Summary of Executive Compensation Arrangements for Merix Corporation Executive Officers
This document outlines the compensation arrangements for executive officers of Merix Corporation for the fiscal year ending May 27, 2006. Executives receive an annual salary, are eligible for cash incentives under the Executive Incentive Plan, and may receive equity awards under the 1994 Stock Incentive Plan. They also participate in the company's 401(k) plan, health and welfare benefits, and group life insurance on the same terms as other employees. The document details specific salary amounts, incentive percentages, and bonus allocations for each executive officer.
Exhibit 10.10
SUMMARY OF KEY TERMS OF COMPENSATION ARRANGEMENTS WITH MERIX
CORPORATION EXECUTIVE OFFICERS
Merix’ executive officers each receive an annual salary. The executive officers are also eligible for a cash incentive under the Merix’ Executive Incentive Plan (“EIP”) and for equity incentives under our 1994 Stock Incentive Plan. Awards under the EIP are determined as percentages of base salary. Merix’ executives participate in Merix’ 401(k) plan and other employee benefits plans on the same basis as other employees. Merix makes annual matching contributions to Merix’ 401(k) Plan and pays Group Term Life Insurance premiums for each of its executive officers on the same basis as for all regular employees of Merix who satisfy minimum eligibility requirements. In addition, Merix’ executive officers are eligible to participate in Merix’ health and welfare and other employee benefit plans that are available on the same basis to all regular employees of Merix who satisfy minimum eligibility requirements.
Key elements of executive compensation for fiscal year ending May 27, 2006 are:
| Name and Title | Fiscal 2006 Salary | 2006 EIP Maximum Cash Incentive | 2006 Target Bonus Allocation | |||||||||||||||
| North American Operations Operating Income | China Operations EBITDA | North American Quick Turn Revenue | San Jose Operations EBITDA | |||||||||||||||
| Mark R. Hollinger President and Chief Executive Officer | $ | 330,000 | 70 | % | 40 | % | 60 | % | ||||||||||
| Janie S. Brown Senior Vice President, Chief Financial Officer and Treasurer | $ | 276,800 | 50 | % | 40 | % | 50 | % | 10 | % | ||||||||
| Daniel T. Olson Senior Vice President and Chief Executive Officer of Asian Operations | $ | 230,000 | 70 | % | 40 | % | 60 | % | ||||||||||
| Steve Robinson Vice President, Merix North American Operations and President, Merix San Jose, Inc. | $ | 275,000 | 100 | % | 40 | % | 30 | % | 30 | % | ||||||||
| Thomas R. Ingham (a) Vice President, Sales and Marketing | $ | 210,000 | 60 | %(a) | (b) | (b) | (b) | (b) | ||||||||||
| (a) | Included in the percentage of 2006 EIP Maximum Cash Incentive to be awarded to Mr. Ingham is a $45,000 guaranteed amount payable in quarterly installments of $11,250. |
| (b) | The distribution of the 2006 Target Bonus Allocation for Mr. Ingham has not yet been determined. |
