Document:

EX-10.2

 Exhibit 10.2 

SERP AGREEMENT 

THIS SERP AGREEMENT (“Agreement”) is made by and among UNITED CONTINENTAL HOLDINGS, INC. (“Holdings”),
CONTINENTAL AIRLINES, INC. (“Continental” and, together with Holdings, “Company”), and GERALD LADERMAN (“Executive”), and is dated and effective as of October 1, 2010 (the “Effective Date”).

 W I T N E S S E T H: 

WHEREAS, Continental and Executive are parties to that certain Employment Agreement dated as of December 1, 2007, (as amended, the
“Prior Employment Agreement”), which provided for, among other things, a supplemental executive retirement plan benefit for Executive; and 

WHEREAS, Company and Executive are entering into a new Employment Agreement of even date herewith (the “New Employment
Agreement”) that will supersede the Prior Employment Agreement and will not include provisions relating to Executive’s supplemental executive retirement plan benefit that was provided for in the Prior Employment Agreement; and 

WHEREAS, the parties intend that the supplemental executive retirement plan benefit that was provided to Executive in the Prior
Employment Agreement shall continue to be provided to Executive, shall be frozen as provided in this Agreement and shall be set forth in this Agreement rather than the New Employment Agreement; and 

WHEREAS, the parties desire to enter into this Agreement to replace and supersede in its entirety the provisions of the Prior
Employment Agreement relating to the supplemental executive retirement plan benefit, effective as of the Effective Date; and 

WHEREAS, the Human Resources Committee of the Board of Directors of Continental and the Human Resources Subcommittee of the Board of
Directors of UAL Corporation have authorized the execution, delivery and performance by the Company of this Agreement; 
 NOW,
THEREFORE, for and in consideration of the mutual promises, covenants and obligations contained herein, Company and Executive agree as follows: 

SECTION 1: SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN 

1.1 Base Benefit. Company agrees to pay Executive the deferred compensation benefits set forth in this Section 1 as a supplemental
retirement plan (the “Plan”). The base retirement benefit under the Plan (the “Base Benefit”) shall be an annual amount (that is payable as a monthly straight life annuity) equal to the product of (a) 2.5% times (b) the
number of Executive’s credited years of service (as defined below) under the Plan (but not in excess of 24 years) times (c) Executive’s final average compensation (as defined below). For purposes hereof, Executive’s credited
years of service under the Plan shall be equal to the sum of (1) the number of years (including partial years) beginning January 1, 2000, through the earlier of December 31, 2013 or the end of Executive’s period of employment
with Company (such earlier 

 
date being referred to herein as the “Freeze Date”), calculated as set forth in the Continental Retirement Plan (the “CARP”) with respect to credited service (“Actual
Years of Service”), and (2) an additional one year of service for each one year of service credited to Executive pursuant to clause (1) of this sentence for the period beginning on January 1, 2000 and ending on December 31,
2004. For purposes hereof, Executive’s final average compensation shall be equal to the greater of (A) $330,000, or (B) the average of the five highest annual cash compensation amounts paid to Executive by Continental during the
consecutive ten calendar years immediately preceding the earlier of December 31, 2010 or the end of Executive’s period of employment with Company. For purposes hereof, cash compensation shall include base salary plus cash bonuses
(including any amounts deferred (other than Stay Bonus amounts described below) pursuant to any deferred compensation plan of Continental), but shall exclude (i) any Stay Bonus paid to Executive pursuant to that certain Stay Bonus Agreement
between Continental and Executive dated as of April 14, 1998, (ii) any payments received by Executive under Continental’s Officer Retention and Incentive Award Program, (iii) any proceeds to Executive from any awards under any
option, stock incentive or similar plan of Continental (including RSUs awarded under Continental’s Long Term Incentive and RSU Program), and (iv) any cash bonus paid under a long term incentive plan or program adopted by Continental.
Executive shall be vested immediately with respect to benefits due under the Plan. For all purposes of this Agreement, Executive shall be considered to have terminated employment with Company when Executive incurs a “separation from
service” with Company within the meaning assigned to such term in the New Employment Agreement for purposes of Section 409A(a)(2)(A)(i) of the Code. 

1.2 Offset for CARP or Other Benefit. Any provisions of the Plan to the contrary notwithstanding, the Base Benefit shall be reduced by
the actuarial equivalent (as defined below) of the pension benefit, if any, accrued as of the Freeze Date and paid or payable to Executive from the CARP or from any other defined benefit nonqualified supplemental retirement plan provided to
Executive by Company. In making such reduction, the Base Benefit and the benefit accrued under the CARP or any such other defined benefit nonqualified supplemental retirement plan shall be determined under the provisions of each plan as if payable
in the form of a monthly straight life annuity beginning on the Retirement Date (as defined below); provided, however, that the benefit accrued under the CARP shall also be determined based on the early commencement factor applicable under the CARP
as of the Freeze Date to an individual receiving a distribution under the CARP on such date and whose age as of such date is equal to the greater of age 60 or Executive’s actual age as of the Freeze Date. The net benefit payable under this Plan
shall then be actuarially adjusted based on the actuarial assumptions set forth in Section 1.7 for the actual time of payment. 
 1.3
Normal Retirement Benefits. Executive’s benefit under the Plan shall be paid only in a lump sum payment in an amount that is the actuarial equivalent, based on the actuarial assumptions set forth in Section 1.7, of the Base Benefit
for the life of Executive paying equal monthly installments beginning on the Retirement Date (the “Normal Retirement Benefit”). The Normal Retirement Benefit shall be paid to Executive on or within five business days following the
Retirement Date or, if later and if required to satisfy the provisions of Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”), on or within five business days after the Section 409A Payment
Date. If the Section 409A Payment Date is after the Retirement Date, then payment of the Normal Retirement Benefit (with interest on such benefit from the Retirement Date to the actual date of payment at the Aa Corporate Bond Rate

  
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(as defined in Section 1.7) shall be paid by Company to Executive (or, in the event of Executive’s death, Executive’s Beneficiary) not earlier than but as soon as practicable on,
and in any event within five business days after, the Section 409A Payment Date. For purposes hereof: (a) “Beneficiary” is defined as (1) Executive’s surviving spouse, if Executive is married on the date of
Executive’s death, or (2) Executive’s estate, if Executive is not married on the date of Executive’s death; (b) “Retirement Date” is defined as the first day of the month coincident with or next following the later
of (1) the date on which Executive attains (or in the event of Executive’s earlier death, would have attained) age 60 or (2) the date of Executive’s retirement from employment with Company; and (c) “Section 409A Payment
Date” is defined as the earlier of (1) the date of Executive’s death or (2) the date which is six months after the date of termination of Executive’s employment with Company. 

1.4 Early Retirement Benefits. Notwithstanding the provisions of Section 1.3, if Executive’s employment with Company is
terminated, for a reason other than death, on or after the date Executive attains age 55 or is credited with 10 Actual Years of Service and prior to the Retirement Date, then Company shall pay Executive the Normal Retirement Benefit on or within
five business days following the first day of the month coinciding with or next following Executive’s termination of employment (the “Earliest ERB Payment Date”) or, if required to satisfy the provisions of
Section 409A(a)(2)(B)(i) of the Code, on or within five business days after the Section 409A Payment Date (an “Early Retirement Benefit”); provided, however, that the amount of the benefit shall be reduced to the extent necessary
to cause the value of such Early Retirement Benefit (determined as if payment would be made on the Earliest ERB Payment Date) to be the actuarial equivalent of the value of the Normal Retirement Benefit (based on the actuarial assumptions set forth
in Section 1.7 and adjusted for such time of payment). If payment of the Early Retirement Benefit must be delayed beyond the Earliest ERB Payment Date to satisfy the provisions of Section 409A(a)(2)(B)(i) of the Code as provided in the
preceding sentence, then payment of the Early Retirement Benefit (with interest on such benefit from the Earliest ERB Payment Date to the actual date of payment at the Aa Corporate Bond Rate) shall be paid by Company to Executive (or, in the event
of Executive’s death after the Earliest ERB Payment Date, Executive’s Beneficiary) not earlier than but as soon as practicable on, and in any event within five business days after, the Section 409A Payment Date. 

1.5 Death Benefit. Except (a) as provided in Section 1.3 if the Section 409A Payment Date is after the Retirement Date,
(b) as provided in Section 1.4 if the payment of the Early Retirement Benefit must be delayed beyond the Earliest ERB Payment Date to satisfy the provisions of Section 409A(a)(2)(B)(i) of the Code, and (c) as provided in the
remaining provisions of this Section 1.5, no benefits shall be paid under the Plan if Executive dies prior to the date Executive’s benefit is paid pursuant to Sections 1.3 or 1.4, as applicable. In the event of Executive’s death prior
to payment of Executive’s benefit pursuant to Sections 1.3 or 1.4 (other than under the circumstances described in clauses (a) or (b) of the preceding sentence, in which case the benefits described in Sections 1.3 or 1.4, as
applicable, shall be paid in full), Executive’s surviving spouse, if Executive is married on the date of Executive’s death, will receive a death benefit payable only as a lump sum payment in an amount that is the actuarial equivalent of a
single life annuity consisting of monthly payments for the life of such surviving spouse determined as follows: (a) if Executive dies on or before reaching the Retirement Date, the death benefit such spouse would have received had Executive
terminated employment on the earlier of Executive’s actual date of termination of employment or Executive’s date of death, survived 

  
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until the Retirement Date, been entitled to elect and elected a joint and 50% survivor annuity and begun to receive Executive’s Plan benefit beginning immediately at the Retirement Date, and
died on the day after the Retirement Date; or (b) if Executive dies after reaching the Retirement Date, the death benefit such spouse would have received had Executive been entitled to elect and elected a joint and 50% survivor annuity and
begun to receive Executive’s Plan benefit beginning on the day prior to Executive’s death. Such benefit shall be paid on or within 10 business days following the first day of the month coincident with or next following the date of
Executive’s death; provided, however, that if Executive dies prior to reaching age 60, then the amount of such benefit shall be reduced based on the principles used for the reductions described in the proviso to the first sentence of
Section 1.4. 
 1.6 Unfunded Benefit. The Plan is intended to constitute an unfunded, unsecured plan of deferred compensation.
Further, it is the intention of Company that the Plan be unfunded for purposes of the Code and Title I of the Employee Retirement Income Security Act of 1974, as amended. The Plan constitutes a mere promise by Company to make benefit payments in the
future. Plan benefits hereunder provided are to be paid out of Company’s general assets, and Executive shall have the status of, and shall have no better status than, a general unsecured creditor of Company. Executive understands that Executive
must rely upon the general credit of Company for payment of benefits under the Plan. Company has not and will not in the future set aside assets for security or enter into any other arrangement which will cause the obligation created to be other
than a general corporate obligation of Company or will cause Executive to be more than a general creditor of Company. 
 1.7 Actuarial
Equivalent. For purposes of the Plan, the terms “actuarial equivalent” or “actuarially equivalent” when used with respect to a specified benefit shall mean the amount of benefit of the referenced different type or payable at
the referenced different age that can be provided at the same cost as such specified benefit, as computed by the Actuary (as defined below) and certified to Executive (or, in the case of Executive’s death, to Executive’s spouse) by the
Actuary. The actuarial assumptions used under the Plan to determine equivalencies between different forms and times of payment shall be the same as the actuarial assumptions then used in determining lump sum benefits payable under the CARP;
provided, however, that with respect to the discount rate used to calculate benefits under the Plan, the discount rate shall be the Aa Corporate Bond Rate. The term “Actuary” shall mean the individual actuary or actuarial firm selected by
Company to service its pension plans generally or if no such individual or firm has been selected, an individual actuary or actuarial firm appointed by Company and reasonably satisfactory to Executive and/or Executive’s spouse. The term
“Aa Corporate Bond Rate” shall mean the average of the Moody’s daily long-term corporate bond yield averages for Aa-rated corporate bonds published by Moody’s Investors Service, for the three-month period ending on the last day
of the second month preceding the date Executive (or, in the case of Executive’s death, Executive’s spouse) is to receive the lump sum payment (determined without regard to any delay in such payment that may be required by reason of
Section 409A(a)(2)(B)(i) of the Code), as determined by the Actuary (or, if such yield information is no longer so published, then the average of the daily corporate bond yields for a comparable sample of Aa-rated corporate bonds of comparable
tenor determined in good faith by the Actuary). Upon request, Company shall cause the Actuary to compute the Aa Corporate Bond Rate for a specified period and the amount of the applicable lump sum payment for Executive (or, in the case of
Executive’s death, Executive’s spouse) and shall deliver such information to Executive or such spouse. 
 1.8 Medicare Payroll
Taxes. Company shall indemnify Executive on a fully grossed-up, after-tax basis for any Medicare payroll taxes (plus any income taxes on such indemnity payments) incurred by Executive in connection with the accrual and/or payment of benefits
under the Plan. Any payment by Company to Executive pursuant to this Section 1.8 shall be made on or as soon as practicable following the day on which the required tax is remitted by or on behalf of Executive (but not later than the end of the
taxable year following the year in which such tax is remitted). 

  
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 SECTION 2: MISCELLANEOUS 

2.1 Interest and Indemnification. If any payment to Executive provided for in this Agreement is not made by Company when due, Company
shall pay to Executive interest on the amount payable from the date that such payment should have been made until such payment is made, which interest shall be calculated at 3% plus the prime rate of interest announced by JPMorgan Chase Bank (or any
successor thereto) at its principal office in Houston, Texas (but not in excess of the highest lawful rate), and such interest rate shall change when and as any such change in such prime or base rate shall be announced by such bank. If Executive
shall obtain any money judgment or otherwise prevail with respect to any litigation brought by Executive or Company to enforce or interpret any provision contained herein, Company, to the fullest extent permitted by applicable law, hereby
indemnifies Executive for Executive’s reasonable attorneys’ fees and disbursements incurred in such litigation and hereby agrees (i) to pay in full all such fees and disbursements and (ii) to pay prejudgment interest on any money
judgment obtained by Executive from the earliest date that payment to Executive should have been made under this Agreement until such judgment shall have been paid in full, which interest shall be calculated at the rate set forth in the preceding
sentence. Any reimbursement of attorneys’ fees and disbursements required under this Section 2.1 shall be made by Company upon or as soon as practicable following receipt of supporting documentation reasonably satisfactory to Company (but
in any event not later than the close of Executive’s taxable year following the taxable year in which the fee, disbursement, cost or expense is incurred by Executive); provided, however, that, upon Executive’s termination of employment
with Company, in no event shall any additional reimbursement be made prior to the date that is six months after the date of Executive’s termination of employment to the extent such payment delay is required under Section 409A(a)(2)(B)(i)
of the Code; provided that interest at the rate specified above in this Section 2.1 shall be paid to Executive with respect to any time period that reimbursement is so delayed and such interest shall be paid at the same time as the
reimbursement. In no event shall any reimbursement be made to Executive for such fees, disbursements, costs and expenses incurred after the later of (1) the tenth anniversary of the date of Executive’s death or (2) the date that is
ten years after the date of Executive’s termination of employment with Company. 
 2.2 Notices. For purposes of this Agreement,
notices and all other communications provided for herein shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by United States registered or certified mail, return receipt requested, postage
prepaid, addressed as follows: 
  

			
	If to Company to:	  	United Continental Holdings, Inc.
		  	77 W. Wacker Drive, HDQLD
		  	Chicago, Illinois 60601
		  	Attention: General Counsel
		
	If to Executive to:	  	At the most recent address
		  	on file with Company

  
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 or to such other address as either party may furnish to the other in writing in accordance herewith, except that
notices of changes of address shall be effective only upon receipt. 
 2.3 Applicable Law. This contract is entered into under,
and shall be governed for all purposes by, the laws of the State of Illinois. 
 2.4 Counterparts. This Agreement may be executed
in one or more counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement. 

2.5 Withholding of Taxes. Company may withhold from any benefits and payments made pursuant to this Agreement all federal, state, city
and other taxes as may be required pursuant to any law or governmental regulation or ruling. 
 2.6 Headings. The paragraph headings
have been inserted for purposes of convenience and shall not be used for interpretive purposes. 
 2.7 Successors. This Agreement
shall be binding upon and inure to the benefit of Company and any successor of Company, including without limitation any person, association, or entity which may hereafter acquire or succeed to all or substantially all of the business or assets of
Company by any means whether direct or indirect, by purchase, merger, consolidation, or otherwise. Except as provided in the preceding sentence, this Agreement, and the rights and obligations of the parties hereunder, are personal and neither this
Agreement, nor any right, benefit or obligation of any party hereto, shall be subject to voluntary or involuntary assignment, alienation or transfer, whether by operation of law or otherwise, without the prior written consent of the other parties.
The parties intend that the provisions of this Agreement benefiting Executive’s estate or Executive’s surviving spouse shall be enforceable by them. 

2.8 Entire Agreement. This Agreement, as of the Effective Date, will constitute the entire agreement of the parties with regard to the
subject matter hereof, and will contain all the covenants, promises, representations, warranties and agreements between the parties with respect to the Plan. Effective as of the Effective Date, the provisions of the Prior Employment Agreement
relating to the Plan shall automatically terminate and no longer be of any force or effect, and neither party thereto shall have any rights or obligations thereunder. Any modification of this Agreement shall be effective only if it is in writing and
signed by the party to be charged. 
 [Signatures begin on following page.] 

  
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on and to be effective
as of the Effective Date. 
  

			
	UNITED CONTINENTAL HOLDINGS, INC.
		
	By:	 	 /s/ Michael P. Bonds

		 	Michael P. Bonds, Executive Vice President
		 	Human Resources and Labor Relations
	
	CONTINENTAL AIRLINES, INC.
		
	By:	 	 /s/ Michael P. Bonds

		 	Michael P. Bonds, Executive Vice President
		 	Human Resources and Labor Relations
	
	“EXECUTIVE”
	
	 /s/ Gerald Laderman

	Gerald Laderman

  
 7EX-10.17

 Exhibit 10.17 
 MICROSOFT CORPORATION 
 EXECUTIVE OFFICER INCENTIVE PLAN 

ARTICLE 1 
 Purpose

 The Microsoft Corporation Executive Officer Incentive Plan is intended to provide incentive compensation to executive officers of
the Company and those other senior officers that the Committee has determined should participate in the Plan. Awards under the Plan may be intended to qualify as performance-based compensation under Sections 162(m) and 409A of the Internal Revenue
Code. 
 ARTICLE 2 

Definitions 
 The terms used
in this Plan include the feminine as well as the masculine gender and the plural as well as the singular, as the context in which they are used requires. The following terms, unless the context requires otherwise, are defined as follows: 

 

	2.1	 “Award” means the incentive compensation awarded by the Committee under Section 4.1. Awards may be in the form of cash awards and/or
equity-based awards issued under the Stock Plan. 

  

	2.2	 “Business Criteria” means the following: sales or licensing volume, revenues, customer satisfaction, expenses, organizational
health/productivity, earnings (which includes similar measurements such as net profits, operating income and net income, and which may be calculated before or after taxes, interest, depreciation, amortization or taxes), margins, cash flow,
shareholder return, return on equity, return on assets or return on investments, working capital, product shipments or releases, technology advances and innovations, brand or product recognition or acceptance (including market share) and/or stock
price. 

  

	2.3	 “Code” means the Internal Revenue Code of 1986, as amended. 

 

	2.4	 “Committee” means the Compensation Committee of the Company’s Board of Directors. 

 

	2.5	 “Company” means Microsoft Corporation. 

  

	2.6	 “Deferred Compensation Plan” means the Microsoft Corporation Deferred Compensation Plan, or a similar or successor plan or other arrangement
for the deferral of compensation specified by the Committee. 

  

	2.7	 “Participant” means an employee described in Article 3 of the Plan. 

 

	2.8	 “Performance Goals” means the written objective performance goals for Awards under the Plan. To the extent required by Section 162(m),
the Performance Goals shall be stated in terms of one or more Business Criteria. Performance Goals may be measured: individually, alternatively or in any combination, including through an index; with respect to the Company, a Company subsidiary,
division, business unit, product line, product or any combination of the foregoing; on an absolute basis, or relative to a target, to a designated comparison group, to results in other periods or to other external measures. The Committee may specify
any reasonable definition of the measures it uses. Such definitions may provide for reasonable adjustments to the measures and may include or exclude items, including but not limited to: extraordinary or unusual and nonrecurring gains or losses,
litigation or claim judgments or settlements, material changes in tax laws, acquisitions or divestitures, the cumulative effect of accounting changes, asset write-downs, restructuring charges, or the results of discontinued operations or products.

  

	2.9	 “Performance Period” means the period for which an Award is made for purposes of this Plan as determined by the Committee. For the avoidance
of doubt, the applicable grant documentation for an Award may set forth performance requirements in addition to the Performance Goals, and such additional performance requirements may be based on a shorter or longer period than the Performance
Period. 

  
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	2.10	 “Plan” means the Microsoft Corporation Executive Officer Incentive Plan, as it may be amended from time to time.

  

	2.11	 “Section 162(m)” means Code Section 162(m) and applicable IRS guidance issued thereunder. 

 

	2.12	 “Stock Plan” means the Company’s 2001 Stock Plan, or a similar or successor plan or other arrangement of the issuance of equity-based
awards specified by the Committee. 

 ARTICLE 3 

Eligibility and Participation 

Executive officers of the Company are eligible to receive Awards under the Plan. In addition, other senior officers of the Company may be
designated by the Committee to receive awards under the Plan. Any person who receives an Award under Section 4.1 shall be a Participant in the Plan and shall continue to be a Participant until any amounts due under any Awards he may receive
have been paid. 
 ARTICLE 4 
 Incentive Awards 
  

	4.1	 Grants of Awards. 

  

	(a)	 Establishment of Written Terms—Not later than 90 days after the beginning of a Performance Period for which the Committee has determined to grant
Awards under the Plan (or within the first 25% of the Performance Period for any Performance Period that is less than 12 months) or any other date required or permitted under Section 162(m), the Committee shall determine in writing (a) the
Participants receiving Awards for the Performance Period, (b) the Performance Goals for each Participant for the Performance Period, and (c) the amount payable to a Participant upon attainment of the applicable Performance Goals for the
Performance Period. 

  

	(b)	 Incentive Pools—Unless otherwise determined by the Committee, the amount payable to a Participant upon attainment of the applicable Performance
Goals for a Performance Period will be stated as a percentage of an incentive pool. As described in Section 4.3 below, the amount of a Participant’s Award may be reduced below the amount determined by multiplying the incentive pool
percentage by the incentive pool for the Performance Period. The total of the incentive pool percentages assigned to all Participants for a Performance Period shall not exceed 100%, and the amount of the incentive pool shall be determined under an
objective formula or basis. 

  

	(c)	 Maximum Amount—The maximum number of shares of Company common stock with respect to which equity-based Awards may be granted to any Participant
based on one or more Performance Periods ending in a fiscal year of the Company shall not exceed (i) 20,000,000 shares for stock options or stock appreciation rights, and (ii) 5,000,000 shares for stock awards (increased, in both cases
proportionately, in the event of any stock split, stock dividend or similar event with respect to the shares). The maximum Awards settled in cash based on one or more Performance Periods ending in a fiscal year of the Company shall (i) not
exceed the stock award share limit above multiplied by the closing price per share of Company common stock on the last trading day coinciding with or preceding the date the cash Award is paid, and (ii) reduce the share limits for the
Performance Period(s) for equity awards by the number of whole shares that could be purchased with the cash Award on the date of payment of the cash Award. 

 

	(d)	 New Executive Officers—The Committee may grant an Award to an individual who becomes an executive officer during a Company fiscal year based on
performance during the balance of the fiscal year or such other Performance Period as it determines. If the Performance Period for such an Award is less than 12 months, within the first 25% of the Performance Period or any other date required or
permitted under Section 162(m), the Committee shall determine in writing (a) Performance Goals for the Performance Period, and (b) the amount payable to the Participant upon attainment of the applicable Performance Goals for the
Performance Period. The amount payable to such a Participant upon attainment of the applicable Performance Goals for a Performance Period may be stated as a percentage of an incentive pool. 

 

	(e)	 EOIP Awards—Unless otherwise determined by the Committee, each Company fiscal year for which the Committee intends to grant an Award is a
Performance Period for which the Committee will specify (1) the Participants, (2) if applicable, an incentive pool that is a percentage of the Company’s operating income for the

  
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fiscal year, as reported in the Company’s financial statements (“Operating Income”), and (3) if applicable, each Participant’s incentive pool percentage for the
Performance Period. In addition, if an employee becomes an executive officer of the Company after the first quarter of the Company’s fiscal year, then the remainder of that fiscal year, including the quarter in which the employee becomes an
executive officer, may be a Performance Period for which the Committee will specify: (1) such Participant (or Participants), (2) an incentive pool that is a percentage of the Company’s Operating Income for the Performance Period, and
(3) each Participant’s incentive pool percentage for the Performance Period. 

 No payments
will be made under an Award described in Section 4.1(e) unless the Company’s Operating Income for the Performance Period is greater than zero; this positive Operating Income requirement is the Performance Goal for the applicable
Performance Period. 
  

	4.2	 Performance Goal Satisfaction and Certification.    Within a reasonable time after the close of a Performance Period, the Committee
shall determine whether the Performance Goals established for that Performance Period have been met. If the Performance Goals have been met, the Committee shall so certify in writing to the extent required by Section 162(m).

  

	4.3	 Award Amount.    If the Committee has made the written certification under Section 4.2 for a Performance Period, each
Participant to whom the certification applies shall be eligible to receive a payment under their Award for that Performance Period, subject to any additional requirements set forth in the written terms governing the Award and the applicable grant
documentation. For any Performance Period, however, the Committee (and, with respect to Awards for the chief executive officer, two or more independent members of the Company’s Board of Directors who are outside directors within the meaning of
Section 162(m)) shall have the absolute discretion to reduce the amount of, or eliminate entirely, the payment under an Award to one or more of the Participants. Payment of all or part of an Award amount in the form of an equity compensation
grant shall be made under, and subject to the terms and conditions of, the Stock Plan and the applicable grant documentation. 

  

	4.4	 Payment of the Award. 

  

	(a)	 Unless otherwise determined by the Committee in the applicable grant documentation, payment of an Award for a Performance Period ending with a Company’s
fiscal year shall be made by the end of the fiscal quarter following the end of the fiscal year, and no later than March 15 of the calendar year following the close of the Performance Period (or if later, by the 15th day of the third month
following the end of the Company’s fiscal year containing the last day of the Performance Period). 

  

	(b)	 As permitted by the Committee, a Participant may, in accordance with section 409A of the Code, voluntarily defer receipt of an Award in the form of cash under
the terms of the Deferred Compensation Plan. 

  

	(c)	 The Company shall have the right to deduct from any Award payable in cash any applicable Federal, state and local income and employment taxes and any other
amounts that the Company is required to deduct. Deductions from an Award in the form of an equity compensation award shall be governed by the Company’s 2001 Stock Plan and the applicable grant documentation. 

 

	4.5	 Eligibility for Payments.    Unless otherwise determined by the Committee, a Participant shall be eligible to receive payment under
an Award for a Performance Period only if the Participant is employed by the Company or a Company subsidiary on the last day of the Performance Period, and only if the Participant satisfies any other conditions to receipt of the Award specified by
the Committee. 

  

	4.6	 Discretionary Awards.    The Committee may grant Awards under the Plan that are not intended to qualify as performance-based
compensation under Section 162(m) and as such will not need to meet the requirements of this Article 4. 

ARTICLE 5 
 Administration

  

	5.1	 General Administration.    The Plan is to be administered by the Committee. Subject to the terms and conditions of the Plan, the
Committee is authorized and empowered in its sole discretion to select Participants and to make Awards in such amounts and upon such terms and conditions as it shall determine. 

  
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	5.2	 Administrative Rules.    The Committee shall have full power and authority to adopt, amend and rescind administrative guidelines,
rules and regulations pertaining to this Plan and to interpret the Plan and rule on any questions respecting any of its provisions, terms and conditions. 

 

	5.3	 Decisions Binding.    All decisions of the Committee concerning this Plan shall be binding on the Company and its subsidiaries and
their respective boards of directors, and on all Participants and other persons claiming rights under the Plan. 

  

	5.4	 Section 162(m) and Shareholder Approval.    Other than Awards issued under Section 4.6, Awards under this Plan are
intended to satisfy the applicable requirements for the performance-based compensation exception under Section 162(m). It is intended that the Plan be administered, interpreted and construed so that such Awards (“162(m) Awards”) meet
such requirements. Payments under 162(m) Awards shall be contingent upon shareholder approval of the material terms of the Plan in accordance with Section 162(m). Unless and until such shareholder approval is obtained, no amounts shall be paid
under 162(m) Awards. 

  

	5.5	 Recovery Policy.    Amounts paid under the Plan shall be subject to recovery by the Company under its executive compensation
recovery policy as in effect from time to time. 

 ARTICLE 6 

Amendments and Termination 

The Plan may be amended or terminated by the Committee at any time. All amendments to this Plan, including an amendment to terminate the Plan,
shall be in writing. An amendment shall not be effective without the approval of the shareholders of the Company if such approval is necessary to continue to qualify Awards (other than those issued under Section 4.6) as performance-based
compensation under Section 162(m), or otherwise under Internal Revenue Service or SEC regulations, the rules of NASDAQ or any other applicable law or regulations, as reasonably interpreted by the Committee in its sole discretion. 

ARTICLE 7 
 Miscellaneous

  

	7.1	 Duration of the Plan.    The Plan shall remain in effect until all Performance Periods related to Awards made under the Plan have
expired and any payments under such Awards have been made. 

  

	7.2	 Awards Not Assignable.    No Award, or any right thereto, shall be assignable or transferable by a Participant except by will or by
the laws of descent and distribution. Any attempted assignment or alienation shall be void and of no force or effect. 

  

	7.3	 Participant Rights.    The right of any Participant to receive any Award payments under the provisions of the Plan shall be an
unsecured claim against the general assets of the Company. The Plan shall not create, nor be construed in any manner as having created, any right by a Participant to any Award for a Performance Period because of a Participant’s participation in
the Plan for any prior Performance Period. 

  

	7.4	 Employment at Will.    Neither this Plan nor any action or communication under this Plan: (1) gives any employee any right
with respect to employment or continuation of current employment with the Company or its subsidiaries or to employment that is not terminable at will, or (2) sets any employee’s employment with the Company or its subsidiaries for any
minimum or fixed period. Employment by the Company or a Company subsidiary may be terminated by either the employee or the employer at any time, for any reason or no reason, with or without cause, and with or without notice or any kind of pre- or
post-termination warning, discipline or procedure. This Section 7.4 applies to employment in the United States. 

  

	7.5	 Successors.    Any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially
all of the Company’s business or assets, shall assume the Company’s liabilities under this Plan and perform any duties and responsibilities in the same manner and to the same extent that the Company would be required to perform if no such
succession had taken place. 

  

	7.6	 References.    All statutory and regulatory references in this Plan include successor provisions. 

  
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	7.7	 Severability.    If any provision of the Plan is held invalid or illegal for any reason, any illegality or invalidity shall not
affect the remaining parts of the Plan, but the Plan shall be construed and enforced as if the illegal or invalid provision had never been inserted. 

  

	7.8	 Applicable Law and Venue.    The Plan shall be governed by the laws of the State of Washington. If the Company or any Participant
(or beneficiary) initiates litigation related to this Plan, the venue for such action will be in King County, Washington. 

  
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