Descriptionof Sales Executive Compensation Plan AndSummary Forms of Notice
EXHIBIT 10.6
Description of Sales Executive Compensation Plan
And Summary Forms of Notice
[Name]
Annual Target Compensation Mix |
Base Salary:
Target Incentive (TI): % of Base Salary
On Target Earnings (OTE):
OTE Quarterly Plan Components |
I. Quarterly Geographic (Products & Service) Revenue Bonus:
Quarterly Revenue Bonus equals % of TI ( % of TI each quarter).
Paid quarterly based on performance against quarterly revenue plan.
Quarterly bonus payment per Table I, Schedule A
If both the Quarterly Revenue and the Quarterly Geographic Contribution Margin (dollar) plans are met or exceeded (i.e. achievement on both is >100%) in the same quarter, payment for the revenue bonus will be paid on a higher schedule. (Table I, Schedule B).
II. Quarterly Geographic Contribution Margin:
The Quarterly Geographic Contribution Margin represents % of TI ( % TI each quarter).
Paid quarterly based on performance against Quarterly Geographic Contribution Margin Plan.
Quarterly bonus payment per Table II.
Measurement is based on Geographic Contribution Margin dollars.
Approved by: Date:
Definitions:
Base Salary: The non-variable portion of total on-target earnings (OTE).
Target Incentive (TI): Total variable amount an Executive would receive by meeting his/her targets.
On-Target-Earnings (OTE): Total cash paid to an Executive for meeting specified individual targets.
TABLE I: |
| TABLE II: | ||||||
% Achieved |
| Schedule A |
| Schedule B |
| % Achieved |
| % of Quarterly |
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Payment Calculations: For purposes of bonus payment calculations, actual achievement will be rounded to a whole number using conventional rounding (i.e. .01 - .49 will be rounded DOWN .5 - .99 will be rounded UP)
FY 05 Executive Compensation Plan
[Name]
Annual Target Compensation Mix |
Base Salary:
Target Incentive (TI): % of Base Salary
On Target Earnings (OTE):
OTE Quarterly Plan Components |
I. Quarterly Product Group Revenue Bonus:
Quarterly Revenue Bonus equals % of TI( % of TI each quarter).
Paid quarterly based on performance against quarterly Product Group revenue plan.
Quarterly bonus payment per Table I
II. Quarterly Product Group Gross Margin:
The Quarterly Product Group Gross Margin represents % of TI ( %TI each quarter).
Paid quarterly based on performance against Quarterly Product Group Gross Margin Plan.
Quarterly bonus payment per Table II.
Approved by: Date:
Definitions:
Base Salary: The non-variable portion of total on-target earnings (OTE).
Target Incentive (TI): Total variable amount an Executive would receive by meeting his/her targets.
On-Target-Earnings (OTE): Total cash paid to an Executive for meeting specified individual targets.
TABLE I: |
| TABLE II: | ||||||
% Achieved |
| % of Quarterly Product Revenue |
| % Achieved |
| % of Quarterly Gross | ||
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Payment Calculations: For purposes of bonus payment calculations, actual achievement will be rounded to a whole number using conventional rounding (i.e. .01 - .49 will be rounded DOWN .5 - .99 will be rounded UP)
FY 05 Executive Compensation Plan
[Name]
Annual Target Compensation Mix
Base Salary:
Target Incentive (TI): | % of Base Salary |
On Target Earnings (OTE):
OTE Quarterly Plan Components
I. Quarterly Strategic Technology Initiative Contract Bonus (Q1 & Q2 only):
Quarterly Contract Bonus equals % of TI.
A one-time payment based on the successful completion of the contract. Determination of the successful completion will be made by Finance and Legal.
The maximum payout for this opportunity is % of TI.
II. Quarterly Strategic Technology Initiative Revenue Bonus (Q3 & Q4 only):
Quarterly Revenue Bonus equals of TI ( % of TI each quarter).
Paid quarterly based on performance against quarterly Strategic Technology Initiative revenue plan.
Quarterly bonus payment per Table I
III. Quarterly Strategic Technology Initiative Gross Margin (Q3 & Q4 only):
The Quarterly Product Group Gross Margin Bonus represents % of TI ( %TI each quarter).
Paid quarterly based on performance against Quarterly Strategic Technology Initiative Gross Margin Plan.
Quarterly bonus payment per Table II.
Approved by: | Date: |
Definitions:
Base Salary: The non-variable portion of total on-target earnings (OTE).
Target Incentive (TI): Total variable amount an Executive would receive by meeting his/her targets.
On-Target-Earnings (OTE): Total cash paid to an Executive for meeting specified individual targets.
TABLE I: |
| TABLE II: | ||||||
% Achieved |
| % of Quarterly |
| % Achieved |
| % of Quarterly | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment Calculations: For purposes of bonus payment calculations, actual achievement will be rounded to a whole number using conventional rounding (i.e. .01 - .49 will be rounded DOWN .5 - .99 will be rounded UP)