Document:

exv10w2

 

EXHIBIT 10.2

FOX & HOUND RESTAURANT GROUP.

1997 DIRECTORS STOCK OPTION PLAN

ARTICLE I

PURPOSE

          The purpose of the Fox & Hound Restaurant Group 1997 Directors Stock Option Plan (the “Plan”)
is to secure for Fox & Hound Restaurant Group. and its stockholders the benefits arising from stock
ownership by its Directors. The Plan will provide a means whereby such Directors may purchase
shares of the common stock, $.01 par value, of Fox & Hound Restaurant Group pursuant to options
granted in accordance with the Plan.

ARTICLE II

DEFINITIONS

     The following capitalized terms used in the Plan shall have the respective meanings set forth
in this Article:

     2.1 “Board” shall mean the Board of Directors of Fox & Hound Restaurant Group.

     2.2 “Chairman” shall mean the duly appointed Chairman of any standing Committee of the Board.

     2.3 “Committee” shall mean a duly appointed standing committee of the Board.

     2.4 “Company” shall mean Fox & Hound Restaurant Group and any of its subsidiaries.

     2.5 “Director” shall mean any person who is a member of the Board of Directors of the Company.

     2.6 “Eligible Director” shall be any Director who is not a full or part-time Employee of the
Company.

     2.7 “Exercise Price” shall mean the price per Share at which an Option may be exercised.

     2.8 “Fair Market Value” shall mean the closing sales price of a Share as quoted on the
National Association of Securities Dealers Automated Quotation (“Nasdaq”) National Market System on
the Grant Date or on the preceding date on which such Shares are traded if no Shares were traded on
such Grant Date. If the Shares are not quoted on the Nasdaq National Market System, Fair Market
value shall be deemed to be the average of the high bid and asked prices of the Shares on the
over-the-counter market on the Grant Date, or the next preceding date on which the last prices were
recorded. With respect to Options granted on or before the effective date of the Company’s initial
public offering pursuant to a Registration Statement on Form S-1, the Fair Market Value shall be
deemed to be the initial public offering price of the Shares.

     2.9 “Grant Date” shall mean the Initial Grant Date or any other date that an Option shall be
granted pursuant to the Plan as appropriate.

     2.10 “Initial Grant Date” shall mean with respect to each Eligible Director the date such
Eligible Director is first elected as a member of the Board.

     2.11 “Option” shall mean an Option to purchase Shares granted pursuant to the Plan.

     2.12 “Option Agreement” shall mean the written agreement described in Article VI herein.

     2.13 “Permanent Disability” shall mean the condition of an Eligible Director who is unable to
participate as a member of the Board by reason of any medically determined physical or mental
impairment which can be expected to result in death or which can be expected to last for a
continuous period of not less than twelve (12) months.

     2.14 “Purchase Price” shall be the Exercise Price multiplied by the number of whole Shares
with respect to which an Option may be exercised.

A-1

 

     2.15 “Shares” shall mean shares of common stock $.01 par value of the Company.

     2.16 “Subsequent Grant Date” shall mean the anniversary date of the appointment of an Eligible
Director to the Board.

ARTICLE III

ADMINISTRATION

     3.1 General. This Plan shall be administered by the Board in accordance with the express
provisions of this Plan.

     3.2 Powers of the Board. The Board shall have full and complete authority to adopt such rules
and regulations and to make all such other determinations not inconsistent with the Plan as may be
necessary for the administration of the Plan.

ARTICLE IV

SHARES SUBJECT TO PLAN

     Subject to adjustment in accordance with Article IX an aggregate of 150,000 Shares is reserved
for issuance under this Plan. Shares sold under this Plan may be either authorized, but unissued
Shares or reacquired Shares. If an Option, or any portion thereof, shall expire or terminate for
any reason without having been exercised in full, the unpurchased Shares covered by such Option
shall be available for future grants of Options.

ARTICLE V

GRANTS

     5.1 Initial Grants. On the Initial Grant Date, each Eligible Director shall receive the grant
of an option to purchase 10,000 Shares.

     5.2 Subsequent Grants. On each Subsequent Grant Date, each Eligible Director shall receive the
grant of an Option to purchase 3,000 Shares.

     5.3 Compliance With Rule 16b-3. The terms for the grant of Options to an Eligible Director may
only be changed if permitted under Rule 16b-3 of the Securities Exchange Act of 1934, as amended,
and accordingly the formula for the grant of Options may not be changed or otherwise modified more
than once in any six month period.

ARTICLE VI

TERMS OF OPTION

     Each Option shall be evidenced by a written Option Agreement executed by the Company and the
Eligible Director which shall specify the Grant Date, the number of Shares subject to the Option,
the Exercise Price and shall also include or incorporate by reference the substance of all of the
following provisions and such other provisions consistent with this Plan as the Board may
determine.

     6.1 Term. The term of the Option shall be five (5) years from the Grant Date of each Option,
subject to earlier termination in accordance with Articles VI and X.

     6.2 Restriction on Exercise. Options shall be exercisable at such time or times and subject to
such terms and conditions as shall be determined by the Committee at grant, provided, however, that
except in the case of the Eligible Director’s death or Permanent Disability, upon which events the
Option will become immediately exercisable, unless a longer vesting period is otherwise determined
by the Committee at grant, Options shall be exercisable as follows: up to one-third of the
aggregate Shares purchasable under an Option shall be exercisable commencing one year after the
Grant Date, an additional one-third of the Shares purchasable under an Option shall be exercisable
commencing two years after the Grant Date and the balance commencing on the third anniversary from
the Grant Date. The Committee may waive such installment exercise provision at any time in whole or
in part based on performance and/or such other factors as the Committee may determine in its sole
discretion, provided, however, that no Option shall be exercisable until more than six months have
elapsed from the Grant Date.

 

 

     6.3 Exercise Price. The Exercise Price for each Share subject to an Option shall be the Fair
Market Value of the Share as determined in Section 2.8 herein.

     6.4 Manner of Exercise. An Option shall be exercised in accordance with its terms, by delivery
of a written notice of exercise to the Company and payment of the full purchase price of the Shares
being purchased. An Eligible Director may exercise an Option with respect to all or less than all
of the Shares for which the Option may then be exercised, but a Director must exercise the Option
in full Shares.

     6.5 Payment. The Purchase Price of Shares purchased pursuant to an Option or portion thereof,
may be paid:

     (a) in United States Dollars, in cash or by check, bank draft or money order payable to the
Company;

     (b) by delivery of Shares already owned by an Eligible Director with an aggregate Fair Market
Value on the date of exercise equal to the Purchase Price, subject to the provisions of Section
16(b) of the Securities Exchange Act of 1934;

     (c) through the written election of the Eligible Director to have Shares withheld by the
Company from the Shares otherwise to be received with such withheld Shares having an aggregate Fair
Market Value on the date of exercise equal to the Purchase Price.

     6.6 Transferability of Options. No Option granted hereunder shall be transferable otherwise
than by (i) will, (ii) the laws of descent and distribution or (iii) pursuant to a qualified
domestic relations order as defined by the Internal Revenue Code or Title 1 of the Employee
Retirement Income Security Act of 1986, as amended, or the rules and regulations promulgated
thereunder; provided however, that to the extent the option agreement provisions do not disqualify
such option for exemption under Rule 16b-3 under the Act of 1934, as amended, Options may be
transferable during an Optionee’s lifetime to immediate family members of an optionee, partnerships
in which the only partners are members of the Optionee’s immediate family, and trusts established
solely for the benefit of such immediate family members.

     6.7 Termination of Membership on the Board. If an Eligible Director’s membership on the Board
terminates for any reason, any vested Option held on the date of termination may be exercised in
whole or in part at any time within one (1) year after the date of such termination (but in no
event after the term of the Option expires) and shall thereafter terminate.

ARTICLE VII

GOVERNMENT AND OTHER REGULATIONS

     7.1 Delivery of Shares. The obligation of the Company to issue or transfer and deliver Shares
for exercised Options under the Plan shall be subject to all applicable laws, regulations, rules,
orders and approvals which shall then be in effect.

     7.2 Holding of Stock After Exercise of Option. The Option Agreement shall provide that the
Eligible Director, by accepting such Option, represents and agrees, for the Eligible Director and
his permitted transferees hereunder that none of the Shares purchased upon exercise of the Option
shall be acquired with a view to any sale, transfer or distribution of the Shares in violation of
the Securities Act of 1933, as amended (the “Act”) and the person exercising an Option shall
furnish evidence satisfactory to that Company to that effect, including an indemnification of the
Company in the event of any violation of the Act by such person. Notwithstanding the foregoing, the
Company in its sole discretion may register under the Act the Shares issuable upon exercise of the
Options under the Plan.

ARTICLE VIII

WITHHOLDING TAX

     The Company may in its discretion, require an Eligible Director to pay to the Company, at the
time of exercise of an Option an amount that the Company deems necessary to satisfy its obligations
to withhold federal, state or

 

 

local income or other taxes (which for purposes of this Article includes an Eligible
Director’s FICA obligation) incurred by reason of such exercise. When the exercise of an Option
does not give rise to the obligation to withhold federal income taxes on the date of exercise, the
Company may, in its discretion, require an Eligible Director to place Shares purchased under the
Option in escrow for the benefit of the Company until such time as federal income tax withholding
is required on amounts included in the Eligible Director’s gross income as a result of the exercise
of an Option. At such time, the Company, in its discretion, may require an Eligible Director to pay
to the Company an amount that the Company deems necessary to satisfy its obligation to withhold
federal, state or local taxes incurred by reason of the exercise of the Option, in which case the
Shares will be released from escrow upon such payment by an Eligible Director.

ARTICLE IX

ADJUSTMENTS

     9.1 Proportionate Adjustments. If the outstanding Shares are increased, decreased, changed
into or exchanged into a different number or kind of Shares or securities of the Company through
reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock
split or other similar transaction, an appropriate and proportionate adjustment shall be made to
the maximum number and kind of Shares as to which Options may be granted under this Plan. A
corresponding adjustment changing the number or kind of Shares allocated to unexercised Options or
portions thereof, which shall have been granted prior to any such change, shall likewise be made.
Any such adjustment in the outstanding Options shall be made without change in the Purchase Price
applicable to the unexercised portion of the Option with a corresponding adjustment in the Exercise
Price of the Shares covered by the Option. Notwithstanding the foregoing, there shall be no
adjustment for the issuance of Shares on conversion of notes, preferred stock or exercise of
warrants or Shares issued by the Board for such consideration as the Board deems appropriate.

     9.2 Dissolution or Liquidation. Upon the dissolution or liquidation of the Company, or upon a
reorganization, merger or consolidation of the Company with one or more corporations as a result of
which the Company is not the surviving corporation, or upon a sale of substantially all of the
property or more than 80% of the then outstanding Shares of the Company to another corporation, the
Company shall give to each Eligible Director at the time of adoption of the plan for liquidation,
dissolution, merger or sale either (1) a reasonable time thereafter within which to exercise the
Option prior to the effective date of such liquidation or dissolution, merger or sale, or (2) the
right to exercise the Option as to an equivalent number of Shares of stock of the corporation
succeeding the Company or acquiring its business by reason of such liquidation, dissolution,
merger, consolidation or reorganization.

ARTICLE X

AMENDMENT OR TERMINATION OF PLAN

     10.1 Amendments. The Board may at any time amend or revise the terms of the Plan, provided no
such amendment or revision shall, unless appropriate stockholder approval of such amendment or
revision is obtained:

          (a) increase the maximum number of Shares which may be sold pursuant to Options granted under
the Plan, except as permitted under the provisions of Article IX;

          (b) change the minimum Exercise Price set forth in Article VI;

          (c) increase the maximum term of Options provided for in Article VI; or

          (d) permit the granting of Options to any one other than as provided in Article V.

     10.2 Termination. The Board at any time may suspend or terminate this Plan. This Plan, unless
sooner terminated, shall terminate on the tenth (10th) anniversary of its adoption by the Board. No
Option may be granted under this Plan while this Plan is suspended or after it is terminated.

     10.3 Holder of Consent. No amendment, suspension or termination of the Plan shall, without the
consent of the holder of Options, alter or impair any rights or obligations under any Option
theretofore granted under the Plan.

 

 

ARTICLE XI

MISCELLANEOUS PROVISIONS

     11.1 Privilege of Stock Ownership. No Eligible Director entitled to exercise any Option
granted under the Plan shall have any of the rights or privileges of a stockholder of the Company
with respect to any Shares issuable upon exercise of an Option until certificates representing the
Shares shall have been issued and delivered.

     11.2 Plan Expenses. Any expenses incurred in the administration of the Plan shall be borne by
the Company.

     11.3 Use of Proceeds. Payments received from an Eligible Director upon the exercise of Options
shall be used for general corporate purposes of the Company.

     11.4 Governing Law. The Plan has been adopted under the laws of the State of Delaware. The
Plan and all Options which may be granted hereunder and all matters related thereto, shall be
governed by and construed and enforceable in accordance with the laws of the State of Delaware as
it then exists.

ARTICLE XII

STOCKHOLDER APPROVAL

     This Plan is subject to approval at a duly held stockholders’ meeting within twelve (12)
months after the date the Board approves this Plan, by the affirmative vote of holders of a
majority of the voting Shares of the Company represented in person or by proxy and entitled to vote
at the meeting. Options may be granted, but not exercised, before such stockholder approval. If the
stockholders fail to approve the Plan within the required time period, any Options granted under
this Plan shall be void, and no additional Options may thereafter be granted.

 

 

FIRST AMENDMENT

TO

FOX & HOUND RESTAURANT GROUP

1997 DIRECTORS STOCK OPTION PLAN

     1. The first sentence of Article IV of the Fox & Hound Restaurant Group 1997 Directors Stock
Option Plan (the “Plan”), is hereby amended by replacing it with the following sentence:

Subject to adjustment in accordance with Article IX hereof, an aggregate of 400,000 Shares of
Common Stock, $0.01 par value (“Stock”) of the Company shall be subject to the Plan.

     2. Except as modified by Paragraph 1 above, the Plan shall remain in full force and effect.

     3. The foregoing First Amendment to the Fox & Hound Restaurant Group 1997 Directors Stock
Option Plan was duly adopted by the Board of Directors of Fox & Hound Restaurant Group (the
“Company”) on January 10, 2002, and approved by the Company’s stockholders at the Company’s annual
stockholder meeting on May 17, 2002.

 

 

SECOND AMENDMENT

TO

FOX & HOUND RESTAURANT GROUP

1997 DIRECTORS STOCK OPTION PLAN

          1. Section 5.2 of Article V of the Fox & Hound Restaurant Group 1997 Directors Stock Option
Plan, as amended by that certain First Amendment dated January 14, 1999 (the “Plan”), is hereby
amended by deleting it in its entirety and replacing it with the following sentence:

5.2 Subsequent Grants. On April 30, 2003 through April 30, 2005, each Eligible Director
shall receive Option grants as follows:

April 30, 2003 – Each Eligible Director shall receive a grant to purchase shares
equal to the greater of 1) $91,667 divided by the Fair Market Value or 2) 7,500
shares.

April 30, 2004 – Each Eligible Director shall receive a grant to purchase shares
equal to the greater of 1) $100,833 divided by the Fair Market Value or 2) 7,500
shares.

April 30, 2005 – Each Eligible Director shall receive a grant to purchase shares
equal to the greater of 1) $110,917 divided by the Fair Market Value or 2) 7,500
shares.

          2. Except as modified by Paragraph 1 above, the Plan shall remain in full force and effect.

          3. The foregoing Second Amendment to the Fox & Hound Restaurant Group 1997 Directors Stock
Option Plan was duly adopted by the Board of Directors of Fox & Hound Restaurant Group (the
“Company”) on April 10, 2002.

 

 

Exhibit 10.2

THIRD AMENDMENT

TO

FOX & HOUND RESTAURANT GROUP

1997 DIRECTORS STOCK OPTION PLAN

          1. Section 5.2 of Article V of the Fox & Hound Restaurant Group 1997 Directors Stock Option
Plan, as amended by that certain First Amendment dated January 14, 1999 and that certain Second
Amendment dated April 10, 2002 (the “Plan”), is hereby amended by deleting it in its entirety and
replacing it with the following sentence:

5.2 Subsequent Grants. On each Subsequent Grant Date, each Eligible Director shall receive
the grant of an Option to purchase 10,000 Shares.

          2. Except as modified by Paragraph 1 above, the Plan shall remain in full force and effect.

          3. The foregoing Second Amendment to the Fox & Hound Restaurant Group 1997 Directors Stock
Option Plan was duly adopted by the Board of Directors of Fox & Hound Restaurant Group (the
“Company”) on October 4, 2004.

 

 

Exhibit 10.2

FOURTH AMENDMENT

TO

FOX & HOUND RESTAURANT GROUP

1997 DIRECTORS STOCK OPTION PLAN

1. The first sentence of Article IV of the Total Entertainment Restaurant Corp 1997 Directors Stock
Option Plan, as amended by that certain First Amendment dated January 14, 1999, that certain Second
Amendment dated April 10, 2002, and that certain Third Amendment dated October 4, 2004 (the
“Plan”), is hereby amended by replacing it with the following sentence:

Subject to adjustment in accordance with Article IX hereof, an aggregate of 500,000 Shares
of Common Stock, $0.01 par value (“Stock”) of the Company shall be subject to the Plan.

2. Except as modified by Paragraph 1 above, the Plan shall remain in full force and effect.

3. The foregoing Fourth Amendment to the Fox & Hound Restaurant Group 1997 Directors Stock Option
Plan was duly adopted by the Board of Directors of Fox & Hound Restaurant Group (the “Company”) on
March 8, 2005, and approved by the Company’s stockholders at the Company’s annual stockholder
meeting on May 17, 2005.exv10w01

 

Exhibit 10.01

Silicon Image, Inc.

Bonus Plan for Fiscal Year 2005

As amended July 19, 2005

1. Purpose

     The purpose of this Bonus Plan (this “Plan”) is to provide financial incentives for certain
executive1 and non-executive2 employees (“Executives” and “Non-Executives”,
respectively) of Silicon Image, Inc. (the “Company”) to meet and exceed the Company’s annual
financial goals.

2. Eligibility

     Executives and Non-Executives of the Company selected by the Committee (the “Participants” and
each a “Participant”) shall be eligible to participate in this Plan; provided however, that neither
Executives and Non-Executives who are entitled to participate in any Company sales incentive plan
nor employees hired after September 30, 2005 are eligible to participate in this Plan.
Participation in this Plan is on a fiscal year basis and in the sole discretion of the Compensation
Committee of the Company’s Board of Directors (the “Committee”).

3. Administration

     a. This Plan shall be administered by the Committee which may delegate specific administrative
tasks to others as appropriate for administration of this Plan.

     b. Subject to the provisions of this Plan, the Committee shall have exclusive authority to
designate Participants, the amount of each award under this Plan (“Award”), the date when any
performance goals are measured, and the date when Awards (if any) will be paid.

     c. The Committee shall have all discretion and authority necessary or appropriate to
administer this Plan, including, but not limited to, the power to interpret this Plan, to
prescribe, amend and rescind rules and regulations relating to it, and to make all other
determinations necessary or advisable in the administration of this Plan, and such determination
shall be final and binding upon all persons having an interest in this Plan.

     d. A majority of the Committee shall constitute a quorum, and the acts of a majority of the
members present at a meeting at which a quorum is present or any action taken without a meeting by
a writing executed by all of the members of the Committee shall constitute the act of the
Committee.

     e. All expenses and liabilities incurred by the Committee in the administration of this Plan
shall be borne by the Company. The Committee may employ attorneys, consultants, accountants, or
other persons. The Committee and the Company and its officers and directors shall be entitled to
rely upon the advice, opinion, or valuations of any such persons. No member of the Committee shall
be personally liable for any action, determination, or interpretation taken or made with respect to
this Plan, unless such action, determination, or interpretation constitutes criminal misconduct or
willful negligence or demonstrates bad faith, and all members of the Committee shall be fully
protected by the Company in respect of any such action, determination or interpretation.

 

	1	 	“Executive” means an employee of
the Company at the level of Vice President or above employed by the Company or
any affiliated Company as determined by the Committee.
	 
	2	 	“Non-Executive” means an employee
of the Company, other than an Executive, employed by the Company or any
affiliated Company as determined by the Committee.

 

 

4. Bonus Pool Establishment and Allocation

     Subject to the terms and conditions of this Plan, the Company will establish a cash bonus pool
if either:

	 	•	 	year-to-date actual revenue3 for the fiscal year ended December 31, 2005
(“Actual Revenue”) equals or exceeds the planned revenue for the fiscal year (“Target
Revenue”) established in the Annual Operating Plan approved by the Board of Directors
(“Annual Operating Plan”); or
	 
	 	•	 	year-to-date earnings per share (calculated on a non-GAAP4 basis) for
the fiscal year ended December 31, 2005 (“Actual EPS”) equals or exceeds the planned
earnings per share (calculated on a non-GAAP basis) for the fiscal year (“Target EPS”)
established in the Annual Operating Plan.

If both Actual Revenue and Actual EPS do not equal or exceed Target Revenue and Target EPS,
respectively then no cash bonus pool will be established.

     4.1 Executive Participants’ Bonus Pool

     The amount of the cash bonus pool for Executive Participants will be equal to a function of
the extent to which Actual Revenue equals or exceeds Target Revenue and/or Actual EPS equals or
exceeds the Target EPS, as applicable, determined as follows.

For Executive Participants

	 	 	 	 	 
	Percent Achievement of Annual Year-	 	Multiplier Factor (as percentage of	 	Estimated Pool Attributable to
	to-Date Revenue	 	100% achievement level)	 	Revenue Attainment5
	Below 100%
	 	0.0%	 	$0
	100% to 105%
	 	100.0%	 	$768,560
	105% to 110%
	 	125.0%	 	$960,700
	110% to 115%
	 	150.0%	 	$1,152,840
	115% to 125%
	 	175.0%	 	$1,344,980
	125% and above
	 	200.0%	 	$1,537,120

	 	 	 	 	 
	Percent Achievement of Annual Year-	 	Multiplier Factor (as percentage of	 	Estimated Pool Attributable to
	to-Date Earnings Per Share	 	100% achievement level)	 	Earnings Per Share Attainment5
	Below 100%
	 	0.0%	 	$0
	100% to 105%
	 	100.0%	 	$768,560
	105% to 110%
	 	125.0%	 	$960,700
	110% to 115%
	 	150.0%	 	$1,152,840
	115% to 125%
	 	175.0%	 	$1,344,980
	125% and above
	 	200.0%	 	$1,537,120

 

	3	 	Represents the Company’s total product,
development, licensing and royalty revenues for fiscal year 2005 as reported in
the Company’s financial statements.
	 
	4	 	Earnings per share calculated on a non-GAAP
basis is not calculated in accordance with Generally Accepted Accounting
Principles (GAAP) and excludes stock compensation expense/(benefit),
amortization of intangible assets, patent defense costs, acquisition
integration costs, restructuring costs, gain/(loss) on derivative/investment
securities, gains on escrow settlement, in-process research and development and
other unusual or infrequent income and expenses that are not directly
attributable to ongoing operations and are expected to be non-recurring or to
be incurred over a limited period of time.
	 
	5	 	These are estimated amounts. Actual 100% achievement level amounts will
be calculated based on the number of eligible employees, base salaries and target bonus
levels (expressed as a percentage of base salary ranging from 7-70% depending on employee
level) as of December 31, 2005 (subject to any applicable proration adjustments for partial-year service).

 

 

     The amounts of Awards, if any, allocable to individual Executive Participants will be determined by the Committee
in its sole discretion and may be less than, equal to or greater than target bonus levels.

     4.2 Non-Executive Participants’ Bonus Pool

     The amount of the cash bonus pool for Non-Executive Participants will be equal to a function of the extent to which
Actual Revenue equals or exceeds Target Revenue and/or Actual EPS equals or exceeds the Target EPS, as applicable,
determined as follows.

For Non-Executive Participants

	 	 	 	 	 
	Percent Achievement of Annual Year-	 	Multiplier Factor (as percentage of	 	Estimated Pool Attributable to
	to-Date Revenue	 	100% achievement level)	 	Revenue Attainment6
	Below 100%
	 	0.0%	 	$0
	100% to 105%
	 	100.0%	 	$1,767,745
	105% to 110%
	 	125.0%	 	$2,209,682
	110% to 115%
	 	150.0%	 	$2,651,618
	115% to 125%
	 	175.0%	 	$3,093,554
	125% and above
	 	200.0%	 	$3,535,491

	 	 	 	 	 
	Percent Achievement of Annual Year-	 	Multiplier Factor (as percentage of	 	Estimated Pool Attributable to
	to-Date Earnings Per Share	 	100% achievement level)	 	Earnings Per Share Attainment6
	Below 100%
	 	0.0%	 	$0
	100% to 105%
	 	100.0%	 	$1,767,745
	105% to 110%
	 	125.0%	 	$2,209,682
	110% to 115%
	 	150.0%	 	$2,651,618
	115% to 125%
	 	175.0%	 	$3,093,554
	125% and above
	 	200.0%	 	$3,535,491

     The amounts of Awards, if any, allocable to individual Non-Executive Participants will be
determined by Company management and submitted to the Committee for approval and may be less than,
equal to or greater than target bonus levels.

5. Payment

     Awards under this Plan will distributed as soon as reasonably practicable following (i) public
disclosure of the Company’s financial results for the fiscal year ended December 31, 2005, (ii)
calculation of Actual EPS and (iii) any determination of the amounts of the bonus pool applicable
to Executive Participants and Non-Executive Participants. Participants must be employed by the
Company as employees at the time of distribution in order to be eligible to receive payment of
Awards, unless otherwise determined by the Compensation Committee. Participants hired prior to
January 1, 2005 shall be eligible to receive payment of a full Award. Participants hired by the
Company after January 1, 2005 but on or prior to September 30, 2005 shall be eligible to receive
payment of a pro-rated Award (based on the full days of such Participant’s employment).
Participants hired after September 30, 2005 shall not be eligible to receive payment of an Award.
The Committee may impose additional eligibility requirements on payment of any Awards in its sole
discretion. It is the objective of the Committee that the entire calculated pool be distributed to
eligible Participants.

 

	6	 	These are estimated amounts. Actual 100%
achievement level amounts will be calculated based on the number of eligible
employees, base salaries and target bonus levels (expressed as a percentage of
base salary ranging from 7-70% depending on employee level) as of December 31,
2005 (subject to any applicable proration adjustments for partial-year
service).

 

 

6. General Provisions

     a. No Prior Funding

     No amounts payable under this Plan shall be funded, set aside or otherwise segregated prior to
payment. The obligation to pay the Awards shall at all times be an unfunded and unsecured
obligation of the Company and the Company shall not be required to incur indebtedness to fund the
bonus pool unless otherwise directed to do so by the Committee. Participants shall have the status
of general creditors. This Plan is not qualified under Section 401(a) of the Internal Revenue Code
of 1986, as amended, and is not subject to any provisions of the Employee Retirement Income
Security Act of 1974.

     b. No Obligation to Employ

     Eligibility for participation in this Plan is not evidence of, nor does it constitute, a
contract of employment between the Company and any individual. Nothing in this Plan will confer or
be deemed to confer on any individual any right to continue in the employ of the Company or limit
in any way the right of the Company to terminate an individual’s employment at any time, with or
without cause. This Plan is not intended to and does not create any legal rights for any employee.

     c. Amendment or Termination of Plan

     This Plan may be amended or terminated by the Board or the Committee at any time prior to
payment of Awards hereunder.

     d. Headings

     The headings of the sections hereof are inserted for convenience only and shall not be deemed
to constitute a part hereof nor to affect the meaning thereof.

     e. Withholding of Taxes

     To the extent that the Company is required to withhold federal, state, local or foreign taxes
in connection with any benefit realized by a Participant under this Plan, and the amounts available
to the Company for such withholding are insufficient, it will be a condition to the realization of
such benefit that the Participant make arrangements satisfactory to the Company for payment of the
balance of such taxes required or requested to be withheld.

     f. Choice of Law

     All questions concerning the construction, validity and interpretation of this Plan will be
governed by the law of the State of California. Any Award will not be effective unless such Award
is made in compliance with all applicable laws, rules and regulations.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}]]