Document:

exv10w33

 

Exhibit 10.33

Executive Incentive Plan

Overview and Purpose

Callidus’s incentive plan was created as a means to recognize and reward the link between
the achievement of Callidus’s corporate objectives and the executive’s contribution to this
success. The plan is designed to motivate executives to achieve performance goals by placing
compensation “at risk” based on performance. The specific purpose of the plan is to:

	 	•  	Align the risks/rewards for the senior management team to achieve
Callidus’ top business priorities, and
	 
	 	•  	Motivate and retain executives by providing above market
compensation opportunities for achieving stretch goals.

The plan aligns Callidus’ business strategy and human resources strategies to motivate,
develop, retain and competitively compensate executives based on performance.

Objectives

Our incentive plan supports our compensation philosophy and guiding principles by meeting
four primary objectives:

	 	•  	Provide competitive total pay opportunities that help attract,
reward and retain executives.
	 
	 	•  	Establish a direct link between operational performance that creates
shareholder value and individual performance and rewards.
	 
	 	•  	Create a sense of focus and accountability through the development
of specific objectives.
	 
	 	•  	Align interests and objectives of shareholders and executives to
drive Company growth and stock appreciation.

Performance Period

The fiscal year is divided into two, six-month performance periods, January to June and
July to December.

Eligibility and Participation

Executives who are employed at the end of the performance period are considered eligible
to participate and receive an award under the plan. An executive must be in good performance
standing to be eligible for any award under the plan.

Performance Measures

The Plan rewards performance as measured against Callidus’ financial performance and
individual performance as measured against a pre-defined set of objectives (MBOs) (e.g., financial
contribution, product/ project deliverables/ improvement, etc.). Overall company

 

 

Executive Incentive Plan

performance for Callidus will be measured versus plan as approved by the Board of
Directors. The Compensation Committee of the Board will select and approve the financial measures
based on the business priorities for the fiscal year. Measures may include revenue, revenue
growth, operating income, net income, return on investment, cash from operations, or any financial
metric deemed appropriate for the business year. In the first year of the Plan, the metrics will
be revenue and operating income for measuring company performance. Exhibit A attached to the Plan
provides the performance levels for the first operating period under the plan. Individual
performance measures will be determined by the Callidus CEO in conjunction with each executive. The
Callidus CEO will determine the level of attainment at the end of the period and submit his (her)
findings to the Compensation committee for their review and final approval.

Award Pool Funding

The first step in the process is for the Company to build a funding pool following the
measurement of the company’s performance. This pool is the amount of total dollars that are
available for incentive awards for the executive team. The Board bases the pool on Callidus’
financial performance for the year against the key metrics approved in the business plan.

The company must meet a minimum level of performance, referred to as the threshold, to
initiate funding in the pool. Threshold performance is met when the company has achieved
approximately 75 to 85% of plan based on the specific financial metrics. Company performance
represents 75% of the funding pool for the plan.

The remaining portion of the pool is based on individual performance that is weighted 25% of
the target incentive opportunity for each eligible position. (See Individual Awards below)

For purposes of illustration, assume that there are 10 executives with identical earned
salaries of $200,000 for the fiscal year. Also assume that the target award opportunity is 50% of
base salary for each position, or $100,000. Therefore, the executive bonus pool would be $1,000,000
at target company performance assuming 100% achievement of individual performance levels.

Determining Individual Awards

Once the award pool is funded, the CEO completes the semi-annual performance review
process for each executive and reviews with the Compensation Committee to determine the executive’s
performance versus his or her MBO’s. Individual performance award payouts may range from 0% to 25%
of the target incentive opportunity based on the executive’s performance as assessed in the review
process. Seventy-five percent of the individual’s award is based on the company’s performance
against the pre-approved financial metrics identified in Exhibit “A”.

This approach is consistent with Callidus’ commitment to a pay-for-performance philosophy and
culture. Callidus’ Board of Directors maintains the discretion to determine any funding of the
plan if the company’s performance does not meet threshold levels or if the company significantly
exceeds plan.

 

 

Executive Incentive Plan

Administration

An executive must be with the company for the entire performance period, and be in good
performance standing during the entire performance period, to be eligible for an award under the
plan.

Awards will be paid as soon as possible following the close of the performance period and once
final performance is know for the company and approved by the Board of Directors. Incentive awards
are subject to all applicable payroll taxes.

Callidus reserves the right to modify the plan, and individual awards, at any time. You will
be notified of any plan changes.

Acknowledgement

My signature below indicates that I have received a copy of the plan and that my target
incentive opportunity has been communicated to me.

Employee
Signature
                          Date

Manager
Signature
                          Date<PAGE>
                                                                   EXHIBIT 10.15
                               SEVERANCE AGREEMENT

         This SEVERANCE AGREEMENT ("Agreement") is made and entered into by and
between U.S. MedSys Corp. ("Company") and George Anagnost ("Anagnost").

         WHEREAS, Anagnost has served as a director of Company and its
subsidiaries and has been employed by Company as an officer of Company and its
subsidiaries;

         WHEREAS, Company and Anagnost desire to terminate the employment
relationship, as well as Anagnost's seat on Company's board of directors, upon
mutually acceptable terms and to settle any and all differences, claims and
potential claims arising out of (i) Anagnost's employment and termination of
employment with Company, and (ii) Anagnost's resignation of his seats on the
board of directors of the Company and its subsidiaries;

         NOW THEREFORE, in consideration of the mutual promises and other
consideration contained herein and intending to be legally bound, the parties
agree as follows:

         1. Severance. Anagnost hereby resigns, effective on the date of the
closing date of the Securities Purchase Agreement between Rangeley Corporation
and Montague Investments, Inc. (the "Resignation Date"), from the following
positions: (i) a director of Company; (ii) an officer of Company; and (iii) a
director and officer of any of Company's subsidiaries.

         2. Consideration Provided to Anagnost. On the Resignation Date, Company
shall pay to Anagnost, in a lump sum without deduction, offset or withholding of
taxes, the amount of $18,750.00. Anagnost shall be responsible for the payment
of any taxes due on this payment.

Anagnost presently holds an option, originally granted on November 3, 2003, to
purchase 250,000 shares of common stock of the Company at a purchase price of
$.25 per share, that may be exercised on a "cashless exercise" basis (as fully
described in the Grant of Option issued to Anagnost). On the Resignation Date,
Company shall adjust the purchase price of the option to a price per share that
will result in the issuance of exactly 175,000 shares of common stock on a
cashless exercise basis, and Anagnost shall exercise the option on such basis
and Company shall issue 175,000 shares of common stock to Anagnost. It is
understood that, for purposes of Rule 144 of the Securities Act of 1933, as
amended, Anagnost's holding period will be deemed to have commenced on November
3, 2003.

         3. Anagnost's Release of All Claims. In consideration of this
Agreement, including, but not limited to, the mutual, binding promises contained
herein, and intending to be legally bound thereby, Anagnost, on behalf of
himself, his executors, legatees, devisees, administrators successors, and
assigns, does hereby irrevocably, forever and unconditionally release and
forever discharge Company and each of its past, present and future stockholders,
agents, directors, officers, executives, representatives, attorneys, and its
predecessors, successors, parents, affiliates, insurers, heirs, executors,
administrators and assigns, and all persons acting by, through, under or in
concert with any of them (collectively referred to herein as the "Released
Parties"), of and from any and all actions, causes of action, suits, debts,
judgments, charges and expenses (including attorneys' and paralegal fees and
costs at all levels of dispute resolution), of any nature whatsoever, asserted
or unasserted, known or unknown, ("Claims"), which Anagnost ever had, now has,
or hereafter may have against the Released Parties, in any way arising out of or
related to Anagnost's Claims for compensation or remuneration through the
Resignation Date.

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In expansion of the foregoing release, Anagnost releases and forever discharges
any and all Claims he may have had against such Released Parties in any way
arising out of or related to discrimination on any basis prohibited by statute,
public policy or otherwise, including those under the Age Discrimination in
Employment Act of 1967, 29 U.S.C. 621 et seq., Title VII of the Civil Rights Act
of 1964 ("Title VII"), 42 U.S.C. 2000 et seq., 2101 et seq., the Americans with
Disabilities Act ("ADA") 42 U.S.C. 1201 et seq., the federal Family and Medical
Leave Act, 29 U.S.C. 2601 et seq., and the Executive Retirement Income Security
Act of 1974, 29 U.S.C. 1001 et seq., and as any or all of the foregoing are or
may be amended.

Expanding the foregoing releases further still, Anagnost releases Released
Parties of and from any and all Claims for wrongful discharge of any kind
(including in violation of public policy and constructive discharge).

         4. Company's Release of all Claims. As part of the consideration for
Anagnost entering into this Agreement, Company for and on behalf of itself and
all of its past, present and future subsidiaries, parent corporations,
affiliates, directors, officers, executives, representatives, attorneys,
insurers, heirs, executors, administrators, assigns, and agents, and all persons
acting by, through, under or in concert with any of them, does hereby
irrevocably, forever and unconditionally release and forever discharge Anagnost,
his personal representatives, heirs, legatees, devisees, administrators,
successors, assigns, and future employers, and all persons acting by, through,
under or in concert with any of them (collectively referred to herein as the
"Released Parties"), of and from any and all Claims which Company ever had, now
has, or hereafter may have against the Released Parties, in any way arising out
of or related to Anagnost's employment and/or other service and/or capacity with
Company or any of its subsidiaries or affiliated entities or the termination of
his employment and/or other services and/or capacities with Company and its
subsidiaries and affiliated entities.

         5. Assumption of Risk of Change in Facts. Anagnost and Company
understand that the facts under which they give their releases hereunder may
prove to be different than now known or believed by them, and each accepts and
assumes the risk thereof and agrees that their releases shall remain in full
force and effect and not subject to modification, termination or rescission by
reason of any difference in facts.

         6. Covenant Not to Sue. Subject to full performance of the other
party's obligations under this Agreement, each party hereto agrees that neither
such party nor any person or entity on such party's behalf has or shall
commence, maintain or prosecute any lawsuit, complaint, action or proceeding of
any kind against the other or their respective Released Parties with respect to
any Claims released by either party. The foregoing notwithstanding, this
covenant not to sue does not extend to any claim for breach of this Agreement.

         7. Company Records; Return of Company Property. Anagnost represents
that he shall return to Company any of the following that he has in his
possession: records and business documents, whether on computer or hard copy,
and other materials (including but not limited to computer disks and tapes,
computer programs and software, office keys, correspondence, files, customer
lists, technical information, customer information, pricing information,
business strategies, sales records and copies thereof) (collectively, the
"Company Records") provided by Company and/or its predecessors, subsidiaries or
affiliates and/or obtained as a result of his employment with, or in any of his
capacities with, or rendering of services for, Company and/or its predecessors,
subsidiaries or affiliates, and/or created by Anagnost while employed by and/or
rendering services to or for Company and/or its predecessors, subsidiaries or
affiliates. Anagnost acknowledges that all such Company Records are the property
of Company. In addition, Anagnost shall promptly return in

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good condition any and all physical assets in his possession that belong to
Company. As of Anagnost's Resignation Date, Company will make arrangements to
remove, terminate or transfer from Anagnost any and all business communication
lines including network access, cellular phone, fax line and other business
numbers belonging to or leased by Company.

         8. Confidential Information. Anagnost acknowledges that, during his
employment and other service with Company and/or its subsidiaries or affiliated
entities, he has had access to confidential and other information proprietary to
Company and/or its subsidiaries or affiliated entities, including but not
limited to trade secrets, operations, customer information, customer prospects,
strategic plans, inventions, business plans, formulas processes, designs,
methods, techniques, know-how, systems, software programs, works of authorship,
plans, proposals, information about products, and other proprietary information
(the "Confidential Information"). Anagnost agrees that he has not and shall not
at any time disclose to any person or entity the Confidential Information
acquired during or in connection with his employment with or in rendering
services to Company and/or any of its subsidiaries and affiliates without prior
written permission from Company. Anagnost agrees that he shall keep secret the
Confidential Information and all matters that have been entrusted to him and
shall not use or attempt to use any of the Confidential Information in any
manner that may injure or cause loss or may be calculated to injure or cause
loss, whether directly or indirectly, to Company and/or its subsidiaries and
affiliates.

The above restrictions shall not apply to: (i) information that at the time of
disclosure is in the public domain through no fault of Anagnost; (ii)
information received from a third party outside of Company that was disclosed
without a breach of any confidentiality obligation; (iii) information approved
for release by written authorization of Company; or (iv) information that may be
required by law or an order of any court, agency or proceeding to be disclosed;
provided, Anagnost shall provide Company with notice of any such required
disclosure once Anagnost has knowledge of it and will provide all reasonable
help to Company to obtain an appropriate protective order.

         9. Non-disparagement. Each party agrees to make no disparaging
statements, or any other communication or publication relating to the other
party that would tend to denigrate or discredit the other party, regardless of
whether such party believes the statement or communication to be true. This
provision extends to the past, present and future officers, directors, managers,
employees, shareholders, agents, consultants, advisors, accountants, attorneys,
business associates, successors and assigns of the respective parties.

         10. Non-interference. Company shall not interfere with any request by
Anagnost to publicly or privately sell any shares of common stock of Company
owned by Anagnost. Upon presentment of a request by Anagnost to Company's
transfer agent to sell or transfer shares privately, under Rule 144 of the
Securities Act of 1933, as amended, or to remove a restrictive legend under Rule
144(k), Company shall provide to the transfer agent (with a copy to Anagnost),
within two business days, of any authorization or legal opinion requested by the
transfer agent.

         11. Indemnification. The indemnification(s) of Anagnost from Company
that Anagnost enjoyed by and through his employment, the Bylaws and Articles of
Incorporation of Company, the laws of the State of Colorado (to the fullest
extent permitted) and/or any other written instrument executed and delivered by
Company prior to the Resignation Date shall not be abridged by the execution and
delivery of this Agreement or the termination of Anagnost's employment with
Company under this Agreement and the same shall survive the execution and
delivery of this Agreement, and termination of Anagnost's employment with
Company under this Agreement.

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<PAGE>

         Further, Company shall protect, defend, indemnify and hold Anagnost
harmless from and against all losses, liabilities, damages, judgments, claims,
counterclaims, demands, actions, proceedings, costs and expenses (including the
advancement of legal fees for attorneys chosen by Anagnost) of every kind and
character, resulting from or relating to or arising out of Anagnost's services
provided to Company through the Resignation Date, alleged by any third-party or
any state or federal regulatory agency.

         12. Future cooperation. Anagnost agrees that he will cooperate with
Company on current and future regulatory investigations and/or litigation
matters involving Company when Company's Board of Directors reasonably
determines that the assistance of Anagnost is necessary; provided, however, that
Company provides reasonable advance written notice to Anagnost regarding such
cooperation; provided further that Company agrees to be flexible and reasonable
with respect to the scheduling of such assistance; provided further that a
reasonable fee of $100.00 per hour and any expenses incurred by Anagnost in
connection with such cooperation shall be advanced to Anagnost by Company; and
provided further that Anagnost shall not be required to provide any such
assistance if Anagnost's counsel reasonably believes such assistance would
conflict with Anagnost's ability to use one or more legal or equitable defenses
available to him but not to Company, unless Company provides adequate indemnity
to Anagnost for such conflict.

         13. Knowing and Voluntary Agreement. Each party hereto hereby
acknowledges that such party has carefully read and understands all of the
provisions and effects of this Agreement; that each is voluntarily and knowingly
entering into this Agreement free of coercion or duress; and that in agreeing to
sign this Agreement, the parties have not, except for representations, promises,
statements, or explanations made herein or in an exhibit attached hereto, relied
on any representations, promises, agreements, statements or explanations made by
any party hereto or their respective attorneys concerning the terms or effects
of this Agreement in connection with their respective decisions to execute the
same.

         14. Governing Law, Jurisdiction and Venue. This Agreement and any
controversy which might arise herefrom will in all respects be interpreted,
enforced and governed by the laws of the State of Colorado, and that in any
action, special proceeding or other proceeding that may be brought arising out
of, in connection with or by reason of this Agreement, shall be brought only in
a court of competent jurisdiction within the City and County of Denver,
Colorado.

         15. Change, Modification and Waiver. No change or modification of this
Agreement shall be valid unless it is in writing and signed by Anagnost and an
authorized officer of Company. No waiver of any provision of this Agreement
shall be valid unless it is in writing and signed by the party against whom the
waiver is sought to be enforced (in the case of Company, by an authorized
officer of Company). The failure of a party to insist upon strict performance of
any provision of this Agreement in any one or more instances shall not be
construed as a waiver or relinquishment of the right to insist upon strict
compliance with such provision in the future.

         16. Integration. This Agreement and its exhibits constitutes the entire
agreement between Company and Anagnost concerning the subject matters hereof and
supercedes all prior representations, promises and agreements, whether oral or
written, implied or otherwise with respect thereto.

         17. Severability. Any provision of this Agreement, which is adjudged to
be prohibited or unenforceable, shall be ineffective to the extent of such
prohibition or unenforceability without affecting the validity or enforceability
of the remainder of this Agreement.

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<PAGE>

         18. Attorneys Fees. In the event an action is brought for breach of or
to enforce this Agreement, including arbitration, the prevailing party shall
receive its reasonable attorneys and paralegal fees and costs at all levels of
dispute resolution involved as determined by the court or arbitrators, as the
case may be.

         19. Voiding Provision. This Agreement shall become null and void and of
no force or effect if the closing of Securities Purchase Agreement between
Rangeley Corporation and Montague Investments, Inc. does not occur.

         IN WITNESS WHEREOF, and intending to be legally bound hereby, the
parties have agreed to and executed the foregoing Severance Agreement, effective
as of the last date written below.

ANAGNOST:

/s/ George Anagnost                          05/06/05
----------------------------------           ---------------------------------
George Anagnost                              Date

COMPANY:

U.S. MEDSYS CORP.

/s/ Peter G. Futro

By:
   -------------------------------

Its:    Chairman                             05/06/05
    ------------------------------           ---------------------------------
                                             Date

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