Document:

Exhibit 10.2 12-31-2013

Exhibit 10.2

CITRIX SYSTEMS, INC.
EXECUTIVE BONUS PLAN
 
	
		
	I.
	Purpose

The purpose of the Citrix Systems, Inc. Executive Bonus Plan (the “Plan”) is to provide to executive officers of Citrix Systems, Inc. (the “Company”) competitive compensation opportunities that are aligned with and promote the overall financial objectives of the Company and its shareholders. In addition to base salary and long-term equity awards, this will be accomplished through incentives payable in the form of cash bonuses designed to reward executives for the financial and operational success of the Company. This Plan does not govern the Company’s base salary and long-term equity awards compensation practices.
 
	
		
	II.
	Eligibility

From time to time, the Compensation Committee of the Board of Directors (the “Compensation Committee”) may select certain company executives1 to participate in the Plan (the “Participants”). Individuals may become Participants during a fiscal year (“New Participants”) provided such an individual is: (1) an executive of the Company; (2) recommended for participation by the President & CEO; and (3) approved for participation by the Compensation Committee of the Board of Directors (the “Compensation Committee”).
 
	
		
	III.
	Plan Administration

The Plan will be administered by the President & CEO and the Compensation Committee.
 
	
			
	 
	A.
	President & CEO Responsibilities.

	
			
	 
	1.
	Recommend new executives for Plan participation.

	
			
	 
	2.
	Develop specific bonus recommendations for all Participants (except the President & CEO) and submit to the Compensation Committee for approval.

	
			
	 
	3.
	Propose performance measures, weightings, and performance levels for the Plan, and changes thereto.

	
			
	 
	4.
	Evaluate actual performance against bonus measures and goals.

	 
	5.
	Communicate Plan parameters and mechanics to Participants.

 
	
		
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	For purposes of this Plan, “company executive”, “executive officer” and “executive” refers to any person who is (a) an officer, as defined in Rule 16a-1(f) promulgated under the Securities Exchange Act of 1934 (as amended), (b) a covered person under Section 162(m) of the Internal Revenue Code or (c) a direct report to the Company’s Chief Executive Officer.

	
			
	 
	B.
	Compensation Committee Responsibilities.

	
			
	 
	1.
	Approve new Participants.

	
			
	 
	2.
	Review target bonus awards, including benchmarking to peer group companies.

	
			
	 
	3.
	Review bonus measures, goals, and weightings.

	
			
	 
	4.
	Certify achievement of bonus measures.

	
			
	 
	5.
	Review and approve the President & CEO’s bonus recommendations for Participants and develop bonus recommendations for the President & CEO.

 

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Exhibit 10.2

	
		
	IV.
	Bonus Structure

	
			
	 
	A.
	Performance Period. This Plan will measure and reward performance on an annual basis (January 1 - December 31). Each Participant shall have a targeted bonus level for each performance period.

 
	
			
	 
	B.
	Eligibility. All Participants as of January 1st are eligible to participate in this Plan. New Participants will be eligible to participate in this Plan upon the recommendation of the President & CEO and approval by the Compensation Committee. A New Participant’s bonus opportunity will be prorated based on the number of full and partial months remaining in the performance period at the time Plan participation is approved. New Participants approved for the Plan may be eligible to receive a bonus (prorated based on the number of full and partial months remaining in the performance period) for the achievement of individual performance goals, as recommended by the President & CEO and approved by the Compensation Committee.

 
	
			
	 
	C.
	Performance Measures.

 
	
			
	 
	1.
	Financial and Operational Performance Targets. For all Participants, bonus awards are, to the extent determined by the Compensation Committee, tied to the achievement of financial or operational performance targets (“Targets”), including, without limitation, the following: (a) operating margin, gross margin, contribution margin or profit margin; (b) earnings per share or pro forma earnings per share; (c) revenue (including product revenue and division revenue); (d) bookings (including product bookings and division bookings); (e) expenses or operating expenses; (f) completion of number of years of service with the Company; (g) net income or operating income; (h) stock price increase; (i) performance relative to peers; (j) divisional or operating segment financial and operating performance; (k) total return on shares of common stock relative to increase in appropriate stock index selected by the

 
	
		
	 
	Compensation Committee; (l) customer satisfaction indicators; (m) cash flow; (n) pre-tax profit; (o) growth or growth rate with respect to any of the foregoing measures; (p) attainment of strategic and operational objectives; (q) other financial measures determined by the Compensation Committee; (r) other performance measures determined by the Compensation Committee; or (s) any combination or subset of the foregoing.

The Compensation Committee may appropriately adjust any evaluation of performance under any selected performance goal to exclude any of the following events that occurs during a performance period: (i) the amortization of intangible assets, (ii) write-offs of in-process research and development, (iii) charges associated with the expensing of equity-based compensation, (iv) asset write-downs or impairment, (v) litigation or claim judgments or settlements, (vi) the effect of changes in tax law, accounting principles or other such laws or provisions affecting reported results, (vii) accruals for reorganization and restructuring programs, (viii) any extraordinary non-recurring items including those described in Accounting Principles Board Opinion No. 30 and/or in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to stockholders for the applicable year, and (ix) any other extraordinary items adjusted from the Company’s U.S. GAAP results in the Compensation Committee’s discretion.
Targets, to the extent determined by the Compensation Committee, may be assigned weightings. In each performance period, the Compensation Committee shall establish Targets and their associated weightings for each Participant. Targets and their associated weightings will be reviewed periodically throughout the performance period to ensure continued alignment with the Company’s business strategy and objectives. Upon the recommendation of the President & CEO and approval of the Compensation Committee, Targets and their associated weightings may be adjusted at such time to reflect changes in business priorities.
 
	
			
	 
	2.
	Individual Goals. The Compensation Committee may determine to make the achievement of individual performance goals a weighted component of the bonus awards for certain Participants. The achievement of the individual performance goals component by such Participants will be determined by the President & CEO or a direct report of the President & CEO to whom the President & CEO has delegated such authority.

 
	
			
	 
	3.
	Minimum Performance Requirement. Bonus awards are subject to minimum performance requirements, or thresholds, established by the Compensation Committee from time to time, before any bonus award may be earned.

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Exhibit 10.2

	
			
	 
	D.
	Bonus Levels. From time to time, the Compensation Committee shall establish for each Participant target bonus levels, expressed as a percentage of each Participant’s base salary, and based on competitive practice and Citrix’s compensation philosophy. In the event of the over-achievement by the Company or a Participant of the Targets, for each component category, bonus awards may be adjusted upwards but capped at a maximum target bonus award, expressed as a percentage of each Participant’s base salary. In the event of the under-achievement by the Company or a Participant of the Targets, for each financial component category, bonus awards may be adjusted downwards from the Participant’s target bonus award. The percentage increases or decreases, as the case may be, for each Participant and for each component shall be established by the Compensation Committee at the same time as the Compensation Committee establishes the Targets and their associated weightings.

 
	
			
	 
	E.
	Bonus Determination. The President & CEO will be responsible for evaluating actual performance against the Targets and the individual performance goals and determining the bonus award earned. Written documentation supporting the President & CEO’s evaluation of actual performance and calculation of bonus awards will be submitted to the Compensation Committee for review. The Compensation Committee will make all final bonus award determinations.

 
	
			
	 
	F.
	Bonus Payout. Subject to approval by the Compensation Committee, all bonus awards will be paid in cash as soon as practicable following the conclusion of the fiscal year to which the award relates but only after the Compensation Committee’s determination of the bonus awards. In its sole discretion, the Compensation Committee may provide for partial payments of bonus awards during a performance period.

 
	
		
	V.
	Miscellaneous Provisions

 
	
			
	 
	A.
	This Plan is effective as of January 1, 2007 and will continue until the Compensation Committee and/or Board of Directors terminates or amends the Plan. The Compensation Committee and/or Board of Directors retain the right to amend, alter or terminate this Plan at any time. The President & CEO and the Compensation Committee retain the right to establish and amend the base salary and long-term equity awards compensation of the Company’s executives and employees. The Compensation Committee and/or Board of Directors retain the right to make discretionary bonus awards or to amend or alter any Target or their associated weightings or any individual performance goal at any time.

 
	
			
	 
	B.
	All decisions made by the Compensation Committee and/or Board of Directors regarding administration and interpretation of the Plan shall be final and binding on all persons, including the Company and Participants.

 
	
			
	 
	C.
	Nothing contained in this document shall be deemed to alter the relationship between the Company and a Participant, or the contractual relationship between a Participant and the Company if there is a written contract regarding such relationship. Furthermore, nothing contained in this document shall be construed to constitute a contract of employment between the Company and a Participant. The Company and each of the Participants continue to have the right to terminate the employment or service relationship at any time for any reason, except as provided in a written contract.

 

3Exhibit 10.23 12-31-2013

Exhibit 10.23

FORM OF FIRST AMENDMENT
TO
CHANGE IN CONTROL AGREEMENT
(Chief Executive Officer)
		
	A.
	The Change in Control Agreement (the “Agreement”) dated as of August 4, 2005 by and between Citrix Systems, Inc. (the “Company”) and Mark B. Templeton (the “Executive”) is amended as follows:

1.Section 4(e) of the Agreement is hereby amended by deleting said section in its entirety and substituting the following in lieu thereof:
“(e)    Notwithstanding anything to the contrary in any applicable option agreement or stock-based award agreement, upon a Change of Control, all outstanding stock options and other stock-based awards granted to the Executive by the Company, including but not limited to restricted stock and restricted stock units, shall immediately accelerate and become exercisable or non-forfeitable as of the effective date of such Change of Control; provided, however, with respect to stock-based awards with performance vesting with respect to which the number of options, units or shares, as the case may be, has not been determined, the performance criteria set forth in the award agreement will be deemed to be 100 percent attained, and 100 percent of the base number of such options, units or shares, as the case may be, shall become fully vested and non-forfeitable.  The Executive shall also be entitled to any other rights and benefits with respect to stock-based awards to the extent and upon the terms provided in the award agreement, plan or other instrument attendant thereto pursuant to which such stock-based awards were granted.”
2.Section 5 of this Agreement is hereby amended by deleting said section in its entirety and substituting therefor the following:
“5.    Additional Limitation.
(a)    Anything in this Agreement to the contrary notwithstanding, in the event that any compensation, payment or distribution by the Company to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (the “Severance Payments”), would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), the following provisions shall apply:
(i)    If the Severance Payments, reduced by the sum of (A) the Excise Tax and (B) the total of the federal, state, and local income and employment taxes payable by the Executive on the amount of the Severance Payments which are in excess of the Threshold Amount, are greater than or equal to the Threshold Amount, the Executive shall be entitled to the full benefits payable under this Agreement.
(ii)    If the Threshold Amount is less than (x) the Severance Payments, but greater than (y) the Severance Payments reduced by the sum of (A) the Excise Tax and (B) the total of the federal, state, and local income and employment taxes on the amount of the Severance Payments which are in excess of the Threshold Amount, then the benefits payable under this Agreement shall be reduced (but not below zero) to the extent necessary so that the sum 

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of all Severance Payments shall not exceed the Threshold Amount.  In such event, the Severance Payments shall be reduced in the following order: (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits.  To the extent any payment is to be made over time, then the payments shall be reduced in reverse chronological order.
(b)    For the purposes of this Section 5, “Threshold Amount” shall mean three times the Executive’s ‘base amount’ within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and ‘Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by the Executive with respect to such excise tax.
(c)    The determination as to which of the alternative provisions of Section 5(a) above shall apply to the Executive shall be made by a nationally recognized accounting firm selected by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and the Executive within 15 business days of the Date of Termination, if applicable, or at such earlier time as is reasonably requested by the Company or the Executive.  For purposes of determining which of the alternative provisions of Section 5(a) above shall apply, the Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year in which the determination is to be made, and state and local income taxes at the highest marginal rates of individual taxation in the state and locality of the Executive’s residence on the Date of Termination, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes.  Any determination by the Accounting Firm shall be binding upon the Company and the Executive.”
3.The Agreement is further amended by adding the following Section 20 at the end thereof:
“20.    Section 409A.
(a)    Anything in this Agreement to the contrary notwithstanding, if at the time of the Executive’s ‘separation from service’ within the meaning of Section 409A of the Code, the Company determines that the Executive is a ‘specified employee’ within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that the Executive becomes entitled to under this Agreement would be considered deferred compensation subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (A) six months and one day after the Executive’s separation from service, or (B) the Executive’s death; provided, however, that in the case of benefits, the Executive may elect to pay for the costs of such benefits during such delay period in exchange for reimbursement of such costs after the end of the delay period.  Any such delayed cash payment shall earn interest at an annual rate equal to the applicable federal short-term rate published by the Internal Revenue Service for the month in which the date of separation from service occurs, from such date of separation from service until the payment.
(b)    The parties intend that this Agreement will be administered in accordance with Section 409A of the Code.  To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner so that all 

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payments hereunder comply with Section 409A of the Code.  The parties agree that this Agreement may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party.
(c)    The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation Section 1.409A-1(h).
(d)    The Company makes no representation or warranty and shall have no liability to the Executive or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such Section.”
		
	B.
	This First Amendment shall become effective November [__], 2008.

C.Except as amended herein, the Agreement is confirmed in all other respects.

IN WITNESS WHEREOF, this First Amendment has been executed as a sealed instrument on behalf of the Company by its duly authorized officer and by the Executive this ___ day of November, 2008.

CITRIX SYSTEMS, INC.
By:____________________________________
Name:
Title:
      _______________________________________    
     Mark B. Templeton

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