Document:

ex10_21.htm

Exhibit 10.21

 

AXT, INC.

 

FISCAL 2011 EXECUTIVE INCENTIVE BONUS PLAN

 

The following are the terms of the 2011 Executive Bonus Plan approved by the Compensation Committee of the Board of Directors of AXT, Inc. (the “Company”) on December 13, 2010 (the “Plan”).

 

A.    Purpose

 

1.           The terms of the Plan have been established to attract, motivate, retain and reward the Company’s executive officers and other officers of the Company for driving the Company to achieve specific corporate objectives.

 

2.           The Plan provides for the payment of quarterly cash bonuses based upon Company financial targets and individual performance target objectives.

 

B.    Eligibility

 

1.           Those eligible to participate in the Plan are the officers of the Company subject to Section 16 of the Securities Exchange Act of 1934, as amended and any other officers of the Company designated by the Compensation Committee (each, an “Officer” and collectively, the “Officers”).

 

C.    Determination of Bonus Amounts

 

1.           The Compensation Committee has determined that each individual Officer will have an “Individual Bonus Percentage” and an “Individual Target Bonus” as defined below, which will vary depending on such Officer’s position and responsibilities in the Company.

 

2.           Bonuses payable will be determined based upon achievement of corporate financial targets (the “Corporate Targets”) and individual targets established for each Officer (the “Individual Targets”).  Achievement of the Corporate Targets will represent 80% of the total bonus, and achievement of the Individual Targets will represent 20% of the total bonus. The Corporate Targets shall be comprised of four financial targets: (1) total revenue (“Total Revenue Target”), (2) gross profit (“Gross Profit Target”), (3) operating expense (“Operating Expense Target”) and (4) net income (“Net Income Target”).  The actual quarterly Corporate Targets are set forth in the operating plan for the year ending December 31, 2011, and approved by the Board of Directors (the “2011 Operating Plan”).

 

3.           The Corporate Targets are weighted 10% for each of the Total Revenue Target, Gross Profit Target and Operating Expense Target, and 50% for the Net Income Target, for a total of 80% of the total bonus. The Individual Bonus Earned (as defined below) for each quarter will depend on the “Corporate Target Achievement Multiplier” which shall equal the sum of: (a) actual total revenue for such quarter divided by the Total Revenue Target for the quarter multiplied by 0.1; (b) actual gross profit for such quarter divided by the Gross Profit Target for the quarter multiplied by 0.1; (c) actual operating expense for such quarter divided by Operating Expense Target multiplied by 0.1; and (d) actual net income for such quarter divided by the Net Income Target multiplied by 0.5 (subject to Section 6 below).

 

  

  

  

 

4.            The determination of the quarterly bonus based on the achievement of the Total Revenue Target, Gross Profit Target and Operating Expense Target shall be subject to the following:

 

	
  

	
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The percentage of the bonus resulting from the achievement of the Total Revenue, Gross Profit Target and Operating Expense Target ranges from 80% to 120%.

 

	
  

	
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No portion of the quarterly bonus with respect to such Corporate Target will be paid if the achievement of such Corporate Target is less than 90% of the 2011 Operating Plan amount for such Corporate Target.

 

	
  

	
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At 90% achievement of the 2011 Operating Plan for such Corporate Target, 80% of the Quarterly Individual Target Bonus with respect to such Corporate Target shall be payable.

 

	
  

	
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At 120% achievement of the 2011 Operating Plan for such Corporate Target, 100% of the Quarterly Individual Target Bonus with respect to such Corporate Target shall be payable.

 

	
  

	
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At 150% achievement or greater of the 2011 Operating Plan for such Corporate Target, 120% of the Quarterly Individual Target Bonus with respect to such Corporate Target shall be payable.   This will be the maximum amount payable for each such Corporate Target.

 

	
  

	
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Accordingly, for each 1.5% increase in the performance for each Corporate Target against the 2011 Operating Plan over the minimum 90% threshold, the bonus will increase by 1% until a maximum bonus equal to 120% of the Quarterly Individual Target Bonus relating to such Corporate Target is earned.

 

	
  

	
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The parameters described above are summarized in the following table:

 

	
 

Total Revenue, Gross Profit, Operating Expense

	 
	
If achieve

	 	
<90

	%	 	 	90	%	 	 	100	%	 	 	120	%	 	 	150	%
	
Bonus

	 	 	0	%	 	 	80	%	 	 	86.67	%	 	 	100	%	 	 	120	%

 

4.           The determination of the quarterly bonus based on the achievement of the Net Income Target shall be subject to the following:

 

	
  

	
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The quarterly bonus based on the achievement of the Net Income Target shall be 0% of the Quarterly Individual Target Bonus (with respect to Net Income) when actual Net Income is less than 70% of the budgeted Net Income for such quarter under the 2011 Operating Plan.

 

  

  

  

 

	
  

	
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The quarterly bonus based on the achievement of the Net Income Target shall be 100% of the Quarterly Individual Target Bonus (with respect to Net Income) when actual Net Income is 100% of the budgeted Net Income for such quarter under the 2011 Operating Plan.

 

	
  

	
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For each percentage improvement in the actual Net Income for the quarter over the minimum 70% threshold, the percentage of the Quarterly Individual Target Bonus payable will increase by 1% up to a maximum total bonus payable of 120% of the Quarterly Individual Target Bonus (relating to Net Income) when actual Net Income is 120% or greater than the budgeted Net Income for such quarter set forth in the 2011 Operating Plan.

 

	
  

	
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The parameters described above are summarized in the following table:

 

	
Net Income

	 
	
If achieve

	 	
<70

	%	 	 	70	%	 	 	100	%	 	 	120	%
	
Bonus

	 	 	0	%	 	 	70	%	 	 	100	%	 	 	120	%

 

5.         The determination of the quarterly bonus shall also be subject to the following:

 

	
  

	
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In the event that actual Net Income is negative for any particular quarter, no bonus shall be payable for such quarter.

 

	
  

	
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In no event shall the achievement of any individual Corporate Target represent more than 120% of such Corporate Target for such quarter.  This means that the achievement of each of the Total Revenue Target, Gross Profit Target and Operating Expense Target shall not result in the payment of a bonus relating to such Corporate Target exceeding 12% of the Quarterly Individual Bonus Target in any quarter.   The Individual Targets shall not represent more than 20% of the Individual Bonus Earned by any Officer in any quarter.  Therefore, the maximum total quarterly bonus earned by any Officer in any quarter is 116% of the Quarterly Individual Target Bonus (the sum of 12% 12% 12% 60% and 20 %).

 

6.         Achievement of the Individual Targets, representing 20% of the Plan, shall be determined each quarter by the Chief Executive Officer for all Officers other than the Chief Executive Officer, pursuant to objectives established by the Chief Executive Officer for each such Officer. Achievement of the Individual Targets by the Chief Executive Officer shall be determined each quarter by the Compensation Committee, based upon objectives established by the Compensation Committee each quarter for the Chief Executive Officer.

 

  

  

  

 

D.    Individual Target Percentages

 

1.         “Individual Bonus Percentage” means the percentage of a respective Officer’s base salary that is targeted as a bonus payment under the Plan assuming exactly one hundred percent achievement by the Company of each of the Corporate Targets and Individual Targets (as defined below). The Individual Bonus Percentage for each Officer is set as a percentage of base salary and varies based upon the Officer’s position and responsibilities. The Individual Bonus Percentage for each Officer under the Plan is as follows:

 

	
Name

	 	
Target Bonus

	 
	
Morris S. Young

	 	 	75	 
	
Raymond Low

	 	 	45	 
	
Davis Zhang

	 	 	50	 
	
Robert Ochrym

	 	 	45	 
	
Hani Badawi

	 	 	28	 

 

2.         “Individual Target Bonus” for each fiscal year means the amount equal to a respective Officer’s base salary multiplied by such Officer’s Individual Bonus Percentage. The “Quarterly Individual Target Bonus” shall be the Individual Target Bonus divided by four. The “Individual Bonus Earned” means the amount equal to Individual Target Bonus multiplied by the Corporate Target Achievement Multiplier.

 

E.    Plan Changes

 

1.           The Board or the Compensation Committee may modify the financial performance goals at any time based on changes in business conditions during the year and may grant bonuses to Officers even if the financial performance goals are not met. In its discretion, the Compensation Committee may, either at the time it grants an award under the Plan or at any time thereafter, provide for the adjustment of the award formula applicable to an award granted to any participant under the Plan to reflect such participant’s individual performance in his or her position with the Company or such other factors as the Compensation Committee may determine. Notwithstanding the attainment of any performance goal under the Plan, the Compensation Committee shall have the discretion, on the basis of such criteria as it may establish, to reduce the amount of or to eliminate any final award that would otherwise be paid, and retains the absolute discretion to amend, modify or terminate the Plan at any time.

 

2.           Nothing in this Plan will interfere with or limit in any way the right of the Company or the right of any individual to terminate the employment relationship at any time, with or without cause.ex4_1.htm

Exhibit 4.1

Aurora Gold Corp. 

SUBSCRIPTION AGREEMENT

 The Offer and Sale of up to 10,000,000 Units 

 In Accordance with the Prospectus Dated <>, 2011 

 Offering Price - $0.30per Unit 

 Aurora Gold Corp., a Nevada corporation (the “Company’) is offering up to a maximum of 10,000,000 units (the “Units”) of its securities at an offering price of $0.30 per Unit. Each Unit consists of: 

	
  

	
·

	
one (1) share of the Company’s common stock, $0.001 par value per share (collectively, the “Unit Shares”); and,

	
  

	
 · 

	
 one Series A Stock Purchase Warrant (collectively, the “Series A Warrants”). 

 Each Series B Warrant entitles the holder to purchase one additional share of the Company’s common stock (the “Warrant Shares”) at a price of $0.40 for a period of one (1) year commencing April 1, 2011 through March 31, 2012. The Warrant Shares and the Unit Shares are collectively referred to as the “Securities.” 

The Securities are being offered and sold pursuant to the Prospectus dated _________, 2011 (the “Prospectus”) accompanying this Subscription Agreement.

In order to purchase Units, a prospective investor must complete and sign this Subscription Agreement and return it to the Company, along with the Aggregate Purchase Price.

1. Number of Units subscribed for: ______________________________________________

 2. Payment tendered (number of Units subscribed for multiplied by $0.30): _______________ (the “Aggregate Purchase Price”). 

Payment of the Aggregate Purchase Price can be made in cash or by check, bank draft or postal express money order payable to Aurora Gold Corp. or by wire transfer of funds as follows:

FORWARD THIS SUBSCRIPTION AGREEMENT TO AURORA GOLD CORP AT:

C/- Coresco AG

Level 3

Gotthardstrasse 20

6304 Zug

Switzerland

In connection with the offer and sale of the Units, the Company reserves the right, in its sole discretion, to reject any subscription in whole or in part for any reason whatsoever notwithstanding the tender of payment at any time prior to its acceptance of any subscriptions.

  

  

  

This Subscription Agreement does not constitute an offer to sell or a solicitation of any offer to buy any Shares by anyone in any jurisdiction in which such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation.

The shares have not been registered in the State of Delaware.  The sale of the shares pursuant to this Subscription Agreement in the State of Delaware shall be voidable by the Purchaser within three days after the receipt of consideration from such purchaser by the escrow agent.

Delaware residents hereby represent that they have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the investment in Aurora Gold Corp. and they are able to bear the economic risk to such investment.

SIGNATURE PAGE TO THE AURORA GOLD CORP.

SUBSCRIPTION AGREEMENT

	  	  	  
	
Signature

	  	
Date

	  	  	  
	  	  	  
	
Print Name of Purchaser

	  	
Soc. Sec. or Tax ID No.

	  	  	  
	  
	
Address for Delivery of Shares

	  	  
	  	  	  
	  
	
Telephone Number

	  	
Facsimile Number

	  	  	  
	  
	
Email Address

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