Aware, Inc. 2018 Executive Bonus Plan for Kevin Russell and David Martin
Aware, Inc. established a 2018 Executive Bonus Plan for executives Kevin Russell and David Martin. Under this plan, each executive is eligible for a cash bonus based on the company's profit before taxes (PBT) for 2018, as determined by the Compensation Committee. Bonus amounts vary depending on how actual PBT compares to a set target, with higher bonuses for exceeding the goal. Bonuses are paid about 45 days after year-end, subject to taxes and approval by the Compensation Committee. Pro-rated bonuses may be given in cases of retirement, disability, death, or termination without cause. All other terminations result in forfeiture of the bonus.
Exhibit 10.1
Aware, Inc. 2018 Executive Bonus Plan
Aware, Inc. (the “Company”) executives, Kevin Russell and David Martin (the “Participants”) will be eligible to receive bonuses as described below based upon the achievement by the Company of a profit before taxes (“PBT”) target (the “2018 Plan PBT Goal”) determined by the Compensation Committee of the Company’s Board of Directors.
The amount of the bonus earned by a Participant will depend upon the Company’s actual 2018 PBT, as compared to the 2018 Plan PBT goal. The following tables will be used to determine the applicable bonuses:
Kevin Russell
| Actual PBT as a % of 2018 Plan PBT Goal | Bonus Amount |
| Less than 100% of 2018 Plan PBT Goal | $0 |
| 100% of 2018 Plan PBT Goal | $25,000 |
| 125% of 2018 Plan PBT Goal | $50,000 |
| 150% or more of 2018 Plan PBT Goal | $100,000 |
David Martin
| Actual PBT as a % of 2018 Plan PBT Goal | Bonus Amount |
| Less than 100% of 2018 Plan PBT Goal | $0 |
| 100% of 2018 Plan PBT Goal | $15,000 |
| 125% of 2018 Plan PBT Goal | $35,000 |
| 150% or more of 2018 Plan PBT Goal | $70,000 |
The amount of bonus payable will be subject to linear interpolation to reflect actual 2018 PBT between the 2018 Plan PBT Goal and 125% of 2018 Plan PBT Goal or between 125% of 2018 Plan PBT Goal and 150% of 2018 Plan PBT Goal.
Bonus payouts, to the extent earned, will be paid approximately 45 days following the end of the 2018 fiscal year. All bonus payouts are subject to statutory deductions and are taxable at the time of payment. In the event that Mr. Russell’s or Mr. Martin’s employment by the Company terminates during the fiscal year by reason of retirement, total and permanent disability, or death, the terminated person will receive a pro-rated bonus. If Mr. Russell’s or Mr. Martin’s employment by the Company is terminated by the Company without cause, the Compensation Committee may, in its discretion, award the terminated person a pro-rata bonus. In the event that Mr. Russell’s or Mr. Martin’s employment terminates for any other reason, including resignation and discharge for cause prior to the bonus payout date, all rights to a bonus will be forfeited. All payouts from this bonus plan are subject to final approval by the Compensation Committee, which shall have the authority to reduce, but not increase, any amounts payable under the Plan.
The adoption and maintenance of the 2018 Executive Bonus Plan shall not be deemed a contract of employment. Nothing herein contained shall be deemed to give Mr. Russell or Mr. Martin the right to be retained in the employ of the Company or to interfere with the right of the Company to discharge Mr. Russell or Mr. Martin at any time, nor shall it interfere with Mr. Russell or Mr. Martin’s right to terminate their employment at any time.
