Document:

EX-10.1

 Exhibit 10.1 

CARGURUS, INC. 
 ANNUAL
INCENTIVE PLAN 
 I.    Purpose. The purpose of the CarGurus, Inc. Annual Incentive Plan (the
“Plan”) is to provide a means whereby CarGurus, Inc. (the “Company”) may provide incentive compensation to its eligible employees to serve as an incentive for employee performance and retention. The Plan is
effective as of January 1, 2018. 
 II.    Definitions. Whenever used in this Plan, the following terms
will have the respective meanings set forth below: 
 2.1    “Board” means the board of directors of
the Company. 
 2.2    “Code” means the Internal Revenue Code of 1986, as amended. 

2.3    “Committee” means the Compensation Committee of the Board. 

2.4    “Company” means CarGurus, Inc. or any successor thereto. 

2.5    “Employer” means the Company and its Subsidiaries. 

2.6    “Participant” means an eligible employee or other individual who provides services to the Company
or its Subsidiaries and who is described in Section III as a participant in the Plan. 
 2.7    “Performance
Goals” shall mean performance goals based on one or more of the following criteria: cash flow; free cash flow; earnings (including gross margin, earnings before interest and taxes, earnings before taxes, earnings before interest, taxes,
depreciation, amortization and charges for stock-based compensation, earnings before interest, taxes, depreciation and amortization, adjusted earnings before interest, taxes, depreciation and amortization and net earnings); earnings per share;
growth in earnings or earnings per share; stock price; return on equity or average stockholder equity; total stockholder return or growth in total stockholder return either directly or in relation to a comparative group; return on capital; return on
assets or net assets; revenue, growth in revenue or return on sales; sales; bookings; expense to revenue ratio; income, net income or adjusted net income; operating income, net operating income, adjusted operating income or net operating income
after tax; operating profit or net operating profit; operating margin; gross profit margin; return on operating revenue or return on operating profit; regulatory filings; regulatory approvals, litigation and regulatory resolution goals; other
operational, regulatory or departmental objectives; budget comparisons; growth in stockholder value relative to established indexes, or another peer group or peer group index; development and implementation of strategic plans and initiatives and/or
organizational restructuring goals; development and implementation of risk and crisis management programs; improvement in workforce diversity; compliance requirements and compliance relief; safety goals; productivity goals; workforce management and
succession planning goals; economic 

 
value added (including typical adjustments consistently applied from generally accepted accounting principles required to determine economic value added performance measures); individual
achievements; measures of customer satisfaction, employee satisfaction or staff development; development or marketing collaborations, formations of joint ventures or partnerships or the completion of other similar transactions intended to enhance
the Company’s revenue or profitability or enhance its customer base; merger and acquisitions; and other similar criteria consistent with the foregoing. Performance goals applicable to an annual incentive award shall be determined by the Plan
Administrator and may be established on an absolute or relative basis and may be established on a corporate-wide basis or with respect to one or more business units, divisions, Subsidiaries or business segments. Relative performance may be measured
against a group of peer companies, a financial market index or other objective and quantifiable indices. Performance goals may be adjusted for certain events to be determined by the Plan Administrator, including but not limited to:
(i) restructurings, discontinued operations, extraordinary items, and other unusual, infrequent or non-recurring charges or events, (ii) asset write-downs, (iii) significant litigation or claim
judgments or settlements, (iv) acquisitions or divestitures, (v) any reorganization or change in the corporate structure or capital structure of the Company, (vi) an event either not directly related to the operations of the Company,
subsidiary, division, business segment or business unit or not within the reasonable control of management, (vii) foreign exchange gains and losses, (viii) a change in the fiscal year of the Company, (ix) the cumulative effects of tax
or accounting changes in accordance with GAAP, or (x) the effect of changes in other laws or regulatory rules affecting reported results. 

2.8    “Plan” means this CarGurus, Inc. Annual Incentive Plan, as in effect from time to time. 

2.9    “Plan Administrator” means, (a) with respect to executive officers, the Committee and
(b) with respect to all other employees, the Chief Executive Officer of the Company. 

2.10    “Subsidiary” means any corporation or partnership, at least 20% of the outstanding voting stock,
voting power or partnership interest of which is owned, directly or indirectly, by the Company. 

III.    Participation. All salaried employees of the Company and its Subsidiaries shall be eligible to participate in
the Plan for each fiscal year. The Company’s fiscal year begins on January 1. 
 IV.    Annual Incentive
Award. 
 4.1    Target Incentive Award. At the beginning of each fiscal year, the Plan Administrator
shall establish target incentive awards as a percentage of each Participant’s base salary for the fiscal year or a specified dollar amount. Each Participant shall be eligible to receive an annual incentive award for the fiscal year based on the
achievement of business and financial Performance Goals, and the Participant’s individual Performance Goals, if applicable, during the fiscal year. The amount actually paid to a Participant may be more or less than the target incentive award
amount, depending on the extent to which the Performance Goals are satisfied. 

  
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 4.2    Performance Goals. 

(a)    Business and Financial Goals. At the beginning of each fiscal year, the Plan Administrator shall establish
the applicable business and financial Performance Goals for the fiscal year, which goals may be adjusted throughout the fiscal year at the Plan Administrator’s discretion. 

(b)    Individual Goals. The Plan Administrator shall determine which Participants shall have individual
Performance Goals as part of their incentive award calculation. At the beginning of each fiscal year, the Plan Administrator shall establish each Participant’s individual Performance Goals for the year, if applicable. 

(c)    Weighting. At the time the Plan Administrator establishes Performance Goals for each fiscal year, the Plan
Administrator will determine the weighting for each Participant with respect to the business and financial goals and the individual goals. The weighting of the types of goals need not be uniform as to all Participants. 

4.3    Approval of Award Incentive Award Payments. 

(a)    At the end of the fiscal year, the Plan Administrator shall determine the amount of each Participant’s
incentive award, if any, based on the achievement of the business and financial Performance Goals and, if applicable, the achievement of the individual Performance Goals, including without limitation, the Participant’s contribution to the
satisfaction of the business and financial Performance Goals. The Plan Administrator shall have sole discretion to determine whether and to what extent the Performance Goals have been met and the amount of incentive awards to be paid. The Plan
Administrator may adjust the performance results for extraordinary items or other events, as the Plan Administrator deems appropriate. 

(b)    If the threshold level of business and financial performance is not achieved, no incentive awards will be
paid. 
 (c)    A Participant has no contractual right to an annual incentive award. The Committee has discretion to
determine whether a Participant will receive an annual incentive award and has discretion to determine the amount of the annual incentive award, if any. 

4.4    Newly Hired Employees, Promotions and Transfers. Employees who are newly hired or who are promoted or
transferred into a position eligible to participate in the Plan during the fiscal year may be eligible to receive a prorated incentive award calculated in whole months based on the relative time spent in the eligible position during the fiscal year,
as determined by the Plan Administrator. If a Participant is transferred to an affiliate of the Company (or into a position with a different annual incentive award target percentage) during the fiscal year, the Participant’s Performance
Goals may be adjusted to reflect the change in Employer or position. If a Participant is transferred into a position that is not eligible to participate in the Plan during the fiscal year, the Participant may be eligible to receive a prorated award
calculated in whole months based on the relative time spent in the eligible position during the fiscal year, as determined by the Plan Administrator. 

  
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 4.5    Payment of Annual Incentive Award. Each annual incentive award
for a fiscal year, if any, shall be paid in cash to the Participant in a single lump sum payment between January 1 and March 15 of the calendar year following the end of the fiscal year. 

4.6    Withholding Tax. Each Employer shall withhold from each annual incentive award payment an amount sufficient
to satisfy all federal, state and local tax withholding requirements relating to the incentive award. 
 V.    Termination
of Employment. Except as provided below, a Participant must be employed by the Employer on the date that the annual incentive award is paid in order to receive an annual incentive award for the year. If a Participant’s employment
terminates on account of retirement, death or disability, or as otherwise determined by the Plan Administrator, the Plan Administrator may determine in its sole discretion that a pro rata portion of the Participant’s award for the year will be
paid, based on achievement of the Performance Goals. The pro-rated annual incentive award, if any, shall be paid as described in Section 4.5. 

VI.    Administration. The Plan Administrator administers the Plan. The Plan Administrator shall have full power and
discretionary authority to interpret and administer the Plan, to make all determinations, including all participation and annual incentive award determinations, and to prescribe, amend and rescind any rules, forms or procedures as the Plan
Administrator deems necessary or appropriate for the proper administration of the Plan and to make any other determinations and take such other actions as the Plan Administrator deems necessary or advisable in carrying out its duties under the Plan.
Any action required of the Plan Administrator under the Plan shall be made in the Plan Administrator’s sole discretion and not in a fiduciary capacity. All decisions and determinations by the Plan Administrator shall be final, conclusive and
binding on the Company, the Participants, and any other persons having or claiming an interest hereunder. All annual incentive awards shall be awarded conditional upon the Participant’s acknowledgement, by continuing in employment with
the Employer, that all decisions and determinations of the Plan Administrator shall be final and binding on the Participant, his or her beneficiaries and any other person having or claiming an interest in such incentive award. 

VII.    General Provisions. 

7.1    Transferability. No incentive award under this Plan shall be transferred, assigned, pledged or encumbered by
the Participant or subject to any claim of any creditor, and, in particular, to the fullest extent permitted by law, all such payments, benefits and rights shall be free from attachment, garnishment, trustee’s process, or any other legal or
equitable process available to any creditor of such Participant. In the event of a Participant’s death, any amounts payable under this Plan, as determined by the Plan Administrator, shall be paid to the Participant’s estate. 

7.2    Unfunded Arrangement. The Plan is an unfunded incentive compensation arrangement. Nothing contained in the
Plan, and no action taken pursuant to the Plan, shall create or be construed to create a trust of any kind. Each Participant’s right to receive an annual incentive award shall be no greater than the right of an unsecured general creditor of the

  
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Employer. All incentive awards shall be paid from the general funds of the Employer, and no special or separate fund shall be established and no segregation of assets shall be made to assure
payment of incentive awards. 
 7.3    No Rights to Employment. Nothing in the Plan, and no action taken pursuant
hereto, shall confer upon a Participant the right to continue in the employ of the Employer, or affect the right of the Employer to terminate a Participant’s employment at any time for cause or for no cause whatsoever. 

7.4    Clawback and Recoupment Policies. All incentive awards paid under this Plan are subject to the terms of any
clawback or recoupment policies approved by the Board or Committee that may be applicable to the employees of the Company, as in effect from time to time, whether or not approved before or after the effective date of the Plan. 

7.5    Section 409A. The Plan is intended to comply with the short-term deferral rule set forth in the regulations
under section 409A of the Code, in order to avoid application of section 409A to the Plan. If and to the extent that any payment under this Plan is deemed to be deferred compensation subject to the requirements of section 409A, this Plan shall be
administered so that such payments are made in accordance with the requirements of section 409A. 

7.6    Termination and Amendment of the Plan. The Board may amend or terminate the Plan at any time. 

7.7    Successors. The Plan shall be binding upon and inure to the benefit of the Company, its successors and
assigns, and each Participant and his or her heirs, executors, administrators and legal representatives. 

7.8    Applicable Law. The Plan shall be construed and governed in accordance with the laws of the State of
Delaware. 

  
 5Exhibit 10.2

RESCISSION AGREEMENT

 

This RESCISSION AGREEMENT (this “Agreement”) is made as of March 30, 2018, by and between Health & Beauty Group, Inc., a California corporation (“Health & Beauty”), and America Great Health (the “Company”) (herein as the “Parties”), and is made with reference to the following undisputed facts:

 

A.        The Company and Health & Beauty entered into that certain Agreement dated January 04, 2018 (the “Stock Purchase Agreement”) pursuant to which  the Company agreed to purchase 51% of common shares of the Seller, for an aggregate purchase price of $765,000, which consisting of  63,750,000 outstanding shares of the Company’s common stock at $0.012 per share.

 

B.         The transactions contemplated by the Stock Purchase Agreement closed on March 15, 2018 (the “Closing Date”).

 

C.         The Parties now desire to rescind all transactions and actions contemplated by the Stock Purchase Agreement as set forth herein.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, or other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1.          Rescission. Effective as of the original date of this agreement,  March 30,, 2018, and anything in the Stock Purchase Agreement to the contrary notwithstanding, all transactions, actions, covenants set forth in the Agreement are hereby rescinded and all Parties hereby agree to co-operate with reverting the Parties back to before the Closing Date.

2.          Release. Except for the rights and obligations of the Parties arising from this Agreement, each of the Parties hereby, for himself/itself, his/its employees, agents, partners, members, representatives, controlled entities and affiliates, successors and assigns, discharges and releases all other Parties and its past and present employees, agents, executors, administrators, trustees, heirs, attorneys, partners, insurers, representatives, assigns, predecessors, successors and related entities (the “Released Parties”), from any and all claims, damages, actions, judgments, obligations, attorneys’ fees, indemnities, subrogations, duties, demands, controversies and liabilities of every nature at law or in equity, liquidated, or unliquidated, known or unknown, matured or unmatured, foreseeable or unforeseeable, which they had or have arising out of any circumstance, thing, or event alleged, or arising out of the Stock Purchase Agreement and any and all other matters of any nature whatsoever in connection with the Stock Purchase Agreement.

3.          Waiver of Unknown Claims. It is understood and agreed that the releases set forth hereinabove extend to all claims of every kind, nature and description whatsoever, known or unknown, suspected or unsuspected and any and all rights under the provisions of Section 1542 of the Civil Code of California or under any comparable statute of any other jurisdiction. Each of the Parties expressly acknowledges that he/it is familiar with and expressly waives and relinquishes every right or benefit he/it has or may have under the provisions of Section 1542 of the Civil Code of California which reads as follows:

 

“A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.”

4.          Entire Agreement. This Agreement constitutes the entire contract between the parties and it supersedes all prior and contemporaneous agreements, arrangements, negotiations and understandings between the parties relating to the subject matter hereof. There are no other understandings, statements, promises or inducements among the parties, oral or otherwise, contrary to the terms of this Agreement. No representations, warranties, covenants or conditions, express or implied, whether by statute or otherwise, other than as set forth herein, have been made by any party hereto regarding the subject matter hereof.

5.          Invalidity of Provisions. If any provision of this Agreement is declared invalid by any tribunal, then such provision shall be deemed automatically adjusted to the minimum extent necessary to conform to the requirements for validity as declared at such time and, as so adjusted, shall be deemed a provision of this Agreement as though originally included herein. In the event that the provision invalidated is of such a nature that it cannot be so adjusted, the provision shall be deemed deleted from this Agreement as though such provision had never been included herein. In either case, the remaining provisions of this Agreement shall remain in effect.

6.          Attorneys’ Fees and Costs. In the event that any action or proceeding is brought to enforce this Agreement, then the non-prevailing party shall be liable to the prevailing party for all expenses and costs incurred by the prevailing party in protecting or enforcing its rights hereunder, including but not limited to reasonable attorneys’ fees and costs regardless of whether those costs are expressly permitted by the California Code of Civil Procedure.

7.          Modification, Amendment or Waiver. No supplement, modification, amendment, or waiver of any term, provision or condition of this Agreement shall be binding or enforceable unless executed in writing by all the parties hereto.

8.          Interpretation. The parties acknowledge and represent that all parties have assisted in the preparation of this document and any ambiguities contained herein should not be presumptively construed against any party.

9.          Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one with the same instrument.

10.        Applicable Law; Venue. This Agreement shall be governed by and construed and enforced in accordance with and subject to the laws of the State of California, U.S.A. Any and all actions brought under this Agreement shall be brought in the state and/or federal courts of the United States sitting in Los Angeles County, California.

11.        Copies or Facsimiles. Copies or Faxed signatures will carry same weight as originals.

 

IN WITNESS WHEREOF, the undersigned have duly executed this Agreement as of the date first above written.

  

 

America Great Health

By: _______________________

Print Name: Mike Wang

Health & Beauty Group, Inc.

By:________________________

Print Name: Mike Wang

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