Document:

Transition Services Agreement

 Exhibit 10.3 
 TRANSITION SERVICES AGREEMENT 
 This TRANSITION SERVICES
AGREEMENT (this “Agreement”) is made and entered into as of the Closing Date between Powertech Technology Inc., a company organized under the laws of the Republic of China (Taiwan)
(“Buyer”), and Spansion LLC, a Delaware limited liability company (“Seller”). 
 A. Buyer and Seller have
entered into (i) that certain Asset and Share Purchase Agreement dated August 21, 2009 (the “Purchase Agreement”), pursuant to which Buyer purchased the equity of Spansion Holdings (Singapore) Pte. Ltd. (the
“Singapore Subsidiary”) and purchased certain specified assets and assumed certain specified liabilities from Seller; and (ii) that certain Supply Agreement of even date herewith (“Supply Agreement”), pursuant
to which Buyer will provide certain wafer assembly, marking, packaging and testing services to Seller; 
 B. In connection with the Purchase
Agreement, Buyer desires that Seller provide Buyer with certain transition services at and following the Closing Date, as more fully set forth herein. 
 NOW, THEREFORE, in consideration of the mutual promises of the parties, and of good and valuable consideration, it is agreed by and between the parties as follows: 
 1. DEFINITIONS. The defined terms used in this Agreement shall have the meanings set forth herein or as defined in the text
below. Capitalized terms used herein and not otherwise defined have the meanings given to such terms in the Purchase Agreement. 
 (a)
“Buyer” shall mean and expressly refer to Powertech Technology Inc. and its designated subsidiaries, including any corporation, limited liability company, partnership or other entity or organization of which Powertech Technology
Inc. (either alone or through or together with any other subsidiary of Powertech Technology Inc.) owns, directly or indirectly, a majority of the stock or other equity interests having ordinary voting power to elect a majority of the board of
directors or other persons performing similar functions of such entity or organization. 
 (b) “Confidential Information”
means any information disclosed by one party to the other in connection with this Agreement, whether in electronic, written, graphic, oral, machine readable or other tangible or intangible form, that is marked or identified at the time of disclosure
as “Confidential” or “Proprietary” or in some other manner so as to clearly indicate its confidential nature, or that would otherwise reasonably be deemed confidential or proprietary by the recipient. 
 (c) “Facilities” means the Buyer facilities which may be required for Seller to perform Services. 
 (d) “G&A Services” means the services associated with certain general and administrative activities, specified in
Exhibit A. 
 (e) “IT Services” means the services specified in Exhibit B. 

 (f) “Pass Through Expenses” means the reasonable and out-of-pocket expenses incurred by
Seller, but not including any overhead costs, Seller profits or other markups. 
 (g) “Seller Hourly Fee” means (a) for
the period beginning on the Effective Date and ending six (6) months after the Closing Date, an hourly fee amount to be determined by mutual written agreement by the parties for Services requested by Buyer that exceed a reasonable or pre-agreed
allotment of Seller personnel time; and (b) after such six (6) month period, an amount equal to the fully burdened cost of Seller for the time of the applicable employee, unless a different hourly rate is specified for a particular Service
in the Exhibits. 
 (h) “Services” means collectively the G&A Services, the IT Services and any Additional Services (as
defined below in Section 2(b)). 
 2. SERVICES. 
 (a) Services. During the term of this Agreement, Seller shall provide, and as necessary shall cause its Affiliates to provide, Buyer with the
(i) the G&A Services set forth in Exhibit A, and (ii) the IT Services set forth in Exhibit B. 
 (b) Additional
Services. In the event that Buyer requests that Seller provide additional services not otherwise included within the scope of the existing Services specified in this Agreement (the “Additional Services”), the parties will
promptly negotiate in good faith regarding (i) whether such Additional Services should be added to this Agreement, (ii) the terms and conditions of Exhibits to this Agreement that would set forth such Additional Services, and
(iii) any fees and allocation of expenses that may be paid by Buyer for such Additional Services. Seller will not be obligated to provide any Additional Services unless the parties so agree in writing. 
 (c) Service Levels; Quality of Services. Buyer acknowledges that the Services to be performed by the Seller are intended to be minimal. Buyer
further acknowledges that Seller is not in the business of providing services to third parties and is entering into this Agreement only as an accommodation to Buyer in connection with the Purchase Agreement. Seller will use commercially reasonable
efforts to perform, and as necessary will cause its Affiliates to perform, the Services with approximately the same level of skill, quality, care, timeliness, and cost-effectiveness as such services, functions, and tasks were performed by Seller to
the applicable business units during the period immediately prior to the Closing Date, taking into account the transfer of employees to Buyer as part of the transactions contemplated by the Purchase Agreement. 
 (d) Remediation. Buyer agrees that the remedies available to it in the event of failure of Seller to provide the Services in accordance with this
Agreement should be addressed to correcting problems that resulted in such failure rather than to penalizing Seller, and therefore no service credits, rebates or refunds will be awarded for a failure to provide Services in accordance with applicable
service levels. In recognition of this, Buyer’s sole and exclusive remedy and Seller’s sole and exclusive obligation for any such failures shall be the remediation activities specified in the Exhibits or as set forth in this
Section 2(d). Unless otherwise specified 

  

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in an Exhibit, in the event Seller does not provide a particular Service as specified in the applicable Exhibit, then Seller agrees that it will re-perform
the applicable Service or will assign additional personnel or subcontractors to perform the require Service as soon as reasonably practicable thereafter. 
 (e) Expenses. Except as otherwise provided in this Agreement, each party will bear its own expenses in connection with their obligations under this Agreement. 
 (f) Subcontractors. The Services may, at Seller’s sole discretion, be provided in whole or in party by Affiliates of Seller or by third-party
subcontractors selected by Seller. 
 (g) Location of Services Provided. Seller shall provide the Services to Buyer from
locations of its own choice unless Services are required to be performed at the Facilities or other such location identified in the Exhibits. 
 3.
MODIFICATION OF SERVICES. Seller may, at any time, and with reasonable notice to Buyer, modify the manner in which any Services are provided to address any reasonable concerns that
Seller may have regarding such matters as confidentiality, expenses, system efficiency and the like; provided that the quality and the timeliness of the Services are not materially adversely affected. Without limiting the foregoing, the parties
acknowledge that the scope or characteristics of the Services may change during the term of this Agreement as Buyer completes its transition from dependence on Seller’s Services. The parties agree to use reasonable modification procedures to
notify the other of intended material modifications regarding the Services and the potential effects of such changes (“Modification Procedures”). A party requesting a modification of Services will give the other party written notice
of the proposed modification, as well as the anticipated effects of the modification. The parties will discuss in good faith whether to implement the proposed modification; provided, however, that no modification will be implemented in the absence
of written agreement between the parties to adopt the change. 
 4. MANAGEMENT.  
 (a) Seller Manager. Seller will appoint a Seller employee (the “Seller Manager”) who shall (i) have overall, day-to-day
responsibility during the term of this Agreement for managing and coordinating the delivery of the Services; (ii) subject to the supervision of Seller management, be authorized to act for and on behalf of Seller with respect to all matters
relating to this Agreement, and (iii) be the primary contact with the Buyer Manager (as defined below). The Seller Manager or the Seller Manager’s designees will coordinate and consult with the Buyer Manager. Seller may, at its discretion,
and upon written notice to Buyer, designate other or additional individuals to serve in these capacities during the term of this Agreement. 
 (b) Buyer Manager. During the term of this Agreement, Buyer will appoint an employee (the “Buyer Manager”) who shall (i) have overall, day-to-day responsibility during the term of this Agreement for managing and
coordinating the receipt of the Services; (ii) subject to the supervision of Buyer management, be authorized to act for and on behalf of Buyer with 

  

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respect to all matters relating to this Agreement, and (iii) be the primary contact with the Seller Manager. The Buyer Manager or the Buyer
Manager’s designees will coordinate and consult with the Seller Manager. Buyer may, at its discretion, designate other or additional individuals to serve in these capacities during the term of this Agreement. 
 5. DISPUTE RESOLUTION. The Buyer Manager and the Seller Manager will resolve any disputes between the parties arising
out of this Agreement. If the Buyer Manager and Seller Manager cannot resolve a dispute, then they will escalate as necessary to resolve the dispute. 
 6. PERSONNEL. 
 (a) Right to Designate and Change Seller Personnel. Seller
will make available such Seller employees and agents (“Seller Personnel”) as will reasonably be required to provide the Services. Seller may, in its sole discretion, designate which Seller Personnel will perform the Services. Seller
also may, in its sole discretion, remove and replace any Seller Personnel at any time or designate any of its Affiliates or a subcontractor at any time to perform the Services. Seller is not obligated to hire any additional employees or maintain the
employment of any specific employee. 
 (b) Responsibility for Seller Personnel. All Seller Personnel providing Services under this
Agreement will be deemed to be employees or representatives solely of Seller (or its Affiliates) for purposes of all compensation and employee benefits and not to be employees or representatives of Buyer. As between the parties, Seller (or its
Affiliates) will be solely responsible for payment of (i) all income, disability, withholding, and other employment taxes and (ii) all medical benefit premiums, vacation pay, sick pay, or other fringe benefits for any employees, agents, or
contractors of Seller who perform Services. 
 7. TERM AND TERMINATION. 

 (a) Term. The term of this Agreement shall commence on the Closing Date and shall continue twelve (12) months from the Closing
Date (the “Term”). The Agreement may be terminated earlier as set forth in this Section 7. 
 (b) Early Termination
of Services. Buyer may terminate any or all of the Services upon thirty (30) days prior written notice to Seller. Buyer will reimburse Seller for the reasonable termination costs incurred by Seller resulting from Buyer’s early
termination of such services. Seller will use commercially reasonably efforts to mitigate such termination costs. 
 (c) Termination of
Agreement for Cause. This Agreement may be terminated by either party if the other party materially breaches any provision of this Agreement, and such material breach or default has not been cured within thirty (30) days after such
breaching party’s receipt of notice of such a material breach or default from the non-breaching party. 
 (d) Effect of
Termination. Immediately following the expiration or termination of this Agreement, Seller shall cease, or cause its Affiliates or subcontractors to cease, providing the Services. Immediately following the termination or expiration of this
Agreement or the termination of any particular Service, the Seller shall use commercially reasonable efforts to provide to Buyer consultation, assistance and information as reasonably 

  

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requested by Buyer in order to make alternate arrangements to perform or obtain from third parties comparable services with respect to the applicable
Service(s). Sections 7, 8, 9, 10, 11, 12, and 13 shall survive any expiration or termination of this Agreement. 
 8. FEES
AND PAYMENT. 
 (a) Fees. Buyer will not be required to pay Seller any fees for
the Services unless otherwise set forth on the Exhibits or as agreed to for a particular Additional Service or, if applicable, a modification of Services. Notwithstanding the foregoing, Buyer agrees to pay Seller the applicable Seller Hourly Fees
for Services performed under this Agreement in excess of forty (40) hours per week per employee prior to the six month anniversary of this Agreement, or for any time accrued after six (6) months from the Closing Date. 
 (b) Expenses. Except as expressly set forth herein, Buyer shall be responsible for all Pass Through Expenses incurred by Seller (or its
Affiliates, as applicable) in performing the Services and invoiced to Buyer in accordance with this Section 8, provided that Seller notify Buyer in advance of such expenses. 
 (c) Payment; Invoices. Unless the parties otherwise agree, amounts payable hereunder will be billed and paid in U.S. dollars. Within thirty
(15) days after the end of each fiscal month, Seller will submit one (1) invoice to Buyer for any amounts payable by Buyer hereunder for the previous month. Each invoice will be accompanied by such supporting documentation as Buyer
reasonably requests. Buyer will pay all amounts due pursuant to this Agreement within thirty (30) days after the receipt of the applicable invoice from Seller. 
 (d) Taxes. The fees under this Agreement exclude all applicable Tax (as defined in the Purchase Agreement) and Buyers will be responsible for payment of all such Tax and any related penalties and interest,
arising from the payment of fees and expenses to Seller. 
 9. CONFIDENTIALITY. 
 (a) Except as otherwise expressly provided herein, the parties agree that the receiving party shall not, except as expressly provided in this
Section 9, disclose to any third party, or use for any purpose except as set forth in Section 9(b) below, any Confidential Information furnished to it by the disclosing party pursuant to this Agreement, except in each case to the extent
that it can be established by the receiving party by competent proof that such information: 
 (i) was already known to the
receiving party, other than under an obligation of confidentiality, at the time of disclosure; 
 (ii) was generally available
to the public or otherwise part of the public domain at the time of its disclosure to the receiving party; 
 (iii) became
generally available to the public or otherwise part of the public domain after it disclosure and other than through any act or omission of the receiving party in breach of this agreement; 
  

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 (iv) was independently developed by the receiving party without use of, or reference to,
the other party’s confidential information, as demonstrated by documented evidence prepared contemporaneously with such independent development; or 
 (v) was disclosed to the receiving party, other than under an obligation of confidentiality, by a third party authorized and entitled to disclose such information to others without restriction. 
 (b) Permitted Use and Disclosures. Notwithstanding the restrictions of Section 9(a), each party hereto may (a) use Confidential
Information disclosed to it by the other to the extent necessary for that party to perform its obligations under this Agreement and (b) use or disclose Confidential Information disclosed to it by the other party to the extent such use or
disclosure is reasonably necessary in (i) exercising the rights and licenses granted hereunder, or (ii) complying with applicable laws, governmental regulations or court orders or submitting information to tax or other governmental
authorities (including the Securities and Exchange Commission),(provided that if a party is required to make any such disclosure, other than pursuant to an arrangement to restrict disclosure and use, it will give reasonable advance notice to the
other party of such disclosure requirement, and in each case it will use reasonable efforts to secure confidential treatment of such information (whether through protective order or otherwise) and use reasonable efforts to permit the other party an
opportunity maintain confidentiality of its affected Confidential Information). Buyer further acknowledges and agrees that Seller may disclose Confidential Information to formal and informal committees and consortia of its creditors formed in
Seller’s bankruptcy proceedings, as well as to the professional advisors to such creditors, so long as such parties agree to abide by the confidentiality provisions of this Agreement. 
 10. LIMITATION OF LIABILITY. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, AND EXCEPT WITH
RESPECT TO EITHER PARTY’S CONFIDENTIALITY OBLIGATIONS, IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY HEREUNDER FOR ANY LOST PROFITS OR FOR ANY SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES OF ANY KIND, HOWEVER CAUSED AND
ON ANY THEORY OF LIABILITY, IN CONNECTION WITH THIS AGREEMENT, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. Each party agrees that in the absence of this limitation of liability, the terms of this Agreement would be substantially different.

 11. DISCLAIMER OF WARRANTY. The Services and all information or other deliverables
provided by Seller to Buyer pursuant to this Agreement are provided “AS IS,” without any warranty of any kind. WITHOUT LIMITING THE FOREGOING, SELLER EXPRESSLY DISCLAIMS ALL REPRESENTATIONS, WARRANTIES OR CONDITIONS REGARDING THE SERVICES
AND ANY OTHER DELIVERABLES HEREUNDER, INCLUDING ANY WARRANTIES OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. 
 12.
SATISFACTION OF CONDITION TO CLOSING. The parties agree that this Agreement hereby satisfies the conditions of Article 6 Section 6.02(f) of the
Purchase Agreement. 
  

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 13. MISCELLANEOUS PROVISIONS. 
 (a) Intellectual Property. Neither party grants to the other party under this Agreement any right or license to the intellectual property
owned by such party. All license grants between the parties related to the subject matter of this Agreement are set forth in the Supply Agreement. All rights are reserved. 
 (b) Compliance with Law. Each party agrees to comply with all applicable state, local and federal laws related to the performance of their
obligations under this Agreement. Without limiting the foregoing, each party agrees to comply with any applicable export control laws and regulations of the United States and China. 
 (c) No Agency. It is agreed and understood that neither party is the agent, representative or partner of the other and neither party has any
authority or power to bind or contract in the name of or to create any liability against the other in any way or for any purpose pursuant to this Agreement. 
 (d) Governing Law and Arbitration. This Agreement and any disputes hereunder shall be governed by and construed in accordance with the internal laws of Hong Kong without giving effect to any choice or conflict
of law provision or rule. The rights and obligations of the parties under this Agreement shall not be governed by the provisions of the 1980 United Nations Convention on Contracts for the International Sale of Goods or the United Nations Convention
on the Limitation Period in the International Sale of Goods, as amended. All disputes between the parties will be resolved pursuant to the procedures set forth in Section 9.06 of the Purchase Agreement. 
 (e) Force Majeure. Neither party shall be liable for any failure to perform its obligations under this Agreement due to a force majeure event
during the term of this Agreement, including but not limited to an act of God, flood, earthquake, fire, explosion, interruption or defect in the supply of electricity or water, act of government, war, acts of terror, civil commotion, insurrection,
embargo, riots, lockouts, inability to obtain raw materials, or labor disputes. Upon the occurrence of a force majeure event, (a) the affected party shall notify the other party in writing; and (b) the originally scheduled date shall be
deemed extended for a period equal to the time lost by reason of the event except that if such force majeure continues for more than six (6) consecutive months without the prospect of cure, the other party shall have the option to terminate
this Agreement immediately upon written notice. Upon the cessation of a force majeure event, the affected party shall inform the other party of the date on which that party’s obligations under this Agreement shall be reinstated. 
 (f) Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given when delivered in
person, by telecopy with answer back, by express or overnight mail delivered by an internationally recognized air courier (delivery charges prepaid), by registered or certified mail (postage prepaid, return receipt requested) or by e-mail with
receipt confirmed by return e-mail to the respective parties as follows: 
 if to Buyer, to: 
 Powertech Technology, Inc. 
 No. 26,
Datong Rd., Hsinchu Industrial Park 
 Hukou, Hsinchu 30352, Taiwan 
 Attention: Mr. C.C. Liao, Vice President & Deputy Chief Executive Officer 
 Facsimile No.: +88.63.597.9900 
  

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 if to Seller, to: 
 Spansion LLC 
 915 DeGuigne Dr, 
 Sunnyvale, California 94088, USA 
 Attention: Nancy Richardson 
 Facsimile No.: +1.408.616.3762 
 with a copy
to: 
 Latham & Watkins LLP 
 140 Scott Drive 
 Menlo Park, California 94025 
 Attention: Tad J. Freese 
 Facsimile No.: (650) 463-2600 
 or to such other address as the party to whom notice is given may have previously furnished to the other in writing in the manner set forth above. Any notice or
communication delivered in person shall be deemed effective on delivery. Any notice or communication sent by e-mail, telecopy or by air courier shall be deemed effective on the first business day following the day on which such notice or
communication was sent. Any notice or communication sent by registered or certified mail shall be deemed effective on the third business day following the day on which such notice or communication was mailed. 
 (g) Assignment. Neither party may assign or transfer this Agreement, directly or indirectly, in whole or in part, whether voluntarily or
involuntarily or by operation of law or otherwise, without the other party’s prior written consent, which consent shall not be unreasonably conditioned, delayed or withheld. Any assignment in violation of this Section 13(g) shall be null
and void from the beginning, and shall be deemed a material breach of this Agreement. 
 (h) Severability. If any provision of this
Agreement shall be declared by any court of competent jurisdiction to be illegal, void or unenforceable, all other provisions of this Agreement shall not be affected and shall remain in full force and effect, and the Buyer and Seller shall negotiate
in good faith to replace such illegal, void or unenforceable provision with a provision that corresponds as closely as possible to the intentions of the parties as expressed by such illegal, void or unenforceable provision. 
  

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 (i) Amendment; Waiver. This Agreement, including this provision of this Agreement, may be amended,
supplemented or otherwise modified only by a written instrument executed by the parties. No waiver by either party of any of the provisions hereof shall be effective unless explicitly set forth in writing and executed by the party so waiving. Except
as provided in the preceding sentence, no action taken pursuant to this Agreement, including any investigation by or on behalf of any party or a failure or delay by any party in exercising any power, right or privilege under this Agreement, shall be
deemed to constitute a waiver by the party taking such action of compliance with any representations, warranties, covenants, or agreements contained herein. The waiver by any party hereto of a breach of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent breach. 
 (j) Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument. Copies of executed counterparts transmitted by telecopy, or other electronic transmission service shall be
considered original executed counterparts for purposes of this Section 13(j), provided that receipt of copies of such counterparts is confirmed. 
 (k) Construction. The headings to the clauses, sub-clause and parts of this Agreement are inserted for convenience of reference only and are not intended to be part of or to affect the meaning or interpretation
of this Agreement. The terms “this Agreement,” “hereof,” “hereunder” and any similar expressions refer to this Agreement and not to any particular Section or other portion hereof. The parties hereto agree that any rule
of construction to the effect that ambiguities are to be resolved against the drafting party will not be applied in the construction or interpretation of this Agreement. As used in this Agreement, the words “include” and
“including,” and variations thereof, will be deemed to be followed by the words “without limitation.” 
 (l) Entire
Agreement. This Agreement with its Exhibits, and the applicable portions of the Purchase Agreement, constitute the entire understanding between the parties with respect to the subject matter hereof and shall supersede all prior written and oral
and all contemporaneous oral agreements and understandings with respect to the subject matter hereof. 
 [SIGNATURE PAGE FOLLOWS] 
  

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 IN WITNESS WHEREOF, each party has caused this Agreement to be executed by its duly authorized
representative as of the date first written above. 
  

			
	Powertech Technology, Inc.
		
	By:	 	 /s/    D.K. Tsai

	Name:	 	D.K. Tsai
	Title:	 	Chairman
	
	Spansion LLC
		
	By:	 	 /s/    John Kispert

	Name:	 	John Kispert
	Title:	 	Chief Executive officer

  

 10Mahalo Bonus Plan

 Exhibit 10.1 
 Mahalo Bonus Plan Document 
 Overview: 
 The objective of the Mahalo bonus plan (“the Plan”) is to motivate and reward performing employees for their contributions to salesforce.com’s (the “Company”) success by aligning the goals of
each employee with those of the Company. 
 Effective Date: 
 This amended and restated Plan is effective February 1, 2009. This Plan replaces or supersedes all previous Mahalo bonus plan documents, plan descriptions, and Mahalo bonus practices under which employees were previously eligible.

 Bonus Period: 
 Eligible employees
potentially may earn bonuses under the Plan for periods that coincide with the Company’s fiscal calendar from February 1st to January 31st (“Bonus Period”) and bonuses will be paid at times at the sole discretion of the Company. Previous timing of bonus
payments for a Bonus Period does not dictate timing of future bonus payments for future Bonus Periods, if any. 
 Eligibility: 
 An employee is eligible to participate in the Mahalo bonus Plan if the employee meets all of the criteria listed below: 
  

	 	•	 	 Is an active, regular, full-time, or part-time employee 

  

	 	•	 	 Is on the Company’s payroll on the date of the bonus payment(s). 

  

	 	•	 	 Is performing at a “Meets Expectation” or higher. 

  

	 	•	 	 Is not on a commission, departmental bonus, or Management by Objective plan, unless otherwise approved by the Senior Vice President, Employee Services.

 Plan Components 
 The Mahalo Bonus
Plan is comprised of two components: company performance and individual performance objectives. 
 Company Performance 
 Company Performance is based on the Company’s achievement of its primary objectives, which include but are not limited to bookings, operating income
and revenue growth, as such achievements will be determined by the Company in its sole discretion. 
 Individual Performance
Objectives 
 At the beginning of each fiscal year, each eligible employee, along with his/her manager, will establish key Individual
Performance Objectives. Individual Performance Objectives can be any combination of individual objectives, developmental areas, and career development. They may include project completion, operational targets, financial targets, or any other
quantifiable goal relating to the Company’s V2MOM and the employee’s individual performance. The eligible employee along with his/her manager will periodically review the objectives to evaluate, update, and/or validate them. 
  

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 Funding of the Mahalo Bonus Pool 
 The Company shall create a Mahalo Bonus Pool (“Pool”) that is funded based on the Company’s achievements of its performance objectives during the fiscal year. A minimal level of achievement must be
obtained by the Company to fund the Pool. The level of performance necessary to fund the Pool will be determined by the Company in its sole discretion. Once the Company achieves its minimum performance, the Pool will continue to be funded as the
Company’s performance increases until the Company’s maximum goals are achieved. 
 The funding of the Pool is subject to approval by the Chief
Financial Officer and the Chief Executive Officer. With respect to eligible employees who are executive officers of the Company, the funding of the Pool is subject to approval of the Compensation Committee of the Board of Directors. 
 Target Bonus 
 The target bonus payable to any eligible employee is a
percentage of Eligible Earnings, based upon salary grade. Eligible Earnings shall include base salary, retro pay, PTO, floaters, holiday pay and overtime. To determine the dollar amount of an employee’s target bonus, multiply the
employee’s Eligible Earnings by the target bonus percentage. The target bonus for each eligible employee will be determined by management except that with respect to eligible employees who are executive officers of the Company, his or her
target bonus will be determined by the Compensation Committee. 
 Awarding Bonuses 
 When, and if, the Bonus Pool funds, designated managers will recommend a Bonus Award for an eligible employee based on the employee’s Target Bonus, achievement of Individual Performance Objectives, the allocated
Bonus Pool for the Bonus Period and any other matters at their sole discretion. The fact and amount of a Bonus Award, if any, is at the sole discretion of management. The Company has authority to increase, decrease or eliminate any employee’s
target bonus or actual bonus (if any) under the Plan and bonuses may vary from employee to employee. 
 An acceptable level of individual performance, as
determined by Company management in its sole discretion, is required to receive a bonus under this Plan. An employee who does not meet his or her Individual Performance Objectives will not be awarded any bonus under this Plan. 
 Bonus payments are subject to the approval of the Presidents’ Committee Executives. Management retains the right to adjust an individual bonus award or to adjust
bonus awards collectively as deemed necessary. 
 Any bonus payable under the Plan shall be paid as soon as administratively practicable
following the date on which both the Pool and the bonuses (if any) for a Bonus Period have been calculated, but in no event will payment be made later than the fifteenth (15th) day of the third (3rd) month following the end of the fiscal
year of the Company in which the applicable Bonus Period began. For purposes of illustration only, if a bonus is payable for a Bonus Period that is the same as the Company’s 2010 fiscal year, the bonus will be paid no later than 2 1/2 months after the end of the 2010 fiscal year. 

Pro-Rated Bonus Awards 
 For employees hired
after February 1st of the Bonus Period, bonus awards, if any, will be pro-rated
based on the date of hire. Employees who leave the Company and are re-hired within the same bonus period may be eligible to receive a pro-rated bonus award based solely on the employee’s re-hire date. 
 Leaves of Absence 
 Employees who are on a leave of absence during the
Bonus Period may be eligible for a pro-rated bonus amount provided they have been actively employed during the Bonus Period, have received an acceptable performance rating, the Bonus Pool has funded, and the employee is an active employee of the
Company when bonuses are paid. 
  

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 Promotions/Transfers 
 Employees who transfer into or out of a Mahalo Bonus eligible job may be eligible for a pro-rated bonus based on the period of time spent in the Mahalo Bonus eligible position provided they have received an acceptable performance rating,
the Mahalo Bonus Plan has funded, and they are an active employee of the Company when bonuses are paid. 
 If any employee transfers from one Mahalo
bonus-eligible position to another Mahalo bonus-eligible position (with a higher, lower, or same target bonus), the bonus amount will be calculated based on the employee’s bonus target and earnings at the end of the bonus period. 
 Employees who transfer from one country payroll to another will be paid in accordance with the mobility practice in place. 
 Termination of Employment 
 An employee who ceases employment with the
Company for any reason prior to the date bonuses are paid will not be eligible for any Bonus Award. An employee who terminates employment prior to the last day of the Bonus Period ceases to be an eligible employee in this Plan and is not eligible
for any Bonus Award. In the case of death, permanent disability or exceptional circumstances, deviations from eligibility under the Plan may be approved and reviewed by the SVP, Employee Services on a case-by-case basis. 
 Tax Withholding 
 The Company shall have the authority to deduct or
withhold an amount sufficient to satisfy Federal, state, local, employment and other taxes required to be withheld with respect to any bonus. 
 Administration 
 The CEO and, with respect to executive officers, the Compensation Committee, shall have complete discretion and authority to
administer the Plan and to control its operation, including, but not limited to, the power to determine which employees (if any) shall be awarded bonuses and to interpret the Plan. The CEO and the Committee may delegate the administration of the
Plan and such other aspects of the Plan (which may include any or all of the determinations and calculations required by the Plan, including the determination of the Pool and/or the dollar amount or percentage of the Pool to be allocated to an
employee) to such persons as the CEO or the Committee shall deem appropriate. The CEO, each member of the Committee, and each delegate, shall be fully protected in taking any action hereunder in reliance in good faith upon the books and records of
the Company or upon such information, opinions, reports or statements presented to them by any person as to matters any such person reasonably believes are within such other person’s professional or expert competence and who has been selected
with reasonable care. Any determination, decision or action of the CEO, the Committee or any delegate in connection with the construction, interpretation, administration or application of the Plan shall be final, conclusive, and binding upon all
persons, and shall be given the maximum deference permitted by law. Notwithstanding the foregoing, the Committee may not delegate its authority and powers with respect to the determination of bonuses for individuals who are officers of the Company
for purposes of Section 16 of the Securities Exchange Act of 1934, as amended. 
 Modification, Interpretation, and/or Termination of the Plan 

 The Mahalo Bonus Plan, as set forth in this document, represents the general guidelines the Company intends to utilize to determine what Mahalo Bonus
payments, if any, will be paid. The Company reserves the right to modify or terminate the Plan at its sole discretion, at any time, with or without written notification and without regard to the effect that any such action may have on any
employee’s bonus or potential bonus. This right to modify or terminate may be triggered by many factors. The Company shall have the full power and authority to interpret and administer the Plan and shall be the sole arbiter of all manners of
interpretation and application of the Plan. 
  

 3 

 The existence of, or an employee’s eligibility for, this Mahalo Bonus Plan shall not be deemed to give the employee
the right to be retained in the employ of the Company and shall not change employees’ at-will employment status... The Mahalo Bonus Plan will not be deemed to constitute a contract of employment with any participating employee, nor be deemed to
be consideration for the employment of any participant. 
  

 4

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