Document:

2010 Executive Incentive Program Overview

  
 Exhibit 10.4

 

 

  
  

2010 EXECUTIVE INCENTIVE PROGRAM 
 OVERVIEW 
  
  

You have been selected to participate in the 2010 Executive Incentive Program (“Incentive Program”) based on your level of responsibility
within CDI. 
 The purpose of the Incentive Program is to recognize and reward key employees of CDI who contribute to the overall financial
performance of their area, business unit, and the Corporation overall. By rewarding the successful achievement of selected operating goals, CDI provides the opportunity to enrich your annual cash compensation while driving the behaviors needed to
enhance Company performance. 
  

													
	Performance Year	 		 	 •      
	 	The performance year for the Incentive Program starts on January 1, 2010 and ends December 31, 2010.
				
	 Incentive Metrics

and

Weightings
	 		 	 •      
	 	The 2010 Executive Incentive Program is based on the following strategic accomplishments:
	 		 		 	  
 Performance Metrics for Corporate
Executives:

				
		 		 	 •      
	 	33% CDI Direct Margin
		 		 	 •      
	 	52% CDI Earnings Per Share
		 		 	 •      
	 	15% Individual Targets (“ITs”)
				
		 		 		 	Performance Metrics for Business Unit/Vertical Executives:
				
		 		 	 •      
	 	33% Business Unit/Vertical Direct Margin
		 		 	 •      
	 	52% Business Unit/Vertical Contribution Margin
		 		 	 •      
	 	15% Individual Targets (“ITs”)

  
 1 

													
	 Incentive Metrics
 and Weightings
 cont’d
	 		 	 The following achievement and payout percentages apply separately to Direct Margin, Earnings Per Share and Contribution
Margin performance metrics:
  

	 	 	 	 	 	 	 	 Percent Metric

Achievement
	 	 Incentive Payout

Percentage
	 	 
		 		 		 		 	< 70%	 	0%	 	
		 		 		 		 	70%	 	35%	 	
		 		 		 		 	75%	 	45.8%	 	
		 		 		 		 	80%	 	56.7%	 	
		 		 		 		 	85%	 	67.5%	 	
		 		 		 		 	90%	 	78.3%	 	
		 		 		 		 	95%	 	89.2%	 	
		 		 		 		 	100%	 	100%	 	
		 		 		 		 	105%	 	110.8%	 	
		 		 		 		 	110%	 	121.7%	 	
		 		 		 		 	115%	 	132.5%	 	
		 		 		 		 	120%	 	143.3%	 	
		 		 		 		 	125%	 	154.2%	 	
		 		 		 		 	3130%	 	165%	 	
				
		 		 		 	 Note: An incentive payout in between achievement levels will be interpolated.

				
		 		 	 •     
	 	For all participants, each financial element will be capped at 100% until CDI achieves the Earnings Per Share threshold. ITs are capped at 100% payout.
				
		 		 	 •     
	 	Any financial metric outside of Direct Margin, Earnings Per Share and Contribution Margin will be measured as an IT.
				
		 		 		 	The Compensation Committee will review and consider the effect on incentive compensation of any acquisitions (i.e., the establishment of new financial targets on a pro
rata basis) and/or discontinued operations. In addition, the Committee may consider out of pattern events.
				
		 		 	 •     
	 	Incentive awards for the achievement of individual ITs will be based on an assessment by the CEO (who receives recommendations from the BU or Corporate executive) on a
straight-line basis, e.g., for 80% achievement, the executive will receive an 80% payout, up to a maximum payout of 100% for any IT.
			
	 When Will I
 Receive My
 Award?
	 	 •     
	 	2010 incentive awards, if any, are scheduled for payout in 2011, after the completion of CDI’s audited financial year-end statements.
	 		 	  
 All incentive payments at year-end are subject to
review, approval, and discretionary adjustment by the Compensation Committee of CDI’s Board of Directors. The Compensation Committee and CDI’s Board of Directors reserve the right to amend the terms of this plan or make other adjustments
as they deem necessary in their sole discretion.

  
 2 

															
	 What If I Become
 Eligible After the
 Start of the Plan

Year?
	 	 •      
	 	If you become eligible after the start of the Plan year, you are still eligible to participate in the Incentive Program. However, your award will be prorated for the
length of time in which you participated in the Program unless specified otherwise by prior special written agreement.
	 	  

•      
	 	  
 Proration of your incentive award depends on when you
became eligible to participate. See the following chart to determine the proration formula that corresponds to the date your eligibility started.

								
		 		 		 		 		 	On or before 01/31/10	 	è	 	12/12 months (no proration)
		 		 		 		 		 	02/01/10 – 02/28/10	 	è	 	11/12 months
		 		 		 		 		 	03/01/10 – 03/31/10	 	è	 	10/12 months
		 		 		 		 		 	04/01/10 – 04/30/10	 	è	 	9/12 months
		 		 		 		 		 	05/01/10 – 05/31/10	 	è	 	8/12 months
		 		 		 		 		 	06/01/10 – 06/30/10	 	è	 	7/12 months
		 		 		 		 		 	07/01/10 – 07/31/10	 	è	 	6/12 months
		 		 		 		 		 	08/01/10 – 08/31/10	 	è	 	5/12 months
		 		 		 		 		 	09/01/10 – 09/30/10	 	è	 	4/12 months
		 		 		 		 		 	10/01/10 – 12/31/10	 	è	 	Discretionary *
					
		 		 		 		 	 *   Management has the discretion to allocate a prorated target incentive based on months with CDI (up
to three months) for newly hired employees. Performance measures must be established and submitted to Corporate Compensation at the beginning of the employee’s tenure in order for the participant to be incentive eligible.

						
		 		 		 		 		 	 •        Example 1: A newly hired employee who starts in July will be
eligible to receive 6/12 (or half) of the yearly incentive.

						
		 		 		 		 		 	 •        Example 2: An employee newly promoted into an executive
incentive eligible position in September will be eligible to receive 4 months of the yearly target incentive opportunity.

			
	 Will My
 Target
 Incentive or

Performance

Measures

Ever Change?
	 	 •      
	 	The target incentive award and performance measures established for you at the beginning of the Plan Year will remain the same unless there is a significant change in
responsibility, such as a promotion to a different position. However, any salary or incentive change that occurs in the fourth quarter will not be reflected in your incentive opportunity until the following year.
	 	  

•      
	 	  
 Changes in performance measures and incentive targets
are prorated to the month the change is effective for incentive calculation purposes. This is also true of target incentive opportunity changes as well, with the exception of any change that occurs in the fourth quarter. Fourth quarter changes will
not be reflected until the following year.

	 	  

•      
	 	  
 You will receive notice of a change in target award or
performance measures after your Human Resources Executive notifies Corporate Compensation. This process ensures accurate financial accrual, administration, and conformity to Corporate Compensation
guidelines.

  
 3 

															
	 What Happens To
 My Incentive
 If I Leave CDI?
	 		 	Subject to the termination provisions below (or set forth in your employment agreement, if applicable), you must be employed by CDI on the day of incentive payouts to
be considered for an incentive award.
	 		 	  

•     
	 	  
 If you resign or are terminated by the Company for
cause on or before the day of the incentive payout, you will not be eligible to receive an incentive award.

				
		 		 	 •     
	 	If your employment with the Company terminates (other than for resignation or for cause), you may be considered for an award at the CEOs discretion and with the approval
of the Compensation Committee. If such an award is approved, it will be paid around the time all other incentive awards are paid.
				
		 		 	 •     
	 	If your employment with the Company terminates due to retirement, long-term disability or death, a prorated award will be paid according to year-end financial
statements, based on months of employment in that year.
				
	Administration	 		 	 •     
	 	While you are a participant of the Incentive Program, you are not eligible to participate in any other short-term incentive program at CDI.
				
		 		 	 •     
	 	Participants in the Executive Incentive Program are subject to the terms and conditions of CDI’s Compliance Program and the Policy on Cash Bonus Awards and Equity
Awards “Clawback” for CDI Corp. and its Related Companies; non-compliance may result in a reduction to the incentive in addition to disciplinary consequences.

 
  
  

 

  
 4Form of Notice of Grant of Stock Options and Option Agreement

  
 Exhibit 10.1

  
  

 

					
	Notice of Grant of Stock Options and Option Agreement	  	 Radiant Systems, Inc.
 ID: 11-2749765
 770-576-6492 (off), 770-360-7473 (fax)

3925 Brookside Parkway
 Alpharetta, GA
30022
  

	  

			
	 Employee Name
 3925
Brookside Pkwy.
 Alpharetta, GA United States 30022
	  	 Option Number:

Plan:
 ID:

 
	  	 xxxxxxx

2005

  

Effective 3/26/2010, you have been granted a(n) Non-Qualified Stock Option to buy xxxxxx shares of Radiant Systems, Inc. (the Company) stock at $xx.xx
per share. 
 The total option price of the shares granted is $xxxxxxx. 
 Shares in each period will become fully vested on the date shown. 
  

							
	 Shares
	  	 Vest Type
	  	 Full Vest
	  	 Expiration

	 xxxxx

xxxxx
 xxxxx
	  	 On Vest Date
 On Vest Date
 On Vest Date
	  	 x/xx/xxxx
 x/xx/xxxx
 x/xx/xxxx
	  	 x/xx/xxxx
 x/xx/xxxx
 x/xx/xxxx

 
  
 By your signature and the Company’s signature below, you and the Company agree that these options are granted under and governed by the terms and conditions of the Company’s Stock Option Plan as
amended and the Option Agreement, all of which are attached and made a part of this document. 
  

 
  

					
			
	  	 		 	  
	Radiant Systems, Inc.	 		 	Date
			
	  	 		 	  
	Employee Name	 		 	Date

  
 RADIANT SYSTEMS, INC.

 AMENDED AND RESTATED 2005 LONG-TERM INCENTIVE PLAN 
 OPTION AGREEMENT RELATED TO NOTICE OF GRANT OF STOCK OPTIONS 
 THIS OPTION
AGREEMENT is attached to and made a part of the NOTICE OF GRANT OF STOCK OPTIONS AND OPTION AGREEMENT (“Notice of Grant”) related to a stock option grant as set forth in the Notice of Grant under the Radiant Systems, Inc. Amended and
Restated 2005 Long-Term Incentive Plan (“Plan”), which plan is incorporated herein by reference. 
 1. INCORPORATION OF
PLAN PROVISIONS 
 This Option Agreement is subject to and is to be construed in all respects in a manner which is consistent
with the terms of the Plan. Unless specifically provided otherwise, all terms used in this Option Agreement shall have same meaning as in the Plan. 
 2. GRANT OF OPTION; OPTION PRICE; VESTING; EXPIRATION 
 The Notice of Grant awards
an Option to the Participant and sets forth (i) the number of shares subject to the Option, (ii) the Option Price per share, (iii) the vesting schedule with respect to the Option, and (iv) the expiration date of the Option. The
Notice of Grant specifies whether the Option is an Incentive Stock Option or a Non-Qualified Stock Option. The Notice of Grant and this attached Option Agreement constitute the Award Agreement as described in Section 2.5 of the Plan.

 3. EXERCISE OF OPTION AND PAYMENT 
 Any part of the Option that has vested may be exercised in whole or in part at any time before the Option expires or is terminated pursuant to the terms of the Plan. No shares will be issued or delivered
until full payment of the Option Price and any required taxes has been received by the Company. The Option Price may be paid by any of the methods described in Section 3.2(B) of the Plan, summarized below and subject to Company approval where
indicated below: 
 (i) in cash; or 
 (ii) by tendering shares of the Company’s common stock owned by the Participant as described in the Plan, which tender the Company may accept or reject, in its sole discretion; or 

(iii) by requesting that the Company withhold such number of shares of stock then issuable upon exercise of the Option sufficient to pay
the Option Price, which request the Company may accept or reject, in its sole discretion; or 
 (iv) by offset against
compensation due or accrued to the Participant for services rendered, which offset the Company may accept or reject, in its sole discretion; or 
 (v) provided that a public market for the Company’s stock exists: 
 (a)
Through a “same day sale” commitment from the Participant and a broker-dealer whereby the Participant irrevocably elects to exercise the Option and to sell a portion of the shares to pay the purchase price, and the NASD Dealer irrevocably
commits to forward the purchase price directly to the Company; or 
 (b) Through a “margin” commitment from the
Participant and an NASD Dealer whereby the Participant irrevocably elects to exercise the Option and to pledge the shares in a margin account as security for a loan in the amount of the purchase price, and the NASD Dealer irrevocably commits to
forward the purchase price directly to the Company (provided, that this form of payment shall only be permitted to be used by a Participant if it does not violate the Sarbanes Oxley Act of 2002, or any other applicable laws); or 

(vi) by any combination of the foregoing; or 
 (vii) by such other method as may be allowed by the Compensation Committee of the Company’s Board of Directors in its discretion. 

  
 4. TERMINATION OF
EMPLOYMENT 
 Any unvested portion of the Option will be forfeited upon termination of employment for any reason as provided in
the Plan, and the Participant may exercise any vested portion of the Option until the earlier of (i) three months (one year if termination is due to death or disability) after termination, (ii) the expiration date set forth in the Notice
of Grant, or (iii) expiration of seven years from the date of grant of the Option. 
 5. CHANGE IN CONTROL 

The Option will be affected by a Change in Control Event as described in the Plan. 

6. TAX WITHHOLDING 
 Prior to the issuance or delivery of shares, the Participant must remit to the Company funds in an amount sufficient to satisfy any federal, state and local tax withholding requirements or, if requested
by the Participant and in the sole discretion of the Company, the Company may withhold from the shares to be delivered a number of shares sufficient to satisfy all or a portion of such tax withholding requirements.

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