Document:

Exhibit 10.1

 

OMNICELL
QUARTERLY EXECUTIVE BONUS PLAN

 

(Fiscal Year 2006 –
Effective beginning Q1 2006)

 

COMPANY OBJECTIVES: 

 

1) Drive earnings predictability and revenue growth

 

2) Drive execution of operating plan and strategic objectives

 

3) Motivate and inspire employees to contribute at peak performance

 

ELIGIBILITY :
Certain employees at the Director level and above (including Section 16
executive officers) who are employed full-time by Omnicell during an entire
eligibility period (fiscal quarter) are eligible for the Executive Bonus Plan.
If an individual is hired after the start of the relevant quarter, or is no
longer employed by Omnicell as of the last day of the relevant quarter, the
employee is not eligible to participate in the Executive Bonus Plan for that
quarter.

 

INCENTIVE TARGET : The
Incentive Target is stated as a percentage of quarterly base salary.  50% of the total Incentive Target is based on
achievement of the quarterly Corporate Target, and 50% is based on achievement
of the quarterly Individual Targets.  The
quarterly Corporate Target must be achieved before any Individual Target bonus
is paid, but failure to achieve Individual Targets will not similarly affect
payment of the Corporate Target portion of the bonus.  It is anticipated that the Incentive Target
levels will range from 25% to 60% of quarterly salary depending on the
seniority level of the participant.

 

PAYMENT SCHEDULE :
The Incentive Target is paid on a quarterly basis typically in the first
payroll period after the compensation committee of the Board of Directors (the “Committee”)
has determined that the Corporate Target for a particular quarter was reached.

 

BONUS
COMPONENTS 

 

Corporate Target: the
Corporate Target is driven by the corporate profitability and revenue growth
goals.  Achievement of the Corporate
Target requires 100% achievement of both of the following EPS Targets and
Revenue Growth Targets.

 

• EPS Target – the
profitability portion of the Corporate Target is achieved if the company meets
the quarterly profitability threshold target set by the Committee. There is an
upside payment potential of an additional 10% of each individual’s total bonus
amount for achievement of each incremental profitability metric above the
threshold target as set by the Committee.

 

• Revenue Growth Target – the
revenue growth portion of the Corporate Target is achieved by meeting the
revenue threshold target set by the Committee.

 

Individual Target: the
Individual Target is based on achievement of goals tied to the corporate operating
plan and strategic objectives.  This
target is achieved by meeting the quarterly individual objectives (MBOs) set by
the individual’s manager.

 

 

DIRECTION
AND ADMINISTRATION

 

•  CEO may adjust the percentage weightings within the plan to redirect
behavior based on changes in the economy, immediate needs of the company,
changes in long-term strategies and individual career growth and development
throughout the fiscal year.

 

•  Participation in the Plan is at the discretion of Company management.
The Company reserves the right to make changes to the Plan at any time. The
Committee may alter the incentive payout based on achievement of publicly
announced targets, product milestones, strategic goals, cross functional
teamwork and collaboration, and unforeseen changes in the economy and/or
geopolitical climate.EXHIBIT 10.1

 

Cascade Corporation

Executive
Incentive Plan

FY 2007

 

Overview

 

Key plan objectives include maximizing adjusted IBT (adjusted for
executive incentive and environmental expense) and building shareholder
value.  We believe that the measure that
has the greatest impact on shareholder value is fundamentally income.  As a result, this plan focuses on this
measure with a modifier for individual contribution.

 

Key Plan Features

 

•                  Awards
based on actual performance, not budget

•                  Threshold
or minimum performance at 75% level required before Plan pays any award

•                  Individual
performance (or “how” results are achieved) will modify the final award

•                  Upside
opportunity for extraordinary performance

•                  Board
discretion to adjust if economic/business conditions warrant (up to 30% of base
salary maximum)

•                  Acquisitions
or divestitures having a material impact on plan metrics will be incorporated
using pro-forma business plan data.

 

Award Opportunity

 

Each position is eligible to receive a percentage of Adjusted Income
Before Taxes (IBT) above $32 million to a maximum dollar award amount as
indicated.  The Board may adjust the
minimum level to reflect Board and management-determined business goals and
strategies.  In addition, the Board would
have the discretion to allocate additional award dollars in the event of
exceptional circumstances.

 

	
  Position

  	
   

  	
  $32M - <$40M

  	
   

  	
  $40M - <$50M

  	
   

  	
  $50M + >

  	
   

  	
  Target

  	
   

  	
  Maximum

  	
   

  
	
  CEO

  	
   

  	
  .45

  	
  %

  	
  .72

  	
  %

  	
  .99

  	
  %

  	
  $

  	
  322,000

  	
   

  	
  $

  	
  644,000

  	
   

  
	
  CFO

  	
   

  	
  .23

  	
  %

  	
  .36

  	
  %

  	
  .50

  	
  %

  	
  $

  	
  162,000

  	
   

  	
  $

  	
  324,000

  	
   

  
	
  COO

  	
   

  	
  .23

  	
  %

  	
  .36

  	
  %

  	
  .50

  	
  %

  	
  $

  	
  162,000

  	
   

  	
  $

  	
  324,000

  	
   

  
	
  SVP-HR

  	
   

  	
  .14

  	
  %

  	
  .22

  	
  %

  	
  .31

  	
  %

  	
  $

  	
  99,000

  	
   

  	
  $

  	
  198,000

  	
   

  
	
  VP-Fin.

  	
   

  	
  .14

  	
  %

  	
  .22

  	
  %

  	
  .31

  	
  %

  	
  $

  	
  99,000

  	
   

  	
  $

  	
  198,000

  	
   

  
	
  VP-Mfg.

  	
   

  	
  .11

  	
  %

  	
  .18

  	
  %

  	
  .25

  	
  %

  	
  $

  	
  80,000

  	
   

  	
  $

  	
  160,000

  	
   

  
	
  VP-Mkt.

  	
   

  	
  .10

  	
  %

  	
  .16

  	
  %

  	
  .22

  	
  %

  	
  $

  	
  72,000

  	
   

  	
  $

  	
  144,000

  	
   

  
	
  Totals

  	
   

  	
  1.4

  	
  %

  	
  2.22

  	
  %

  	
  3.08

  	
  %

  	
  $

  	
  996,000

  	
   

  	
  $

  	
  1,992,000

  	
   

  

 

Individual Modifier:

 

	
  Outstanding achievement:

  	
  1.2 times

  
	
  Target achievement:

  	
  1.0 times

  
	
  Below target achievement:

  	
  0.8 times

  

 

 

Example:

 

	
  Position:

  	
  CFO

  
	
  Adjusted IBT:

  	
  $45.0 million

  
	
  Incentive%

  	
  .36%

  
	
  Individual Performance:

  	
  Target

  
	
   

  	
   

  
	
  Award calculation:

  	
  $45.0 million x .36 x 1.0 = $162,000

  

 

2EXHIBIT 10.42

 

Compensation Arrangements for Named Executive Officers
and Non-Employee Directors of Avaya Inc. (“Avaya” or “the Company”)

 

Compensation Arrangements for Named Executive Officers

 

In
addition to participation in certain plans and/or arrangements already filed
and identified as exhibits to this Form 10-K, the following applies with
respect to the Company’s Chief Executive Officer (“CEO”) and the other four
most highly compensated executive officers (together with the CEO, the “Named
Executive Officers”) for fiscal 2005:

 

Salaries
for fiscal 2005 were:

 

	
  Donald K.
  Peterson

  	
   

  	
  $

  	
  940,000

  	
   

  
	
  Chairman of
  the Board and Chief Executive Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Garry K.
  McGuire

  	
   

  	
  $

  	
  470,000

  	
   

  
	
  Chief
  Financial Officer and Senior Vice President — Corporate Development

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Michael C.
  Thurk

  	
   

  	
  $

  	
  475,000

  	
   

  
	
  Senior Vice
  President and President — Global Communications Solutions

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Louis J. D’Ambrosio

  	
   

  	
  $

  	
  475,000

  	
   

  
	
  Senior Vice
  President and President — Global Sales and Marketing

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Francis M.
  Scricco

  	
   

  	
  $

  	
  475,000

  	
   

  
	
  Senior Vice
  President and President — Avaya Global Services

  	
   

  	
   

  	
   

  

 

Salaries
for the Named Executive Officers for fiscal 2006 remain unchanged.

 

In addition, Avaya provides
the Named Executive Officers with certain fringe benefits, including one or
more of the following:  financial
counseling services, a car allowance, reimbursement for home security systems,
certain temporary housing expenses, and limited use of the corporate aircraft
and automobiles for personal reasons. 
The Compensation Committee of the Company’s Board of Directors periodically
reviews fringe benefits made available to the Company’s executive officers,
including the CEO, to ensure that they are in line with market practice.

 

Compensation Arrangements for Non-Employee Directors 

 

Upon becoming a member of
Avaya’s Board, each new Director receives an inaugural grant of restricted stock
units having a total value on the date of grant of $50,000. The restricted
stock units are placed in that Director’s deferred share account under the
Company’s Deferred Compensation Plan, and, assuming they have vested, the
underlying shares are distributed to that Director upon retirement from the
Board.

 

 

For fiscal 2005, all
non-management Directors received an annual retainer of $100,000. The chair of
the Audit Committee receives an additional annual retainer of $20,000. The
chair of each other committee (other than Mr. Peterson) receives an
additional annual retainer of $10,000. Directors do not receive separate
meeting fees. The retainers are paid on March 1 of the respective fiscal
year.

 

Non-employee Directors
received the following compensation with respect to fiscal 2005:

 

	
  Name

  	
   

  	
  Amount

  	
   

  
	
  Bruce R.
  Bond

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  Joseph P.
  Landy

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  Mark Leslie

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  Philip A.
  Odeen

  	
   

  	
  $

  	
  110,000

  	
   

  
	
  Hellene S.
  Runtagh

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  Daniel C. Stanzione

  	
   

  	
  $

  	
  110,000

  	
   

  
	
  Paula Stern

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  Anthony P. Terracciano

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  Richard F. Wallman

  	
   

  	
  $

  	
  120,000

  	
   

  
	
  Ronald L. Zarrella

  	
   

  	
  $

  	
  100,000

  	
   

  

 

Directors are required to
elect to receive at least 50% of their retainers in our Common Stock, to be received
either at the time of payment of their retainers or to be placed in their
deferred share accounts under the Company’s Deferred Compensation Plan. Any
remaining amounts may be paid in cash, but in no event is the cash paid
permitted to exceed 50% of the annual retainer. Directors can elect to defer
all or a portion of their cash retainers under our Deferred Compensation Plan.
The interest rate on cash deferrals is determined by the Board. The Board has
determined that the interest rate to be applied at the end of each fiscal
quarter to each deferred cash account is 120% of the average 10-year U.S.
Treasury note rate for the previous calendar quarter.

 

We also provide non-employee
Directors with travel accident insurance when traveling in connection with
Avaya-related business. We do not provide a retirement plan or other
perquisites for our Directors.  Directors
have an opportunity to participate in the Avaya Product Program for Directors, in
which certain Avaya products (specifically, an Avaya IP Office system for one
location with up to 20 telephones) and associated maintenance services are
provided at no charge; however, the equipment and the related maintenance is
taxable as income to any Director that chooses to participate, and the Company
provides a gross-up for the resulting taxes. The cost of providing the products
and the installation services for each Director who participates in the Product
Program is estimated to be between $3,000 and $5,000, with maintenance services
ranging from between $300 and $600 each year, depending upon the systems
installed.

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