Document:

ex10-1.htm

Exhibit 10.1

 

Cardica, Inc.

 

EXECUTIVE PERFORMANCE BONUS PLAN 

 

Plan Summary 

 

The Cardica, Inc. 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 Compensation Committee of the Board of Directors establishment of performance goals for members of management. The total bonus opportunity is expressed as a percentage of the executive's base salary as approved by the Compensation Committee as described below.

 

Performance Period 

 

The performance period for each fiscal year shall be from July 1, of the fiscal year until June 30 of the fiscal year, or such other period as determined by the Board or the Compensation Committee (each, a “Performance Period”). 

 

Eligible Positions 

 

Cardica's Chief Executive Officer (CEO), Chief Operating Officer (COO), Chief Financial Officer (CFO), and any other officer of Cardica who is an “executive officer” of Cardica as defined by Rule 3b-7 promulgated under the Securities Exchange Act of 1934 are eligible to participate in the Plan. 

 

Program Payments 

 

Bonus payments, based on performance during a Performance Period, will be paid within 90 days following the end of a Performance Period. Bonus calculations are based on paid base salary for the applicable Performance 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 Cardica on the date of the payout in order to receive payment. 

 

Target Bonus 

 

Target bonuses for each Performance Period will be established by the Compensation Committee as a percentage of the applicable participant’s base salary for the year.

 

Plan Operation

 

Each individual participant’s actual bonus payment amount will be based on achievement against the discrete components established by the Compensation Committee, as well as a Discretionary Component, if any. 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 Compensation Committee and/or the Board of Directors. 

 

 

 

 

 

General Provisions 

 

The Compensation Committee shall be the Plan Administrator. The Compensation Committee 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 Cardica 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, in its sole discretion. The laws of the State of California will govern any legal dispute involving the Plan. The Compensation Committee may at any time alter, amend or terminate the Plan.Exhibit   10.1
    	
 
    
	
 
    	
 
    
	
 
    	
Aspen Technology, Inc.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Executive Annual Incentive Bonus Plan
    	
 
    
	
 
    	
 
    
	
FY   2016

 

For

 

“NAME”

 

I.                    Purpose

 

The   purpose of Aspen Technology’s (“Company”) Executive Annual Incentive Plan   (the “Plan”) is to motivate and reward performance that results in the   achievement of key Company objectives.    Awards made pursuant to this Plan are intended to constitute   Performance Cash Awards under the 2010 Equity Incentive Plan.

 

II.                Effective   Date of Plan

 

The   Plan operates on a fiscal year basis (“Plan Year”), and is effective from the   first business day of the fiscal year, through the last business day of the   fiscal year.

 

III.            Eligibility

 

Eligibility   is afforded to those Executives whose positions are determined by Aspen   Technology to have significant impact on the operating results of the   Company.

 

Eligibility   for the Plan does not guarantee payment of an award and does not guarantee   continuation of employment.  If employment ends prior to the end of the   performance period any payment eligibility is subject to the Executive   Retention Agreement then in force. Should an Executive voluntarily resign   after the completion of the performance period, he/she is eligible to receive   the earned bonus in accordance with the Plan.

 

In   FY 2016, there is potential for a mid-year payment as well as a final   year-end payment. To qualify for a mid-year payout, Executives must have   been employed prior to October 1, 2015.    Executives who start employment after October 1, 2015 will not   receive a mid-year payment, but will receive a pro-rated bonus payment   calculated based on the months worked for the fiscal year if final year end   payments are made to all employees. To qualify for a year-end payout, executives   must have been employed continuously since prior to April 1, 2016.   Payment will be calculated on the number of months worked for the entire   fiscal year if final year end payments are made to all employees. If the   Executive works for 15 or more days of the month, he/she will receive credit   for time worked for that month for any bonus payout. If he/she works for less   than 15 days of the month, they will not receive credit for time worked for   that month.
    	
 
    
	
 
    	
 
    
	
 
    	
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IV.           Target   Award

 

The   Plan is based on the “Target Award” concept, which bases the award on the   Company’s overall performance.  In order to achieve the Target Award   amount, the Company must achieve 100% of its pre-established objectives by   the end of the Plan Year. The actual award paid to the participant, if any,   for a given Plan Year will be based on the Company’s overall performance, as   adjusted for the overall level of bonus pool funding.

 

The   Target Award for each position is the incentive award as defined when 100% of   all Plan objectives are met and the Company attains the necessary level of   performance to fund the bonus pool at 100%.

 

V.               Components   of Award

 

“Company   Metric Performance” for Plan purposes is based on the accomplishment of one   or more predetermined annual Company financial objectives, selected each year   based on their critical importance to the Company’s success.  Company   Metric Performance for FY 2016 will be measured based on the achievement of   the FY 2016 Growth in License Annual Spend “GLAS”, and Corporate Operating   Income.

 

The   following summarizes the weighting for the various incentive components for   FY 2016.

 
    	
 
    
	
 
    	
 
    	
 
    

	
 
    	
 
    	
FY 2016 Plan Components
    	
Overall Bonus 
   Weighting
    	
On Target Metric
    	
 
    	
 
    
	
 
    	
 
    	
Growth in License   Annual Spend
    	
50%
    	
Determined   by the Board
    	
 
    	
 
    
	
 
    	
 
    	
Corporate Operating Income
    	
50%
    	
Determined   by the Board
    	
 
    	
 
    

	
 
    	
 

Company Metric Performance (Growth in   License Spend & Corporate Operating Income)

 

The   achievement level will then correspond to a bonus plan funding/weighting   percentage by individual metric according to the following table:

 
    	
 
    

	
 
    	
 
    	
Company Metric
   Performance
    	
Funding Level of Metric
   Based on Performance
    	
 
    	
 
    
	
 
    	
 
    	
< 70% of Target
    	
0%
    	
 
    	
 
    
	
 
    	
 
    	
70% of Target
    	
50%
    	
 
    	
 
    
	
 
    	
 
    	
80% of Target
    	
70%
    	
 
    	
 
    
	
 
    	
 
    	
90% of Target
    	
90%
    	
 
    	
 
    
	
 
    	
 
    	
100% of Target
    	
100%
    	
 
    	
 
    

	
 
    	
 

The   funding is based on a minimum achievement of 70% of the target metric.    At 70% achievement, the plan funds at 50% of target and increases at a 2:1   ratio until 89% achievement.  Achievement between 90% and 100% funds at   a 1:1 ratio.  Each metric is measured and funded independently. This   Plan is capped at 100% funding.

 

VI.           Plan   Funding Allocation and Achievement

 

For   FY 2016, Plan funding is based on the attainment of Board-approved specified   levels of Growth in License Annual Spend and Corporate Operating   Income.  In FY16 there is a potential for a mid-year payment. The   mid-year payment is based on mid-year performance against mid-year targets   and will not exceed 25% of the annual bonus target.

 
    	
 
    
	
 
    	
 
    	
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The year-end payment is based on   total annual performance against the annual performance targets less any   payment received at mid-year.

 

Should the mid-year bonus earned be   less than the target of 25% of bonus potential, the unrealized difference (up   to the 25% mid-year potential) can be made up at year-end based on annual   achievement against annual goals.

 

VII.  Bonus Calculation

 

A.           Bonus calculation takes into account three components:

·                  Growth in License Annual Spend and corresponding funding   percentage (Section V);

·                  Corporate Operating Income    and corresponding funding percentage (Section V); and

·                  Target Bonus ($) level (as defined in Appendix A).

 

B.           The bonus will be measured on first half performance at   mid-year and on annual performance at year end.

 

First Half (H1)   Calculation (Maximum payout of 25% of annual bonus target)

 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Growth in License Annual Spend
    	
 
    
	
 
    	
Annual Bonus Target
    	
X
    	
Metric Weighting 50%
    	
X
    	
Maximum Payout 25%
    	
X
    	
Mid-Year Funding Level Based on   Performance (%)
    	
=
    	
H1 Growth in License Annual Spend   Bonus Payout
    	
 
    
	
 
    	
Corporate   Operating Income
    	
 
    
	
 
    	
Annual Bonus Target
    	
X
    	
Metric Weighting 50%
    	
X
    	
Maximum Payout 25%
    	
X
    	
Mid-Year Funding Level Based on   Performance (%)
    	
=
    	
H1 Corporate Operating Income Bonus   Payout
    	
 
    
	
 
    	
Total H1   Bonus
    	
 
    
	
 
    	
H1 Growth in License Annual Spend   Bonus Payout
    	
 
    	
+
    	
 
    	
H1 Corporate Operating Income Bonus   Payout
    	
=
    	
Total H1 Bonus   Payout
    	
 
    
	
 
    	
 

 

End of Year (YE)   Calculation

 
    	
 
    
	
 
    	
Growth in   License Annual Spend
    	
 
    
	
 
    	
Annual Bonus Target
    	
X
    	
Metric Weighting 50%
    	
X
    	
Full Year Funding Level Based on   Performance (%)
    	
-
    	
H1 Earned
    	
=
    	
YE Growth in License Annual Spend   Earned Bonus
    	
 
    
	
 
    	
Corporate   Operating Income
    	
 
    
	
 
    	
Annual Bonus Target
    	
X
    	
Metric Weighting 50%
    	
X
    	
Full Year Funding Level Based on   Performance (%)
    	
-
    	
H1 Earned
    	
=
    	
YE Corporate Operating Income Earned   Bonus
    	
 
    
	
 
    	
YE Bonus   Funding
    	
 
    
	
 
    	
Growth in License Annual Spend Earned
    	
+
    	
YE Corporate Operating Income Earned
    	
=      Total YE Bonus Payout
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
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Illustration

 

The following illustrations   demonstrate sample calculations for determining potential bonus payments   using an annual bonus potential of $100,000.

 

H1 Bonus   Calculation
    	
 
    
	
 
    	
Category
    	
Metric

Weighting
    	
Annual 

Bonus 

Target
    	
Maximum 

Payout %
    	
H1 Target 

Award
    	
Mid-Year 

Company 

Metric 

Performance
    	
Mid-Year 

Funding Level   

Based on 

Performance

(%)
    	
H1 

Bonus 

Payout
    	
 
    
	
 
    	
Growth   in License Annual Spend
    	
50%
    	
$50,000
    	
25%
    	
$   12,500
    	
90%
    	
90%
    	
$11,250
    	
 
    
	
 
    	
Corporate   Operating Income
    	
50%
    	
$50,000
    	
25%
    	
$   12,500
    	
70%
    	
50%
    	
$ 6,250
    	
 
    
	
 
    	
H1   Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$17,500
    	
 
    
	
 
    	
 

End of Year   Calculation
    	
 
    
	
 
    	
Category
    	
Metric 

Weighting
    	
Annual 

Bonus 

Target
    	
Full Year 

Company 

Metric 

Performance
    	
Full Year   Funding 

Level Based   on 

Performance   (%)
    	
Full Year 

Bonus 

Achievement
    	
Minus H1 

Payout
    	
YE

Bonus 

Payout
    	
 
    
	
 
    	
Growth   in License Annual Spend
    	
50%
    	
$50,000
    	
80%
    	
70%
    	
$35,000
    	
$11,250
    	
$23,750
    	
 
    
	
 
    	
Corporate   Operating Income
    	
50%
    	
$50,000
    	
100%
    	
100%
    	
$50,000
    	
$6,250
    	
$43,750
    	
 
    
	
 
    	
 
    	
 H2 Total
    	
$67,500
    	
 
    
	
 
    	
 
    	
 H1 Total
    	
$17,500
    	
 
    
	
 
    	
 
    	
Full Year Total
    	
$85,000
    	
 
    
	
 
    	
 
    	
% of Annual Bonus Target
    	
85.00%
    	
 
    
	
 
    	
 

Note: All Actual Plan awards will be adjusted up/down based on   Company bonus pool funding levels.

 

VIII.   Discretionary Variation

 

In addition to awards based on the   performance metrics established herein and notwithstanding any limitations   (including caps) set forth elsewhere herein, the Compensation Committee of   the Board of Directors may make discretionary awards to eligible employees in   such amounts as the Committee determines are appropriate and in the best   interests of the Company.

 

In addition, the CEO (in the case of   his direct reports) and the Compensation Committee (in the case of the CEO)   may reduce any award otherwise payable hereunder by up to 10 percent in his   or its discretion to any of said direct reports or to the CEO, as the case   may be.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
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IX.           Administration

 

Administration   of this Plan will be the responsibility of the CEO and the Compensation   Committee of the Board of Directors. Any interpretation of the terms, conditions,   goals, or payments from this Plan required because of a dispute will be made   by the CEO and the Compensation Committee in the case of a dispute relating   to employees other than the CEO, and by the Compensation Committee in the   case of a dispute relating to the CEO.

 

If   any term or condition of this Plan is found to contravene applicable law,   that term or condition will be interpreted such that it comports with   applicable law to the extent possible.

 

Eligibility   and participation in this Plan in no way implies or reflects any guarantee or   contract of employment, except as may be provided by applicable law.    The Company reserves the right to amend, modify, or terminate this Plan and   the procedures set forth herein at any time.  Any change to the terms of   the Plan will be communicated to participants in advance of the effective   date of such change, and will be subject to acceptance by the affected   participant.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
    	
 
    
	
 
    	
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Appendix   A
    
	
 
    	
 
    	
 
    	
 
    
	
Employee’s Name:
    	
Manager’s   Name:

Antonio Pietri 
    	
Organization:
    	
Date   Prepared:
    
	
FY16 Compensation
    	
Base   Salary: $
    	
Bonus   Target: $
    	
OTE:   $
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Employee
    	
 
    	
 
    
	
Signature   :
    	
 
    	
 
    	
Date:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
CEO
    	
 
    	
 
    
	
Signature   :
    	
 
    	
 
    	
Date:
    	
 
    	
 
    
	
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
    	
 
    	
 
    
	
 
    	
 
    	
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