Document:

exv4w7

Exhibit 4.7

QUIDEL CORPORATION

RESTRICTED STOCK AWARD AGREEMENT

     This Restricted Stock Award Agreement (this “Agreement”) is entered into as of                                         by and
between Quidel Corporation (the “Company”) and the undersigned employee of the Company.

     1. Award. Pursuant to the Company’s 2010 Equity Incentive Plan (the “Plan”),
as of (the “Grant Date”), the Company granted to you                                         restricted shares of Company common
stock (the “Restricted Shares”).

     2. Restrictions. The Restricted Shares granted to you on the Grant Date are subject
to the limitations that are set forth in this Agreement and in the Plan. Without limiting the
foregoing, the Restricted Shares may not be sold, assigned, transferred, pledged, hypothecated or
otherwise disposed of, alienated or encumbered unless and until the relevant restrictions lapse, as
provided in Section 3 below.

     3. Lapse of Restrictions on Restricted Shares. The Restricted Shares remain subject
to forfeiture until the restrictions covering the Restricted Shares lapse. Provided that you
remain an employee of the Company in accordance with and as set forth in the Plan, the restrictions
on the Restricted Shares lapse as follows:                                         .

     4. Payment of Purchase Price. As consideration for the Restricted Shares, you agree
to pay to the Company in cash $                                         which is an amount equal to $0.01 per share of Restricted Share
within five (5) business days of signing this Agreement.

     5. Custody of Shares. Your rights with respect to the Restricted Shares will be
evidenced by this Agreement. The Restricted Shares subject hereto will be held in book-entry form
by the Company and its transfer agent and will be classified as restricted in the book-entry
account in your name, until restrictions lapse. As restrictions lapse on the Restricted Shares,
you may either instruct the Company to issue a physical certificate in your name or transfer the
vested shares to your designated brokerage account.

     6. Repurchase. In the event that your employment with the Company is terminated for
any reason, the Company will repurchase any remaining Restricted Shares (shares in which the
restrictions have not lapsed) following your termination for an amount equal to $0.01 per share,
without interest or premium, in accordance with the Plan.

     7. Tax Withholding Obligations. In general, when restrictions on shares of your
Restricted Shares lapse, you recognize ordinary income for federal and state tax purposes in an
amount equal to the excess of the fair market value of the shares at that time over the purchase
price. In this regard, you trigger tax withholding obligations and are required to remit to the
Company an amount sufficient to satisfy such tax withholding obligations for payment over to the
appropriate taxing authorities. The Company may, in the exercise of its discretion in accordance
with the Plan, allow satisfaction of tax withholding requirements by accepting delivery of stock of
the Company or by withholding a portion of the shares of the Restricted Shares that are otherwise
issuable in connection with any lapse of restrictions.

 

 

     8. Section 83(b) Election. You understand that you are entitled to make an election
pursuant to Section 83(b) of the Internal Revenue Code within thirty (30) days after the Grant
Date, or comparable provisions of any state tax law, to include in your gross income the fair
market value (as of the date of acquisition) of the Restricted Shares to the extent it exceeds
the purchase price paid for the Restricted Shares only if, prior to making any such election, you
(a) notify the Company of your intention to make such election, by delivering to the Company a copy
of the fully-executed Section 83(b) Election Form attached hereto as Exhibit A, and (b) pay
to the Company an amount sufficient to satisfy any taxes or other amounts required by any
governmental authority to be withheld or paid over to such authority for your account, or otherwise
make arrangements satisfactory to the Company for the payment of such amounts through withholding
or otherwise. You understand that if you do not make a proper and timely Section 83(b) election,
generally under Section 83 of the Code, at the time the forfeiture restrictions applicable to the
Restricted Shares lapse, you will recognize ordinary income and be taxed in an amount equal to the
fair market value of the Restricted Shares as of the date the forfeiture restrictions lapse.

     You acknowledge that it is your sole responsibility, and not the Company’s, to file a timely
election under Section 83(b), even if you request that the Company or its representative make this
filing on your behalf. You are relying solely on your advisors with respect to the decision as to
whether or not to file a Section 83(b) election.

     9. Miscellaneous.

          (a) Entire Agreement. This Agreement and the Plan, which is incorporated by reference
herein, together constitute the entire agreement regarding the Restricted Shares, and supersede all
prior written agreements, arrangements, communications and understandings and all prior and
contemporaneous oral agreements, arrangements, communications and understandings, among the parties
with respect to the subject matter of this Agreement. This Agreement shall be binding upon and
inure solely to the benefit of each of the parties and their respective successors and assigns.

          (b) Amendment. This Agreement may not be amended, modified or supplemented in any
manner, whether by course of conduct or otherwise, except by an instrument in writing signed on
behalf of each party hereto.

          (c) No Right to Continued Employment. The grant of Restricted Shares and this
Agreement do not confer upon you any right to continue as an employee of the Company or an
affiliate of the Company, nor does it limit in any way the right of the Company or any affiliate of
the Company to terminate your services with the Company or any such affiliate at any time, with or
without cause. Unless otherwise set forth in a written agreement binding upon the Company or any
affiliate of the Company, your employment by the Company or any affiliate is “at will.”

          (d) No Assignment. You may not assign this Agreement or any rights granted hereunder.

          (e) Counterparts. This Agreement may be executed in two or more counterparts, all of
which shall be considered one and the same instrument and shall become effective when one or more
counterparts have been signed by each of the parties and delivered to

 

 

the other party. This
Agreement may be executed by facsimile signature and a facsimile signature shall constitute an
original for all purposes.

          IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as of the date first
indicated above.

	 	 	 	 	 
	 	Quidel Corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 
	 

	 	Employee	 
	 
	 	 	 
	 
	 	 	 
	 

	 	 	 
	 

	 	Signature	 
	 
	 	 	 
	 
	 	 	 
	 

	 	 	 
	 

	 	Print Name	 

 

 

EXHIBIT A

to Restricted Stock Award Agreement

ELECTION TO INCLUDE VALUE OF RESTRICTED PROPERTY

IN GROSS INCOME IN YEAR OF TRANSFER

INTERNAL REVENUE CODE § 83(b)

The undersigned hereby elects pursuant to Section 83(b) of the Internal Revenue Code with respect
to the property described below, and supplies the following information in accordance with the
regulations promulgated thereunder:

	1.	 	Name, address and taxpayer identification number of the undersigned:
	 
	 	 	 

	 
	 	 	 

	 
	 	 	 

	 
	 	 	Taxpayer I.D. No.:  

	 
	 	 	Taxpayer I.D. No. of Spouse (if applicable)  

	 
	2.	 	Description of property with respect to which the election is being made:
	 
	 	 	                                         shares of Common Stock of Quidel Corporation, a Delaware corporation (the
“Company”)
	 
	3.	 	Date on which property was acquired:  

	 
	4.	 	Taxable year to which this election relates:  

	 
	5.	 	Nature of the restrictions to which the property is subject:
	 
	 	 	If the taxpayer’s service as a                                          of the Company terminates for any reason
before the restrictions on the Common Stock lapse, the Company will have the right to
repurchase the Common Stock from the taxpayer at $0.01 per share. The Common Stock vests
according to the following schedule:  

 
	 
	 	 	 

	 
	 	 	The Common Stock is non-transferable by the taxpayer until the restrictions lapse and is
held as restricted in a book-entry account of the Company and its transfer agent, under
taxpayer’s name.
	 
	6.	 	Fair market value of the property:
	 
	 	 	The fair market value at the time of transfer (determined without regard to any restrictions
other than restrictions that by their terms will never lapse) of the property with respect
to which this election is being made is $                                         per share.
	 
	7.	 	Amount paid for the property:
	 
	 	 	The amount paid by the taxpayer for said property is $0.01 per share.
	 
	8.	 	Furnishing statement to employer:
	 
	 	 	A copy of this statement has been furnished to Quidel Corporation.

Date:                                         

	 	 	 

	 

	 	 
	 

	 	Signature
	 
	 	 
	 
	 

	 	 
	 

	 	Printed Name

This election must be filed with the Internal Revenue Service Center with which taxpayer files his
or her Federal income tax returns and must be made within thirty (30) days after the date of the
Grant Date of the Restricted Shares. This filing should be made by registered or certified mail,
return receipt requested. The taxpayer must retain two (2) copies of the completed form for filing
with his or her Federal and state tax returns for the current tax year and an additional copy for
his or her records.exv10w57

Exhibit 10.57

CA, INC.

HOMEOWNERS RELOCATION POLICY FOR BANDS K, L

AND ZZ

(SENIOR EXECUTIVES)

 

 

The Company’s policies, procedures and practices, whether expressed here or elsewhere, whether
oral or written, are not intended to create any promise or contractual right of employment.

Employment with the Company is at will. This means that either you or the Company may terminate
the employment relationship at any time with or without cause and without prior notice. This
applies to privileges and benefits as well.

This relocation policy is subject to change by the Company in its sole discretion without prior
notice, to the extent permitted by applicable law.

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CA, INC.

HOMEOWNERS RELOCATION POLICY FOR BANDS K, L and ZZ (SENIOR

EXECUTIVES)

INTRODUCTION

Change offers challenges and opportunities. On behalf of all your colleagues here at CA, Inc. (CA
or the Company), we want to thank you for your willingness to make this change. We hope that it
will lead to personal growth, further career development, and prove mutually beneficial.

While there are many benefits available to you, you will be responsible for managing costs
associated with your move and you will be expected to keep relocation costs to a minimum.

Our goal is to provide our mobile employees and their families with the tools and assistance to
help them relocate in a timely and cost-effective manner.

It is our shared responsibility to communicate openly and honestly and to cooperate with one
another to ensure the highest level of motivation, morale and productivity during the relocation
process.

Furthermore, we are committed to ensuring that our service partners meet our requirements for
efficient, customer-oriented service delivery. These selected service partners will work with you
throughout your move and will be available to answer any questions that you have.

You will be asked to confirm receipt of this policy to ensure effective communication.

Best wishes to you and your family in your new location.

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ELIGIBILITY

When relocating at CA’s request, you will be eligible for the relocation assistance described in
this policy if you are a full time employee or new hire in Band K, L, or ZZ, own and reside at the
point of origination in a home that fits the criteria established by the Company described below,
and your new principal place of work is at least 50 miles farther than the old residence was from
the old place of work (i.e., your commute has increased more than 50 miles). The anticipated
duration of your assignment must be at least one year, and the relocation of your household is
necessary to significantly reduce the problems of commuting.

Certain relocation expenses for family members (spouses, partners and dependents) may also be
reimbursed. Persons eligible to relocate with the transferee under this policy include household
members and/or dependents that reside full time in the transferee’s home at the time of relocation.
Dependents are defined as: legal spouse, common law spouse in those states that recognize common
law marriage, domestic partner, legally dependent unmarried children under 19, legally dependent
unmarried children under age 25 who are full time college students, children with limiting
disabilities and/or a parent(s) who is reliant on the transferee for primary care. Dependent
family member information must be provided to the Relocation Counselor. In non marriage
situations, WRRI will require proof that individuals reside within the same residence.

If a family member currently living with you is also employed by the Company and will be employed
by the Company at the new location, all relocation assistance and expense reimbursements will be
offered and paid once.

MOVE ELIGIBILITY

To be eligible to qualify for relocation assistance, you must be able to complete your relocation
within one year of the start date of your new position. After this date you will forfeit
eligibility for certain benefits, like new home purchase assistance. You must also satisfy the
distance requirement listed below. If you do not think you will qualify in either case, contact
your Counselor (as defined below) immediately for further instructions.

	 	 	 	 	 

	1]
	 	Mileage from your old home to your new workplace:
	 	 
	 	 	 

	 	 
	2]
	 	Mileage from your old home to your old workplace:
	 	 
	 	 	 

	 	 
	3]
	 	Subtract line 2 from line 1:
	 	 
	 	 	 

	 	 
	 
	 	 	The result on line 3 must be equal to or more than 50 miles.
	 	 

YOUR RESPONSIBILITIES

Your cooperation throughout the transfer will help to ensure your move is accomplished with the
least inconvenience possible. In addition:

	•	 	You must not contact any brokers directly until you have spoken with your Counselor.
Instead, you will be referred to approved brokers at both the departure and destination
locations.

	•	 	You should retain certain receipts and other documents to verify relocation expenses and
support payments made to you by CA under this policy.

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	•	 	You are expected to comply with the time frames established for the various steps of your
relocation, as described in this policy.

	•	 	You must secure necessary approvals.

	•	 	You must prepare and submit all necessary expense reports in a timely manner.

	•	 	You must sign your Moving & Relocation Expense Repayment Agreement in the form provided by
Weichert Relocation Resources.

At the conclusion of your move, we will solicit your sincere evaluation of the services made
available to you.

HUMAN RESOURCES RESPONSIBILITIES

All relocation decisions relating to eligibility must be approved by Human Resources. Human
Resources will also make all initial authorizations for services to all service providers. Human
Resources has selected various service providers to assist with your relocation.

RELOCATION SERVICE COMPANY

CA has selected Weichert Relocation Resources, Inc. (WRRI) to assist you in selling your current
home and finding and financing your home in the new location. A WRRI Relocation Counselor
(Counselor) will be assigned as your liaison in coordinating all aspects of your relocation. The
Counselor’s primary objectives are to provide quality service to you while cost-effectively helping
us implement this policy.

FlashPoint

Your Counselor will also provide instructions for accessing FlashPoint, a customized and secure
private Internet site that provides you with “anytime” access through any Internet connection. From
your personalized FlashPoint homepage, you will be able to:

	-	 	Research destination communities
	 
	-	 	Access helpful moving tips
	 
	-	 	Query expense information
	 
	-	 	Review benefit details

You can visit WRRI’s website at www.WRRI.com for general information and when your Counselor
provides you with your PIN number, you will be able to access your own personal information.

APPROVED REAL ESTATE FIRMS / BROKERS

The real estate firms and representatives you will be referred to must meet strict standards. You
will be referred to brokers who meet these criteria and may not enter into any binding agreements
with brokers who are not approved. To retain your eligibility for certain benefits, you must use
approved brokers.

You must talk with your Counselor prior to contacting any real estate firms (or agents). The
Counselor will then call the real estate firms/agents and explain to them their role in

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coordinating with WRRI in connection with certain departure and destination area activities
attendant to your relocation and the Company’s relocation policy. One of the items that WRRI
reviews with the departure area listing broker is the Listing Exclusion Clause, more fully
described below under the heading “Listing Exclusion Clause”. The failure to include this
provision in your Listing Agreement may result in certain adverse consequences.

STANDARDS FOR COMPANY-APPROVED BROKERS

	•	 	The real estate firm/broker must have no interest (actual or contemplated) in the Company,
departure property, or the home to be purchased at destination, including any business or
family relationship with the owners of the properties.

	•	 	The real estate firm/broker must have relocation-related experience, proven track records
in your community, and the highest standards of customer service.

LUMP SUM PAYMENTS

Many of the usual relocation expense areas will be handled via a lump sum payment. The lump sum
payment is designed to reduce record-keeping requirements for your expenses, simplify
administrative processes, and provide you with the maximum flexibility possible and the opportunity
to manage your own cash flow during your relocation. If your actual expenses are less than the
lump sum allowance, you may retain the unused portion. Conversely, if your expenses exceed the
lump sum allowance, you will be responsible for these costs.

The lump sum payment varies based on the factors set forth below.

LUMP SUM COMPONENTS — The following components are included in the lump sum payment for which you
are eligible:

1. Two House Hunting Trips

	•	 	Lodging for a total of nine nights

	•	 	Per diem for meals

	•	 	Mid-size rental car

	•	 	Two round-trip airline tickets for you and your spouse/partner based upon a 14-day advance
purchase or personal auto mileage. (The distance between your old location and new location
must be greater than 250 miles to qualify for air transportation.)

2. Temporary Living

	•	 	Lodging in corporate housing (or equivalent) for 90 days

	•	 	If lodging does not have kitchen facilities, a per diem for meals will be factored in the
lump sum calculation

	•	 	Mid-size rental car for 2 weeks

	•	 	Five (5) return trips home for the employee only including coach-class airline ticket based
on a 14-day advance purchase.

The allowance for temporary living is of limited duration and will require that you focus your
efforts to obtain a new residence quickly. Per diem rates are based on hotel costs in the new
location. If your personal situation requires a longer stay, then WRRI can assist you in finding
short-term furnished housing, often at a more attractive rate. However, you will

6

 

bear any additional costs if you cannot obtain and occupy adequate housing in the time frames
described above.

CALCULATION AND PAYMENT

Calculations will be based upon your family size, expense projections for the new location, and the
elements of eligible expenses established by CA.

The applicable tax gross-up will be explained to you during the review with your Counselor of the
lump sum payment calculation. For more information please refer to the “Tax Information” section or
consult your Counselor.

Payment for the total lump sum amount will typically be in two equal installments:

	-	 	The first portion will be paid to coincide as closely as possible with your house-hunting trip;
	 
	-	 	The second portion will be paid after your start date at your new office location.

MISCELLANEOUS ALLOWANCE

This miscellaneous allowance is designed to assist in the various costs you experience to change
auto registrations, install new appliances, move any antiques or valuables which are not covered
under the shipment of household goods, or any other expense not specifically covered in some other
part of this policy. You will qualify for a miscellaneous allowance equal to your new monthly
salary up to a maximum of $25,000.

The miscellaneous allowance is taxable income and will generally be paid by CA in the next
available payroll cycle following your start date at your new office location based on CA’s payroll
cycles and processing dates.

SELLING YOUR HOME — Home Marketing Assistance and the Buyer Value Option (BVO) Program

The objective of home marketing assistance is to help you realize the most value from the sale of
your home within a reasonable period of time, enabling you and your family to purchase a home in
your new location. In order to provide every opportunity for a sale to a third party, your home
must be actively marketed. If you have not entered into a contract to sell your home within one
(1) year of your transfer date, you will no longer be eligible for the BVO program and you will
only be entitled to direct reimbursement, as described below in “SELLING YOUR HOME ON YOUR OWN”.
Your counselor will order 2 Broker Market Analysis on your home. You must list within 103% of the
most likely sales price established by the market analysis. Your counselor will also order 2 ERC
appraisals to establish a baseline value. If the appraisals are not within 5% of one another, a
third will be ordered and the average of the all three will be the baseline value. Once the
baseline value is determined, you must list your home within 103% of the value. You may opt out of
the ERC appraisals and listing price guidelines, however, you will not be eligible for the home
sale bonus.

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The services offered through the program will provide you with professional expertise and will
assist you in:

	•	 	Selecting a qualified real estate broker

	•	 	Establishing a baseline value for your home utilizing 2 ERC appraisals

	•	 	Establishing a competitive list price based on competitive market analysis

	•	 	Developing marketing strategies to increase the likelihood of a rapid sale

The Process

Your Counselor will contact you to review your relocation benefits and answer your questions. Your
Counselor will also outline the information needed from you to ensure that the home selling process
proceeds quickly and smoothly.

After this conversation, your Counselor will send you an initiation package, including:

	•	 	All required forms
	 
	•	 	Information on preparing, listing, and selling your home
	 
	•	 	Hints on home purchase in your destination location

Your Counselor will help you develop a home marketing strategy and work with you on any offers you
receive and, as indicated below, will help you select a qualified real estate broker.

IT IS IMPORTANT THAT YOU NOT INITIATE ANY WORK WITH A REAL ESTATE BROKER OR LIST YOUR HOME FOR SALE
WITHOUT FIRST SPEAKING TO YOUR COUNSELOR.

BVO Eligibility

The BVO program is available as a vehicle for the sale of your principal residence at the time you
are asked to relocate. This coverage is limited to a one- or two-family dwelling, condominium or
townhouse. You must have good and marketable title to the residence and the property must be in
saleable condition (all construction completed, eligible for lender financing, etc.)

Some properties are not eligible for the BVO program without special approval from Human Resources:

	•	 	Multiple dwellings (more than two units)
	 
	•	 	Homes with excessive acreage
	 
	•	 	Farms
	 
	•	 	Mobile homes
	 
	•	 	Cooperative apartments
	 
	•	 	Vacation homes
	 
	•	 	Income or investment properties
	 
	•	 	Vacant land
	 
	•	 	Properties with hazardous substances that cannot be remedied
	 
	•	 	Homes under construction, partially completed, require extensive renovation or which
are structurally unsound.
	 
	•	 	Homes that have undergone renovations requiring but without the appropriate permits.
	 
	•	 	Homes with synthetic stucco in need of repair.
	 
	•	 	Homes insulated with urea formaldehyde foam insulation, or which contain any other
hazardous or toxic materials or gases, including but not limited to asbestos.
	 
	•	 	Homes which are located on or near any hazardous or toxic materials or gases.
	 
	•	 	Homes that are uninsurable for normal hazard of fire and extended coverage.
	 
	•	 	Homes which have leases that cannot be terminated with the tenant with a 60 day or

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	 	 	shorter notice.

If you have any questions on program eligibility, please consult your Counselor.

The Broker Selection Process

During the selection process, we recommend that you interview the recommended brokers to assess
their ability to effectively market your home. Please advise them that you are considering using
their services and have been referred by WRRI. Some of the questions you might ask them to help you
in your selection process are:

	•	 	Which locations and price ranges do you have the most experience with?

	•	 	How many similar homes have you sold in the last six months?

	•	 	How do you intend to market my home? (How many open houses will be scheduled? What is your
advertising strategy?)

Once you have selected a broker, notify your Counselor. Remember — do not sign a Listing
Agreement until you have talked with your Counselor.

If you feel strongly about working with a real estate firm or a broker not recommended by WRRI,
please discuss this with your Counselor. The Counselor will then contact your broker to see if he
or she qualifies to participate in the BVO program explained below and explain to them various
aspects of this program, including the required “Listing Exclusion Clause”.

Listing Exclusion Clause

When it is time to sign a Listing Agreement with the broker a “Listing Exclusion Clause” must be
included in your Listing Agreement. Brokers are familiar with this type of clause when a homeowner
is participating in a relocation program.

The following Listing Exclusion Clause is required as part of your Listing Agreement with your
broker:

“It is understood and agreed that whether or not an offer is presented by a ready,
willing and able buyer, no commission or compensation shall be earned by or due and
payable to broker until the sale of the Property has been consummated between the
owner and buyer, the deed delivered to the buyer and the purchase price delivered to
the owner. The owner(s) reserves the right to sell this Property to CA, Inc.
(“Computer Associates”) or to a home sale assistance company acting on its behalf.
Upon execution by CA or the home sale assistance company and the owner(s) of a
Contract of Sale with respect to the Property, this Listing Agreement shall
immediately terminate with no obligation on owners’ part or on the part of CA or the
home sale assistance company either to pay a commission or to continue this
listing.”

In addition, it is requested that the following paragraph also be included in your Listing
Agreement. It is intended to confirm the fact that your Counselor has referred you to the broker
providing assistance.

“In consideration of the placement of the referral, and/or the

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marketing and corporate information provided by Weichert Relocation Resources, Inc.
(“WRRI”) to the listing broker, such broker agrees to pay WRRI a mutually agreed
referral fee. The listing broker authorizes the closing agent (WRRI’s title company
or attorney) to deduct the referral fee from the commission monies due at the
closing and to pay same to WRRI directly.”

Disclosure

Real estate transactions are governed by laws and regulations designed to protect the interests of
both sellers and buyers. Every home seller has certain duties and obligations to a buyer,
including full disclosure of all pertinent information about the condition of the home and its
surroundings. In this regard, you can protect both yourself and CA from potential litigation by
the timely and thorough completion of all forms and documents pertaining to the condition of your
property. It is not the intent of the Company to relieve you of your duties and obligations,
including (but not limited to) completing all necessary repairs and full disclosure.

The Home Marketing Process

As explained above, your Counselor will discuss market strategies with your listing agent as soon
as you have executed a Listing Agreement. The Counselor will follow up on buyer and broker
comments, open house events, and showing activity, and will make recommendations on selling price
adjustments, advertising strategies, and terms/conditions.

When You Receive an Offer

If you receive a bona fide purchase offer on your home at any time, contact your Counselor
immediately. A “bona fide offer” is an offer from a ready, willing and able party not related to
you in any way.

DO NOT SIGN ANY SALES AGREEMENT OR ACCEPT ANY DOWN PAYMENT OR DEPOSIT WITHOUT FIRST SPEAKING TO
YOUR COUNSELOR.

Your Counselor will assist you in determining if the offer is in your best interest and whether the
terms are acceptable to all parties. To be acceptable, the sale cannot be contingent on the sale of
another property, and it should be scheduled to close within 90 days.

The Counselor will review any proposed sale agreement to ensure that it does not contain any
contingency and that its terms are consistent with local custom. The Counselor will also
pre-qualify your home and the potential buyer for financing. If all these are determined to be
satisfactory, the Counselor will send you a Contract of Sale in which WRRI offers to buy your home
at the agreed price (which will reflect any concessions to buyer) such as the payment of buyer’s
closing costs, buyer’s inspection costs, repairs, allowances, etc. (and any other adjustments).
Once you and WRRI have signed the Contract of Sale, the Listing Agreement with the broker will
terminate and you will have no obligation to pay a broker commission there under.

Once you have signed the Contract of Sale and you have vacated your home, you will receive your
final equity payment. The closing or settlement date of the sale will be the later of the date on
which you sign the Contract of Sale or the date on which you vacate the property. All adjustments
and pro rations will be made as of the settlement date.

During the period of time you remain in your home after acceptance of an offer, you are still
responsible for the care and maintenance of the home (including repairs) and for your mortgage
payments, taxes and insurance.

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Closing the Sale and Receiving Your Equity

Upon receiving a clear title search, your Counselor will send you all the necessary closing
documents. By signing these documents, you will not be required to attend the closing. As
indicated above, the equity from the sale will be sent to you after the WRRI contract acceptance
date. An Employee in Band K, L, or ZZ that is an executive officer will not be eligible to receive
an equity advance prior to the settlement date of the sale of his or her home.

Home Sale Bonus

If you successfully find a buyer on your home within the first 90 days of marketing and list within
the guidelines set forth above, you will be eligible to receive a homesale bonus. The bonus will be
equivalent to 2% of the sales price on your home, capped at $15,000. The bonus will be paid through
payroll and applicable taxes will be withheld.

SELLING YOUR HOME ON YOUR OWN

If you choose not to work with WRRI, or do not want to follow the special rules for the BVO
program, CA will reimburse your closing costs up to a maximum of 6% of the sale price of your home.
However, all reimbursements will be reported as income to you. You will be responsible for all
income taxes associated with the reimbursement of these costs, which can be a substantial amount.
Therefore, you are strongly encouraged to participate in the BVO program if at all possible.

NEW RESIDENCE

The objective of the home finding counseling you will receive is to help you find an affordable
home as quickly as possible, and to settle into a new location with the least amount of
inconvenience and cost.

NEW HOME PURCHASE

If you currently own a home and wish to purchase a home in the new location, your Counselor will
assess your needs and develop a profile of your preferences for commuting, lifestyle, amenities,
schools, etc.

After initial counseling to assess your needs and preferences, an approved broker will assist you
in organizing an area orientation of suitable, affordable communities. This representative will
accompany you on your preview of specific homes that best meet your preferences. When you find the
right home, the Broker will assist you in preparing the Offer to Purchase, scheduling inspections
and planning your home purchase.

Building a new home is a personal decision; therefore, it is important to recognize the risks and
policy limitations associated with new construction. If you decide to build a home, you will be
responsible for additional costs directly resulting from this decision. The following points
illustrate costs that will not be reimbursed:

	•	 	Extensions of temporary living due to construction delays

	•	 	Builder’s costs relative to construction loans; only one set of eligible purchase closing
costs will be considered for reimbursement

You should evaluate the impact of the financial burden, equity risk and inconveniences associated
with your purchase decision. Furthermore, the following characteristics of the

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proposed new home should be considered in making your final decision, since they may impact the
long term value of the home. Is the home:

	•	 	Located in a residential community

	•	 	Located within an incorporated area

	•	 	Architecturally consistent with the neighborhood

	•	 	A resort or recreational property

	•	 	Consistent in property acreage within the neighborhood

NEW HOME PURCHASE ASSISTANCE/MORTGAGE PROGRAMS

This section applies to you only if you currently own your principal residence and are purchasing a
home within twelve months of your effective start date at the new location. CA will pay for some of
the closing costs associated with purchasing your new home.

To assist you in obtaining a mortgage, we have agreements with WRRI and GMAC Mortgage Services
(GMAC) to provide special mortgage programs. Under these agreements, reimbursable closing costs
will be billed directly to Computer Associates. This eliminates the necessity of obtaining an
advance to pay closing costs and/or submitting relocation expense reports for reimbursement after
closing as discussed below under Mortgage Programs. Although you are under no obligation to use
these companies, you may find their approval and processing times are shorter than what might
otherwise be available and that you qualify for more financing under their flexible underwriting
guidelines and favorable reimbursement schedule. Your Mortgage Counselor will explain the following
programs to you:

Pre-Approval

The pre-approved process enables you to get an early start on the mortgage process. A mortgage
pre-qualification certificate is a useful tool for negotiating the purchase price of the new home.
Home sellers are often willing to make concessions to buyers if they know financing will not be a
problem.

Mortgage Programs

A variety of programs are available and WRRI or GMAC will help you select the right one. Once a
home is selected, WRRI will expedite the closing process by finalizing the mortgage/finance
process.

If you choose to work with WRRI or GMAC mortgage services, the following closing costs are eligible
for payment:

	•	 	Loan Origination Fees, subject to a maximum of one point

	•	 	Title Insurance or fees for examination of title, as required by the lender

	•	 	Normal and customary escrow or closing fees charged by the title company and/or the lender
to close the sale (Not including items such as taxes and insurance that must be paid in
advance into escrow accounts.)

	•	 	Normal and customary attorneys’ fees

	•	 	Normal and customary recording fees

	•	 	Assumption or transfer fees

	•	 	Appraisal and/or survey of the new home, if required by the lender

	•	 	Credit report charges

The following fees are excluded and will not be covered:

	•	 	Application fee,

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	• 	 	Document prep fee

	•	 	Underwriting fee,

	•	 	Commitment fee

	•	 	Processing fee.

NO ORIGINATION FEES WILL BE COVERED IF PREFERRED VENDOR IS NOT USED. PREFERRED VENDORS DO NOT
CHARGE AN ORIGINATION FEE.

ALL FEES ON SECOND MORTGAGES ARE EXCLUDED AND ARE NOT COVERED

If you choose to use a lender other than WRRI or GMAC, you may request a cash advance of your
estimated closing costs, up to a maximum of $5,000. If you choose a lender outside the preferred
vendor list, the aforementioned fees are excluded from being reimbursed. Your lender is required to
give you a “good faith estimate” well in advance of the closing. At least 10 days prior to your
scheduled closing date, you should advise the Company of your request for the advance and fax a
copy of the “good faith estimate” to your Counselor. To receive reimbursement for the balance of
your closing costs, you must complete and submit a Relocation Expense Report that itemizes each
reimbursable expense, along with a copy of the final closing statement.

MOVING TO YOUR NEW LOCATION

Moving Your Household Goods

WRRI will handle arrangements for the movement of your household goods. Your Counselor will
discuss your options and help you select the right services to expedite a cost-effective move. CA
will be billed directly from the carrier for the cost of shipping your household goods. The
Company does not reimburse tips to movers. Additionally, an adult must be present when your goods
are packed and delivered.

Authorized Services

The Company will pay for the following services:

	•	 	Normal packing and necessary materials

	•	 	Transportation of household goods to the new destination

	•	 	Normal appliance services, including wiring and plumbing modifications required within the
house for disconnection and reconnection of appliances

	•	 	Delivery to the new home. Weekend or holiday delivery should be avoided (will not be
covered)

	•	 	Normal unpacking and removal of packing materials

	•	 	Storage for up to 60 days

The Company will not pay for the following services:

	•	 	Exclusive use of the van, expedited service or extra drop off/pick up stops

	•	 	Housecleaning, maid, or debris removal service at either the old or new home

	•	 	Removal or installation of wall-to-wall carpeting, draperies and/or rods, electrical
fixtures, water softeners, or similar items

	•	 	Packing or transportation of boats, trailers, airplanes, household pets, plants, building
materials, wood, or any perishable item

	•	 	Disassembly or reassembly of children’s playhouses or swing sets, portable swimming pools,
waterbeds, utility sheds, fencing, or items of a similar nature

To the extent any of these services is required, the miscellaneous allowance may be available to
pay for that service.

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Insuring Your Household Goods

The Company protects the full value of your shipment based on its weight. High value items must be
listed on a separate inventory form and are not covered by Computer Associates. The Company cannot
replace (nor will shippers agree to handle) high value items like securities, cash, art, heirlooms
or precious jewelry and, therefore, we recommend you pack and transport these items yourself.

Moving Your Vehicles

Arrangements for moving your automobiles will be handled by the same carrier who handles your
household goods or, in some cases, a dedicated automobile carrier. CA will pay the cost of moving
up to two automobiles, provided the distance of your move is greater than 500 miles.

If the distance of your move is less than 500 miles, your mileage (at the Company’s current mileage
reimbursement rates) for up to two vehicles will be reimbursed. Travel will be based on the most
direct route. If you require temporary living, you may ship one vehicle ahead of time rather than
renting a car for the entire period of temporary living.

Final Move Expenses

The Company will reimburse you for actual travel and lodging expenses incurred for you, your
spouse, and family members (as applicable) for your final move to the new location. Reimbursable
expenses include:

	•	 	Mileage (based on the current reimbursement rate) will be paid for the most direct route
for up to two vehicles unless you choose to fly and/or ship your vehicles.

	•	 	If you are shipping your automobile(s), you will be reimbursed for airfare for all family
members at the coach class rate for one-way tickets purchased at least seven days in advance.

	•	 	Per diem for meals and one night’s lodging for each 500 miles driven.

WORKING SOLUTIONS — Work/Life & Referral Service

Whether across town or across country, Working Solutions offers comprehensive employee assistance
services to help the Company’s employees and their families cope with the stress of a move, ease
the transition into a new community and locate dependent care and resources in their area. Working
Solutions provides information and referrals to a variety of helpful resources to assist with the
move and to help you settle into the new community.

Access Working Solutions via phone at 877-838-7525 (or 800-842-9489 if you are hearing impaired) 24
hours a day.

Access Working Solutions via the Web as follows:

	 	1.	 	Click the link for WorkLife from your corporate intranet or enter the URL:
https://www.liveandworkwell.com
	 
	 	2.	 	Follow the on-screen instructions. When prompted for an access code, enter 11610.

TAX INFORMATION

As you might expect, your total income will look a little different because of your move. That is
because current tax law and Internal Revenue Service (IRS) regulations require that

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we report as income all relocation expense reimbursement made to you or paid on your behalf.
Therefore, the tax effects of relocation transactions can only be determined on an individual
basis. It is important that you talk to a tax professional to find out how certain kinds of
assistance may affect your own tax situation. Keep in mind that CA will not reimburse tax
preparation or tax counseling expenses (although your miscellaneous allowance can at your
discretion be applied to these expenses).

All relocation expenses that CA pays on your behalf or directly to you are reported to the Internal
Revenue Service (IRS) as compensation, which will be included in your gross annual income. The
only exceptions are:

	•	 	The expenses associated with shipment of your household goods.

	•	 	The travel and lodging (not meals) for you and your family during the final move.

These costs are considered “excludable from income” and will not be shown on your W-2 form.

Note: This includes expenses for the day you arrive. You can include any lodging expenses you had
in the area of your former home within one day after you could not live in your former home because
your furniture has been moved.

Based on IRS and state requirements, CA will include reimbursed relocation expenses on your W-2
form in the year in which they are paid.

When you receive your W-2 form, you will also receive a statement detailing the relocation expenses
related to your move, including money paid to you to help offset tax liability from this additional
income. This is referred to as “tax gross-up”. The tax gross-up is also considered income, so in
the calculation of gross-up there is an adjustment to cover this additional tax liability.
Appropriate withholding for Federal, State, (local, Social Security, and/or Medicare) taxes will be
made, and deposited with your regular withholdings.

The tax gross-up calculation will be based on the following factors:

	•	 	How many dependents you claim and your tax filing status (single, joint, etc.).

	•	 	Company compensation is only defined to include the annualized base salary and relocation
expenses. Any commission, bonus and stock options, etc. are excluded. We will not include
any spousal income (unless your spouse is also employed with Computer Associates), even if you
are filing jointly.

	•	 	The higher of the standard deduction or estimated itemized deduction of the respective
taxing authorities.

	•	 	Your destination state.

Note: You will be responsible for all local taxes applicable in either the departure or
destination location.

Nothing in this policy should be construed as providing, directly or indirectly, Income Tax advice.
For more information about moving expenses, we suggest that you obtain IRS Publication 521 “Moving
Expenses” and that you retain the services of a professional tax advisor /preparer.

The tax gross-ups to be provided by the Company for the various “relocation expense” items are
outlined below. The actual gross-up decision is based on the deductibility of the item according to
then current IRS tax laws.

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	Relocation Expense	 	Gross-Up	 	Tax Calculation
	Lump Sum Payment

	 	Yes
	 	At individual’s tax rate
	 
	 	 	 	 
	Final Move Meals

	 	Yes
	 	At individual’s tax rate
	 
	 	 	 	 
	Mileage Reimbursement

	 	Yes
	 	At individual’s tax rate
	 
	 	 	 	 
	Miscellaneous Allowance

	 	No
	 	Withhold federal, state and local taxes
	 
	 	 	 	 
	Final Move 

Lodging/Transportation

	 	No
	 	None -not included in employee income
	 
	 	 	 	 
	Household
Goods Shipment & Storage up
To 30 days

	 	No
	 	None -not included in employee income
	 
	 	 	 	 
	30 days additional storage

	 	Yes
	 	At individual’s tax rate
	 
	 	 	 	 
	New Home Closing Costs

	 	Yes
	 	At individual’s tax rate (excl. origination
fee & points)
	 
	 	 	 	 
	Old Homesale Through WRRI

	 	No
	 	Most costs are not taxable to the
employee. Certain Seller costs are de
minimus and are included in employee’s
income. No gross-up is provided for
these amounts.
	 
	 	 	 	 
	Direct Reimbursement of Old
Home Selling Costs

	 	No
	 	Employee responsible for tax liability

You are eligible for the relocation benefits for up to 12 months from your effective date of
transfer. It is recommended that you submit relocation-related expense reports within 90 days of
the date incurred, if applicable.

Your eligibility to receive relocation benefits is subject to the terms and conditions of CA’s
Relocation Policy and is conditioned upon your signing the Moving and Expense Repayment Agreement.

RELOCATION ADDENDUM

Please be advised that in addition to the policy provisions set forth, at Management discretion,
the following can be offered on an exception basis.

Buyer Incentive

To assist an employee is securing a sale on their home a buyer incentive up to $10,000 may be
offered. This would include but not be limited to new home closing costs, decorating allowance,
etc. This would not include any sort of selling agent bonus.

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RELOCATION ADDENDUM

Please be advised that in addition to the policy provisions set forth, at Management discretion,
the following can be offered on an exception basis.

Loss On Sale

If the sales price on your home is less than the original purchase price you may be eligible for a
loss on sale benefit up to $50,000. This payment would be paid through payroll so applicable taxes
will be withheld. No capital improvements will be considered in such calculation.

17

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