Document:

Exhibit

TELEPHONE AND DATA SYSTEMS, INC. (TDS)
2020 OFFICER BONUS PROGRAM
    
This bonus program covers all TDS officers other than the President and CEO of TDS.  Payments under this program to the TDS Telecom President and CEO and EVP/SVP officers of TDS Corporate require specific approval of the TDS Compensation Committee.  Bonuses for other officers covered by this program require the approval of the President and CEO of TDS.  This program does not apply to any officer of a TDS subsidiary other than the President and CEO of TDS Telecom.  

		
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	TDS EXECUTIVE OFFICER PARTICIPANTS:

		
	▪
	EVP, SVP and VP officers of TDS Corporate

		
	▪
	The TDS Telecom President and CEO will have the same company and individual performance weightings as the TDS executive officers.  However, this officer’s company performance bonus opportunity will be based on TDS Telecom’s approved 2020 Bonus Plan, which will be aligned with the metrics in this program but may contain additional performance measures.

		
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	PERFORMANCE MEASURES AND WEIGHTINGS:

	
			
	PERFORMANCE MEASURES
	Component Weighting
	Overall Plan Weighting

	Company Performance
	80%

	Consolidated Operating Revenue
	50%
	40%

	Consolidated Adjusted Earnings before Interest, Taxes, Depreciation, Amortization and Accretion
	40%
	32%

	Consolidated Capital Expenditures
	10%
	8%

	Individual Performance
	20%

		
	•
	COMPANY PERFORMANCE COMPONENT – WEIGHTING 80%: 

Actual performance will be assessed against the targeted performance for each performance measure. The performance measures are defined below:

		
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	Consolidated Operating Revenue:  Revenue generation is the primary driver to long-term growth in profitability and returns.  It is also an indicator of the success of past investments. Consolidated Operating Revenue will align with the externally reported metric.

		
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	Consolidated Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Accretion (EBITDA):  Adjusted EBITDA is a direct measure of the cash generated from the operations of the TDS businesses in a given year and the overall profitability of the company. The calculation of Adjusted EBITDA will align with the methodology used for external reporting purposes, which is currently defined as net income adjusted for income taxes, depreciation, amortization and accretion, loss on impairment of assets, gain or loss on sale of business and other exit costs, gain or loss on sale of licenses and exchanges, gain or loss on investment, gain or loss on asset disposals and interest expense.  

		
	•
	Consolidated Capital Expenditures:  The Capital Expenditure metric measures the enterprise’s management of its investments in property, plant and equipment and investment in future growth opportunities. Consolidated Capital Expenditures will align with the externally reported metric. 

1

		
	▪
	Adjustments to Company Performance Component Calculations:

		
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	Acquisitions/Divestitures:  Results associated with acquisitions and/or divestitures will be evaluated on a case-by-case basis to determine whether adjustments to target or actual results are warranted.

		
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	Other Adjustments:  Any adjustments to the target or actual bonus calculations will be presented to the Compensation Committee for review and approval. Adjustment recommendations will be limited to material accounting adjustments or major business decisions that, without their adjustment, would cause the calculated bonus results to differ materially from the unadjusted calculation and therefore not reflect the true performance delivered in the year.  Bonus expense will be included in the Adjusted EBITDA metrics.     

		
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	Bonus Ranges: The bonus ranges were set to reinforce the Company’s pay for performance culture. The minimum performance level for a performance measure needs to be achieved before any bonus for that performance measure is earned.  The ranges result in substantial reductions in bonuses when targets are not achieved, and greater rewards for above target performance.

		
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	Company Performance Measures:

	
			
	PERFORMANCE MEASURE
	MINIMUM
	MAXIMUM

	Consolidated Operating Revenue
	90%
	110%

	Consolidated Adjusted EBITDA
	85%
	115%

	Consolidated Capital Expenditures
	105%
	90%

		
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	Bonus Payouts As A Percent of Target At Minimum And Maximum Performance Levels:

	
				
	PERFORMANCE MEASURE
	MINIMUM
	TARGET
	MAXIMUM

	Consolidated Operating Revenue
	50%
	100%
	200%

	Consolidated Adjusted EBITDA
	50%
	100%
	200%

	Consolidated Capital Expenditures
	50%
	100%
	150%

Bonus payouts between the minimum and target and between target and maximum performance level for each performance measure will be computed by interpolation.

Any bonus for performance below the minimum percentage for a performance measure will be at the discretion of the Compensation Committee.

		
	▪
	The Performance Targets: They will be set by the Compensation Committee each year based on the plans and objectives of the business.  

		
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	INDIVIDUAL PERFORMANCE COMPONENT: WEIGHTING 20%

EVP/SVP and TDS Telecom President and CEO Component Weighting:  
•Key Objectives:            50%
•Overall Performance:      50%
 100%

		
	▪
	Key Objectives:  

With regard to this bonus opportunity, the TDS President and CEO will, with input from the executive officer, assign the executive officer 2 to 5 or so major initiatives to be carried out during the year, and decide how each will be weighted.  

2

With the approval of the TDS President and CEO, an executive officer’s objectives and weightings may be revised during the performance year if important new initiatives arise or circumstances with respect to an objective have materially changed.  Performance on each selected objective will be based on the TDS President and CEO’s assessment of the results the executive/the executive’s team achieved in meeting the assigned objectives.

		
	▪
	Overall Performance:  

Each officer’s overall performance for the year will be assessed by the TDS President and CEO based on his/her effectiveness/success with regard to:

		
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	Carrying out his/her ongoing responsibilities and significant initiatives during the performance year (other than his/her above discussed key objectives).

		
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	Recommending/making decisions; taking actions; and providing support, assistance and counsel to the business units.

		
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	Providing support, assistance and counsel to corporate senior leaders and management.

In making these assessments, the TDS President and CEO will take into consideration:

		
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	His/her evaluation of the officer’s performance in the above areas.

		
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	The annual written performance feedback he/she receives on the executive officer from his/her peers.

		
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	The every-other-year written performance input he receives from the executive officer’s direct reports and other key associates.

		
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	The executive officer’s report on his/her activities/accomplishments for the performance year.

		
	•
	Such other creditable input as he/she may receive during the year about an officer’s performance.

VP Officer Level of Performance and Percent Payout of Target:   
	
		
	INDIVIDUAL PERFORMANCE
	% PAYOUT OF
TARGET

	Far Exceeded Expectations:  Performance greatly exceeded that which was planned and expected.
	140% - 160%

	Significantly Exceeded Expectations: Performance significantly exceeded that which was planned and expected.
	115% - 135%

	Successfully Met Expectations:  Performance was close to that which was planned and expected.
	90% - 110%

	Partially Met Expectations: Performance was sufficient to merit a partial bonus.
	65% - 85%

	Did Not Meet Expectations:  Performance was not sufficient to merit a bonus.
	0%

3

		
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	DETERMINATION OF BONUS AWARDS:

Once the Company performance bonus percentage is known, the TDS President and CEO will recommend to the Compensation Committee for each participating executive officer:

		
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	His/her company performance bonus.  This will be the amount calculated in accordance with the terms of this program (unless the TDS President and CEO feels that there is a compelling rationale to recommend an adjustment to this amount, which he would provide to the Committee).

		
	•
	His/her recommended individual performance bonus, and his/her total recommended bonus.

The Compensation Committee will review these proposed bonus awards and either approve them as submitted or revise some or all of them, as they deem appropriate.  Once the Committee and TDS President and CEO finalize the officers’ bonus awards, they may be paid.  

Approved bonus awards shall be paid during the period commencing on the January 1st immediately following the performance year and ending on March 15th immediately following the performance year.  Notwithstanding the foregoing, in the event that payment by such March 15th is administratively impracticable and such impracticability was unforeseeable, payment will be made as soon as administratively practicable after such March 15th, but in no event later than December 31st following the performance year.  Payment will be made in the form of a lump sum.

New Executives: New or transferred executives named during the calendar year will be pro-rated based on the number of months employed by the Company.
Retirement/Death: Payout will occur for employees who meet the eligibility requirements and who retire or die before the actual payout date.  The calculation will be a function of their bonus target, pro-rated based on the months during the calendar year and their previous performance.  A separation is considered a retirement if the employee has a voluntary separation and meets the requirements to qualify for retiree pension and/or medical benefits.
Notwithstanding any provision of this bonus program to the contrary, a participating officer does not have a legally binding right to a bonus unless and until the bonus amount, if any, is paid and no bonus shall be paid unless the officer remains employed through the actual bonus payout date unless otherwise approved at the discretion of the Compensation Committee or President and CEO of TDS, as applicable.

		
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	REVISIONS TO THE OFFICER BONUS PROGRAM:

The TDS Officer Bonus Program may be revised or discontinued at any time and for any reason.  If and when either the Compensation Committee and/or management determines that the TDS Officer Bonus Program should be revised, the parties will discuss the proposed change(s) and the rationale for them, following which the Committee will determine what, if any, changes will be made.

		
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	BONUS CLAWBACK:

Any bonus paid pursuant to this program is subject to recovery by TDS or any other action pursuant to any clawback or recoupment policy which TDS may adopt from time to time, including without limitation any such policy which TDS may be required to adopt under the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by law.

4Exhibit 10.1

 

DEBT CONVERSION AGREEMENT

 

This Debt Conversion Agreement
(the "Agreement") is entered into effective as of as of February 18, 2020 by and between World Capital Holding
Limited ("Debt Holder") and Kemiao Garment Holding Group, a Nevada corporation (the "Company"),
with reference to the following facts:

 

WHEREAS, Debt Holder has advanced
certain funds to the Company from time to time as working capital, of which the Company and Debt Holder desire to convert $40,000
(the "Debt") into shares of Common Stock.

 

NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Debt Holder and the Company agree as follows:

 

1.    
Conversion to Common Stock. Effective as of February 18, 2020, $40,000 of the Debt shall be converted into shares
of Common Stock at a price per share of $.001 for an aggregate number of shares of 40,000,000. Upon execution of this Agreement,
the Company shall instruct its transfer agent to issue a total of 40,000,000 shares of Common Stock to the Debt Holder, and the
Debt Holder shall acknowledge the repayment of $40,000 owed to the Debt Holder.

 

2.    
Debt Holder Representations. The Company is issuing the Common Stock to Debt Holder in reliance upon the following
representations made by Debt Holder:

 

(a) 
Debt Holder acknowledges and agrees that the shares of Common Stock are characterized as "restricted securities"
under the Securities Act of 1933 (as amended and together with the rules and regulations promulgated thereunder, the "Securities
Act") and that, under the Securities Act and applicable regulations thereunder, such securities may not be resold, pledged
or otherwise transferred without registration under the Securities Act or an exemption therefrom. Debt Holder acknowledges and
agrees that (i) the shares of Common Stock are being offered in a transaction not involving any public offering in the United
States within the meaning of the Securities Act, and the shares of Common Stock have not yet been registered under the Securities
Act, and (ii) such shares of Common Stock may be offered, resold, pledged or otherwise transferred only in a transaction registered
under the Securities Act, or meeting the requirements of Rule 144, or in accordance with another exemption from the registration
requirements of the Securities Act (and based upon an opinion of counsel if the Company so requests) and in accordance with any
applicable securities laws of any State of the United States or any other applicable jurisdiction.

 

(b) 
Debt Holder acknowledges and agrees that (i) the registrar or transfer agent for the shares of Common Stock will not be
required to accept for registration of transfer any shares except upon presentation of evidence satisfactory to the Company that
the restrictions on transfer under the Securities Act have been complied with and (ii) any shares of Common Stock in the form of
definitive physical certificates will bear a restrictive legend.

 

(c)  
Debt Holder acknowledges and agrees that: (a) the shares of Common Stock have not been registered under the Securities
Act, or under any state securities laws, and are being offered and sold in reliance upon federal and state exemptions for transactions
not involving any public offering; (b) Debt Holder is acquiring the shares of Common Stock solely for its own account for investment
purposes, and not with a view to the distribution thereof in a transaction that would violate the Securities Act or the securities
laws of any State of the United States or any other applicable jurisdiction; (c) Debt Holder is a sophisticated purchaser with
such knowledge and experience in business and financial matters that it is capable of evaluating the merits and risks of purchasing
the shares of Common Stock; (d) Debt Holder has had the opportunity to obtain from the Company such information as desired in
order to evaluate the merits and the risks inherent in holding the shares of Common Stock; (e) Debt Holder is able to bear the
economic risk and lack of liquidity inherent in holding the shares of Common Stock; (f) Debt Holder is an "accredited Debt
Holder" within the meaning of Rule 501(a) under the Securities Act; and (g) Debt Holder either has a pre-existing personal
or business relationship with the Company or its officers, directors or controlling persons, or by reason of Debt Holder's business
or financial experience, or the business or financial experience of their professional advisors who are unaffiliated with and
who are not compensated by the Company, directly or indirectly, have the capacity to protect their own interests in connection
with the purchase of the Common Stock.

 

 

 

 

    	 	1	 

     

    

 

(d) 
Debt Holder's investment in the Company pursuant to this Common Stock is consistent, in both nature and amount, with Debt
Holder's overall investment program and financial condition.

 

(e)  
Debt Holder is not a resident of United States or Canada.

 

3. Miscellaneous.

 

(a) 
This Agreement shall be construed and enforced in accordance with the laws of the State of Nevada.

 

(b) 
This Agreement constitutes the entire agreement between the parties and supersedes all prior oral or written negotiations
and agreements between the parties with respect to the subject matter hereof. No modification, variation or amendment of this Agreement
(including any exhibit hereto) shall be effective unless made in writing and signed by both parties.

 

(c)  
Each party to this Agreement hereby represents and warrants to the other party that it has had an opportunity to seek the
advice of its own independent legal counsel with respect to the provisions of this Agreement and that its decision to execute this
Agreement is not based on any reliance upon the advice of any other party or its legal counsel. Each party represents and warrants
to the other party that in executing this Agreement such party has completely read this Agreement and that such party understands
the terms of this Agreement and its significance. This Agreement shall be construed neutrally, without regard to the party responsible
for its preparation.

 

(d) 
Each party to this Agreement hereby represents and warrants to the other party that (i) the execution, performance and delivery
of this Agreement has been authorized by all necessary action by such party; (ii) the representative executing this Agreement on
behalf of such party has been granted all necessary power and authority to act on behalf of such party with respect to the execution,
performance and delivery of this Agreement; and (iii) the representative executing this Agreement on behalf of such party is of
legal age and capacity to enter into agreements which are fully binding and enforceable against such Party.

 

(e)  
This Agreement may be executed in any number of counterparts and may be delivered by facsimile transmission, all of which
taken together shall constitute a single instrument.

 

This Agreement is entered into and effective
as of the date first written above.

 

	COMPANY:	DEBT HOLDER:
	 	 	 	 
	Kemiao Garment Holding Group	World Capital Holding Limited
	 	 	 	 
	 	 	 	 
	By: 	/s/ YanPing Sheng                         	By:	/s/ YanPing Sheng                         
	 	YanPing Sheng, CEO	 	YanPing Sheng, CEO

 

 

 

 

 

    	 	2

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