<PAGE>
 
                                                                  EXHIBIT 10.13

                             1996 COMPENSATION PLAN
                                  MIKE PARHAM
                             VICE PRESIDENT, SALES


COMPENSATION OBJECTIVES

     1. Provide overall compensation that is competitive within the industry for
     the job position and responsibilities.

     2. Provide motivation to meet and exceed quantitative and qualitative goals
     for the development and management of the North American and (temporarily)
     the EMEA sales force.

     3. Ensure management of the worldwide sales force in a way that is fully
     compatible with, and in support of, the Company's overall goals, especially
     attainment of quota objectives at specified expense levels.

     4. Set the stage for transitioning of the management of the EMEA sales
     organization to the VP International Sales by Jan. 97.

TARGET COMPENSATION LEVEL AT PLAN

Compensation at plan is $215,000 (for the 12 month period), with opportunity for
increased payout above that level based upon performance as described below.


PLAN DESCRIPTION

The Plan will operate with an Annual Base Salary of $115,000 (paid semi-monthly
beginning January 1, 1996). In addition to Base Salary, there will be
Quantitative Incentive Payments, Qualitative Incentive Payments, and Bonus
Payments. The Bonus Payments are broken into Fixed and Override portions.
Quarterly incentive payments will be determined in accordance with the Plan and
paid upon completion of the quarter's closing, allowing reasonable time for
administration. The Override Bonus Incentive Payment will be made after the
close of the Compensation Period. The Override Bonus Incentive Payments will
have no fixed upper limit.

At Target, the Quantitative Incentive Payments would total $76,540, the
Qualitative Incentive Payments would total $12,000 and the Fixed portion of the
Bonus Payment would total $12,000.
<PAGE>
 
PLAN OPERATION

QUANTITATIVE INCENTIVE PAYMENTS

  For the first 1 through 100% of Plan, the override percentage is .0018 per
dollar of revenue.  At Plan, the worldwide revenue from all sources is as
follows:

       Q1 96    $ 9,400,000
       Q2 96    $10,100,000
       Q3 96    $ 9,500,000
       Q4 96    $13,500,000
                -----------
       TOTAL    $42,500,000


QUALITATIVE INCENTIVE PAYMENTS

Attainment of quarterly qualitative performance objectives will be judged by the
VP-Sale's manager.  The ongoing agreement and specification of each quarter's
qualitative objectives will be the responsibility of the VP-Sales and the VP-
Sale's manager.  These qualitative objectives will not exceed three in number
for each quarter.  If all goals are met, payment will be $3,000.  If fewer goals
are met, payment will be prorated accordingly.

FIXED BONUS PAYMENTS
--------------------
Fixed Bonus Payments include quarterly payments of $3,000 upon attainment of the
Quarterly Revenue objective (per Plan as set forth above).

OVERRIDE BONUS PAYMENTS will be paid as an additional 0.0036% of all worldwide
-----------------------                                                       
sales over $42,500,000  There will be no cap on this amount.