iBasis, Inc. 2008 Executive Bonus Plan Agreement

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This agreement outlines the 2008 Executive Bonus Plan for iBasis, Inc., covering executive officers, vice presidents, and key employees. Bonus payouts are based on the company's achievement of Adjusted EBITDA targets set in the approved 2008 Annual Financial Plan. Bonuses increase with performance, up to a maximum of 200% of the target amount, and are subject to the Compensation Committee's discretion. Target bonus amounts for named executives are specified, with payouts accrued quarterly and paid after year-end.

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EX-10.1 2 a5624494ex10_1.txt EXHIBIT 10.1 Exhibit 10.1 2008 EXECUTIVE BONUS PLAN The 2008 Executive Bonus Plan (the "Bonus Plan") covers executive officers, vice presidents and other key employees. The basis for determining bonus payouts under the Bonus Plan is the percentage achievement by iBasis of the Adjusted EBITDA amount reflected in the iBasis, Inc. 2008 Annual Financial Plan (the "Financial Plan") as approved by Board of Directors. The bonus payout will increase linearly from zero bonus at zero Adjusted EBITDA to 100% of the target bonus amount payable upon achievement of 100% of the Adjusted EBITDA under the Financial Plan. By contrast, from achievement of 100% of the Adjusted EBITDA under the Financial Plan up to achievement of 150% of the Adjusted EBITDA under the Financial Plan, the bonus payout will increase linearly from 100% of the target bonus amount to 200% of the 2008 target bonus amount. Bonus payouts under the Bonus Plan are capped at 200% of the target bonus amount. The bonus payouts under the Bonus Plan may, at the discretion of the Compensation Committee of the Board of Directors, be less than or greater than the target bonus amounts, depending on the performance of iBasis's business and its employees, regardless of achievement of the goals upon which such bonuses are based. The target bonus amounts under the Bonus Plan are contained in the table below.
2008 2008 Base Target Name Title Named Executive Officer Salary Bonus - -------------------------------------------------------------------------------- --------------- ------------- Ofer Gneezy President & Chief Executive Officer 490,000 490,000 Gordon VanderBrug Executive Vice President 360,000 360,000 Richard Tennant Senior Vice President, Finance & Chief Financial Officer 313,000 228,000 Paul Floyd Senior Vice President, Engineering & 275,000 209,000 Operations
These target bonus amounts will be accrued quarterly based on year-to-date achievement of the Financial Plan. Bonus payouts will be paid following the end of the year.