Document:

Exhibit 10.20

 

ZORAN CORPORATION

 

2007 EXECUTIVE OFFICER BONUS POLICY

 

This 2007 Executive Officer Bonus Policy applies to the executive
officers (“Participants”) of Zoran
Corporation (“Zoran”) for fiscal 2007:

 

1.               The target bonus
amount for each Participant shall be a percentage of the Participant’s base
salary (“Target Bonus”).  The target percentage for each of the
executive officers of Zoran, as determined by the Compensation Committee of the
Board of Directors (“Committee”),
shall be as follows:

 

	
  Executive Officer

  	
   

  	
  Target Bonus

  (% of base salary)

  	
   

  
	
  Dr. Levy Gerzberg, President and Chief
  Executive Officer

  	
   

  	
  100

  	
  %

  
	
  Karl Schneider, Chief Financial Officer

  	
   

  	
  70

  	
  %

  
	
  Dr. Isaac Shenberg, Senior Vice
  President

  	
   

  	
  60

  	
  %

  

 

2.               The measures of
financial performance determining achievement of 67% of Target Bonuses shall be
revenues of Zoran for fiscal 2007 (one-fourth of such amount) and fiscal 2007
non-GAAP earnings per share of Zoran (three-fourths of such amount).

 

3.               The specific levels
of revenues and non-GAAP earnings per share at which 100% achievement of Target
Bonus may be attained shall be the levels of revenues and non-GAAP earnings per
share that are set forth in the Company’s Annual Operating Plan as approved by
the Board of Directors, with minimum and maximum performance set at 80% and
120% respectively.

 

4.               The specific
objectives determining achievement of 33% of Target Bonus for each Participant
other than the Chief Executive Officer shall be the objectives approved by the
Committee based on recommendations by the Chief Executive Officer.

 

5.               The Target Bonus of
the Company’s Chief Executive Officer shall be determined based on the
corporate financial goals identified in paragraph 3, subject to the discretion
of the Committee to reduce or increase the bonus based on such factors as it
deems appropriate.

 

6.               The Company shall
accrue annual bonuses for all employees of the Company; executive officers,
general managers and vice presidents of Zoran shall not be entitled to receive
bonuses that, in the aggregate, exceed 25% of the accrued bonus pool.

 

7.               Non-GAAP pre-tax
earnings per share consists of Zoran’s GAAP pre-tax earnings per share for
fiscal 2007, adjusted to eliminate share-based compensation expenses,
amortization of acquired intangible assets and income tax expense.

 

8.               Only persons
employed by Zoran at the end of the fiscal year and at the time of payment are
eligible to receive bonuses under this plan, pro rata to their service during
the year.Exhibit 10.21

 

ZORAN CORPORATION

 

2008 EXECUTIVE OFFICER BONUS POLICY

 

This 2008 Executive Officer Bonus Policy applies to the executive
officers (“Participants”) of Zoran
Corporation (“Zoran”) for fiscal 2008:

 

1.     The target bonus amount for
each Participant shall be a percentage of the Participant’s base salary (“Target Bonus”).  The target percentage for each of the
executive officers of Zoran, as determined by the Compensation Committee of the
Board of Directors (“Committee”)
shall be as follows:

 

	
  Executive Officer

  	
   

  	
  Target Bonus

  (% of base salary)

  	
   

  
	
  Dr. Levy Gerzberg, President and Chief
  Executive Officer

  	
   

  	
  100

  	
  %

  
	
  Karl Schneider, Chief Financial Officer

  	
   

  	
  70

  	
  %

  
	
  Dr. Isaac Shenberg, Senior Vice
  President

  	
   

  	
  60

  	
  %

  

 

2.     The measures of financial
performance determining achievement of 67% of Target Bonuses shall be revenues
of Zoran for fiscal 2008 (one-fourth of such amount) and fiscal 2008 non-GAAP
earnings per share of Zoran (three-fourths of such amount).

 

3.     The specific levels of
revenues and non-GAAP earnings per share at which 100% achievement of Target
Bonus may be attained shall be the levels of revenues and non-GAAP earnings per
share that are set forth in the Company’s Annual Operating Plan as approved by
the Board of Directors, with minimum and maximum performance set at 80% and
120% respectively.

 

4.     The specific objectives
determining achievement of 33% of Target Bonus for each Participant other than
the Chief Executive Officer shall be the objectives approved by the Committee
based on recommendations by the Chief Executive Officer.

 

5.     The Target Bonus of the
Company’s Chief Executive Officer shall be determined based on the corporate
financial goals identified in paragraph 3, subject to the discretion of the
Committee to reduce or increase the bonus based on such factors as it deems
appropriate.

 

6.     The Company shall accrue
annual bonuses for all employees of the Company; executive officers, general
managers and vice presidents of Zoran shall not be entitled to receive bonuses
that, in the aggregate, exceed 25% of the accrued bonus pool.

 

7.     Non-GAAP pre-tax earnings per
share consists of Zoran’s GAAP pre-tax earnings per share for fiscal 2008,
adjusted to eliminate share-based compensation expenses, amortization of
acquired intangible assets and income tax expense.

 

8.     Only persons employed by
Zoran at the end of the fiscal year and at the time of payment are eligible to
receive bonuses under this plan, pro rata to their service during the year.Exhibit 10.22

 

ZORAN CORPORATION

AMENDMENT
OF STOCK OPTION AGREEMENTS

 

Zoran Corporation, a Delaware corporation (the “Company”), hereby
amends, effective as of July 17, 2002, pursuant to resolutions of the
Board of Directors of the Company adopted on such date, each of the options to
purchase shares of the Company’s common stock granted to Levy Gerzberg (the “Optionee”)
pursuant to the Company’s 1993 Stock Option Plan which are identified on the
schedule attached hereto as Exhibit A and evidenced by a stock
option agreement entered into between the Company and the Optionee (each, an “Option
Agreement”).

 

1.             Effect of Retirement from the Board. Section 3(b)(ii) of each Option
Agreement  is amended to read as follows:

 

3.             Vesting and Exercise of Option.

 

(b)           Right to Exercise.

 

(ii)           Except as provided by the following sentence,
in the event of the Optionee’s death, disability or other termination of
employment, the exercisability of the Option shall be governed by Sections
9(c), (d) and (e) of the Plan. In the event of the Optionee’s
Retirement (as defined below) from the Board, the Option, to the extent
unexercised and exercisable on the date on which the Optionee’s Continuous
Service terminated, may be exercised at any time thereafter until the earlier
of (A) the expiration of the Option term set forth in paragraph 7 below or
(B) the Optionee’s acceptance of a senior executive management-level
position with another entity. For the purposes of this Agreement, “Retirement”
means the termination of the Optionee’s Continuous Service as a result of
either of the following, provided that the Optionee has served continuously on
the Board for at least two (2) years: (1) the Optionee’s resignation
from the Board or (2) the expiration of the Optionee’s term as a director
of the Company after the Optionee has declined to stand for reelection.

 

2.              Continuation of Other Terms. Except as set forth herein, all other terms
and conditions of the Option Agreement shall remain in full force and effect.

 

This Amendment is executed by
a duly authorized officer on behalf of the Company as of the date first set
forth above.

 

 

	
   

  	
  ZORAN
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Karl Schneider

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  KARL SCHNEIDER

  
	
   

  	
   

  	
     Chief Financial Officer

  

 

 

EXHIBIT A

 

OPTIONS AMENDED

 

	
  Option Number

  	
   

  	
  Grant Date

  	
   

  	
  Type

  	
   

  	
  Number of

  Shares

  	
   

  	
  Exercise Price

  	
   

  
	
  001223

  	
   

  	
  8/4/99

  	
   

  	
  ISO

  	
   

  	
  82,500

  	
   

  	
  $

  	
  13.5833

  	
   

  
	
  001852

  	
   

  	
  7/28/00

  	
   

  	
  ISO

  	
   

  	
  135,000

  	
   

  	
  $

  	
  27.3333

  	
   

  
	
  002307

  	
   

  	
  2/07/01

  	
   

  	
  ISO

  	
   

  	
  75,000

  	
   

  	
  $

  	
  10.3333

  	
   

  
	
  002380

  	
   

  	
  9/19/01

  	
   

  	
  ISO

  	
   

  	
  75,000

  	
   

  	
  $

  	
  11.5200

  	
   

  

 

 

ZORAN CORPORATION

 

AMENDMENT OF STOCK OPTION AGREEMENTS

 

Zoran
Corporation, a Delaware corporation (“Company”),
and Levy Gerzberg (“Optionee”), are parties to
stock option agreements under the 1993 Stock Option (“1993
Plan”) and the 2005 Equity Incentive Plan (“2005
Plan”) (each, an “Option Agreement”)
governing the options to purchase Company common stock identified on the Exhibit A
attached hereto.

 

For
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Company and Optionee hereby agree as follows:

 

1.             Section 3(b)(ii) of
each Option Agreement under the 1993 Plan is hereby amended to read in its
entirety as follows:

 

(ii)           Except as provided by the following
sentence, in the event of the Optionee’s death, disability or other termination
of employment, the exercisability of the Option shall be governed by Sections
9(c), (d) and (e) of the Plan. 
In the event of the Optionee’s Retirement (as defined below) from the
Board, the Option, to the extent unexercised and exercisable on the date on
which the Optionee’s Continuous Service terminated, may be exercised at any
time thereafter until the earlier of (A) the expiration of the Option term
set forth in paragraph 7 below or (B) the Optionee’s acceptance of a
senior executive management-level position with another entity.  For the purposes of this Agreement,
“Retirement” means the termination of the Optionee’s Continuous Service as a
result of either of the following, provided that the Optionee has served
continuously on the Board for at least two (2) years: (1) the
Optionee’s resignation from the Board or (2) the expiration of the
Optionee’s term as a director of the Company after the Optionee has declined to
stand for reelection.

 

3.             Section 7.1(c) of
each Option Agreement under the 2005 Plan is hereby amended to read in its
entirety as follows:

 

(c)           Other Termination of
Service.  In the event of
the Participant’s Retirement (as defined below) from the Board of Directors of
the Company (the “Board”), the Option, to the
extent unexercised and exercisable on the date on which the Optionee’s
continuous Service terminated, may be exercised at any time thereafter until
the earlier of (i) the expiration of the Option term set forth in the
Grant Notice or (ii) the Participant’s acceptance of a senior executive
management-level position with another entity. 
For the purposes of this Agreement, “Retirement” means the termination
of the Participant’s continuous Service as a result of either of the following,
provided that the Participant has served continuously on the Board for at least
two (2) years: (i) the Participant’s resignation from the Board or (ii) the
expiration of the Participant’s term

 

 

as a director of
the Company after the Participant has declined to stand for reelection.

 

2.             Except
as specifically set forth herein, all other terms and conditions of each Option
Agreement shall remain in full force and effect.

 

 

	
  Date: February 11, 2008

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OPTIONEE:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
      Levy Gerzberg

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COMPANY: ZORAN CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

2

 

EXHIBIT A

 

1993 PLAN OPTION AGREEMENTS

 

	
  Option Number

  	
   

  	
  Grant Date

  	
   

  	
  Number of

  Shares

  	
   

  	
  Exercise Price

  	
   

  
	
  003082

  	
   

  	
  7/15/03

  	
   

  	
  304,679

  	
   

  	
  $

  	
  24.7800

  	
   

  
	
  003086

  	
   

  	
  7/15/03

  	
   

  	
  304,679

  	
   

  	
  $

  	
  24.7800

  	
   

  
	
  005217

  	
   

  	
  12/29/06

  	
   

  	
  178,125

  	
   

  	
  $

  	
  14.6900

  	
   

  

 

2005 PLAN OPTION AGREEMENTS

 

	
  Option Number

  	
   

  	
  Grant Date

  	
   

  	
  Number of

  Shares

  	
   

  	
  Exercise Price

  	
   

  
	
  004696

  	
   

  	
  8/19/05

  	
   

  	
  180,000

  	
   

  	
  $

  	
  13.5900

  	
   

  
	
  005581

  	
   

  	
  4/26/07

  	
   

  	
  20,220

  	
   

  	
  $

  	
  19.7800

  	
   

  
	
  005582

  	
   

  	
  4/26/07

  	
   

  	
  79,780

  	
   

  	
  $

  	
  19.7800

  	
   

  

 

3

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