Document:

Separation Agreement

 Exhibit 10.1 
 

 
  

			
	Date:	  	June 2, 2008
	From:	  	Richard L. Scott
	To:	  	John E. McNulty
	Re:	  	Separation and Release Agreement

 This Separation and Release Agreement (this “Agreement”) is provided to you in connection with the
separation of your employment from Secure Computing Corporation (“Secure”). 
 Background. Your employment with Secure ended on May 12,
2008 (the “Termination Date”). You and Secure desire to resolve any and all disputes between us and provide for an amicable separation of employment. Accordingly, with the intent to be legally bound, you and Secure now agree as follows.

 Final Pay and Benefits. You have been paid your final, annualized base pay through the Termination Date. Your benefits have been paid through the
Termination Date. 
 Severance Benefits. If you sign this Agreement, and do not exercise your rights to revoke or rescind certain of your waivers as
described below, Secure will provide you with the following (the “Severance Benefits”): 
  

	 	•	 	 You will receive a lump sum payment equal to $681,500 (representing eighteen (18) months of base salary less any amounts previously paid to you for the period
following your Termination Date) less required deductions, including deductions for applicable state and federal taxes. 

  

	 	•	 	 You will be eligible for vesting and exercisability of Stock Options, and vesting of Restricted Stock Awards, as provided under your award agreements and the
applicable stock option plans (including continued vesting and exercisability during your status as a Director, to the extent provided by your agreements and the applicable plans) provided that the “Termination Date” for purposes of
vesting and exercisability shall be deemed to be no later than the later of (a) eighteen (18) months following May 12, 2008, or (b) the date on which you cease to serve as a Director of the Company; it being understood that all
existing provisions regarding the acceleration of vesting of Stock Options and Restricted Stock upon a change in control Event (as defined in the applicable documents) shall remain in full force and effect through the later of (a) eighteen
(18) months following May 12, 2008, or (b) the date on which you cease to serve as a Director of the Company. 

  

	 	•	 	 You will receive continuation of health benefits (including medical, dental and vision), for you and your spouse, for two (2) years following May 12,
2008, all at the expense of the Company (both employer and employee portions), with eligibility for benefits continuation for you and your spouse thereafter at COBRA rates at your expense. You will also be entitled to continue your long term care
insurance, at your expense, for two (2) years following May 12, 2008. The benefits described in this paragraph shall terminate with respect to any element (e.g., medical, dental, etc.) if you obtain comparable coverage regarding that
element from another source. 

  

	 	•	 	 You will not be eligible to participate in any other benefits plans of the Company except to the extent continuation of a benefit is available to any former
employee following their termination of employment. 

 Survival of Employment Agreement Terms. Your post-employment obligations set
forth in the Employment Agreement that you signed on May 3, 1999 (your “Employment Agreement”) survive the termination of your employment and remain in full force and effect. These include, 

  

 

 

 

 
  

 
without limitation, your obligations with respect to Secure’s “Confidential Information” (Section 4). For purposes of Section 5.2 and 5.3
of your Employment Agreement, you agree that the term of your employment shall be deemed to end 18 months after the Termination Date, and that your non-solicitation obligations with respect to employees of Secure shall extend for one year after the
end of such 18 month period. 
 Survival of Indemnification Rights. Your rights to indemnification under the Company’s bylaws and your
Indemnification Agreement with the Company dated February 1, 2006 shall survive the execution of this Agreement. 
 Compensation as an Outside
Director. You will be entitled to receive the same compensation and benefits as other outside directors, for all periods after May 12, 2008, for as long as you serve on the Company’s Board of Directors. 
 Waiver of Legal Claims. In exchange for the Severance Benefits, you fully and finally release any and all “Claims” (defined below) against Secure
through the date on which you sign this Agreement. You will not bring any lawsuits against Secure except if necessary to enforce the provisions of this Agreement. The money and other benefits that you will receive as set forth in this Agreement are
full and fair payment for the release of your Claims. Secure does not owe you anything in addition to what you will receive in this Agreement, whether under your Employment Agreement or otherwise. The consideration that you are receiving in this
Agreement has a value that is greater than anything to which you are legally entitled. 
 Definitions. For purposes of the foregoing Waiver of Legal
Claims- 
  

	 	(a)	“You” means John E. McNulty, and any person who has or obtains legal rights or claims against Secure through you. 

  

	 	(b)	“Secure” means Secure Computing Corporation, and all and each of its past and present parent, subsidiary, and affiliated entities; and all and each of the past and present
officers, directors, shareholders, insurers, agents, attorneys, successors and assigns of all and each of the foregoing entities. 

  

	 	(c)	“Claims” mean all of your rights to any relief of any kind from Secure through the date on which you sign this Agreement, including, but not limited to:

  

	 	1.	All claims you have now, whether or not you now know about the claims; 

  

	 	2.	All claims for attorneys’ fees; 

  

	 	3.	All claims arising under or based on Title VII of the Civil Rights Act of 1964 as amended, the Civil Rights Act of 1967 as amended, the Older Workers Benefit Protection Act
(“OWBPA”), the Equal Pay Act as amended, the Age Discrimination in Employment Act as amended, the Family Medical Leave Act of 1993 (“FMLA”), the Civil Rights Act of 1991, the Americans with Disabilities Act, the Fair Labor
Standards Act (“FLSA”), the California Civil Code, the California Fair Employment and Housing Act and Labor Code section 201, et seq. and section 970, et seq., or any other applicable federal, state or local employment
discrimination statute or ordinance. 

  

	 	4.	 All claims arising out of your employment and the termination of your 

  

 

 

 

 
  

	 	 
employment, including, for example, any alleged breach of contract, breach of implied contract, promissory estoppel, fraud, misrepresentation, wrongful
termination, illegal termination, defamation, invasion of privacy, and infliction of emotional distress; 

  

	 	5.	All claims for any other alleged unlawful employment practices arising out of or relating to your employment and separation from employment; and 

  

	 	6.	All claims for any type of compensation that is not provided in this Agreement. 

 You understand that California law includes Civil Code Section 1542 which says that releases usually do not apply to certain unknown claims. Specifically, Section 1542 of the California Civil Code states as follows: 
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.” 
 You, being aware of this Code section, agree to waive any rights
you may have under this Section, as well as under any other statutes or common law principles of similar effect. 
 No Fault. Secure does not admit
that it is responsible or legally obligated to you, even though it has paid you to release your Claims. 
 Nondisparagement. You agree not to
disparage Secure or any of its directors, officers, agents or employees or otherwise take any action which could reasonably be expected to adversely affect the reputation of Secure or the personal or professional reputation of any of the directors,
officers, agents or employees of Secure. 
 Return of Secure Property. You agree to return to (and not keep in your possession, recreate, or deliver
to anyone else) any and all devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment (other than your laptop and cell phone/Blackberry), other documents or
property, or reproductions of any aforementioned items developed by you during the course of your employment with Secure or otherwise belonging to Secure. Please give the above items to Renee Kirk. You will be entitled to maintain your Secure email
account for as long as you remain a director. 
 Availability for Consultation. You agree to be available for consultation as reasonably requested
during the 18 month period following May 12, 2008. 
 Vested Benefits. Nothing in this Agreement affects your vested rights in any Secure benefit
program in which you participated. 
 Rights to Counsel, Consider, Revoke and Rescind. 
  

	 	1.	Secure Consulting hereby advises you to consult with an attorney prior to signing this Agreement. 

  

 

 

 

 
  

	 	2.	You understand that you may take up to 21 days to consider your waiver of age discrimination rights and claims under the ADEA and OWBPA, beginning the date on which you received
this Agreement. You further understand that, if you sign this Agreement, you may revoke your waiver of age discrimination rights and claims under the ADEA and OWBPA within seven days thereafter, and your waiver will not be effective or enforceable
until this seven-day period has expired. 

 You understand that if you revoke or rescind your waivers as provided above, this
Agreement will be void. Your employment will still end on the Termination Date and Secure will be entitled to recover any payments made with respect to periods after the Termination Date. 
 Note that this Agreement does not prohibit you from filing an administrative charge of discrimination with, or cooperating or participating in an
investigation or proceeding conducted by, the Equal Employment Opportunity Commission or other federal or state regulatory or law enforcement agency. 
 Informed Agreement. You acknowledge that you have read this Agreement carefully and understand all of its terms. In agreeing to sign this Agreement, you also acknowledge that you have not relied on any statements or explanations made
by Secure, its agents, or its attorneys other than Secure’s promises in this Agreement. 
 Complete Agreement. Except as described herein, there
are no other agreements between you and Secure concerning the matters covered in this Agreement. 
 Confidentiality. You further agree that you will
not discuss or disclose to, other than your immediate family members, legal advisors and financial advisors, the terms of this Agreement. 
 Remedies.
In the event of any breach by you of any terms of this Agreement or your Employment Agreement, including, without limitation, the confidentiality, non-competition and non-solicitation obligations contained herein and therein, you recognize that
money damages may not be an adequate remedy and that Secure shall be entitled to seek injunctive relief in addition to any other remedies at law, and shall also be entitled to discontinue any ongoing benefits provided for hereunder and recover
payments previously made hereunder. 
 On behalf of Secure, I appreciate the contributions you have made to the Company and wish you success in all your
future endeavors. 
  

 

 

 

 
  

 I have read this Agreement. I understand and agree with its terms. I enter into this Agreement voluntarily and
knowingly, without coercion or duress. I agree to abide by this Agreement. 
  

					
	 /s/ Richard L. Scott
	 		 	 06/05/2008

	Richard L. Scott	 		 	Date
			
	 /s/ John E. McNulty
	 		 	 06/02/2008

	John E. McNulty	 		 	DateUnitedHealth Group Incorporated 2008 Executive Incentive Plan

 Exhibit 10.1 
 UNITEDHEALTH GROUP INCORPORATED 
 2008 EXECUTIVE INCENTIVE PLAN 
 SECTION 1. ESTABLISHMENT. 
 On February 19, 2008,
the Board of Directors of UnitedHealth Group Incorporated, upon recommendation by the Compensation and Human Resources Committee of the Board of Directors, approved this executive incentive plan for executives as described herein (the
“UnitedHealth Group Executive Incentive Plan”). 
 SECTION 2. PURPOSE. 
 The purpose of this Plan is to advance the interests of the Company and its shareholders by attracting and retaining key employees, and by stimulating the
efforts of such employees to contribute to the continued success and growth of the business of the Company. 
 SECTION 3. DEFINITIONS. 
 When the following terms are used herein with initial capital letters, they shall have the following meanings: 
 (a) “Annual Incentive Award” shall have the meaning set forth in Section 5 hereof. 
 (b) “Base Salary” shall mean a Participant’s annualized base salary, as determined by the Committee, as of the last day of September of a
Performance Period. 
 (c) “Annual Bonus Pool” shall mean 2% of Net Income for the Performance Period. 
 (d) “Code” shall mean the Internal Revenue Code of 1986, as it may be amended from time to time, and any proposed, temporary or final Treasury
Regulations promulgated thereunder. 
 (e) “Committee” shall mean the Compensation and Human Resources Committee of the Board of
Directors of the Company designated by such Board to administer the Plan which shall consist of members appointed from time to time by the Board of Directors. Each member of the Committee shall be an “outside director” within the meaning
of Section 162(m) of the Code. 
 (f) “Company” shall mean UnitedHealth Group Incorporated, a Minnesota corporation, and any
of its subsidiaries or affiliates, whether now or hereafter established. 
 (g) “Maximum Incentive Award” shall mean a dollar
amount equal to 25 % of the Annual Bonus Pool or Performance Bonus Pool, as the case may be. 
 (h) “Misconduct” shall mean a
Participant’s (a) violation of, or failure to act upon or report known or suspected violations of, the Company’s Principles of Integrity and Compliance, or (b) commission of any illegal, fraudulent, or dishonest act or gross
negligent or intentional misrepresentation in connection with the Participant’s employment. 

 (i) “Net Income” shall be computed in accordance with generally accepted accounting principles
as reported in the Company’s consolidated financial statements for the applicable Performance Period, adjusted to eliminate (1) the cumulative effect of changes in generally accepted accounting principles; (2) gains and losses from
discontinued operations; (3) extraordinary gains or losses; and (4) any other unusual or nonrecurring losses which are separately identified and quantified in the Company’s financial statements, including merger related charges.

 (j) “Participant” shall mean any executive officer of the Company who is designated by the Committee, as provided for herein, to
participate with respect to a Performance Period as a Participant in this Plan. Directors of the Company who are not also employees of the Company are not eligible to participate in the Plan. 
 (k) “Performance Award” shall have the meaning set forth in Section 6 hereof. 
 (l) “Performance Bonus Pool” shall mean 2% of Net Income for the Performance Period divided by the number of whole and partial years in the
Performance Period. 
 (m) “Performance Period” shall mean (i) for an Annual Incentive Award, each consecutive twelve-month
period commencing on January 1 of each year during the term of this Plan and coinciding with the Company’s fiscal year; and (ii) for a Performance Award, such period or periods as shall be specified from time to time by the Committee.

 (n) “Plan” shall mean this UnitedHealth Group Executive Incentive Plan. 
 (o) “Target Award” shall mean a percentage, which may be greater or less than 100%, as determined by the Committee with respect to each
Performance Period. 
 SECTION 4. ADMINISTRATION. 
 (a) Power and Authority of Committee. The Plan shall be administered by the Committee. The Committee shall have full power and authority, subject to all the applicable provisions of the Plan and applicable law,
to (i) establish, amend, suspend or waive such rules and regulations and appoint such agents as it deems necessary or advisable for the proper administration of the Plan, (ii) construe, interpret and administer the Plan and any instrument
or agreement relating to the Plan, and (iii) make all other determinations and take all other actions necessary or advisable for the administration of the Plan. Unless otherwise expressly provided in the Plan, each determination made and each
action taken by the Committee pursuant to the Plan or any instrument or agreement relating to the Plan (x) shall be within the sole discretion of the Committee, (y) may be made at any time and (z) shall be final, binding and
conclusive for all purposes on all persons, including, but not limited to, Participants and their legal representatives and beneficiaries, and employees of the Company. 
 (b) Determinations Made Prior to Each Performance Period. At any time ending on or before
the 90th calendar day of each Performance Period, the Committee shall (i) designate all Participants and their Target and maximum awards for such Performance Period, and (ii) establish the performance factors for each Participant for that
Performance Period. Notwithstanding the foregoing, the Committee may designate a Participant after the 90th calendar day of a Performance Period, if
the Participant became eligible to participate in the Plan by reason of commencement of employment with the Company or a promotion, in each case after the 90th calendar day of the Performance Period. 
  

 2 

 (c) Certification. Following the close of each Performance Period and prior to payment of any
amount to any Participant under the Plan, the Committee must certify in writing(i) the Company’s Net Income for that Performance Period, (ii) as to the attainment of all factors upon which any payments to a Participant for that Performance
Period are to be based and (iii) and the amount to be paid to each Participant for that Performance Period. 
 SECTION 5. ANNUAL
INCENTIVE AWARDS. 
 (a) From time to time, the Committee may grant annual incentive awards under the Plan payable to Participants in cash
(an “Annual Incentive Award”) subject to the terms of Sections 4(b)(i) and 4(c)(i). 
 (i) Discretionary Reduction. The
Committee shall retain sole and full discretion to reduce by any amount the Annual Incentive Award otherwise payable to any Participant under this Plan. 
 (ii) Continued Employment. No Annual Incentive Award shall be paid to a Participant who is not actively employed by the Company at the time the Annual Incentive Award otherwise would be paid except in the case
of retirement, death or permanent disability. If a Participant retires before the end of a Performance Period or after the end of a Performance Period but before an Annual Incentive Award is paid, the Committee may, in its discretion, determine that
the Participant shall be paid a pro rated portion of the Annual Incentive Award that the Participant would have received but for such retirement. If a Participant dies or becomes permanently and totally disabled before the end of a Performance
Period or after the end of a Performance Period but before an Annual Incentive Award is paid, the Committee may, in its discretion, determine that the Participant (or, in the case of death, the Participant’s estate) shall be paid a pro rated
portion of the Annual Incentive Award that the Participant would have received but for such death or disability. The Committee shall determine the Participant’s date of disability in a manner consistent with Company practices. 
 (iii) Maximum Payments. No Participant shall receive an Annual Incentive Award under this Plan for any Performance Period in excess of the Maximum
Incentive Award for that Performance Period. 
 (iv) Annual Limit on Maximum
Payment. The maximum Annual Incentive Award payable to each Participant for an annual Performance Period shall be set by the Compensation Committee as a percentage of the Annual Bonus Pool, the sum of which percentages shall not exceed 100
percent. If the Compensation Committee does not set an annual percentage limit for each Participant for an annual Performance Period, the individual percentage of each Participant shall be the percentage such Participant’s Base Salary on the 90
th day of the Performance Period is of the cumulative Base Salaries of all Participants on the 90th day. If a Participant is made eligible for an Annual Incentive Award after the 90th day of the Performance Period, each Participant’s individual percentage shall be adjusted pro rata to be equal to the percentage the each such Participant’s cumulative Base Salary on the 90th day of the Performance Period (except the newly eligible Participant’s Base Salary shall be as of the date of initial eligibility) is of the cumulative Base Salaries of all
Participants on the 90th day (except the newly eligible Participant’s Base Salary shall be as of the date of initial eligibility). 

(b) Payment of Annual Incentive Award. Subject to any deferred compensation election pursuant to any such plans of the Company applicable
hereto, benefits shall be paid to the Participant in cash as soon as administratively feasible upon the completion of a Performance Period, after the Committee has made the certifications provided for in Section 4(c) hereof. Such payments will
be made between January 1 and March 15 of the year following the end of the Performance Period. 
  

 3 

 SECTION 6. PERFORMANCE AWARDS. 
 (a) Performance Award Grants. From time to time, the Committee may grant Performance Awards under the Plan payable in cash (a “Performance
Award”) subject to the terms of Section 4(b)(ii). 
 (i) Discretionary Reduction. The Committee shall retain sole and full
discretion to reduce by any amount the Performance Award otherwise payable to any Participant under this Plan. 
 (ii) Continued
Employment. No Performance Award shall be paid to a Participant who is not actively employed by the Company at the time the Performance Award otherwise would be paid except in the case of death, permanent disability, retirement or a Change in
Control. If a Participant retires before the end of a Performance Period or after the end of a Performance Period but before a Performance Award is paid, the Committee may, in its discretion, determine that the Participant shall be paid a pro rated
portion of the Performance Award that the Participant would have received but for such retirement. 
 (iii) Maximum Payments. No
Participant shall receive a Performance Award under this Plan for any Performance Period in excess of the Maximum Incentive Award for that Performance Period. 
 (iv) Limit on Maximum Payment of Performance Award. The maximum Performance Award payable
to each Participant for a Performance Period shall be set by the Compensation Committee as a percentage of the Performance Bonus Pool, the sum of which percentages shall not exceed 100 percent. If the Compensation Committee does not set an annual
percentage limit for each Participant for a Performance Period, the individual percentage of each Participant shall be the percentage such Participant’s Base Salary on the 90th day of the Performance Period is of the cumulative Base Salaries of all Participants on the 90th day. If a
Participant is made eligible for a Performance Award after the 90th day of the Performance Period, each Participant’s individual percentage
shall be adjusted pro rata to be equal to the percentage the each such Participant’s cumulative Base Salary on the 90th day of the Performance
Period (except the newly eligible Participant’s Base Salary shall be as of the date of initial eligibility) is of the cumulative Base Salaries of all Participants on the 90th day (except the newly eligible Participant’s Base Salary shall be as of the date of initial eligibility). 
 (b) Payment of Performance Award. Subject to any deferred compensation election pursuant to any such plans of the Company applicable hereto, benefits shall be paid to the Participant in cash as soon as administratively
feasible upon the completion of a Performance Period, after the Committee has made the certifications provided for in Section 4(c) hereof. Such payments will be made between January 1 and March 15 of the year following the end of the
Performance Period. 
 (c) Death or Disability. If a Participant dies or becomes permanently and totally disabled before the
end of a Performance Period or after the end of a Performance Period but before a Performance Award is paid, the Committee may, in its discretion, determine that the Participant (or, in the case of death, the Participant’s estate) shall be paid
a pro rated portion of the Performance Award that the Participant would have received but for such death or disability. In such event, (i) the pro rationing shall be based on the 

  

 4 

 
portion of such Performance Period prior to the Participant’s date of death or disability, and (ii) the measurement of Company and Participant
performance shall be based on performance through the end of the fiscal year of the Company which ends closest to such date. The Committee shall determine the Participant’s date of disability in a manner consistent with Company practices. Any
such pro rated Performance Award shall be paid at the same time as other Performance Awards with respect to the applicable Performance Period. 
 (d) Change in Control. If a Change in Control (as defined below) occurs during a Performance Period or after the end of a Performance Period but before a Performance Award is paid, the Company or its successor shall pay each
Participant a pro rated portion of the maximum Performance Award for which such Participant is eligible with respect to each such Performance Period. Such pro rationing shall be based on the proportion of each such Performance Period through the
date of such Change in Control. Any such Performance Awards shall be paid within 90 days of the occurrence of the event constituting such Change in Control, or, if a timely deferral election is then in effect, shall be deferred into the
Company’s Executive Savings Plan. Any such Performance Award shall be paid regardless of whether the Participant is actively employed by the Company at the time the Performance Award is to be paid. “Change in Control” means the
occurrence of any of the following events: 
 (i) The acquisition by any person, entity or “group,” within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, other than the Company or any of its affiliates, or any employee benefit plan of the Company and/or one or more of its affiliates, of beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the Securities Exchange Act of 1934) of 20% or more of either the then outstanding shares of the Company’s Common Stock or the combined voting power of the Company’s then outstanding voting securities in a
transaction or series of transactions not approved in advance by a vote of at least three-quarters of the Continuing Directors (as hereinafter defined). 
 (ii) Individuals who, as of January 1, 2008 constitute the Board of Directors of the Company (generally the “Directors” and, as of January 1, 2008, the “Continuing Directors”) cease for
any reason to constitute at least a majority thereof (provided that any person becoming a Director subsequent to January 1, 2008 whose nomination for election was approved in advance by a vote of at least three-quarters of the Continuing
Directors (other than a nomination of an individual whose initial assumption of office is in connection with an actual or threatened solicitation with respect to the election or removal of the Directors of the Company, as such terms are used in Rule
14a-11 of Regulation 14A under the Securities Exchange Act of 1934) shall be deemed to be a Continuing Director). 
 (iii) The approval by
the shareholders of the Company of a reorganization, merger, consolidation, liquidation or dissolution of the Company or of the sale (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company
other than a reorganization, merger, consolidation, liquidation, dissolution or sale approved in advance by a vote of at least three-quarters of the Continuing Directors. 
 (iv) The first purchase under any tender offer or exchange offer (other than an offer by the Company or any of its affiliates) pursuant to which shares of the Company’s Common Stock are purchased. 
 (v) At least a majority of the Continuing Directors determine in their sole discretion that there has been a change in control of the Company.

  

 5 

 SECTION 7. AMENDMENT AND TERMINATION; ADJUSTMENTS. 
 Except to the extent prohibited by applicable law and unless otherwise expressly provided in the Plan: 
 (a) Amendments to the Plan. The Committee may amend this Plan prospectively at any time and for any reason deemed sufficient by it without notice to any person
affected by this Plan and may likewise terminate or curtail the benefits of this Plan both with regard to persons expecting to receive benefits hereunder in the future and persons already receiving benefits at the time of such action, provided,
however, that Section 6(d) of this Plan shall not be amended, or its benefits terminated or curtailed, with respect to any Performance Period during which a Change in Control occurs, occurred, or is anticipated to occur. 
 (b) Correction of Defects, Omissions and Inconsistencies. The Committee may correct any defect, supply any omission or reconcile any inconsistency
in the Plan in the manner and to the extent it shall deem desirable to carry the Plan into effect. 
 SECTION 8. NONTRANSFERABILITY. 

 Participants and beneficiaries shall not have the right to assign, encumber or otherwise anticipate the payments to be made under this
Plan, and the benefits provided hereunder shall not be subject to seizure for payment of any debts or judgments against any Participant or any beneficiary. 
 SECTION 9. TAX WITHHOLDING. 
 In order to comply with all applicable federal or state income, social
security, payroll, withholding or other tax laws or regulations, the Committee may establish such policy or policies as it deems appropriate with respect to such laws and regulations, including without limitation, the establishment of policies to
ensure that all applicable federal or state income, social security, payroll, withholding or other taxes, which are the sole and absolute responsibility of the Participant, are withheld or collected from such Participant. 
 SECTION 10. POTENTIAL REPAYMENT OF AWARDS. 
 Participants shall be required to repay the Company any amounts previously paid in respect of such Annual Incentive Awards and Performance Awards (each of which is referred to herein as an “Incentive Payment”) plus interest under
the circumstances described in this Section 10. A Participant’s repayment obligation shall be triggered if the Board determines that: (i) the Participant has engaged in fraud or Misconduct that, in whole or in part, caused the need
for a material restatement of the Company’s consolidated financial statements, (ii) the Incentive Payment was based, in whole or in part, on achievement of financial results that were restated in connection with the restatement of the
Company’s consolidated financial statements and (iii) the amount of the Incentive Payment to the Participant would have been less if it had been based on the restated consolidated financial statements. In each such instance described in
the preceding sentence, the Participant shall repay to the Company, upon demand, the full amount of such Incentive Payment, plus interest at a rate per annum equal to 110% of the applicable short-term federal rate under Section 1274(d) of the
Code in effect for the month in which such Incentive Payment was paid to the Participant. For the avoidance of doubt, a Participant shall be required to repay the full amount of such Incentive Payment, and not just the amount by which the amount of
the Incentive Payment exceeded the amount that would have been paid to the Participant with 

  

 6 

 
respect to the corresponding Annual Incentive Award or Performance Award based on the corrected and restated financial results. The provisions in this
Section 10 are essential economic conditions to each grant of an Annual Incentive Award and Performance Award made under the Plan. By participating in this Plan and receiving Annual Incentive Awards and/or Performance Awards hereunder, each
Participant agrees to be bound by the terms of the Plan, including this Section 10, and agrees that the Company may deduct from any amounts it owes the Participant from time to time (such as wages or other compensation, deferred compensation
credits, vacation pay, any severance or other payments owed following a termination of employment, as well as any other amounts owed to the Participant by the Company) to the extent of any amounts a Participant owes the Company under this
Section 10. The provisions of this Section 10 and any amounts repayable by a Participant hereunder are intended to be in addition to any rights to repayment the Company may have under Section 304 of the Sarbanes-Oxley Act of 2002 and
other applicable law. 
 SECTION 11. SHAREHOLDER APPROVAL. 
 The material terms pursuant to which bonus amounts are determined under this Plan shall be disclosed to and approved by shareholders of the Company in
accordance with Section 162(m) of the Code. 
 SECTION 12. MISCELLANEOUS. 
 (a) Effective Date. Except as specifically provided herein, this Plan shall be deemed effective as of January 1, 2008. 
 (b) Headings. Headings are given to the Sections and subsections of the Plan solely as a convenience to facilitate reference. Such headings shall
not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof. 
 (c)
Applicability to Successors. This Plan shall be binding upon and inure to the benefit of the Company and each Participant, the successors and assigns of the Company, and the beneficiaries, personal representatives and heirs of each
Participant. If the Company becomes a party to any merger, consolidation or reorganization, this Plan shall remain in full force and effect as an obligation of the Company or its successors in interest. 
 (d) Employment Rights and Other Benefit Programs. The provisions of this Plan shall not give any Participant any right to be retained in the
employment of the Company. In the absence of any specific agreement to the contrary, this Plan shall not affect any right of the Company, or of any affiliate of the Company, to terminate, with or without cause, any Participant’s employment at
any time. This Plan shall not replace any contract of employment, whether oral or written, between the Company and any Participant, but shall be considered a supplement thereto. This Plan is in addition to, and not in lieu of, any other employee
benefit plan or program in which any Participant may be or become eligible to participate by reason of employment with the Company. No compensation or benefit awarded to or realized by any Participant under the Plan shall be included for the purpose
of computing such Participant’s compensation under any compensation-based retirement, disability, or similar plan of the Company unless required by law or otherwise provided by such other plan. 
 (e) No Trust or Fund Created. This Plan shall not create or be construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company or any affiliate and a Participant or any other person. To the extent that any person acquires a right to receive payments from the Company or any affiliate pursuant to this Plan, such right shall be no greater than
the right of any unsecured general creditor of the Company or of any affiliate. 
  

 7 

 (f) Governing Law. The validity, construction and effect of the Plan or any incentive payment
payable under the Plan shall be determined in accordance with the laws of the State of Minnesota. 
 (g) Severability. If any
provision of the Plan is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended
without, in the determination of the Committee, materially altering the purpose or intent of the Plan, such provision shall be stricken as to such jurisdiction, and the remainder of the Plan shall remain in full force and effect. 
 (h) Qualified Performance-Based Compensation. All of the terms and conditions of the Plan shall be interpreted in such a fashion as to qualify all
compensation paid hereunder as “qualified performance-based compensation” within the meaning of Section 162(m) of the Code. 
  

 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00143-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00143-of-00352.parquet"}]]