Exhibit 10.7


 


2009 Executive Bonus Plan


 


The 2009 Executive Bonus Plan (the “Bonus Plan”) covers executive
officers, vice presidents and other key employees.


 


Subject to the achievement of a minimum overall Gross Margin Percentage
for the full year 2009 (the “Gross Margin Hurdle Amount”), the determination of
the actual amount of the annual incentive bonus under the 2009 Executive Bonus
Plan to be paid to each such Plan Participant (the “Bonus Payout”) shall be
based on two components which shall be given equal weight as follows: i) the
Adjusted EBITDA percentage (“EBITDA Percentage”) shall be determined by the
percentage achievement of the Adjusted EBITDA amount reflected in the
Corporation’s 2009 Annual Financial Plan as approved by the Board of Directors on
December 18, 2009 (the “2009 Plan”) such that the EBITDA Percentage
increases linearly from zero at zero Adjusted EBITDA to 100% at 100% of
Adjusted EBITDA reflected in the 2009 Plan and further, from achievement of
Adjusted EBITDA of 100% of the 2009 Plan to Adjusted EBITDA of 150% of the 2009
Plan, the EBITDA Percentage increases linearly from 100% to 200%,  ii) the Free Cash Flow percentage (“FCF
Percentage”) shall be determined by the percentage achievement of the Free Cash
Flow amount reflected in the 2009 Plan such that the FCF Percentage increases
linearly from zero at zero Free Cash Flow to 100% at 100% of Free Cash Flow
reflected in the 2009 Plan and further, from achievement of Free Cash Flow of
100% of the 2009 Plan to Free Cash Flow of 150% of the 2009 Plan, the FCF
Percentage increases linearly from 100% to 200%, and iii) the respective Target
Amount for each Plan Participant shall be multiplied by the simple average of
the EBITDA Percentage and the FCF Percentage to determine the Bonus Payout for
such Plan Participant, with the Bonus Payouts being capped at 200% of the
Target Amounts; provided, however, that if the Gross Margin Hurdle Amount is
not achieved there shall be no Bonus Payouts under the 2009 Executive Bonus
Plan to any Plan Participant;


 


Notwithstanding the calculation of the Bonus Payouts as set forth
above, the Compensation Committee shall retain the authority to adjust the
amount to be paid to any Plan Participant in the discretion of the Committee,
provided, however, that, with respect to the Executive Officers of the
Corporation the Committee shall not increase the Bonus Payouts.


 


The target bonus amount for each Plan Participant who is a named
executive is the lesser of i) the amount set forth for each such Plan
Participant, respectively, in the “2009 Bonus Target” column of table below and
ii) the applicable percentage of the actual base salary amount paid to each
such Plan Participant for calendar year 2009 set forth for each for each such
Plan Participant, respectively,  in the “2009 Bonus Percentage” column
of the table below (the “Target Amounts”).


 

















 


	
  Name

  	
   

  	
  Title Named Executive Officer

  	
   

  	
  2009

  Bonus

  Target

  	
   

  	
  2009 Bonus

  Percentage

  	
   

  
	
  Ofer Gneezy

  	
   

  	
  President &
  Chief Executive Officer

  	
   

  	
  588,000

  	
   

  	
  100

  	
  %

  
	
  Gordon VanderBrug

  	
   

  	
  Executive
  Vice President

  	
   

  	
  242,000

  	
   

  	
  100

  	
  %

  
	
  Richard Tennant

  	
   

  	
  Senior Vice
  President, Finance & Chief Financial Officer

  	
   

  	
  313,000

  	
   

  	
  73

  	
  %

  
	
  Paul Floyd

  	
   

  	
  Senior Vice President, Global Products,
  Network & Systems

  	
   

  	
  226,000

  	
   

  	
  76

  	
  %

  
	
  Mark Flynn

  	
   

  	
  Chief Legal
  Officer & Corporate Secretary

  	
   

  	
  173,000

  	
   

  	
  57

  	
  %

  



 


These target bonus amounts will be accrued quarterly based on
year-to-date achievement of the Financial Plan.  Bonus payouts will be
paid following the end of the year.