NeoMagic Corporation FY 2007 Executive Bonus Agreement
NeoMagic Corporation has offered a bonus agreement to select employees, including executive officers, for fiscal year 2007. The agreement outlines that eligible employees may receive a cash bonus, up to a specified maximum amount, based on the company's revenue performance for the year ending January 31, 2007. To qualify, employees must remain with NeoMagic through that date. The bonus amount is determined by revenue targets, with partial or no bonus if targets are not fully met. Payment will be made before March 31, 2007.
Exhibit 10.19
May 10, 2006
[EMPLOYEE ADDRESS]
Dear [EMPLOYEE],
In recognition of your importance in creating value for NeoMagic (the “Company”), we are granting you the right to participate in the following Bonus Plan for FY 2007. The bonus award will be up to [$XX,XXX] (less taxes) and will be based on achieving revenue and other targets during the year ending January 31, 2007. Payment will be made prior to March 31, 2007. You must remain an employee of NeoMagic through January 31, 2007, to be eligible for payment.
Your bonus will be calculated based upon [ ] revenue for FY ’07.
Total [ ] Revenue > $[ ] million = 100% of bonus award
Total [ ] Revenue > $[ ] million = 50% of bonus award
Revenues between $[ ] million and $[ ] million will result in a pro rata bonus between 50% and 100%.
Total [ ] Revenue < $[ ] million = 0% of bonus award
| Employee
| NeoMagic Corporation | |||
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| [EMPLOYEE NAME] | Vice President, Finance | |||
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| Date | Date | |||
SCHEDULE OF BONUS AGREEMENTS
The table below sets forth (i) the name of each executive officer of the Company who had a Bonus Agreement with the Company that was effective on July 30, 2006 and (ii) the maximum amount that each such executive officer could receive pursuant to the Bonus Agreement should such executive officer meet all the performance targets for such executive officer set forth in his individual Bonus Agreement
| Name | Maximum Amount payable under the Bonus Agreement | ||
| Doug Young | $ | 75,000 | |
| Scott Sullinger | $ | 40,000 | |
| Syed Zaidi | $ | 40,000 | |
| Deep Puar | $ | 30,000 | |
| Sudhir Chandratreya (1) | $ | 30,000 | |
| 3 other employees who are not executive officers | $ | 47,000 | |
| (1) | Mr. Chandratreya’s employment with the Company ended on September 8, 2006. By the terms of his Bonus Agreement, he is no longer eligible to receive any of the bonus set forth opposite his name. |
