2006 Success Sharing Plan for Employees

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This agreement outlines the 2006 Success Sharing Plan, which provides bonus incentives to eligible full-time and certain part-time employees based on the company's revenue, bookings, and operating income performance. Employees not on specific commission or sales-related plans may qualify, subject to employment status and performance criteria. Bonuses are calculated as a percentage of base salary and are split between corporate and individual performance, with managers able to adjust individual payouts. The plan includes specific eligibility rules, performance thresholds, and payout timing.

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EX-10.14 13 a2179526zex-10_14.htm EXHIBIT 10.14

Exhibit 10.14

2006 Success Sharing Plan

Objectives

    •
    Provide strong incentives to achieve revenue and operating income plans

    •
    Allow employees to share in the company's results

    •
    Provide managers with the ability to award top performers

Eligibility/Administrative Guidelines

    •
    Includes all full-time employees and certain part-time employees (see second bullet) not on the following plans:

    •
    Commission

    •
    Account Management

    •
    Business Development

    •
    Consulting

    •
    Sales Support

    •
    Account Development

    •
    Part-time employees must be employed for twelve months prior to payout date

    •
    Employees hired in first half are eligible for the second half bonus while those hired in the second half are not eligible for a bonus

    •
    Employees on performance improvement plan at anytime during the 6 month period are not eligible

    •
    Employees must be actively on payroll at the time of payment to receive an award
    •
    All awards calculated on the employee's base salary at the end of the award period

 
   2005
   2006
Funding Components   50% Revenue
50% Operating Income		   50% Bookings
50% Operating Income
Corporate Performance Funding   1H
Revenue
<92.5% = 0%
92.5 – 99% = 50%
> or = 100% = 100%*		   Bookings
<90% = 0%
90 – 99% = 50%
> or = 100% = 100%*
    Operating Income
<95% = 0%
95 – 99% = 50%
> or = 100% = 100%*		   Operating Income
<95% = 0%
95 – 99% = 50%
> or = 100% = 100%
    2H
Revenue and Operating Income
<95% = 0%
95 – 99% = 50%
> or = 100% = 100%*		    
Employee Bonus Percent   Director: 4-12%
Manager: 3-9%
Employee: 2-6%		   Director: 4-12%
Manager: 3-9%
Employee: 2-6%
Individual Payout   50% Corporate performance paid out based on employee's bonus percent   50% Corporate performance paid out based on employee's bonus percent
    50% Individual performance paid out based on employee's bonus percent adjustable by managers based on employees performance   50% Individual performance paid out based on employee's bonus percent adjustable by managers based on employees performance
Timing   Halves—50% 1H and 50% 2H—stand alone   Halves—50% 1H and 50% 2H—year-to-date
    *Discretionary accelerators for over achievement in both operating income and revenue achievement   *Discretionary accelerators for over achievement in both operating income and revenue achievement

Payout Example

        Assumptions:

    •
    1H Corporate attainment is 100% = 100% funding/payout

    •
    Employee A is an individual contributor with an annual salary of $35,000 and is an average performer

    •
    Employee B is also an individual contributor with an annual salary of $35,000 and is a top performer

Employee A

 
   Corporate Component
   Individual Component
   Total
Annual Target   $ 700.00   $ 700.00   $
 1,400
(35000*.04)
1H Target   $ 350.00   $ 350.00   $ 700.00
1H Payout   $ 350.00   $
 175.00
(25% of pool)		   $ 525.00

Employee B

 
   Corporate Component
   Individual Component
   Total
Annual Target   $ 700.00   $ 700.00   $
 1,400
(35000*.04)
1H Target   $ 350.00   $ 350.00   $ 700.00
1H Payout   $ 350.00   $
 525.00
(75% of pool)		   $ 875.00