Document:

ex101may11.htm

Exhibit 10.1

Chyron Corporation

2011 Management Incentive Compensation Plan

Purpose of the Plan: The purpose of the 2011 Management Incentive Compensation Plan (the “Plan”) is to incentivize the senior management of Chyron Corporation (“Chyron” or the “Company”) to achieve the Company’s earnings objectives for the fiscal year ending December 31, 2011.  The Plan is a component of the Company’s overall compensation objectives and components, including base salary, long-term incentive equity awards and other fringe benefits, that are designed to attract and retain the best possible management talent; to motivate its managers to enhance the Company’s growth and profitability and increase shareholder value; to recognize individual initiative, leadership, achievement and other contributions; and to reward superior performance and contributions to the achievement of the Company’s objectives.

Participants: Participants in the Plan include the Company’s named executive officers consisting of the President & Chief Executive Officer and Senior Vice President & Chief Financial Officer, as well as ten other senior management personnel of the Company.  The Plan does not include any senior management personnel whose short-term incentive is in the form of sales-based commissions and bonuses.

Conditions: The Plan consists of two performance conditions and a service condition. The target performance conditions are: 1) Incentive Plan Adjusted EBITDA which for Plan purposes is defined as earnings before interest, taxes, depreciation and amortization, and also before all share-based compensation expense and Plan incentive expense; and, 2) Non-GAAP Cash Flows which for Plan purposes is defined as: a) net income or loss before depreciation, amortization, taxes, share-based compensation expense, non-cash reserves against inventory, GAAP-basis rental expense in excess of cash rent paid, Company 401k plan contributions made in Company common stock, and all Plan incentive expense; plus b) net cash used in investing activities, primarily purchases of property and equipment; plus c) net cash used in financing activities, primarily payments of loans and leases.  The service condition is that in order to be eligible to receive a payout under the Plan, a Plan participant must be employed by the Company on the date of payout specified below.

Plan Incentive Targets: One-half of the target Plan incentive payout is based on achievement of a designated level of budgeted Incentive Plan Adjusted EBITDA target for fiscal 2011 and one-half is based on achievement of a designated level of budgeted Non-GAAP Cash Flows target for fiscal 2011. At least 75% of the target must be achieved for a payout to occur under a particular target. For each target, the payout will be 75% of the target payout at achievement of 75% of the applicable target performance condition, increasing to 100% of the target payout at achievement of 100% of the applicable target performance condition, with payout amounts in between these percentages determined based on a linear function. Above 100% achievement of the applicable target performance conditions, the payout percentage increment over 100% will grow at twice the rate of the applicable target achievement percentage 

 

 

  

  

  

 

increment over 100%, as determined on a linear function.  For example, the payout will be 102% of the target payout at achievement of 101% of the applicable target performance condition, increasing to 150% of the target payout at achievement of 125% of the applicable target performance condition, with payout amounts in between these percentages determined on a linear function.  The target payout maximum is 150% of target regardless of how high above 125% the target performance conditions achievement is.

Form of Payout: Any award earned under the Plan will be paid in a combination of cash and common stock of the Company issued under the Company’s 2008 Long-Term Incentive Plan.  The cash portion of the award will equal the payroll and income tax withholdings required to be paid by the Company on the participant’s earned award, and the balance of the total award will be paid in shares of common stock of the Company determined by the dollar value of the equity portion of the earned award divided by the closing price of the Company’s common stock (on NASDAQ or any other exchange on which the Company’s common stock might then be listed) on the date of payout as specified below.

Target Payout: The target payout for fiscal 2011 is set as a percentage of the participant’s base salary to be earned for fiscal 2011.  For the President & Chief Executive Officer, this percentage is 70%, resulting in a projected target payout (at 100% achievement of both performance conditions) of $334,554, and for the Senior Vice President & Chief Financial Officer is 60%, resulting in a projected target payout of $146,160 (at 100% achievement of both performance conditions). The percentages for the other participants in the Plan shall be determined by the Compensation Committee and the Board of Directors of the Company in its sole discretion and range from 20% to 40% of the participant’s base salary to be earned for fiscal 2011.

Date of Payout: The date of payout to all eligible participants will be the date that the Board of Directors accepts the report of the independent registered public accountants on the results of their audit of the Company’s financial statements for its 2011 fiscal year.WebFilings | EDGAR view

 

Exhibit 10.1
Nanometrics
FY11 EXECUTIVE PERFORMANCE BONUS PLAN 
Plan Summary 
The 2011 Executive Performance Bonus Plan (the “Plan”) is intended to motivate senior executives to achieve short-term and long-term corporate objectives by providing a competitive bonus for target performance and the appropriate upside opportunity to reward outstanding performance. 
The Executive Management Bonus Plan is structured to provide an incentive to management for performance against the Board of Directors approved Annual Operating Plan, (AOP).  The total bonus opportunity is expressed as a percentage of the executive's base salary as approved by the Board of Directors, and is divided into 3 discrete components; Revenue, Non-GAAP Operating Income and a Discretionary Component.
Plan Period 
This Plan is effective for the fiscal year period from January 2, 2011 through December 31, 2011. 
Eligible Positions 
The Company's Chief Executive Officer (CEO), Chief Operating Officer (COO) and the Chief Financial Officer (CFO) are eligible to participate in the Plan. 
Program Payments 
Bonus payments, based on performance during the Plan Period, will be paid within 90 days following January 1, 2012. Bonus calculations are based on paid base salary for the applicable Plan Period. Paid base salary does not include relocation allowances and reimbursements, tuition reimbursements, car/transportation allowances, expatriate allowances, commissions, long-term disability payments, or bonuses paid during the fiscal year. A participant must be a regular, active employee of the Company on the date of the payout in order to receive payment. 
Target Bonus at Annual 100% Board Based Plan Achievement 
Target bonuses are established as follows; CEO, 75%, COO, 70% as a percent of base salary for each Plan participant.  (Note: CFO is not established at this time)
Plan Operation
Each individual Executive's actual bonus payment amount will be based on achievement against three discrete components; Annual Operating Plan, (AOP) Revenue Target and Annual Operating Plan, (AOP) Non-GAAP Operating Income Target as well as a Discretionary Component. The final bonus payments for each Plan participant, with the exception of the CEO, will be recommended by the CEO and reviewed and approved by the Compensation Committee. The final bonus for the CEO will be determined by the company's Board of Directors. 
Bonus Calculation 
A description of the basis, components and scaling factor against performance follows.
Weighting of Target Bonuses  

 

 

40% of Target Bonus based on Annual Operating Plan, (AOP) Revenue Target 
40% of Target Bonus based on Non-GAAP Annual Operating Plan, (AOP) Non-GAAP Operating Income Target 
0%-20% of Target bonus shall be based on Compensation Committee discretion.
Bonus Determination Summary 
AT Annual Operating Plan: Executives will receive 80% of their Target Bonus (40% for revenues and 40% for non-GAAP operating income).  The final 20% shall be based discretionary determined by the Compensation Committee. Each element, (i.e. Revenue, non-GAAP Operating Income, and the Discretionary component) of the bonus objective will be treated independently. Maximum award under this Plan will be 3 times the Target Bonus for each element the discretionary component which remains at 0%- 20% of the total Bonus Target Percentage.
ABOVE Annual Operating Plan:  The revenue bonus opportunity will increment 2% for every 1% percent above the AOP Revenue Target, up to a maximum of 120%.  The non-GAAP operating income bonus opportunity will increment 4% for every 3% above the AOP non-GAAP operating income achievement target, up to a maximum of 120%. 
BELOW Annual Operating Plan:  The revenue bonus opportunity will decrement 1% for every 1% percent below the AOP revenue target, down to 80% of plan. No portion of the Revenue component of the bonus opportunity will be awarded for revenues below 80% of the AOP revenue target. The non-GAAP operating income bonus opportunity will decrement 0.5% for every 1% below plan, down to 60% of plan.  No portion of the non-GAAP Operating Income bonus opportunity will be awarded below 60% of the AOP non-GAAP operating income target. 
Plan Maximum: The Plan limits cap the revenue and non-GAAP operating income bonus opportunities at 3 times the target bonus percentages. The 0%-20% discretionary component remains fixed.
General Provisions 
The Compensation Committee (or the independent members of the Company's Board of Directors, within the meaning set forth in Section 162(m) (the “Independent Directors”)) shall be the Plan Administrator. The Compensation Committee (or the Independent Directors) shall make such rules, regulations, interpretations and computations and shall take such other action to administer the Plan as it may deem appropriate. The establishment of the Plan shall not confer any legal rights upon any employee or other person for a continuation of employment, nor shall it interfere with the rights of the Company to discharge any employee and to treat him or her without regard to the effect which that treatment might have upon him or her as a participant in the Plan. 
This Plan shall be construed, administered and enforced by the Compensation Committee (or the Independent Directors), in its sole discretion. The laws of the State of California will govern any legal dispute involving the Plan. The Compensation Committee (or the Independent Directors) may at any time alter, amend or terminate the Plan, subject to the requirements of Section 162(m). 
 

 

 

	
							
	Summary Table
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 

	Below Plan
	 
	 
	 
	 
	 
	 

	Plan
	60%
	70%
	80%
	90%
	100%
	 

	Revenue Component
	—
	—
	20%
	30%
	40%
	 

	Non-GAAP Operating Income Component
	20%
	25%
	30%
	35%
	40%
	 

	 
	 
	 
	 
	 
	 
	 

	Above Plan
	 
	 
	 
	 
	 
	 

	Plan
	100%
	121%
	130%
	139%
	140%
	160%

	Revenue Component
	40%
	82%
	100%
	118%
	120%
	120%

	Non-GAAP Operating Income Component
	40%
	68%
	80%
	92%
	93%
	120%

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