Engenio Information Technologies, Inc. 2004 Incentive Plan Summary Description
This document summarizes the 2004 Incentive Plan for Engenio Information Technologies, Inc., which is part of the LSI Logic Corporation Executive Officer Incentive Plan. The plan, approved by LSI Logic's Board of Directors, sets out how bonuses for Engenio are funded based on operating income and revenue growth. The incentive pool is funded by a fixed percentage of these financial metrics, with the total bonus pool ranging from 50% to 150% of the target amount, depending on Engenio's performance in 2004.
Exhibit 10.39
Summary Description of Engenio Information Technologies, Inc. 2004 Incentive Plan
The Engenio Information Technologies, Inc. (“Engenio”) 2004 Incentive Plan (Engenio Plan) is a subset of the LSI Logic Corporation Section 16(b) Executive Officer Incentive Plan (“LSI Logic Plan”) and is administered by the Compensation Committee of the Board of Directors of LSI Logic Corporation. The Board of Directors of LSI Logic Corporation approved the Engenio Plan in February 2004. The targets and funding mechanics of the Engenio Plan are specific to Engenio and are as follows:
The funding of the Plan is determined using constant multiples of operating income and incremental revenue. A fixed percentage of operating income and incremental revenue fund the incentive pool. The bonus pool would increase if Engenio’s revenues grew during the year 2004.
The funding is subject to a threshold of a minimum of 50% to a maximum of 150% of targeted funding.
