EX-10.1 GLENAYRE TECHNOLOGIES, INC. INCENTIVE PLAN



 










EXHIBIT 10.1




GLENAYRE TECHNOLOGIES, INC. INCENTIVE PLAN










1. Objective:




The Glenayre Technologies, Inc. Incentive Plan (the “Plan”) was created to motivate and provide
incentive to eligible employees of Glenayre Technologies, Inc. and its wholly owned subsidiaries
around the world and to maximize company profits.




	2.  	Funding: The Plan may be funded to a maximum of 200% of the Target Earnings as approved by
the Board of Directors.






	3.  	Employee Target Bonus: Annual Base Salary X (times) Target Bonus Level at 100% of incentive
pool funding.






	   	Example:





     Annual Base Salary is $60,000; Target Bonus Level is 10%; Target Bonus = $ 6,000.



4. Individual Performance Multiplier (“Performance Multiplier”):




At the beginning of each plan year, each manager is required to establish and set annual
performance objectives for each Plan participant in support of Glenayre’s strategy and goals.
During the course of the year, each manager will be responsible for meeting with each of his/her
employees to assess progress and to adjust objectives to ensure they continue to support the
overall Company goals.



At the end of Plan Year, each manager will assess the level of achievement for objectives and
assign a performance rating. Provided that the pool is funded and the employees’ performance is
at or above the minimum performance level, a percentage of the bonus pool will be paid to the
employees based on the actual size of the bonus pool and the employee’s performance rating.



5. Example Payout:




Annual Base Salary is $60,000; Target Bonus Level is 10%, Targeted Bonus = $ 6,000.



Assumptions for this example: The bonus pool is funded at 100%. The Individual Performance
Multiplier is 80%.



Actual Bonus: $6,000 X 100% X 80% = $4,800



 









 








GLENAYRE TECHNOLOGIES, INC. INCENTIVE PLAN




DEFINITIONS





	•  	Annual Base Salary – Total base salary earned during the Plan
year, (prior to deductions for contributions to the 401(k) Plan,
health care coverage, flexible spending accounts, or for any other
Company sponsored pre-tax or deferred compensation plans) received
by a Participant from the Company while participating in the Plan.






	•  	Company — Glenayre Technologies, Inc. and its subsidiaries.






	•  	Eligibility Requirements—






	a.  	An employee must be active on December 31 during the Plan year and have been employed
for a minimum of 3 months to be eligible to participate in the Plan.






	b.  	Plan bonus payments — Participants must be actively employed on the date of payout to
be eligible to receive their incentive bonus payment.






	c.  	Any Participant on a formal performance improvement plan at the end of any plan period
will not be eligible for a payment.






	d.  	Non-exempt employees are not eligible to participate in the Plan.






	   	Periods of paid or unpaid leave of absence in excess of 30 consecutive days will not be
considered for Plan eligibility. Annual Base Earnings will be prorated according to the length
of disability. Payment of earned Plan bonuses will be made upon return to work from a leave of
absence.






	•  	Participant — A regular employee of the Company who is approved
by the Chief Executive Officer or the Vice President, Human
Resources to be a Participant in the Plan. Plan participation
will be prorated based on the length of time a Participant is
eligible. No employee may participate in more than one incentive
or commission plan.






	•  	Payment Date – Forty-five (45) days after the performance review
or audit completion by the independent auditors and Board of
Directors approval of the Company’s annual financial statements.






	•  	Plan – Glenayre Technologies, Inc. Incentive Plan (the “Plan”)






	•  	Plan Year – January 1 through December 31.






	•  	Target Bonus Level — The target percentage of pay that the
Participant could receive from the Plan if the bonus pool is fully
funded and the Individual Annual Performance Objectives are
achieved. The Plan Level for each Participant is recommended to
and approved by the Chief Executive Officer and/or Vice President,
Human Resources. In addition, the Board of Directors approves
Executive Officer Plan Participation Levels each year.






	•  	Target Earnings – The earnings target for either the Division or
the Company as approved on an annual basis by the Board of
Directors of the Company.






	•  	Termination or Amendment – While the Company intends to continue
the Plan indefinitely, it reserves the right at any time and for
any reason, in its sole and absolute discretion, to amend or
terminate the Plan.