Document:

Personal Services Agreement

  
 CERTAIN MATERIAL (INDICATED BY AN
ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 

Exhibit 10.47 
 Personal Services Agreement 
 By and Between Stephan Targan, M.D. and

 Prometheus Laboratories Inc. 
 This Agreement (the “Agreement”) is effective as of the
15th day of July, 2010 (the “Effective Date”) by
and between Stephan Targan, M.D. with offices at 240 22nd
Street, Santa Monica, CA 904021 (hereinafter referred to
as the “Consultant”), and Prometheus Laboratories Inc., with offices at 9410 Carroll Park Drive, San Diego, CA 92121-5201 (hereinafter referred to as “Company” or “Prometheus”). 

This Agreement will set forth the general terms of our agreement whereby Consultant will provide to the Company the consulting services
as described on Exhibit A hereto (the “Consulting Services”). 
 1. Engagement. Company hereby engages
Consultant to provide personal consulting services to the Company as described in Exhibit A on a part-time basis. Nothing in this Agreement shall limit Consultant’s right to provide services to any other businesses or institutions except as
provided in paragraph 5 below. 
 2. Compensation. In consideration for the Consulting Services, the Company will
pay the Consultant the fees as specified in Exhibit A. Such fees shall be paid within thirty (30) days following the performance of services upon satisfactory evidence of the provision of such Consulting Services. Consultant shall provide a
detailed statement of Consulting Services provided in the form set out in Exhibit B attached hereto no later than the tenth (10th) day of each month for Consulting Services provided by Consultant during the immediately preceding month. For a
period of five (5) years after expiration or termination of this Agreement, Company shall have the right to conduct an audit of Consultant, reasonable in duration and scope, to the extent reasonably useful to Company to audit the Consulting
Services, fees paid and expenses reimbursed hereunder. 
 3. Expenses. The Company will reimburse Consultant for
all reasonable travel and other expenses directly related to Consultant’s performance under this Agreement provided that (a) such expenses in excess of $1,500 dollars have been approved in writing, in advance of being incurred, by an
officer of the Company and (b) such expenses are of a nature (and adequate documentary evidence has been provided) qualifying them as proper deductions on federal and state income tax returns of the Company. 

 

	1	 The contracting
party to this agreement, the Tax Payer ID number and the name of the payee on any payment for services rendered under this agreement must be the same person or entity, e.g. If payment for Dr. Smith’s services will be made to
Dr. Smith, the individual, this agreement will be between Prometheus and Dr. Smith and the Tax Payer ID number will be Dr. Smith’s SSN. If payment for Dr. Smith’s services will be made to the professional corporation of
Dr. Smith or Dr. Smith’s physician’s practice group, this contract must be with that entity. Please note that physicians may not direct payments for services to be made by Prometheus for Services provided hereunder to any
charitable or other entity but must receive the payments as income themselves and then may make any such donations themselves. 

  
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 4. Term and
Termination. This Agreement shall commence on the Effective Date and shall continue in full force and effect until the later of the first anniversary of the Effective Date or July 31, 2011 (the “Term”) unless earlier
terminated. Either party may terminate this Agreement at any time for any reason by providing thirty (30) days advance written notice to the other party. If this Agreement is terminated prior to the expiration of the Term, the parties shall not
re-negotiate the terms of this Agreement or enter into a new agreement for the Services or any other consulting work until the expiration of the Term. In the event of a material breach of the Agreement by either party, the other party may terminate
this Agreement upon providing the breaching party with written notice of the breach and ten (10) days prior written notice of termination, provided that if the breaching party cures said breach within ten (10) days, this Agreement shall
continue in full force and effect. 
 5. Absence of Conflicts. Consultant represents and warrants that Consultant
is not under any existing obligation that is inconsistent with this Agreement or that would restrict or conflict with the performance of Consultant’s obligations under this Agreement. Consultant agrees not to enter into any agreement or
arrangement during the term of this Agreement that would impose on Consultant any obligation inconsistent with this Agreement or that would restrict or conflict with the performance of Consultant’s obligations under this Agreement. If
Consultant is required by any applicable guidelines or policies to make any disclosure or take any action that conflicts with any obligations of Consultant under this Agreement or is contrary to the terms of this Agreement, Consultant shall promptly
notify the Company of such obligation, specifying the nature of such disclosure or action and identifying the applicable guideline or policy under which disclosure or action is required, prior to making such disclosure or taking such action.

 6. Intellectual Property. All inventions or discoveries, whether or not patentable, which may arise from the
Consulting Services shall be owned exclusively by Company. Consultant agrees to cooperate in the preparation and execution of documents necessary to affect any patent or other filings deemed necessary or appropriate by the Company relating to such
inventions and discoveries. 
 7. Notification of Events. In addition to the obligations under paragraph 22
hereunder, Consultant shall notify Company in writing within twenty-four (24) hours after the occurrence of any one or more of the following events: 
 (a) Consultant becomes the subject of, or otherwise materially involved in, any government investigation of Consultant’s business practices or the provision of professional services, including being
served with a search warrant in connection with such activities; 
 (b) Consultant becomes the subject of any suit, action or
other legal proceeding arising out of Consultant’s professional services; 
 (c) Consultant becomes the subject of any
disciplinary proceeding or action before any state’s medical board or similar agency responsible for professional licensing, standards or behavior; or 

  
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 (d) any act of nature
or any other event occurs which has a material adverse effect on Consultant’s ability to provide the Consulting Services. 

8. Independent Contractor Status. The parties agree that Consultant is serving as an independent contractor and is not an
employee of the Company. As such, Consultant acknowledges that Consultant is not entitled to any medical benefits, paid time off, tax withholding or other benefits routinely provided to employees. 

9. Taxes. By reason of Consultant’s status as an independent contractor and the representations made herein,
Consultant hereby instructs the Company not to withhold any taxes from the fees paid to Consultant. Consultant acknowledges and agrees that Consultant is solely responsible for the payment of any and all domestic or foreign taxes and/or assessments
imposed on account of the payment of fees or other compensation by the Company to Consultant. Consultant expressly agrees to treat any fees and other compensation earned under this Agreement as self-employment income for federal and state income
taxes, unemployment insurance taxes, disability insurance taxes or any other taxes when such amounts become due and payable. 

10. Confidentiality. Consultant, during the term of this Agreement, will have access to and become acquainted with various
business, technical, and financial information and compilations of information and records of the Company, all of which shall be deemed Confidential Information (hereinafter “Confidential Information”) of the Company. Consultant shall hold
such Confidential Information in strict confidence and shall not disclose any of the aforementioned Confidential Information, directly or indirectly, or use it in any way, either during the term of this Agreement or at any time thereafter for a
period of ten (10) years. All files, documents, records, and similar items, relating to the foregoing, whether prepared by the Consultant or otherwise coming into the Consultant’s possession, shall remain the Confidential Information of
the Company, Consultant shall either return to the Company, or certify to the Company, the destruction of all Confidential Information of the Company at the termination of the Agreement. 

11. Compliance of Laws. Consultant shall comply in all material respects with all applicable laws, ordinances, codes and
regulations of federal, state and local governments, and accrediting professional organizations, applicable to the Consulting Services provided under this Agreement. 
 12. Indemnity. Consultant agrees to indemnify and defend Company from all claims, charges, damages, and judgments arising from the breach of Consultant’s obligations under this
Agreement or the services provided by Consultant hereunder. 
 13. Limitation on Authority. Consultant shall not
have any authority to obligate or bind the Company to any agreement, purchase or obligation of any kind without the express written approval of an officer of the Company. 
 14. Assignment of Rights and Duties. The Consultant may not assign his rights or duties under this Agreement without prior written consent of the Company, which

  
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consent may be withheld for any reason. Any attempted assignment, transfer, conveyance, or other disposition of the Consultant’s interest in this Agreement shall be void. 

15. Notice. All notices and other communications required or permitted under this Agreement shall be in writing and shall
be deemed given upon personal delivery, facsimile transmission (with confirmation of receipt), delivery by a reputable overnight courier service or five (5) days following deposit in the United States mail (if sent by certified or registered
mail, postage prepaid, return receipt requested), to the parties at the following addresses (unless the party has by written notice subsequently provided a new contact person or address): 

 

			
	For the CONSULTANT:	 	 Stephan R. Targan, M.D.

		 	 240
22nd Street

		 	 Santa Monica, CA 90402

		
	For COMPANY:	 	 Ron Rocca

		 	 General Manager, GI Products
 Prometheus Laboratories Inc.
 9410 Carroll Park Drive

San Diego, CA 92121-5201

		
		 	With a copy to:
		
		 	 Prometheus Laboratories Inc.
 Attention: Legal Department
 9410 Carroll Park Drive

San Diego, CA 92121-5201

 16. Legal Fee: Arbitration. The parties hereto expressly agree that in the event of any dispute, controversy or claim by any party regarding this Agreement, the prevailing party shall be
entitled to reimbursement by the other party to the proceeding of reasonable attorney’s fees and costs incurred by the prevailing party. Any dispute, controversy or claim arising hereunder or in any way related to this Agreement shall be
resolved by arbitration in the County of San Diego, State of California by JAMS-Endispute. The arbitration shall be conducted by a sole arbitrator appointed by JAMS-Endispute (the “Arbitrator”). The Arbitrator’s decision shall be
final and binding on all parties. The Arbitrator shall have no authority to award damages for emotional distress, punitive damages or equitable relief. The parties intend that this arbitration provision be irrevocable and be construed as broadly as
possible. The arbitration shall be governed by the provisions of the Arbitration Act, and judgment upon the award rendered by the Arbitrator may be entered by any court having jurisdiction thereof. 

17. Governing Law. This Agreement shall be governed by and construed under the laws of the State of California without
reference to principles of conflicts of laws. 

  
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 18. Entire
Agreement. This Agreement, including Exhibits A and B hereto, sets forth the entire agreement and understanding among the parties as to the subject matter hereof and supersedes all prior agreements or understandings with respect to such
subject matter, whether written or oral. This Agreement may not be amended or modified except in writing signed by Consultant and a duly authorized officer of the Company. In the event of any inconsistency between the provisions of this Agreement
and Exhibits A and B, the provisions of this Agreement shall govern. No waiver of any term, provision or condition of this Agreement, whether by conduct or otherwise in any one or more instances shall be deemed to be or construed as a further or
continuing waiver of any such term, provision or condition, or of any other term, provision or condition. The invalidity or unenforceability of any term or provision of the parties with respect to the subject matter of this Agreement shall not
affect the validity or enforceability of any other term or provision of this Agreement. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same
instrument. 
 19. Force Majeure. Neither party shall be responsible for failure to perform under this Agreement
if circumstances beyond their control, including, but not limited to: acts of God, government authority, disaster or other emergencies make it illegal or impossible to hold an event. 

20. Practice of Medicine. Consultant and Company acknowledge that Company is neither authorized nor qualified to engage in
any activity which may be construed or deemed to constitute the practice of medicine. To the extent that any act or service required of, or reserved to, Company in this Agreement is construed or deemed to constitute the practice of medicine, the
performance of such act or service by Company shall be deemed waived or unenforceable, unless this Agreement can be amended to comply with the law, in which case the parties shall make such amendment. 

21. Referrals. Consultant shall be entitled to refer patients to any health care provider deemed by Consultant best
qualified to deliver medical services to any particular patient. No term of this Agreement shall be construed as requiring or inducing Consultant to refer patients to Company or to prescribe or otherwise refer Company products to a patient.
Consultant’s rights under this Agreement shall not be dependent in any way on the referral of patients or business to Company by Consultant. 
 22. Disclosure Requirement. Prometheus requires any healthcare practitioner who is a member of a committee that selects formularies or develops clinical guidelines and also serves as a
speaker or commercial consultant for Prometheus to disclose to the committee the nature and existence of his/her relationship with Prometheus. This disclosure requirement extends for 2 years after the termination of any speaker or consultant
arrangement. 
 23. Representation Regarding Debarment and Felony Conviction. Consultant represents to Company
that Consultant has never been and is not currently debarred, excluded or banned from any federal healthcare program. Further, Consultant represents that Consultant has not been convicted of a felony involving fraud or deceit,

  
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Consultant agrees to immediately notify the Company should Consultant become debarred, excluded or banned from any federal healthcare program or should Consultant be convicted of a felony
involving fraud or deceit. 
 24. Patient Privacy and Health Information. Consultant shall comply, and shall
require any of the persons or entities performing any services under this Agreement on the Consultant’s behalf to comply, with all applicable federal and state laws and regulations governing patient privacy and confidentiality of health
information, including without limitation the federal Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) and its implementing regulations. 
 25. Company Code of Business Conduct and Ethics. By signing this Agreement, Consultant agrees to review and abide by Company’s Code of Business Conduct and Ethics (the “Code”)
as posted on its website at www.prometheuslabs.com. Consultant may request a hard copy of the Code if access to the internet is not available. 
 The foregoing is acknowledged, understood and agreed to as evidenced by execution by the parties in the spaces below. 
  

			
	CONSULTANT:
		
	By:	 	
 

		 	Stephan Targan, M.D.

  

			
	Tax Payer ID Number:	 	  

  

			
	PROMETHEUS LABORATORIES INC.:
		
	By:	 	
 

		 	Ron Rocca
		 	General Manager, GI Products

  

							
		 	 Approved by the Legal Dept. of
 Prometheus Laboratories Inc.:
	 	
 

	 	

  

	1	 The contracting party to this agreement, the Tax Payer ID number and the name of the payee on any payment for services rendered under this agreement
must be the same person or entity, e.g. If payment for Dr. Smith’s services will be made to Dr. Smith, the individual, this agreement will be between Prometheus and Dr. Smith and the Tax Payer ID number will be
Dr. Smith’s SSN. If payment for Dr. Smith’s services will be made to the professional corporation of Dr. Smith or Dr. Smith’s physician’s practice group, this contract must be with that entity. Please note
that physicians may not direct payments for services to be made by Prometheus for services provided hereunder to any charitable or other entity but must receive the payments as income themselves and then may make any such donations themselves.

  
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 EXHIBIT A

  

	I.	Consulting 

  

	 	•	 	 Consultant shall be available to consult with Company for up to [***] hours over the term of this Agreement by providing his expertise regarding
the development of products for, and the diagnosis and treatment, of gastrointestinal diseases to the Company. 

 Compensation for these services will be $[***] per hour for actual services provided. Consultant shall provide a detailed invoice describing the exact Consulting Services performed, who requested
the services, date of service, number of hours spent providing the services and the deliverables to the Company no later than the tenth (10th) day of each month. Services will be tracked by a form attached as Exhibit B, or in a similar manner.
Company will submit payment within thirty (30) days of receipt of such invoice. 
 Total compensation for all services provided under
this Exhibit A shall not exceed: $[***]. 
  

	***	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  
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 EXHIBIT B

 Monthly Consulting Record for Prometheus Laboratories Inc. 
 Please use this form to record your time each time you perform a service for Prometheus. Submit all forms at the end of the month for compensation under the terms of your Personal Services Agreement with
Prometheus. 
  
  
 Consultant Name and Address: 
 Consulting Service Details 

 

											
	 	  	 Day of service
	  	 Duration of service
(minutes/hours)
	  	 Type of service (Consulting,
Speaking, Advisory Board)
	  	 Prometheus person(s)
associated with service
	  	 Brief overview of subject
matter discussed,

reviewed, etc.

	1	  		  		  		  		  	
	2	  		  		  		  		  	
	3	  		  		  		  		  	
	4	  		  		  		  		  	
	5	  		  		  		  		  	
	6	  		  		  		  		  	
	7	  		  		  		  		  	
	8	  		  		  		  		  	
	9	  		  		  		  		  	
	10	  		  		  		  		  	

  
 8Form of Executive Officer Incentive Plan Stock Award Agreement

  
 Exhibit 10.18 

EXECUTIVE OFFICER INCENTIVE PLAN 

STOCK AWARD AGREEMENT UNDER 

THE MICROSOFT CORPORATION 2001 STOCK PLAN 
 Award Number <<GrantIdentifier>> 
 1. Award of Stock
Awards.    Microsoft Corporation (hereinafter the “Company”), in the exercise of its sole discretion pursuant to the Microsoft Corporation 2001 Stock Plan (the “Plan”), does
on <<GrantDate>> (the “Award Date”) hereby award to <<FullName>> (the “Awardee”) <<SharesGrantedQuantity>> Stock Awards (“SAs”) upon the terms and
subject to the conditions hereinafter contained. Capitalized terms used but not defined herein shall have the meanings assigned to them in the Plan. SAs represent the Company’s unfunded and unsecured promise to issue Common Shares at
a future date, subject to the terms of this Award Agreement and the Plan. Awardee has no rights under the SAs other than the rights of a general unsecured creditor of the Company. 

2. Vesting of SAs. 

(a) Subject to the terms of this Award Agreement and the Plan and provided that Awardee remains continuously employed through the vesting dates
set out below, the SAs shall vest as follows: 
  

					
	Vesting Date	  	Percentage
of SAs	 
	
	

		
	 [Insert Award Approval Date] (“Initial Vest Date”)
	  	 	25%	  
	 8/31/2011
	  	 	25%	  
	 8/31/2012
	  	 	25%	  
	 8/31/2013
	  	 	25%	  
	
	

 Vesting will not occur before the first
NASDAQ Stock Market regular trading day that is on or after the applicable vesting date above. 
 (b) Awardee agrees that the SAs subject
to this agreement, and other incentive or performance-based compensation Awardee receives or has received from the Company, shall be subject to the Company’s executive compensation recovery policy, as amended from to time. 

(c) AWARDEE’S RIGHTS IN THE SAs SHALL BE AFFECTED, WITH REGARD TO BOTH VESTING SCHEDULE AND TERMINATION, BY LEAVES OF ABSENCE, CHANGES IN
THE NUMBER OF HOURS WORKED, PARTIAL DISABILITY, AND OTHER CHANGES IN AWARDEE’S EMPLOYMENT STATUS AS PROVIDED IN THE COMPANY’S CURRENT POLICIES IN SUCH MATTERS. ACCOMPANYING THIS AWARD AGREEMENT IS A CURRENT COPY OF THE COMPANY’S
POLICIES IN SUCH MATTERS. THESE POLICIES MAY CHANGE FROM TIME TO TIME WITHOUT NOTICE IN THE COMPANY’S SOLE DISCRETION, AND AWARDEE’S RIGHTS WILL BE GOVERNED BY THE POLICIES IN EFFECT AT THE TIME OF ANY EMPLOYMENT STATUS
CHANGE. E-MAIL “BENEFITS” FOR A COPY OF THE MOST CURRENT POLICIES AT ANY POINT IN TIME. 

3. Termination.    Unless terminated earlier under Section 4, 5 or 6 below, an Awardee’s rights under
this Award Agreement with respect to the SAs issued under this Award Agreement shall terminate at the time such SAs are converted into Common Shares and distributed to Awardee. 

4. Termination of Awardee’s Status as a Participant.    Except as otherwise specified in Section 5, 6 and
7 below, in the event of termination of Awardee’s Continuous Status as a Participant (as such term is defined in Section 2(j) of the Plan), Awardee’s rights under this Award Agreement in any unvested SAs shall terminate. For
the avoidance of doubt, an Awardee’s Continuous Status as a Participant terminates at the time Awardee’s actual employer ceases to 

 
be the Company or a “Subsidiary” of the Company, as that term is defined in Section 2(y) of the Plan, and no person shall have any rights as an Awardee under this Award Agreement
unless he or she is in Continuous Status as a Participant on the Award Date. 
 5. Disability of
Awardee.    Notwithstanding the provisions of Section 4 above, in the event of termination of Awardee’s Continuous Status as a Participant as a result of total and permanent disability (as such term is defined in
Section 12(c) of the Plan), outstanding unvested shares under this SA shall become immediately vested. 
 6. Death of
Awardee.    Notwithstanding the provisions of Section 4 above, if Awardee is, at the time of death, in Continuous Status as a Participant, outstanding unvested SAs under the Award shall become immediately vested.

 7. Retirement of Awardee.    Notwithstanding the provisions of Section 4 above, in the event of
Awardee’s Retirement, Awardee shall be treated as continuously employed through the vesting periods in Section 2(a) above. For this purpose, “Retirement” means termination of employment with the Company or its direct and
indirect subsidiaries after the earlier of (a) age 65, or (b) attaining age 55 and 15 years of Continuous Service, provided that immediately prior to termination of employment the Awardee is employed by Microsoft (or its direct and
indirect subsidiaries) in the United States.
 This Section 7 will only apply to a Retirement if (a) the Retirement occurs on or
after the Award Date, (b) Awardee executes a release in conjunction with the Retirement in the form provided by the Company, and (c) Awardee’s employment does not terminate due to misconduct (as determined in the sole discretion of
the Company’s senior corporate officer in charge of the Human Resources department), including but not limited to misconduct in violation of Company policy and misconduct that adversely affects the Company’s interests or
reputation.
 For purposes of this Section 7, “Continuous Service” means that Awardee has continuously remained an employee
of the Company or its direct and indirect subsidiaries, measured from Awardee’s “most recent hire date” as reflected in the Company records. For an Awardee who became an employee of the Company following the acquisition of his or
her employer by the Company or its direct or indirect subsidiaries, service with the acquired employer shall count toward Continuous Service, and Continuous Service shall be measured from Awardee’s acquired company hire date as reflected in the
Company’s records. 
 8. Value of Unvested SAs.    In consideration of the award of these SAs, Awardee
agrees that upon and following termination of Awardee’s Continuous Status as a Participant for any reason (whether or not in breach of applicable laws), and regardless of whether Awardee is terminated with or without cause, notice, or
pre-termination procedure or whether Awardee asserts or prevails on a claim that Awardee’s employment was terminable only for cause or only with notice or pre-termination procedure, any unvested SAs under this Award Agreement shall be deemed to
have a value of zero dollars ($0.00). 
 9. Conversion of SAs to Common Shares; Responsibility for Taxes. 

(a) Provided Awardee has satisfied the requirements of Section 9(b) below, on the vesting of any SAs, such vested SAs shall be converted
into an equivalent number of Common Shares that will be distributed to Awardee within 90 days after the date of the vesting event, or in the event of Awardee’s death, to Awardee’s legal representative within 90 days after date of death;
provided that SAs that vest on or before the Initial Vest Date, shall be converted into an equivalent number of Common Shares that will be distributed to Awardee (1) after the number of SAs subject to this Award Agreement is determined, and
(2) between the Initial Vest Date and the last day of the first September containing the Initial Vest Date. Notwithstanding the foregoing, if accelerated vesting of an SA occurs pursuant to a provision of the Plan not addressed in this Award
Agreement, distribution of the related Common Share shall not occur until the date distribution would have occurred under this Award Agreement absent such accelerated vesting. The distribution to Awardee, or in the case of Awardee’s death, to
Awardee’s legal representative, of Common Shares in respect of the vested SAs shall be evidenced by a stock certificate, appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company, or other appropriate
means as determined by the Company. In the event ownership or issuance of Common Shares is not feasible due to applicable exchange controls, securities regulations, tax laws or other provisions of applicable law, as determined by the Company in
its sole discretion, Awardee, or in the event of Awardee’s death, Awardee’s legal representative, shall receive cash proceeds in an amount equal to the value of the Common Shares otherwise distributable to Awardee, as determined by the
Company in its sole discretion, net of amounts withheld in satisfaction of the requirements of Section 9(b) below. 

  
 (b) Regardless of any
action the Company or Awardee’s actual employer takes with respect to any or all income tax (including federal, state and local taxes), social insurance, payroll tax, payment on account, or other tax-related withholding items (“Tax-Related
Items”) that arise in connection with the SAs, Awardee acknowledges and agrees that the ultimate liability for any Tax-Related Items determined by the Company in its discretion to be legally due by Awardee, is and remains Awardee’s
responsibility. Awardee acknowledges and agrees that the Company and/or Awardee’s actual employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the SAs,
including the grant of the SAs, the vesting of SAs, the conversion of the SAs into Common Shares or the receipt of an equivalent cash payment, the subsequent sale of any Common Shares acquired and the receipt of any dividends; and (ii) do not
commit to and are under no obligation to structure the terms of the grant or any aspect of the SAs to reduce or eliminate Awardee’s liability for any Tax-Related Items. 
 Prior to the relevant taxable or tax-withholding event, as applicable, Awardee shall pay, or make adequate arrangements satisfactory to the Company or to Awardee’s actual employer (in their sole discretion) to
satisfy all obligations for Tax-Related Items. In this regard, Awardee authorizes the Company or Awardee’s actual employer to withhold all applicable Tax-Related Items from Awardee’s wages or other cash compensation payable to Awardee
by the Company or Awardee’s actual employer. Alternatively, or in addition, the Company or Awardee’s actual employer may, in their sole discretion, and without notice to or authorization by Awardee, (i) sell or arrange for the
sale of Common Shares to be issued upon the vesting of SAs or other event to satisfy the withholding obligation, and/or (ii) withhold in Common Shares, provided that the Company and Awardee’s actual employer shall withhold only the amount
of shares necessary to satisfy the minimum withholding amount or such other amount determined by the Company as not resulting in negative accounting consequences for the Company. Awardee will be deemed to have been issued the full number of Common
Shares subject to the SAs, notwithstanding that a number of whole vested Common Shares are held back solely for the purpose of paying the Tax-Related Items. Awardee shall pay to the Company or to Awardee’s actual employer any amount of
Tax-Related Items that the Company or Awardee’s actual employer may be required to withhold as a result of Awardee’s receipt of SAs, the vesting of SAs, or the conversion of vested SAs to Common Shares that cannot be satisfied by the means
described in this paragraph. Except where applicable legal or regulatory provisions prohibit and notwithstanding anything in the Plan to the contrary, the standard process for the payment of an Awardee’s Tax-Related Items shall be for the
Company or Awardee’s actual employer to withhold in Common Shares only to the amount of shares necessary to satisfy the minimum withholding amount or such other amount determined by the Company as not resulting in negative accounting
consequences for the Company. The Company may refuse to deliver Common Shares to Awardee if Awardee fails to comply with Awardee’s obligation in connection with the Tax-Related Items as described in this section 9. 

(c) In lieu of issuing fractional Common Shares, on the vesting of a fraction of a SA, the Company shall round the shares to the nearest whole
share and any such share that represents a fraction of a SA will be included in a subsequent vest date. 
 (d) Until the distribution
to Awardee of the Common Shares in respect of the vested SAs is evidenced by a stock certificate, appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company, or other appropriate means, Awardee shall have no
right to vote or receive dividends or any other rights as a shareholder with respect to such Common Shares, notwithstanding the vesting of SAs. No adjustment will be made for a dividend or other right for which the record date is prior to the
date Awardee is recorded as the owner of the Common Shares, except as provided in Section 14 of the Plan. 
 (e) By accepting
the Award of SAs evidenced by this Award Agreement, Awardee agrees not to sell any of the Common Shares received on account of vested SAs at a time when applicable laws or Company policies prohibit a sale. This restriction shall apply so long
as Awardee is an Employee, Consultant or outside director of the Company or a Subsidiary of the Company. 

10. Non-Transferability of SAs.    Awardee’s right in the SAs awarded under this Award Agreement and any
interest therein may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner, other than by will or by the laws of descent or distribution. SAs shall not be subject to execution, attachment or other process.

 11. Acknowledgment of Nature of Plan and SAs.    In accepting the Award, Awardee acknowledges that:
(a) the Plan is established voluntarily by the Company, it is discretionary in nature and may be modified, amended, suspended or terminated by the Company at any time, as provided in the Plan; 

  
 (b) the Award of SAs is
voluntary and occasional and does not create any contractual or other right to receive future awards of SAs or other awards, or benefits in lieu of SAs even if SAs have been awarded repeatedly in the past; 

(c) all decisions with respect to SAs or other future awards, if any, will be at the sole discretion of the Company; 

(d) Awardee’s participation in the Plan is voluntary; 
 (e) the future value of the underlying Common Shares is unknown and cannot be predicted with certainty; 
 (f) if Awardee receives Common Shares, the value of such Common Shares acquired on vesting of SAs may increase or decrease in value; 
 (g) notwithstanding any terms or conditions of the Plan to the contrary and consistent with Section 4, above, in the event of termination of Awardee’s Continuous Status as a Participant under
circumstances where Section 7 does not apply (whether or not in breach of applicable laws), Awardee’s right to receive SAs and vest under the Plan, if any, will terminate effective as of the date that Awardee is no longer actively employed
and will not be extended by any notice period mandated under applicable law. Awardee’s right to receive Common Shares pursuant to the SAs after termination of Continuous Status as a Participant, if any, will be calculated as of the date of
termination of Awardee’s active employment and will not be extended by any notice period mandated under applicable law. The senior corporate officer in charge of the Human Resources department shall have the exclusive discretion to determine
when Awardee is no longer actively employed for purposes of the award of SAs; and 
 (h) Awardee acknowledges and agrees that,
regardless of whether Awardee is terminated with or without cause, notice or pre-termination procedure or whether Awardee asserts or prevails on a claim that Awardee’s employment was terminable only for cause or only with notice or
pre-termination procedure, Awardee has no right to, and will not bring any legal claim or action for, (a) any damages for any portion of the SAs that have been vested and converted into Common Shares, or (b) termination of any unvested SAs
under this Award Agreement.
 12. No Employment Right.    Awardee acknowledges that neither the fact of
this Award of SAs nor any provision of this Award Agreement or the Plan or the policies adopted pursuant to the Plan shall confer upon Awardee any right with respect to employment or continuation of current employment with the Company or with
Awardee’s actual employer, or to employment that is not terminable at will. Awardee further acknowledges and agrees that neither the Plan nor this Award of SAs makes Awardee’s employment with the Company or Awardee’s actual
employer for any minimum or fixed period, and that such employment is subject to the mutual consent of Awardee and the Company or Awardee’s actual employer, and may be terminated by either Awardee or the Company or Awardee’s actual
employer at any time, for any reason or no reason, with or without cause or notice or any kind of pre- or post-termination warning, discipline or procedure. 
 13. Administration.    The authority to manage and control the operation and administration of this Award Agreement shall be vested in the Committee (as such term is defined in
Section 2(f) of the Plan), and the Committee shall have all powers and discretion with respect to this Award Agreement as it has with respect to the Plan. Any interpretation of the Award Agreement by the Committee and any decision made by
the Committee with respect to the Award Agreement shall be final and binding on all parties. References to the Committee in this Award Agreement shall be read to include a reference to any delegate of the Committee acting within the scope of his or
her delegation. 
 14. Plan Governs.    Notwithstanding anything in this Award Agreement to the contrary,
the terms of this Award Agreement shall be subject to the terms of the Plan, and this Award Agreement is subject to all interpretations, amendments, rules and regulations promulgated by the Committee from time to time pursuant to the Plan.

 15. Notices.    Any written notices provided for in this Award Agreement that are sent by mail shall be
deemed received three business days after mailing, but not later than the date of actual receipt. Notices shall be directed, if to Awardee, at Awardee’s address indicated by the Company’s records and, if to the Company, at the
Company’s principal executive office. 
 16. Electronic Delivery.    The Company may, in its sole
discretion, decide to deliver any documents related to SAs awarded under the Plan or future SAs that may be awarded under the Plan by electronic means or request Awardee’s consent to participate in the Plan by electronic means. Awardee
hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company. 

  

17. Acknowledgment.    By Awardee’s acceptance as evidenced below, Awardee acknowledges that Awardee has
received and has read, understood and accepted all the terms, conditions and restrictions of this Award Agreement, the Plan, and the current policies referenced in Section 2(b) of this Award Agreement. Awardee understands and agrees that
this Award Agreement is subject to all the terms, conditions, and restrictions stated in this Award Agreement and in the other documents referenced in the preceding sentence, as the latter may be amended from time to time in the Company’s sole
discretion. Awardee further acknowledges that Awardee must accept this Award Agreement in the manner prescribed by the Company no later than the first anniversary of the Award Date. 

18. Board Approval.    These SAs have been awarded pursuant to the Plan and accordingly this Award of SAs is
subject to approval by an authorized committee of the Board of Directors. If this Award of SAs has not already been approved, the Company agrees to submit this Award for approval as soon as practical. If such approval is not obtained, this
award is null and void. 
 19. Governing Law.    This Award Agreement shall be governed by the laws of the
State of Washington, U.S.A., without regard to Washington laws that might cause other law to govern under applicable principles of conflicts of law.
 20. Severability.    If one or more of the provisions of this Award Agreement shall be held invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby and the invalid, illegal or unenforceable provisions shall be deemed null and void; however, to the extent permissible by law, any provisions that could
be deemed null and void shall first be construed, interpreted or revised retroactively to permit this Award Agreement to be construed so as to foster the intent of this Award Agreement and the Plan. 

21. Complete Award Agreement and Amendment.    This Award Agreement (including the policies referenced in
Section 2(b)), the Notice of Receipt of Stock Awards (if any), and the Plan constitute the entire agreement between Awardee and the Company regarding SAs. Any prior agreements, commitments or negotiations concerning these SAs are
superseded. This Award Agreement may be amended only by written agreement of Awardee and the Company, without consent of any other person, provided that no consent is necessary to an amendment that in the reasonable judgment of the Committee
confers a benefit on Awardee. Awardee agrees not to rely on any oral information regarding this Award of SAs or any written materials not identified in this Section 21. 

22. Code Section 409A.    This Award Agreement shall be interpreted, operated, and administered in a manner so as
not to subject Awardee to the assessment of additional taxes or interest under Code section 409A, and this Award Agreement shall be amended as the Company, in its sole discretion, determines is necessary and appropriate to avoid the application
of any such taxes or interest. 
 EXECUTED as of the Award Date above written. 

 

	
	MICROSOFT CORPORATION
	
	/S/ LISA BRUMMEL
	Lisa Brummel
	Senior Vice President, Human Resources

 AWARDEE’S
ACCEPTANCE: 
 I have read and fully understood this Award Agreement and, as referenced in Section 17 above, I accept and agree to be
bound by all of the terms, conditions and restrictions contained in this Award Agreement and the other documents referenced in it. I intend to express my acceptance of the Award and this Award Agreement by typing my name in Awardee acceptance
window provided in “step 2” of the award acceptance checklist, and I further intend the typing of my name to have the same force and effect in all respects as a handwritten signature.

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