Document:

exv10w01

 

Exhibit 10.01

INTERWOVEN, INC.

2008 EXECUTIVE OFFICER INCENTIVE BONUS PLAN

          Interwoven, Inc. (the “Company”), a Delaware corporation, hereby establishes this 2008
Executive Officer Incentive Bonus Plan (the or this “Plan”) effective as of January 1, 2008, in
order to advance the interests of the Company and its stockholders by providing an incentive for
designated executive officers of the Company to achieve the Company’s total revenue and non-GAAP
operating income targets for the year ending December 31, 2008.

     1. DEFINITIONS AND CONSTRUCTION.

          1.1 Definitions. Whenever used herein, the following terms shall have their
respective meanings set forth below:

     1.1.1 “Actual Non-GAAP Operating Income” for any Bonus Period means the Company’s
operating income for such Bonus Period computed in accordance with generally accepted
accounting principles less the impact of amortization of intangible assets; stock-based
compensation charges; restructuring, excess facilities charges; costs associated with the
review of the Company’s historical stock option granting procedures and other non-recurring
items, net of the related tax impact. Actual Non-GAAP Operating Income is after accruing
for the Quarterly Bonus and Annual Bonus due Participants under the Plan. Other
non-recurring items to be excluded from operating income for purposes of computing actual
non-GAAP operating income are subject to the review and approval of the Compensation
Committee, subject to any limitations established by the Board of Directors.

     1.1.2 “Plan Operating Income Target” means the Non-GAAP operating income targets set
forth in the Company’s Annual Operating Plan.

     1.1.3 “Actual Revenues” for any Bonus Period means the Company’s total license,
support, service and training revenues for such Bonus Period as reported in the Company’s
Financial Statements.

     1.1.4 “Annual Bonus” means the cash bonus payable pursuant to Section 4.2.

     1.1.5 “Annual Operating Plan” means the Company’s confidential annual budget for the
year ended December 31, 2008 approved by the Company’s Board of Directors on or before the
date on which the Company’s Board of Directors approved this Plan.

     1.1.6 “Bonus Period” means, with respect to the Annual Bonus, the year ended December
31, 2008 and, with respect to any Quarterly Bonus, the calendar quarter of 2008 with respect
to which such Quarterly Bonus is to be calculated.

     1.1.7 “Committee” means the Compensation Committee of the Board of Directors of the
Company.

Interwoven Confidential

 

 

     1.1.8 “Financial Statements” means, with respect to the Annual Bonus, the Company’s
audited consolidated financial statements for the year ending December 31, 2008 as filed by
the Company with the Securities and Exchange Commission on Form 10-K and, with respect to
any Quarterly Bonus, the Company’s unaudited condensed consolidated financial statements for
the calendar quarter with respect to which such Quarterly Bonus is to be calculated, as
filed by the Company with the Securities and Exchange Commission on Form 10-Q in the case of
the calendar quarters ending March 31, 2008, June 30, 2008 and September 30, 2008 and as
filed by the Company with the Securities and Exchange Commission on Form 10-K in the case of
the calendar quarter ending December 31, 2008.

     1.1.9 “MBO” means those quarterly or annual objectives established by the Committee or
the Company’s Chief Executive Officer for the participant.

     1.1.10 “Participant” means an executive officer of the Company who has been designated
by the Committee as a Participant in the Plan.

     1.1.11 “Plan Revenue Target” means the revenue target set forth in the Company’s Annual
Operating Plan for the period corresponding to the applicable Bonus Period.

     1.1.12 “Quarterly Bonus” means the bonus that is due pursuant to Section 4.1.

     1.1.13 “Target Bonus” means the amounts set forth in Exhibit A hereto. The Target
Bonus may be divided into components. The Company Performance Target Bonus refers to the
amount of the Participant’s Target Bonus allocated to computations defined in Section 4 of
this Plan. The MBO Target Bonus refers to the amount of the Participant’s Target Bonus
allocated to the Participants’ MBO Target Bonus as defined in Section 5 of the Plan.

     2. ADMINISTRATION.

          The Plan shall be administered by the Committee. Subject to the general purposes, terms and
conditions of the Plan, the Committee shall have authority to implement and carry out the Plan
including authority to construe and interpret the Plan. All questions of interpretation or
construction of the Plan shall be determined by the Committee.

     3. ELIGIBILITY.

          A Participant shall be eligible for a Quarterly Bonus only if he or she was actively employed
by the Company throughout the entirety of the corresponding Bonus Period. A Participant shall be
eligible for a pro rated Annual Bonus (based on the full quarters that such Participant was
employed) only if he or she is actively employed by the Company for at least two full quarterly
Bonus Periods during 2008 and such Participant is employed by the Company on December 31, 2008.

Interwoven Confidential

2

 

     4. COMPANY PERFORMANCE BONUS AND PAYMENT.

          The portion of the Participant’s Target Bonus allocated to the Company Performance Bonus is
designated on Exhibit A to this Plan.

          4.1 Quarterly Bonus.

     4.1.1 Subject to the provisions of Section 4.4 below, each Participant who meets the
bonus eligibility requirements of Section 3 above shall receive a Quarterly Bonus for each
calendar quarter in 2008 equal to twenty percent (20%) of the Participant’s Company
Performance Target Bonus multiplied by the applicable bonus percentage determined under
Section 4.3 below.

     4.1.2 Each Quarterly Bonus shall be paid on the basis of results shown in the Company’s
press release announcing its financial results for such quarter, in cash, in a single lump
sum, subject to all applicable employment and income tax withholding, within thirty (30)
days after both of the following conditions have occurred: (a) the Company’s independent
registered public accounting firm has completed a review of the Company’s records for the
Bonus Period and have submitted a report thereon to the Audit Committee of the Company’s
Board of Directors, and (b) the Company has issued a press release announcing its financial
results for such quarter.

     4.1.3 In the event that the results set forth in the Financial Statements for a
quarterly Bonus Period are different than those that formed the basis for the calculation of
the Quarterly Bonus for such Bonus Period pursuant to Section 4.1.2 above, the amount of the
Quarterly Bonus for such Bonus Period shall be adjusted using the results set forth in the
Financial Statements for such Bonus Period and (a) each Participant shall be required to
return to the Company, on term acceptable to the Committee, any amount that has become an
over-payment as a result of the adjustment, net of applicable taxes, and (b) the Company
shall pay within thirty (30) days of determining any such adjustment, any amounts that ought
to have been made to each Participant.

     4.1.4 The maximum Quarterly Bonus payment for any such quarterly Bonus Period is
limited to 150% of the quarterly allocation of the Company Performance Target Bonus for each
Participant. To the extent that the Quarterly Bonus earned is greater than 150% (“Excess
Quarterly Bonus”), the amount due in excess of 150% will be deferred pending the
announcement of financial results for the full year. If the Annual Bonus is equal to or
greater than a 100% Annual Bonus pay-out (computed based on actual results without regards
to the 150% cap), the Excess Quarterly Bonus will be added to the Annual Bonus and paid with
the Annual Bonus in accordance with the provisions of Section 4.2. If the Annual Bonus is
computed to be less than a 100% pay-out (computed based on actual results without regards to
the 150% cap), the Excess Quarterly Bonus will be forfeited.

          4.2 Annual Bonus.

     4.2.1 Each Participant who meets the bonus eligibility requirements of Section 3 above
shall receive an Annual Bonus equal to twenty percent (20%) of the Participant’s
Company Performance Target Bonus multiplied by the applicable bonus percentage

Interwoven Confidential

3

 

determined under Section 4.3 below. The Annual Bonus will be the sum of the (Q1 Applicable
Bonus Percentage times 25%) plus (Q2 Applicable Bonus Percentage times 25%) plus (Q3
Applicable Bonus Percentage times 25%) plus (Q4 Applicable Bonus Percentage times 25%).

     4.2.2 Each Annual Bonus shall be paid upon the announcement in a press release of the
Company’s fourth quarter and annual financial results for the year ending December 31, 2008,
in cash, in a single lump sum, subject to all applicable employment and income tax
withholding, within thirty (30) days after both of the following have occurred: (a) the
Company’s independent registered public accounting firm has completed an audit of the
Company’s financial results for the year ending December 31, 2008 and have submitted a
report thereon to the Audit Committee of the Company’s Board of Directors, and (b) the
Company has issued a press release announcing its financial results for such year.

     4.2.3 In the event that the results set forth in the Financial Statements for the
annual Bonus Period are different than those that formed the basis for the calculation of an
Annual Bonus pursuant to 4.2.2 above, the amount of the Annual Bonus shall be adjusted using
the results set forth in the Financial Statements and (a) each Participant shall be required
to return to the Company, on terms acceptable to the Committee, any amount that has become
an over-payment as a result of the adjustment, and (b) the Company shall pay within thirty
(30) days of determining any such adjustment, any amounts that ought to have been made to
each Participant.

          4.3 Applicable Bonus Percentage. The applicable bonus percentage shall be calculated
as follows:

50% (Revenue Achievement Percentage) + 50% (Operating Income Achievement Percentage)

     4.3.1 The Revenue Achievement Percentage for any Bonus Period shall be a function of
the extent to which Actual Revenues for the period meet or exceed the Plan Revenue Target
for the period, determined as follows:

	 	 	 
	If Actual Revenues Are:	 	The Revenue Achievement Percentage Is:
	Less than 90% of the Plan Revenue Target

	 	 0%
	 
	 	 
	90% of the Plan Revenue Target

	 	 60%
	 
	 	 
	91% to 95% of the Plan Revenue Target

	 	60% plus 2% for each 1% by which
Actual Revenues exceed 90% of the
Plan Revenue Target.
	 
	 	 
	96% to 99% of the Plan Revenue Target

	 	70% plus 6% for each 1% by which
Actual Revenues exceed 95% of the
Plan Revenue Target.
	 
	 	 
	100% of the Plan Revenue Target

	 	 100%
	 
	 	 
	101% to 102% of the Plan Revenue Target

	 	100% plus 2% for each 1% by which
Actual Revenues exceed 100% of the
Plan Revenue Target.

Interwoven Confidential

4

 

	 	 	 
	If Actual Revenues Are:	 	The Revenue Achievement Percentage Is:
	103% to 106% of the Plan Revenue Target

	 	104% plus 4% for each 1% by which
Actual Revenues exceed 102% of the
Plan Revenue Target.
	 
	 	 
	Over 106% of the Plan Revenue Target

	 	120% plus 8% for each 1% by which
Actual Revenues exceed 106% of the
Plan Revenue Target. In no event
will the Revenue Achievement
Percentage exceed 200%.

     4.3.2 The Operating Income Achievement Percentage for any Bonus Period shall be a
function of the extent to which Actual Non-GAAP Operating Income for the period meet or
exceed the Plan Operating Income Target for the period, determined as follows:

	 	 	 
	 	 	The Operating Income Achievement
	If Actual Non-GAAP Operating Income is:	 	Percentage Is:
	Greater than $1 million below the Plan
Operating Income Target.

	 	 0%
	 
	 	 
	At $1 million below the Plan Operating
Income Target.

	 	 60%
	 
	 	 
	$900,000 to $500,000 below the Plan
Operating Income Target.

	 	60% plus 3% for each full $100,000
increment by which Actual Non-GAAP
Operating Income exceed $1 million
below the Plan Operating Income
Target.
	 
	 	 
	$400,000 below to the Plan Operating
Income Target.

	 	75% plus 5% for each full $100,000
increment by which Actual Non-GAAP
Operating Income exceed $500,000
below the Plan Operating Income
Target.
	 
	 	 
	At the Plan Operating Income Target.

	 	 100%
	 
	 	 
	At Plan Operating Income Target plus
each full increment of $100,000 in
excess of Plan Operating Income Target
up to $500,000 above plan.

	 	100% plus 2% for each $100,000
full increment by which Actual
Non-GAAP Operating Income exceed
100% the Plan Operating Income
Target.
	 
	 	 
	At $600,000 above Plan Operating
Income Target plus each full increment
of $100,000 in excess of Plan
Operating Income Target up to $900,000
above plan.

	 	110% plus 4% for each $100,000
full increment by which Actual
Non-GAAP Operating Income exceed
$500,000 above the Plan Operating
Income Target.
	 
	 	 
	At $1 million or greater above Plan
Operating Income Target plus each full
increment of $100,000 in excess of
Plan Operating Income Target.

	 	130% plus 8% for each $100,000
full increment by which Actual
Non-GAAP Operating Income exceed
$1 million above the Plan
Operating Income Target. In no
event will the Operating Income
Achievement Percentage exceed
200%.

     4.3.3 Percentages used in the computation of the Revenue Achievement Percentage and the
Operating Income Achievement Percentage shall be rounded to the nearest whole percentage.

Interwoven Confidential

5

 

          4.4 The Company’s Chief Executive Officer (“CEO”) may review each Participant’s performance
during the applicable Bonus Period and may recommend to the Committee increasing or decreasing the
Participant’s Quarterly Bonus or Annual Bonus. The determination of whether to make any
recommended adjustment shall be in the sole discretion of the Committee, subject to any limitations
established by the Board of Directors of the Company.

     5. MBO BONUS AND PAYMENT.

          The portion of the Participant’s Target Bonus allocated to the MBO Target Bonus is designated
on Exhibit A to this Plan. MBO’s may be established on a quarterly or annual basis. Either the
Company’s Chief Executive Officer or Chief Financial Officer is responsible for monitoring MBO’s
and reporting completed MBO’s to the Committee. Bonus amounts associated with MBO’s will generally
be paid with any Annual Bonus due under Section 4.2 above. If no Annual Bonus is due, the bonus
amount due under this Section will be paid no later than 45 days following December 31, 2008.

     6. AMENDMENT OF PLAN.

          The Plan may be modified or amended at any time by the Committee or the Company’s Board of
Directors without the consent of the Participants; provided, however, that an amendment that
increases any Plan Revenue Target or increases any Plan Operating Income Target may be effected
without the consent of the Participants only in conjunction with amendment of the Annual Operating
Plan by the Company’s Board of Directors to reflect business acquisitions or dispositions by the
Company.

     7. MISCELLANEOUS.

          7.1 No Assignment. The right of any Participant or any other person to the payment of
any benefits under this Plan shall not be assigned, transferred, pledged or encumbered.

          7.2 Successors. This Plan shall be binding upon and inure to the benefit of the
Company, its successors and assigns and the Participant and his or her heirs, executors,
administrators and legal representatives.

          7.3 No Employment Agreement. Nothing contained herein shall be construed as
conferring upon any Participant the right to continue in the employ of the Company as an employee.

          7.4 Arbitration. Any dispute or claim relating to or arising out of this Plan shall
be fully and finally resolved by binding arbitration conducted by the American Arbitration
Association in Santa Clara County, California.

          7.5 Governing Law. This Plan shall be construed in accordance with and governed by
the laws of the State of California.

          7.6 Entire Agreement. This Agreement constitutes the entire agreement between the
parties regarding the subject matter hereto and supercedes any prior or contemporaneous agreements,
whether oral or written regarding such subject matter.

Adopted by the Board of Directors upon the recommendation of its Compensation Committee, effective
as of January 1, 2008.

Interwoven Confidential

6

 

Exhibit A

Target Bonuses for 2008

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Company	 	 	 	 
	 	 	 	 	 	 	Performance	 	MBO	 	 
	 	 	Target	 	Target	 	Target	 	Commission
	Participant	 	Bonus	 	Bonus	 	Bonus	 	Plan
	Joseph L. Cowan*
	 	$	425,000	 	 	$	340,000	 	 	$	85,000	 	 	$	—	 
	John E. Calonico, Jr.
	 	$	167,750	 	 	$	134,200	 	 	$	33,550	 	 	$	—	 
	Scipio M. Carnecchia
	 	$	300,000	 	 	$	240,000	 	 	$	60,000	 	 	$	 	 
	Benjamin E. Kiker, Jr.
	 	$	130,000	 	 	$	104,000	 	 	$	26,000	 	 	$	—	 
	Steven J. Martello
	 	$	200,000	 	 	$	—	 	 	$	40,000	 	 	$	160,000	 
	Rafiq R. Mohammadi
	 	$	130,000	 	 	$	104,000	 	 	$	26,000	 	 	$	—	 
	David A. Nelson-Gal
	 	$	134,000	 	 	$	107,200	 	 	$	26,800	 	 	$	—	 

 

			
	*	 	Joseph Cowan increase to bonus effective 4-1-08 from $400,000 to $425,000

MBO’s to be paid out annually

Interwoven Confidential

8exv10w02

 

Interwoven Confidential

Exhibit 10.02

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED

FOR CERTAIN PORTIONS OF THIS DOCUMENT

2008 Compensation Plan

	 	 	 
	To:

	 	Steven J. Martello
	 

	 	Senior Vice President of Client Services

Effective dates:          January 1, 2008 to December 31, 2008

This document outlines your compensation package (“Compensation Plan”) for calendar
year 2008 including the at-risk components determined under the Sales Compensation
Plan below and the 2008 Executive Officer Bonus Plan. Compensation Plan details and
policies can be found in the Interwoven 2008 Sales Compensation Plan and 2008
Executive Officer Bonus Plan documents, which will be provided at your request.

All other terms and conditions of your employment are governed by your offer letter
and Interwoven policy.

In your role, you are responsible for Interwoven’s worldwide services organization.
Interwoven reserves the right to change your responsibilities from time to time and
modify your Compensation Plan to take into account its business needs.

COMPENSATION PACKAGE

Your Compensation Plan is comprised of a Base Salary and Incentive Pay, which is an
at-risk component of your overall compensation package. The Sales Compensation Plan
and the 2008 Executive Officer Bonus Plan outline the guidelines under which you will
be paid your Incentive Pay component.

Your on-target earnings for 2008 are $450,000.00. Your on-target earnings are
composed of the following:

	 	•	 	Annual Base salary of $250,000.00.
	 
	 	•	 	On target Incentive Pay of $200,000.00.

From your actual earnings, we will subtract payroll deductions, all required
withholdings and other voluntary deductions you authorize Interwoven to make on your
behalf.

BASE SALARY

Your annual Base Salary will be paid to you ratably over the year in accordance with
Interwoven’s standard payroll practices.

INCENTIVE PAY

Your Incentive Pay will be calculated under the following Incentive Pay plans. These
Incentive Pay plans do not guarantee you a level of income.

 

 

Interwoven Confidential

     Sales Compensation Plan

Of your on-target Incentive Pay, $120,000.00 will be related to commissions for
Professional Services Revenues (as defined below) and $40,000.00 will be related
to commissions for Software License Bookings (as defined below).

Commissions on revenue from maintenance, consulting and education services
(collectively “Professional Services Revenues”) will be paid at the rates stated
below and will be earned upon recognition of revenue for those services by
Interwoven in accordance with generally accepted accounting principles and
Interwoven’s revenue recognition policy. Professional Services Revenues exclude
subscription revenues from the Company’s Website optimization products and are
subject to reduction for any returns, realization adjustments or uncollectible
accounts.

Commissions on Software License Bookings will be paid at the rates stated below
and will be earned for the amount of license revenues recognizable in accordance
with Interwoven’s revenue recognition policy. If the recognition of revenue
extends beyond the end of the then current quarter, bookings credit will be
received in the quarter when the revenue is recognized. Such amounts are subject
to reduction for carve-outs, any returns, or uncollectible accounts. Software
License Bookings are more fully defined in the 2008 Sales Compensation Plan.

The following commission rates will be applied to Professional Services Revenues
for purposes of computing quarterly commissions due for 2008:

	 	 	 	 	 	 	 	 	 
	Quarterly
	 	Professional Services	 	License Bookings
	Quota
Attainment
	 	Commission Rates	 	Commission Rates
	Less than 96%
	 	 	[***]	%	 	 	[***]	%
	96% to 97%
	 	 	[***]	%	 	 	[***]	%
	98% to 99%
	 	 	[***]	%	 	 	[***]	%
	100%
	 	 	[***]	%	 	 	[***]	%
	101% to 103%
	 	 	[***]	%	 	 	[***]	%
	104% to 106%
	 	 	[***]	%	 	 	[***]	%
	107% to 110%
	 	 	[***]	%	 	 	[***]	%
	Greater than 110%
	 	 	[***]	%	 	 	[***]	%

All quota achievement percentages will be rounded to the next whole number (>=
0.5 will be rounded up and < 0.5 will be rounded down).

Additionally, the commission rates above for Professional Services Revenues will
be multiplied by the following adjustment factors based on the Direct Margin
Percentage of the combined Maintenance, Consulting and Education organizations
achieved in a quarterly period:

	 	 	 
	Direct	 	Adjustment
	Margin Percentage	 	Factor
	>3% below target 
	 	25%

	3% below target
	 	50%
	2% below target
	 	60%
	1% below target
	 	80%
	At target 
	 	100%
	1% above target
	 	110%
	2% above target
	 	125%
	3% above target
	 	150%
	4% above target
	 	175%

	>4% above target
	 	200%

 

 

Interwoven Confidential

Direct Margin Percentage is defined as recognized Professional Services Revenues
less the direct expenses to acquire and provide the maintenance, consulting and
educational services that generated such revenues.

Your quarterly quotas for Professional Services Revenues and Software License
Bookings for 2008 are set forth in the Annual Operating Plan, as defined below.
For purposes of this document, the “Annual Operating Plan” means the Company’s
confidential annual budget for the year ended December 31, 2008 approved by the
Company’s Board of Directors on or before the date on which the Company’s Board of
Directors approved this Compensation Plan.

Your Direct Margin Percentage targets for each of the four quarters in 2008 are
calculated by subtracting from your applicable quarterly quota for Professional
Services Revenues the direct expenses to acquire and provide the services that
were necessary to generate such revenues.

It is agreed and understood by you that this Compensation Plan may be modified or
amended at any time without your consent by the Company’s Board of Directors (or
the Compensation Committee thereof); provided, however, than an amendment that
increases your quarterly quotas for Professional Services Revenues or Software
License Bookings or increases your targets for Direct Margin Percentage under this
Compensation Plan may be effected without your consent only in conjunction with
amendment of the Annual Operating Plan by the Company’s Board of Directors to
reflect business acquisitions or dispositions by the Company.

2008 Executive Officer Bonus Plan

Of your on-target Incentive Pay, $40,000.00 will be related to amounts due under
the 2008 Executive Officer Incentive Bonus Plan and calculated in accordance with
that plan. Such amount may be allocated to MBO objectives.

Please acknowledge you acceptance with this Compensation Plan by signing below. Have a great
2008!

	 	 	 	 	 
	Read and accepted:

	 	Signed:	 	 
	 
	 	 	 	 
	/s/ Steven J. Martello

	 	/s/ Joseph L. Cowan	 	 
	 

Steven J. Martello

	 	 

Joseph L. Cowan
	 	 
	Senior Vice President of Client Services

	 	Chief Executive Officer	 	 
	Interwoven, Inc.

	 	Interwoven, Inc.	 	 

 

			
	***	 	Confidential treatment has been requested with respect to the information contained
within the “[***]” markings. Such marked portions have been omitted from this filing
and have been filed separately with the Securities and Exchange Commission.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]