Company: PACB
Filing Date: 2025-04-23
Form Type: DEF 14A
Source: 0001299130-25-000090
Chunk: 80

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-04-23
Form: DEF 14A
Chunk 80
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 aggregate of 100% achievement under the Modified 2024 Bonus Plan, depending on the level of achievement of each of the goals as determined by our Board of Directors. In addition, payment to our NEOs under the Modified 2024 Bonus Plan requires achievement of a minimum of $170 million in total recognized revenue for 2024.

Following the end of the year, the Compensation Committee and the Board of Directors assessed the extent of achievement of the performance criteria established under the Modified 2024 Bonus Plan. The Compensation Committee and the Board of Directors also noted there were a number of extraordinary achievements by the Company in 2024 that, while not reflected as corporate objectives under the Modified 2024 Bonus Plan, were important in the Company’s continued transformation, including: negotiating an exchange agreement with SB Northstar LP, which held certain of our outstanding convertible senior notes due 2028 (the “2028 Notes”), pursuant to which the Company exchanged an aggregate principal amount of $459 million under the 2028 Notes for $200 million of convertible notes, $50 million of cash, and approximately 20 million shares of the Company's common stock, reducing the principal outstanding by $259 million and extending the duration of such notes to December 2029 (the “SoftBank Exchange”); reducing certain annualized operating expenses by over $75 million; commencing shipment of Vega; successfully completing ISO 13485 audit with no major findings; accelerating development and launch of SPRQ chemistry on Revio; launching PureTarget long-read panels; and making significant advancements in understanding the value of

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TABLE OF CONTENTS

human HiFi genomes (collectively, the “Extraordinary Activities”). The Compensation Committee and the Board of Directors assessed the extent of achievement of the performance criteria established under the Modified 2024 Bonus Plan in light of the Extraordinary Activities and established that, in order to measure the goal attainment relating to cash balance, the cash paid in connection with the SoftBank Exchange be excluded from the payout calculation, which exclusion resulted in a payout percentage of 30% of target under the Modified 2024 Bonus Plan.

Typically, with respect to the variable cash incentive program, the Chief Executive Officer provides an evaluation of the Company’s actual performance against the performance goals and makes a recommendation for the funding of the program and the individual awards other than his own award. Based on the Compensation Committee’s assessment, and the Board of Director’s assessment with respect to the Chief Executive Officer’s performance, the