InFocus Corporation 2001 Executive Bonus Plan for Corporate Vice Presidents
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Summary
This agreement outlines InFocus Corporation's 2001 Executive Bonus Plan for its Corporate Vice Presidents. The plan provides eligible Corporate Vice Presidents with quarterly profit-sharing payments and an annual bonus based on the company's financial performance and individual achievement of set objectives. To qualify, participants must be employed for the full quarter or year, with pro-rated bonuses for partial-year service. The Board of Directors retains discretion to modify or supplement the plan at any time.
EX-10.20 4 a2041819zex-10_20.htm EXHIBIT 10.20 Prepared by MERRILL CORPORATION www.edgaradvantage.com
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EXHIBIT 10.20
INFOCUS CORPORATION
2001 EXECUTIVE BONUS PLAN
CORPORATE VICE PRESIDENT
| POLICY: | It is InFocus Corporation's policy to provide Corporate Vice Presidents the opportunity for increased compensation based upon InFocus Corporation's overall achievement of Corporate profit goals. NOTE: A Corporate Vice President manages a central function regardless of geographical location. | |||||||||||
GUIDELINES: | 1. | Adoption of Plan | ||||||||||
This Corporate Vice President Bonus Plan (the "Plan") was adopted by the Board of Directors of InFocus Corporation (the "Company") effective January 24, 2001. | ||||||||||||
2. | Purpose of Plan and Effective Date | |||||||||||
The purpose of the Plan is to establish the terms and conditions under which the Company will pay Corporate Vice President bonuses for the calendar year beginning January 1, 2001, and ending December 31, 2001. | ||||||||||||
Unless the Board of Directors specifically provides otherwise, all Corporate Vice President bonuses will be awarded solely in accordance with this Plan. | ||||||||||||
3. | Eligibility | |||||||||||
Eligibility is limited to the Corporate Vice President of the Company. | ||||||||||||
Eligible Corporate Vice Presidents must be in active pay status for an entire quarter to be paid profit sharing for that quarter. | ||||||||||||
In the event that a Corporate Vice President is in the position for less than one year, a pro-rated bonus will be calculated based on number of months employed. No annual bonus will be paid if a Corporate Vice President enters the position after October 1, 2001. Corporate Vice Presidents must be actively employed on the last day of the year to be eligible for any annual bonus amount. | ||||||||||||
4. | Plan Components | |||||||||||
(a) Profit Sharing | ||||||||||||
The first component of the bonus plan shall be the payment of the profit sharing, paid quarterly. The percentage to be paid (multiplied by the Corporate Vice President's quarterly salary) shall be at the same rate as calculated for other employees in accordance with the currently approved InFocus Corporation Profit Sharing Program. The payment to be made to the Corporate Vice Presidents shall not reduce the amount to be paid to other employees, i.e., shall not come from the profit-sharing pool calculated for other employees. | ||||||||||||
(b) Annual Bonus | ||||||||||||
The second component of the bonus plan shall be an annual bonus paid at year end based on: (1) the Company's 2001 financial performance (Profit Before Tax), and (2) the performance of the Corporate Vice President against his/her individual goals/objectives. This payout shall be calculated as follows: | ||||||||||||
• | The targeted bonus shall be 35 percent of base salary and shall be calculated using the following formula: | |||||||||||
Bonus = (70%C + 30%I ) (35%) | ||||||||||||
where: | ||||||||||||
> | C = Corporate PBT performance (vs. Operating Plan) calculated by dividing actual 2001 Profit Before Tax (PBT) plus income/loss from joint venture activity by Operating Plan PBT plus planned income/loss from joint venture activity. | |||||||||||
> | I = Individual Performance Objectives/MBOs (versus 2001 Corporate goals) determined by the CEO, by comparing the individual Corporate Vice President's performance against his/her Individual Performance Objective/MBOs. | |||||||||||
NOTE: MBO's must be quantifiable and measurable. In addition they must be submitted and approved by HR no later than March 30, 2001. | ||||||||||||
Other limitations/constraints regarding calculation of the bonus are as follows: | ||||||||||||
CORPORATE PORTION: | ||||||||||||
> | Minimum threshold of 75% of PBT or no payout of this portion | |||||||||||
> | No cap on Corporate portion | |||||||||||
> | An accelerator shall apply to above plan performance starting at 100% of plan. For every percent above 100%, 2.5% shall be multiplied by the Target Bonus Percentage. | |||||||||||
INDIVIDUAL (MBO) PORTION: | ||||||||||||
Below Plan Thresholds: | ||||||||||||
> | Minimum threshold of 75% of MBOs or no payout of either portion | |||||||||||
> | Minimum threshold of 50% Corporate PBT or no payout of the MBO portion | |||||||||||
> | MBO portion reduced when Corporate PBT is between 50% and 75% | |||||||||||
Above Plan Performance: | ||||||||||||
> | Cap of 130% on MBO portion | |||||||||||
> | No accelerator on MBO portion | |||||||||||
5. | Payment of Corporate Vice President Bonus | |||||||||||
Payment of the Corporate Vice President Bonus Plan will be based on audited year-end results, and will be distributed within 30 days after the audit has been completed. | ||||||||||||
6. | Discretion of the Board of Directors | |||||||||||
Nothing in this Plan shall prohibit the Board of Directors from awarding a bonus to one or more Corporate Vice Presidents in addition to the Corporate Vice President Bonus awarded pursuant to this Plan. The Board of Directors reserves the right to modify, change or rescind this policy at any time at its sole discretion as is required to meet the Company's objectives. | ||||||||||||
2001 Executive Bonus Plan
Corporate Vice President
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