Exhibit 10.38

 

Form of FY06 Individual Compensation Plan

Effective Date:10/30/05 - 10/28/06

 

 

[g76801mai001.gif]

 

 

 

 

 

Type:

x

Initial

 

 

 

 

 

 

 

 

 

Revision

 

 

 

 

 

 

 

 

 

 

 

NAME:

 

Vicki Andrews

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TITLE:

 

Senior Vice President, World Wide Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY06 COMPENSATION PLAN:

 

 

 

 

 

 

ANNUAL (in USD)

 

 

Base Salary:

 

$

 350,000

 

 

 

 

 

 

 

Annual Bookings Bonus:

 

[*]

 

(paid at fiscal year-end based on FY06 results)

Quarterly Revenue Bonus:

 

[*]

 

(paid quarterly based on quarterly results; 25% target each quarter)

FY06 Annual Revenue Bonus:

 

[*]

 

(paid at fiscal year-end based on FY06 results)

FY07 Deferred Revenue Bonus:

 

[*]

 

(paid at fiscal year-end based on FY06 results)

FY06 MBO:

 

[*]

 

(paid at fiscal year-end based on FY06 results)

Total Variable at Target:

 

[*]

 

 

 

 

 

 

 

Total Target Compensation at Plan:

 

$

  [*]

 

 

 

I. PLAN TARGETS:

 

 

 

 

 

1H

 

 

 

2H

 

FY06 Total

 

WORLDWIDE BOOKINGS QUOTA:

 

 

 

$[*]

 

 

 

$[*]

 

$[*]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

FY06 Total

 

FY06 REVENUE TARGETS:

 

$[*]

 

$[*]

 

$[*]

 

$[*]

 

$[*]

 

 

 

 

 

 

 

 

 

 

 

 

 

FY07 WORLDWIDE DEFERRED REVENUE TARGET (FYE06 deferred revenue recognizable in
FY07):

 

$[*]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A. Annual Bookings Bonus:

 

Annual Bookings Bonus is paid at year-end based on FY06 Worldwide Bookings Quota
achievement, according to the FY06 Sales Commission & Bonus Policy and the
current Synopsys Sales Order Acceptance Policy. In addition to the standard
payout rates listed, additional points may be awarded for Bookings achievement
above quota for attaining 100% or more of the FY06 Annual Revenue Target and
FY07 Deferred Revenue Target.

 

Annual Bookings Bonus is paid according to the following schedule:

 

 

 

 

 

Accelerators per Achievement %

% of FY06 Annual Regional Bookings Quota Achieved

 

Percent of Target Bonus

 

Bookings Achievement Only

 

FY06 Rev Target Achieved

 

FY06 Rev Target and Deferred Rev Target Achieved

< [*]%

 

[*]%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[*]% - [*]%

 

[*]% - [*]%

 

[*] pts per point

 

[*] pts per point

 

[*] pts per point

 

 

 

 

 

 

 

 

 

[*]% - [*]%

 

[*]% - [*]%

 

[*] pts per point

 

[*] pts per point

 

[*] pts per point

 

 

 

 

 

 

 

 

 

[*]% - [*]%

 

[*]% - [*]%

 

[*] pts per point

 

[*] pts per point

 

[*] pts per point

 

 

 

 

 

 

 

 

 

[*]%+

 

[*]%+ - [*]%+

 

[*] pts per point

 

[*] pts per point

 

[*] pts per point

 

 

 

 

 

 

 

 

 

 

A-1. Bookings Linearity Draw

 

If worldwide bookings achievement through Q2FY06 exceed the 1H quota target a
draw against future FY06 earnings will be paid equal to [*]% of the Annual
Bookings Bonus target. Draw will be recoverable against all year-end variable
compensation payouts. At the close of FY06 plan, any draw not yet fully
recovered from the payable year-end variable compensation will be forgiven.

 

1

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B. Quarterly Revenue Bonus

 

Quarterly Revenue Bonus is paid quarterly based on achieving 100% or more of the
Quarterly Revenue Target. No quarterly revenue bonus is paid unless the current
quarter’s revenue target is achieved (100% or greater). Quarterly revenue
targets will be adjusted to match current CFO target each quarter.

 

Quarterly Revenue Bonus is paid according to the following schedule:

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Quarterly Revenue Achievement >=100%

 

$[*]

 

$[*]

 

$[*]

 

$[*]

 

$[*]

 

 

C. FY06 Annual Revenue Bonus

Annual Revenue Bonus is paid based on achievement against the FY06 Annual
Revenue Target. Annual Revenue Target will be adjusted for in-year acquisitions.
Target assumes [*]% or less upfront license ratio; Target will be subject to
review and change if upfront ratio exceeds [*]%.

 

Annual Revenue Bonus is paid according to the following schedule:

 

 

 

 

% of FY06

 

Percent of Target

 

 

 

 

 

 

Annual Revenue Target

 

Bonus

 

Comments

 

 

 

 

< [*]%

 

[*]%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[*]%

 

[*]%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[*]% - [*]%

 

[*]% - [*]%

 

[*] pts per point

 

 

 

 

 

 

 

 

 

 

 

 

 

[*]%+

 

[*]%+

 

[*] pts per point

 

(Max Payout = [*]%)

 

 

 

 

 

 

 

 

 

 

D. FY07 Deferred Revenue Bonus

FY07 Deferred Revenue Bonus is paid based on achievement against the Deferred
Revenue Target. FY07 Deferred Revenue target will be adjusted for in-year
acquisitions. Metric calculated at total FY07 backlog at the end of FY06 from
FY06 orders impact on FY07 revenue. Deferred Revenue Target will be subject to
review and change if WW FY06 Services (DS, BU Consulting, Test Chip) bookings
are greater than $[*]m.

 

FY07 Deferred Revenue Bonus is paid according to the following schedule:

 

 

 

% of FY07

 

 

 

 

 

 

 

 

Deferred Revenue

 

Percent of Target

 

 

 

 

 

 

Target Achieved

 

Bonus

 

Comments

 

 

 

 

< [*]%

 

[*]%

 

[*] pts per point

 

 

 

 

 

 

 

 

 

 

 

 

 

[*]% - [*]%

 

[*]% - [*]%

 

[*] pts per point

 

 

 

 

 

 

 

 

 

 

 

 

 

[*]% - [*]%

 

[*]% - [*]%

 

[*] pts per point

 

 

 

 

 

 

 

 

 

 

 

 

 

[*]% - [*]%

 

[*]% - [*]%

 

[*] pts per point

 

 

 

 

 

 

 

 

 

 

 

 

 

[*]%+

 

[*]% +

 

[*] pts per point

 

 

 

NOTES:

 

This plan is subject to all provisions of the current “FY06 Synopsys Commission
& Bonus Policy” and the current “Synopsys Sales Order Acceptance Policy”. All
elements of this plan are subject to change at any time during the year.

 

Plan targets reflect those in place at this time. These targets may be revised
as conditions require subject to the approval of the CEO and/or COO.

 

This plan is applicable only if the CEO, CFO and Sr. VP of HR approve.

 

SIGNATURES:

 

 

 

 

 

 

 

 

Vicki Andrews

 

Date

 

Aart de Geus

 

Date

Senior Vice President, World Wide Sales

 

Chairman & CEO

 

 

 

 

 

 

 

 

 

Jan Collinson

 

Date

 

Brian Beattie

 

Date

Senior Vice President, HR & Facilities

 

Chief Financial Officer

 

 

 

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* Represents specific quantitative or qualitative performance-related factors,
or factors or criteria involving confidential commercial or business
information, the disclosure of which would have an adverse effect on the
Registrant.

 

2

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