2005 Executive Bonus Plan for Officers of the Company
This agreement outlines the 2005 Executive Bonus Plan for company officers with the title of vice president or above. The plan sets target bonuses determined by the Compensation Committee, with actual payouts based on company performance in areas like product development and revenue. Bonuses are calculated using a payout ratio tied to specific objectives and are paid 45 days after the fiscal year ends. All bonus amounts and criteria are subject to approval by the Compensation Committee.
Exhibit 10.4
2005 EXECUTIVE BONUS PLAN
| Eligibility: | Eligible employees are all officers of the company with the title of vice president or above. |
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| Target Bonus: | Target bonuses for each eligible employee will be determined by the Compensation Committee based on input from the Chief Executive Officer. |
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| Actual Bonus: | A bonus payout ratio will be calculated, based on the Company’s performance to specific objectives, using the methodology described in this plan. The target bonus of each employee will be multiplied by the bonus payout ratio to calculate the actual bonus. |
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| Payments: | Bonuses will be payable 45 days after the end of the fiscal year. |
Company Objectives:
Bonuses will be based on performance to the following five objectives. Specific criteria under each objective will be determined by the Compensation Committee based on input from the Chief Executive Officer.
| A. | Product Development |
| B. | Technology Qualification |
| C. | New Product Design-Ins |
| D. | New Product Revenue |
| E. | Total Revenue |
Calculation of Bonus Payout Ratio:
Performance to each objective will be determined and a weighting factor will be calculated for each objective. The weighting factors will be determined by the Compensation Committee based on input from the Chief Executive Officer. The weighting factors for each objective will then be added. Bonus payout ratios will then be calculated as follows:
| • |
| Group A: |
| Bonus Payout Ratio | = |
| 50% + Sum of Weighting Factors |
| • |
| Group B: |
| Bonus Payout Ratio | = |
| Sum of Weighting Factors |
Bonus Payment Approval:
Performance to objectives, weighting factors and individual bonuses will be calculated by the Company and presented during the February 2006 Compensation Committee meeting. All individual bonuses will be approved by the Compensation Committee prior to employee distribution.
