Document:

ex-10.10

 

 

 
 

 April 1, 2014
 

 Mr. Christopher J. Meinerz
 2517 East Desert Willow Drive
 Phoenix, AZ  85048
 

 RE:      Offer of Employment
 

 Dear Christopher:
 

 On behalf of SPINDLE,INC.(the “ Company”), I am pleased to offer you the position of Chief Financial Officer and Chief Compliance Officer beginning on April1, 2014. The offer terms and conditions are as follows:
 

 You will be expected to perform various duties consistent with your position.  You will report to [William Clark, Chief Executive Officer].   The Company may change your position, duties, and work location from time to time as it deems necessary.
 

 Your employment with the Company will be “at-will,” which means that it will be for no specified term and your employment may be terminated by you or the Company at any time, with or without cause or notice.
 

 Your initial compensation will be at the annual rate of $180,000 less payroll deductions and all required withholdings.  You will  be  paid  semi-monthly  or  otherwise  as  required  by  applicable  State  law. 
 

 The Company acknowledges  and agrees that the initial compensation  is based upon this agreement  having a minimum term of three months and you will, at your discretion and as the Company's requirements for your services allow, continue to dedicate one day per work week in the physical office of your former employer until such services are no longer required by your former employer.  At such time that your services are no longer required by your former employer, your initial compensation will be increased to an annual rate of $200,000 less payroll deductions and all required withholdings.   You will provide no less than 30 days' notice of your change in status with your former employer.
 

 You will be entitled to participate in any employee benefit or group insurance plan that may from time-to­ time be  adopted  by  the  Company  that  is  generally  available  to  the  other  full-time  employees  of  the Company, subject to the terms and conditions of such benefits and plans. The Company reserves the right to amend, modify or cancel any employee benefit or insurance plan it offers at any time for any reason. The Company currently offers a PPO health insurance plan, which is currently provided by Blue Cross of AZ, as well as a dental and vision plan.
 

 

 
 

 

 You will earn Paid Time Off (“ PTO” ) at the rate of 15 days per year or 10 hours per month (5 hours per pay period), accruing  prospectively  from the date that you become employed  by the Company.  PTO may be used if you are sick, for any personal reason, or for vacation. PTO must be fully used each calendar year and will not rollover.
 

 Upon the commencement of your employment with the Company,  and at the next grant cycle, you will be eligible to receive a stock option grant of 90,000 options to purchase shares of the Company's  common stock. Such option grant shall be made in accordance with, and subject to the vesting terms and conditions of the Company's option plan.
 

 As a condition of employment, you will be required to sign and comply with the terms of the Spindle Inc. Confidentiality, Noncompete, Nonsolicit and Assignment Agreement (the “Agreement”), a copy of which accompanies this letter.
 

 This letter, together with the Agreement, forms the complete and exclusive statement of the terms of your employment  with the Company.  To the extent there is any conflict between the terms of this letter and any other Company  document  or policy, the terms  of this letter control.   The terms of this letter agreement cannot be modified, except in a writing signed by a Company officer.
 

 As required by law, this offer is subject to satisfactory proof of your right to work in the United States.  This Agreement will be binding upon your heirs. executors. administrators. and other legal representatives  and will be for the benefit of the Company, its successors, and its assigns.
 

 Please sign and date this letter, and return it to me by April 1, 2014, if you wish to accept employment  with the Company  under the terms described  above.   By signing and accepting this offer, you represent  that (i) you are not subject to any preexisting contractual or other legal obligation with any person, company or business enterprise which may impede your employment with, or your providing services to, the Company as its employee,  and (ii) you do not have, and will not bring onto Company premises, or use in the course of your employment  with the Company, any confidential or proprietary  information  of another  person, company or business enterprise to whom or to which you previously provided services.
 

 We look forward to your favorable reply and to a productive and enjoyable work relationship.   If you have any questions regarding this letter, please contact me at (480) 295-8059.
 

 Sincerely,
 

 Spindle, Inc.
 

 /s/ William Clark
 William Clark
 Chief Executive Officer, President and
 Director
 Accepted and Agreed:
 

 /s/ Christopher J. Meinerz
 Christopher J. Meinerz
 4/1/14
 Date
 

 
 

 

 CONFIDENTIALITY, NONCOMPETE, NONSOLICIT AND ASSIGNMENT AGREEMENT
 

 This Agreement is entered into as of April 1, 2014, (the “Effective Date”) by and between Spindle Inc. (the “Company”), and Christopher J. Meinerz (“Employee”).
 

 Employee  agrees as follows:
 

 1. 
 Confidentiality
 

 (a) 
 “Confidential Information” means proprietary and other confidential information that the Company  has or will develop, compile or own, or that the Company  receives from third parties under  conditions of confidentiality. The term is to be broadly interpreted and includes (i) information that has, or could have, commercial value for the business in which the Company or its customers are engaged, or in which they may engage at a later time, and (ii) information that, if disclosed without authorization, could be detrimental to the economic interests of the Company. Confidential information includes,  without limitation, any patent application, copyright, trademark, trade  name, service mark, service  name, “know-how,” negative “know-how,” trade secrets, customer and supplier identities, characteristics and terms of agreements, details of customer or consultant contracts, pricing policies, operational methods, marketing plans or strategies, product  development techniques or plans, business acquisitions plans,  science or technical information, ideas, discoveries, designs, computer programs (including some codes), financial forecasts, unpublished financial information, budgets, processes, procedures, formulae, improvements or other proprietary or intellectual property of the Company,  whether or not in written or tangible form, and whether or not registered, and including all memoranda, notes, summaries, plans,  reports, records, documents and other  evidence thereof. The term 'Confidential Information “does not include, and there shall be no obligation hereunder with respect to, information that becomes generally available to the public other  than as a result of an unauthorized disclosure  by Employee.
 

 (b)
 Employee  acknowledges that the information, observations and data obtained by him while employed  by the Company concerning the business and  affairs  of the Company are the property of the Company.  Therefore,  Employee agrees that, during and after  the term of employment, Employee will not, directly  or indirectly, in one or a series of transactions, disclose to any person, or use or otherwise exploit for Employee's own benefit or for the benefit of anyone other  than the Company, any Confidential Information; provided however that Confidential Information  may be disclosed to officers, representatives, employees and agents of the Company who need to know such  Confidential Information in order to perform the services or conduct  the operations required or expected of them  in the business. Employee shall use his best efforts to cause all persons or entities to whom any Confidential Information shall be disclosed by him hereunder to observe the terms and conditions set forth herein as though each person or entity were bound hereby.  Employee shall have no obligation hereunder to keep confidential any Confidential Information if and to the extent disclosure of any such information is specifically required by applicable law; provided, however, that in the event disclosure is required by applicable law, Employee shall provide the Company with prompt notice of such requirement, prior to making any disclosure, so that the Company may seek an appropriate protective order.  At the request of the Company, Employee agrees to deliver to the Company, at any time during the term of employment, or thereafter, all Confidential Information which he may possess or control.  Employee agrees that all Confidential Information of the Company (whether now or hereafter existing) conceived, discovered or made by him during the term  of employment exclusively belongs to the Company  and not to the Employee.   Employee will promptly disclose such Confidential Information to the Company and perform all actions reasonably requested by the Company  to establish and confirm such exclusive ownership.
 

 
 

 

 2. 
 Non-Competition
 

 (a)
 Employee acknowledges that in the course of his work for the Company,  he will become familiar with the Company's Confidential Information and that his services  will be of special,  unique  and extraordinary value to the Company.
 

 (b) 
 Employee  agrees that during his Employment with  the Company, and for either (i) a period of twelve months after  the termination of his employment with the Company or (ii) a period of time after  the termination of his employment with the Company equal to the duration of his employment with the Company if such duration is less than twelve months, he will not, except on behalf of the Company, perform  any work or services,  directly  or indirectly, with respect to any person  or entity, if such work or services is of any type performed  by Employee for the Company with respect  to the same such person  or entity, or any affiliate of the same  such person or entity, during the prior year.
 

 3.
 Non-Solicitation
 

 Employee agrees that while employed by the Company,  and for either (i) a period of twelve months  after  the termination of his employment with  the Company or (ii) a period of time after  the termination of his employment with the Company equal to the duration of his employment with the  Company if such duration is less than twelve months, he will not directly or indirectly, for himself or on behalf  of any other  person  or entity:
 

 (a) 
 solicit, seek to employ, or seek to retain the services of any person who is providing services  to Company  as an employee, independent contractor or consultant; or
 

 (b) 
 solicit, persuade, or induce  any person or entity who is or was a customer of Company to (1) refrain from being a customer of Company or (2) become a customer of another business in competition with  the Company.
 

 4. 
 Inventions, Discoveries   Employee acknowledges that any inventions, discoveries or trade secrets, whether patentable or not, made or found by Employee in the scope of his employment with the Company constitute property of the Company and that any rights  therein now held or hereafter acquired by Employee individually or in any capacity are hereby transferred and assigned to the Company, and agrees to execute and deliver any confirmatory  assignments, documents or instruments of any nature necessary to carry out the intent of this paragraph when requested by the Company without further compensation, whether or not Employee is at the time employed by the Company.
 

 5. 
 Equitable Remedies
 

 Employee  acknowledges  and  agrees  that performance  of Employee's covenants,  agreements, and other obligations,  as set forth  herein, are vital and  unique  to Company, and  that any breach  or default  would give rise  to significant  and  irreparable injury to Company for which money damages are an inadequate remedy.  Therefore, if any action or proceeding is instituted by or on behalf of Company to enforce any of the terms or provisions of this Agreement, Employee hereby waives the claim or defense thereto that Company has an adequate remedy at law or has not been, or is not being, irreparably injured thereby, and the same shall be enforceable by temporary or permanent injunction, restraining order, or decree of specific performance (without the requirement of any bond).
 

 

 
 

 

 Employee further agrees that in the event any such action is instituted by or on behalf of Company,  Employee  shall   be  responsible   for  all  damages   incurred  by  Company  in connection  with  such  breach  or  default,   including  the  reasonable fees  of  Company's attorneys and  their  support staff.    The  remedies  provided  in  this  Paragraph shall  be cumulative and  not exclusive, and in addition  to any other  remedies  that  Company  may have pursuant to this Agreement or applicable law.
 

 6. 
 Governing Law
 

 This Agreement shall be subject  to and governed by the laws of the State of Arizona without regard to conflicts of law principle
 

 

 	 	
	 Dated:  April 1, 2014
	 /s/ Christopher J. Meinerz

	  
	 SignatureFY2015ExecBonusPlan

EXHIBIT 10.1

Fiscal Year 2015 Executive Bonus Plan
1.PURPOSE OF PLAN
The purpose of this Vitesse Semiconductor Corporation Fiscal Year 2015 Executive Bonus Plan (this “Plan”) is to provide members of the executive staff (“Executive”) of Vitesse Semiconductor Corporation, a Delaware corporation, (the “Corporation”) with the opportunity to earn incentive bonuses based on (a) the executive’s achievement of designated personal performance goals during Fiscal Year 2015 and (b) the Corporation’s attainment of specific financial performance objectives for Fiscal Year 2015.
2.    DEFINITIONS 
		
	2.1
	“2015 Fiscal Year” means the fiscal year of the Corporation that began on October 1, 2014 and will end on September 30, 2015.

		
	2.2
	“Adjusted EBITDA” means net income before interest, expenses for taxes, depreciation, amortization, deferred stock compensation and non-recurring professional fees. The Administrator may, from time-to-time, make other exceptions to the definition as it deems appropriate with respect to unusual or non-recurring events such as balance sheet adjustments, mergers, acquisitions, and divestitures.

		
	2.3
	“Administrator” means the Compensation Committee of the Board of Directors of the Corporation.

		
	2.4
	“Base Salary” means a Participant’s Base Salary paid (or deferred) in the 2015 Fiscal Year. Base Salary does not include bonuses or any form of compensation other than salary.

		
	2.5
	“Eligible Person” is (a) any “officer” as that term is defined in Rule 16a-1(f) under the Securities Exchange Act of 1934 (except the President/Chief Executive Officer) or (b) any vice-president who is a member of the Corporation’s executive staff.

		
	2.6
	“Goals” means the individual personal performance goals established by the Corporation’s Chief Executive Officer for each Participant for the 2015 Fiscal Year.

		
	2.7
	“Participant” means an Eligible Person who has been designated by the Administrator as eligible to earn a Bonus for the 2015 Fiscal Year.

		
	2.8
	“Total Bonus” means the portion of a Participant’s Bonus, if any, that is based on both the Participant’s achievement of his/her Personal Goals and the Corporation’s level of Adjusted EBITDA for the 2015 Fiscal Year.

3.    PLAN ADMINISTRATION
		
	3.1
	Administration. This Plan shall be administered by and all awards under this Plan shall be authorized by the Administrator.

		
	3.2
	Powers of the Administrator. Subject to the express provisions of this Plan, the Administrator is authorized and empowered to do all things necessary or desirable in connection with the authorization of awards and the administration of this Plan, including, without limitation, the authority to:

(a)    determine the Eligible Persons and, from among the Eligible Persons, designate those who are Participants;
(b)    approve the Goals established by the Corporation’s Chief Executive Officer for each Participant;
(c)    determine and approve the amount of the actual Bonus for each Participant; and
(d)    construe and interpret this Plan and any agreements defining the rights and obligations of the Corporation and Participants under this Plan, further define the terms used in this Plan, and prescribe, amend and rescind rules and regulations relating to the administration of this Plan or the Bonus payments under this Plan.
		
	3.3
	Binding Determinations. Any action taken by, or inaction of, the Corporation, the Corporation’s Chief Executive Officer, or the Administrator relating or pursuant to this Plan and within its or his authority hereunder or under applicable law shall be within the absolute discretion of that entity, person or body and shall be conclusive and binding upon all persons. Neither the Corporation’s Chief Executive Officer, the Administrator, nor any person acting at the direction thereof, shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with this Plan (or any award made under this Plan), and all such persons shall be entitled to indemnification and reimbursement by the Corporation in respect of any claim, loss, damage or expense (including, without limitation, attorneys’ fees) arising or resulting therefrom to the fullest extent permitted by law and/or under any directors and officers liability insurance coverage that may be in effect from time to time.

		
	3.4
	Reliance on Experts. In making any determination or in taking or not taking any action under this Plan, the Administrator may obtain and may rely upon the advice of experts, including employees and professional advisors to the Corporation. No director, officer or agent of the Corporation shall be liable for any such action or determination taken or made or omitted in good faith.

		
	3.5
	Delegation. The Administrator may delegate ministerial, non-discretionary functions to individuals who are officers or employees of the Corporation or to third parties.

2

4.    ELIGIBILITY
The Administrator may grant Bonus opportunities under this Plan only to those persons that the Administrator determines to be Eligible Persons. The Administrator shall notify each Participant of his/her eligibility to earn a Bonus under this Plan by the later of December 31, 2014 or the 45th day following the date that the Participant becomes an Eligible Person. Such notice shall be in writing and shall include a description of the Participant’s Goals.
5.    BONUS CALCULATIONS
		
	5.1
	Goals 

		
	5.1.1
	Establishment. The Corporation’s Chief Executive Officer shall establish Goals for each Participant by the later of December 31, 2014 or the 45th day following the date the Participant becomes an Eligible Person.

		
	5.1.2
	Adjustment. To preserve the intended incentives and benefits of a Goal Bonus opportunity, the Chief Executive Officer may (i) adjust the Goals to reflect any material change in corporate capitalization, any material corporate transaction (such as a reorganization, combination, separation, merger, acquisition or any combination of the foregoing), or any complete or partial liquidation of the Corporation or (ii) make other appropriate adjustments to the Goals.

		
	5.1.3
	Determination of Achievement of Goals. The Corporation’s Chief Executive Officer shall, in his sole discretion, determine the extent to which each Participant has attained the Goals established for such Participant for the 2015 Fiscal Year, which shall be expressed as a whole percentage from 0% to 100%. The Chief Executive Officer shall make that determination within 90 days following the end of the 2015 Fiscal Year and notify the Administrator and the Participant of that determination as soon thereafter as practicable.

		
	5.2
	Total Bonus 

Each Participant’s Total Bonus, if any, shall be an amount equal to (a) times (b) times (c), where (a) equals the Participant’s Base Salary, (b) equals the percentage of Total Bonus with 100% of Goals Achieved for the respective Adjusted EBITDA and (c) equals the percentage of the Participant’s achievement of his/her Goals; provided, however, that such Total Bonus shall be prorated for any Participant who is first employed by the Corporation after October 1, 2014, to reflect the portion of the 2015 Fiscal Year during which he/she was a Participant.
The formula can also be stated as:

(Base Salary) X (% of Total Bonus with 100% of Goals Achieved for the respective Adjusted EBITDA) X (% of Goals Attained), as described in Table 1 below.
An additional bonus will be paid to the VP of Sales only as:

(Base Salary) X (% of Revenue Bonus Goals Achieved + % of Design Win Bonus Goals Achieved), as described in Table 2 below.

3

6.    VESTING
		
	6.1
	Vesting. A Participant’s right to receive a Bonus under this Plan shall vest on September 30, 2015, subject to the employment and performance requirements set forth in this Section 6 (and subject to the levels of (a) the Participant’s achievement of Goals and (b) the Company’s Adjusted EBITDA).

		
	6.2
	Continued Employment Required. A Participant must continue to be employed by the Corporation without performance deficiencies (as described in Section 6.5) until September 30, 2015 as a condition to vesting in the right to receive a Bonus payment under this Plan. Employment for only a portion of the vesting period, even if a substantial portion, will not entitle the Eligible Person to any proportionate vesting. An approved leave of absence by a Participant, either at the time of the vesting date, or at any time during the vesting period, will not prevent vesting of payments under the Plan.

		
	6.3
	Effect of Termination Prior to Vesting. If a Participant’s employment with the Corporation terminates before September 30, 2015 for reason that is not governed by a Change in Control or employment agreement, his/her participation in the Plan will terminate immediately and he/he shall not be eligible for a Bonus.

		
	6.4
	Events Not Deemed Terminations of Service. Unless the express policy of the Corporation or the Administrator otherwise provides, the employment relationship shall not be considered terminated in the case of (a) sick leave, (b) military leave, or (c) any other leave of absence authorized by the Corporation or the Administrator; provided that, unless re-employment upon the expiration of such leave is guaranteed by contract or law or the Administrator otherwise provides, such leave is for a period of not more than three months.

		
	6.5
	Effect of Performance Deficiencies. A Participant’s right to receive a Bonus will not become vested if, (a) at the close of the 2015 Fiscal Year, the Participant is on a Corrective Action Plan, or (b) during the 2015 Fiscal Year, the Participant is otherwise notified that his/her job performance is deficient and he/she has failed to correct the deficiencies by the end of the 2015 Fiscal Year.

7.    TIME OF BONUS PAYMENTS
Each Participant’s Bonus, if any, shall be paid by the end of the first quarter of Fiscal Year 2015, or as soon as practicable after determination and certification of the actual financial performance levels for the year and grant of approval by the Compensation Committee in a duly held meeting, but, in no event, later than March 15, 2016.
8.    OTHER PROVISIONS
		
	8.1
	Compliance with Laws. This Plan, the granting and vesting of awards under this Plan, and the payment of money under this Plan are subject to compliance with all applicable federal and state laws, rules and regulations (including, but not limited to, state and federal securities law) and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Corporation, be necessary or advisable in connection therewith.

		
	8.2
	No Rights to Awards. No person shall have any claim or rights to be granted awards (or additional awards, as the case may be) under this Plan, subject to any express contractual rights (set forth in a document other than this Plan) to the contrary.

4

		
	8.3
	No Employment/Service Contract. Nothing contained in this Plan (or in any other documents under this Plan) shall confer upon any Eligible Person or Participant any right to continue in the employ or other service of the Corporation, constitute any contract or agreement of employment or other service or affect an employee’s status as an employee at will, nor shall interfere in any way with the right of the Corporation to change a person’s compensation or other benefits, or to terminate his/her employment or other service, with or without cause. Nothing in this Section 8.3, however, is intended to adversely affect any express independent right of such person under a separate employment or service contract.

		
	8.4
	Plan Not Funded. Awards payable under this Plan shall be payable from the general assets of the Corporation and no special or separate reserve, fund or deposit shall be made to assure payment of such awards. No Participant, beneficiary or other person shall have any right, title or interest in any fund or in any specific asset of the Corporation by reason of any award hereunder. Neither the provisions of this Plan (or of any related documents), nor the creation or adoption of this Plan, nor any action taken pursuant to the provisions of this Plan shall create, or be construed to create, a trust of any kind or a fiduciary relationship between the Corporation and any Participant, beneficiary or other person. To the extent that a Participant, beneficiary or other person acquires a right to receive payment pursuant to any award hereunder, such right shall be no greater than the right of any unsecured general creditor of the Corporation.

		
	8.5
	Tax Withholding. Upon any payment of any award, the Corporation shall deduct from any amount otherwise payable in cash to the Participant (or the Participant’s personal representative or beneficiary, as the case may be) the minimum amount of any taxes which the Corporation may be required to withhold with respect to such cash payment.

		
	8.6
	Effective Date, Term, Amendments.

		
	8.6.1
	Effective Date and Term. This Plan is effective as of October 7, 2014, the date of its approval by the Compensation Committee of the Board of Directors of the Corporation (the “Effective Date”) and shall be effective for the 2015 Fiscal Year. The Plan shall automatically terminate upon the payment of the Bonuses due hereunder or, if no Bonuses are payable hereunder, as of September 30, 2015.

		
	8.6.2
	Board Authorization. The Administrator may, at any time, amend this Plan; provided that no amendment shall adversely affect any Participant’s opportunity to earn a Bonus for the 2015 Fiscal Year. 

		
	8.7
	Governing Law; Construction; Severability.

		
	8.7.1
	Choice of Law. This Plan and all other related documents shall be governed by, and construed in accordance with the laws of the State of Delaware.

		
	8.7.2
	Severability. If a court of competent jurisdiction holds any provision invalid and unenforceable, the remaining provisions of this Plan shall continue in effect.

		
	8.8
	Captions. Captions and headings are given to the sections and subsections of this Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of this Plan or any provision thereof.    

5

		
	8.9
	Non-Exclusivity of Plan. Nothing in this Plan shall limit or be deemed to limit the authority of the Board or the Administrator to grant any award or authorize any other compensation, under any other plan or authority. Awards under this Plan may be made in addition to, in combination with, as alternatives to or in payment of grants, awards or commitments under any other plans or arrangements of the Corporation.

		
	8.10
	No Corporate Action Restriction. The existence of this Plan shall not limit, affect or restrict in any way the right or power of the Board or the stockholders of the Corporation to make or authorize (a) any adjustment, recapitalization, reorganization or other change in the capital structure or business of the Corporation, (b) any merger, amalgamation, consolidation or change in the ownership of the Corporation, (c) any issue of bonds, debentures, capital, preferred or prior preference stock ahead of or affecting the capital stock (or the rights thereof) of the Corporation, (d) any dissolution or liquidation of the Corporation, (e) any sale or transfer of all or any part of the assets or business of the Corporation, or (f) any other corporate act or proceeding by the Corporation. No Participant, beneficiary or any other person shall have any claim under any grant of a Bonus opportunity against any member of the Board or the Administrator, or the Corporation or any employees, officers or agents of the Corporation, as a result of any such action.

6

INWITNESS WHEREOF, this Plan is executed by its duly authorized officer as of October 7, 2014.
VITESSE SEMICONDUCTOR CORPORATION

	
		
	By
	/s/ Christopher R. Gardner

	Name
	Christopher R. Gardner

	Title
	President / CEO

7

EXHIBIT A

		
	Table 1:
	Incentive Bonus Calculations based on Adjusted EBITDA and

Assuming All Goals Are Achieved (as Percent of Base Salary)

	
				
	

Adjusted
EBITDA Achieved in FY2015
	Total
Bonus with
100% of
Goals
Achieved

(CFO)
	Total
Bonus with
100% of
Goals
Achieved

(Other VPs)
	 

	<=$[l]1
	45.0%
	35.0%
	 

	>$[lto $[l]
	50.0%
	40.0%
	 

	>$[l] to $[l]
	55.0%
	45.0%
	Target Bonus

	>$[l] to $[l]
	57.5%
	47.5%
	 

	>$[l] to $[l]
	60.0%
	50.0%
	 

	>$[l] to $[l]
	62.5%
	52.5%
	 

	> $[l]
	65.0%
	55.0%
	Maximum Bonus

		
	Table 2:
	Sales Incentive Bonus Calculations (as Percent of Base Salary)

Additional bonus that applies to VP of Sales ONLY

	
					
	

Product Revenue Achieved in FY2015
	

Revenue Bonus
	New Product Design Wins Achieved in FY2015
	

Design Win Bonus
	 

	<$[l]
	[l]%
	<$[l]
	[l]%
	Below Minimum

	$[l] to <$[l]
	[l]%
	$[l] – <$[l]
	[l]%
	Minimum Bonus

	>$[l] to $[l]
	[l]%
	$[l] – <$[l]
	[l]%
	Target Bonus

	>$[l] to $[l]
	[l]%
	$[l] – $[l]
	[l]%
	 

	>$[l]
	[l]%
	>$[l]
	[l]%
	Maximum Bonus

 __________________________________________________
1 Terms represented by this symbol are considered confidential.  These confidential terms have been omitted pursuant to a Confidential Treatment Request filed with the Securities and Exchange Commission (“SEC”) and have been filed separately with the SEC.

8

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