Document:

exv10w2

Exhibit 10.2

SSI INVESTMENTS III LIMITED

SKILLSOFT PLC

EXPENSES REIMBURSEMENT AGREEMENT

William Fry

Solicitors

Fitzwilton House

Wilton Place

Dublin 2

www.williamfry.ie

© William Fry 2010

020533.0001.DMF/MAT

 

 

THIS
AGREEMENT is made on 11 February 2010

BETWEEN:

SSI INVESTMENTS III LIMITED

a company incorporated in Ireland with registered
number 480477 and having its registered office at
Block 3, The Harcourt Centre, Harcourt Road,
Dublin 2, Ireland

(hereinafter referred to as “SSI”)

— and —

SKILLSOFT public limited company

a public limited company incorporated in Ireland
with registered number 148294 and having its
registered office at Belfield Office Park,
Clonskeagh, Dublin 4, Ireland

(hereinafter referred to as “Skillsoft”)

RECITALS:

	A.	 	SSI intends to acquire Skillsoft on the terms set out in the Rule 2.5 Announcement and
Skillsoft intends to agree to reimburse costs and expenses incurred and to be incurred by SSI
for the purposes of, in preparation for or in connection with the Acquisition in certain
circumstances if the Acquisition does not proceed.

	B.	 	This Agreement sets out the agreement between the parties as to the reimbursement in certain
circumstances by Skillsoft of costs and expenses incurred and to be incurred by SSI for the
purposes of, in preparation for or in connection with the Acquisition.

	C.	 	Capitalised terms and some other words and expressions used in this Agreement are defined in
Clause 4.

NOW IT IS HEREBY AGREED as follows:

	1.	 	Commencement of Clause 2
	 
	 	 	Clause 2 of this Agreement shall not have effect unless the Rule 2.5 Announcement is issued
on or before 09:30 am (United States Eastern Time) on the day next following the date
hereof.

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	2.	 	Reimbursement
	 
	2.1	 	Subject to, and in consideration of, SSI announcing a firm intention to make the Acquisition
in the Rule 2.5 Announcement, Skillsoft agrees to pay to SSI, if any one or more of the Events
described in Clause 2.2 occur, an amount equal to all specific, quantifiable third party
(including vouched out of pocket expenses incurred by third party advisers only) costs and
expenses incurred by SSI for the purposes of, in preparation for or in connection with the
Acquisition, including, without limitation:

	        	2.1.1	 	exploratory work carried out in contemplation of and in connection with
the Acquisition;
	 
	 	2.1.2	 	legal, financial and commercial due diligence;
	 
	 	2.1.3	 	arranging financing (with associated hedging and related expenses); and
	 
	 	2.1.4	 	engaging advisers to assist in the process;

	 	 	provided that the gross amount payable to SSI pursuant to this Agreement shall not, in any
event, exceed such sum as is equal to 1% of the total value of the entire issued share
capital (excluding, for the avoidance of doubt, any interest in such share capital of
Skillsoft (including in the form of American Depositary Shares) held by Stockbridge Fund,
L.P.) as ascribed by the terms of the Acquisition as set out in the Rule 2.5 Announcement.
The amount payable by Skillsoft to SSI under this Clause 2.1 shall not include any Value
Added Tax attributable to such third party costs to the extent that it is recoverable by
SSI.
	 
	2.2	 	The Events for the purposes of Clause 2.1 are any one or more of the following:

	        	2.2.1	 	the Board (or any one or more of the members thereof) withdraws, adversely
modifies or qualifies its recommendation to Skillsoft Shareholders to vote in favour
of the Scheme (to include any public announcement by Skillsoft of a recommendation or
intention to recommend a Competing Offer); or
	 
	 	2.2.2	 	Skillsoft wilfully takes or omits to take any action, such as failing to
post a Scheme Circular, preventing Skillsoft Shareholders from voting at any meetings
to approve the Scheme or any related resolutions, withdrawal of the Scheme,
adjourning any Court hearing or shareholders’ meeting, failing to issue the petition
to approve the Scheme, unilaterally altering the terms and conditions of the Scheme,
or failing to deliver the Court Order and minute of reduction of capital to the
Registrar of Companies (in any such case without the consent of SSI); or
	 
	 	2.2.3	 	prior to the Scheme being withdrawn by Skillsoft or lapsing in accordance
with its terms, a Competing Offer is announced (under Rule 2.4 or 2.5) and
subsequently made and that Competing Offer or a Competing Offer in which that
Competing Party is interested or participates subsequently becomes effective or
unconditional within the 18 months of such lapse or withdrawal.

	2.3	 	Any request by SSI for a Reimbursement Payment shall be:

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	        	2.3.1	 	notified in writing to Skillsoft no later than 30 days following:

	 	 (a)	 	in the case of Clauses 2.2.1 and 2.2.2, to include in the
case of withdrawal of the Scheme by Skillsoft, SSI becoming aware of the
Event or;
	 
	 	 (b)	 	in the case of Clause 2.2.3, SSI becoming aware that such
Competing Offer has become effective; and

	        	2.3.2	 	accompanied and / or followed by written invoices or written documentation
supporting the request for a Reimbursement Payment; and
	 
	 	2.3.3	 	subject to satisfactory compliance with Clause 2.3.2, satisfied in full by
payment in full by Skillsoft to SSI in cleared, immediately available funds within 14
calendar days following such receipt of such invoices or documentation.

	2.4	 	Notices under this Agreement shall be served as provided in the Transaction Agreement.
	 
	2.5	 	For the avoidance of doubt:

	        	2.5.1	 	the refusal by Skillsoft to agree an extension to the date set out in
Condition 1 to the Rule 2.5 Announcement (namely 16 July 2010) shall not constitute a
withdrawal, or an adverse modification, of the Board’s recommendation of the
Acquisition; and
	 
	 	2.5.2	 	where used in this Agreement in the context of the Scheme:

	 	 (a)	 	the term “lapse” shall mean any of the Conditions
becoming incapable of satisfaction and “lapsing” shall be construed
accordingly;
	 
	 	 (b)	 	the term “withdraw” shall include (i) an application to
Court to adjourn Court proceedings on the Scheme either generally without a
return date or to a date after 16 July 2010 and (ii) an adjournment of any
shareholders’ meeting either generally without an adjourned date or to a
date after 16 July 2010 and “withdrawal” shall be construed accordingly.

	3.	 	General
	 
	3.1	 	The invalidity, illegality or unenforceability of a provision of this Agreement does not
affect or impair the continuance in force of the remainder of this Agreement.
	 
	3.2	 	This Agreement shall be construed in accordance with and governed by the laws of Ireland. The
parties submit to the exclusive jurisdiction of the Irish Courts in relation to any disputes
arising out of this Agreement.
	 
	3.3	 	This Agreement may be executed by the parties on separate counterparts, but shall not be
effective until each party has executed at least one counterpart. Each

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	 	 	counterpart shall constitute an original of this Agreement, but the counterparts shall
together constitute one and the same instrument.
	 
	3.4	 	Each party hereto represents and warrants to the other that, assuming due authorisation,
execution and delivery by the other party hereto, this Agreement constitutes the valid and
binding obligations of that party.
	 
	3.5	 	Each party hereto confirms and agrees that no provision of the Transaction Agreement shall
supersede, vary or otherwise amend the provisions of this Agreement.
	 
	4.	 	Definitions
	 
	4.1	 	In this Agreement (including in the Recitals), the following expressions shall have the
following meaning:
	 
	 	 	“Acquisition”, the proposed acquisition by SSI of Skillsoft by means of the Scheme, as
described in, and on the terms and conditions of, the Rule 2.5 Announcement;
	 
	 	 	“Act”, the Irish Takeover Panel Act 1997 (as amended);
	 
	 	 	“Acting in Concert”, shall have the meaning given to that term in the Act;
	 
	 	 	“Associate”, shall have the meaning given to that term in the Rules;
	 
	 	 	“Board”, the board of directors of Skillsoft (or, where a director is considered not to be
independent for the purposes of Rule 3 or if restricted from voting on the Scheme or a
Competing Offer at a meeting of the Board pursuant to the Articles of Association of
Skillsoft, a duly constituted and authorised committee thereof consisting of all other
directors);
	 
	 	 	“Business Day”, any day, other than a Saturday, Sunday or public holiday in Ireland or the
State of New York;
	 
	 	 	“SSI’s Group” means SSI and any bodies corporate which are Holding Companies of SSI or
Subsidiaries or subsidiary undertakings, in each of SSI or of any Holding Company of SSI;
	 
	 	 	“Competing Offer”, means any one or more offers by or on behalf of a party (a “Competing
Party”) other than SSI (or an Associate of SSI or a person Acting in Concert with SSI)
which is publicly disclosed and which, if completed, would result in the Competing Party
(whether alone or with its Associates and concert parties) holding or controlling more
than 50% of:

	        	(i)	 	the voting and other equity securities of Skillsoft (whether in
Skillsoft Shares, Skillsoft ADRs or Skillsoft ADSs); or
	 
	 	(ii)	 	all or substantially all the assets of Skillsoft;

	        	“Competing Party” means a person other than SSI (or an Associate of SSI or a person Acting
in Concert with SSI) who alone or with or through others announces a Competing Offer prior
to the withdrawal or lapse of the Scheme;

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	 	 	“Conditions”, the conditions to the Scheme and the Acquisition set out in Appendix I to
the Rule 2.5 Announcement, and “Condition” means any one of the Conditions;
	 
	 	 	“Holding Company”, shall have the meaning given to it in the Transaction Agreement;
	 
	 	 	“Offer Period”, shall have the meaning given to it in the Rules;
	 
	 	 	“Panel”, the Irish Takeover Panel;
	 
	 	 	“Reimbursement Payment(s)”, the payment(s) provided for in Clause 2.1;
	 
	 	 	“Rule 2.5 Announcement”, the announcement of the Acquisition to be made in the Agreed Form
pursuant to Rule 2.5 of the Rules;
	 
	 	 	“Rules”, the Irish Takeover Panel Act, 1997, Takeover Rules, 2007, as amended;
	 
	 	 	“Scheme”, the proposed scheme of arrangement under Section 201 of the Companies Act 1963
and the capital reduction under Sections 72 and 74 of the Companies Act 1963 to effect the
Acquisition, including any revision thereof;
	 
	 	 	“Skillsoft”, Skillsoft plc;
	 
	 	 	“Skillsoft ADRs”, American Depositary Receipts evidencing Skillsoft ADSs;
	 
	 	 	“Skillsoft ADSs”, American Depositary Shares each representing one Skillsoft Share and
evidenced by Skillsoft ADRs;
	 
	 	 	“Skillsoft Shareholders”, the holders of Skillsoft Shares;
	 
	 	 	“Skillsoft Shares”, the ordinary shares of €0.11 each in the capital of Skillsoft;
	 
	 	 	“Subsidiary”, shall have the meaning given to it in the Transaction Agreement;
	 
	 	 	“subsidiary undertaking”, shall have the meaning given to it in the Transaction Agreement;
and
	 
	 	 	“Transaction Agreement”, the transaction agreement dated as of the date hereof between SSI
and Skillsoft.
	 
	4.2	 	In this Agreement, the expression “offer” shall include:

	        	4.2.1	 	an offer, scheme of arrangement, contract, merger, redemption, share swap,
re-capitalisation or other transaction of any nature whatsoever made by or on behalf
of a party (other than SSI or any party Acting in Concert with SSI) which, if
completed, would result in such third party or its Associates holding more than 50%
of:

	 	 (a)	 	the voting and other equity securities of Skillsoft; or
	 
	 	 (b)	 	all or substantially all the assets of Skillsoft; and

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	        	4.2.2	 	a merger or other transaction pursuant to SI 137/1987, SI 157/2008,
Council Regulation (EC) No 2157/2001 or SI 21/2007.

	4.3	 	In this Agreement:

	        	4.3.1	 	reference to the word “person” is deemed to include references to natural
persons, firms, partnerships, companies, corporations, associations, bodies
corporate, trusts and investment funds (in each case whether or not having a separate
legal personality);
	 
	 	4.3.2	 	reference to the word “writing” is deemed to include reference to
electronic communications such as fax and email.

	4.4	 	In this Agreement, references to time are to Irish times unless otherwise specified.

IN WITNESS whereof the parties have executed these presents the day and year above written.

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	SIGNED

on behalf of SSI INVESTMENTS III LIMITED 

by its authorised signatory
in the presence of:
	 	 
	 

	 	/s/ Michael C. Ascione
	 

	 	 
	 

	 	Authorised Signatory (Signature)
	 
	 	 
	 

	 	Michael C. Ascione
	 

	 	 
	/s/ Paul Egan
	 	Print name
	
 

Witness (Signature)

	 	 
	 
	 	 
	Paul
Egan
	 	 
	
 

Print name

	 	 
	 
	 	 
	South
Bank House, Barlow Street, Dublin 4
	 	 
	
 

Print address

	 	 
	 
	 	 
	SIGNED 

on behalf of SKILLSOFT plc 

by its authorised signatory
in the presence of:
	 	 
	 

	 	/s/ Charles E. Moran

	 

	 	 
	 

	 	Authorised Signatory (Signature)
	 
	 	 
	 

	 	Charles E. Moran
	 

	 	 
	/s/ Thomas
J. McDonald

	 	Print name
	
 

Witness (Signature)

	 	 
	 
	 	 
	Thomas
J. McDonald
	 	 
	
 

Print name

	 	 
	 
	 	 
	200
Beach Road, Unit #20, Tequesta, FL 33469
	 	 
	
 

Print address

	 	 

8exv10w15

EXHIBIT 10.15

Year 2010

Annual

Management Incentive

Program

(Executive Officers Only)

USG Corporation

 

 

 

PURPOSE

To enhance USG Corporation’s ability to attract, motivate, reward and retain key employees of
the Corporation and its operating subsidiaries and to align management’s interests with those of
the Corporation’s stockholders by providing incentive award opportunities to managers who make a
measurable contribution to the Corporation’s business objectives.

INTRODUCTION

This Annual Management Incentive Program (the “Program”) is in effect from January 1, 2010
through December 31, 2010.

ELIGIBILITY

Individuals eligible for participation in this Program are the Corporation’s executive
officers. This Program is executive officers only.

GOALS

For the 2010 Annual Management Incentive Program, Consolidated Net Earnings and consolidated,
subsidiary and profit center Focus Targets will be determined by the USG Board of Directors after
review by the Compensation and Organization Committee of the USG Board of Directors (the
“Committee”) . The Committee will consider recommendations submitted from management of USG
Corporation.

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AWARD VALUES

For this Program, position target incentive values are based on level of accountability and
are expressed as a percent of approved annualized salary. Resulting award opportunities represent
a fully competitive incentive opportunity for 100% (target) achievement of goals:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Position Title or	 	 	Position Target	 
	 	 	 	 	 	Salary Reference Point	 	 	Incentive	 
	 	 	•	 	 	Chairman & CEO, USG Corporation
	 	 	 	125	%	 
	 	 	•	 	 	President & Chief Operating Officer, USG Corporation
	 	 	 	90	%	 
	 	 	•	 	 	Executive Vice President & Chief Financial Officer, USG Corporation
	 	 	 	70	%	 
	 	 	•	 	 	Executive Vice President & General Counsel, USG Corporation
	 	 	 	 	 	 
	 	 	•	 	 	Senior Vice President; President & CEO, L & W Supply Corp
	 	 	 	50	%	 
	 	 	•	 	 	Senior Vice President, Human Resources, USG Corporation
	 	 	 	 	 	 
	 	 	•	 	 	Senior Vice President & Controller, USG Corporation
	 	 	 	 	 	 
	 	 	•	 	 	Senior Vice President; President, USG Building Systems
	 	 	 	 	 	 
	 	 	•	 	 	Senior Vice President; President, USG International
	 	 	 	 	 	 
	 	 	•	 	 	Senior Vice President and Chief Technology Officer, USG Corporation
	 	 	 	 	 	 
	 	 	•	 	 	Vice President and Corporate Secretary & Associate General Counsel, USG
	 	 	 	45	%	 
	 	 	 	 	 	Corporation
	 	 	 	 	 	 
	 	 	•	 	 	Vice President & Treasurer, USG Corporation
	 	 	 	 	 	 
	 	 	•	 	 	Vice President and Chief Information Officer, USG Corporation
	 	 	 	 	 	 
	 	 	•	 	 	Vice President and Associate General Counsel, USG Corporation
	 	 	 	 	 	 
	 	 	•	 	 	Vice President, Employee Benefits, Safety and Corporate Services, USG
Corporation
	 	 	 	 	 	 
	 

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	 	 	AWARDS

	 	 	Incentive awards for all participants in this Program will be reviewed and approved by the
Committee. For all participants, the annual incentive award par opportunity is the annualized
salary approved by March 31, 2010 that is in effect on April 1, 2010 multiplied by the applicable
position target incentive value percent.
	 
	 	 	Incentive awards for 2010 will be based on a combination of the following elements:

	I.	 	CONSOLIDATED NET EARNINGS                    
         40% OF INCENTIVE

	 	 	Consolidated Net Earnings will be as reported on the Corporation’s year-end financial
statements with adjustments for significant non-operational charges. Such adjustments will be
defined by March 31, 2010 and have in the past been for Fresh Start Accounting, asbestos,
restructuring charges, bankruptcy expenses and the cumulative impact of new accounting
pronouncements. For all participants, this portion of the award represents 40% of the incentive
par. This portion of the award will be paid from a pool funded by Consolidated Net Earnings
results according to the following schedule:

	 	 	 
	$0 to $75 Million Net Earnings

	 	2.41% of this tier will fund the pool
	 	 	 	 
	$75+ to $150 Million Net Earnings

	 	2.05% of this tier will fund the pool
	 	 	 	 
	$150+ to $400 Million Net Earnings

	 	1.73% of this tier will fund the pool
	 	 	 	 
	$400+ to $575 Million

	 	1.45% of this tier will fund the pool

	 	 	Should consolidated net earnings be negative this pool will not be funded and payout for this
element will be zero. This is the same pool from which awards based on Consolidated Net Earnings
will be paid under the USG Corporation 2010 Annual Management Incentive Program for employees,
other than executive officers, occupying positions in Broadband 11 or higher (the “Other Program”).
Each tier of earnings is calculated separately and added together to determine the total pool.
This amount is then divided by the sum of the Net Earnings pars for all participants in this
Program and the Other Program. The factor derived from this method is then applied to each
participant’s Net Earnings pars to determine the individual award for this segment. For each
executive officer, (i) their individual Net Earnings par shall be determined by March 31, 2010, and
(ii) their individual factor shall be determined by taking into account the Net Earnings par of all
participants eligible to participate in the Program and the Other Program as of March 31, 2010 and
based on the sum of all such participants’ Net Earnings par as determined by March 31, 2010.
Notwithstanding the prior sentence nor any other provision in this Program, each executive
officer’s factor may be decreased, but not increased, due to changes in the total Program and Other
Program par after March 31, including, but not limited to, changes triggered by the addition or
removal of a participant from the Program or the Other Program or changes in any participant’s Net
Earnings par.

	II.	 	FOCUS TARGETS:                
                                        40% OF INCENTIVE

	 	 	Focus Targets will be measurable, verifiable and derived from the formal strategic planning
process. For 2010, Focus Targets are expected to include Total Overhead, Customer Satisfaction,
Cost Reduction, Business Unit Gross Profit or other operational priorities. The Focus Targets will
be determined by March 31, 2010. The award adjustment factor for this segment will range from 0.5
(after achieving a minimum threshold performance level) to 2.0 for maximum attainment.

	 	 	The weighting on any individual Focus Target generally will be in 5% increments and not be less
than 10%.The weighting of all assigned Focus Targets will equal 40% of the individual’s total par.

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	III.	 	INDIVIDUAL PERFORMANCE:         
                         20% OF INCENTIVE

	 	 	Based upon individual performance results in relation to established Corporation or other
performance goals.

	 	 	 
	Performance Levels	 	Payout %
	Exceeds Expectations
	 	up to 150%
	Meets Expectations
	 	up to 110%
	Needs Development/ Partially Achieved
	 	50% - 100%
	Does Not Meet expectations
	 	0%

PAYOUT CRITERIA

	 	 	No awards will be paid under this Program unless the Corporation’s consolidated EBITDA for
2010 is at least equal to the amount of awards under this Program and the Other Program.
	 
	 	 	EBITDA is defined as net earnings before (1) interest, taxes, depreciation and amortization, (2)
the annual Long-Term Incentive Plan non-cash charge, (3) other non-cash charges, such as asset
impairments, and (4) restructuring charges.
	 
	 	 	Total payments to a participant under this Program must be two times or less of the participant’s
par value amount. No payments will be made beyond this two times maximum payment level.

WEIGHTINGS OF PROGRAM ELEMENTS

	 	 	All participants in this Program, including the most senior executives, will have the same
overall weightings of 40% on Consolidated Net Earnings, 40% on Operating Focus Targets and 20% on
Individual Performance

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GENERAL PROVISIONS

	1.	 	If the Board, or an appropriate committee thereof, has determined that any fraud
or intentional misconduct by an executive officer was a significant contributing factor to
the Corporation having to restate all or a portion of its financial statement(s), the Board
or committee shall take, in its discretion, such action as it deems necessary to remedy the
misconduct and prevent its recurrence. In determining what remedies to pursue, the Board or
committee will take into account all relevant factors, including whether the restatement was
the result of fraud or intentional misconduct. The Board may, to the extent permitted by
applicable law, require reimbursement of any award under this Program paid to the executive
officer after January 1, 2010, if and to the extent that a) the amount of the award was
calculated based upon the achievement of certain financial results that were subsequently
reduced due to a restatement, b) the executive officer engaged in any fraud or intentional
misconduct that caused or contributed to the need for the restatement, and c) the amount of
the compensation that would have been awarded to the executive officer under this Program
had the financial results been properly reported would have been lower than the amount
actually awarded. The remedy specified herein shall not be exclusive and shall be in
addition to every other right or remedy at law or in equity that may be available to the
Corporation. If this paragraph 1 is held invalid, unenforceable or otherwise illegal, the
remainder of this Program shall be deemed to be unenforceable due to a failure of
consideration, and the executive officer’s rights to any incentive compensation that would
otherwise be awarded under this Program shall be forfeited.
	 
	 	 	In order to be entitled to an award of compensation under this Program, an executive officer
must execute a written acknowledgement that such award shall be subject to the terms and
conditions of this paragraph 1.
	 
	2.	 	The Committee reserves the right to adjust award amounts under this Program down based on its
assessment of the Corporation’s overall performance relative to market conditions, provided,
however, in no event may the Committee adjust an award under this Program upward.
	 
	3.	 	The Committee shall review and approve the awards recommended eligible participants in this
Program. The Committee shall submit to the Board of Directors, for its ratification, a report
of the awards for all eligible participants approved by the Committee in accordance with the
provisions of the Program.
	 
	4.	 	The Committee shall have full power to make the rules and regulations with respect to the
determination of achievement of goals and the distribution of awards. No awards will be made
until the Committee has certified financial achievements and applicable awards in writing.
	 
	5.	 	The judgment of the Committee in construing this Program or any provisions thereof, or in
making any decision hereunder, shall be final and conclusive and binding upon all employees of
the Corporation and its subsidiaries whether or not selected as beneficiaries hereunder, and
their heirs, executors, personal representatives and assignees.

5

 

	6.	 	Nothing herein contained shall limit or affect in any manner or degree the normal and usual
powers of management, exercised by the officers, and the Board of Directors or committees
thereof, to change the duties or the character of employment of any employee of the
Corporation or to remove the individual from the employment of the Corporation at any time,
all of which rights and powers are expressly reserved.
	 
	7.	 	The awards made to employees shall become a liability of the Corporation or the appropriate
subsidiary as of December 31, 2010 and all payments to be made hereunder will be made as soon
as practicable, but in any event before two and one half months after December 31, 2010, after
said awards have been approved by the Committee.

	 	ADMINISTRATIVE GUIDELINES

	1.	 	Award values will be based on annualized salary in effect on April 1, 2010 for each
qualifying participant. Any change in duties, dimensions or responsibilities of a current
position resulting in an increase or decrease in salary range reference point or market rate
will result in a pro-rata incentive award. Respective reference points, target incentive
values or goals will be applied based on the actual number of full months of service at each
position.
	 
	2.	 	No award is to be paid to any participant who is not a regular full-time employee, (or a part
time employee as approved by the Senior Vice President, Human Resources, USG Corporation) in
good standing at the end of the calendar year to which the award applies. However, if an
eligible participant with three (3) or more months of active service in the Program year
subsequently retires, becomes disabled, dies, is discharged from the employment of the Company
without cause, or is on an approved unpaid leave, the participant (or beneficiary) may be
recommended for an award which would otherwise be payable based on goal achievement, prorated
for the actual months of active service during the year.
	 
	3.	 	Employees participating in any other incentive or bonus program of the Corporation or a
Subsidiary who are transferred during the year to a position covered by this Program will be
eligible to receive a potential award prorated for actual full months of service in the two
positions with the respective incentive program and target incentive values to apply.
	 
	4.	 	In the event of transfer of an employee from an assignment which does not qualify for
participation in any incentive or bonus plan to a position covered by this Program, the
employee is eligible to participate in this Program with any potential award prorated for the
actual months of service in the position covered by this Program during the year. A minimum
of three months of service in the eligible position is required.
	 
	5.	 	Participation during the current Program year for individuals employed from outside the
Corporation is possible with any award to be prorated for actual full months of service in the
eligible position. A minimum of three full months of eligible service is required for award
consideration.
	 
	6.	 	Exceptions to established administrative guidelines can only be made by the Committee.

6

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