Iomega 2007 Corporate Bonus Plan
Iomega Corporation's 2007 Corporate Bonus Plan sets out an incentive program for executive and non-executive employees, based on the company's annual operating income goals. Employees are eligible for bonus payouts if the company meets certain profitability targets, with payouts ranging from 75% to 100% of the target bonus depending on performance. Only employees employed at the time of payout are eligible, and the company reserves the right to change or discontinue the plan at any time. Commissioned sales employees and those on performance improvement plans are excluded.
Exhibit 10.25
Iomega 2007 Corporate Bonus Plan
Background for Plan
| • | For Fiscal Year 2007, the Board of Directors has recognized the need to provide an incentive to employees to facilitate the goal to return the company to sustained profitability and instill a culture of individual accountability. |
| • | The Board of Directors further recognized: |
| • | Employment agreements with certain employees to provide bonus metrics each fiscal year, and |
| • | The benefits of a simplified plan with operating profitability metrics that focus all participants, regardless of level or geographic location, on the company’s profit goals |
2007 Corporate Bonus Plan
Plan Structure:
| • | Executive and non-executive employees participate in the same Plan |
| • | Plan is based on the Annual Operating Income goals |
| • | Payout is based on corporate metrics only |
| • | The Plan has two payout points, with a linear slope |
| • | 75% payout for a threshold achievement |
| • | 100% payout for threshold or higher achievement |
| • | Linear slope between 75% and 100% |
| • | No accelerators beyond the 100% payout |
| • | Annual plan period |
Administrative Details
| • | Payout calculations will occur after audit review, Board review and public announcement of the 2007 fiscal year results |
| • | Any payments would generally occur in early February |
| • | Commissioned sales employees are not eligible |
| • | For participants employed by Iomega for only part of the fiscal year, participation is pro-rated based on hire date or approved leave of absence |
| • | Must be employed by Iomega on the date of payout to receive any bonus |
| • | Bonus may not be paid to those on a formal performance improvement plan |
| • | Company can modify or discontinue Plan at its sole discretion at any time |
