Exhibit 10.3

 

2009 PERFORMANCE SHARE PROGRAM

AWARD CALCULATION METHODOLOGY

 

Parameter

 

Description

Award Metrics

 

“Initial Meta-Funding Gate” requires achievement of GAAP revenues of 90% of
Annual Operating Plan (AOP) Threshold performance

·      If Initial Meta-Funding Gate is not met, no Actual Awards will be earned
for 2009

·      If Initial Meta-Fund Gate is met, Maximum Awards may be earned, subject
to reduction based on the achievement of the following “Other Performance
Goals”:

·      Revenue (adjusted to include shippable backlog at the end of the fiscal
year) – Maximum Award reduced to zero if performance does not equal or exceed
90% of AOP (AOP revenue goal will be set in consideration of beginning of year
shippable backlog); and

·      Non-GAAP Operating Profit (adjusted to include the profit associated with
shippable backlog at the end of the fiscal year) – Maximum Award reduced to zero
if performance does not equal or exceed 75% of AOP.

Actual Awards determined using the matrix provided in Section 2, below.

 

 

 

Award Determination

 

·                                          If Initial Meta-Funding Gate is not
met, no Performance Shares are credited/earned

·                                          If Initial Meta Funding Gate is met,
the number of Performance Shares credited as an Actual Award is calculated using
the matrix below

Step 1: Determine the “Performance Share Percentage” based on achievement of the
Other Performance Goals by using the matrix below: 

 

 

125%

98%

102%

106%

111%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

124%

96%

101%

105%

109%

113%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

123%

95%

99%

103%

108%

112%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

122%

93%

98%

102%

106%

111%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

121%

92%

96%

101%

105%

109%

114%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

120%

90%

95%

99%

103%

108%

112%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

119%

89%

93%

98%

102%

106%

111%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

118%

88%

92%

96%

101%

105%

109%

114%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

117%

86%

91%

95%

99%

103%

108%

112%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

116%

85%

89%

93%

98%

102%

106%

111%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

115%

83%

88%

92%

96%

101%

105%

109%

114%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

114%

82%

86%

91%

95%

99%

103%

108%

112%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

113%

80%

85%

89%

93%

98%

102%

106%

111%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

112%

79%

83%

88%

92%

96%

101%

105%

109%

114%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

111%

78%

82%

86%

91%

95%

99%

103%

108%

112%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

110%

76%

80%

85%

89%

93%

98%

102%

106%

111%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

109%

75%

79%

83%

88%

92%

96%

101%

105%

109%

114%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

108%

73%

78%

82%

86%

91%

95%

99%

104%

108%

112%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

107%

72%

76%

80%

85%

89%

93%

98%

102%

106%

111%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

106%

70%

75%

79%

83%

88%

92%

96%

101%

105%

109%

114%

115%

115%

115%

115%

115%

115%

115%

115%

115%

115%

 

105%

69%

73%

78%

82%

86%

91%

95%

99%

104%

108%

112%

114%

115%

115%

115%

115%

114%

114%

114%

113%

113%

 

104%

68%

72%

76%

81%

85%

89%

93%

98%

102%

106%

111%

112%

114%

113%

113%

112%

112%

112%

111%

111%

110%

 

103%

66%

70%

75%

79%

83%

88%

92%

96%

101%

105%

109%

111%

111%

111%

111%

110%

110%

109%

109%

108%

108%

 

102%

65%

69%

73%

78%

82%

86%

91%

95%

99%

104%

108%

109%

109%

109%

108%

108%

107%

107%

106%

106%

106%

 

101%

63%

68%

72%

76%

81%

85%

89%

93%

98%

102%

106%

107%

107%

106%

106%

105%

105%

105%

104%

104%

103%

Operating

100%

62%

66%

70%

75%

79%

83%

88%

92%

96%

101%

105%

105%

104%

104%

103%

103%

103%

102%

102%

101%

101%

Profit

99%

60%

65%

69%

73%

78%

82%

86%

91%

95%

99%

103%

102%

102%

101%

101%

101%

100%

100%

99%

99%

99%

 

98%

59%

63%

68%

72%

76%

81%

85%

89%

93%

98%

100%

100%

99%

99%

99%

98%

98%

97%

97%

97%

96%

 

97%

58%

62%

66%

70%

75%

79%

83%

88%

92%

95%

98%

97%

97%

97%

96%

96%

95%

95%

95%

94%

94%

 

96%

56%

60%

65%

69%

73%

78%

82%

86%

91%

93%

95%

95%

95%

94%

94%

93%

93%

93%

92%

92%

91%

 

95%

55%

59%

63%

68%

72%

76%

81%

85%

88%

91%

93%

93%

92%

92%

91%

91%

91%

90%

90%

89%

89%

 

94%

53%

58%

62%

66%

70%

75%

79%

83%

86%

88%

91%

90%

90%

89%

89%

89%

88%

88%

87%

87%

87%

 

93%

52%

56%

60%

65%

69%

73%

78%

81%

83%

86%

88%

88%

87%

87%

87%

86%

86%

85%

85%

85%

84%

 

92%

50%

55%

59%

63%

68%

72%

76%

79%

81%

83%

86%

86%

85%

85%

84%

84%

83%

83%

83%

82%

82%

 

91%

49%

53%

58%

62%

66%

71%

74%

76%

79%

81%

84%

83%

83%

82%

82%

82%

81%

81%

80%

80%

79%

 

90%

47%

52%

56%

60%

65%

69%

71%

74%

76%

79%

81%

81%

80%

80%

80%

79%

79%

78%

78%

77%

77%

 

89%

46%

50%

55%

59%

63%

67%

69%

71%

74%

76%

79%

78%

78%

78%

77%

77%

76%

76%

76%

75%

75%

 

88%

45%

49%

53%

58%

62%

64%

67%

69%

72%

74%

76%

76%

76%

75%

75%

74%

74%

74%

73%

73%

72%

 

87%

43%

48%

52%

56%

59%

62%

64%

67%

69%

72%

74%

74%

73%

73%

72%

72%

72%

71%

71%

70%

70%

 

86%

42%

46%

50%

55%

57%

59%

62%

64%

67%

69%

72%

71%

71%

70%

70%

70%

69%

69%

68%

68%

68%

 

85%

40%

45%

49%

52%

55%

57%

59%

62%

64%

67%

69%

69%

68%

68%

68%

67%

67%

66%

66%

66%

65%

 

84%

39%

43%

47%

50%

52%

55%

57%

60%

62%

64%

67%

66%

66%

66%

65%

65%

64%

64%

64%

63%

63%

 

83%

37%

42%

45%

47%

50%

52%

55%

57%

60%

62%

64%

64%

64%

63%

63%

62%

62%

62%

61%

61%

60%

 

82%

36%

40%

43%

45%

47%

50%

52%

55%

57%

60%

62%

62%

61%

61%

60%

60%

60%

59%

59%

58%

58%

 

81%

35%

38%

40%

43%

45%

48%

50%

52%

55%

57%

60%

59%

59%

58%

58%

58%

57%

57%

56%

56%

56%

 

80%

33%

35%

38%

40%

43%

45%

48%

50%

52%

55%

57%

57%

57%

56%

56%

55%

55%

54%

54%

54%

53%

 

79%

31%

33%

35%

38%

40%

43%

45%

48%

50%

53%

55%

55%

54%

54%

53%

53%

52%

52%

52%

51%

51%

 

78%

28%

31%

33%

35%

38%

40%

43%

45%

48%

50%

53%

52%

52%

51%

51%

51%

50%

50%

49%

49%

48%

 

77%

26%

28%

31%

33%

36%

38%

40%

43%

45%

48%

50%

50%

49%

49%

49%

48%

48%

47%

47%

47%

46%

 

76%

23%

26%

28%

31%

33%

36%

38%

40%

43%

45%

48%

47%

47%

47%

46%

46%

45%

45%

45%

44%

44%

 

75%

21%

23%

26%

28%

31%

33%

36%

38%

41%

43%

45%

45%

45%

44%

44%

43%

43%

43%

42%

42%

41%

 

 

90%

91%

92%

93%

94%

95%

96%

97%

98%

99%

100%

101%

102%

103%

104%

105%

106%

107%

108%

109%

110%

Revenue

 

--------------------------------------------------------------------------------

 

 

 

Step 2: Determine the number of Performance Shares credited as an Actual Award
by determining the Performance Share Percentage (Step 1) and multiplying that
percentage by the number of Performance Shares subject to Target Award (partial
share amounts will be rounded up to the next whole share)

 

·      The maximum number of Performance Shares that may be credited as an
Actual Award is 115% of the Target Award (the “Maximum Award”)

·      If achievement is below either Other Performance Goal threshold, shares
credited are 0% of the Target Award.

·      If achievement is at the threshold level of performance for both Other
Performance Goals, shares credited are 21% of the Target Award (“Minimum Award”)

·      Achievement percents are rounded to the nearest whole percent

·      Actual number of Performance Shares credited as Actual Award is
calculated based on achievement, rounded up to the next whole share

 

See below for examples of the Actual Award determination process

 

 

 

Actual Award Determination Examples

 

Assume:

·        Maximum Award of 2,875 Performance Shares

·        Target Award of 2,500 Performance Shares

 

Example 1

 

 

 

 

 

2009 Adjusted Revenue Achievement:
102% of AOP

 

2009 Adjusted Non-GAAP Operating Profit Achievement:
103% of AOP

 

Performance Share Percentage According to Matrix: 111%

 

Performance Shares Credited as Actual Award:

 

2,500 Target

X

111%

=

2,775 Performance Shares

 

Example 2

 

 

 

 

 

2009 Adjusted Revenue Achievement:
99% of AOP

 

2009 Adjusted Non-GAAP Operating Profit:
96% of AOP

 

Performance Share Percentage According to Matrix: 93%

 

Performance Shares Credited as Actual Award:

 

2,500 Target

X

93%

=

2,325 Performance Shares

 

--------------------------------------------------------------------------------