Exhibit 10.5

 

DESCRIPTION OF EXECUTIVE INCENTIVE PLAN
AND SUMMARY FORMS OF NOTICE

 

Date:                                          

To:                                                    

From:                                        

Re:                               Executive Incentive Plan for FY     

 

The Board of Directors has approved our Executive Incentive Plan for FY       . 
Your annual target bonus under this plan is      % of your annual base salary. 
The provisions of the plan are listed below:

 

• Payout requires achievement of both plan revenue and operating profit for the
Company.

• We must also have a positive operating profit for payout.

• This year we will divide the plan into both a quarterly and an annual plan
(both based on the above criteria).

• 50% of your target incentive will be for the quarterly plan (i.e., 1/8 per
quarter) and 50% of your target incentive will be for the annual plan.

 

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Date:                                          

To:                                                    

From:                                        

Re:                               Your FY      Compensation Plan

 

Attached is your compensation plan for FY     .  The Board of Directors recently
approved this in the            meeting.  In addition, you are eligible to
participate in the Corporate Executive Incentive plan with a target bonus of
     % of your annual base salary.  The criteria for the corporate plan are as
follows:

 

• Measurement will be on an annual basis.

• Payout requires achievement of both annual revenue and operating profit plan.

• We must have a positive operating profit for payout.

 

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