2013 EXECUTIVE PERFORMANCE BONUS PLAN
Exhibit 10.1
2013 EXECUTIVE PERFORMANCE BONUS PLAN
Purpose
Pursuant to the authority granted under CombiMatrix Corporation Compensation Committee Charter, the Compensation Committee (the “Committee”) of CombiMatrix Corporation (the “Company” or “our”) has adopted this 2013 Executive Performance Bonus Plan (the “Plan”) effective as of May 31, 2013. The purpose of this Plan is to motivate executives to achieve the Company’s objectives and to minimize turnover for participants. The Plan is intended to permit the payment of bonuses that qualify as performance-based compensation under Internal Revenue Code Section 162(m).
Structure
The performance bonus shall be tied exclusively to the achievement of our 2013 net revenue target as determined by the Committee. The following table shows the target bonus amount, based on the level of achievement of our 2013 revenue target. The range is between 90% - 150% of the 2013 target. Anything below 90% will not qualify for bonus payout; anything above 150% will be paid out at that level.
| % of |
|
|
|
| Budgeted |
|
|
|
| Revenues |
|
|
|
| Achieved |
| Bonus Amount |
|
| 90% |
| $25,000 |
|
| 100% |
| $50,000 |
|
| 110% |
| 30% of Base Salary |
|
| 130% |
| 40% of Base Salary |
|
| 150% |
| 50% of Base Salary |
|
There shall be no pro rata increase in bonus payout between the 90% and 100% target level achieved, but that bonus payments will be computed on a pro rata basis between 101% and 150% of the target achieved, which shall be the cap for the bonus plan.
Eligible Executives
The following three executives are eligible for this program:
Mark McDonough, CEO
Scott Burell, CFO
Rick Hockett, Jr., M.D., CMO
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Payments
In order to receive a bonus, the participant must be employed by CombiMatrix or CombiMatrix Diagnostics at the time bonuses are distributed. Bonus calculation will occur once the auditors have completed their annual audit and the revenue numbers are known, and will be paid out within seventy-five days following December 31, 2013.
To be better aligned with the goals of the organization as a whole, Mark McDonough will forfeit his separate compensation plan. The following schedule provides an example of what the payouts would be based on the Company achieving 100% of the budgeted revenue target:
|
|
|
|
| % of |
|
|
| ||
|
|
|
|
| Budgeted |
|
|
| ||
|
|
| Annual |
| Revenues |
| Bonus |
| ||
| Participant |
| Salary |
| Achieved |
| Amount |
| ||
| Mark McDonough |
| $ | 260,000 |
| 100% |
| $ | 50,000 |
|
| Scott R. Burell |
| $ | 236,974 |
| 100% |
| $ | 50,000 |
|
| Rick Hockett |
| $ | 350,001 |
| 100% |
| $ | 50,000 |
|
In the event the Company achieved 150% of the revenue target or above, the maximum potential payouts would be:
|
|
|
|
| % of |
|
|
| ||
|
|
|
|
| Budgeted |
|
|
| ||
|
|
| Annual |
| Revenues |
| Bonus |
| ||
| Participant |
| Salary |
| Achieved |
| Amount |
| ||
| Mark McDonough |
| $ | 260,000 |
| 150% |
| $ | 130,000 |
|
| Scott R. Burell |
| $ | 236,974 |
| 150% |
| $ | 118,487 |
|
| Rick Hockett |
| $ | 350,001 |
| 150% |
| $ | 175,001 |
|
The Compensation Committee retains the latitude to adjust, or eliminate the award, due to unforeseen circumstances. The EPB, as described is revenue driven. To be successful and receive the Compensation Committees payout approval, gross margin percentage, expense ratios, cash burn targets, and cash collections budgets, need to be generally comparable to those defined in the 2013 CBMX consolidated budget. The Committee wishes to encourage management and will not withhold approval, if there is substantial performance improvement during 2013.
Respectfully submitted,
THE COMPENSATION COMMITTEE
CombiMatrix Corporation
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