Under the Scout Program, an annual bonus pool will be established at the beginning of the calendar year following the performance year if the operating margin of Scout Investments meets or exceeds an established threshold for the performance year, as set forth in the Scout Program attached hereto as Exhibit 10.1. For 2012 and 2013, the operating margin of Scout Investments must be positive for awards to be issued. On and after 2014, the operating margin of Scout Investments must be thirty percent (30%) or greater for awards to be issued. If the threshold operating margin is achieved, the bonus pool will be funded in an amount equal to a percentage of the difference between the pretax net income for the performance year and a baseline pretax net income amount. The percentage will be fifteen percent (15%) for the performance years where the threshold operating margin is achieved. Participants in the Scout Program will receive grants from the bonus pool in amounts to be determined by the Committee. The Committee determined that Mr. Iseman will receive no more than twenty percent (20%) of the bonus pool for the performance year 2012.