Document:

Exhibit 10.20

 

Exhibit 10.20

PERFORMANCE UNIT AWARD AGREEMENT

THIS AGREEMENT CONSTITUTES PART OF THE PROSPECTUS COVERING SECURITIES REGISTERED UNDER THE
SECURITIES ACT OF 1933.

     THIS
PERFORMANCE UNIT AWARD AGREEMENT (hereinafter, the “Agreement”) made as of the _______ day of
_____, _______, between Goodrich Corporation, a New York corporation (the “Company”), and
_________ (the “Employee”). For purposes of this Agreement, all capitalized terms not
defined herein shall have the meanings ascribed thereto under the terms of the Goodrich Corporation
2001 Equity Compensation Plan (as amended, the “Plan”), unless otherwise noted.

     WHEREAS, the Employee is employed by the Company or its subsidiaries; and

     WHEREAS, the Company wishes to grant to the Employee an award of performance units under the
Plan, subject to the conditions and restrictions set forth in the Plan and this Agreement.

     NOW THEREFORE, in consideration of the mutual covenants contained in this agreement, the
Company and the Employee agree as follows:

	1.	 	Grant of Units. The Company hereby
grants to the Employee _________ performance units
(the “Units”). If the Company declares a dividend payment on the Company’s common stock, par
value $5.00 per share (“Common Stock”) during the Term, as defined below, then the number of
Units covered by this Agreement shall be increased as of the dividend payment date by the
number of shares, if any, of the Common Stock that could be purchased on such date by such
dividend payment. For purposes of determining the number of shares of the Common Stock that
could be purchased by such dividend payment as of the dividend payment date, the amount of
            shares of the Common Stock that could be purchased shall be determined by reference to the
fair market value of the Common Stock, as calculated pursuant to Section 14 of the Plan, as of
such date.

	2.	 	Term of Units. The term of the Units (the “Term”) will begin on January 2, 2007 and
will end on December 31, 2009.

	3.	 	Unit Value Measurement. The aggregate value of the Participant’s Units (the “Benefit
Amount”) shall be determined as of the last day of the Term, and shall be equal to the product
of the number of Units then covered under this Agreement and the fair market value of one
share of the Common Stock, as calculated pursuant to Section 14 of the Plan, as of the last
day of the Term.

	4.	 	Earned Percentage. Except as otherwise provided in Section 6 below, the Employee
shall be entitled to a benefit payment under this Agreement equal to the specified percentage
(the “Earned Percentage”) of the Benefit Amount. The Earned Percentage of an amount equal to
one-half of the Units covered by this Agreement (the “ROIC Units”) shall be determined in
accordance with the provisions of subsection (a) of this Section 4, and the Earned Percentage
of an amount equal to the other one-half of the Units covered

 

 

	 	 	by this Agreement (the “RTSR Units”) shall be determined in accordance with the provisions
of subsection (b) of this Section 4.

     (a) Return on Invested Capital. The Earned Percentage of the ROIC Units shall
be determined by reference to the Return on Invested Capital (as defined below) and will be
calculated in accordance with the following schedule:

	 	 	 	 	 
	2007-2009 Goals	 	Return On Invested Capital	 	Earned Percentage
	Threshold
	 	TBD
	 	   0 %
	Target
	 	TBD
	 	100 %
	Maximum
	 	TBD
	 	200 %

With respect to levels of the Company’s Return on Invested Capital that fall within the
threshold, target and maximum levels specified above, the Earned Percentage of the ROIC
Units will be interpolated on a straight line basis. For purposes of this Agreement, the
term “Return on Invested Capital” means “Earnings Before Interest and Taxes (“EBIT”) after
tax” excluding Special Items (as defined below) divided by average invested capital
(determined at the total Company level). EBIT shall be equal to the EBIT amount used for
the Goodrich Corporation Management Incentive Program and the Goodrich Corporation Senior
Executive Management Incentive Plan calculations. The tax rate applied to EBIT shall be the
Company’s effective tax rate, except when management determines that certain discrete items
should be excluded from the tax rate. In those instances, the effective tax rate shall be
the Company’s effective tax rate excluding the impact of the discrete items. Invested
capital is defined as the sum of: accounts receivable (excluding accounts receivable
securitization); inventory (net); deferred tax assets (current and noncurrent); goodwill;
other intangible assets (net of accumulated amortization); property, plant & equipment (net
of accumulated depreciation); other current assets (including prepaids); and other
noncurrent assets minus the sum of: accounts payable; accrued expenses; other
current liabilities; taxes payable; deferred tax liabilities (current and noncurrent); other
noncurrent liabilities; and the cumulative translation account. Special Items include all
items deemed by management to have occurred during the Term that are not representative of
the true underlying results of the Term. Examples of Special Items include, but are not
limited to, significant tax litigation/settlements; debt issuance/exchange costs; and gains
and losses from the sale of a business. In all cases, the exclusion of Special Items will
be subject to the approval of the Compensation Committee.

     (b) Relative Total Shareholder Return. The Earned Percentage of the RTSR Units
shall be determined by reference to the Relative Total Shareholder Return (as defined below)
and will be calculated in accordance with the following schedule:

	 	 	 
	Relative Total Shareholder Return Percentile	 	Earned Percentage
	25th or Less
	 	   0 %
	50th
	 	100 %
	95th or Higher
	 	200 %

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With respect to levels of Relative Total Shareholder Return that fall within the percentiles
specified above, the Earned Percentage of the RTSR Units will be interpolated on a straight
line basis. For purposes of this Agreement, the term “Relative Total Shareholder Return”
means the percentage calculated using the Total Shareholder Return (“TSR”) for Common Stock
for each year of the Term (using the dividend reinvestment approach to calculating
shareholder return) divided by the Total Shareholder Return for the Aerospace Peer Group (as
defined below) (using the dividend reinvestment approach to calculating shareholder return).
TSR is calculated for each year of the Term and then used to calculate TSR for the Term as
follows: (1+TSR1)(1+TSR2)(1+TSR3) 1/3. The TSR
for Goodrich is then divided by the TSR for the Aerospace Peer Group, the product of which
will be the Relative Total Stock Value for the Term. The overall performance of the
Aerospace Peer Group is then analyzed to identify the 25th, 50th and
75th percentile performance. The Earned Percentage of RTSR Units will be
determined based on the Company’s Relative Total Stock Value and its placement between the
three identified performance points.

     (c) Aerospace Peer Group. The Aerospace Peer Group is a group of aerospace
companies selected, from time to time, by the Company’s Compensation Committee. The
Aerospace Peer Group must be set by the Compensation Committee within 90 days of the
beginning of a Term. If during the Term there is any change in the corporate capitalization
of any aerospace company in the Aerospace Peer Group, such as a stock split, a corporate
transaction (any merger, consolidation, separation including a spin-off or other
distribution of stock or property of such aerospace company, or reorganization (whether or
not such reorganization comes within the definition of such term in Section 368 of the
Internal Revenue Code)) or any partial or complete liquidation of any such aerospace
company, the Compensation Committee, to the extent it deems it necessary and/or appropriate,
in its sole discretion, shall take such change into account in determining the TSR of such
aerospace company in the Aerospace Peer Group for purposes of subsection (b) of Section 4
(including, without limitation, by making such determination as if the change had not
occurred or by eliminating such aerospace company from the Aerospace Peer Group for the
Term).

     (d) Responsibility for Calculations. All calculations of (i) the Company’s
Return on Invested Capital and Relative Total Shareholder Return and (ii) the Earned
Percentages of the ROIC Units and the RTSR Units shall be determined by the Committee in the
exercise of its sole discretion, and any such calculations shall be final.

	5.	 	Benefit Payment. The benefit payment due to the Employee under this Agreement
shall be paid to the Employee (or, if the Employee is deceased, the Employee’s beneficiary, as
defined in Section 7) in a lump sum cash payment, subject to the provisions of Section 8
below. Such payment shall be paid by the Company as soon as practicable after the last date
of the Term.

6. Termination of Employment

     (a) Retirement, Death or Disability. If the Employee’s employment with the
Company terminates due to retirement, death or permanent and total disability, then the
amount of benefit otherwise payable to the Employee (or, if the Employee is deceased, the
Employee’s beneficiary, as defined in Section 7) hereunder shall be reduced by multiplying
such amount by a fraction, the numerator of which shall be the number of full months of
employment that the Employee has completed with the

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Company during the Term and the denominator shall be 36. For the purpose of this
Section 6(a), the Employee shall be treated as having retired if the Employee terminates
employment with the Company at any time after the Employee is eligible for early retirement
as provided under the terms of the Goodrich Corporation Employees’ Pension Plan (or as
provided in a subsidiary company’s salaried pension plan in the event the Employee’s pension
benefits are received solely from the subsidiary’s plan) in effect at the time of such
termination.

     (b) Other Termination of Employment. If the Employee’s employment is
terminated prior to the last day of the Term for any reasons other than retirement, death or
permanent and total disability, then the Employee will not be entitled to the payment of any
benefit under this Agreement.

     (c) Cause. Notwithstanding any provisions of this Agreement to the contrary,
if the Employee’s employment with the Company or any of its subsidiaries is terminated for
Cause, as defined herein, the Committee may, in its sole discretion, immediately cancel the
Units granted under this Agreement. For the purpose of this Agreement, “Cause” shall mean a
termination of employment by the Company due to (i) the violation by the Employee of any
rule, regulation, or policy of the Company, including the Company’s Business Code of
Conduct; (ii) the failure by the Employee to meet any requirement reasonably imposed upon
such employee by the Company as a condition of continued employment; (iii) the violation by
the Employee of any federal, state or local law or regulation; (iv) the commission by the
Employee of an act of fraud, theft, misappropriation of funds, dishonesty, bad faith or
disloyalty; (v) the failure by the Employee to perform consistently the duties of the
position held by such employee in a manner which satisfies the expectations of the Company
after such Employee has been provided written notice of performance deficiencies and a
reasonable opportunity to correct those deficiencies; or (vi) the dereliction or neglect by
the Employee in the performance of such employee’s job duties.

	7.	 	Assignability/Beneficiary. The rights of the Employee contingent or otherwise in the
Units cannot and shall not be sold, assigned, pledged or otherwise transferred or encumbered
other than by will or by the laws of descent and distribution. The Employee may designate a
beneficiary or beneficiaries to receive any payments that are due under Section 5 following
the Employee’s death. To be effective, such designation must be made in accordance with such
rules and on such form as prescribed by the Company’s corporate compensation group for such
purpose which completed form must be received by the Company’s corporate compensation group or
its designee before the Employee’s death. If the Employee fails to designate a beneficiary,
or if no designated beneficiary survives the Employee’s death, the Employee’s estate shall be
deemed the Employee’s beneficiary.

	8.	 	Tax Withholding. At the time any payment to the Employee is made under this
Agreement, the aggregate amount of such payment shall be reduced by the amount of any federal,
state and local tax withholding requirements imposed on such payment.

	9.	 	Changes in Capital Structure. The number of Units covered under this Agreement will
be adjusted appropriately in the event of any stock split, stock dividend, combination of shares, merger, consolidation, reorganization, or other change in the nature of the shares

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	 	 	of Common Stock of the Company in the same manner in which other outstanding shares of
Common Stock not subject to the Plan are adjusted; provided, that the number of Units
subject to this Agreement shall always be a whole number.

	10.	 	Continued Employment. Nothing contained herein shall be construed as conferring upon
the Employee the right to continue in the employ of the Company or any of its subsidiaries as
an executive or in any other capacity.

	11.	 	Parties to Agreement. This Agreement and the terms and conditions herein set forth
are subject in all respects to the terms and conditions of the Plan, which are controlling.
All decisions or interpretations of the Board and of the Committee referred to herein shall be
binding and conclusive upon the Employee or upon the Employee’s executors or administrators or
beneficiaries with respect to any question arising hereunder or under the Plan. This
Agreement will constitute an agreement between the Company and the Employee as of the date
first above written, which shall bind and inure to the benefit of their respective executors,
administrators, beneficiaries, successors and assigns.

	12.	 	Modification. No change, termination, waiver or modification of this Agreement will
be valid unless in writing and signed by all of the parties to this Agreement.

	13.	 	Consent to Jurisdiction. The Employee hereby consents to the jurisdiction of any
state or federal court located in the county in which the principal executive office of the
Company is then located for purposes of the enforcement of this Agreement and waives personal
service of any and all process upon the Employee. The Employee waives any objection to venue
of any action instituted under this Agreement.

	14.	 	Notices. All notices, designations, consents, offers or any other communications
provided for in this Agreement must be given in writing, personally delivered, or by facsimile
transmission with an appropriate written confirmation of receipt, by nationally recognized
overnight courier or by U.S. mail. Notice to the Company is to be addressed to its then
principal office. Notice to the Employee or any transferee is to be addressed to his/her/its
respective address as it appears in the records of the Company, or to such other address as
may be designated by the receiving party by notice in writing to the Secretary of the Company.

	15.	 	Further Assurances. At any time, and from time to time after executing this
Agreement, the Employee will execute such additional instruments and take such actions as may
be reasonably requested by the Company to confirm or perfect or otherwise to carry out the
intent and purpose of this Agreement.

	16.	 	Provisions Severable. If any provision of this Agreement is invalid or
unenforceable, it shall not affect the other provisions, and this Agreement shall remain in
effect as though the invalid or unenforceable provisions were omitted. Upon a determination
that any term or other provision is invalid or unenforceable, the Company shall in good faith
modify this Agreement so as to effect the original intent of the parties as closely as
possible.

	17.	 	Captions. Captions herein are for convenience of reference only and shall not be
considered in construing this Agreement.

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	18.	 	Entire Agreement. This Agreement represents the parties’ entire understanding and
agreement with respect to the issuance of the Units, and each of the parties acknowledges that
it has not made any, and makes no promises, representations or undertakings, other than those
expressly set forth or referred to therein.

	19.	 	Governing Law. This Agreement is subject to the condition that this award will
conform with any applicable provisions of any state or federal law or regulation in force
either at the time of grant. The Committee and the Board reserve the right pursuant to the
condition mentioned in this paragraph to terminate all or a portion of this Agreement if in
the opinion of the Committee and Board, this Agreement does not conform with any such
applicable state or federal law or regulation and such nonconformance shall cause material
harm to the Company.

This Agreement shall be construed in accordance with and governed by the laws of the State
of New York.

	20.	 	409A Compliance. Notwithstanding any provisions of the Plan or this Agreement to the
contrary and, to the extent applicable, the Plan and this Agreement shall be interpreted,
construed and administered (including with respect to any amendment, modification or
termination of the Plan or this Agreement) in such a manner so as to comply with the
provisions of Section 409A of the Internal Revenue Code, as amended, and any related Internal
Revenue Service guidance promulgated thereunder.

     IN WITNESS WHEREOF, the parties agree to the terms and conditions stated herein by signing and
returning to the Company the attached copy hereof.

	 	 	 	 	 
	 	GOODRICH CORPORATION

 	 
	 	By:  	 	 
	 	 	Vice President 	 
	 	 	 	 
	 

Accepted by:

	 	 	 
	 
	 	 
	 

(Employee’s name)

	 	 

6Exhibit 10.21

 

Exhibit 10.21

RESTRICTED STOCK AWARD AGREEMENT

THIS AGREEMENT CONSTITUTES PART OF THE PROSPECTUS COVERING SECURITIES REGISTERED
UNDER THE SECURITIES ACT OF 1933.

     THIS RESTRICTED STOCK AWARD AGREEMENT (hereafter, the “Agreement”) made as of the            day of
               ,            between Goodrich Corporation, a New York corporation (the “Company”), and
                     (the “Employee”). For purposes of this Agreement, all capitalized terms not defined
herein shall have the meanings ascribed thereto under the terms of the Goodrich Corporation 2001
Equity Compensation Plan (as amended, the “Plan”), unless otherwise noted

     WHEREAS, the Employee is employed by the Company or its subsidiaries; and

     WHEREAS, the Company wishes to grant an award of                 shares of the Company’s common stock,
par value $5.00 per share (“Common Stock”), under the terms of the Plan, subject to the condition
that the Employee stay in the employ of the Company or its subsidiaries for a period of time.

     NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto
agree as follows:

	1.	 	Grant of Restricted Stock. The Company will cause its stock transfer agent to issue
in book entry form an aggregate of                 shares (the “Shares”) of the Company’s Common Stock
in the name of the Employee. No stock certificates will be issued at this time and the Shares
shall be subject to forfeiture and other restrictions to the extent hereinafter provided. The
Employee shall have the right to receive dividends and to vote and exercise proxies with
respect to the Shares unless all or a portion of the Shares are forfeited as hereinafter
provided.
	 
	2.	 	Vesting. Upon the Employee’s continued employment with the Company or one of the
Company’s subsidiaries on the date that is three years from the date of this Agreement (the
“vest date”), all forfeiture and other restrictions will be removed and the Company will
transfer physical possession of a stock certificate or certificates for the Shares to the
Employee or provide for book entry transfer of such shares to the Employee, subject to the tax
withholding provisions below.
	 
	3.	 	Assignability/Beneficiary. The rights of the Employee, contingent or otherwise, in
the Shares, the dividends, voting or proxy rights cannot and shall not be sold, assigned,
pledged or otherwise transferred or encumbered until the forfeiture and other restrictions
imposed by this Agreement have been removed. The Employee may designate a beneficiary or
beneficiaries to receive any benefits that are due under Section 5 following the Employee’s
death. To be effective, such designation must be made in accordance with such rules and on
such form as prescribed by the Company’s corporate compensation group for such purpose which completed form must be received by the Company’s corporate compensation group or

 

 

its designee before the Employee’s death. If the Employee fails to designate a beneficiary, or
if no designated beneficiary survives the Employee’s death, the Employee’s estate shall be
deemed the Employee’s beneficiary.

	4.	 	Termination of Employment. Except as specifically provided below, if the Employee’s
employment is terminated, for any reason other than death, retirement or permanent and total
disability prior to the vest date, all of the Shares will be forfeited. In the event of such
forfeiture, the Shares forfeited shall revert to the treasury of the Company and all rights to
receive dividends, rights to vote and exercise proxies or any other ancillary rights shall
cease and terminate immediately upon such event.
	 
	5.	 	Retirement, Death or Disability. In the event of the Employee’s (a) death or
permanent and total disability, or (b) termination of employment with the Company or a
subsidiary of the Company at a time when the Employee is eligible for Early Retirement or
Normal Retirement, as defined in the Goodrich Corporation Employees’ Pension Plan (or as
defined in a subsidiary company’s salaried pension plan in the event the Employee’s pension
benefits are received solely from the subsidiary’s plan) in effect at the time of the
Employee’s termination of employment, all forfeiture and other restrictions will be removed
and the Company will transfer physical possession of a stock certificate or certificates for
the Shares to the Employee or his/her beneficiary (as defined in Section 3), subject to the
tax withholding provisions below. Notwithstanding any provisions of this Agreement to the
contrary, if the Employee’s employment with the Company or any of its subsidiaries is
terminated for Cause, as defined herein, prior to the vest date, the Committee may, in its
sole discretion, direct that the Shares granted under this Agreement be immediately forfeited
by the Employee. In the event of such forfeiture, the Shares forfeited shall revert to the
treasury of the Company and all rights to receive dividends, rights to vote and exercise
proxies or any other ancillary rights shall cease and terminate immediately upon such event.
For the purpose of this Agreement, “Cause” shall mean a termination of employment by the
Company due to (i) the violation by the Employee of any rule, regulation, or policy of the
Company, including the Company’s Business Code of Conduct; (ii) the failure by the Employee to
meet any requirement reasonably imposed upon such employee by the Company as a condition of
continued employment; (iii) the violation by the Employee of any federal, state or local law
or regulation; (iv) the commission by the Employee of an act of fraud, theft, misappropriation
of funds, dishonesty, bad faith or disloyalty; (v) the failure by the Employee to perform
consistently the duties of the position held by such employee in a manner which satisfies the
expectations of the Company after such Employee has been provided written notice of
performance deficiencies and a reasonable opportunity to correct those deficiencies; or (vi)
the dereliction or neglect by the Employee in the performance of such employee’s job duties.

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	6.	 	Change in Control. Anything to the contrary notwithstanding, in the event of a
Change in Control of the Company, as that term is defined in the Plan, subsequent to the date
of this Agreement, all forfeiture and other restrictions on the Shares shall be immediately
removed, and a certificate for the Shares shall be delivered to the Employee, subject to the
tax withholding provisions below.
	 
	7.	 	Changes in Capital Structure. The number of Shares covered by this Agreement will be
adjusted appropriately in the event of any stock split, stock
dividend, combination of shares, merger, consolidation, reorganization or other change in the nature of the shares of Common
Stock in the same manner in which other outstanding shares of Common Stock not subject to
the Plan are adjusted.
	 
	8.	 	Tax Withholding. At the time the Shares are transferred to the Employee, the number
of shares delivered will be net of the amount of shares sufficient to satisfy any federal,
state and local tax withholding requirements with which the Company must comply.
	 
	9.	 	Continued Employment. Nothing contained herein shall be construed as conferring upon
the Employee the right to continue in the employ of the Company or any of its subsidiaries as
an executive or in any other capacity. 
	 
	10.	 	Parties to Agreement. This Agreement and the terms and conditions herein set forth
are subject in all respects to the terms and conditions of the Plan, which are controlling.
All decisions or interpretations of the Board and of the Committee shall be binding and
conclusive upon Employee or upon Employee’s executors or administrators or beneficiary upon
any question arising hereunder or under the Plan. This Agreement will constitute an agreement
between the Company and the Employee as of the date first above written, which shall bind and
inure to the benefit of their respective executors, administrators, beneficiaries, successors
and assigns.
	 
	11.	 	Modification. No change, termination, waiver or modification of this Agreement will
be valid unless in writing and signed by all of the parties to this Agreement.
	 
	12.	 	Consent to Jurisdiction. The Employee hereby consents to the jurisdiction of any
state or federal court located in the county in which the principal executive office of the
Company is then located for purposes of the enforcement of this Agreement and waives personal
service of any and all process upon him. The Employee waives any objection to venue of any
action instituted under this Agreement.
	 
	13.	 	Notices. All notices, designations, consents, offers or any other communications
provided for in this Agreement must be given in writing, personally delivered, or by facsimile
transmission with an appropriate written confirmation of receipt, by nationally recognized
overnight courier or by U.S. mail. Notice to the Company is to be addressed to its then
principal office. Notice to the Employee or any transferee is to be addressed to his/her/its

3

 

respective address as it appears in the records of the Company, or to such other address as
may be designated by the receiving party by notice in writing to the Secretary of the
Company.

	14.	 	Further Assurances. At any time, and from time to time after executing this
Agreement, the Employee will execute such additional instruments and take such actions as may
be reasonably requested by the Company to confirm or perfect or otherwise to carry out the
intent and purpose of this Agreement.
	 
	15.	 	Provisions Severable. If any provision of this Agreement is invalid or
unenforceable, it shall not affect the other provisions, and this Agreement shall remain in
effect as though the invalid or unenforceable provisions were omitted. Upon a determination
that any term or other provision is invalid or unenforceable, the Company shall in good faith
modify this Agreement so as to effect the original intent of the parties as closely as
possible.
	 
	16.	 	Entire Agreement. This Agreement represents the parties’ entire understanding and
agreement with respect to the issuance of the option, and each of the parties acknowledges
that it has not made any, and makes no promises, representations or undertakings, other than
those expressly set forth or referred to therein.
	 
	17.	 	Governing Law. This Agreement is subject to the condition that this award will
conform with any applicable provisions of any state or federal law or regulation in force
either at the time of grant. The Committee and the Board, as these terms are defined in the
Plan, reserve the right pursuant to the condition mentioned in this paragraph to terminate all
or a portion of this Agreement if, in the opinion of the Committee and Board, this Agreement
does not conform with any such applicable state or federal law or regulation and such
nonconformance shall cause material harm to the Company.

This Agreement shall be construed in accordance with and governed by the laws of the State
of New York.

     IN WITNESS WHEREOF, the parties agree to the terms and conditions stated herein by signing and
returning to the Company the attached copy hereof.

	 	 	 	 	 
	 	GOODRICH CORPORATION

 	 
	 	By:  	 	 
	 	 	Vice President 	 
	 	 	 	 
	 

	 	 	 
	Accepted by:

	 	 
	 
	 	 
	 
	 	 
	 

(Employee’s name)
	 	 

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