ADVANCEDPOWER TECHNOLOGY, INC. INCENTIVE BONUS PLAN
Exhibit 10.32
ADVANCED POWER TECHNOLOGY, INC.
INCENTIVE BONUS PLAN
Plan Summary
Certain of Advanced Power Technology, Inc.s (APT) management employees, including executive officers, are eligible for the Incentive Bonus Plan (Plan).
The bonus is based on APTs consolidated pro forma profit before tax and before incentive bonus expense (PBT). Pro forma profit before tax is the profit measure APTs management uses to evaluate ongoing operations and excludes such items as non-cash acquisition related charges, restructuring activities, and deferred tax valuation charges.
Each Plan participant is eligible to receive a bonus up to a certain percentage of their annual salary (Participation Level). The Participation Level for each eligible employee, except for the Executive Officers, is determined solely at APT managements discretion. The Executive Officers Participation Level as well as the PBT target for 100% payout for all Plan participants is approved annually by APTs Board of Directors. Payouts are calculated quarterly in direct proportion to the amount of PBT achieved in relation to the 100% PBT target set by the Board of Directors. The following is an example of a quarterly payout for an eligible employee.
Payout Example
Quarterly 100% PBT Target | = | $3,000,000 |
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Employee Participation Level | = | 10% |
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Employee Annual Salary | = | $80,000 |
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Employee Quarterly 100% Bonus | = | $2,000 ($80,000 x 10%/4) |
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Actual PBT for a Quarter | = | $1,500,000 |
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Percentage of Target | = | 50% ($1,500,000/$3,000,000) |
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Employee Quarterly Bonus Payout | = | $1,000 ($2,000 x 50%) |
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Executive Officer Participation Level
The Participation Level of APTs executive officers are as follows:
Name |
| Position |
| Participation Level |
Patrick P.H. Sireta |
| President, Chief Executive Officer and Chairman of the Board of Directors |
| 87.5% |
Russell J. Crecraft |
| Executive Vice President & Chief Operating Officer |
| 50.0% |
Greg M. Haugen |
| Vice President, Finance and Administration, Chief Financial Officer and Secretary |
| 50.0% |
John I. Hess |
| Vice President, Switching Power Products |
| 50.0% |
Thomas A. Loder |
| Vice President, Sales and Marketing |
| 50.0% |
Dah Wen Tsang |
| Vice President, Engineering and Research and Development |
| 50.0% |
Charles C. Leader, III |
| Vice President, Military, Avionics, and Radar Products |
| 35.0% |
George J. Krausse, III |
| Vice President, Commercial RF Products |
| 25.0% |