Websense, Inc. CEO Bonus Plan Agreement
This agreement outlines the bonus plan for the Chief Executive Officer (CEO) of Websense, Inc. The CEO is eligible for a target bonus equal to 100% of their annual salary, based on the company meeting specific Billings and Operating Income goals set by the Board of Directors or Compensation Committee. The bonus is split equally between these two objectives, with partial bonuses for achieving at least 90% of the goals and increased bonuses for exceeding them. The CEO must be employed on the last day of the fiscal year to qualify, and the company may modify the plan as needed.
Exhibit 10.1
CEO Bonus Plan
Bonus Calculation
The Chief Executive Officer (“CEO”) of Websense, Inc. (the “Company”) will be eligible for a target bonus of 100% of his annual salary. This bonus is based upon the Company meeting its Billings and/or Operating Income objectives determined by the Company’s Board of Directors or its Compensation Committee near the beginning of each fiscal year.
One-half of the bonus (50%) is earned if the Company meets its annual Billings objective and one-half is earned if the Company achieves its annual Operating Income objective. Achievement of at least 90% of a goal is required for any payment of the portion of the CEO’s bonus that is based on achievement by the Company of that goal. Should the Company achieve 90% of its Billings or Operating Income goals, bonuses for that plan goal will be paid at half of the target payment for that goal. Should the Company achieve 110% of its Billings or Operating Income goals, bonuses for that plan goal shall be paid at 1.5 times what the CEO would have been paid on target for that goal. Bonuses are prorated for goal achievement between 90% - 110%.
Eligibility
The CEO must be a current employee on the last day of the fiscal year to be eligible to receive a bonus. Bonus amounts are based upon actual base salary paid during the period, exclusive of other payments or bonuses.
The Company reserves the right to change these terms from time to time as it feels necessary to accomplish its goals, including as a result of market conditions, personnel, new or different product offerings and/or corporate restructuring.
