Exhibit 10.25  AXT, INC.  FISCAL 2010 EXECUTIVE INCENTIVE BONUS
PLAN  The
following are the terms of the 2010 Executive Bonus Plan approved by the
Compensation Committee of the Board of Directors of AXT, Inc. (the Company) on December 14,
2009 (the Plan).  A.Purpose  1.The terms of the Plan have been established to attract, motivate, retain
and reward the Companys executive officers and other officers of the Company
for driving the Company to achieve specific corporate objectives.  2.The Plan provides for the payment of quarterly cash bonuses based upon
Company financial targets and individual performance target objectives.  B.Eligibility  1.Those eligible to participate in the Plan are the officers of the Company
subject to Section 16 of the Securities Exchange Act of 1934, as amended
and any other officers of the Company designated by the Compensation Committee
(each, an Officer
and collectively, the Officers).  C.Determination of Bonus Amounts  1.The Compensation Committee has determined that each individual Officer
will have an Individual
Bonus Percentage and an Individual Target Bonus as defined below,
which will vary depending on such Officers position and responsibilities in
the Company.  2.Bonuses payable will be determined based upon achievement of corporate
financial targets (the Corporate
Targets) and individual targets established for each Officer
(the Individual Targets).  Achievement of the Corporate Targets will
represent 80% of the total bonus, and achievement of the Individual Targets
will represent 20% of the total bonus. The Corporate Targets shall be comprised
of four financial targets: (1) total revenue (Total Revenue Target),
(2) gross profit (Gross
Profit Target), (3) operating expense (Operating Expense Target)
and (4) net income (Net
Income Target).  The
actual quarterly Corporate Targets are set forth in the operating plan for the
year ending December 31, 2010, and approved by the Board of Directors (the
2010 Operating Plan).  3.The Corporate Targets are weighted 10% for each of the Total Revenue
Target, Gross Profit Target and Operating Expense Target, and 50% for the Net
Income Target, for a total of 80% of the total bonus. The Individual Bonus
Earned (as defined below) for each quarter will depend on the Corporate Target Achievement
Multiplier which shall equal the sum of: (a) actual total
revenue for such quarter divided by the Total Revenue Target for the quarter
multiplied by 0.1; (b) actual gross profit for such quarter divided by the
Gross Profit Target for the quarter multiplied by 0.1; (c) actual
operating expense for such quarter divided by Operating Expense Target
multiplied by 0.1; and (d) actual net income for such quarter divided by
the Net Income Target multiplied by 0.5 (subject


to Section 6
below).  4.The determination of the quarterly bonus based on the achievement of the
Total Revenue Target, Gross Profit Target and Operating Expense Target shall be
subject to the following:  ·The
percentage of the bonus resulting from the achievement of the Total Revenue,
Gross Profit Target and Operating Expense Target ranges from 80% to 120%.  ·No
portion of the quarterly bonus with respect to such Corporate Target will be
paid if the achievement of such Corporate Target is less than 90% of the 2010
Operating Plan amount for such Corporate Target.  ·At 90%
achievement of the 2010 Operating Plan for such Corporate Target, 80% of the
Quarterly Individual Target Bonus with respect to such Corporate Target shall
be payable.  ·At 120%
achievement of the 2010 Operating Plan for such Corporate Target, 100% of the
Quarterly Individual Target Bonus with respect to such Corporate Target shall
be payable.  ·At 150%
achievement or greater of the 2010 Operating Plan for such Corporate Target,
120% of the Quarterly Individual Target Bonus with respect to such Corporate
Target shall be payable.   This will be
the maximum amount payable for each such Corporate Target.  ·Accordingly,
for each 1.5% increase in the performance for each Corporate Target against the
2010 Operating Plan over the minimum 90% threshold, the bonus will increase by
1% until a maximum bonus equal to 120% of the Quarterly Individual Target Bonus
relating to such Corporate Target is earned.  ·The
parameters described above are summarized in the following table:  Total Revenue, Gross Profit, Operating
Expense  If achieve
  
  <90
  %
  90
  %
  100
  %
  120
  %
  150
  %Bonus
  
  0
  %
  80
  %
  86.67
  %
  100
  %
  120
  %  4.The determination of the quarterly bonus based on the achievement of the
Net Income Target shall be subject to the following:  ·The
quarterly bonus based on the achievement of the Net Income Target shall be 0%
of the Quarterly Individual Target Bonus (with respect to Net Income) when
actual Net Income is less than 70% of the budgeted Net Income for such quarter
under the 2010 Operating Plan.  ·The
quarterly bonus based on the achievement of the Net Income Target shall be


100% of the Quarterly Individual Target Bonus (with respect
to Net Income) when actual Net Income is 100% of the budgeted Net Income for
such quarter under the 2010 Operating Plan.  ·For each
percentage improvement in the actual Net Income for the quarter over the
minimum 70% threshold, the percentage of the Quarterly Individual Target Bonus
payable will increase by 1% up to a maximum total bonus payable of 120% of the
Quarterly Individual Target Bonus (relating to Net Income) when actual Net
Income is 120% or greater than the budgeted Net Income for such quarter set
forth in the 2010 Operating Plan.  ·The
parameters described above are summarized in the following table:  Net Income  If achieve
  
  <70
  %
  70
  %
  100
  %
  120
  %Bonus
  
  0
  %
  70
  %
  100
  %
  120
  %  5.The determination of the quarterly bonus shall also be subject to the
following:  ·In the
event that actual Net Income is negative for any particular quarter, no bonus
shall be payable for such quarter.  ·In no
event shall the achievement of any individual Corporate Target represent more
than 120% of such Corporate Target for such quarter.  This means that the achievement of each of
the Total Revenue Target, Gross Profit Target and Operating Expense Target
shall not result in the payment of a bonus relating to such Corporate Target
exceeding 12% of the Quarterly Individual Bonus Target in any quarter.   The Individual Targets shall not represent
more than 20% of the Individual Bonus Earned by any Officer in any
quarter.  Therefore, the maximum total
quarterly bonus earned by any Officer in any quarter is 116% of the Quarterly
Individual Target Bonus (the sum of 12% 12% 12% 60% and 20 %).  6.Achievement of the Individual Targets, representing 20% of the Plan,
shall be determined each quarter by the Chief Executive Officer for all
Officers other than the Chief Executive Officer, pursuant to objectives
established by the Chief Executive Officer for each such Officer. Achievement
of the Individual Targets by the Chief Executive Officer shall be determined
each quarter by the Compensation Committee, based upon objectives established
by the Compensation Committee each quarter for the Chief Executive Officer.  D.Individual Target Percentages  1.Individual Bonus
Percentage means the percentage of a respective Officers base
salary that is targeted as a bonus payment under the Plan assuming exactly one
hundred percent achievement by the Company of each of the Corporate Targets and
Individual Targets (as defined below). The Individual Bonus Percentage for each
Officer is


set as a
percentage of base salary and varies based upon the Officers position and
responsibilities. The Individual Bonus Percentage for each Officer under the
Plan is as follows:  Name
  
  Target BonusMorris S. Young
  
  60Raymond Low
  
  40Davis Zhang
  
  40Robert Ochrym
  
  40John Cerilli
  
  32Hani Badawi
  
  23  2.Individual Target
Bonus for each fiscal year means the amount equal to a
respective Officers base salary multiplied by such Officers Individual Bonus
Percentage. The Quarterly
Individual Target Bonus shall be the Individual Target Bonus
divided by four. The Individual
Bonus Earned means the amount equal to Individual Target Bonus
multiplied by the Corporate Target Achievement Multiplier.  E.Plan Changes  1.The Board or the Compensation Committee may modify the financial
performance goals at any time based on changes in business conditions during
the year and may grant bonuses to Officers even if the financial performance
goals are not met. In its discretion, the Compensation Committee may, either at
the time it grants an award under the Plan or at any time thereafter, provide
for the adjustment of the award formula applicable to an award granted to any
participant under the Plan to reflect such participants individual performance
in his or her position with the Company or such other factors as the
Compensation Committee may determine. Notwithstanding the attainment of any
performance goal under the Plan, the Compensation Committee shall have the
discretion, on the basis of such criteria as it may establish, to reduce the
amount of or to eliminate any final award that would otherwise be paid, and
retains the absolute discretion to amend, modify or terminate the Plan at any
time.  2.Nothing in this Plan will interfere with or limit in any way the right of
the Company or the right of any individual to terminate the employment
relationship at any time, with or without cause.