EXHIBIT 10.6


 


Description
of Sales Executive Compensation Plan


And
Summary Forms of Notice


 


[Name]


 


	
  Annual
  Target Compensation Mix

  



 


Base
Salary:                                                                                           


Target Incentive (TI):                                                              % of Base Salary


On Target Earnings (OTE):                                                                


 


	
  OTE
  Quarterly Plan Components

  



 


I. Quarterly Geographic (Products & Service) Revenue Bonus:


•                  Quarterly
Revenue Bonus equals      % of
TI (     % of TI each quarter).


•                  Paid quarterly
based on performance against quarterly revenue plan.


•                  Quarterly bonus
payment per Table I, Schedule A


•                  If
both the Quarterly Revenue and the Quarterly Geographic Contribution Margin
(dollar) plans are met or exceeded (i.e. achievement on both is >100%) in
the same quarter, payment for the revenue bonus will be paid on a higher
schedule.  (Table I,
Schedule B).


 


II. Quarterly Geographic Contribution Margin:


•                  The Quarterly
Geographic Contribution Margin represents      %
of TI (     % TI each quarter).


•                  Paid quarterly
based on performance against Quarterly Geographic Contribution Margin Plan.


•                  Quarterly bonus
payment per Table II.


•                  Measurement is
based on Geographic Contribution Margin dollars.


 





















 


Approved by:                                                           Date:                                                       


 


Definitions:


 


Base Salary: The
non-variable portion of total on-target earnings (OTE).


Target Incentive (TI):
Total variable amount an Executive would receive by meeting his/her targets.


On-Target-Earnings
(OTE): Total cash paid to an Executive for meeting
specified individual targets.


 


	
  TABLE I:

  Quarterly Revenue Bonus

  Payment Schedules

  	
   

  	
  TABLE II:

  Quarterly Geographic Contribution

  Margin Payment Schedule

  
	
  % Achieved

  	
   

  	
  Schedule A

  % of Quarterly

  Revenue

  Bonus Paid

  	
   

  	
  Schedule B

  % of Quarterly

  Revenue Bonus Paid

  When Quarterly

  Contribution Margin

  is Met

  	
   

  	
  % Achieved

  	
   

  	
  % of Quarterly

  Contribution Margin

  Bonus Paid

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  



 


Payment
Calculations: For purposes of bonus payment
calculations, actual achievement will be rounded to a whole number using
conventional rounding (i.e. .01 - .49 will be rounded DOWN .5 - .99 will be
rounded UP)


 





















 


FY ‘05
Executive Compensation Plan


 


[Name]


 


	
  Annual
  Target Compensation Mix

  



 


Base
Salary:                                                                                        


Target Incentive (TI):                                                                              %
of Base Salary


 


On Target Earnings (OTE):                                                             


 


	
  OTE
  Quarterly Plan Components

  



 


I. Quarterly Product Group Revenue Bonus:


•                  Quarterly
Revenue Bonus equals      %
of TI(     % of TI
each quarter).


•                  Paid quarterly
based on performance against quarterly Product Group revenue plan.


•                  Quarterly bonus
payment per Table I


 


II. Quarterly Product Group Gross Margin:


•                  The Quarterly
Product Group Gross Margin represents      %
of TI (     %TI each quarter).


•                  Paid quarterly
based on performance against Quarterly Product Group Gross Margin Plan.


•                  Quarterly bonus
payment per Table II.


 





















 


Approved by:                                                 Date:
                                                 


 


Definitions:


 


Base Salary: The
non-variable portion of total on-target earnings (OTE).


Target Incentive (TI):
Total variable amount an Executive would receive by meeting his/her targets.


On-Target-Earnings
(OTE): Total cash paid to an Executive for meeting
specified individual targets.


 


	
  TABLE I:

  Quarterly Revenue Bonus 

  Payment Schedules

  	
   

  	
  TABLE II:

  Quarterly Product Group Gross Margin

  Bonus Payment Schedule

  
	
  % Achieved

  	
   

  	
  % of Quarterly Product Revenue

  Bonus Paid 

  	
   

  	
  % Achieved

  	
   

  	
  % of Quarterly Gross

  Margin Bonus Paid

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  



 


Payment
Calculations: For purposes of bonus payment
calculations, actual achievement will be rounded to a whole number using
conventional rounding (i.e. .01 - .49 will be rounded DOWN .5 - .99 will be rounded
UP)


 





















 


FY ‘05 Executive Compensation Plan


 


[Name]


 


Annual
Target Compensation Mix


 


Base
Salary:


	
  Target
  Incentive (TI):

  	
  % of Base Salary

  



 


On Target
Earnings (OTE):


 


OTE
Quarterly Plan Components


 


I. Quarterly
Strategic Technology Initiative Contract Bonus (Q1 & Q2 only):


•      Quarterly Contract Bonus equals     % of TI.


•      A one-time payment based on the successful
completion of the contract. Determination of the successful completion will be
made by Finance and Legal.


•      The maximum payout for this opportunity
is    % of TI.


 


II. Quarterly
Strategic Technology Initiative Revenue Bonus (Q3 & Q4 only):


•      Quarterly Revenue Bonus equals      of TI (     % of TI each quarter).


•      Paid quarterly based on performance
against quarterly Strategic Technology Initiative revenue plan.


•      Quarterly bonus payment per Table I


 


III. Quarterly
Strategic Technology Initiative Gross Margin (Q3 & Q4 only):


•      The Quarterly Product Group Gross Margin
Bonus represents     %
of TI (     %TI each quarter).


•      Paid quarterly based on performance
against Quarterly Strategic Technology Initiative Gross Margin Plan.


•      Quarterly bonus payment per Table II.


 





















 


	
  Approved by:

  	
  Date:

  



 


Definitions:


 


Base Salary: The non-variable portion
of total on-target earnings (OTE).


Target Incentive (TI):
Total variable amount an Executive would receive by meeting his/her targets.


On-Target-Earnings (OTE):
Total cash paid to an Executive for meeting specified individual targets.


 


	
  TABLE I:

  Quarterly Revenue Bonus

  Payment Schedule

  	
   

  	
  TABLE
  II:

  Quarterly Product Group Gross Margin Bonus

  Payment Schedule

  
	
  % Achieved

  	
   

  	
  % of Quarterly 

  Product Revenue

  Bonus Paid

  	
   

  	
  % Achieved

  	
   

  	
  % of Quarterly

  Gross Margin

  Bonus Paid

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  



 


Payment Calculations:
For purposes of bonus payment calculations, actual achievement will be rounded
to a whole number using conventional rounding (i.e. .01 - .49 will be rounded
DOWN .5 - .99 will be rounded UP)