Document:

exv10w2

Exhibit 10.2

SEPARATION AGREEMENT AND GENERAL RELEASE

THIS SEPARATION AGREEMENT AND GENERAL RELEASE (“Agreement”) is entered into on the last date
set forth in the signature page hereto, effective as of the Separation Date (as defined in
Section 1 below) by and between COSÌ, INC., a Delaware corporation (the “Company”),
and CHRISTOPHER CARROLL, a resident of the State of Illinois (“Employee”).

Employee and the Company agree as follows:

1. Resignation and Separation. The employment relationship between Employee and the
Company shall terminate on August 26, 2008 (the “Separation Date”).

Employee will be paid (a) Employee’s pro rata bi-weekly salary through the Separation Date,
less applicable withholding taxes and deductions, (b) reimbursement for any expenses incurred
in the ordinary course of business and in accordance with the Company’s business expense
reimbursement policy, and (c) pro rata vacation earned but not yet taken through the
Separation Date, less applicable withholding taxes and deductions (as summarized below):

Vacation, on a pro rata basis, as of August 26, 2008:

	 	 	 	 	 
	Total Gross Vacation Days:
	 	 	13	 
	Vacation Days Paid in the Current Year:
	 	 	7	 
	Net Vacation Days Accrued (but not taken) at Separation Date:
	 	 	6	 

Employee’s medical and health benefits shall continue through the end of the calendar month
during which the Separate Date occurs (i.e., August 26, 2008).

As set forth in paragraph 7 (relocation assistance) of Employee’s offer letter dated May 10,
2006, the Company agreed to reimburse Employee in accordance with the Company’s Relocation
Policy for reimbursable relocation expenses incurred by Employee in connection with Employee’s
employment by the Company and subsequent move to the Chicago, Illinois area. At Employee’s
request, on or about June 1, 2008, the Company agreed to extend the date to December 31, 2008
for reimbursement of such reimbursable relocation expenses. As of the Separation Date,
Employee has not yet submitted, and the Company has not yet reimbursed Employee, for such
relocation expenses. After the Separation Date, the Company agrees to reimburse Employee for
reimbursable relocation expenses for: (i) the actual moving expenses and actual closing costs
incurred by Employee for the sale of Employee’s home in Connecticut in connection with
Employee’s employment by the Company and resulting move to the Chicago, Illinois area and (ii)
the actual closing costs incurred by Employee for the purchase of Employee’s new home in the
Chicago, Illinois area, provided that Employee submits receipts, closing documents and other
documentation reasonably acceptable under the Company’s Relocation Policy evidencing such
reimbursable relocation expenses and provided further that Employee submits such reimbursement
request within thirty (30) days (i.e., on or before but not later than September 25, 2008)
after the Separation Date.

	3.	 	Severance Compensation. Subject to the terms of this Agreement, and
providing Employee executes and does not revoke this Agreement, the Company agrees to
pay to Employee after the Separation Date the additional compensation set forth below:

(a) Severance. Gross payments equal to TWELVE (12) WEEKS of Employee’s salary,
totaling FIFTY EIGHT THOUSAND SIX HUNDRED FIFTEEN AND 32/100 DOLLARS ($58,615.32), less
applicable withholding taxes and deductions, payable in bi-weekly equal installments on a
schedule consistent with the Company’s payroll schedule, in the form of a check mailed to
Employee’s last payroll address on file with the Company or to such other address as may be
designated in writing by Employee. Such payments shall commence consistent with the Company’s
first regularly scheduled pay date following Employee’s Separation Date and shall continue
bi-weekly thereafter until such amount is paid in full.

(b) Medical and Health Benefits. For the period commencing September 1, 2008 through
September 30, 2008,

 

 

 the Company shall pay for the cost to continue Employee’s medical and health benefits coverage
under Consolidated Omnibus Budget Reconciliation Act (“COBRA”). After September 30, 2008,
Employee may elect, at Employee’s expense, to continue medical and health benefits coverage
pursuant to Employee’s rights under COBRA.

Employee acknowledges that the foregoing payments set forth in this Section 2 are
compensation which the Company would not be required to pay to Employee but for this
Agreement. Except for the amounts expressly set forth in Section 1 above for services
rendered through the end of the day on the Separation Date, and in this Section 2
above as severance compensation after the Separation Date, no other compensation or benefits,
including, without limitation, compensation for unpaid salary, unpaid bonus, severance or
accrued or unused vacation time or vacation pay, arising from or relating to Employee’s
employment with the Company or the termination of Employee’s employment, are due to Employee
by the Company under this Agreement or otherwise.

3. Return of Company Materials. Employee agrees to and shall promptly return to the
Company at the Company’s Support Center, or such other location as may be agreed to by
Employee and the Company, all property of the Company in Employee’s control or possession, in
any media or format whatsoever, including, without limitation, confidential and proprietary
information of the Company, keys, and key cards, security codes, laptop computer, training
materials, financial information, budgets, business plans, files, customer lists, franchisee
lists, and any other equipment, materials, or information of the Company. With respect to
electronic data and/or other information of the Company stored in electronic format ormedia,
Employee agrees to and shall promptly delete and destroy all electronically stored data and
files, and at the Company’s request, certify in writing to the Company that Employee has done
so.

4. Employee Release. For and in consideration of the payments and/or other benefits
to be provided to and/or on behalf of Employee pursuant to this Agreement, and the agreements
set forth herein, and other good and valuable consideration, the receipt and sufficiency of
which Employee hereby acknowledges and agrees, Employee, on behalf of Employee and Employee’s
heirs, beneficiaries, agents, executors and assigns, hereby voluntarily, knowingly, and
willingly releases and forever discharges the Company and its stockholders, parents,
affiliates, subsidiaries, divisions, any and all current and former directors, officers,
executives and agents thereof, and their heirs, agents and assigns, and any and all pension
benefit or welfare benefit plans of the Company, including current and former trustees and
administrators of such pension benefit and welfare benefit plans (collectively, the
“Releasees”), from any and all claims, complaints, causes of action, charges, demands or
rights, of any kind or nature whatsoever, in law or in equity, whether known or unknown, which
may have existed or which may now exist from the beginning of time to the date of this
Agreement, including, without limitation, any claims Employee may have arising from or
relating to Employee’s employment or termination from employment with the Company, and further
including a release of any rights or claims Employee may have under the Age Discrimination in
Employment Act of 1967, as amended by the Older Worker Benefits Protection Act, the Equal Pay
Act, Title VII of the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991, the
Americans with Disabilities Act, the Family and Medical Leave Act of 1993; Section 1981 of the
Civil Rights Act of 1866; Section 1985(3) of the Civil Rights Act of 1871; the Employment
Retirement Income Security Act of 1974, as amended; any other federal, state or local laws
against discrimination; or, any other federal, state, or local statute or common law relating
to employment, wages, hours, or any other terms and conditions of employment, including, but
not limited to, the Illinois Human Rights Act, and the Illinois Wage Payment and Collection
Act and any other laws regarding the payment of wages, to the maximum extent permitted by law.
This release further includes a release by Employee of any claims for wrongful discharge,
breach of contract, torts or any other claims in any way related to Employee’s employment with
or resignation or termination from the Company.

This Section 4 shall operate as a general release and a covenant not to sue to the
extent permitted by law. It is the intention of the parties in executing this Agreement that
it shall be an effective bar to each and every claim, demand, and cause of action described in
this Section 4, including known and unknown claims. This release is not intended as a
bar to any claim that, by law, may not be waived, or a claim to challenge the validity of this
Agreement. Employee waives any right to any monetary recovery should any federal, state or
local administrative agency pursue any claims on Employee’s behalf arising out of or related
to Employee’s employment with and/or termination from Employee’s employment with the Company.
Employee acknowledges that Employee has not suffered any on-the-job injury or condition for
which Employee has not already filed a claim. Employee further acknowledges that Employee has
no pending claims against the Company.

2

 

5. No Admission. This Agreement is not an admission by either Employee or the Company
of any wrongdoing or liability.

6. Waiver of Reinstatement. Employee waives any right to reinstatement or future
employment with the Company following Employee’s separation from the Company on the Separation
Date.

7. No Disparagement. Employee agrees and shall not engage in any act that is
intended, or may reasonably be expected, to harm the reputation, business, prospects or
operations of the Company, its officers, directors, stockholders or executives. Employee will
take no action which would reasonably be expected to lead to unwanted or unfavorable publicity
to the Company.

8. No Disclosure of Terms of Agreement. Employee, on Employee’s own behalf and on
behalf of all others consulted by Employee concerning this Agreement, agrees that, as part of
the consideration for the total sum of the amounts identified in Section 2 above, the
facts, terms and conditions of this Agreement, and all negotiations related thereto, shall
remain completely confidential, unless and except to the extent disclosure is required by law.
Employee, on Employee’s own behalf and on behalf of all others consulted by Employee
concerning this Agreement, agrees that there shall be no disclosure by Employee, directly or
indirectly, of any information concerning the facts, terms and conditions of this Agreement,
and all negotiations related thereto, except as required by law, to anyone other than the
Internal Revenue Service and financial advisors of Employee.

9. Restrictive Covenants. Employees acknowledges and agrees that Employee continues
to be bound by the restrictive covenants set forth in and the terms and conditions of that
certain Confidentiality and Non-Compete Agreement dated May 10, 2006 entered into between
Employee and the Company, and that the terms and agreements thereof which are intended to
survive Employee’s termination and separation of employment with the Company shall so survive
and continue in full force and effect.

10. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Illinois, without reference to the principles of conflict of
laws.

11. Entire Agreement; Severability. This Agreement represents the complete agreement
between Employee and the Company concerning the subject matter of this Agreement and
supersedes all prior agreements or understandings, written or oral. This Agreement may not be
amended or modified otherwise than by a written agreement executed by the parties hereto or
their respective successors and assigns and legal representatives on their behalf. The
provisions of this Agreement are severable, and if any part of this Agreement is found to be
unenforceable, the other provisions of this Agreement shall remain fully valid and enforceable
to the fullest extent permitted by law.

12. Revocation Period. Employee may revoke his release of claims under the ADEA (as
defined in Section 13(h) below) within the seven (7) day period following execution of
this Agreement by Employee. Any such revocation must be submitted in writing to the Company
and to the person identified in the Company’s notice address set forth below the Company’s
signature block on the signature page attached hereto, and must state, “I hereby revoke my
release of claims under the ADEA.” If the last day of the revocation period is a Saturday,
Sunday or legal holiday recognized in the State of Illinois, then such revocation period shall
not expire until the next following day which is not a Saturday, Sunday or legal holiday. In
the event of Employee’s revocation under this provision of the Agreement, only the release of
claims under the ADEA will be affected and the remainder of the Agreement shall remain in full
force and effect and all other claims will remain released.

13. Knowing and Voluntary Execution. By executing this Agreement, Employee
acknowledges that:

(a) Employee has entered into this Agreement voluntarily and not as a result of
coercion, duress, or undue influence;

(b) Employee has read and fully understands the terms of this Agreement;

3

 

(c) EMPLOYEE HAS BEEN ADVISED TO CONSULT WITH AN ATTORNEY AND/OR OTHER ADVISORS OF
EMPLOYEE’S CHOICE BEFORE EXECUTING THIS AGREEMENT;

(d) Employee understands that this Agreement is LEGALLY BINDING and by executing it
Employee gives up certain rights;

(e) Employee has been afforded the opportunity of at least twenty-one (21) days to
consider this Agreement (although Employee may voluntarily choose to execute this
Agreement earlier) and to consult with an attorney;

(f) Pursuant to Section 4 above, Employee VOLUNTARILY, KNOWINGLY, AND WILLINGLY
RELEASES the Releasees from any and all claims Employee have, known or unknown, in
exchange for the additional compensation provided to Employee by executing this
Agreement;

(g) Employee may revoke his release of claims under the ADEA within the seven (7) day
period following Employee’s execution of this Agreement, as set forth in Section
12 above; and

(h) The General Release in this Agreement includes a WAIVER OF ALL RIGHTS AND CLAIMS
Employee may have under the Age Discrimination in Employment Act of 1967 (29 U.S.C. §621
et seq.), as amended by the Older Workers’ Benefit Protection Act (“ADEA”).

14. Notice. Any notice required or permitted to be given hereunder shall be in
writing and delivered by hand, express delivery or by a nationally recognized courier (i.e.,
DHL, Federal Express, UPS, etc.) or mailed by certified mail, return receipt requested,
postage prepaid, addressed to the respective notice addresses set forth below each party’s
name on the signature page.

[balance of page intentionally blank; signature page(s) to follow]

4

 

15. Counterparts; Facsimile. This Agreement may be executed in counterparts, each of
which shall be deemed an original. This Agreement and any counterpart so executed shall be
deemed one and the same instrument. Signature by facsimile or other electronic transmission
is hereby authorized and shall have the same force and effect as an original signature.

This Agreement has been executed by the parties as of the respective dates set forth below.

	 	 	 	 	 	 	 
	EMPLOYEE:

	 	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	COSI, INC., a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	/s/ CHRISTOPHER CARROLL

	 	 	 	/s/ BECKY ILIFF	 	 
	 

Name: CHRISTOPHER CARROLL

	 	 
	 	 

Name: Becky Iliff
	 	 
	Date: August 26, 2008

	 	 	 	Title: Vice President of People	 	 
	 

	 	 	 	Date: August 26, 2008	 	 
	 
	Notice (Current) Address:

	 	 	 	Notice Address:	 	 
	 
	 	 	 	 	 	 
	936 Hinman Avenue 1-S

	 	 	 	Cosi, Inc.	 	 
	Evanston, IL 60204

	 	 	 	1751 Lake Cook Road, 6th Floor	 	 
	 

	 	 	 	Deerfield, IL 60015	 	 
	 

	 	 	 	Attn: Becky Iliff, V. P. of People	 	 
	Telephone:                                                            
	 	 	 	 	 	 
	 

	 	 	 	Telephone: (847) 597-8860	 	 

5exv10w4

Exhibit 10.4

Employee Performance Incentive

Compensation Plan

(2008 Revised)

Effective January 1, 2008

Performance Period: January 1 — December 31, 2008

 

	 	 	 
	

	 	Employee Performance Incentive Comp Plan

Effective January 1, 2008

Performance Period

January 1 — December 31, 2008

	I.	 	Philosophy/Purpose of the Plan
	 
	 	 	The purpose of the ev3, Inc. Performance Incentive Compensation Plan (the “Plan”) is to
provide financial reward in addition to base salary, based on achievement of specific
performance, to those who significantly impact the growth and success of the company. The
plan is designed to reward employees for achieving stretch annual goals and to closely align
their accomplishments with the interests of the company’s shareholders. This is done by
providing annual incentives for the achievement of key business and individual performance
measures that are critical to the success of the Company while linking a significant portion
of an employee’s annual compensation to the achievement of such measures.
	 
	II.	 	Eligible Participants
	 
	 	 	The Company will determine eligibility criteria for the Plan on an annual basis and in its
sole discretion. For 2008, the Plan covers the following: (i) all regular, salaried,
exempt United States employees in Levels 2 and above, inclusive, and (ii) international and
expatriate/inpatriate employees who are determined by the Company to be eligible for
participation. Notwithstanding the foregoing, employees in positions covered by sales
compensation plans are not eligible participants in the Plan.
	 
	 	 	The Plan year runs from January 1 — December 31 of each year (the “Plan Year”). Payouts
will be made on an annual basis during the period beginning on the first day of the calendar
year following the performance year and ending on March 15th of such calendar year.
Participants with less than a full year of service or whose incentive target percent has
changed during a Plan Year may be eligible to participate in the plan on a prorated basis,
determined by the percentage of time they were eligible to participate during that Plan Year
under applicable criteria. Plan Participants with less than four (4) full months of
eligible service on December 31 of a particular Plan Year will not be eligible to receive an
award under the Plan for that Plan Year.
	 
	 	 	To be eligible, employees must have established and approved annual individual performance
goals by the end of the first quarter of each Plan Year (or, for new employees, within two
(2) months of the employee’s start date). Managers are responsible for meeting this
deadline. Employees and Managers who do not complete the annual individual performance
goal setting process by such deadlines may become ineligible to participate in the Plan for
that Plan Year.
	 
	III.	 	Administration of the Plan
	 
	 	 	The Compensation Committee of the Board of Directors of the Company will administer the
Plan. The Compensation Committee, in its sole discretion, may delegate to the Company’s
Chief Executive Officer activities relating to Plan administration that are not required to
be exercised by the Compensation Committee under applicable laws, rules, regulations and the
Compensation Committee Charter. Delegable activities include, but are not limited to,
establishing any policies under the Plan, interpreting provisions of the Plan, determining
eligibility to participate in the Plan, and approving any final payouts under the Plan that
do not affect Executive Officer level employees. All decisions of the Compensation
Committee and the Chief Executive Officer will be final and binding upon all parties,
including the Company and Plan participants.

2

 

	 	 	 
	

	 	Employee Performance Incentive Comp Plan

Effective January 1, 2008

Performance Period

January 1 — December 31, 2008

	IV.	 	Incentive Targets
	 
	 	 	Incentive targets have been approved by the Compensation Committee for all eligible Plan
participants based upon their level of responsibility within the Company and impact on the
business. These incentive targets represent the incentive (as a percent of a Plan
participant’s base salary) that a Plan Participant is eligible to receive under the Plan.
It is the Company’s intention to provide significant incentive and reward opportunities to
its employees for world-class performance achievement.
	 
	 	 	Each position level (2-11) has an established target bonus, expressed as a percentage of
base salary, as illustrated below and in the attached Target Bonus Table.

	 	 	 	 	 
	 	 	Salary Level	 	Standard % of Base Salary Earned
	CEO
	 	11	 	100%
	WW President
	 	10	 	65%
	Business Unit President
	 	9	 	60%
	CFO
	 	9	 	60%
	OC Members
	 	8	 	50%
	VP
	 	7	 	40%
	Director
	 	6	 	30%
	Managers, Principals
	 	5	 	25%
	Supervisors/Sr. Level Contributors
	 	4	 	15%
	Intermediate level
	 	3	 	10%
	Entry Level Individuals Contributors
	 	2	 	  8%
	Non-exempt
	 	1	 	Not eligible

	 	 	The actual incentive is capped at 150% standard, or may result in 0 bonus based on
achievement. In unusual circumstances, modifications may be made if, in the Compensation
Committee’s final judgment the calculations does not accurately reflect performance.
	 
	V.	 	Individual Performance Measures
	 
	 	 	Individual performance measures for a Plan Year are established during the annual goal
setting process. Each Plan Year, all Plan participants are required to develop three to
five written, measurable and specific Management By Objectives (MBO’s), which must be agreed
to and approved by each participant’s direct manager by the end of the first quarter. up.
For Executives in Grade Level 8 and up, each MBO and targeted achievement levels must be
approved by the President and CEO and the Compensation Committee. All objectives are
weighted by agreement, with areas of critical importance or critical focus weighted most
heavily. A rating of 1 to 5 is agreed upon, providing specific achievement levels for each
rating. A rating of 3 will always equal “on plan” performance.
	 
	VI.	 	Company Performance Measures
	 
	 	 	For each Plan Year, the Compensation Committee, together with input from the Company’s Chief
Executive Officer, will identify critical Company performance measures. The 2008 Company
performance measures are:

	 	•	 	Worldwide Revenue
	 
	 	•	 	Operating Profit

3

 

	 	 	 
	

	 	Employee Performance Incentive Comp Plan

Effective January 1, 2008

Performance Period

January 1 — December 31, 2008

	 	•	 	Daily Sales Outstanding — “DSO”
	 
	 	•	 	Days on Hand “Inventory DOH”

	 	 	The finance team will work with each operating unit to establish specific financial
objectives for the Incentive Plan Company performance measures, which will be tied to the
company’s approved operating plan. All objectives are weighted by agreement, with areas of
critical importance or critical focus weighted most heavily. In addition, for each performance measure, targets
have been established for each rating level 1 to 5. A rating of 3 will always equal “on
plan” performance.
	 
	VII.	 	Bonus Calculation
	 
	 	 	An aggregate average for the corporate, divisions and individuals goals must meet at least a
2.0 to meet the minimum 75% payout threshold. There are no awards if final overall rating
is below a 2.0. A scale for calculating actual achievement percentage will be used as
follows:

	 	 	 
	Overall Rating	 	Percentage Achievement
	5
	 	150%
	4
	 	125%
	3
	 	100%
	2
	 	75%
	1
	 	  0%

	 	 	All Plan performance measures and objectives are rated (based on the achievement grid) and
weighted based on relative importance in order to obtain a weighted performance rating for
each objective.
	 
	 	 	All weighted performance ratings are then added together to obtain an overall rating for
each participant.
	 
	 	 	Increments between rating levels will be interpolated as closely as possible to determine an
actual incentive percentage, e.g. an overall rating of 3.5 equals a 112.5% incentive
percentage.
	 
	 	 	For each participant the actual incentive percentage is multiplied by the target bonus
percentage to calculate the award, e.g. 112.5% actual incentive percentage times 20% target
bonus equals an award of 28% of earned base salary.
	 
	 	 	For new or newly eligible participants who join the plan during the plan year, the award may
be calculated either by using base salary or pro-rated salary depending on the terms and
conditions of the job offer, as documented in the offer letter and approved in advance by
the Compensation Committee.
	 
	VIII.	 	Individual Incentive Payment Criteria, Calculation, and Payout
	 
	 	 	A Plan participant must remain actively employed by the Company past December
31st of the Plan Year to be eligible for an incentive payment under the Plan for
that Plan Year. 

	 	 	The incentive payment under the Plan for any eligible Plan participant for a particular Plan
Year will vary depending upon the approved individual objectives and company performance
measures, the Plan participant’s base salary as of November 1 of that Plan Year, and the
Plan participant’s incentive target for that Plan Year..

4

 

	 	 	 
	

	 	Employee Performance Incentive Comp Plan

Effective January 1, 2008

Performance Period

January 1 — December 31, 2008

	 	 	In the following cases, the final incentive payout will be prorated. If the Plan participant
was on a Leave of Absence for part of the Plan Year, their bonus will be pro-rated based
upon the number of days they were actively working within the year. If the Plan participant
works less than a full-time schedule (40 hours/week), the incentive payout will be prorated
for the hours worked or if the Plan participant has a change to their full-time status
throughout the year, their incentive payout will likewise be prorated for the portion of the
year in which they worked a part time schedule. If the Plan participant received a promotion
during the year prior to November 1 with a change in target incentive, the final payout will
be prorated for the time spent at each incentive target.
	 
	 	 	At the end of the plan year, each participant will review their MBO’s and results with their
direct manager to determine the rating earned for each MBO objective. Each MBO objective
rating will be combined to calculate an overall rating for the individual objectives. In addition, as soon
as practicable after the appropriate financial and other data has been compiled, the finance
department will calculate the ratings for the overall ev3 and each business unit financial
goals. These ratings will be combined together per the applicable weighting factors to
determine the final payout for each individual Plan participant. Individual incentive
payments under the Plan will be made in a lump sum, less applicable withholding taxes, as
soon as reasonably practicable after the determination of such payments, during the period
beginning on the first day of the calendar year following the performance year and ending on
March 15 of such calendar year.
	 
	 	 	In all cases, recommendations for final incentive awards are submitted to the Chief
Executive Officer for approval, with final approval by the Compensation Committee.
	 
	 	 	The CEO and/or the Compensation Committee may make a recommendation to modify an award by
plus/minus 20% if, in its subjective judgment, the participant has not been equitably
treated by the mechanics of the incentive plan. Such modifications of awards should only be
used in truly exceptional cases.
	 
	IX.	 	Plan Discretion
	 
	 	 	All benefits payable under the Plan are discretionary and no Plan participant shall have any
right to payment under the Plan until actually paid.
	 
	 	 	To the extent necessary with respect to any Plan Year, in order to avoid any undue windfall
or hardship due to external causes, the Compensation Committee may without the consent of
any affected Plan participant, revise one or more of the Company performance measures, or
otherwise make adjustments to payouts under the Plan to take into account any acquisition or
disposition by the Company not planned for at the time the Company performance measures were
established, any change in accounting principles or standards, or any extraordinary or
non-recurring event or item, so as equitably to reflect such event or events, such that the
criteria for evaluating whether a Company performance measure has been achieved will be
substantially the same (as determined by the Compensation Committee) following such event as
prior to such event.
	 
	X.	 	Termination, Suspension, or Modification
	 
	 	 	The Company may terminate, suspend, modify and if suspended, may reinstate or modify, all or
part of the Plan at any time, with or without notice to the Plan participants. Exceptions
to the eligibility of, or the extent to which the Plan applies to, any particular Plan
participant must be approved, on a case-by-case basis, by the Compensation Committee

5

 

	 	 	 
	

	 	Employee Performance Incentive Comp Plan

Effective January 1, 2008

Performance Period

January 1 — December 31, 2008

	XI.	 	Limitation of Liability
	 
	 	 	No member of the Company’s Board of Directors, the Compensation Committee, any officer,
employee, or agent of the Company, or any other person participating in any determination of
any question under the Plan, or in the interpretation, administration, or application of the
Plan, shall have any liability to any party for any action taken, or not taken, in good
faith under the Plan.
	 
	XII.	 	No Right to Employment
	 
	 	 	This document sets forth the terms of the Plan and it is not intended to be a contract or
employment agreement between any Plan participant and the Company. Nothing contained in the
Plan (or in any other documents related to the Plan) shall confer upon any employee or Plan
participant any right to continue in the employ or other service of the Company or
constitute any contract or limit in any way the right of the Company to change such person’s
compensation or other benefits or to terminate the employment or other service of such
person with or without cause or notice.
	 
	XIII.	 	Non-Assignability
	 
	 	 	Except for the designation of a beneficiary(ies) to receive payments of benefits for a
particular Plan year following a Plan participant’s death after the completion of such Plan
Year, no amount payable at any time under the Plan shall be subject to sale, transfer,
assignment, pledge, attachment, or other encumbrance of any kind. Any attempt to sell,
transfer, assign, pledge, attach, or otherwise encumber any such benefits, whether currently
or thereafter payable, shall be void.
	 
	XIV.	 	Withholding Taxes
	 
	 	 	The Company is entitled to withhold and deduct from any payments made pursuant to the Plan
or from future wages of a Plan participant (or from other amounts that may be due and owing
to the Plan participant from the Company), or make other arrangements for the collection of,
all legally required amounts necessary to satisfy any and all federal, state, and local
withholding and employment-related tax requirements attributable to any payment made
pursuant to the Plan.
	 
	XV.	 	Unfunded Status of Plan
	 
	 	 	The Plan shall be unfunded. No provisions of the Plan shall require the Company, for the
purpose of satisfying any obligations under the Plan, to purchase assets or place any assets
in a trust or other entity to which contributions are made or otherwise to segregate any
assets. Plan participants shall have no rights under the Plan other than as unsecured
general creditors of the Company.
	 
	XVI.	 	Other
	 
	 	 	Except to the extent in connection with other matters of corporate governance and authority
(all of which shall be governed by the laws of the Company’s jurisdiction of incorporation),
the validity, construction, interpretation, administration and effect of the Plan and any
rules, regulations, and actions relating to the Plan will be governed by and construed
exclusively in accordance with the internal, substantive laws of the State of Minnesota,
without regard to the conflict of law rules of the State of Minnesota or any other
jurisdiction.

6

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