Leadership incentive plan



 Exhibit 10.18 

 
 



 
 2011 Leadership Incentive Plan 
 Effective April 11, 2011 
 Plan Objective: The objective of the Leadership
Incentive Plan (“the Plan”) is to attract, retain, motivate and reward leaders of the Company for driving the Company to achieve specific corporate objectives. 
 Plan Summary: The Plan is a cash-based bonus program that provides payouts which are earned based on corporate achievement of pre-established objectives and personal achievement of pre-established
individual performance objectives. 
 Plan Funding: The Plan is funded based on the achievement of certain revenue levels for the fiscal
year. 
 Eligible Employees: All regular full time employees holding a position of Director, Senior Director, Vice President, Senior Vice
President and CEO, who are not on a commission plan or other individuals who may be identified and approved by the Compensation Committee or the Chief Executive Officer, are eligible for the Plan (“the Participants”). In order to earn a
bonus under the Plan, Participants must meet the following criteria: 
  

	 	•	 	 Employed by Complete Genomics for a minimum of one full fiscal quarter 



 

	 	•	 	 Have a successful performance review rating 


  

	 	•	 	 Be employed by Complete Genomics, or one of its subsidiaries, on the day bonus amounts, if any, are paid. 



Eligible Earnings: Earned bonus amounts under the Plan are calculated as a percentage of eligible earnings. Eligible earnings categories included
in the calculation are: base pay, holiday pay, vacation pay, and sick pay earned in FY11 pursuant to the Company’s payroll system (“Eligible Earnings”). 
 Bonus Components: Participants bonus payments are based upon achievement of both Corporate and Personal objectives broken into 3 areas: 

 

	 	•	 	 Corporate Objectives 


  

	 	•	 	 Company Revenue 


  

	 	•	 	 Cash Balance 


  

	 	•	 	 Individual Performance Objectives. 


 The weighting between corporate objectives and individual objectives varies by level as shown in the table below. The corporate objectives for all Participants are weighted with 70% being based on Revenue
and 30% being based on Cash Balance. 








					
	 Level
	  	 Corporate Weighting
	  	 Individual Weighting

	 CEO
	  	100%	  	0%
	 C-Suite / SVP
	  	75%	  	25%
	 Vice President
	  	60%	  	40%
	 Sr. Director
	  	40%	  	60%
	 Director
	  	20%	  	80%

 Objectives: The following metrics were approved as the targets for the FY11 Leadership Incentive Plan. 

Revenue – Weighting = 70% 
  

																																	
	 Revenue Metric Payout Scale
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Revenue* as % of revised AOP Revenue Target
	  	 	<75	% 	 	 	75	% 	 	 	85	% 	 	 	92	% 	 	 	100	% 	 	 	105	% 	 	 	110	% 	 	 	>120	% 
	 Payout **
	  	 	0	% 	 	 	30	% 	 	 	60	% 	 	 	80	% 	 	 	100	% 	 	 	115	% 	 	 	125	% 	 	 	150	% 

 Revenue target as approved by the Compensation Committee of the Board of Directors 

Cash Balance – Weighting = 30% 
  

																	
	 Year End Cash Metric Payout Scale
	  	 	 	 	 	 	 	 	 	 	 	 
	 YE Cash (Actual* - AOP Target)
	  	<=($	6M)	  	 	($	4M	) 	 	($	2M	) 	 	 	Target	  
	 Payout**
	  	 	0	% 	 	 	50	% 	 	 	75	% 	 	 	100	% 

  

	**	Straight Line interpolation between points 


Cash target as approved by the Compensation Committee of the Board of Directors. Target may be modified by the Committee to adjust for major business
events such as financings or acquisitions. 
 Committee Discretion: The Compensation Committee retains the right to adjust the Leadership
Incentive Plan in its discretion.