Document:

Exhibit 10.4

 Exhibit 10.4 
 

 
 Management Incentive Plan 
 FY 2010 
 September 30, 2009 
 Participant Performance Objectives 
 and 
 Plan Document 
  

 Page | 1 

 Integral Systems, Inc. Management Incentive Plan (“MIP”) for FY 2010 is based on the Board of
Directors’ approved targets for the fiscal year as follows: 
 Corporate Officers: 
 Corporate Performance: Bookings, Revenue, Gross Profit and Earnings Per Share 
 Executives – Operations: 
 Group or Division Performance: Bookings, Revenue, Gross
Profit 
 Executives – Corporate Infrastructure: 
 Group Performance: Successful business-oriented support of operations, achievement of budgeted cost 
 AWARD CALCULATIONS 
 Target award levels are based upon a percentage of each individual’s base salary according to each
individual’s level in the organization: 
  

				
	 Executive Category
	  	 Eligible Bonus as a
 % of Base Salary
	 
	 CEO
	  	75	% 
	 CFO, COO and General Counsel
	  	50	% 
	 Executive I
	  	40	% 
	 Executive II
	  	30	% 
	 Executive III
	  	20	% 

 Awards will be further determined by a system of goal weighting based on the following: 

 

													
	 Individual Category
	  	 Corporate
	 	 	 Group
	 	 	 Division
	 	 	 Individual
	 
	 Corporate Officers
	  	80	% 	 	0	% 	 	0	% 	 	20	% 
	 Corporate Support Personnel
	  	80	% 	 	0	% 	 	0	% 	 	20	% 
	 Group Leaders
	  	20	% 	 	60	% 	 	0	% 	 	20	% 
	 Division Leaders
	  	10	% 	 	10	% 	 	60	% 	 	20	% 

 There are four performance criteria that are considered to determine the Company’s financial
performance with respect to goal attainment using the following weighting criteria: 
  

				
	 Performance Criteria
	  	 Weighting
	 
	 Bookings
	  	30	% 
	 Revenue
	  	20	% 
	 Gross Profit
	  	30	% 
	 Earnings Per Share
	  	20	% 

  

 Page | 2 

 Note: In the event that corporate gross profit achievement is less than 90% of target, any individual
performance award percentage can be set to zero at the discretion of Executive Management and/or the Compensation Committee of the Board of Directors. 
 Award Schedule Based on Financial Performance: 
 Calculated Awards are based on performance
against financial targets established at the beginning of the Plan Year. Awards will be calculated on actual results using the following Award Table: 
  

					
	 Performance Against Plan
	  	Revenue & EPS
Percent of Target Earned	 	Gross Profit & Bookings
Percent of Target Earned
	 Less than 90%
	  	0%	 	0%
	 90%
	  	50%	 	0%
	 91%
	  	55%	 	0%
	 92%
	  	60%	 	0%
	 93%
	  	65%	 	0%
	 94%
	  	70%	 	0%
	 95%
	  	75%	 	50%
	 96%
	  	80%	 	60%
	 97%
	  	85%	 	70%
	 98%
	  	90%	 	80%
	 99%
	  	95%	 	90%
	 100%
	  	100%	 	100%
	 101%
	  	105%	 	105%
	 102%
	  	110%	 	110%
	 103%
	  	115%	 	115%
	 104%
	  	120%	 	120%
	 105%
	  	125%	 	125%
	 110%
	  	150%	 	150%
	 115%
	  	175%	 	175%
	 120% and greater
	  	200% (max)	 	200% (max)

 (See attached Executive Bonus Achievement Form for further details regarding weighting) 

 

 Page | 3 

 

 
 Management Incentive Plan Bonus Worksheet – FY2010 
 Executive Officers 
  

							
	Name:	 	  
	  	
			
	Target Bonus Amount: $	  	  
	  	

  

													
	 Company Level
	  	Percent
of
Bonus	 	 	 Performance
 Criteria
	  	Weight
%	 	 	Performance
(See Chart)	  	Total
$
	 Corporate
	  	80	% 	 	Revenue	  	20	% 	 		  	
	 (Consolidated)
	  			 	Gross Profit	  	30	% 	 		  	
		  			 	Earnings Per Share	  	20	% 	 		  	
		  			 	Bookings	  	30	% 	 		  	
						
	 Individual
	  	20	% 	 	See Goal Statements	  			 		  	

  

					
	Management Approval:	 	  
	 	

					
			
	Name (Print):	 	  
	 	

					
			
	Date:	 	  
	 	

  

 Page | 4 

 

 
 Management Incentive Plan Bonus Worksheet – FY2010 
 Group Operation Leaders 
  

							
	Name:	 	  
	  	
			
	Group:	 	  
	  	
			
	Target Bonus Amount: $	  	  
	  	

  

													
	 Company Level
	  	Percent
of
Bonus	 	 	 Performance
 Criteria
	  	Weight
%	 	 	Performance
(See Chart)	  	Total
$
	 Corporate
	  	20	% 	 	Revenue	  	20	% 	 		  	
	 (Consolidated)
	  			 	Gross Profit	  	30	% 	 		  	
		  			 	Earnings Per Share	  	20	% 	 		  	
		  			 	Bookings	  	30	% 	 		  	
						
	 Group
	  	60	% 	 	Revenue	  	20	% 	 		  	
		  			 	Gross Profit	  	40	% 	 		  	
		  			 	Bookings	  	40	% 	 		  	
						
	 Individual
	  	20	% 	 	See Goal Statements	  			 		  	

  

					
	Management Approval:	 	  
	 	

					
			
	Name (Print):	 	  
	 	

					
			
	Date:	 	  
	 	

  

 Page | 5 

 

 
 Management Incentive Plan Bonus Worksheet – FY2010 
 Division Operation Leaders 
  

							
	Name:	 	  
	  	
			
	Group:	 	  
	  	
			
	Division:	 	  
	  	
			
	Target Bonus Amount: $	  	  
	  	

  

													
	 Company Level
	  	Percent
of
Bonus	 	 	 Performance
 Criteria
	  	Weight
%	 	 	Performance
(See Chart)	  	Total
$
	 Corporate
	  	10	% 	 	Revenue	  	20	% 	 		  	
	 (Consolidated)
	  			 	Gross Profit	  	30	% 	 		  	
		  			 	Earnings Per Share	  	20	% 	 		  	
		  			 	Bookings	  	30	% 	 		  	
						
	 Group
	  	10	% 	 	Revenue	  	20	% 	 		  	
		  			 	Gross Profit	  	40	% 	 		  	
		  			 	Bookings	  	40	% 	 		  	
						
	 Division
	  	60	% 	 	Revenue	  	20	% 	 		  	
		  			 	Gross Profit	  	40	% 	 		  	
		  			 	Bookings	  	40	% 	 		  	
						
	 Individual
	  	20	% 	 	See Goal Statements	  			 		  	

  

					
	Management Approval:	 	  
	 	

					
			
	Name (Print):	 	  
	 	

					
			
	Date:	 	  
	 	

  

 Page | 6 

 

 
 Management Incentive Plan Bonus Worksheet – FY2010 
 Corporate Support Leaders 
 Name:
                                         
                                         
                        
 Department:
                                         
                                         
               
 Target Bonus Amount: $
                                         
                                    
  

													
	 Company Level
	  	Percent
of
Bonus	 	 	 Performance
 Criteria
	  	Weight
%	 	 	Performance
(See Chart)	  	Total
$
	 Corporate
	  	10	% 	 	Revenue	  	20	% 	 		  	
	 (Consolidated)
	  			 	Gross Profit	  	30	% 	 		  	
		  			 	Earnings Per Share	  	20	% 	 		  	
		  			 	Bookings	  	30	% 	 		  	
						
	 Group
	  	10	% 	 	Total Corporate SG&A Budgeted Cost	  			 		  	
						
	 Department
	  	60	% 	 	Department SG&A Budgeted Cost	  			 		  	
						
	 Individual
	  	20	% 	 	See Goal Statements	  			 		  	

 Management Approval:
                                         
                                         
                                       
 Name (Print):
                                         
                                         
                                         
              
 Date:
                                         
                                         
                                         
                            
 Note: In the event that corporate support leaders exceed his/her G&A Budget, any individual performance award percentage can be set to zero at the discretion of Executive Management and/or the
Compensation Committee of the Board of Directors. 
  

 Page | 7 

 Integral Systems, Inc. Management Incentive Plan (MIP) 
 SECTION 1. PURPOSE OF THE MANAGEMENT INCENTIVE PLAN (“the Plan”) 
 The purpose of the Plan is to promote the success of the Company by providing to participating executives bonus incentives that qualify as performance-based compensation by: 
  

	1.1	Encouraging individual effort and group teamwork toward the achievement of overall Corporate, Group, Division and Individual goals. 

  

	1.2	Rewarding outstanding executive performance. 

  

	1.3	Providing total direct compensation (base salary plus annual incentive), which is competitive in the Company’s relevant market sector and which is sufficient to
ensure the Company’s ability to attract, retain, and motivate outstanding executives. 

  

	1.4	Engaging executives in business success by sharing the gains realized from changed behaviors. 

  

	1.5	Communicating priorities to indicate the relative importance of certain objectives and goals of the Company. 

 SECTION 2. DEFINITIONS AND TERMS 
 2.1 Accounting
Terms. Except as otherwise expressly provided or the context otherwise requires, financial and accounting terms are used as defined for purposes of, and shall be determined in accordance with generally accepted accounting principles as applied and
reflected in the consolidated financial statements of the Company, prepared in the ordinary course of business. 
 2.2 Specific Terms. The
following words and phrases as used herein shall have the following meanings unless a different meaning is plainly required by the context: 
 “Base Salary” in respect of any Performance Period means the aggregate base annualized salary of a Participant from the Company and all affiliates of the Company at the time Participant is selected to participate for that
Performance Period, exclusive of any commissions or other Company-provided benefits or perquisites or for contributions to a plan qualifying under Section 401(k) of the Code or contributions to a cafeteria plan under Section 125 of the IRS
Code. 
 “Bonus” means a cash payment or a payment opportunity as the context requires. 
 “Bookings” means new contract awards and extensions to existing contracts minus and contract scope reductions. 
 “Group” means any entity reporting directly to the corporate level. 
 “Division” means any entity or corporate activity organized as an administrative or functional unit. 
 “Calculated Award” means the Total Performance Score multiplied by the Target Award established at the beginning of the Plan Year. 
  

 Page | 8 

 “Committee” means the Compensation Committee of the Board of Directors of Integral Systems, Inc.

 “Company” means Integral Systems, Inc. and any successor, whether by merger, ownership of all or substantially all of its assets,
or otherwise. 
 “Corporate Performance” means Integral’s annual financial and operational performance measures and specific
objectives established by top Executive and approved by the Committee. The attainment of these performance objectives will be used to determine the awards. 
 “Group Performance” means specific performance objectives established for participants with Group responsibility, with an appropriate weighting applied based on the intended focus on top
Executive. The financial performance of the appropriate Group as defined in the worksheet will be used in calculating the participant’s award. 
 “Division” means specific financially objectives established for participants with Division responsibility, which includes building sustainable and consistent annual revenue, achieving operating income and building a backlog of
bookings. The financial performance of the appropriate Division as defined in the worksheet will be used in calculating the participant’s award. 
 “Earned Award” means the Calculated Award which may be adjusted based on a review of a participant’s contributions and other performance criteria considered by top Executive with input from senior Executive. 
 “EPS” for any Year means earnings per share of the Company, as reported in the Company’s Consolidated Statement of Income set forth in the
audited annual financial statements of the Company for the Year. 
 “Executive” means a key employee (including any officer) of the
Company who is (or in the opinion of the Committee may during the applicable Performance Period become) an “executive officer” as defined in Rule 3b-7 under the Securities Exchange Act of 1934. 
 “Individual Performance” means the performance objectives specifically attributable to each Participant reflective of his/her functional area and
responsibilities, taking into consideration top Executive’s evaluation of performance in that regard. 
 “Gross Profit” means
Revenue less the sum of all direct expenses including labor, material and overhead. 
 “Participant” means an Executive Officer
selected to participate in the Plan by the Committee. Participants must have an ongoing opportunity to contribute significantly to the success and profitability of the Company. 
 “Performance Period” means the fiscal Year or Years with respect to which the Performance Targets are set by the Compensation Committee, typically the Plan Year. 
 “Performance Target(s)” means the specific objective goal or goals (which may be cumulative and/or alternative) that are set in writing by the
Committee for each Executive for the Performance Period in respect of any one or more of the performance criteria. 
  

 Page | 9 

 “Plan Year” means any one or more fiscal years of the Company commencing on or after
October 1, that represent(s) the applicable Performance Period and end(s) no later than September 30. 
 “Revenue” means the
actual sales revenue results achieved during the Plan Year as reported in the Company’s audited financial statements. 
 “Target
Award” means the established award that a participant is eligible to receive if all performance objectives are achieved at 100%. The Target Award is shown as a percentage of the Participant’s Base Salary. 
 “Target Performance Level” means the fully satisfied performance level at which awards will equal 100% of the Target Award established for that
performance measure. 
 “Threshold Performance Level” means the minimum level of acceptable performance for which incentive awards
will be earned for any of the established performance objectives or measures. 
 “Total Performance Score” means the sum of all of a
Participant’s scores. 
 SECTION 3. ADMINISTRATION OF THE PLAN 
 3.1 The Committee. The Plan shall be administered by a Committee consisting of at least three members of the Board of Directors of the Company, duly authorized by the Board of Directors of the Company to
administer the Plan, who (i) are not eligible to participate in the Plan and (ii)are “outside directors.” 
 3.2 Powers of the
Committee. The Committee shall have the sole authority to establish and administer the Performance Target(s) and the responsibility of determining from among the executives and managers those persons who will participate in and receive Bonuses under
the Plan, the amount of such Bonuses, and the time or times at which and the form and manner in which Bonuses will be paid and shall otherwise be responsible for the administration of the Plan, in accordance with its terms. The Committee shall have
the authority to construe and interpret the Plan and any agreement or other document relating to any Bonus under the Plan. For each Performance Period, the Committee shall determine, at the time the Performance Target(s) are set, those selected as
Participants in the Plan. All powers accruing to the Committee that affect Named Officers of the Corporation shall be subject to final approval by the Board of Directors. 
 3.3 Requisite Action. A majority (but not fewer than two) of the members of the Committee shall constitute a quorum. The vote of a majority of those present at a meeting at which a quorum is present or
the unanimous written consent of the Committee shall constitute action by the Committee. 
 3.4 Express Authority (and Limitations on Authority)
to Change Terms and Conditions of Bonus. Without limiting the Committee’s authority under other provisions of the Plan, the Committee shall have the authority to accelerate a Bonus (after the attainment

  

 Page | 10 

 
of the applicable Performance Target(s)) and to waive restrictive conditions for a Bonus (including any forfeiture conditions, but not Performance Target(s)), in such circumstances as the
Committee deems appropriate. 
 SECTION 4. BONUS PROVISIONS. 
 4.1 Provision for Bonus. Each Participant may receive a Bonus if and only if the Performance Threshold(s) established by the Committee are attained. The applicable Performance Period and Performance
Target(s) shall be determined by the Committee consistent with the terms of the Plan. Notwithstanding the fact that the Performance Target(s) have been attained, the Company may pay a Bonus of more than or less than the amount determined by the
formula or standard established, or may pay no Bonus at all, unless the Committee otherwise expressly provides by written contract or other written commitment. 
 4.2 Selection of Performance Target(s). The specific Performance Target(s) must be established by the Committee in advance of the deadlines applicable. At the time the Performance Target(s) are selected,
the Committee shall provide, in terms of an objective formula or standard for each Participant, and for any person who may become a Participant after the Performance Target(s) are set, the method of computing the specific amount that will represent
the maximum amount of Bonus payable to the Participant if the Performance Target(s) are attained. 
 4.3 Selection of Participants. For each
Performance Period, the Committee shall determine, at the time the Performance Target(s) are set, those executives, managers and key staff who will participate in the Plan. 
 4.4 Effect of Mid-Year Commencement of Service. If services as a Participant commence after the adoption of the Plan and the Performance Target(s) are established for a Performance Period, the Committee
may grant a Bonus that is proportionately adjusted based on the period of actual service during the Year; the amount of any Bonus paid to such person shall not exceed that proportionate amount of the applicable maximum individual bonus. 

4.5 Changes Resulting From Accounting Changes. If, after the Performance Target(s) are established for a Performance Period, a change occurs in the
applicable accounting principles or practices, the amount of the Bonuses paid under this Plan for such Performance Period shall be determined without regard to such change. 
 4.6 Committee Discretion to Determine Bonuses. The Committee has the sole discretion to determine the standard or formula pursuant to which each Participant’s Bonus shall be calculated (in accordance
with Section 4.2), whether all or any portion of the amount so calculated will be paid, and the specific amount (if any) to be paid to each Participant, subject in all cases to the terms, conditions and limits of the Plan and of any other
written commitment authorized by the Committee. To this same extent, the Committee may at any time establish additional conditions and terms of payment of Bonuses (including but not limited to the achievement of other financial, strategic or
individual goals, which may be objective or subjective) as it may deem desirable in carrying out the purposes of the Plan and may take into account such other factors as it deems appropriate in administering any aspect of the Plan. 
  

 Page | 11 

 4.7 Committee Certification. No Participant shall receive any payment under the Plan unless the Committee
has certified, by resolution or other appropriate action in writing, that the amount thereof has been accurately determined in accordance with the terms, conditions and limits of the Plan and that the Performance Target(s) and any other material
terms previously established by the Committee or set forth in the Plan were in fact satisfied. 
 SECTION 5. GENERAL PROVISIONS 
 5.1 No Right to Bonus or Continued Employment. Neither the establishment of the Plan nor the provision for or payment of any amounts hereunder nor any action
of the Company (including, for purposes of this Section 5.1, any predecessor or subsidiary), the Board of Directors of the Company or the Committee in respect of the Plan, shall be held or construed to confer upon any person any legal right to
receive, or any interest in, a Bonus or any other benefit under the Plan, or any legal right to be continued in the employ of the Company. The Company expressly reserves any and all rights to discharge an Participant in its sole discretion, without
liability of any person, entity or governing body under the Plan. The Company shall have no obligation to pay any Bonus hereunder nor to pay the maximum amount so calculated or any prorated amount based on service during the period, unless the
Committee otherwise expressly provides by written contract or other written commitment. 
 5.2 Discretion of Company, Board of Directors and
Committee. Any decision made or action taken by the Company or by the Board of Directors of the Company or by the Committee arising out of or in connection with the creation, amendment, construction, administration, interpretation and effect of the
Plan shall be within the absolute discretion of such entity and shall be conclusive and binding upon all persons. No member of the Committee shall have any liability for actions taken or omitted under the Plan by the member or any other person.

 5.3 Absence of Liability. A member of the Board of Directors of the Company or a member of the Committee of the Company or any officer of the
Company shall not be liable for any act or inaction hereunder, whether of commission or omission. 
 5.4 No Funding of Plan. The Company shall
not be required to fund or otherwise segregate any cash or any other assets which may at any time be paid to Participants under the Plan. The Plan shall constitute an “unfunded” plan of the Company. The Company shall not, by any provisions
of the Plan, be deemed to be a trustee of any property, and any obligations of the Company to any Participant under the Plan shall be those of a debtor and any rights of any Participant or former Participant shall be no greater than those of a
general unsecured creditor. 
 5.5 Non-Transferability of Benefits and Interests. Except as expressly provided by the Committee, no benefit
payable under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any such attempted action be void and no such benefit shall be in any manner liable for or subject to
debts, contracts, liabilities, engagements or torts of any Participant or former Participant. This Section 5.5 shall not apply to an assignment of a contingency or payment due after the death of the Participant to the deceased
Participant’s legal representative or beneficiary. 
  

 Page | 12 

 5.6 Law to Govern. All questions pertaining to the construction, regulation, validity and effect of the
provisions of the Plan shall be determined in accordance with the laws of the State of Maryland. 
 SECTION 6. AMENDMENTS, SUSPENSION OR
TERMINATION OF PLAN 
 The Board of Directors or the Committee may from time to time amend, suspend or terminate in whole or in part, and if
suspended or terminated, may reinstate, any or all of the provisions of the Plan. The committee has the sole discretion to modify the calculated award by ± 10%. 
  

 Page | 13Executive Leadership Plan

 Exhibit 10.1 
 BROCADE EXECUTIVE LEADERSHIP PLAN 
 Revised: December 3,
2009 
 (Effective as of fiscal year 2010) 
 PURPOSE 
 The Brocade Executive Leadership Plan is designed to link incentive compensation with
Company performance. 
 PERFORMANCE PERIOD AND PAYOUT PERIOD 
 Performance against Company and individual objectives is measured annually (according to the Company’s fiscal year) (Plan Period), but will be reviewed semi-annually. Payout of earned cash bonuses,
if any, occurs on an annual basis. 
 ELIGIBILITY 
 Regular full-time and part-time Vice President (VP) level employees that are designated Section 16 Officers and other VP-level employees specifically identified by the Company to participate in this
plan are eligible to participate in the Executive Leadership Plan Program. To the extent a VP is eligible to and participates in the Company’s Sales Incentive Plan, then that VP shall not be eligible to participate in this Executive Leadership
Plan. 
 Participants must be regular (full-time or part-time) employees at the end of the fiscal year to be eligible to receive a Executive
Leadership Plan Payout. 
 PARTICIPANT PERFORMANCE 
 As each Plan Period begins, participants must complete a CEO or VP Performance Contract. Performance contracts should be tied to company and departmental goals as outlined by the board of directors (i.e.,
company priorities and initiatives). All goals must be tied to overall company objectives and have defined measurements. 
 Before Performance
Contracts for Executive VPs are final, they are to be reviewed and approved by Finance, Human Resources, and the Chief Executive Officer (CEO). Performance Contracts for Functional VPs are reviewed and approved by the applicable Executive VP. The
CEO’s Performance Contract shall be reviewed and approved by the Chair of the Board of Directors and the Chair of the Compensation Committee. 
 At the end of each Plan Period, actual performance against the plan’s financial metric goals is determined by Finance and provided to the plan participants. Performance against goals is then assessed by the Participant and then
reviewed and assessed by the VP’s manager, in order to determine each participant’s bonus payout for the period. The Compensation Committee reviews and approves all Section 16 Officers’ performance and bonus payouts annually. The
CEO reviews and approves all other VP cash bonus payouts. The Compensation Committee shall review and approve the CEO’s bonus payouts. 
  

 1. 

 COMPANY PERFORMANCE & EXECUTIVE LEADERSHIP PLAN FUNDING 
 Each Plan Period, Brocade’s Board of Directors will set a Non-GAAP Operating Income target (Target OI) and Revenue target (Target Revenue) for the
Company to achieve during the Plan Period, including applicable scaling for over- or under-achievement of such targets and minimum performance levels (if any). 
 At the end of each Plan Period, Brocade will determine amounts to be paid under the Executive Leadership Plan based on the actual performance achieved by Brocade during the Plan Period (Actual OI and
Actual Revenue) relative to the Target OI and Target Revenue. Actual Funding will be calculated based on the following performance metric ratio: 
  

							
		  	Non-GAAP Operating Income	  	= 75%	  	
		  	Revenue	  	= 25%	  	

 The Actual OI and Actual Revenue will be communicated following the end of each Plan Period.

 PARTICIPANT INCENTIVE TARGET 
 With
respect to Section 16 Officers (including the Chief Executive Officer), a Participant’s Annual Incentive Target may range from 40% to 150% and is determined by the Company’s Compensation Committee. With respect to other participants
in the Company’s Executive Leadership Plan, a Participant’s Annual Incentive Target is determined by the Participant’s classification or pay grade at the end of the 12-month Plan Period, unless otherwise indicated in writing by
Brocade. 
 EXECUTIVE LEADERSHIP PLAN PAYOUTS 
 On an annual basis, the Compensation Committee reviews and approves the formula for cash bonus payouts for all Section 16 Officers (including the CEO) and the Individual Performance for Section 16 Officers other than the CEO. The
CEO reviews and approves the formula for cash bonus payouts and the Individual Performance for all other VP cash bonuses. Individual Performance can range from 90% to 100%. The CEO is measured exclusively on Corporate performance. 
 Program payouts are made within eight (8) weeks following the conclusion of the 12-month Plan Period. Payouts will be pro-rated for Participants who
are hired or transferred into the Executive Leadership Plan during any Plan Period. 
 Except as otherwise agreed upon by: (i) the
Compensation Committee for the CEO and other Section 16 officers, and the CEO for all other VPs, and (ii) the Participant, for each Participant, the cash bonus payout is calculated based on the following formula (less applicable taxes and
deductions): 
 Bonus Payout = (Actual Funding*) x (Individual Performance**) x (Annual Incentive Target) x (Annual
Salary) 
  
  

	*	As described above, Actual Funding is equal to the sum of: (i) Actual OI multiplied by 75%, plus (ii) Actual Revenue multiplied by 25%.

	**	Individual Performance scoring is not applicable to the CEO. 

  

 2. 

 Bonuses will be calculated using the annual base salary and Annual Incentive Target as of the last day of
the Plan Period, except as set forth above or otherwise indicated in writing by Brocade. 
 ADMINISTRATIVE PROCEDURES 
 Compensation Committee Approval 
 The
Compensation Committee reserves the right to decrease or eliminate bonus otherwise indicated. 
 New Hires and Promotions 
 Participants new to the company or who are promoted into the Executive Leadership Plan must complete a VP Performance Contract within 60 days of beginning in
the new position. 
 Position/Salary Factor 
 Payout will be based on the Participant’s annual base salary and job position on the last day of the Plan Period. Bonuses may be pro-rated if Participant received a cash bonus under another bonus
program. 
 Terminations: Anyone who is not on the payroll as of the end of the fiscal year is not eligible to receive a cash bonus
payout. 
 Leaves of Absences, Disability or Death: In the event of the Participant’s death, disability time off, or leave of
absence, Payouts will be made on a pro-rated basis, based on the number of days the Participant was actively working at Brocade. If the Participant is on a legally protected leave of absence (e.g. Family Medical Leave or Military Leave), the
Participant’s eligibility for participation in Plan may be extended beyond the time above, in accordance with the laws governing the legally protected leave. In the event of death, any cash bonus payments will be paid to the Participant’s
primary beneficiary as designated in the Participant’s Brocade life insurance plan documentation, if any, or will otherwise be paid to his or her estate. 
 Performance Improvement Plan/Disciplinary Situations (Development Needed): If a Participant, at anytime prior to the cash bonus payout 12-month Plan Period, is subject to a performance improvement
plan, discipline or demotion, Brocade may, in its sole discretion, reduce or eliminate the cash bonus payment that the Participant would otherwise have been eligible to receive. If, at the time prior to the Payout for a 12-month Plan Period, it is
determined that a Participant may be subject to corrective action, discipline or demotion, then Brocade may withhold the entire cash bonus payout, or a portion thereof, until after a final decision on such corrective action has been made. If a
Participant is given a performance rating of Development Needed, the Participant will not be eligible to receive a Payout. Only the VP of Human Resources or CEO may approve exceptions to this policy, except that the Compensation Committee must
approve exceptions for Section 16 officers. 
  

 3. 

 Other Provisions: Participation in the Executive Leadership Plan does not constitute an agreement
(express or implied) between the Participant and Brocade that the Participant will be employed by Brocade for any specific period of time, nor is there any agreement for continuing or long-term employment. Terms and conditions regarding the
Executive Leadership Plan and any participation therein, including but not limited to Executive Leadership Plan eligibility, Executive Leadership Plan funding, and performance and payout criteria and determinations, are subject to change by Brocade
at any time in its sole discretion. Brocade and its Board of Directors retain the absolute right to interpret, revise, modify or terminate the Executive Leadership Plan at any time in its sole discretion. 
  

 4.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}]]