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2006 Executive Sales Commission Plan
 I. Introduction
  II. Eligibility
  
    
    Senior Vice President, Worldwide Sales and Support
    
    Vice President, North America Sales
    
    Vice President, APAC Sales
    
    Vice President, EMEA Sales
  III. Account Assignments
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IV. Definition of Terms
  
    
    Revenue Target (Quota):A quarterly revenue target is established for each salesperson at the beginning of the plan.
A revenue target may be allocated among different product lines. Each salespersons revenue target is communicated
via the Individual Sales Compensation Agreement. The Individual Sales Compensation Agreement will identify each
salespersons Territory / Account Base, their target incentive compensation, their revenue targets by product line and
other important plan provisions.
    
    Total Target Compensation:Target compensation is comprised of base pay and target incentive compensation. The mix of
base pay and target incentive is determined by the sales employees responsibility as follows:
 
    
    Employees with direct selling responsibility*
 
 
    
    Employees with sales engineering responsibility
 
 
    
    Base Pay:Base pay is a fixed compensation component which is paid in accordance with the Companys standard payroll
procedures in the region where the employee is paid. All employees with sales responsibility who are eligible to
receive incentive compensation under the Sales Compensation Plan shall be classified as exempt employees if and to the
extent such classification is permissible under local laws.
    
    Incentive Compensation (Commissions):Target incentive compensation is a target % of total compensation as described
above. The actual earned incentive compensation which is payable is determined based on the salespersons achievement
against his or her quota. Any earned incentive compensation is paid quarterly.
    
    Revenue:For the purposes of this Plan revenue shall be recognized when the product or service contract is invoiced.
The timing of when to invoice a customer is determined by the Companys Finance Department and by the terms of the
Companys Sales Order Acceptance Policy. Sales personnel will earn commission on sales if and when the product or
service contract is invoiced to the customer. Invoices issued on Non-Revenue Orders as defined by the Policy (i.e.
trials, evaluations or promotions) are not considered as revenue for sales incentive compensation or bonus payments
unless otherwise specified in a bonus plan.
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V. Calculating Commissions
  Step 1: Determining % of quota achieved
  Step 2: Determining % of commission eligible
  Step 3: Determining the % of commission earned
  % of Eligible% Quota
    
    Commission Earned &Achieved
    
    Payable0-25%
    
    
    026-50%
    
    
    50
    %51%
    
    
    100
    %
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Calculating Commissions Earned over 100% of Quota
 If the actuals exceed the YTD Quota but donotexceed the annual quota
  If the actuals exceed the YTD Quotaandexceed the annual quota
  % of Eligible% Quota
    
    Commission Earned &Achieved
    
    Payable101-125%
    
    
    125
    %126+%
    
    
    150
    %
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Regional Account Manager
 Annual Target Commission =
    
    $
    40,000
    
    
    Total Annual Quota =
    
    $
    7,000,000Quarterly Commission Target =
    
    $
    10,000Quarterly Quota Targets:
    
    
    Q1 =
    
    
    $
    1,800,000
    
    
    
    Q3 =
    
    
    $
    1,700,000Q2 =
    
    
    $
    2,100,000
    
    
    
    Q4 =
    
    
    $
    1,400,000Actual Quarterly Revenues:
    
    
    Q1 =
    
    
    $
    864,000
    
    
    
    Q3 =
    
    
    $
    2,398,000Q2 =
    
    
    $
    2,065,000
    
    
    
    Q4 =
    
    
    $
    2,462,000
 Q1 Calculation:
  Actual YTD revenues
    
    
    
    YTD Quota
    
    
    
    % quota achieved$864,000
    
    /
    
    $1,800,000
    
    =
    
    48.0%
  % of quota achieved
    
    
    
    YTD Commission target
    
    
    
    % commission eligible48.0%
    
    X
    
    $10,000
    
    =
    
    $4,800
  % commission eligible
    
    
    
    earned % from table
    
    
    
    commission earned$4,800
    
    X
    
    50.0%
    
    =
    
    $2,400
  Q2 Calculation:
  Actual YTD revenues
    
    
    
    YTD Quota
    
    
    
    % quota achieved$2,929,000
    
    /
    
    $3,900,000
    
    =
    
    75.1%(sum of Q1 & Q2)
    
    
    
    (sum of Q1 & Q2)
  % of quota achieved
    
    
    
    YTD Commission target
    
    
    
    % commission eligible75.1%
    
    X
    
    $20,000
    
    =
    
    $15,021(qtrly commission target * 2 for 2 qtrs)
  % commission eligible
    
    
    
    earned % from table
    
    
    
    commission earned$15,021
    
    X
    
    100.0%
    
    =
    
    $15,021
 
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Regional Account Manager
 Annual Target Commission =
    
    $
    40,000
    
    
    Total Annual Quota =
    
    $
    7,000,000Quarterly Commission Target =
    
    $
    10,000Quarterly Quota Targets:
    
    
    Q1 =
    
    
    $
    1,800,000
    
    
    
    Q3 =
    
    
    $
    1,700,000Q2 =
    
    
    $
    2,100,000
    
    
    
    Q4 =
    
    
    $
    1,400,000Actual Quarterly Revenues:
    
    
    Q1 =
    
    
    $
    864,000
    
    
    
    Q3 =
    
    
    $
    2,398,000Q2 =
    
    
    $
    2,065,000
    
    
    
    Q4 =
    
    
    $
    2,462,000
 Q3 Calculation:
  Actual YTD revenues
    
    
    
    YTD Quota
    
    
    
    % quota achieved$5,327,000
    
    /
    
    $5,600,000
    
    =
    
    95.1%(sum of Q1, Q2 & Q3)
    
    
    
    (sum of Q1, Q2 & Q3)
  % of quota achieved
    
    
    
    YTD Commission target
    
    
    
    % commission eligible95.1%
    
    X
    
    $30,000
    
    =
    
    $28,538(qtrly commission target * 3 for 3 qtrs)
  % commission eligible
    
    
    
    earned % from table
    
    
    
    commission earned$28,538
    
    X
    
    100.0%
    
    =
    
    $28,538
 
 Q4 Calculation:
  Actual YTD revenues
    
    
    
    YTD Quota
    
    
    
    % quota achieved$7,789,000
    
    /
    
    $7,000,000
    
    =
    
    111.3%(sum of Q1, Q2, Q3 & Q4)
    
    
    
    (sum of Q1, Q2, Q3 & Q4)
  % of quota achieved
    
    
    
    YTD Commission target
    
    
    
    % commission eligible111.3%
    
    X
    
    $40,000
    
    =
    
    $44,509
   % commission eligible
    
    
    
    earned % from table
    
    
    
    commission earned$44,509
    
    X
    
    100.0%
    
    =
    
    $44,509
  commission earned
    
    
    
    
    
    
    
    Accelerator commissionabove 100%
    
    
    
    accelerator from table
    
    
    
    added$4,509
    
    X
    
    25%
    
    =
    
    $   1,127Total
Commission earned     =
    
    $45,636
 
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VI. 2006 Commission Payment Plan
  VII. General Plan Provisions
 The Company
 Employment Changes
 
    
    New Employees The quota for new employees for the balance of the period shall
be set by the Chief Executive Officer with approval of the Chief Financial Officer.
Incentive Compensation may be prorated based on the number of months the employee
occupies an eligible role for the Plan.
    
    Termination of Employment In the event of an employees termination or resignation
for whatever reason, the employee shall receive the base compensation through the
effective date of termination. In addition, the employee shall receive commission on
sales orders by customers of his or her Territory / Account Base provided that (i)
these orders are received by the Company as of the effective date of termination and
(ii) the orders are invoiced during the quarter in which the employment effectively
terminates. Payment of any earned commissions will be made in accordance with the
commission payment plan described above.
    
    Leaves of Absence:If an employee takes a Leave of Absence from the Company for any
reason during the quarter that is greater than 2 weeks in length, the CEO and the VP of
Human Resources will determine what prorating to use in the Commissions calculation.
Any prorating will be conducted in observance of applicable local laws.
 Status Changes
 
    
    Changes in Position In the event an employee changes positions within the Company
such that they are no longer eligible for the Executive Sales Compensation Plan, the
employee would receive commissions, if any, on the employees orders received and
accepted by the Company as of the effective date of the change provided the order is
fulfilled, and invoiced in the quarter in which the change occurs. Payment of any
earned commissions will be made in accordance with the commission payment plan
described above.
    
    Changes in Territory, Account Base or Market Segment The Company, at its sole
discretion, can change an employees territory, account base and/or market segment at
any time. In the event of a change in one of these areas, revenue targets may be
adjusted. Incentive compensation earned based on targets established prior to the
transfer would be paid according to the terms of this Sales Compensation Plan for
orders received and accepted prior to the effective date of the transfer provided the
order is fulfilled, and invoiced in the quarter in which the change occurs.
    
    Quota Reallocation The Company, at its sole discretion, can change an employees
Quota at any time. Any quota changes will be determined by business needs, which will
be explained to the affected employee as part of the reallocation process.
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Returns, Bad Debt and Corrections:
 Commission Advances:
 Plan Termination:
 Plan Administration:
 Commission Disputes:
 Quota Allocation:
 Quotas for a Selling Sales Executives:
 Management Discretion:
 Not an Employment Contract:
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Confidentiality:
 Exceptions:
 Governing Law:
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