Descriptionof Sales Executive Compensation Plan AndSummary Forms of Notice

EX-10.6 7 a05-2508_1ex10d6.htm EX-10.6

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:
Quarterly Revenue Bonus
Payment Schedules

 

TABLE II:
Quarterly Geographic Contribution
Margin Payment Schedule

% Achieved

 

Schedule A
% of Quarterly
Revenue
Bonus Paid

 

Schedule B
% of Quarterly
Revenue Bonus Paid
When Quarterly
Contribution Margin
is Met

 

% Achieved

 

% of Quarterly
Contribution Margin
Bonus Paid

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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:
Quarterly Revenue Bonus
Payment Schedules

 

TABLE II:
Quarterly Product Group Gross Margin
Bonus Payment Schedule

% Achieved

 

% of Quarterly Product Revenue
Bonus Paid

 

% Achieved

 

% of Quarterly Gross
Margin Bonus Paid

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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:
Quarterly Revenue Bonus
Payment Schedule

 

TABLE II:
Quarterly Product Group Gross Margin Bonus
Payment Schedule

% Achieved

 

% of Quarterly
Product Revenue
Bonus Paid

 

% Achieved

 

% of Quarterly
Gross Margin
Bonus Paid

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)