Fiscal 2004 Executive Staff Bonus Plan



EXHIBIT 10.24 
 
EXECUTIVE STAFF BONUS 
PLAN DESCRIPTION 
FY04 
Revised March 25, 2003 
 
ELIGIBLE POSITIONS: 
Members of Executive Leadership Team—ELT
(Executive Vice Presidents) 
Members of Product Leadership Team—PLT (Sr. Vice Presidents) 
Members of Operations Management Team—OMT (Sr. Vice Presidents) 
 
Bonus Plan Description 
 

	 	 	 Bonus pool will be established based on a percentage of the base salary, as follows, which creates the
Target Bonus. The basic premise is that the higher one is in the organization, the more their total compensation is “at risk”.

	
	 A.
	 	 TARGET BONUS AMOUNTS:
	  	 
	
	 	 	 CEO:
	  	 100% of base salary (weighted on total Company Performance).

	
	 	 	 PLT Members:
	  	 60% of base salary, ( weighted on total Company Performance).

	
	 	 	 Executive Vice Presidents (ELT):
	  	 75% of base salary (weighted on total Company Performance) with the exception of the Services executive who is
weighted 50% on Company Performance and 50% on Services’ Performance.

	
	 	 	 Sr. Vice Presidents (OMT):
	  	 50% of base (weighted on total Company Performance).

	
	 B.
	 	 BONUS POOL THRESHOLD
	  	 
	
	 	 	 The bonus pool will be funded by BEA Systems actual Contribution for the bonus periods, assuming that a
threshold of 97% of the operating plan is achieved for Contribution and 97% of the operating plan is achieved for Revenue. The pool will be funded by Contribution ( up to 50% of Contribution) and will be paid out as outlined
below.

	
	 C.
	 	 PAYOUT CRITERIA
	  	 
	
	 	 	 The bonus is comprised of a Revenue and a Contribution component. 50% of the payout is based
on Contribution achievement and 50% of the payout is based upon Revenue achievement and the above thresholds must be met for a payout on either component. 
  
 For the Company Performance calculation:
  
 For ELT Members, Revenue equals bookings. For all other executives, Revenue equals recognized revenue for the
period.
  
 Calculation of the bonuses will be based on the
following formula and should the plan be exceeded at either level (Contribution or Revenue), then the following accelerators, up to 150% of bonus target, will apply:


 
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	 Actual Achievement

	  	 : % Achievement

	 Operating Plan
	  	 
	
	 % Achievement—Contribution

	  	 Payout


	
	 less  than 97%
 97% (threshold)
 >97% – 100%
 >100%
	  	 0
 1% = 1. 00X
 1% = 1. 00X
 1% = 1.5X up to 150% of
target

	
	 % Achievement—Revenue

	  	 Payout


	
	 less  than 97%
 97% (threshold)
 >97% – 100%
 >100%
	  	 0
 1% = 1. 00X
 1% = 1. 00X
 1% = 1.5X up to 150% of
target


 

	 	 	 For example, if achievement for Revenue is 2X operating plan and achievement for Contribution is 1 X the
operating plan, bonus will be paid at 1.5X target as the total bonus.
  
 For the Services’ President, where their bonus targets are weighted on Total Company Performance and Business Unit Performance, a separate calculation will be done for each entities’ performance (Company and Business Unit
). The total bonus paid out cannot exceed 150% of either target (Company or Business Unit Performance), and under-performance in one, either Company or Business Unit, cannot be supplemented by the other component.
  
 For example, if achievement for the Company component is 2.5x and achievement
for the Business Unit component is 1X, the payout will be 1.5X and 1X respectively.

	
	 D.
	 	 PAYOUT FREQUENCY
	  	 
	
	 	 	 A semi-annual payout schedule and performance cycle will be observed
..

	
	 E.
	 	 PROVISIONS THAT APPLY TO ALL BONUSES


 

	 	1.	 	Should the total pool, funded by 50% of Contributions, not be large enough to disburse amounts to all participants as indicated above, then the employees’ base
salary, as a percentage of total base salaries of all participants, will be used to prorate and distribute the pool. 

 

	 	3.	 	The Executive must be employed an entire quarter to receive an allocation for the period and be employed at the time of the payout to receive any bonus. An employee
may be removed from the plan at any time, at management discretion. 

 

	 	4.	 	BEA Management reserves the right to modify this plan at any time, in its sole discretion. Should an acquisition or significant business initiative change the
revenue and/or contribution operating plan, the plan, for the purposes of this bonus, may be modified and a new plan will go into effect at the start of the quarter following this initiative. This document does not create a contract of employment,
nor does it change one’s “at-will” employment status, nor does it provide a guarantee of a bonus in any BEA geography. 

 

	 	5.	 	An Executive can be in only one bonus plan or variable plan at any time. Should an employee transfer from this plan to another bonus plan, their participation will
cease and there will be no 

 
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pro-ration for partial quarters/year. Additionally, changes to one’s base or bonus
target %, as a result of merit increases, equity adjustments or promotions, will take effect in the next full bonus period, unless the change occurs on the first day of the new bonus period (i.e May 1) 
 
EXAMPLE 
 
Vice President with an annual salary of $200,000 has a bonus target of 50%, or
$100,000. Semi-annual target is $50,000. Plan targets are examples only. 
 
BONUS CALCULATION 
 

	 Revenue Impact:
	  	 Plan
	  	 $200,000,000

	 	  	 Actual
	  	 $220,000,000

	 	  	 % achievement
	  	 110%

	
	 Contribution Impact:
	  	 Plan
	  	 $5,000,000

	 	  	 Actual
	  	 $5,250,000

	 	  	 % achievement
	  	 105%

	
	 Bonus from Revenue:
	  	 $25,000 at 1X achievement (100%)

	 	  	 $ 3,750 at 1.5X achievement


	 	  	 $28,750

	
	 Bonus from Contribution:
	  	 $25,000 at 1X achievement (100%)

	 	  	 $ 1,875 at 1.5X achievement


	 	  	 $26,875
	  	 
	
	 Total Bonus for Period:
	  	 $55,625
	  	 

 
 
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