2008 Incentive Compensation Program Amir Bassan-Eskenazi, President and Chief Executive Officer

Base Salary (annual):

Bonus Potential

First Half:

Second Half:

Annual:

Total:

1) Achieve revenues goal

2) Achieve earnings goal

3) Achieve product release schedule goal

4) Achieve specified product plan goal

5) Achieve specified new product sales goal

6) Achieve specified customer satisfaction goal

7) Achieve employee satisfaction and retention goal

Total

Base Salary (annual):

Bonus Potential

First Half:

Second Half:

Annual:

Total:

1) Achieve earnings goal

2) Achieve cash and investments goal

3) Achieve expense hedging goal

4) Achieve investor relations, financial analyst relations, and operating results goals

5) Achieve financial controls goal

6) Achieve corporate governance goal

7) Achieve internal communication goal

8) Achieve employee satisfaction and retention goal

Total

Base Salary (annual):

Bonus Potential:

First Half:

Second Half:

Annual:

Total:

1) Achieve specified bookings goal

2) Achieve specified margins goal

3) Achieve cost reduction and operating cost of goods goal

4) Achieve product footprint goal

5) Achieve SDV market share goal

6) Achieve product delivery goal

7) Achieve product support goal

8) Achieve development process goal

9) Maintain low product returns

10) Maintain TL9000 certification

11) Achieve product release schedule goal

12) Achieve specified product plan goal

13) Achieve new product sales goal

14) Achieve customer satisfaction goal

15) Achieve customer response time goal

16) Achieve employee satisfaction and retention goal

Total

Base Salary (annual):

Bonus Potential:

First Half:

Second Half:

Annual:

Total:

1) Achieve sales contracting goal

2) Achieve specified product goal

3) Achieve partnership and distribution goal with respect to new product

4) Achieve specified marketing goal with respect to new product

5) Achieve direct marketing roll-out goal

6) Achieve employee satisfaction and retention goal

Total

Base Salary (annual):

Bonus Potential:

First Half:

Second Half:

Annual:

Total:

1) Achieve specified product demonstration and trials goal

2) Achieve specified SDV development goal

3) Achieve specified product demonstration and development goal

4) Achieve QAM development strategy goal

5) Achieve specified on-demand product strategy goal

6) Achieve customer relations and positioning goal

Total