Document:

Exhibit 10.2

 

Supplemental Agreement

 

of

 

Investment Agreement

 

Relating
to

 

Future
Gas Station (Beijing) Technology Co., Ltd.

 

    	 

     

    

 

Supplemental
Agreement

 

This Supplemental Agreement of Investment
Agreement Relating to Future Gas Station (Beijing) Technology Co., Ltd. ("this Supplemental Agreement") is
executed on August 21, 2018 in Beijing in the People's Republic of China ("PRC")(for the purpose of this Agreement
only, excluding the Hong Kong Special Administrative Region, the Macao Special Administrative Region and Taiwan) by and among:

 

		1.	Future Gas Station (Beijing) Technology Co., Ltd. ("FGS"), a limited liability company incorporated
in Beijing, PRC under the laws of PRC, with its unified social credit code as 91110108MA0033XK5Y, with its legal representative
as Yang Song, and with its domicile as Room 1315, Unit 2, Floor 13, Building 36, Deshengmenwai Street, Xicheng District, Beijing;

 

		2.	Yang Song, whose identity card No. is XXXXX;

 

		3.	Rui Liu, whose identity card No. is XXXXX;

 

		4.	Zhizhuo Peng, whose identity card No. is XXXXX;

 

		5.	Xing Yao, whose identity card No. is XXXXX;

 

		6.	Gang Yang, whose identity card No. is XXXXX;

 

		7.	Lin Song, whose identity card No. is XXXXX;

 

		8.	Beijing Baihengda Petroleum Technology Co., Ltd. (“Beijing BHD”), a limited
liability company incorporated in Beijing, PRC under the laws of the PRC; and

 

		9.	Nanjing Recon Technology Co., Ltd. (“Nanjing RECON”), a limited liability
company incorporated in Nanjing, PRC under the laws of the PRC

 

where:

 

Yang Song, Rui Liu, Zhizhuo Peng and Xing
Yao are collectively referred to as “Founding Shareholders”; Beijing BHD and Nanjing RECON are collectively
referred to as “Investors”; Yang Song, Rui Liu, Zhizhuo Peng, Xing Yao, Gang Yang, and Lin Song are collectively
referred to as “Existing Natural Person Shareholders” or severally referred to as “an Existing Natural
Person Shareholder”; and the Investors and the Existing Natural Person Shareholders are collectively referred to as “Shareholders”
or “Parties”, and each referred to as a “Party”.

 

    	2

     

    

 

WHEREAS:

 

		1.	The Parties signed an Investment Agreement Relating to Future Gas Station (Beijing) Technology
Co., Ltd. ("this Investment Agreement") on August 21, 2018 in Beijing;

 

		2.	The Investors agree to invest no more than RMB 42,395,200 yuan (including RMB 10 million in cash
and shares of the listed company equivalent to RMB 33,295,200)(“Investment Amount”) into FGS by purchasing some
shares of the Founding Shareholders (“this Equity Purchase”) and by increasing contribution to FGS ("this
Capital Increase")(this Equity Purchase and this Capital Increase are collectively referred to as “this Investment”);
among the Investment Amount, RMB 10 million in cash will be invested by increasing contribution to FGS and the shares of the listed
company equivalent to no more than RMB 33,295,200 will be invested by purchasing the shares of the Founding Shareholders.

 

		3.	The Parties agree to sign this Supplemental Agreement to address pending issues not included in
the Investment Agreement.

 

On the principles
of equality and mutual benefit and through friendly negotiation, the Parties to this Supplemental Agreement hereby agree as follows
with respect to this Investment:

 

 Article.1      Conditions Precedent

 

		1.1	The Investors perform their obligations of the closing of this Equity Purchase and this Equity
Increase (except under Article 2.2 under this Supplemental Agreement) under the Investment Agreement and Supplemental Agreement
subject to the following conditions precedent:

 

		1.1.1	The representations and warranties made by FGS and the Existing Natural Person Shareholders in
the Investment Agreement and Supplemental Agreement and in any certificates or other documents submitted pursuant to the Investment
Agreement and Supplemental Agreement shall be true, accurate and complete in all material respects from the date of making such
representations and warranties through the closing date of this Equity Purchase;

 

		1.1.2	No change that may bring any material adverse effect on FGS has occurred with respect to assets,
financial status, business status, and technical and legal aspects of FGS;

 

    	3

     

    

 

		1.1.3	(1) The shareholders’ meeting of FGS has deliberated and approved: (i) the Equity Transfer
and the Equity Purchase; (ii) execution of all documents relating to the Equity Transfer and the Equity Purchase; (iii) enactment
of new Articles of Association; and (2) FGS has obtained a corporate business license issued by the industrial and commercial administration
with respect to this Equity Transfer and this Equity Purchase, and has furnished a copy of the corporate business license to the
Investors, and has updated the shareholder information according to Article 2.3 hereof at the industrial and commercial administration.

 

 Article.2      Capital Increase 

 

		2.1	Among the total investment in cash, RMB 4.1808 million shall be used as registered capital and
the remaining RMB 5.8192 million shall be treated as Additional Paid-in Capital.

 

		2.2	The Investors shall pay the capital increase amount of this Capital Increase to FGS according to
the following steps:

 

(1) Within seven days from
the date hereof, the Investors shall remit RMB 2 million into the designated account of FGS in the monetary form; considering that
the Investors have paid an advance of RMB 390,000 to FGS for the business operation purpose before the signing of this Agreement,
the investment amount that the Investors shall pay to FGS this time is RMB 1.61 million;

 

(2) By October 31, 2018, and
if all the Conditions Precedent in Article 1.1 of this Supplemental Agreement are met (whenever is later) or the Investors waive
in writing, after appraising the performance of FGS, the Investors shall pay RMB 1 million as the second installment of capital
increase amount to FGS;

 

(3) From November 1, 2018 to
March 31, 2019, and if all the Conditions Precedent in Article 1.1 of this Supplemental Agreement are met (whenever is later) or
the Investors waive in writing, in view of actual fund consumption of FGS with respect to gas station deployment, equipment customization
requirements, promotion progress, and research and development progress, the Investors shall pay the third installment of capital
increase amount to FGS, in which the amount available for construction of new gas stations shall not be more than RMB 5 million
(expectedly 200 gas stations to be constructed, each at a cost of RMB 25,000); and

 

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(4) By May 31, 2019, on condition
that the conditions precedent specified in Article 1.1 are fully satisfied or are waived by the Investors in writing, the Investors
shall pay off the remaining unpaid capital increase amount to FGS. (“Closing of this Capital Increase” and “Closing
of this Investment”).

 

		2.3	After FGS records the shareholders at the local industry and commerce bureau as specified in Article
2.3 under the Investment Agreement, the Investors shall have all corresponding shareholder rights and assume corresponding shareholder
obligations in accordance with the stipulations of the laws, the Investment Agreement/ Supplemental Agreement and the effective
Articles of Associations of Future Gas Station (Beijing) Technology Co., Ltd.

 

 Article.3      Equity Purchase 

 

		3.1	On condition that the conditions precedent specified in Article 5.1 of the Investment Agreement
are fully satisfied or are waived by the Investors in writing, the Investors shall issue to the Existing Natural Person Shareholders
2,435,284 Restricted Shares of RECON TECHNOLOGY, LTD with total value no more than RMB 33,295,200.
See Exhibit I for the number of the Restricted Shares and lock-up terms of each Natural Person Shareholders.

 

		3.2	The Parties are executing and delivering this Agreement
in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended
(the “1933 Act”).

 

		3.3	Each Existing Natural Person Shareholder is acquiring the
Restricted Shares and designating the Restricted Shares Recipients for his own account and not with a view towards, or for resale
in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the 1933 Act.
Each of Existing Natural Person Shareholders does not presently have any agreement or understanding, directly or indirectly, with
any Third Party to distribute any of the Restricted Shares.

 

		3.4	Each Existing Natural Person Shareholder has such knowledge and experience in financial and
                                                                               business matters that he can represent himself and is capable of evaluating the merits and risks of receiving the Restricted
                                                                               Shares as consideration of the target equity. Each Existing Natural Person Shareholder is not relying on the Investors with
                                                                               respect to the tax and other economic considerations of receiving the Restricted Shares, and Existing Natural Person
                                                                               Shareholders has relied on the advice of, or has consulted with, only his own advisor(s).

 

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		3.5	Each Existing Natural Person Shareholder, in making the
decision to receive the Restricted Shares, has relied solely upon independent investigations made by it and/or its representatives,
if any. Each Existing Natural Person Shareholder during the course of this transaction, and prior to the execution date, has had
the opportunity to ask questions of and receive answers from the management of the Investors concerning the terms and conditions
of the offering of the Restricted Shares and to receive any additional information, documents, records and books relative to
its business, assets, financial condition, results of operations and liabilities (contingent or otherwise) of the Investors.

 

		3.6	Each Existing Natural Person Shareholder is not conducting
the transactions under this Supplemental Agreement 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 not previously known to Each Existing Natural Person Shareholder
in connection with investments in securities generally.

 

		3.7	Each Existing Natural Person Shareholder understands that
no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation
or endorsement of the Restricted Shares or the fairness or suitability of receiving the Restricted Shares as consideration nor
have such authorities passed upon or endorsed the merits of the issuance of the Restricted Shares.

 

		3.8	Exemption

 

(1) Each Existing Natural Person Shareholder
realizes that acquiring Restricted Shares is speculative and involves certain risks, including the possible loss of the value
of all the Restricted Shares.

 

(2) Transfer or Resale. Each Existing Natural
Person Shareholder understands that:

 

(i) The Restricted Shares have
not been and are not being registered under the 1933 Act, and may not be offered for sale, sold, assigned or transferred unless:

 

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(A) subsequently registered
thereunder or

 

(B) Each Existing Natural Person
Shareholder shall have delivered to the Investors an opinion of counsel, in a form reasonably acceptable to the Investors, to the
effect that such Restricted Shares to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption
from such registration;

 

(ii) neither the Investors nor
any other person is under any obligation to register the Restricted Shares under the 1933 Act or any state securities laws or
to comply with the terms and conditions of any exemption thereunder;

 

(iii) Each Restricted Shares
Recipient will not, during the period that U.S. securities laws forbid resales of the Restricted Shares (“Restricted Period”),
offer, sell, pledge or otherwise transfer any Restricted Shares;

 

(iv) Each Existing Natural Person
Shareholder agrees that, besides the restrictions on transfer under U.S. securities laws, they are also limited by the lock-up
periods of Restricted Shares under Article 5 of this Supplemental Agreement;

 

(v) After the Restricted Periods
and lock-up periods end, each restricted shares recipient will offer, sell, pledge or otherwise transfer the Restricted Shares
only pursuant to registration under the 1933 Act or an available exemption therefrom and, in accordance with all applicable state
and foreign securities laws and this Supplemental Agreement;

(vi) The stock certificates for the Restricted Shares, unless and until registered, shall bear a restrictive legend in substantially
the following form (and a stop-transfer order may be placed against transfer of such stock certificates):

 

THE SHARES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) AND ARE “RESTRICTED
SECURITIES” AS THAT TERM IS DEFINED IN RULE 144 UNDER THE ACT. THE SHARES MAY NOT BE OFFERED FOR SALE, SOLD OR OTHERWISE
TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER THE ACT, THE AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY.

 

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THE SECURITIES EVIDENCED BY THIS
CERTIFICATE ARE FURTHER SUBJECT TO CERTAIN RESTRICTIONS DESCRIBED IN THE RESOLUTION OF THE BOARD OF DIRECTORS DATED AUGUST __,
2018 GRANTING SUCH SHARES. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE SUCH
RESTRICTIONS.

 

 Article.4      Representations and Warranties of FGS and Existing Natural Person Shareholders

 

		4.1	FGS and the Existing Natural Person Shareholders represents and warrants that in the agreement
term and agreed period, no change that may bring any material adverse effect on FGS has occurred with respect to assets, financial
status, business status, and technical and legal aspects of FGS;

 

		4.2	All business based on data and platform of FGS shall be undertaken by FGS or its divisions or subsidiaries,
except agreed by the parties.

 

 Article.5
      Lock-up Period of Restricted Shares, Performance Commitments of FGS, and
Compensation

 

		5.1	The Restricted Shares granted by the Investors to the Existing Natural Person Shareholders at
the closing of this Equity Purchase are limited by a lock-up period, where

 

(1) the lock-up period of the
shares granted to Rui Liu, Zhizhuo Peng, Xing Yao and Lin Song is one year after the granting of the shares and, upon expiry of
such lock-up period, the Investors shall assist such Shareholders to unlock the shares;

 

(2) the lock-up period of the
shares granted to Yang Song and Gang Yang is three years, and shall be unlocked in three phases in the following way:

 

A. the Investors shall unlock
50% of the granted shares on the first anniversary of granting the shares if the goal agreed by both parties for the contract period
is accomplished; B. the Investors shall unlock 30% of the granted shares on the second anniversary of granting the shares if the
goal agreed for the contract period is still maintained; and

 

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C. the Investors shall unlock
the remaining 20% of the granted shares on the third anniversary of granting the shares if the goal agreed for the contract period
is still maintained.

 

		5.2	On the first anniversary of the date of signing this Agreement, FGS shall fulfill the following
performance goals:

 

(1) The number of gas stations
deployed by FGS reaches 670, an increase of 200 compared to the basis of 470 of the date of this Agreement;

 

(2) the number of users actually
using the services of FGS reaches 1.1 million, an increase of 800,000 compared to the basis of 300,000 of the date of this Agreement;
and

 

(3) the daily trading amount
on the platform of FGS reaches RMB 3.3 million, an increase of RMB 2.70 million compared basis of RMB 600,000 of the date of this
Agreement.

 

		5.3	FGS shall not use the fund generated from its operation as the resource of capital as allowance
to get any potential user or achieve the above goals.

 

		5.4	If FGS does not accomplish any or more of the three performance goals specified in Article 5.2
hereof,

 

(1) the parties agree to calculate
the finished percentage of each performance goals according to Article 5.5 in this Supplemental Agreement, based on the actually
finished status of the performance goals, and the average of the finished percentage of three performance goals. The percentage
of finished performance goal or exceeded is calculated as 100%.

 

(2) The number of
Restricted Shares to unlock is calculated on the average of the finished percentage of three performance goals and the total
number of Restricted Shares. The reset of that installment of the shares will be cancelled immediately and retrieved. All
individual shareholders shall cooperate with the Investors to return obtained Restricted Shares , and can only retrieve
corresponding compensation shares from the unlocked Restricted Shares held by Yang Song and Gang Yang.

 

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		5.5	Calculation of finished percentages of three performance goals as follow:

 

Finished Percentage of Gas Stations
= 

 

Finished Percentage of Users
Purchasing through DT Refuel App = 

 

Finished Percentage of Daily
Operating Revenue = 

 

Averaged Deviation
Percentage  = 

 

 Article.6        Confidentiality

 

		6.1	Except as otherwise agreed in this Agreement, the Parties to this Agreement shall make their best
efforts to keep strict confidentiality of any technical or commercial information in any form obtained from any other party in
the course of negotiating, signing or performing this Agreement or performing due diligence, as well as any undisclosed information
and data (whether written, verbal, tangible or intangible), including any content of this Agreement and other potential cooperation
matters and transactions between the Parties. Any party shall limit its directors, officers, employees, agents, consultants, subcontractors,
suppliers, customers, and the like in obtaining such information only as necessary for properly performing the obligations under
this Agreement.

 

		6.2	The foregoing limitation does not apply:

 

		6.2.1	to the information that is already available to the general public when being disclosed;

 

		6.2.2	to the information that is already available to the general public after disclosure not due to
a fault of the receiver of the information;

 

		6.2.3	to the information which, as proved by the receiver, is already grasped by the receiver before
disclosure but not obtained directly or indirectly from the other Party;

 

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		6.2.4	when any Party is obligated to disclose such confidential information to the relevant government
agencies, stock trading institutions, or the like as required by law, or when any Party discloses such confidential information
to its direct legal counsel and financial adviser as required by its normal business operations.

 

		6.3	Any party to this Agreement shall instruct its directors, officers, employees, agents, consultants,
subcontractors, suppliers, customers as well as the directors, officers, employees, agents, consultants, subcontractors, suppliers,
and customers of its affiliates to abide by the confidentiality obligations set out in Article 16.1.

 

		6.4	No matter how this Agreement is dissolved or terminated, the Parties shall abide by the confidentiality
obligations set forth in Article 16.1.

 

 Article.7       Miscellaneous

 

		7.1	If any Existing Natural Person Shareholder intends to transfer all or part of the shares held by
him in FGS to any third party other than the Shareholders, it shall not violated Article 11.1 of Investment Agreement.

 

		7.2	Within sixty (60) days after the signing of this Supplemental Agreement, if the conditions precedent
for the closing of this Capital Increase as specified in Article 1 hereof are not satisfied and the Investors have not waived such
conditions precedent, in which case the Investors may jointly deliver a written notice to terminate this Agreement. FGS shall return
the paid fund by investor within thirty (30) days after receiving notice from, with an interest of 24% annually.

 

		7.3	Unless otherwise specified, definition in this Supplemental Agreement shall be the same with the
Investment Agreement.

 

		7.4	Excepted as otherwise expressly stated herein, all the terms and conditions of this Supplemental
Agreement shall remain in full force and effect without any change.

 

		7.5	This Agreement is made in ten (10) original counterparts; FGS, existing Shareholders and the Investors
each hold one (1) counterpart, and other original counterparts are filed to the industrial and commercial administration for the
record.

 

		7.6	This Agreement shall become effective on the date of being executed by the legal representatives
or legally authorized representatives of the Parties and/or being stamped with the common seals of FGS and the Investors.

 

(The following is intentionally left blank
for the purpose of signature)

 

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(This page is intentionally left blank for the purpose of signing
the Investment Agreement Relating to Future Gas Station (Beijing) Technology Co., Ltd.)

 

Company:

 

Future Gas Station (Beijing) Technology
Co., Ltd. (seal)

 

	Signatory:	  /s/ Yang Song	 
	Name: Yang Song	 
	Title: Legal representative	 

 

    	 

     

    

 

(This page is intentionally left blank for the purpose of signing
the Investment Agreement Relating to Future Gas Station (Beijing) Technology Co., Ltd.)

 

Existing Natural Person Shareholders:

 

	Yang Song	 
	 	 
	Signature: 	/s/ Yang Song	 
	 	 
	Rui Liu	 
	 	 
	Signature: 	/s/ Rui Liu	 
	 	 
	Zhizhuo Peng	 
	 	 
	Signature: 	/s/ Zhizhuo Peng  	 
	 	 
	Xing Yao	 
	 	 
	Signature:	/s/ Xing Yao	 
	 	 
	Gang Yang	 
	 	 
	Signature: 	/s/ Gang Yang	 
	 	 
	Lin Song (seal)	 
	 	 
	Signature: 	/s/ Lin Song	 

 

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(This page is intentionally left blank
for the purpose of signing the Investment Agreement Relating to Future Gas Station (Beijing) Technology Co., Ltd.)

 

Investors:

 

Beijing Baihengda Petroleum Technology
Co., Ltd. (seal)

 

	Signatory: 	/s/Guangqiang Chen	 
	Name: Guangqiang Chen	 
	Title: Legal representative	 
	 	 
	Nanjing Recon Technology Co., Ltd. (seal)	 
	 	 
	Signatory: 	/s/
    Shenping Yin	 
	Name: Shenping Yin	 
	Title: Legal representative	 

 

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Exhibit I Issuance of Restricted Shares

 

	 	Name	 	ID. No.	 	Address	 	Number of Restricted Shares	 	Lock-up Term	 	One Year Lock-up(1)	 	Two Years Lock-up(1)	 	Three Years Lock-up(1)
	1. 	 	Yang Song	 	XXXX		 	 	 	 	 	1,327,230	 	 	50%: one year
 
 30%:
two years 
 20%: three years
 
	 	 	663,615	 	 	398,169	 	265,446
	2. 	 	Gang Yang	 	XXXX		 	 	 	 	 	487,057	 	 	50%: one year
 
 30%:
two years 
 20%: three years
 
	 	 	243,529	 	 	146,117	 	97,411
	3. 	 	Rui Liu	 	XXXX		 	 	 	 	 	182,646	 	 	100%: one year	 	 	182,646	 	 		 	
	4. 	 	Zhizhuo Peng	 	XXXX		 	 	 	 	 	182,646	 	 	100%: one year	 	 	182,646	 	 		 	
	5. 	 	Xing Yao	 	XXXX		 	 	 	 	 	194,823	 	 	100%: one year	 	 	194,823	 	 		 	
	6. 	 	Lin Song	 	XXXX		 	 	 	 	 	60,882	 	 	100%: one year	 	 	60,882	 	 		 	
	 	 	 	 	 	 	 	Total(2)		 	 	2,435,284	 	 	 	 	 	1,528,141	 	 	544,286	 	362,857

 

(1) Can only be unlocked after all of the
conditions precedent under Article 5.2 of the supplemental agreement have been met.

(2) Calculate on $2/share of Recon Technology,
LTD, a central parity rate of Renminbi yuan to US dollar officially announced by the People's Bank of China on August 21, 2018
when the agreement was signed, and total shares’ value of RMB 33,295,200.

 

    	4Exhibit

Exhibit 10.1
SUMMARY OF DIRECTOR AND NAMED EXECUTIVE OFFICER COMPENSATION
This summary sets forth the compensation of the Directors of Kimball Electronics, Inc. (the “Company”).  The summary also includes compensation of the Company’s current Chief Executive Officer, Chief Financial Officer, and the three other most highly compensated executive officers, who will be referred to herein as our “Named Executive Officers.”
Director Compensation
All Non-Employee Directors receive annual retainer fees of $75,000 plus an additional $40,000 of retainer fees paid in shares of Common Stock of the Company for service as Directors.  As approved by the Board of Directors, effective November 1, 2018, the additional annual retainer fee of $40,000 paid in shares of Company Stock will increase to $65,000.  The Lead Independent Director of the Board of Directors, the Chairperson of the Audit Committee of the Board of Directors, and the Chairperson of the Compensation and Governance Committee of the Board of Directors each receive an additional $10,000 annual retainer fee. 
The Directors can elect to receive some or all of the $75,000 portion of their annual retainer fees and the additional $10,000 annual retainer fee, if applicable, in shares of the Company’s Common Stock.  The additional $40,000 ($65,000 effective November 1, 2018) of annual retainer fees shall be paid in shares of the Company’s Common Stock.  The Company maintains a Non-Employee Directors Stock Compensation Deferral Plan, which allows Non-Employee Directors to elect to defer all, or a portion of, their stock retainer fees until termination of service from the Board.  Shares of Common Stock will be issued either under the Company’s 2014 Stock Option and Incentive Plan or the Non-Employee Directors Stock Compensation Deferral Plan.  Directors are also reimbursed for reasonable travel expenses incurred in connection with Board and Committee meeting attendance.
Donald D. Charron, Chairman of the Board and Chief Executive Officer, is a Director and also an employee of the Company but does not receive compensation for his service as a Director.
Named Executive Officer Compensation
Base Pay
Periodically, the Compensation and Governance Committee of the Board of Directors reviews and approves the salaries that are paid to the Company’s executive officers.  The following are the current annualized base salaries for the Company’s Named Executive Officers:
	
				
	Donald D. Charron, Chairman of the Board, Chief Executive Officer
	$
	692,441
	

	John H. Kahle, Vice President, General Counsel, Chief Compliance Officer, Secretary
	$
	397,800
	

	Steven T. Korn, Vice President, North American Operations
	$
	315,297
	

	Michael K. Sergesketter, Vice President, Chief Financial Officer
	$
	312,878
	

	Christopher J. Thyen, Vice President, New Platforms
	$
	294,899
	

Cash Incentive Compensation
Each of the Named Executive Officers was eligible to participate in the Company’s 2014 Profit Sharing Incentive Bonus Plan (the “Plan”) during fiscal year 2018.  Under the Plan, cash incentives are accrued annually and paid in five installments over the succeeding fiscal year.  Except for provisions relating to retirement, death, permanent disability, and certain other circumstances described in a participant’s employment agreement, participants must be actively employed on each payment date to be eligible to receive any unpaid cash incentive installment.  The total amount of cash incentives accrued and authorized to be paid to the Named Executive Officers based on fiscal year 2018 results is listed below.  The Named Executive Officers received an installment of 50% of the payment in August 2018, and the remaining portion will be paid in equal installments of 12.5% each in September 2018, January 2019, April 2019, and June 2019.
	
				
	Donald D. Charron, Chairman of the Board, Chief Executive Officer
	$
	461,584
	

	John H. Kahle, Vice President, General Counsel, Chief Compliance Officer, Secretary
	$
	270,504
	

	Steven T. Korn, Vice President, North American Operations
	$
	210,279
	

	Michael K. Sergesketter, Vice President, Chief Financial Officer
	$
	207,871
	

	Christopher J. Thyen, Vice President, New Platforms
	$
	196,675
	

Stock Compensation
The Named Executive Officers may also receive a variety of stock incentive benefits under the Company’s 2014 Stock Option and Incentive Plan consisting of: incentive stock options, stock appreciation rights, restricted shares, unrestricted shares, restricted share units, or performance shares and performance units.
The following table summarizes the long-term performance shares (“LTPS”) issued in the Company’s Common Stock during August 2018 to the Company’s Named Executive Officers pursuant to their fiscal year 2018 performance share awards:
	
				
	 
	 
	

LTPS Grant
(Shares Issued) (1)

	Donald D. Charron, Chairman of the Board, Chief Executive Officer
	 
	74,351
	

	John H. Kahle, Vice President, General Counsel, Chief Compliance Officer, Secretary
	 
	26,802
	

	Steven T. Korn, Vice President, North American Operations
	 
	15,493
	

	Michael K. Sergesketter, Vice President, Chief Financial Officer
	 
	14,948
	

	Christopher J. Thyen, Vice President, New Platforms
	 
	14,590
	

	 
	 
	 

	(1) Shares have not been reduced by the number of shares withheld to satisfy tax withholding obligations.

During August 2018, the Compensation and Governance Committee awarded LTPS grants for fiscal year 2019 to key employees, including the Named Executive Officers, under the Company’s 2014 Stock Option and Incentive Plan.  One-third (1/3) of the August 2018 LTPS awards will vest annually over the succeeding three-year period.
The following table summarizes the maximum number of performance shares granted in August 2018 to the Company’s Named Executive Officers for fiscal year 2019: 
	
				
	 
	 
	LTPS Award
 (number of shares)

	Donald D. Charron, Chairman of the Board, Chief Executive Officer
	 
	65,692
	

	John H. Kahle, Vice President, General Counsel, Chief Compliance Officer, Secretary
	 
	16,746
	

	Steven T. Korn, Vice President, North American Operations
	 
	13,181
	

	Michael K. Sergesketter, Vice President, Chief Financial Officer
	 
	12,934
	

	Christopher J. Thyen, Vice President, New Platforms
	 
	12,351
	

The number of shares to be issued to each participant is based upon a combination of the bonus percentage attainment component calculated under the Company’s profit sharing incentive bonus plan, adjusted to a three-year average bonus percentage, and a growth attainment component, which is the Company’s growth in sales revenue based on comparison of its three-year compounded annual growth rate (“CAGR”) with the Electronics Manufacturing Services Industry’s three-year CAGR.
Retirement Plans
The Named Executive Officers participate in a defined contribution, participant-directed retirement plan that all domestic employees are eligible to participate in (the “Retirement Plan”).  The Retirement Plan provides for voluntary employee contributions as well as a discretionary Company contribution which is determined annually by the Compensation and Governance Committee of the Board of Directors.  Each eligible employee’s Company contribution is defined as a percent of eligible compensation, the percent being identical for all eligible employees, including Named Executive Officers.  Participant contributions are fully vested immediately, and Company contributions are fully vested after five years of participation.  All Named Executive Officers are fully vested.  The Retirement Plan is fully funded.  For those eligible employees who, under the 1986 Tax Reform Act, are deemed to be highly compensated, their individual Company contribution under the Retirement Plan is reduced.  For employees who are eligible, including all Named Executive Officers, there is a nonqualified, supplemental employee retirement plan (“SERP”) in which the Company contributes to the account of each individual an amount equal to the reduction in the contribution under the Retirement Plan arising from the provisions of the 1986 Tax Reform Act.  The SERP investment is primarily composed of employee contributions.

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