied. This payment shall be due for such net profits earned during the term of this Note and shall be payable at Maturity. In the event that net profits exceed $50,000, with respect to any net profits earned by the Maker during the final month of the Note’s term (or shorter period in the event of prepayment) but not received, that portion of net profits shall be paid to Lender as soon as practicable following Maturity.

 6.           Conversion.  From the date of Maturity until this Note is paid in full, the Lender shall have the right to convert the unpaid principal and interest balance in whole or in part into Maker’s common stock at a rate equal to the lesser of a) $0.20 per share or b.) a 20% discount to the 30 day volume weighted average price (“VWAP). If the Lender chooses to exercise the conversion right, upon receipt of Lender’s notice to convert, which notice must be made in writing 15 days prior to Maturity, Maker shall have the right to reject such conversion and instead elect to make payment at Maturity of the entire unpaid principal balance together with all accrued and unpaid interest thereon together with the maximum profit participation payment provided for under Section 5 above.

 

 

  

Page 1 of 4

  

 

 

a.  Adjustments for Exchanges; Substitutions, Etc.  (i) In the event that the Maker, at any time or from time to time after the date of this Note, shall (A) issue by reclassification, exchange or substitution of its common stock any shares of capital stock of the Maker; or (B) effect any other transaction having similar effect, then the Shares shall mean the shares of capital stock of the Maker or property into which the Shares would have been converted, or which would have been exchanged or substituted for the Shares.  The purpose of the adjustment shall be that, in the event of a Conversion at any time after the occurrence of any event described in (a) and (b) above, the Lender shall be entitled to receive the other securities or property to which the Lender would have been finally entitled, after giving effect to the occurrence of such event, as if this Note had been converted immediately prior to the occurrence of such event.  An adjustment made pursuant to this Section 6(a) shall become effective immediately upon the effective date in the case of an exchange or substitution.

b.   Adjustment for Consolidation or Merger.  In case of any consolidation or merger to which the Maker is a party, at any time or from time to time after the date of this Note, other than a merger or consolidation in which the Maker is the surviving or continuing corporation and which does not result in any reclassification of, or change (other than a change in par value or from par value to no par value or from no par value to par value, or as a result of a subdivision or combination) in, outstanding common stock, then, as part of and as a condition to such transaction, provision shall be made so that, in the event of a Conversion, the Lender, shall receive, in lieu of the securities and property receivable upon the Conversion of this Note prior to such consummation, the kind and amount of shares or other securities and property receivable upon such consolidation or merger by a holder of the number of Shares into which this Note would have been converted immediately prior to such consolidation or merger had the Conversion occurred, all subject to further adjustment as provided in Section 6(a); in each such case, the terms of this Note shall be applicable to the securities or property receivable upon the Conversion of this Note after such consummation.  In any such case, appropriate adjustment shall be made in the application of this Section 6 with respect to the rights of the Lender of this Note after the transaction to the end that the provisions of this Section 6 shall be applicable after that event and be fully equivalent, by way of illustration and not limitation, by equitably adjusting the formulae set forth herein for Conversion to reflect the market price of securities or property issued in connection with the above described transaction.

 

c.  Adjustments for Stock Splits, Stock Subdivisions and Combinations.  If at any time or from time to time after the date of this Note, the Maker subdivides or combines its common stock, or declares a dividend or distribution to its holders of common stock in shares of the Maker’s common stock or securities convertible or exchangeable into common stock of the Maker (the “Stock Dividend”), (i) in the case of a subdivision (including a stock split) or Stock Dividend, the Conversion Rate in effect immediately prior to such event shall be proportionately decreased, and (ii) in the case of a combination (including a reverse stock split), the Conversion Rate in effect immediately prior to such event shall be proportionately increased.  Any adjustment under this Section 6(c) shall become effective at the close of business on the date the subdivision or combination becomes effective, or the Stock Dividend is declared.

 

 

  

Page 2 of 4

  

 

 

7.           Waiver.   Maker waives demand, presentment, notice of nonpayment of dishonor, protest and notice of protest, and agrees that it shall continue to remain liable to pay the unpaid balance of the indebtedness evidenced by this Note as extended, renewed, or modified.

 

8.           Miscellaneous.

 

a. Notices.  All notices required pursuant to the terms of this Note shall be in writing and either delivered personally or sent by United States Mail.  If sent by mail, notice shall be deemed given when deposited in the U.S. Mail except as provided in subsection 4 above, properly addressed and with postage prepaid. Unless changed by written notice, the following addresses shall be used:

	
  

	
To:

	
_______________________ 

_______________________ 

_______________________

	
  

	
To:

	
Guy Peckam 

MineralRite Corporation 

55 South Geneva Road

Lindon, UT  80402

 

	
  

	
With Copies to:

	
Peder K. Davisson, Esq. 

Davisson & Associates, PA 

4124 Quebec Avenue North, Suite 306 

Minneapolis, MN  55427

 

b. Integration.  This Note embodies the entire agreement and understanding between the parties relating to the subject matter thereof and supersedes all prior agreements and understandings relating to such subject matter.

 

c.       Governing Law and Venue.  This Note shall be construed and interpreted in accordance with the laws of the State of Nevada without reference to principles of conflicts of laws.  The parties agree that all actions or proceedings arising in connection with this Note shall be tried and litigated only in the State or Federal Courts located in the County of Clark, State of Nevada.  Each of the Maker and Lender waives to the extent permitted under applicable law, any right each may have to assert the doctrine of forum non-conveniens or to object to venue to the extent any proceeding is brought in accordance with this section.

 

d.       Binding Effect.  Except as herein otherwise provided to the contrary, this Note shall be binding upon, and inure to the benefit of, the parties and their respective heirs, executors, administrators, successors and assigns.

 

9.           Representations of Lender.  Lender represents and warrants that:

(a)    it is an “accredited investors” within the meaning of Rule 501(a) under the Securities Act of 1933, as amended, and that it is not purchasing the securities issued hereunder with a view toward distribution and that such securities will be restricted from resale and the appropriate restrictive ledged;

 

 

  

Page 3 of 4

  

 

 

(b)    Lender has received copies of all documents and any other information requested from the Maker and has had an opportunity to ask questions of and receive answers from the management of the Maker and to obtain any additional information desired, or has elected to waive such opportunity.  The Lender confirms that the Lender is fully informed regarding the financial condition of the Maker, the administration of its business affairs and its prospects for the future, and that the Maker makes no assurance whatsoever concerning the present and prospective value of this Note and the common stock issuable upon conversion.

(c)    Lender realizes that this Note and the common stock issuable upon conversion, as an investment, are speculative and involve a high degree of risk.  The Lender believes that an investment in this Note and the common stock issuable upon conversion is suitable for the Lender based upon the Lender’s investment objectives and financial needs, and the Lender has the financial means to undertake the risks of an investment in, and to withstand a complete loss of the Lender’s investment hereunder.

(d)    The Lender, either alone or with the assistance of a professional advisor, has such knowledge and experience in financial and business matters that the Lender is capable of evaluating the merits and risks of the investment in this Note and the common stock issuable upon conversion.  The Lender has obtained, to the extent deemed necessary, personal professional advice with respect to the risks inherent in, and the suitability of, an investment in this Note and the common stock issuable upon conversion in light of the Lender’s financial condition and investment needs.

 

IN WITNESS WHEREOF, this Note has been executed as of the date set forth below.

 

	EFFECTIVE DATE: April 17, 2013	MAKER:  MINERALRITE CORPORATION	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	 	 
	 	Its: 	 	 
	 	 	 	 
	 	 	 	 
	 	LENDER:	 
	 	 	 	 
	 	By:	 	 
	 	 	 	 
	 	 	 	 

 

 

 

 

 

 

Page 4 of 4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00216-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00216-of-00352.parquet"}]]