Document:

Spansion Inc. 2010 Executive Compensation Plan

 Exhibit 10.10 
 CEO Recommendation 
 To 

Compensation Committee 
 for 
 2010 Executive Compensation Plan 

Presented by: John Kispert & Carmine Renzulli 
 May 10, 2010 

 CEO 
 Total Compensation Package Recommendation 
 for 

2010 

  
 

 

			
		  	Page 2

 High level executive compensation plan for Spansion 

For CEO: 
 High level strategy:

 Our primarily long-term corporate objective is to create superior value for our stockholders. The objective of the executive compensation
program is to attract, motivate, reward and retain highly qualified executive officers who are able to achieve the corporate objective of superior value for our stockholders. The executive compensation program is designed to provide a foundation of
fixed compensation (based salary and time based stock options) and a meaningful portion of performance-based compensation. 
 At the CEO level,
there is the greatest emphasis on linking pay to performance so as to align the interest of the CEO directly with those of stockholders. Accordingly, compensation is structured so that approximately 70% of CEO compensation is performance-based
depending upon Spansion’s financial results, with the remaining 30% comprising base pay and benefits. 
 Base Pay

 Base Pay: $900,000 
 Incentive Compensation 
 The target incentive compensation percentage for the CEO in
fiscal 2010 is 200% of base pay. The incentive compensation award is based on achievement of the 2010 Budgeted revenue and operating margin. See the Incentive Compensation Matrix on page 4. The 100% figure on the matrix equates to the CEO receiving
100% of his targeted 200% of base pay. 
 Philosophy for setting financial goals 

Spansion’s philosophy for setting annual financial goals is to be aggressive. This can be seen by the matrix below. To drive home this point, in
2008 Spansion’s operating income was a loss of approximately $2.3 billion representing an operating margin of a negative 99.6%. In 2009, operating income was again a loss of approximately $240 million or an operating margin of approximately a
negative 9.6%. Also, Spansion had never been profitable as a public company until the fourth quarter of 2009. 
 As such, to include an
operating margin target of positive 13.9% is clearly a stretch. Also, the $1.2 billion in revenue will likewise represent a stretch. In Q1 2010, Spansion will be at its trough or nominal run rate after its strategic decision made in early 2008 to
exit the wireless business (with the exception of a small portion of the wireless business that was retained now referred to as mobility). This trough or nominal run rate has revenue at $271 million or $1.08 billion annualized. The mix is estimated
to be approximately $200 million embedded (74%) and $71 million mobility (26%). Critical to the assumptions here is the embedded business is forecasted by industry experts to be flat to negative growth. Thus a revenue plan of $1.2 billion

  
 

 

			
		  	Page 3

 
that incorporates increasing Q1 revenue from $271 to $328 million by Q4, a 21.0% increase, is an aggressive revenue plan. 
 One other key point to understand in the incentive compensation plan matrix is the scale is not linear. The result of this design is that if the CEO and his team miss the financial goals by even a slight
amount ($100 million, 8.3% on revenue and/or by 1 point, 7.2% on operating margin) no bonus has been earned. Conversely, to achieve the maximum, the CEO and his team would be required to achieve both an incremental $300 million (+25%) in
revenue and a 3 point (21.6%) increase in operating margin. Accomplishing this would add an incremental 52.0% or approximately $87 million increase in operating income, clearly a meaningful net benefit to stockholders. The net is a very
aggressive plan with little room for error and stretch goals, that if achieved, would add significant stockholder value. 

Incentive Compensation Matrix 
  

																									
	 

	 	 	 	 	 	Revenue (M$)
	 	 	 	 	 	< $1,100	 	$1,100	 	$1,125	 	$1,150	 	$1,175	 	$1,200	 	$1,275	 	$1,350	 	$1,425	 	$1,500
	 	 	 	 	 	< -8%	 	-8%	 	-6%	 	-4%	 	-2%	 	0%	 	6%	 	13%	 	19%	 	25%
	 	16.90%	 	22%	 	0%	 	120%	 	130%	 	140%	 	150%	 	160%	 	170%	 	180%	 	190%	 	200%
	 	16.15%	 	16%	 	0%	 	110%	 	119%	 	128%	 	136%	 	145%	 	155%	 	165%	 	175%	 	185%
	 	15.40%	 	11%	 	0%	 	100%	 	108%	 	115%	 	123%	 	130%	 	140%	 	150%	 	160%	 	170%
	 	14.65%	 	5%	 	0%	 	90%	 	96%	 	103%	 	109%	 	115%	 	125%	 	135%	 	145%	 	155%
	 	13.90%	 	0%	 	0%	 	80%	 	85%	 	90%	 	95%	 	100%	 	110%	 	120%	 	130%	 	140%
	 	13.65%	 	-2%	 	0%	 	73%	 	78%	 	83%	 	88%	 	93%	 	103%	 	113%	 	123%	 	135%
	 	13.40%	 	-4%	 	0%	 	65%	 	70%	 	75%	 	80%	 	85%	 	95%	 	105%	 	115%	 	130%
	 	13.15%	 	-5%	 	0%	 	58%	 	63%	 	68%	 	73%	 	83%	 	93%	 	103%	 	113%	 	125%
	 	12.90%	 	-7%	 	0%	 	50%	 	55%	 	63%	 	70%	 	80%	 	90%	 	100%	 	110%	 	120%
	 	< 12.9%	 	< -7%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%

 Note: Company payout factor is capped at 200%, and revenue and operating margin are measured as
follows: 
  

	 	•	 	 Revenue refers to sales generated from all Spansion’s products and services as reported in Spansion’s pro-forma P&L. Pro-forma
adjustments to GAAP revenue would include: 

  

	 	•	 	 Add back of deferred revenue lost due to fresh start accounting; and 

 

	 	•	 	 Reduction of revenue from companies acquired during fiscal 2010. 

 

	 	•	 	 Operating Margin is derived from Operating Income divided by Revenue (as defined above). Operating Income refers to Spansion’s earnings
before interest income/expense, other income/expense, taxes and extraordinary items as reported in Spansion’s pro-forma P&L. Pro-forma adjustments to GAAP Operating Income would include: 

 

	 	•	 	 Revenue adjustments; and 

  

	 	•	 	 Expense adjustments indicated on next page. 

  

	 	•	 	 Elimination of bankruptcy-related reorganization, restructuring, and any other applicable costs, including any items identified as such in the 2010
Annual Budget; 

  

	 	•	 	 Elimination of any other fees or bonuses that are required for or upon the company’s successful emergence from Chapter 11 bankruptcy;

  

	 	•	 	 Adjustment for Spansion Japan or Spansion Nihon KK related payments or expenses, settlement, or other such activities 

 

	 	•	 	 Adjustments for changes in the carrying costs of assets and depreciation levels due to fresh start accounting, including but not limited to inventory,
property and equipment, and intangibles; 

  

	 	•	 	 Adjustments for changes in the liabilities due to fresh start accounting, including but not limited to market valuation of debt, capital leases, and
other such items; 

  

	 	•	 	 Adjustment for change in expenses due to equity grants (valuation, vesting, etc); 

 

	 	•	 	 Elimination of costs and expenses from companies acquired during fiscal 2010 and any administrative costs associated with board-approved transactions;
and 

  

	 	•	 	 Elimination of any expenses or credits recorded on unconventional line items in GAAP Operating Income due to unforeseen accounting situations (e.g.,
sort reserve, claims agent, gain on extinguishment of debt, ARS, etc). 

 Performance-Based Restricted
Stock Units 

  
 

 

			
		  	Page 4

 The initial grant is 431,775 performance-based restricted shares that vest and are earned as follows:

 2010 target – 25.0% or 107,944 shares is target (note, these shares will be granted in May 2010 and thus will vest
(but not be earned) on December 31, 2010 - a period of less than one year) 
 2011 target - 25.0% or 107,944 shares is
target 
 2012 target - 25.0% or 107,944 shares is target 

2013 target - 25.0% or 107,943 shares is target 
 The key elements of the performance-based restricted stock unit program are: 
  

	 	•	 	 Performance-based restricted stock units will vest (though not necessarily be earned) on an annual basis: 25% a year beginning with the year ending
December 31, 2010. On the final trading day of January of the following year the actual number of shares earned will be awarded based on the achieved financials (“Payout Factor”) as defined in the Restricted Stock Units
Earned Matrix on Page 6. The period for Company performance measurement will be the Company’s fiscal year. 

  

	 	•	 	 Each participant will have a target number of shares for each year of the plan. This is referred to as the “Base Number of Shares”. The Base
Number of shares is equal to 25% of the total number of shares awarded. For example, if the CEO was awarded 450,000 shares in year 1, his year one Base Number of Shares would be 112,500. And, if the CEO was awarded 200,000 additional shares in year
2, the CEO’s 2nd year Base Number of Shares would be
162,500 (112,500 for the year one grant plus 50,000 for the year two grant). 

  

	 	•	 	 If the Company’s Payout Factor equals the 100% figure in the matrix, then the participant will earn 100% of the Base Number of Shares for the
year. 

  

	 	•	 	 If the Company’s Payout Factor falls below the 100% payout level in any year, then the percentage achieved will be applied to the Base Number of
Shares with the additional, unearned shares deferred to the subsequent year (“Carry Forward” number of shares). 

  

	 	•	 	 If the Company’s Payout Factor exceeds the 100% payout level in any year, then the Payout Factor will be applied to the Base Number of Shares. Any
shares earned in excess of the Base Number of Shares will be funded by the carry forward shares. If an insufficient number of Carry Forward shares exists, excess shares will be accelerated from the furthest year out (i.e. if in 2010 more than 100%
of the Base Number of Shares are earned, then the excess shares are accelerated from the Base Number of Shares scheduled to vest in 2013). 

  

	 	•	 	 Upon acceleration, the Base Number of Shares from which the shares were accelerated shall be reduced by the corresponding number of accelerated shares.

  

	 	•	 	 No participant may earn additional shares over the initial number of shares granted; if performance in a given year warrants acceleration but the Base
Number of Shares in subsequent years have already been depleted, no acceleration occurs. 

  

	 	•	 	 Any Carry Forward shares not used to fund above target payouts are carried forward to the subsequent year. 

 

	 	•	 	 Carry Forward shares not earned at the conclusion of the final performance period will be forfeited. 

Note: the 2010 performance-based restricted stock unit program truly has RSUs at risk. Even though on the “upside”, RSUs
accelerate, no “additional” shares over the initial grant can be 

  
 

 

			
		  	Page 5

 
earned. If the financial performance goals are not achieved in any given year, shares are pushed to the following year, but there is no guarantee that the shares push out will ever be earned,
particularly since any unearned shares are forfeited after the four-year vesting period. 
 Performance-Based Restricted Stock
Units Earned Matrix 
  

																									
	 	 	 	 	 	 	Revenue (M$)
	 	 	 	 	 	 	< $1,100	 	$1,100	 	$1,125	 	$1,150	 	$1,175	 	$1,200	 	$1,275	 	$1,350	 	$1,425	 	$1,500
	 

	 	 	 	 	 	< -8%	 	-8%	 	-6%	 	-4%	 	-2%	 	0%	 	6%	 	13%	 	19%	 	25%
	 	16.90%	 	22%	 	50%	 	120%	 	130%	 	140%	 	150%	 	150%	 	150%	 	150%	 	150%	 	150%
	 	16.15%	 	16%	 	50%	 	110%	 	119%	 	128%	 	136%	 	145%	 	150%	 	150%	 	150%	 	150%
	 	15.40%	 	11%	 	50%	 	100%	 	108%	 	115%	 	123%	 	130%	 	140%	 	150%	 	150%	 	150%
	 	14.65%	 	5%	 	50%	 	90%	 	96%	 	103%	 	109%	 	115%	 	125%	 	135%	 	145%	 	150%
	 	13.90%	 	0%	 	50%	 	80%	 	85%	 	90%	 	95%	 	100%	 	110%	 	120%	 	130%	 	140%
	 	13.65%	 	-2%	 	50%	 	73%	 	78%	 	83%	 	88%	 	93%	 	103%	 	113%	 	123%	 	135%
	 	13.40%	 	-4%	 	50%	 	65%	 	70%	 	75%	 	80%	 	85%	 	95%	 	105%	 	115%	 	130%
	 	13.15%	 	-5%	 	50%	 	58%	 	63%	 	68%	 	73%	 	83%	 	93%	 	103%	 	113%	 	125%
	 	12.90%	 	-7%	 	50%	 	50%	 	55%	 	63%	 	70%	 	80%	 	90%	 	100%	 	110%	 	120%
	 	< 12.9%	 	< -7%	 	50%	 	50%	 	50%	 	50%	 	50%	 	50%	 	50%	 	50%	 	50%	 	50%

 Stock Options 
 The initial grant is 802,606 stock options. The options will vest as follows: 33.3% after one year and then monthly thereafter – 3 year schedule. 

The plan would be to receive a onetime cash bonus that is on top of and in addition to the incentive compensation plan outlined above
that will be in the total amount of $1,736,342. This would be paid on or about November 1, 2010 and May 1, 2011 in equal installments. 

  
 

 

			
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 Named Executive Officers (NEOs) 

Total Compensation Package Recommendation 
 for 
 2010 

  
 

 

			
		  	Page 7

 For NEOs (other than the CEO): 
 High level strategy (same as CEO): 
 Our primarily long-term corporate objective is to
create superior value for our stockholders. The objective of the executive compensation program is to attract, motivate, reward and retain highly qualified executive officers who are able to achieve the corporate objective of superior value for our
stockholders. The executive compensation program is designed to provide a foundation of fixed compensation (based salary and time based restricted shares) and a significant portion of performance-based compensation. 

Base Pay 
 EVP,
CFO (Randy Furr): $440,000 
 EVP, Worldwide Sales (Ahmed Nawaz): $409,275 
 EVP, Marketing (Jim Reid): $370,000 
 Incentive compensation

 See incentive compensation philosophy discussed in the CEO section. The philosophy here is the same. 

The 2010 incentive compensation for the NEOs works as follows: 
  

																	
	Base Pay	 	X      	 	Individual

Target

Bonus
Percentage
	 	X      	 	Company
Payout
Factor	 	X      	 	Individual
Payout
Factor	 	=      	 	Bonus
Amount

 With the following definitions: 
 Base Pay: bonus period ending annual base pay rate 
 Individual Target
Bonus Percentage: defined below as recommended by CEO and approved by Compensation Committee 
 Company Payout Factor:
defined from table below which is a function of revenue and operating margin as recommended annually by the CEO and approved by the BOD/Compensation Committee 
 Individual Payout Factor: These are both objective and subjective factors considered based on predetermined goals and objectives established by the CEO for each NEO and approved by the Compensation
Committee and can affect the calculated performance bonus by as much as 50% down or 50% up with the stipulation that the total combined bonuses of the NEOs is a zero sum (i.e. assuming the same base pay, if one NEO received 125%, one other would
receive 75% to offset the addition). See Exhibit A for Spansion Corporate goals and Exhibit B for the individual goals and objectives for each NEO. 
 The target incentive compensation percentage for the NEOs in fiscal 2010 is as follows: 

  
 

 

			
		  	Page 8

 EVP, CFO (Randy Furr): 125% 

EVP, Worldwide Sales (Ahmed Nawaz): 80% 
 EVP, Marketing (Jim Reid): 80% 
 The above percentages apply against base pay based on achievement
of the 2010 Budget as follows (100% equates to the NEOs receiving 100% of his/her targeted percentage of base pay): 

Incentive Compensation Matrix 
  

																									
	 	 	 	 	 	 	Revenue (M$)
	 	 	 	 	 	 	< $1,100	 	$1,100	 	$1,125	 	$1,150	 	$1,175	 	$1,200	 	$1,275	 	$1,350	 	$1,425	 	$1,500
	

	 	 	 	 	 	< -8%	 	-8%	 	-6%	 	-4%	 	-2%	 	0%	 	6%	 	13%	 	19%	 	25%
	 	16.90%	 	22%	 	0%	 	120%	 	130%	 	140%	 	150%	 	160%	 	170%	 	180%	 	190%	 	200%
	 	16.15%	 	16%	 	0%	 	110%	 	119%	 	128%	 	136%	 	145%	 	155%	 	165%	 	175%	 	185%
	 	15.40%	 	11%	 	0%	 	100%	 	108%	 	115%	 	123%	 	130%	 	140%	 	150%	 	160%	 	170%
	 	14.65%	 	5%	 	0%	 	90%	 	96%	 	103%	 	109%	 	115%	 	125%	 	135%	 	145%	 	155%
	 	13.90%	 	0%	 	0%	 	80%	 	85%	 	90%	 	95%	 	100%	 	110%	 	120%	 	130%	 	140%
	 	13.65%	 	-2%	 	0%	 	73%	 	78%	 	83%	 	88%	 	93%	 	103%	 	113%	 	123%	 	135%
	 	13.40%	 	-4%	 	0%	 	65%	 	70%	 	75%	 	80%	 	85%	 	95%	 	105%	 	115%	 	130%
	 	13.15%	 	-5%	 	0%	 	58%	 	63%	 	68%	 	73%	 	83%	 	93%	 	103%	 	113%	 	125%
	 	12.90%	 	-7%	 	0%	 	50%	 	55%	 	63%	 	70%	 	80%	 	90%	 	100%	 	110%	 	120%
	 	< 12.9%	 	< -7%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%

 Note: Company payout factor is capped at 200%, revenue and operating margin is measured as follows: 

 

	 	•	 	 Revenue refers to sales generated from all Spansion’s products and services as reported in Spansion’s pro-forma P&L. Pro-forma
adjustments to GAAP revenue would include: 

  

	 	•	 	 Add back of deferred revenue lost due to fresh start accounting; and 

 

	 	•	 	 Reduction of revenue from companies acquired during fiscal 2010. 

 

	 	•	 	 Operating Margin is derived from Operating Income divided by Revenue (as defined above). Operating Income refers to Spansion’s earnings
before interest income/expense, other income/expense, taxes and extraordinary items as reported in Spansion’s pro-forma P&L. Pro-forma adjustments to GAAP Operating Income would include: 

 

	 	•	 	 Revenue adjustments; and 

  

	 	•	 	 Expense adjustments indicated on next page. 

  

	 	•	 	 Elimination of bankruptcy-related reorganization, restructuring, and any other applicable costs, including any items identified as such in the 2010
Annual Budget; 

  

	 	•	 	 Elimination of any other fees or bonuses that are required for or upon the company’s successful emergence from Chapter 11 bankruptcy;

  

	 	•	 	 Adjustment for Spansion Japan or Spansion Nihon KK related payments or expenses, settlement, or other such activities 

 

	 	•	 	 Adjustments for changes in the carrying costs of assets and depreciation levels due to fresh start accounting, including but not limited to inventory,
property and equipment, and intangibles; 

  

	 	•	 	 Adjustments for changes in the liabilities due to fresh start accounting, including but not limited to market valuation of debt, capital leases, and
other such items; 

  

	 	•	 	 Adjustment for change in expenses due to equity grants (valuation, vesting, etc) 

 

	 	•	 	 Elimination of costs and expenses from companies acquired during fiscal 2010 and any administrative costs associated with board-approved transactions.

  

	 	•	 	 Elimination of any expenses or credits recorded on unconventional line items in GAAP Operating Income due to unforeseen accounting situations (e.g.,
sort reserve, claims agent, gain on extinguishment of debt, ARS, etc) 

 Performance-Based Restricted
Stock Units 
 The initial grant of performance-based restricted shares for the NEOs are as follows: 

 

					
	  	  	2010 Initial Grant	 
	 EVP, CFO (Randy Furr)
	  	 	215,888	  
	 EVP, Worldwide Sales (Ahmed Nawaz)
	  	 	115,140	  
	 EVP, Marketing (Jim Reid)
	  	 	124,735	  

  
 

 

			
		  	Page 9

 The key elements of the performance-based restricted stock unit program are: 

 

	 	•	 	 Performance-based restricted stock units will vest (though not necessarily be earned) on an annual basis: 25% a year beginning with the year ending
December 31, 2010. On the final trading day of January of the following year the actual number of shares earned will be awarded based on the achieved financials (“Payout Factor”) as defined in the Restricted Stock Units
Earned Matrix on Page 6. The period for Company performance measurement will be the Company’s fiscal year. 

  

	 	•	 	 Each participant will have a target number of shares for each year of the plan. This is referred to as the “Base Number of Shares”. The Base
Number of shares equal to 25% of the total number of shares awarded. For example, if the executive was awarded 100,000 shares in year 1, his year one Base Number of Shares would be 25,000. And, if the executive was awarded 50,000 additional shares
in year 2, the executive’s 2nd year Base Number of
Shares would be 62,500 (50,000 for the year one grant plus 12,500 for the year two grant). 

  

	 	•	 	 If the Company’s Payout Factor equals the 100% figure in the matrix, then the participant will earn 100% of the Base Number of Shares for the
year. 

  

	 	•	 	 If the Company’s Payout Factor falls below the 100% payout level in any year, then the percentage achieved will be applied to the Base Number of
Shares with the additional, unearned shares deferred to the subsequent year (“Carry Forward” number of shares). 

  

	 	•	 	 If the Company’s Payout Factor exceeds the 100% payout level in any year, then the Payout Factor will be applied to the Base Number of Shares. Any
shares earned in excess of the Base Number of Shares will be funded by the carry forward shares. If an insufficient number of Carry Forward shares exists excess shares will be accelerated from the furthest year out (i.e. if in 2010 more than 100% of
the Base number of Shares are earned, then the excess shares are accelerated from the Base Number of Shares scheduled to vest in 2013). 

  

	 	•	 	 Upon acceleration, the Base Number of Shares from which the shares were accelerated shall be reduced by the corresponding number of accelerated shares.

  

	 	•	 	 No participant may earn additional shares over the initial number of shares granted; if performance in a given year warrants acceleration but the Base
Number of Shares in subsequent years have already been depleted, no acceleration occurs. 

  

	 	•	 	 Any Carry Forward shares not used to fund above target payouts are carried forward to the subsequent year 

 

	 	•	 	 Carry Forward shares not earned at the conclusion of the final performance period will be forfeited. 

Note: the 2010 performance-based restricted stock unit program truly has RSUs at risk. Even though on the “upside”, RSUs
accelerate, no “additional” shares over the initial grant can be earned. If the financial performance goals are not achieved in any given year, shares are pushed to the following year, but there is no guarantee that the shares push out
will ever be earned, particularly since any unearned shares are forfeited after the four-year vesting period. 

  
 

 

			
		  	Page 10

 Performance-Based Restricted Stock Units Earned Matrix 

 

																									
	 	 	 	 	 	 	Revenue (M$)
	 	 	 	 	 	 	< $1,100	 	$1,100	 	$1,125	 	$1,150	 	$1,175	 	$1,200	 	$1,275	 	$1,350	 	$1,425	 	$1,500
	

	 	 	 	 	 	< -8%	 	-8%	 	-6%	 	-4%	 	-2%	 	0%	 	6%	 	13%	 	19%	 	25%
	 	16.90%	 	22%	 	50%	 	120%	 	130%	 	140%	 	150%	 	150%	 	150%	 	150%	 	150%	 	150%
	 	16.15%	 	16%	 	50%	 	110%	 	119%	 	128%	 	136%	 	145%	 	150%	 	150%	 	150%	 	150%
	 	15.40%	 	11%	 	50%	 	100%	 	108%	 	115%	 	123%	 	130%	 	140%	 	150%	 	150%	 	150%
	 	14.65%	 	5%	 	50%	 	90%	 	96%	 	103%	 	109%	 	115%	 	125%	 	135%	 	145%	 	150%
	 	13.90%	 	0%	 	50%	 	80%	 	85%	 	90%	 	95%	 	100%	 	110%	 	120%	 	130%	 	140%
	 	13.65%	 	-2%	 	50%	 	73%	 	78%	 	83%	 	88%	 	93%	 	103%	 	113%	 	123%	 	135%
	 	13.40%	 	-4%	 	50%	 	65%	 	70%	 	75%	 	80%	 	85%	 	95%	 	105%	 	115%	 	130%
	 	13.15%	 	-5%	 	50%	 	58%	 	63%	 	68%	 	73%	 	83%	 	93%	 	103%	 	113%	 	125%
	 	12.90%	 	-7%	 	50%	 	50%	 	55%	 	63%	 	70%	 	80%	 	90%	 	100%	 	110%	 	120%
	 	< 12.9%	 	< -7%	 	50%	 	50%	 	50%	 	50%	 	50%	 	50%	 	50%	 	50%	 	50%	 	50%

 Stock Options 
 The initial grant of stock options to the NEOs are as follows: 
  

					
	 	  	2010 Initial Grant	 
	 EVP, CFO (Randy Furr)
	  	 	401,303	  
	 EVP, Worldwide Sales (Ahmed Nawaz)
	  	 	215,362	  
	 EVP, Marketing (Jim Reid)
	  	 	223,600	  

 The options will vest as follows: 33.3% after one year and then monthly thereafter – 3 year schedule. 

The plan would be to receive a onetime cash bonus that is on top of and in addition to the incentive compensation plan outlined
above. The onetime cash bonus will be $868,170.00 for Randy Furr, $483,732 for Jim Reid, and $465,908 for Ahmed Nawaz. This would be paid on or about November 1, 2010 and May 1, 2011 in equal installments. 

  
 

 

			
		  	Page 11

 For CEO direct reports (other than NEOs) 

Total Compensation Package Recommendation 
 for 
 2010 

  
 

 

			
		  	Page 12

 For CEO direct reports (other than NEOs): 
 High level strategy (same as CEO & NEOs): 
 Our primarily long-term corporate
objective is to create superior value for our stockholders. The objective of the executive compensation program is to attract, motivate, reward and retain highly qualified executive officers who are able to achieve the corporate objective of
superior value for our stockholders. The executive compensation program is designed to provide a foundation of fixed compensation (based salary and time based restricted shares) and a significant portion of performance-based compensation.

 Base Pay 
 SVP, Engineering (Joe Rauschmayer): $354,765 
 SVP, Human Resources (Carmine Renzulli): $300,000

 SVP, CTO (Ali Pourkeramati): $336,013 
 SVP, Legal (Nancy Richardson): $300,000 
 SVP, Business Unit (Tom Eby): $396,309 

Incentive compensation 
 See incentive compensation philosophy discussed in the CEO section. The philosophy here is the same. 
 The 2010 incentive compensation for the CEO’s direct reports works as follows: 
  

																	
	Base Pay    	 	X     	 	
Individual

Target

Bonus

Percentage
	 	X     	 	 Company Payout

Factor
	 	X     	 	 Individual

Payout

Factor
	 	=     	 	 Bonus
 Amount

 With the following definitions: 
 Base Pay: bonus period ending annual base pay rate 
 Individual Target
Bonus Percentage: defined below as recommended by CEO and approved by Compensation Committee 
 Company Payout Factor:
defined from table below which is a function of revenue and operating margin as recommended annually by the CEO and approved by the BOD/Compensation Committee 
 Individual Payout Factor: These are both objective and subjective factors considered based on predetermined goals and objectives established by the CEO for each NEO and approved by the Compensation
Committee and can affect the calculated performance bonus by as much as 50% down or 50% up with the stipulation that the total combined bonuses of the NEOs is a zero sum (i.e. assuming the same base pay, if one NEO received 125%, one other would
receive 75% to offset 

  
 

 

			
		  	Page 13

 
the addition). See Exhibit A for Spansion Corporate goals and Exhibit B for the individual goals and objectives for each CEO direct report. 

The target incentive compensation percentage for the CEO’s direct reports in fiscal 2010 is as follows: 

SVP, Engineering (Joe Rauschmayer): 60% 
 SVP, Human Resources (Carmine Renzulli): 60% 
 SVP, CTO (Ali Pourkeramati): 60%

 SVP, Legal (Nancy Richardson): 60% 
 SVP, Strategy & Communications (Tom Eby): 60% 
 The above percentages apply against base
pay based on achievement of the 2010 Budget as follows (100% equates to the CEO’s direct reports receiving 100% of his/her targeted percentage of base pay): 
 Incentive Compensation Matrix 
  

																									
	 	 	 	 	 	 	Revenue (M$)
	 	 	 	 	 	 	< $1,100	 	$1,100	 	$1,125	 	$1,150	 	$1,175	 	$1,200	 	$1,275	 	$1,350	 	$1,425	 	$1,500
	 	 	 	 	 	 	< -8%	 	-8%	 	-6%	 	-4%	 	-2%	 	0%	 	6%	 	13%	 	19%	 	25%
	

 	 	16.90%	 	22%	 	0%	 	120%	 	130%	 	140%	 	150%	 	160%	 	170%	 	180%	 	190%	 	200%
	 	16.15%	 	16%	 	0%	 	110%	 	119%	 	128%	 	136%	 	145%	 	155%	 	165%	 	175%	 	185%
	 	15.40%	 	11%	 	0%	 	100%	 	108%	 	115%	 	123%	 	130%	 	140%	 	150%	 	160%	 	170%
	 	14.65%	 	5%	 	0%	 	90%	 	96%	 	103%	 	109%	 	115%	 	125%	 	135%	 	145%	 	155%
	 	13.90%	 	0%	 	0%	 	80%	 	85%	 	90%	 	95%	 	100%	 	110%	 	120%	 	130%	 	140%
	 	13.65%	 	-2%	 	0%	 	73%	 	78%	 	83%	 	88%	 	93%	 	103%	 	113%	 	123%	 	135%
	 	13.40%	 	-4%	 	0%	 	65%	 	70%	 	75%	 	80%	 	85%	 	95%	 	105%	 	115%	 	130%
	 	13.15%	 	-5%	 	0%	 	58%	 	63%	 	68%	 	73%	 	83%	 	93%	 	103%	 	113%	 	125%
	 	12.90%	 	-7%	 	0%	 	50%	 	55%	 	63%	 	70%	 	80%	 	90%	 	100%	 	110%	 	120%
	 	< 12.9%	 	< -7%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%

 Note: Company payout factor is capped at 200%, revenue and operating margin is measured as
follows: 
  

	 	•	 	 Revenue refers to sales generated from all Spansion’s products and services as reported in Spansion’s pro-forma P&L. Pro-forma
adjustments to GAAP revenue would include: 

  

	 	•	 	 Add back of deferred revenue lost due to fresh start accounting; and 

 

	 	•	 	 Reduction of revenue from companies acquired during fiscal 2010. 

 

	 	•	 	 Operating Margin is derived from Operating Income divided by Revenue (as defined above). Operating Income refers to Spansion’s earnings
before interest income/expense, other income/expense, taxes and extraordinary items as reported in Spansion’s pro-forma P&L. Pro-forma adjustments to GAAP Operating Income would include: 

 

	 	•	 	 Revenue adjustments; and 

  

	 	•	 	 Expense adjustments indicated on next page. 

  

	 	•	 	 Elimination of bankruptcy-related reorganization, restructuring, and any other applicable costs, including any items identified as such in the 2010
Annual Budget; 

  

	 	•	 	 Elimination of any other fees or bonuses that are required for or upon the company’s successful emergence from Chapter 11 bankruptcy;

  

	 	•	 	 Adjustment for Spansion Japan or Spansion Nihon KK related payments or expenses, settlement, or other such activities 

 

	 	•	 	 Adjustments for changes in the carrying costs of assets and depreciation levels due to fresh start accounting, including but not limited to inventory,
property and equipment, and intangibles; 

  

	 	•	 	 Adjustments for changes in the liabilities due to fresh start accounting, including but not limited to market valuation of debt, capital leases, and
other such items; 

  

	 	•	 	 Adjustment for change in expenses due to equity grants (valuation, vesting, etc) 

 

	 	•	 	 Elimination of costs and expenses from companies acquired during fiscal 2010 and any administrative costs associated with board-approved transactions.

  
 

 

			
		  	Page 14

	 	•	 	 Elimination of any expenses or credits recorded on unconventional line items in GAAP Operating Income due to unforeseen accounting situations (e.g.,
sort reserve, claims agent, gain on extinguishment of debt, ARS, etc) 

 Performance-Based Restricted
Stock Units 
 The initial grant of performance-based restricted shares for the CEO direct reports are as follows: 

 

					
	  	  	2010 Initial Grant	 
	 SVP, Engineering (Joe Rauschmayer)
	  	 	66,206	  
	 SVP, Human Resources (Carmine Renzulli)
	  	 	49,935	  
	 SVP, CTO (Ali Pourkeramati)
	  	 	75,801	  
	 SVP, Legal (Nancy Richardson)
	  	 	49,935	  
	 SVP, Business Unit (Tom Eby)
	  	 	66,206	  

 The key elements of the performance-based restricted stock unit program are: 

 

	 	•	 	 Performance-based restricted stock units will vest (though not necessarily be earned) on an annual basis: 25% a year beginning with the year ending
December 31, 2010. On the final trading day of January of the following year the actual number of shares earned will be awarded based on the achieved financials (“Payout Factor”) as defined in the Restricted Stock Units
Earned Matrix on Page 6. The period for Company performance measurement will be the Company’s fiscal year. 

  

	 	•	 	 Each participant will have a target number of shares for each year of the plan. This is referred to as the “Base Number of Shares”. The Base
Number of shares equal to 25% of the total number of shares awarded. For example, if the executive was awarded 100,000 shares in year 1, his year one Base Number of Shares would be 25,000. And, if the executive was awarded 50,000 additional shares
in year 2, the executive’s 2nd year Base Number of
Shares would be 62,500 (50,000 for the year one grant plus 12,500 for the year two grant). 

  

	 	•	 	 If the Company’s Payout Factor equals the 100% figure in the matrix, then the participant will earn 100% of the Base Number of Shares for the
year. 

  

	 	•	 	 If the Company’s Payout Factor falls below the 100% payout level in any year, then the percentage achieved will be applied to the Base Number of
Shares with the additional, unearned shares deferred to the subsequent year (“Carry Forward” number of shares). 

  

	 	•	 	 If the Company’s Payout Factor exceeds the 100% payout level in any year, then the Payout Factor will be applied to the Base Number of Shares. Any
shares earned in excess of the Base Number of Shares will be funded by the carry forward shares. If an insufficient number of Carry Forward shares exists excess shares will be accelerated from the furthest year out (i.e. if in 2010 more than 100% of
the Base number of Shares are earned, then the excess shares are accelerated from the Base Number of Shares scheduled to vest in 2013). 

  

	 	•	 	 Upon acceleration, the Base Number of Shares from which the shares were accelerated shall be reduced by the corresponding number of accelerated shares.

  

	 	•	 	 No participant may earn additional shares over the initial number of shares granted; if performance in a given year warrants acceleration but the Base
Number of Shares in subsequent years have already been depleted, no acceleration occurs. 

  

	 	•	 	 Any Carry Forward shares not used to fund above target payouts are carried forward to the subsequent year 

  
 

 

			
		  	Page 15

	 	•	 	 Carry Forward shares not earned at the conclusion of the final performance period will be forfeited. 

Note: the 2010 performance-based restricted stock unit program truly has RSUs at risk. Even though on the “upside”, RSUs
accelerate, no “additional” shares over the initial grant can be earned. If the financial performance goals are not achieved in any given year, shares are pushed to the following year, but there is no guarantee that the shares push out
will ever be earned, particularly since any unearned shares are forfeited after the four-year vesting period. 

Performance-Based Restricted Stock Units Earned Matrix 

 

																									
	 	 	 	 	 	 	Revenue (M$)
	 	 	 	 	 	 	< $1,100	 	$1,100	 	$1,125	 	$1,150	 	$1,175	 	$1,200	 	$1,275	 	$1,350	 	$1,425	 	$1,500
	 	 	 	 	 	 	< -8%	 	-8%	 	-6%	 	-4%	 	-2%	 	0%	 	6%	 	13%	 	19%	 	25%
	

 	 	16.90%	 	22%	 	50%	 	120%	 	130%	 	140%	 	150%	 	150%	 	150%	 	150%	 	150%	 	150%
	 	16.15%	 	16%	 	50%	 	110%	 	119%	 	128%	 	136%	 	145%	 	150%	 	150%	 	150%	 	150%
	 	15.40%	 	11%	 	50%	 	100%	 	108%	 	115%	 	123%	 	130%	 	140%	 	150%	 	150%	 	150%
	 	14.65%	 	5%	 	50%	 	90%	 	96%	 	103%	 	109%	 	115%	 	125%	 	135%	 	145%	 	150%
	 	13.90%	 	0%	 	50%	 	80%	 	85%	 	90%	 	95%	 	100%	 	110%	 	120%	 	130%	 	140%
	 	13.65%	 	-2%	 	50%	 	73%	 	78%	 	83%	 	88%	 	93%	 	103%	 	113%	 	123%	 	135%
	 	13.40%	 	-4%	 	50%	 	65%	 	70%	 	75%	 	80%	 	85%	 	95%	 	105%	 	115%	 	130%
	 	13.15%	 	-5%	 	50%	 	58%	 	63%	 	68%	 	73%	 	83%	 	93%	 	103%	 	113%	 	125%
	 	12.90%	 	-7%	 	50%	 	50%	 	55%	 	63%	 	70%	 	80%	 	90%	 	100%	 	110%	 	120%
	 	< 12.9%	 	< -7%	 	50%	 	50%	 	50%	 	50%	 	50%	 	50%	 	50%	 	50%	 	50%	 	50%

 Stock Options 
 Initial grant of stock options to be granted at market for the CEO’s direct reports are as follows: 
  

					
	 	  	2010 Initial Grant	 
	 SVP, Engineering (Joe Rauschmayer)
	  	 	122,980	  
	 SVP, Human Resources (Carmine Renzulli)
	  	 	91,794	  
	 SVP, CTO (Ali Pourkeramati)
	  	 	122,980	  
	 SVP, Legal (Nancy Richardson)
	  	 	91,794	  
	 SVP, Strategy & Communications (Tom Eby)
	  	 	122,980	  

 The shares will vest as follows: 33.3% after one year and then monthly thereafter – 3 year vesting schedule.

 The plan would be to receive a onetime cash bonus that is on top of and in addition to the incentive compensation plan
outlined above in the amounts of $266,053 for Joe Rauschmayer, $198,584 for Carmine Renzulli, $266,053 for Ali Pourkeramati, $198,584 for Nancy Richardson, and $266,053 for Tom Eby. This would be paid on or about November 1, 2010 and May 1, 2011 in equal installments. 

  
 

 

			
		  	Page 16

 Exhibit A 

  
 

 

			
		  	Page 17

 

 
 Exhibit B 

  
 

 

			
		  	Page 18

 CEO, NEOs and Direct Reports Goals & Objectives for 2010 

Randy Furr: 
  

	1.	Get out of Chapter 11 - achieve a combination of the most advantageous plan of reorganization in the shortest possible time and complete the financial reporting, to
include Fresh Start Account, in a timely manner that would allow Spansion to list and trade its new common stock with a national exchange within 90 days emergence from Chapter 11. 

 

	2.	Hit or exceed the 2010 budget and continuously review and bring to executive management’s attention ways to improve Company profits to include increasing new sales
as well as reducing expenses. 

  

	3.	Improve the Company’s product cost system to include product costing and inventory costing/management. 

 

	4.	Identify potential improvements and make recommendations on how Sales and Operations can improve the match between what is forecasted “supply” and what is
sold “demand”. The goal here will be both to improve margin in products sold as well as minimize any excess and/or obsolete inventory. 

  

	5.	Develop a long term strategy (3 to 5 years) with respect to Spansion’s final manufacturing operations 

 

	6.	Drive down Spansion’s full year average commodity cost (all commodities, not just selected commodities) by an amount equal to or greater than the Company’s
full year average ASP decline. 

 Jim Reid: 

 

	1.	Revenue Goal - Achieve $919M in Embedded Revenue and $276M in Mobility to hit the $1,210M Corporate Plan while meeting the targeted expense budget

  

	2.	Process Goal - Acquire eight new market segment leading customers by December 31, 2010 

 

	3.	Market Share - Increase share of Embedded NOR market from 31% in Q4 2009 to 36% in Q4 2010 as measured by WSTS, while achieving our profitability goals

  

	4.	Product Goal - Release eight new NOR products to M8.0 by December 31, 2010. 

 

	5.	Margin Goal – Achieve 37% average gross margin and 13.9% operating margin for 2010 

  
 

 

			
		  	Page 19

	6.	Drive migration from 110nm and larger technologies to 90nm and smaller technologies to a point where 50% (up from approximately 25% at the beginning of the year) of the
company’s products are 90nm and smaller by December 31, 2010 

 Ahmed Nawaz: 

 

	1.	Achieve $919M in Embedded Revenue and $276M in Mobility to hit the $1,210M Corporate Plan while meeting the targeted expense budget 

 

	2.	Market share goal – Increase share of Embedded NOR market from 31% in Q4 2009 to 36% in Q4 2010 as measured by WSTS, while achieving our profitability goals

  

	3.	Increase Global Distribution Market share to 50% by Year-end while consolidating Channel Partners from 11 to 9 

 

	4.	5% improvement in overall satisfaction score from the “CSat Survey” of April 2010 versus December 2010 

 

	5.	Seamless Integration of NSKK into Spansion and gain 5% Embedded market share in Japan 

 

	6.	New Sales Leadership in China (VP Sales, Sales Dir. in Shenzhen), Japan (President of NSKK and VP Marketing) and Sales Mgr in India by Mid-Year

  

	7.	Staff and operationalize the New Eco-System Development (EDO) Group. Develop OEM and Distribution Chipset Reference Collateral by Sep 30. Increase SalesForce.com
reporting of Chipset/Flash Pairing 100% by 6/30 

  

	8.	Drive migration from 110nm and larger technologies to 90nm and smaller technologies to a point where 50% (up from approximately 25% at the beginning of the year) of the
company’s products are 90nm and smaller by December 31, 2010 

 Joe Rauschmayer: 

 

	1.	Support the revenue plan of $1.2B, with cost maintained to drive $437M in Gross Margin and $271M of EBITDA. 

 

	2.	Manage expenses for each area to meet the budget, with Fab 25 at $201M, OCOGS at $18.2M, R&D at $21.1M and SG&A at $9.3M. 

 

	3.	Drive the release of 8 new products through M8.0 on schedule (dated 3/31/10) and 4 internal fab transfers to M10. All products to be compliant to the PLC procedures.

  

	4.	Improve Quality by driving CCARs/million shipped from 5.0 to 3.3, by December, 2010. 

  
 

 

			
		  	Page 20

	5.	Ramp WXIC for 65 nm at budgeted indices by December 24, 2010. Choose a 45 nm foundry by April 15, 2010, begin 45 nm transfer by July 1, 2010, and achieve
milestones necessary to begin production by December 30, 2011. 

 Carmine Renzulli: 

 

	1.	Design and deliver a leadership development program (management level) by December 2010 which focus’ on competencies critical for successful leadership and
development in a high-performance organization. 

  

	2.	Rewards and Recognition-deliver a reward and recognition program that recognizes high-performance, alignment with the business objective, s and reinforces the corporate
culture and values within three weeks after our emergence from bankruptcy. 

  

	3.	Ensure the proper balance is achieved between full time and part time headcount within sixty days of emergence from bankruptcy and is maintained throughout the year.

  

	4.	Well-developed succession plan for Vice Presidents and Directors worldwide by December 31, 2010. 

Ali Pourkeramati: 
  

	1-	PLC initiatives and PMO: Creating a PMO function to support and maintain PLC and UMS by 6/1/2010. 

 

	2-	Technology Development: Qualify 65nm technology in WXIC by 8/6/10 and Fab25 by 12/31/10, Transferring 43nm NAND technology to Elpida and qualify by 3/31/11.

  

	3-	Product Design: Release of XGL-R and XFL-R products to M6.0 by 12/31/10, release 8 new products to M8.0 by 12/31/10 

 

	4-	Embedded Flash: Preparing new “Future Growth” products for Phase 0 by 12/31/10 

 

	5-	Spansion Flash file System: Release to market Spansion Flash File Software by 12/31/10 

 

	6-	Support the revenue and managing R&D Budget: Support the revenue plan of $1.2B and 13.9% operating margin by keeping R&D budget below 10% of revenue.

  
 

 

			
		  	Page 21

 Nancy Richardson: 
  

	1.	Ensure that Spansion is timely listed on a national stock exchange within 90 days of emergence from Chapter 11 

 

	2.	Bring home a win in the ITC investigation against Samsung by either securing a determination in Spansion’s favor by the Administrative Law Judge (ALJ) or signing a
settlement worth more than $85M to Spansion before the ALJ rules 

  

	3.	 Reevaluate existing corporate governance and SEC compliance processes and programs and implement changes that the make the process more efficient and
effective by June 30, 2010

  

	4.	I will obtain a Green Belt in Kaizen before year end 

 Tom Eby: 
  

	1.	Corporate Development - Manage and as appropriate extend the Elpida relationship to support the following objectives: 1. Implementation of existing agreements
and completion of a MB-NAND foundry agreement in a timeframe consistent with the MB-NAND PLC schedule. 2. Completion of a 45nm NOR foundry agreement consistent with the timing identified in the 45nm platform stage 0 exit. Close Winbond agreement no
later than 3/31/10. Support implementation of agreement to enable small sector SPI product shipments consistent with the PLC schedule. Evaluate and, as appropriate, negotiate and close additional transactions in a timely manner in support of the
strategic plan, including corporate development support for “flash superset” products. 

  

	2.	Corporate Strategy - Work with the CFO to support completion of the strategic plan by June 25, 2010, and more specifically to drive alignment regarding
critical elements of our strategy including: (i) The foundation of our customer/market value proposition. (ii) How we will position the company effectively versus our competitors. (iii) The degree of diversification beyond “pure
memory” markets. 

  

	3.	Spansion Brand – Drive alignment among the EOC of Spansion’s key desired brand attributes by [4/30/10]. Leverage Spansion’s Chapter 11 emergence
to drive awareness of Spansion in areas including product, technology & thought leadership via PLC-aligned product introductions, white papers, documentation, segment-specific perspectives and ongoing customer and chipset design wins.
Baseline Spansion’s brand awareness / preference via a survey of customers, chipset and channel partners at least 50% of whom from Asia by [6/30/10]. Measure improvement in brand awareness / preference via updated survey completed by 12/31/10.
Comprehensiveness of brand survey and specific metrics for improvement will be a function of the affordability of the surveys. Complete revision of Website by 9/30/10. 

 

	4.	 Japan – Working with John Kispert, Ahmed Nawaz, and Carmine Renzulli, identify and have in place the leadership of Nippon Spansion K.K.
(NSKK) before the NSKK transaction closes. Drive necessary actions to ensure that NSKK is established and all other definitive agreements are closed and effective no later than 5/24/10. Drive agreement on the alignment between the NSKK organization
and the respective functional owners globally no later than the establishment of NSKK (5/24/10). Support reengagement with Japan customers to support an annual revenue run-rate >$300M no

  
 

 

			
		  	Page 22

	 	
later than Q3 2010. 

  
 

 

			
		  	Page 23

 Exhibit C 
 Incentive Plan Martix Details 
  

																									
	Bonus Payout Matrix
				
	 	 	 	 	 	 	Revenue (M$)
	

 	 		 		 	< $1,100	 	$1,100	 	$1,125	 	$1,150	 	$1,175	 	$1,200	 	$1,275	 	$1,350	 	$1,425	 	$1,500
	 		 		 	< -8%	 	-8%	 	-6%	 	-4%	 	-2%	 	0%	 	6%	 	13%	 	19%	 	25%
	 	16.90%	 	22%	 	0%	 	120%	 	130%	 	140%	 	150%	 	160%	 	170%	 	180%	 	190%	 	200%
	 	16.15%	 	16%	 	0%	 	110%	 	119%	 	128%	 	136%	 	145%	 	155%	 	165%	 	175%	 	185%
	 	15.40%	 	11%	 	0%	 	100%	 	108%	 	115%	 	123%	 	130%	 	140%	 	150%	 	160%	 	170%
	 	14.65%	 	5%	 	0%	 	90%	 	96%	 	103%	 	109%	 	115%	 	125%	 	135%	 	145%	 	155%
	 	13.90%	 	0%	 	0%	 	80%	 	85%	 	90%	 	95%	 	100%	 	110%	 	120%	 	130%	 	140%
	 	13.65%	 	-2%	 	0%	 	73%	 	78%	 	83%	 	88%	 	93%	 	103%	 	113%	 	123%	 	135%
	 	13.40%	 	-4%	 	0%	 	65%	 	70%	 	75%	 	80%	 	85%	 	95%	 	105%	 	115%	 	130%
	 	13.15%	 	-5%	 	0%	 	58%	 	63%	 	68%	 	73%	 	83%	 	93%	 	103%	 	113%	 	125%
	 	12.90%	 	-7%	 	0%	 	50%	 	55%	 	63%	 	70%	 	80%	 	90%	 	100%	 	110%	 	120%
	 	< 12%	 	< -7%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%
	
	Total Bonus Payout
													
	 	 	Target	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Plan Cost	 	 	 	Revenue (M$)
	

 	 	$31.1	 		 	< $1,100	 	$1,100	 	$1,125	 	$1,150	 	$1,175	 	$1,200	 	$1,275	 	$1,350	 	$1,425	 	$1,500
	 	16.90%	 		 	$0.0	 	$37.3	 	$40.4	 	$43.5	 	$46.6	 	$49.7	 	$52.8	 	$55.9	 	$59.0	 	$62.1
	 	16.15%	 		 	$0.0	 	$34.2	 	$36.9	 	$39.6	 	$42.3	 	$45.1	 	$48.2	 	$51.3	 	$54.4	 	$57.5
	 	15.40%	 		 	$0.0	 	$31.1	 	$33.4	 	$35.7	 	$38.1	 	$40.4	 	$43.5	 	$46.6	 	$49.7	 	$52.8
	 	14.65%	 		 	$0.0	 	$28.0	 	$29.9	 	$31.8	 	$33.8	 	$35.7	 	$38.8	 	$41.9	 	$45.1	 	$48.2
	 	13.90%	 		 	$0.0	 	$24.9	 	$26.4	 	$28.0	 	$29.5	 	$31.1	 	$34.2	 	$37.3	 	$40.4	 	$43.5
	 	13.65%	 		 	$0.0	 	$22.5	 	$24.1	 	$25.6	 	$27.2	 	$28.7	 	$31.8	 	$35.0	 	$38.1	 	$41.9
	 	13.40%	 		 	$0.0	 	$20.2	 	$21.7	 	$23.3	 	$24.9	 	$26.4	 	$29.5	 	$32.6	 	$35.7	 	$40.4
	 	13.15%	 		 	$0.0	 	$17.9	 	$19.4	 	$21.0	 	$22.5	 	$25.6	 	$28.7	 	$31.8	 	$35.0	 	$38.8
	 	12.90%	 		 	$0.0	 	$15.5	 	$17.1	 	$19.4	 	$21.7	 	$24.9	 	$28.0	 	$31.1	 	$34.2	 	$37.3
	 	< 12%	 		 	$0.0	 	$0.0	 	$0.0	 	$0.0	 	$0.0	 	$0.0	 	$0.0	 	$0.0	 	$0.0	 	$0.0
	
	Bonus as % of Operating Profit
													
	 	 	Target	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Plan Cost	 	 	 	Revenue (M$)
	

 	 	$31.1	 		 	< $1,100	 	$1,100	 	$1,125	 	$1,150	 	$1,175	 	$1,200	 	$1,275	 	$1,350	 	$1,425	 	$1,500
	 	16.90%	 		 	0%	 	20.1%	 	21.2%	 	22.4%	 	23.5%	 	24.5%	 	24.5%	 	24.5%	 	24.5%	 	24.5%
	 	16.15%	 		 	0%	 	19.2%	 	20.3%	 	21.3%	 	22.3%	 	23.2%	 	23.4%	 	23.5%	 	23.6%	 	23.7%
	 	15.40%	 		 	0%	 	18.3%	 	19.3%	 	20.2%	 	21.0%	 	21.9%	 	22.2%	 	22.4%	 	22.7%	 	22.9%
	 	14.65%	 		 	0%	 	17.4%	 	18.1%	 	18.9%	 	19.6%	 	20.3%	 	20.8%	 	21.2%	 	21.6%	 	21.9%
	 	13.90%	 		 	0%	 	16.3%	 	16.9%	 	17.5%	 	18.1%	 	18.6%	 	19.3%	 	19.9%	 	20.4%	 	20.9%
	 	13.65%	 		 	0%	 	15.0%	 	15.7%	 	16.3%	 	17.0%	 	17.5%	 	18.3%	 	19.0%	 	19.6%	 	20.5%
	 	13.40%	 		 	0%	 	13.7%	 	14.4%	 	15.1%	 	15.8%	 	16.4%	 	17.3%	 	18.0%	 	18.7%	 	20.1%
	 	13.15%	 		 	0%	 	12.4%	 	13.1%	 	13.9%	 	14.6%	 	16.2%	 	17.1%	 	17.9%	 	18.7%	 	19.7%
	 	12.90%	 		 	0%	 	10.9%	 	11.8%	 	13.1%	 	14.3%	 	16.1%	 	17.0%	 	17.8%	 	18.6%	 	19.3%
	 	< 12%	 		 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%	 	0%

  
 

 

			
		  	Page 24Form of Performance Share Award (Performance and Time Based RSU)

 Exhibit 10.1 
 ABIOMED, Inc. 
 Performance Share Award Agreement 

(Performance and Time Based RSUs) 
 This Performance Share Award Agreement (this “Agreement”) is made effective as of
                     (the “Grant Date”), between ABIOMED, Inc. (the “Company”), and
                     (the “Employee”), pursuant to the Company’s 2008 Stock Incentive Plan, as it may be amended from time to
time (the “Plan”). This Agreement is expressly subject to all of the terms and conditions contained in the Plan, which is hereby incorporated herein by reference. In the event that any of the terms and conditions contained in this
Agreement are inconsistent with the Plan, the terms of the Plan shall control. All capitalized terms not defined in this Agreement have the meanings specified in the Plan. 
 WITNESSETH: 
 1. Performance and Time Based Restricted Stock Units.
The maximum number of shares of common stock of the Company (“Stock”) eligible for issuance under this Agreement shall be                  shares of
Stock (the “Maximum Shares”). The Stock shall only be issuable to the extent that the below criteria are met so that they become Performance Shares, and then only to the extent that the Employee meets the time-based vesting
conditions set forth below. The Maximum Shares shall become “Performance Shares” as follows: [Describe performance based vesting conditions.] 
 On each of the following dates (each, a “Vesting Date”), and provided that the Employee is employed by the Company on such Vesting Date, the Employee shall be entitled to receive a grant
of Stock as set forth below: [Describe time based vesting conditions.] 

 Certificates for the Stock issued as set forth above shall be issued as soon as practicable following each
Vesting Date, but in no event later than thirty days following each Vesting Date 
 2. Termination of Employment. The
Employee understands and agrees that if the Employee ceases to be an employee of the Company or a subsidiary of the Company at any time for any reason, whether because of any action of the Company or the Employee, the death or incapacity of the
Employee or otherwise (the date of such termination of employment, the “Termination Date”), the Employee’s only rights under this Agreement shall be the right to receive Stock, if any, that was to be issued (but was not yet
issued) pursuant to a Vesting Date that was reached prior to the Termination Date, and the Employee shall have no right to the issuance of Stock with respect to any Vesting Date that is reached after the Termination Date. 

3. Lock-Up Agreement. The Employee agrees that upon the request of the Company or the managing underwriter(s) of any offering of
securities of the Company that is the subject of a registration statement filed under the Securities Act of 1933, as amended, for a period of time (not to exceed 180 days, plus such additional number of days (not to exceed 35) as may reasonably be
requested to enable the underwriter(s) of such offering to comply with Rule 2711(f) of the Financial Industry Regulatory Authority or any amendment or successor thereto) from the effective date of the registration statement under the Act for such
offering, the Employee will not sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any Stock issued pursuant to this Agreement, without the prior written consent of the Company and such underwriters.

 4. Discretion of the Committee. Unless otherwise provided, the Committee shall make all determinations required to be
made hereunder, including determinations required to be made by the Company, which shall include determinations of Fiscal 2012 Revenue and the calculation of the number of Performance Shares hereunder, and shall interpret all provisions of this
Agreement, as it deems necessary or desirable, in its sole and unfettered discretion. Such determinations and interpretations shall be binding and conclusive as to the Company and the Employee. If there shall be no Compensation Committee of the
Corporation’s Board of Directors or if the Board of Directors shall determine that the Board of Directors shall administer this Agreement, all references herein to the Committee shall be deemed references to the Board of Directors. 

5. Withholding Taxes. The Employee acknowledges and agrees that the Company has the right to deduct from payments of any kind
otherwise due to the Employee any federal, state or local taxes of any kind required by law to be withheld with respect to the issuance of Stock pursuant to Section 1 above, and understands that the Company may refuse to issue any Stock
pursuant to this Agreement unless arrangements satisfactory to the Company have been reached with respect to the payment of such taxes. 
 6. No Rights to Employment. Nothing contained in this Agreement shall be construed as giving the Employee any right to continued employment with the Company, or to establish or maintain an on-going
business relationship with the Company. The Employee acknowledges and agrees that the transactions contemplated hereunder do not constitute an express or implied promise of continued employment for any period, or at all. 

  
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 7. No Rights as a Shareholder. The Employee shall have no rights as a shareholder of
the Company as a result of this Agreement unless and until shares of Stock have been issued to the Employee pursuant to Section 1 above. 
 8. Notices. Any notices required to be given under this Agreement shall be sufficient if in writing and if sent by certified mail, return receipt requested, and addressed as follows: 

if to the Corporation: 
 ABIOMED, Inc. 
 22 Cherry Hill Drive 

Danvers, Massachusetts 01923 
 Attn: Chief Financial Officer 
 if to the Employee, at the address of the Employee
set forth in the Company’s records or to such other address as either party may designate under the provisions hereof. 

9. Applicable Law. All rights and obligations under this Agreement shall be governed by the laws of The Commonwealth of
Massachusetts, without regard to its conflicts of law principles. 
 IN WITNESS WHEREOF, the parties have executed this
Agreement as an instrument under seal effective as of the date written on the first page of this Agreement. 
  

	
	ABIOMED, Inc.
	
	  

	By: Michael R. Minogue
	Its: President and Chief Executive Officer
	
	EMPLOYEE:
	
	  

	Print name:
	
	Acceptance date:

  
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