Document:

Resignation Agreement between Christopher Liddell and Microsoft Corp.

 Exhibit 10.20 
 RESIGNATION AGREEMENT AND FULL AND FINAL RELEASE OF CLAIMS 
 Presentation Date:
November 23, 2009; Return to Lisa Brummel on December 20, 2009 
 1. I, Christopher P. Liddell, have resigned from the position
of Chief Financial Officer of Microsoft Corporation (“Microsoft”) effective November 24, 2009. I have resigned from employment effective December 31, 2009 (“Resignation Date”) and will remain employed through
December 31. Between November 24 and December 31, I wish to receive the consideration described in paragraph 2 below, to which I would not be otherwise entitled, and in exchange for that consideration I have chosen to sign this
Resignation Agreement and Full and Final Release of Claims (“Agreement”). I acknowledge that my execution of this Agreement is knowing and voluntary. I have had a reasonable period of time in which to consider whether to sign this
Agreement. 
 2. Upon my timely execution of this Agreement and in exchange for my full compliance with this Agreement and honoring the
commitments undertaken herein, Microsoft agrees to: (a) pay me the lump sum of $950,000, less taxes and withholding, and any other deductions taken pursuant to paragraph 11 below, on December 31, 2009; and (b) pay me the lump sum of
$950,000, less taxes and withholding, on March 31, 2010. The payments described in sub-paragraphs (a) and (b) are subject to forfeiture for my violation or breach of any part of this Agreement. I agree to provide Michele A. Gammer,
Associate General Counsel, Microsoft Corporation, One Microsoft Way, Redmond, WA 98052, with my current home address and telephone number through December 31, 2010. 
 3. I understand my rights and obligations under applicable law, and I agree, on behalf of myself and my marital community, heirs, executors, successors and assigns, to release (i.e., give up) all known and unknown
claims that I currently have against Microsoft and any of its current and former parents, subsidiaries, affiliates, related companies, joint ventures, their predecessors and successors, and with respect to each such entity, all of its past, present
and future officers, directors, agents and/or employees (collectively referred to as the “Released Parties”), except claims that the law does not permit me to waive by signing this Agreement. I understand and agree that this release
includes, but is not limited to, any and all claims or causes of action arising under: (1) any federal, state, local or foreign law relating to employment discrimination (including the Age Discrimination in Employment Act, 29 U.S.C. § 621
et seq., if applicable); (2) any federal, state, local or foreign law relating to employment or termination rights and/or benefits (including the Employee Retirement Income Security Act of 1974); and (3) any other basis for legal or
equitable relief whether based on express or implied contract, tort, statute or other legal or equitable ground. I further acknowledge that termination of my employment is permanent and the Released Parties have no obligation to notify me of
employment opportunities or to offer me employment in any capacity after the Resignation Date. I understand that I am not waiving any claims arising from events occurring after the date I sign this Agreement. For purposes of the preceding sentence,
and by way of example and not limitation, my separation from Microsoft is not an event occurring after the date I sign this Agreement, in as much as I have tendered my resignation and agreed to the separation in advance of signing this Agreement.

 Microsoft and its current and former parents, subsidiaries, affiliates, related companies, joint ventures, and successors release me,
my marital community, heirs, executors, and assigns from all known and unknown claims that they might currently have against us relating to my employment with and separation from Microsoft. 
  

 1 

 4. I agree that this Agreement is not an admission of guilt or wrongdoing by the Released Parties and
I acknowledge that the Released parties do not believe or admit that they have done anything wrong. I represent that I have not filed or caused to be filed any lawsuit, complaint, or charge against Microsoft or any of the Released Parties with
respect to any claim this Agreement purports to waive with any governmental agency or in any court, and that I will not file, cause to file, initiate, or pursue (except as otherwise provided in this Agreement or required by law) in such complaints,
charges, or lawsuits at any time hereafter other than to enforce my rights under this Agreement. 
 5. I agree to keep the details
surrounding and the terms of this Agreement in strict confidence except to: (a) my immediate family and financial and legal advisors on a need-to-know basis or (b) to the extent the company discloses the terms of the Agreement in any
filing with the Securities & Exchange Commission pursuant to the applicable securities laws and regulations. I also agree that I will not communicate with the media or press, directly or indirectly, except with the approval of Lisa Brummel,
and that I will not blog or otherwise author in any manner any online or printed publications or writings (including but not limited to any blog, posting, article, or book) or participate in any interviews, broadcasts, podcasts, or similar audio
interviews about Microsoft or its officers relating to any information or data considered confidential or proprietary under Microsoft’s Confidential Information Policy or the Employee Agreement that I previously signed on April 21, 2005.
The signature page of that Employee Agreement is attached as Exhibit A, along with the remainder of the form of agreement (pages 1 and 2) as Exhibit B. 
 I further agree that the confidentiality and non-disparagement obligations set forth in this Agreement are material terms of the Agreement, that Microsoft would not have entered into this Agreement without my
agreement to them, and that breach of these obligations could cause Microsoft irreparable injury. If Microsoft establishes a breach of these obligations, I agree that Microsoft shall be entitled to recover from me, at Microsoft’s option, either
the sum of $285,000 as liquidated damages, or actual damages, but not both types of damages, as well as reasonable attorney’s fees and costs incurred to enforce the Agreement. 
 6. I agree not to make any disparaging remarks about Microsoft, its officers or directors, or the Released Parties, including but not limited to statements relating to my employment with or
separation from Microsoft. If asked about my departure from Microsoft, I will respond only that “I have resigned to pursue other opportunities.” 
 I also agree, at Microsoft’s reasonable request, to cooperate with Microsoft, its subsidiaries and affiliates, and any of their officers, directors, agents, employees, attorneys and advisors in
Microsoft’s investigation of, preparation for, and prosecution or defense of any matter(s) brought by or against Microsoft or any Released Party, including without limitation litigation concerning: (a) facts or circumstances about which I
have any actual or alleged knowledge or expertise that was obtained during my employment with Microsoft or (b) any of my acts or omissions, real or alleged, of my employment with Microsoft. I further agree not to engage in any conduct creating
a conflict of interest between myself and Microsoft in any such matter. I agree that, upon reasonable notice, I will appear and provide full and truthful testimony in proceedings associated with the above referenced matters, provided that Microsoft
shall reimburse me for all reasonable travel expenses associated with the giving of testimony and shall work with me as reasonably practicable to schedule the activities contemplated by this paragraph so as not to unreasonably interfere with my
other commitments. 
  

 2 

 Nothing in this Agreement, the Microsoft Confidential Information Policy, or the Employee Agreement
shall be construed to prohibit me from testifying pursuant to a valid subpoena, court order, or as otherwise required by a governmental agency. I agree that before doing so, I will first provide Microsoft with notice in accordance with paragraph 7
of this Agreement. 
 7. I agree not to provide assistance to any current, former, or future Microsoft employee to initiate, pursue, or
raise any complaints, concerns, claims, or litigation of any kind against the Released Parties, unless compelled to do so by a valid subpoena or court order. If compelled to testify or otherwise provide evidence in any proceeding, I will provide
Microsoft with immediate notice of receipt of an order or other demand for my participation by giving notice to Michele A. Gammer, Associate General Counsel, Microsoft Corporation, One Microsoft Way, Redmond, WA 98052, in sufficient time for
Microsoft to oppose such testimony or participation. To the extent prohibited by law, this paragraph does not prevent me from participating in government investigations. 
 8. I understand and agree that, as a condition of receiving the consideration described in paragraph (2), I will not be entitled to any future employment with Microsoft or its subsidiaries. I further agree that I
will not apply for or otherwise seek future employment with Microsoft or its subsidiaries. 
 9. As required by my Microsoft Corporation
Employee Agreement, I agree to return to Microsoft by the Resignation Date my Microsoft cardkey(s), corporate American Express card and phone card, if any, and any other Microsoft property in my possession or control, including but not limited to
hardware, software, email files, source code, financial data, status reports, and any other proprietary or confidential data, documents and materials in any form or media. I acknowledge and agree that nothing in this Agreement is intended to, nor
shall it, relieve me of any obligation I have under the Microsoft Corporation Employee Agreement, which is attached as Exhibit A, that I previously signed and such agreement remains fully binding and enforceable according to its terms. 

10. I acknowledge that this Agreement contains the entire agreement of Microsoft and me as to matters discussed in it except as set forth in
paragraph 9 and that it merges any and all prior written and oral communications concerning those matters. Other than what is expressly stated in this Agreement, no different or additional promises or representations of any kind have been made to
induce me to sign this Agreement, which I sign freely and in the absence of any coercion or duress whatsoever. I understand that the terms of this Agreement may not be modified, amended or superseded except by a subsequent written agreement signed
by myself and the undersigned Microsoft representative. 
 11. I authorize Microsoft to withhold from any monies owed to me by Microsoft
at the time of my termination, via payroll deductions any and all monies due to Microsoft from me, including without limitation cash and travel advances, amounts due the Company Store, employee benefit plan deductions, other advances and any unpaid
credit or phone card charges. I understand that any such payroll deductions are for my convenience and for my full benefit. 
 12. I agree
that the laws of the State of Washington will govern in any action brought by either myself or Microsoft to interpret or enforce the terms of this Agreement, without regard to principles of conflicts of laws that would call for the application of
the substantive law of any jurisdiction other than the State of Washington. I further agree that any dispute arising in connection with the interpretation of this Agreement or otherwise arising from or relating to this Agreement, shall be resolved
in the following manner unless otherwise agreed to by the parties: (a) The parties agree to first attempt to resolve all

  

 3 

 
disputes through informal negotiations. The parties contending there is a breach or other issue arising from or related to this Agreement shall provide written notice to the other party
describing with specificity the nature of the breach of other issue. Within five (5) days after delivery of the written notice, the other party shall respond in writing stating its position. (b) If the parties are unable to resolve the
dispute through informal negotiations, the parties agree to resolve all disputes by binding arbitration before a qualified mutually selected arbitrator. If the parties are unable to mutually agree upon an arbitrator, they shall request a panel of
seven (7) arbitrators located in the State of Washington from the American Arbitration Association and alternately strike from that panel until only one is left. The party initiating the arbitration shall bear the burden of proof of breach and
actual damages; provided, however, that no actual damages need to be proven for the arbitrator to award the liquidated damages provided for in this Agreement. The prevailing party shall be entitled to reasonable attorney’s fees and cost and the
non-prevailing party shall bear the arbitration costs, including the fees of the arbitrator. The arbitrator shall issue a written decision within fifteen (15) days of the end of the hearing. The decision of the arbitrator shall be final and
binding and may be enforced and a judgment entered in any court of competent jurisdiction. The arbitration itself, and all testimony, documents, briefs, and arguments therein, shall be kept confidential. (c) Notwithstanding the foregoing
agreements in (a) and (b), the parties agree that breach of the confidentiality and non-disparagement provisions set forth in Paragraphs 5 and 6 could cause irreparable injury to Microsoft and that it will have the right to seek immediate
injunctive relief or other equitable relief enjoining any threatened or actual breach in a court in King County or the Western District of Washington. 
 13. The provisions of this Agreement are severable, and if any part of this Agreement is found to be unenforceable (with the exception of the Release contained in paragraph 3), the remainder of this Agreement will
remain fully valid and enforceable. To the extent any terms of this Agreement are called into question, all provisions shall be interpreted in a manner that would make them consistent with current law. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which taken together shall constitute one and the same instrument. 
 14. In compliance with the terms of the Age Discrimination in Employment Act and the Older Workers Benefit Protection Act, I expressly acknowledge that I have been given twenty-one (21) days to review this Agreement before signing it.
By executing and delivering this Agreement prior to the expiration of the twenty-one days, I agree that I have waived my rights to the full review period and acknowledge I have had adequate time to review this Agreement. I also understand that I
have the right to revoke this Agreement for a period of seven (7) days following my signature of it I understand that any such revocation must be in writing and must be received within the seven-day period by Michele A. Gammer. Should I revoke,
I will not be entitled to receive the payments described in Paragraph 2. I understand that I am advised to seek legal counsel prior to signing this Agreement. 
 I ACKNOWLEDGE THAT I HAVE CAREFULLY READ AND HAVE VOLUNTARILY SIGNED THIS AGREEMENT AND RELEASE, THAT I FULLY UNDERSTAND ITS FINAL AND BINDING EFFECT, THAT BY SIGNING I INTENDED TO FULLY AND FINALLY RELEASE ANY
AND ALL CLAIMS I MAY HAVE AGAINST MICROSOFT AND THE OTHER RELEASED PARTIES DESCRIBED IN PARAGRAPH THREE (3) ABOVE, AND THAT, PRIOR TO SIGNING THIS AGREEMENT AND RELEASE, I HAVE BEEN ADVISED OF MY RIGHT TO CONSULT, AND HAVE BEEN GIVEN ADEQUATE
TIME TO REVIEW MY LEGAL RIGHTS WITH AN ATTORNEY OF MY CHOICE. 
  

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	EMPLOYEE:	  	 	  	 
			
	 /s/ Christopher P. Liddell

	  	 	  	 12/1/09

	 Christopher P. Liddell
	  	  	 Date

			
	 MICROSOFT CORPORATION:
	  	 	  	 
			
	 By /s/ Lisa Brummel

	  	 	  	 12/1/09

	 Lisa Brummel
	  	  	 Date

	 Sr. Vice President, HR
	  	  	 

  

 52010 Senior Management Incentive Program

 EXHIBIT 10.59 
 CALLAWAY GOLF COMPANY 
 2010 SENIOR MANAGEMENT INCENTIVE PROGRAM 
 UNDER THE 2004 INCENTIVE PLAN 
 1. Purposes of the Program. This Callaway Golf Company 2010 Senior Management Incentive Program (“Program”), established pursuant to Section 12 of the Callaway
Golf Company Amended and Restated 2004 Incentive Plan (“Plan”), sets forth a program for payment of performance awards subject to the provisions of Section 11 of the Plan to those Participants designated for
participation and is intended to increase stockholder value and the success of the Company by attracting, retaining and motivating Participants to perform to the best of their abilities and to achieve the Company’s objectives. The
Program’s goals are to be achieved by providing such Participants with performance awards based on the achievement of goals relating to the performance of the Company or one of its business units or upon the achievement of other objectively
determinable performance goals. The Program is intended to permit the payment of awards under the Plan that may qualify as performance-based compensation under Section 162(m). Capitalized terms not defined herein shall have the meanings
provided in the Plan. 
 2. Definitions. 
 (a) “Award” has the meaning set forth in Section 4. 
 (b) “Base Salary” means, as to any Performance Period, Participant’s salary actually paid during the portion of the Performance Period during which the individual was a Participant (including without
limitation any compensation that is deferred by Participant into a Company-sponsored retirement or deferred compensation plan, but excluding any employer matching contributions by the Company associated with any such retirement or deferred
compensation plan and excluding any other Company contributions) and, except for the House Rent Allowance for Participants based in India, excludes all bonuses, incentives, commissions, expatriate premiums, fringe benefits (including without
limitation car allowances), relocation allowances, stock option grants, equity awards, employee benefits and other similar items of compensation. Such Base Salary shall be before both (i) deductions for taxes or benefits, and
(ii) deferrals of compensation pursuant to Company-sponsored plans. 
 (c) “Corporate Operating
Income” means the Company’s consolidated currency neutral operating income as reflected in its audited financial statements for the relevant period less (i) charges incurred in connection with the Company’s Global
Operations Strategy (GOS) and (ii) other unforeseen one-time charges as determined by the Committee. Currency neutral operating income will be derived by adjusting the actual 2010 P&L at Budgeted 2010 FX rates. 
 (d) “Corporate Sales” means the Company’s consolidated net sales as reflected in the
Company’s audited financial statements for the relevant period.
 (e) “Covered Employee”
means a Participant who falls within the definition of “covered employee” under Section 162(m). 
  

 1. 

 (f) “Eligible Position” means one of the following
(i) an officer of the Company, including its Chief Executive Officer, (ii) the most senior non-officer employees (employees with job classifications of E10 or above at the Company or Callaway Golf Sales Company, (iii) the officers of
each subsidiary of the Company based in the U.S., (iv) the most senior non-officer employees at Callaway Golf Ball Operations (“CGBO”) (with a pay grade of 13 or 14 or a pay grade of 12 and the title of Director),
(v) the Vice Presidents of Callaway Golf Interactive (“CGI”), (vi) the most senior officer at each of the Company’s foreign subsidiaries located in Europe, Japan, Canada, Korea, Australia and China, and
(vii) the Director-Level employees of the Company’s foreign subsidiaries listed in (vi) above who are recommended for participation by the most senior officer at such foreign subsidiary and approved by the VP, Sr. Human Resources.

 (g) “Goal Achievement Percentage” means the portion of the Target Goals applicable to a
Participant that are actually achieved, as provided in Section 5. 
 (h) “Financial Goal Achievement
Percentage” means, with respect to a Participant, the aggregate Goal Achievement Percentages for each of the Corporate Goals, with each multiplied by the weighting associated therewith, as provided in Section 5. 
 (i) “Overall Achievement Percentage” means, with respect to a Participant, the aggregate Financial Goal
Achievement Percentage together with the MBO Goal Achievement Percentage, with each multiplied by the weighting specified in the Payout Formula provided in Section 6(c). 
 (j) “Participant,” for the 2010 Performance Period, means a regular full or part-time employee who
(i) has been hired, promoted or transferred into an Eligible Position before October 1, 2010, and (ii) is an active employee or on an approved leave of absence at the Payout Date. 
 (k) “Payout Date” means the date on which Awards are paid pursuant to Section 6(f). 
 (l) “Payout Determination Date” means the date upon which the Committee or the Chief Executive Officer, as
applicable, determines the amounts payable pursuant to an Award, in accordance with Section 6. 
 (m)
“Performance-Based Compensation” means compensation that is intended to qualify as “performance-based compensation” within the meaning of Section 162(m). 
 (n) “Performance Goals” means the goals, based on performance criteria that are established by the Committee
or, for Participants who are not Covered Employees, by the Chief Executive Officer, in each case as provided for in Section 11.2 of the Plan. 
 (o) “Performance Period” means any January 1 through December 31. 
  

 2. 

 (p) “Section 162(m)” means Section 162(m) of the
Internal Revenue Code of 1986, as amended, or any successor to Section 162(m), as that Section may be interpreted from time to time by the Internal Revenue Service, whether by regulation, notice or otherwise. 
 (q) “Target Determination Cutoff Date” means the latest possible date that the Committee may set the
Performance Goals, Target Awards and maximum payout that will not jeopardize an Award’s qualification as Performance-Based Compensation. For the 2010 Performance Period, this date will be March 30, 2010. 
 3. Program Administration. 
 (a) The Committee shall be responsible for the general administration and interpretation of the Program and for carrying out its provisions. Subject to the requirements for qualifying compensation
as Performance-Based Compensation, the Committee may delegate specific administrative tasks to Company employees or others as appropriate for proper administration of the Program. Subject to the limitations on Committee discretion imposed under
Section 162(m), the Committee shall have such powers as may be necessary to discharge its duties hereunder, including, but not by way of limitation, the following powers and duties, but subject to the terms of the Program: 
 (i) discretionary authority to construe and interpret the terms of the Program, and to determine eligibility, Awards and the amount,
manner and time of payment of any Awards hereunder; 
 (ii) to prescribe forms and procedures for purposes of Program
participation and distribution of Awards; and 
 (iii) to adopt rules, regulations and bylaws, to formally amend the
Program and to take such actions as it deems necessary or desirable for the proper administration of the Program. 
 (b)
Any rule or decision by the Committee that is not inconsistent with the provisions of the Program shall be conclusive and binding on all persons, and shall be given the maximum deference permitted by law. 
 4. Award Determinations. Each Participant under the plan shall be granted an award of a contingent right to a future cash
payment (an “Award”), the payment of which is contingent upon the Company’s financial performance as well as the Participant’s individual performance objectives (“MBOs”). For each Participant, the Company
has established a “Target Award” expressed as a percentage of a Participant’s Base Salary. The Target Award represents the amount a Participant could earn if the Company achieves its target financial performance goals and the
Participant achieves 100% of the Participant’s MBOs. Performance above or below the targeted goals can result in an award above or below the Target Award. The “Maximum Award” a Participant can earn is equal to 150% of the
Target Award and achievement of the minimum performance criteria for the payment of an Award results in a “Threshold Award” equal to 50% of the Target Award. The Threshold Award, Target Award and Maximum Award for each Participant
is set forth below by position: 
  

									
	 Level
	  	 Position
	  	Threshold
Award	  	Target
Award	  	Maximum
Award
	 1.
	  	CEO (Chief Executive Officer - Callaway Golf)	  		  		  	
					
	 2.
	  	Sr. Exec. VP (Vice President) - Callaway Golf, Sr. VP reporting to the CEO – Callaway Golf & Sr. VP, U.S. Sales	  		  		  	
					
	 3.
	  	Sr. VP – Callaway Golf, President of Asia and President of Europe, Middle East and Africa	  		  		  	
					
	 4.
	  	VP – Callaway Golf & CGBO; most senior officer of Canada, Korea, Australia, CGI & China	  		  		  	
					
	 5.
	  	All other senior level participants	  		  		  	

  

 3. 

 5. Performance Goal Determinations. Awards under this Program are contingent
upon the achievement of the Company’s threshold financial performance goals and each Participant’s Award is based on the overall achievement of these financial performance goals as well as the Participant’s MBOs. The Company will
establish for the 2010 Performance Period the financial performance goals for this Program as well as each Participant’s MBOs prior to the Target Determination Cutoff Date as provided in section 2(q). 
 (a) Minimum Corporate Operating Income. A minimum level of Corporate Operating Income of
$             million is required before any Award will be paid under this Program to any Participant regardless of any other performance measure. 
 (b) Corporate Goals. All Participants’ Awards will be based, at least in part, on Performance Goals relating to Company
Performance based on Corporate Operating Income and Corporate Sales (“Corporate Goals”). For the 2010 Performance Period, the Corporate Goals are as follows (expressed in millions): 
  

							
	 	  	THRESHOLD
GOAL	  	TARGET
GOAL	  	MAXIMUM
GOAL
	 Corporate Operating Income $
	  		  		  	
	 Corporate Sales $
	  		  		  	

 For purposes of calculating the Goal Achievement Percentage with respect to the Corporate Goals,
Company performance below the “Threshold Goal” or above the “Maximum Goal” in the table above will be disregarded. The Committee shall determine the Goal Achievement Percentage by reference to the
“Target Goal.” The Goal Achievement Percentage at the Threshold Goal is 50%; the Goal Achievement Percentage at the Target Goal is 100%; and the Goal Achievement Percentage at the Maximum Goal is 150%. Performance between the
Threshold Goal and the Target Goal shall be interpolated on a straight-line basis; performance between the Target Goal and the Maximum Goal shall also be interpolated on a straight-line basis. 
  

 4. 

 (c) Weighting. Corporate Operating Income shall be weighted 2.75x Corporate
Sales. 
 (d) MBOs. The Committee shall approve the MBOs for each Participant who is a Covered Employee. The Committee or
the Chief Executive Officer shall approve the MBOs for all other Participants who are not Covered Employees. 
 6. Payout
Determination. 
 (a) Payout Determination and Certification. On the Payout Determination Date, (i) the
Committee shall certify in writing (which may be by approval of the minutes in which the certification was made) the Financial Goal Achievement Percentage and the MBO Goal Achievement Percentage for each Covered Employee and (ii) the Committee
or the Chief Executive Officer shall approve the Financial Goal Achievement Percentage and the MBO Goal Achievement Percentage for each other Participant who is not a Covered Employee. 
 (b) Maximum Payout. Subject to the maximum payout specified by Section 12 of the Plan, for the 2010 Performance Period,
if the Financial Goal Achievement Percentage is not greater than 100%, then the maximum amount of a Participant’s Award to be paid under this Program shall be the product of (i) the Participant’s Financial Goal Achievement Percentage
multiplied by (ii) the Participant’s Target Award, multiplied by 1.25. If the Financial Goal Achievement Percentage applicable to a Participant is greater than 100%, then the maximum amount of a Participant’s Award to be paid under
this Program shall be the product of (x) the Participant’s Financial Goal Achievement Percentage multiplied by (y) the Participant’s Target Award. 
 (c) Payout Formula. Notwithstanding any contrary provision of the Program, the Committee shall, as appropriate, reduce the maximum amount payable to any Participant under Section 6(b) above
under the following formula (the “Payout Formula”). The Corporate Goals shall constitute 75% of the Award (with Corporate Operating Income accounting for 55% of the Award and the Corporate Sales accounting for 20% of the
Award) and the Participant’s satisfaction of his or her MBOs shall constitute 25% of the Award (based on the Committee’s or Chief Executive Officer’s evaluation of a Participant’s satisfaction of his or her MBOs). Based upon this
Payout Formula, the Financial Goal Achievement Percentage and the MBO Goal Achievement Percentage, an Overall Achievement Percentage shall be determined for each Participant. The amount payable to each participant under the Program shall be equal to
the product of the (i) Overall Achievement Percentage, (ii) multiplied by the Participant’s Target Award, and (iii) multiplied by the Participant’s Base Salary. Notwithstanding the foregoing, a Participant’s Award may
be reduced or eliminated in its entirety based on the Committee’s (or, in the case of a Participant who is not a Covered Employee, the Chief Executive Officer’s) evaluation of the Participant’s overall job performance. 
 (d) Right to Receive Payment. Each Award under the Program shall be paid solely from the general assets of the Company.
Nothing in this Program shall be construed to create a trust or to establish or evidence any Participant’s claim of any right to payment of an Award other than as an unsecured general creditor with respect to any payment to which he or

  

 5. 

 she may be entitled. At no time before the actual distribution of funds to Participants under the Program
shall any Participant accrue any vested interest or right whatsoever under the Program except as otherwise stated in this Program. 
 (e) Form of Distributions. The Company shall distribute all Awards to the Participant in cash, unless the Committee determines to substitute shares of the Company’s Common Stock for the cash payment in accordance with
Section 12 of the Plan. 
 (f) Timing of Distributions. Subject to Section 6(g)
below, the Company shall distribute amounts payable to Participants as soon as is practicable following the determination and written certification of the Award for a Performance Period, but in no event later than 2  1/2 months after the end of the calendar year that includes the
applicable Payout Determination Date. 
 (g) Deferral. The Committee may defer payment of Awards, or any
portion thereof, to Participants as the Committee, in its discretion, determines to be necessary or desirable to preserve the deductibility of such amounts under Section 162(m). 
 (h) Withholding. In accordance with Section 13 of the Plan, the Company may withhold from the Awards payable to
Participants under this Program amounts necessary to satisfy any federal, state, local or foreign tax withholding obligation relating to such payments. 
 7. Term of Program. The Program shall become effective on January 1, 2010 and shall apply to the 2010 Program year. 
 8. Amendment and Termination of the Program. The Committee may amend, modify, suspend or terminate the Program, in whole or in
part, at any time, including adopting amendments deemed necessary or desirable to correct any defect or to supply omitted data or to reconcile any inconsistency in the Program or in any Award granted hereunder; provided, however, that no amendment,
alteration, suspension or discontinuation shall be made which would (i) increase the amount of compensation payable pursuant to such Award or (ii) cause compensation that is, or may become, payable hereunder to fail to qualify as
Performance-Based Compensation. 
 9. Governing Plan Document. The Program is subject to all the provisions of the
Plan and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted by the Committee, the Board or the Company pursuant to the Plan. In the event of any conflict between the
provisions of this Program and those of the Plan, the provisions of the Plan shall control. 
  

 6.

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