Document:

Exhibit 10.1

 

Summary of
Officers’ Incentive Plan for Fiscal Year 2005

 

Purpose

 

The purpose of this plan is to provide
executive officers with a financial incentive to encourage them to perform in a
manner that is aligned with the Company’s objectives and performance goals, and
to contribute to the Company’s ability to hire and retain quality executives.

 

Eligibility and Participation

 

Eligible employees in this plan include all
corporate officers.  Participants include
the following positions:

 

President and Chief Executive Officer

Executive Vice President and President of
L.A. Division

Senior Vice President and Chief Financial
Officer

Senior Vice President and General Counsel

Senior Vice President and President of N.A.
Division

Vice President and President of A.P. Division

 

New officers hired during the fiscal year are
eligible to participate during the fiscal year, but on a prorated basis.  To receive a bonus award, the participant
must be actively employed with the Company on the last day of the performance
period unless otherwise approved by the Compensation Committee.  Participation in the plan does not confer a
right on the participant to participate in any subsequent year or the right to
continue in the Company’s employment.

 

Bonus Target Percentages

 

The target percentage used to calculate the
bonus is expressed as a percentage of base salary.  The target percentage varies from 50% to
100%  based on the officer’s
position.  The target award represents
the level of bonus payment the participant may earn if the plan performance is
achieved at target and acceptable organizational standards are met.  Participants may receive bonus awards above
or below the target based on performance levels that exceed or fall below expectations.

 

Bonus Calculation

 

The bonus payment is based on three measures:
Financial Performance, Operational Performance and Individual Performance.  Financial Performance is based upon earnings
per share of the Company and earnings before taxes for the applicable division
of the Company.  Operational Performance
is based upon the incident rate of recordable injuries and lost time
accidents.  Individual Performance is
determined based upon the participant’s individual contribution to the Company’s
performance.

 

Under this Plan, each officer’s bonus amount
is first calculated based on an objective analysis of our Financial Performance
and Operational Performance, with approximately 90% of this amount based on the
Financial Performance and 10% based on the Operational Performance.  An Individual Performance multiplier, which
can range from 0 to 1.25 times, is then applied to the bonus to account for
each executive officer’s individual performance.  The bonuses are calculated after the end of
the fiscal year for the Compensation Committee’s review and approval.  Under the plan, determination of actual
performance awards is the responsibility of the Compensation Committee, which
reserves the right, in its sole discretion, to increase or decrease awards to
participants.Exhibit 10.35

 

 

	
   

  	
   

  	
  FY05 Individual Compensation Plan

  
	
   

  	
   

  	
  Effective Date:10/31/04 - 10/29/05

  
	
   

  	
   

  	
   

  	
  Type:

  	
  ý

  	
  Initial

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
  Revision

  

 

 

	
  NAME:

  	
  Vicki L.
  Andrews

  
	
   

  	
   

  
	
  TITLE:

  	
  Sr. Vice
  President, Worldwide Sales

  

 

FY05 COMPENSATION PLAN:

 

	
   

  	
   

  	
  ANNUAL $

  	
   

  	
   

  
	
  Base Salary:

  	
   

  	
  $

  	
  350,000

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Worldwide Bookings Bonus:

  	
   

  	
  $

  	
  [*]

  	
   

  	
  (paid at
  fiscal year-end based on FY05 results)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quarterly Revenue Bonus:

  	
   

  	
  $

  	
  [*]

  	
   

  	
  (paid on
  quarterly revenue results; 25% target each quarter)

  
	
  Revenue Signature Bonus:

  	
   

  	
  $

  	
  [*]

  	
   

  	
  (paid at
  fiscal year-end based on FY05 results)

  
	
   

  	
   

  	
  $

  	
  [*]

  	
   

  	
   

  
	
  Corporate MBO Bonus:

  	
   

  	
  $

  	
  [*]

  	
   

  	
  (payable at
  fiscal year-end)

  
	
   

  	
   

  	
  $

  	
  [*]

  	
   

  	
   

  
	
  Total Variable at Target:

  	
   

  	
  $

  	
  [*]

  	
   

  	
   

  
	
   

  	
   

  	
  $

  	
  [*]

  	
   

  	
   

  
	
  Total Target Compensation
  at Plan:

  	
   

  	
  $

  	
  [*]

  	
   

  	
   

  

 

I. 
PLAN TARGETS:

 

	
   

  	
   

  	
  1H

  	
   

  	
   

  	
   

  	
  2H

  	
   

  	
   

  	
   

  	
  FY05 Total

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Worldwide Bookings QUOTA:

  	
   

  	
  $[*]

  	
   

  	
   

  	
   

  	
  $[*]

  	
   

  	
   

  	
   

  	
  $[*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Q1

  	
   

  	
  Q2

  	
   

  	
  Q3

  	
   

  	
  Q4

  	
   

  	
  FY05 Total

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  QUARTERLY REVENUE TARGET:

  (adjusts to match CFO Target)

  	
   

  	
  $[*]

  	
   

  	
  $[*]

  	
   

  	
  $[*]

  	
   

  	
  $[*]

  	
   

  	
  $[*]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1H

  	
   

  	
   

  	
   

  	
  2H

  	
   

  	
   

  	
   

  	
  FY05 Total

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REVENUE SIGNATURE TARGET:

  	
   

  	
  $[*]

  	
   

  	
   

  	
   

  	
  $[*]

  	
   

  	
   

  	
   

  	
  $[*]

  	
   

  

 

II. PLAN MECHANICS

 

A.  BOOKINGS VOLUME BONUS:

 

Annual
Bookings Bonus is paid at year-end on the basis of the FY05 total Bookings
achievement level, according to the FY05 Sales Commission/Bonus Policy and the
current Synopsys Sales Order Acceptance and Distribution Policy.  For each semi-annual period when quota plan
is exceeded, an additional [*] point will be added to your annual Bookings
multiplier to a maximum of [*] 
additional points.  For achieving
the annual Revenue Signature target, an additional [*]  bonus points will be added.

 

Annual
Bookings Bonus is paid according to the following formula for performance
against the FY05 Annual Bookings quota:

 

	
  % of FY05

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Annual Target Bookings

  	
   

  	
  Percent of Annual

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quota Achieved

  	
   

  	
  Target Bonus

  	
   

  	
  Comments

  	
   

  	
   

  
	
  < [*]%

  	
   

  	
  0.0%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [*]% - [*]%

  	
   

  	
  [*]% - [*]%

  	
   

  	
  [*] pts for
  every point

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  > [*]% - [*]%

  	
   

  	
  [*]% - [*]%

  	
   

  	
  [*] pts for
  every point

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  >[*]%

  	
   

  	
  [*]% + [*]%

  	
   

  	
  1H above the
  target: [*] bonus pts

  	
   

  	
  * [*] bonus
  pts added for hitting

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2H above the
  target: [*] bonus pts

  	
   

  	
  [*]% of
  annual Revenue

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Signature

  	
   

  

 

1

 

B.  REVENUE TARGET BONUS

 

B-1.
Quarterly Revenue Bonus

 

Quarterly
Revenue Bonus is paid based on achieving [*]% of the current corporate
quarterly revenue target.

 

No
quarterly revenue bonus is paid unless the current quarter’s revenue target is
achieved ([*]%).

Revenue
targets below will be adjusted to match current CFO target each quarter.

Quarterly
Revenue Bonus is paid according to the following formula for performance
against the FY05 Quarterly Revenue Target.

 

	
   

  	
   

  	
  Q1

  	
   

  	
  Q2

  	
   

  	
  Q3

  	
   

  	
  Q4

  	
   

  	
  Total

  	
   

  
	
  Plan Revenue
  Target

  (adjusts to current CFO target)

  	
   

  	
  $

  	
  [*]

  	
   

  	
  $

  	
  [*]

  	
   

  	
  $

  	
  [*]

  	
   

  	
  $

  	
  [*]

  	
   

  	
  $

  	
  [*]

  	
   

  
	
  Quarterly
  Revenue Bonus

  	
   

  	
  $

  	
  [*]

  	
   

  	
  $

  	
  [*]

  	
   

  	
  $

  	
  [*]

  	
   

  	
  $

  	
  [*]

  	
   

  	
  $

  	
  [*]

  	
   

  

 

B-2.
Annual Revenue Signature Bonus

 

Annual
Revenue Signature Bonus is paid based on achieving the targeted next six (6) quarter
revenue signature of the current annual orders (“Revenue Signature”) at a
minimum threshold level defined below.

 

Annual
Revenue Signature Bonus is paid according to the following formula for
performance against the FY05 annual revenue target.

 

	
  % of FY05

  	
   

  	
  Percent of Annual

  	
   

  
	
  Annual Revenue Signature

  	
   

  	
  Target Bonus

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  < [*]%

  	
   

  	
  0.0%

  	
   

  
	
  [*]%

  	
   

  	
  [*]%

  	
   

  
	
  [*]%

  	
   

  	
  [*]%

  	
   

  
	
  [*]%

  	
   

  	
  [*]%

  	
   

  
	
  [*]%

  	
   

  	
  [*]%

  	
   

  
	
  [*]%

  	
   

  	
  [*]%

  	
   

  
	
  [*]%

  	
   

  	
  [*]%

  	
   

  
	
  [*]%

  	
   

  	
  [*]% + [*]%

  	
   

  
	
  every [*]% step

  	
   

  	
  [*]% + [*]% per step

  	
   

  

 

NOTES:

 

This
plan is subject to all provisions of the current “FY05 Synopsys Commission/Bonus
Policy” and the current “Synopsys Sales Order Acceptance Policy”.  All elements of this plan are subject to
change at any time during the year.

 

Plan
targets reflect those in place at this time. 
These targets may be revised as conditions require subject to the
approval of the President/COO.

 

This
plan is applicable only if the Sr. VP of Human Resources, the President/COO,
and the CEO approve.

 

SIGNATURES:

 

	
  /s/ Vicki L.
  Andrews

  	
  April 20, 2005

  	
   

  	
   

  	
  /s/ Aart de
  Geus

  	
  April 20, 2005

  
	
  Vicki L.
  Andrews

  	
  Date

  	
   

  	
   

  	
  Aart de
  Geus,

  	
  Date

  
	
  Sr. Vice
  President, Worldwide Sales

  	
   

  	
   

  	
  Chairman of
  Board & CEO

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Jan
  Collinson

  	
  April 20, 2005

  	
   

  	
   

  	
  /s/ Chi-Foon
  Chan

  	
  April 20, 2005

  
	
  Jan
  Collinson

  	
  Date

  	
   

  	
   

  	
  Chi-Foon
  Chan,

  	
  Date

  
	
  Sr. VP,
  Human Resources & Facilities

  	
   

  	
   

  	
  President &
  COO

  	
   

  

 

*    Represents
specific quantitative or qualitative performance-related factors, or factors or
criteria involving confidential commercial or business information, the
disclosure of which would have an adverse effect on the Registrant.

 

2

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