SENIOR EXECUTIVE INCENTIVE COMPENSATION PLAN
Effective as of August 1, 2019
This Senior Executive Incentive Compensation Plan (the Incentive Plan) is intended to provide an incentive to align eligible executives of Schrodinger, Inc. (the Company) and its subsidiaries toward achievement and business results, to tie their goals and interests to those of the Company and its stockholders and to enable the Company to attract and retain highly qualified executives.
2. Covered Executives
From time to time, the Compensation Committee of the Board of Directors (the Board) of the Company (the Compensation Committee) may select certain key executives (the Covered Executives) to be eligible to receive bonuses hereunder.
The Compensation Committee shall have sole responsibility for administering, operating and interpreting the Incentive Plan. The Compensation Committee shall have all powers and authorities necessary or appropriate to administer and operate the Incentive Plan, including, without limitation, to determine eligibility to participate in the Incentive Plan, to determine whether and to what extent any Corporate Performance Goal (defined below) or other goals is attained, to determine whether a Covered Executives employment is terminated without cause and to interpret and construe the provisions of the Incentive Plan. The Compensation Committee shall have full discretionary authority in all matters relating to the exercise of its responsibilities and authorities under the Incentive Plan. All interpretations, constructions, determination, decisions and actions of the Compensation Committee in relation to the Incentive Plan shall be final, binding and conclusive on all Participants and all other persons.
4. Bonus Determinations
(a) A Covered Executive may receive a bonus payment under the Incentive Plan based upon the attainment of one or more performance objectives which are established by the Compensation Committee and relate to financial and operational metrics with respect to the Company (or any of its subsidiaries), any of which may be measured absolutely or by reference to an index and/or determined either on a consolidated basis or a divisional, project and/or geographic basis, (the Corporate Performance Goals). Each Corporate Performance Goal shall have a target (for example, 100 percent attainment of the Corporate Performance Goal) and may also have a minimum hurdle and/or a maximum.
(b) Except as otherwise set forth in Section 4: (i) any bonuses paid to Covered Executives under the Incentive Plan shall be based upon objectively determinable bonus formulas that tie such bonuses to one or more performance targets relating to the Corporate Performance Goals, (ii) bonus formulas for Covered Executives shall be adopted in each