Document:

exv10w1

 

EXHIBIT 10.1

DELL COMPUTER CORPORATION

EXECUTIVE INCENTIVE BONUS PLAN

Dell Computer Corporation, a Delaware corporation (the “Company”) adopts this
Executive Incentive Bonus Plan (the “Plan”) for the purpose enhancing the
Company’s ability to attract and retain highly qualified executives and to
provide additional financial incentives to such executives to promote the
success of the Company and its subsidiaries.

Remuneration payable under the Plan is intended to constitute “qualified
performance-based compensation” for purposes of Section 162(m) of the Internal
Revenue Code of 1986, as amended, and Section 1.162-27 of the Treasury
Regulations promulgated thereunder, and the Plan shall be construed
consistently with such intention. The “performance goal” necessary for the
payment of remuneration under the Plan will be the achievement of positive
Consolidated Net Income (as defined below).

	1.
	 	Definitions — As used herein, the following terms shall have the
respective meanings indicated:

	 	(a)
	 	“Board” shall mean the Board of Directors of the Company.

	 	(b)
	 	“Code” shall mean the Internal Revenue Code of 1986, as
amended, or the corresponding provisions of any subsequent federal
internal revenue law.

	 	(c)
	 	“Committee” shall mean the Compensation Committee of the
Board or such other committee appointed by the Board to administer
the Plan; provided, however, that in any event the Committee shall
be comprised of not less than two directors of the Company, each of
whom shall qualify in all respects as an “outside director” for
purposes of Section 162(m) of the Code and Section 1.162-27(e)(3) of
the Regulations.

	 	(d)
	 	“Company” shall mean Dell Computer Corporation, a Delaware
corporation.

	 	(e)
	 	“Consolidated Net Income” shall mean, for any fiscal quarter
or fiscal year, the net income before extraordinary items reported
in the Company’s quarterly or annual consolidated statement of
income included in the applicable Quarterly Report on Form 10-Q (in
the case of a fiscal quarter) or Annual Report on Form 10-K (in the
case of a fiscal year), as filed with the Securities Exchange
Commission pursuant to the Securities Exchange Act of 1934, as
amended.

	 	(f)
	 	“Eligible Executive” shall mean the Company’s Chief Executive
Officer and each other executive officer of the Company that the
Committee determines, in its discretion, is or may be a “covered
employee” of the Company within the meaning Section 162(m) of the
Code and Section 1.162-27(c)(2) of the Regulations.

	 	(g)
	 	“Incentive Bonus” shall mean, for each Eligible Executive, an
annual bonus opportunity amount determined by the Committee pursuant
to Section 3 below.

 

 

	 	(h)
	 	“Regulations” shall mean the Treasury Regulations promulgated
under the Code, as amended from time to time.

	2.
	 	Administration of the Plan — The Plan shall be administered by the
Committee, which shall have full power and authority to construe,
interpret and administer the Plan and shall have the exclusive right to
establish, adjust, pay or decline to pay the Incentive Bonus for each
Eligible Executive. Such power and authority shall include the right to
exercise discretion to reduce by any amount the Incentive Bonus payable to
any Eligible Executive; provided, however, that the exercise of such
discretion with respect to any Eligible Executive shall not have the
effect of increasing the Incentive Bonus that is payable to any other
Eligible Executive. All Committee actions under the Plan shall be taken
in accordance with the applicable provisions of the Company’s By-laws and
the Committee’s Charter.

	3.
	 	Eligibility — Eligibility under this Plan is limited to Eligible
Executives designated by the Committee in its sole and absolute
discretion.

	4.
	 	Awards —

	 	(a)
	 	Not later than the 90th day of each fiscal year of the
Company, the Committee, in its sole and absolute discretion, shall
designate one or more Eligible Executives as participants in the
Plan for such fiscal year and shall specify the terms and conditions
for the determination and payment of an Incentive Bonus to each such
Eligible Executive for such fiscal year. After the end of such
90-day period, the Committee may designate additional Eligible
Executives so long as, within 30 days following each such additional
designation, the Committee specifies the terms and conditions for
the determination and payment of an Incentive Bonus to such
additional Eligible Executive.

	 	(b)
	 	The Committee may condition the payment of an Incentive Bonus
upon the satisfaction of such objective or subjective standards as
the Committee shall determine to be appropriate, in its sole and
absolute discretion, and shall retain the discretion to reduce the
amount of any Incentive Bonus that would otherwise be payable to an
Eligible Executive (including a reduction in such amount to zero).

	 	(c)
	 	The Incentive Bonus payable to an Eligible Executive with
respect to any fiscal year shall not exceed 0.5% of the Consolidated
Net Income for such fiscal year; provided, however, that the maximum
Incentive Bonus payable to any individual who becomes an Eligible
Executive after the end of the 90-day period referred to in
subsection (a) of this Section shall be 0.5% of the Consolidated Net
Income for the fiscal quarters after the fiscal quarter in which
such individual became an Eligible Executive.

	5.
	 	Committee Certification — As soon as reasonably practicable after the end
of each fiscal year of the Company, the Committee shall determine whether
the stated performance goal as been achieved and the amount of the
Incentive Bonus to be paid to each Eligible Executive for such fiscal year
and shall certify such determinations in writing.

	6.
	 	Payment of Incentive Bonuses — Subject to any election duly and validly
made by an Eligible Executive with respect to the deferral or all or a
portion of his or her Incentive Bonus or the payment of all or a portion
of his or her Incentive Bonus in

2

 

	 
	 	some form other than cash, Incentive
Bonuses shall be paid in cash at such times and on such terms as are
determined by the Committee in its sole and absolute discretion.

	7.
	 	No Right to Bonus or Continued Employment — Neither the establishment of
the Plan, the provision for or payment of any amounts hereunder nor any
action of the Company, the Board or the Committee with respect to the Plan
shall be held or construed to confer upon any person (a) any legal right
to receive, or any interest in, an Incentive Bonus or any other benefit
under the Plan or (b) any legal right to continue to serve as an officer
or employee of the Company or any subsidiary or affiliate of the Company.
The Company expressly reserves any and all rights to discharge any
Eligible Executive without incurring liability to any person under the
Plan or otherwise. Notwithstanding any other provision hereof and
notwithstanding the fact that the stated performance goal has been
achieved or the individual Incentive Bonus amounts have been determined,
the Company shall have no obligation to pay any Incentive Bonus hereunder
unless the Committee otherwise expressly provides by written contract or
other written commitment.

	8.
	 	Withholding — The Company shall have the right to withhold, or require an
Eligible Executive to remit to the Company, an amount sufficient to
satisfy any applicable federal, state, local or foreign withholding tax
requirements imposed with respect to the payment of any Incentive Bonus.

	9.
	 	Nontransferability — Except as expressly provided by the Committee, the
rights and benefits under the Plan are personal to an Eligible Executive
and shall not be subject to any voluntary or involuntary alienation,
assignment, pledge, transfer or other disposition.

	10.
	 	Unfunded Plan — The Company shall have no obligation to reserve or
otherwise fund in advance any amounts that are or may in the future become
payable under the Plan. Any funds that the Company, acting in its sole
and absolute discretion, determines to reserve for future payments under
the Plan may be commingled with other funds of the Company and need not in
any way be segregated from other assets or funds held by the Company. An
Eligible Executive’s rights to payment under the Plan shall be limited to
those of a general creditor of the Company.

	11.
	 	Adoption, Amendment, Suspension and Termination of the Plan —

	 	(a)
	 	Subject to the approval of the Plan by the holders of a
majority of the Company common stock represented and voting on the
proposal at the annual meeting of Company stockholders to be held on
July 18, 2003 (or any adjournment thereof), the Plan shall be
effective for the fiscal year of the Company commencing February 1,
2003 and shall continue in effect until the fifth anniversary of the
date of such stockholder approval, unless earlier terminated as
provided below. Upon such approval of the Plan by the Company’s
stockholders, all Incentive Bonuses awarded under the Plan on or
after February 1, 2003 shall be fully effective as if the
stockholders had approved the Plan on or before February 1, 2003.

	 	(b)
	 	Subject to the limitations set forth in this subsection, the
Board may at any time suspend or terminate the Plan and may amend it
from time to time in such respects as the Board may deem advisable;
provided, however, that the Board shall not amend the Plan in any of
the following respects without the

3

 

	 	
	 	approval of stockholders then
sufficient to approve the Plan in the first instance:

	 	(1)
	 	To increase the maximum amount of Incentive Bonus
that may be paid under the Plan or otherwise materially
increase the benefits accruing to any Eligible Executive under
the Plan;

	 	(2)
	 	To materially modify the requirements as to
eligibility for participation in the Plan; or

	 	(3)
	 	To change the material terms of the stated
performance goal.

	 	(c)
	 	No Incentive Bonus may be awarded during any suspension or
after termination of the Plan, and no amendment, suspension or
termination of the Plan shall, without the consent of the person
affected thereby, alter or impair any rights or obligations under
any Incentive Bonus previously awarded under the Plan.

	12.
	 	Governing Law — The validity, interpretation and effect of the Plan, and
the rights of all persons hereunder, shall be governed by and determined
in accordance with the laws of the State of Delaware, other than the
choice of law rules thereof.

* * * * *

The foregoing Executive Incentive Bonus Plan was duly approved and adopted by
the Board of Directors of Dell Computer Corporation, a Delaware corporation, at
a meeting thereof duly called and held on March 6, 2003, and is to be submitted
to the Company’s stockholders for approval at the annual meeting of
stockholders to be held on July 18, 2003.

	 	 	 
	 	 	 
	 	 	
/s/ THOMAS B. GREEN
	 	 	

	 	 	
Thomas B. Green,

Secretary

4<PAGE>

                                                                    EXHIBIT 10.1

                              SEPARATION AGREEMENT

         This Separation Agreement ("Agreement") is made and entered into this
30th day of June, 2003 by and between John Ryan ("Employee") and ValueVision
Media, Inc., a Minnesota corporation ("Company").

         In consideration of the terms and conditions set forth below, Company
and Employee agree as follows.

                                    AGREEMENT

         1. Resignation as Officer of the Company. Employee hereby resigns as an
officer of the Company as of the date hereof, and shall no longer have the
duties or responsibilities of an active executive for the Company, but shall
continue as an inactive employee and as a consultant to the Company through
August 7, 2004 (the period from the date hereof through August 7, 2004 is the
"Term" for purposes of this Agreement).

         2. Benefits and Payments. Company will extend to Employee the following
consideration:

         a.       Separation Pay and Benefits; Continuing Services. Employee
                  shall remain on the Company payroll and continue to receive
                  the annual base salary of $300,000 (the "Base Salary") and
                  Employee's monthly Auto Allowance, through the end of the
                  Term, less applicable federal and state withholdings. In
                  addition, Company shall continue to provide Employee with the
                  employee benefits as previously provided to Employee
                  ("Benefits") through the end of the Term, and shall pay to
                  Employee any Bonus Salary to which he may be entitled.
                  Promptly following the signature by Employee of this
                  Agreement, Company will pay in a lump sum all accrued and
                  unpaid vacation time to which Employee is entitled, less
                  applicable federal and state withholdings. Employee will not
                  accrue any additional vacation time from or after the date
                  hereof. Employee will promptly submit the expense forms and
                  documentation for any unpaid business expenses, and these will
                  be promptly processed and reimbursed to Employee consistent
                  with Company policies.

         b.       COBRA Insurance Coverage. If Employee elects any insurance
                  coverage under COBRA following the Term, then Employee shall
                  be responsible for all amounts due for such insurance
                  coverages under COBRA.

         c.       No Other Remuneration. Employee agrees that he is not entitled
                  to any remuneration from the Company except as provided in
                  this Agreement. This includes back pay, sick pay, vacation and
                  holiday pay, bonuses or any other compensation.

         d.       Stock Options and Restricted Stock. Stock option grants and
                  restricted stock grants to Employee which have not yet vested
                  as of the date of this Separation Agreement will vest
                  according to their terms during the Term; and any stock
                  options and restricted stock grants which have not vested as
                  of the day prior to the last day of the Term shall be
                  accelerated and vest as of such date. Pursuant to the
                  provisions of the stock option agreements with Employee,
                  Employee will have a period of ninety (90) days from the last
                  day of the Term in which to exercise any options which have
                  vested prior to or as of

                                       1
<PAGE>

                  such date, and following such 90th day, any remaining
                  unexercised stock options held by Employee shall be null and
                  void.

         3. Non-Disparagement. Employee will not disparage Company, its
affiliated businesses, or its officers, board members, or employees. The Company
will not issue or release any public statements that are disparaging of
Employee, and the senior executives of the Company will not disparage Employee.

         4. Employment Agreement; Continuing Obligations of Employee. Employee
understands and agrees that he continues to be subject to the provisions of
Section 7 (Confidential Information), Section 8 (Inventions and Patents) and
Section 9 (Noncompete and Related Agreements) of the Employment Agreement, dated
August 7, 2001, between Employee and the Company following the date of this
Separation Agreement; provided, however, that Company agrees that the noncompete
obligations of Employee shall end on the last day of the Term; and provided,
further, that the clause "Restricted Business" in Section 9 (Noncompete and
Related Agreements) shall only refer to QVC, the Home Shopping Network (HSN),
and the Shop At Home network. Except for the provisions noted above, the
Employment Agreement shall be terminated and have no further force and effect
upon the execution of this Separation Agreement by the parties.

         5. Records, Documents and Property. Employee hereby agrees and
covenants that he has returned or will return all of Company's property,
records, correspondence, and documents in Employee's possession.

         6. [Reserved].

         7. Non-Admission. Nothing in this agreement is intended to be, nor will
be deemed to be, an admission of liability by Company or Employee that they have
violated any state or federal statute, local ordinance, or principal of common
law, or that Company or Employee has engaged in any wrongdoing.

         8. Mutual Release. (a) In consideration of the payments and other
benefits of this agreement, the Company and Employee hereby fully and finally
mutually release, waive, and otherwise relinquish any and all claims that they
have against one another through the date of this Agreement. The Company and
Employee will not bring any lawsuits or make any other demands against one
another, except as necessary to enforce this Agreement. The payments or other
benefits that the Company and Employee will receive under this Agreement are
full and fair consideration for the release of such claims. Company and Employee
do not owe anything other than what is set forth in this Agreement.

         For purposes of this section, Company means ValueVision Media, Inc. and
any company related to it in the past or present, and each of them; and past or
present officers, directors, agents and employees of Company and any other
person who acted on behalf of Company or on instructions from Company.

         The claims that Employee is releasing, waiving, and otherwise
relinquishing hereunder include all of the rights he has now to any relief of
any kind from Company, including but not limited to, claims for breach of
contract; breach of fiduciary duty; fraud or misrepresentation; discrimination
claims under the Age Discrimination in Employment Act ("ADEA"), the Minnesota
Human Rights Act ("MHRA"), the Americans with Disabilities Act, or any other
federal, state, or local civil rights laws; defamation;

                                       2
<PAGE>

infliction of emotional distress; unlawful or wrongful termination of
employment; and any other claims for unlawful employment practices.

         9. Rights Concerning Release. Employer hereby advises Employee to
consult with an attorney prior to signing this Agreement containing a waiver of
claims under the ADEA or the MHRA.

         Employee has been advised to retain counsel of his choice before
signing this Agreement releasing any rights or claims he believes he may have
under the ADEA. Employee has 21 calendar days to consider this release,
beginning on the date hereof, unless earlier waived by Employee. If Employee
signs this Agreement, he is entitled to revoke his release of any rights or
claims under the ADEA within 7 calendar days after executing it, and it shall
not become effective or enforceable until this 7-day period has expired.

         Employee understands that he has the right to rescind his release of
discrimination rights and claims under the MHRA within fifteen (15) calendar
days of the date upon which he signs this agreement. He understands that, if he
desires to do so, he must put the rescission in writing and deliver it to
Company, in care of Nathan Fagre, Esq., ValueVision Media, Inc., 6740 Shady Oak
Road, Eden Prairie, MN 55344, by hand or mail within fifteen (15) calendar days
of the date of execution of this Agreement. If he delivers the rescission by
mail, it must be:

                  a.       postmarked within fifteen (15) calendar days of the
                           day on which he signs this agreement;

                  b.       addressed to Nathan Fagre, Esq. at the above address;
                           and

                  c.       sent by certified mail, return receipt requested.

         10. Entire Agreement. This agreement and the employee benefits plans
and stock option agreements and restricted stock agreements in which Employee
may be a participant, constitute the entire agreement between the parties with
respect to the termination of Employee's employment relationship with Company at
the end of the Term, and the parties agree that there were no other inducements
or representations leading to the negotiation, drafting, and execution of this
Agreement. Employee and Company acknowledges that they have read and understand,
and voluntarily enter into, this Agreement.

         11. Invalidity. In case any one or more of the provisions of this
agreement should be invalid, illegal, or unenforceable in any respect, the
validity, legality, and enforceability of the remaining provisions contained in
this agreement will not in any way be affected or impaired.

         12. Heirs and Successors. This agreement shall inure to the benefit of
and shall bind the parties, their heirs, successors, representatives, and
assigns.

         13. Governing Law. This agreement shall be construed and interpreted in
accordance with the laws of the state of Minnesota.

                                       3
<PAGE>

         14. Counterparts. This agreement may be executed simultaneously in two
or more counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same instrument.

         15. Consultation Services. Employee agrees that, during the period from
the date hereof until August 7, 2004, the Company may from time to time seek his
advice or consult with him, at reasonable times mutually agreed by the parties,
with respect to matters that Employee handled or issues with which Employee has
particular knowledge or expertise.

         IN WITNESS WHEREOF, the parties have caused this Agreement to be signed
on the day and year first above written.

                                    VALUEVISION MEDIA, INC.,

                                    By:      /s/ W. Stann Leff
                                       ----------------------------------
                                             W. Stann Leff

                                    EMPLOYEE

                                    By:      John Ryan
                                       ----------------------------------
                                             John Ryan

                                       4

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