Ixia 2000 Employee Bonus Plan

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

Ixia's 2000 Bonus Plan sets out how employees (excluding commissioned staff and those hired in December 2000) can earn a bonus based on the company's net revenues for fiscal year 2000. The plan specifies that no bonus is paid if net revenues are below $45.7 million. Eligible employees receive a bonus calculated as a percentage of their actual earnings, with the percentage increasing as company revenues rise. Employees must be employed at the time of payment to qualify. The plan was approved by Ixia's Board of Directors on September 1, 2000.

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EX-10.16 10 v62736a1ex10-16.txt EXHIBIT 10.16 1 EXHIBIT 10.16 IXIA 2000 BONUS PLAN The Company believes that a portion of each employee's annual compensation should be directly related to the Company's financial performance. Accordingly, the fiscal 2000 Bonus Plan is designed to motivate and reward employees for achieving certain key financial results. The Company believes that the achievement of these goals and objectives is essential for the Company's success and for the continued growth of shareholder value. FINANCIAL MEASURE Net revenues, as determined in accordance with GAAP, will be the sole financial measure for determining the level of bonus to be paid to employees. Performance will be measured relative to the Company's net revenues for fiscal 2000. No bonus will be payable if the Company's net revenues for fiscal 2000 are less than $45,700,000. Eligibility All employees of Ixia and its subsidiaries are eligible to participate with the following exclusions: 1. Commissioned employees 2. Employees hired in December 2000 Employees must be employed by Ixia or one of its subsidiaries on the date of payment to be eligible to receive a bonus payment. PARTICIPATION LEVELS The bonus is to be calculated as a percentage of an employee's actual earnings during fiscal 2000, excluding certain payments (e.g., reimbursement of moving expenses, car allowances, bonus payments, sign-on bonuses, gains from stock option exercises and similar payments). The applicable percentage will be determined based on the net revenues achieved by the Company for fiscal 2000. For purposes of determining an employee's bonus, the percentages to be applied to actual earnings are as follows for the net revenue levels listed below:
- ------------------------------------------------------------------------------------------------- 2000 NET REVENUES PRESIDENT AND CFO AND OTHER ($) VP WW SALES VPS DIRECTORS ALL OTHERS - ------------------------------------------------------------------------------------------------- $45,700,000 75% 40% 15% 10% - ------------------------------------------------------------------------------------------------- 47,985,000 80% 43% 17% 11% - ------------------------------------------------------------------------------------------------- 50,270,000 85% 46% 19% 12% - ------------------------------------------------------------------------------------------------- 52,555,000 90% 49% 21% 13% - ------------------------------------------------------------------------------------------------- 54,840,000 95% 52% 23% 14% - ------------------------------------------------------------------------------------------------- 57,125,000 100% 55% 25% 15% - ------------------------------------------------------------------------------------------------- 59,410,000 105% 58% 26% 15% - ------------------------------------------------------------------------------------------------- 61,695,000 110% 61% 27% 15% - ------------------------------------------------------------------------------------------------- 63,980,000 115% 64% 28% 15% - ------------------------------------------------------------------------------------------------- 66,265,000 120% 67% 29% 15% - ------------------------------------------------------------------------------------------------- 68,550,000 125% 70% 30% 15% - ------------------------------------------------------------------------------------------------- 70,835,000 130% 73% 30% 15% - ------------------------------------------------------------------------------------------------- 73,120,000 135% 76% 30% 15% - ------------------------------------------------------------------------------------------------- 75,405,000 140% 79% 30% 15% - ------------------------------------------------------------------------------------------------- 77,690,000 145% 82% 30% 15% - ------------------------------------------------------------------------------------------------- 79,975,000 150% 85% 30% 15% - -------------------------------------------------------------------------------------------------
This Plan was duly adopted and approved by the Board of Directors of the Company on September 1, 2000. /S/ RONALD W. BUCKLY - ------------------------------------ Ronald W. Buckly, Secretary