Company: AWRE
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0000950170-25-058702
Chunk: 22

Company: AWARE INC /MA/
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 22
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4 Executive Bonus Plan (the “2024 Plan”) and established performance criteria and target bonuses thereunder. Pursuant to the 2024 Plan, each of our named executive officers was eligible to receive a bonus based upon the achievement of certain financial and operational goals, in each case as determined by the Compensation Committee. Seventy (70) percent of each named executive's officer's bonus was tied to the achievement of financial goals that were common to all of the named executive officers and thirty (30) percent of each named executive officer's bonus was tied to the achievement of individualized operational goals. Under the plan Mr. Eckel was eligible to receive a target bonus of $159,135. Mr. Lazzouni was eligible to receive a target bonus of $153,181. Mr. Traverse was eligible to receive a target bonus of $73,333. The financial goals under the 2024 Plan were tied to achievement by Aware of revenue and operating cash flow targets for 2024 (the “2024 Financial Goals”), which approximated the amounts forecasted for each of those metrics in our annual operating budget. Each of the named executive officers could receive a payment equal to 50% of his respective target bonus if the 2024 Financial Goals were met at the 85% level and a payment equal to 100% of his respective target bonuses if the 2024 Financial Goals were met at the 100% or greater level, with the bonus to be paid for performance falling between 85% and 100% of the 2024 Financial Goals to be calculated by linear interpolation. Participants are eligible to receive an upward adjustment payout up to fifty (50) percent above their annual bonus target once the total revenue 2024 Financial Goal is met.

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The upward bonus adjustment will be calculated linearly between 100% to 110% of the revenue 2024 Financial Goal. The components of 2024 Financial Goals were weighted as 50% revenue and 50% operating cash flow. Aware’s revenue for 2024 was $17.4 million, which fell below 85% of the revenue goal. Aware’s operating cash used for 2024 was $3.2 million, which was below the target for that goal. As a result, our named executive officers received bonuses under the 2024 Plan with respect to the 2024 Financial Goals as follows:

| Name             |     | Bonuses relating to 2024 Financial Goals ($) |   |
|