Document:

Exhibit

Exhibit 10.1

Aspen Technology, Inc.
FY20 Executive Bonus Plan

For 

Executive Name

		
	I.
	Purpose

The purpose of the Executive Bonus Plan is to motivate and reward eligible participants to achieve and exceed Aspen Technology, Inc.’s financial and operational objectives.

		
	II.
	Effective Period of Plan

The Plan shall be effective on July 1, 2019 and shall continue through the Plan Year.

		
	III.
	Definitions

Bonus Plan Metrics means the objectives set forth in Section IV against which Plan achievement is measured.
Bonus Pool means the funds available for distribution to participants.  
Bonus Target means the bonus potential at 100% Bonus Plan Metric achievement. 
Company means Aspen Technology, Inc. and its subsidiaries.
Participant means an employee who is a designated Executive whose position is determined by Aspen Technology to have significant impact on the operating results of the Company.  For avoidance of doubt, contractors and/or consultants are not Participants.
Plan means this Executive Bonus Plan, as set forth in this instrument and as hereafter amended from time to time.
Plan Year means July 1, 2019 through June 30, 2020.

		
	IV.
	Bonus Plan Metrics, Targets and Weights

Plan metrics, targets and weights are approved by the Board of Directors.  FY20 plan metrics and weights are:
	
		
	FY20 Bonus Plan Metric
	Weight

	Growth in Annual Spend (GAS)
	60%

	Free Cash Flow
	40%

		
	V.
	 Bonus Pool Funding

The Bonus Pool is funded through the achievement of Bonus Plan Metrics.  Each metric is measured and funded independently according to the following table:
	
		
	Bonus Plan Metric
Actual Achievement 
	Bonus Plan Metric
Funding Level 
Based on Actual Achievement

	< 70% of Target
	0%

	70% of Target
	50%

	80% of Target
	70%

	90% of Target
	90%

	100% of Target
	100%

A minimum metric achievement of 70% is required to fund each metric. The funding level ratio is 2:1 for performance between 70% and 89%.  The ratio is 1:1 for performance between 90% and 100%.  
		
	VI.
	Bonus Payment(s)

Bonus payments (if any) are paid on a semi-annual basis.   There is a mid-year payment and year-end payment opportunity.  Bonus payments (if any) are typically made within 90 days of the end of the respective performance periods, consistent with local payroll schedules and requirements.  Payments under this Plan are subject to all applicable taxes and withholdings.
The mid-year payment is based on the Company’s mid-year performance against mid-year Bonus Plan Metrics and will not exceed 25% of the annual bonus target.  
The year-end payment is based on the Company’s total annual performance against Bonus Plan Metrics, less any mid-year payment received. 
Should the mid-year bonus earned be less than the targeted 25% of bonus potential, the unrealized difference (up to the 25% mid-year potential) can be made up at year-end based on achievement against annual Bonus Plan Metrics.
		
	VII.
	  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 authorize discretionary awards to eligible Participants 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.
		
	VIII.
	 Eligibility/Changes in Status

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 any 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, subject to any Executive Retention Agreement then in force.

Participants who join the Company during a Plan Year will be eligible to participate on a pro rata basis as follows:
	
				
	H1 Payment
	H2 Payment

	Started on or before September 30
	Started after September 30
	Started on or before 
March 31
	Started after March 31

	Eligible
	Not Eligible
	Eligible
	Not Eligible

If an employee has a promotion, transfer or other job change, the payment calculation will be made based on the job the employee holds at the end of the relevant payment period. Payments, if any, for Participants on disability or leave of absence will be prorated for any leave time in excess of 30 days, where applicable.
Proration is calculated on a daily basis based on a 365-day year.  
		
	IX.
	  Miscellaneous

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.
Eligibility and participation in this Plan in no way implies or reflects any guarantee or contract of employment, nor does eligibility for bonus in this current year constitute eligibility in future year(s), except as may be stipulated by applicable law.  
The Company, through the Compensation Committee of the Board, reserves the right to modify or terminate this Plan and the procedures set forth herein at any time.  
A Participant who believes there is an error in his/her bonus calculation must notify his/her manager within 30 days of a bonus payment date; otherwise, the calculation will be deemed correct. In any event, the Company reserves the right to recover payments made in error, if any.

Appendix A

	
				
	Employee’s Name:
	Manager’s Name:
	Organization:
	Date Prepared:

	 
	 
	 
	 

	FY20 Compensation
	Base Salary: $
	Bonus Target: $
	OTE: $

Employee Signature: _______________________________________        Date: _____________

Manager Signature: ______________________________________        Date: _____________hstm-ex1018_63.htm

 

EXHIBIT 10.18 

HealthStream, Inc. 

Board of Directors 

Compensation Committee

Amended 2019 Executive and Corporate Management Cash Incentive Bonus Plan 

 

Overview:

 

Pursuant to the HealthStream, Inc. 2016 Omnibus Incentive Plan, the Compensation Committee (the “Committee”) of the Board of Directors of HealthStream, Inc. (the “Company”) hereby establishes this Amended 2019 Executive and Corporate Management Cash Incentive Bonus Plan (the “Plan”).  The Plan is the cash-based, short-term incentive portion of HealthStream's incentive compensation structure for certain executive officers, as well as the vice presidents, associate vice presidents, and directors who are assigned to a corporate function, as opposed to a business unit specific function (such individuals referred to collectively as “Management”).  The purpose of the Plan is to specify appropriate opportunities to earn a cash bonus with respect to the Company’s 2019 fiscal year in order to reward Management for the Company’s financial performance during fiscal year 2019 and to further align their interests with those of the shareholders of the Company.

 

Definitions:

 

	
 
	
•
	
Actual Operating Income before bonuses – The Company’s Operating Income achieved in fiscal 2019, excluding bonuses. 

 

	
 
	
•
	
Annual Bonus – The annual bonus paid to Management after the Committee determines the applicable financial measure has been achieved.

 

	
 
	
•
	
Incremental Operating Income - Actual Operating Income before bonuses less Target Operating Income.

 

	
 
	
•
	
Operating Income – The Company’s operating income for the 2019 fiscal year calculated in accordance with generally accepted accounting principles under ASC 606 and consistent with the Company’s past practice and presented in the Company’s audited financial statements, provided the following are excluded from the calculation of Operating Income: (i) acquisition and divestiture expenses incurred within the calendar year to the extent such expenses are in excess of the amount originally allocated to such purpose in the Company’s 2019 budget; (ii) operating income (loss) from acquisitions and divestitures consummated during the calendar year; and (iii) expenses in connection with the stock contribution from Robert A. Frist, Jr. to the Company on or about June 26, 2019 and the associated stock issuance from the Company to non-executive officers of the Company on or about July 25, 2019 (collectively, the “Excluded Expenses”).  The Committee has the negative discretion to include the Excluded Expenses in the calculation of Operating Income. 

 

	
 
	
•
	
Target Operating Income – Operating Income for the 2019 fiscal year in an amount established by the Committee by resolution within the first 90 days of the Company’s 2019 fiscal year.

 

 

2019 Financial Measure and Plan Principles:

 

	
 
	
1.
	
The financial measure for 2019 is Operating Income - Operating Income will be the financial measure for 2019.

 

	
 
	
2.
	
The Annual Bonus is funded by Incremental Operating Income - The Annual Bonus will be earned from the amount of Incremental Operating Income. 

 

The Plan

 

Eligibility

 

 

 

Three groups are eligible for participation in the Plan:

 

	
 
	
•
	
Executive Team – The maximum Annual Bonus that Executive Team members, other than the Chief Executive Officer of HealthStream and the President & Chief Operating Officer of HealthStream, shall be eligible to receive under the Plan shall be an amount equal to 30% of such member’s base salary; provided the CEO and the President & COO shall be eligible to receive an amount equal to 40% of their base salary.  Unless otherwise excluded below, the Executive Team eligible for participation includes the Chief Executive Officer, President & Chief Operating Officer, and Senior Vice Presidents of the Company.

 

	
 
	
•
	
      Leadership Team (Vice Presidents and Associate Vice Presidents) – The   

      maximum Annual Bonus that Vice Presidents and Associate Vice Presidents of     

      the Business Unit shall be eligible to receive under the Plan shall be an amount 

      equal to 16% of such Vice President or Associate Vice President’s base salary.

 

	
 
	
•
	
Directors - The maximum Annual Bonus that Directors of the Business Unit shall be eligible to receive under the Plan shall be an amount equal to 4% of such Director’s base salary.  For purposes of clarity, Directors do not include members of the Board of Directors, but are management-level employees of the Company.

 

	
 
	
•
	
      Employment Requirements – Participants in the Plan who were employed with   

the Company through December 31, 2019 shall be eligible to receive bonus payments, if any, under the Plan regardless of whether such employees are employed on the date such payments are actually made.  Notwithstanding the foregoing, in the case of death or disability, the participant’s pro rata share from January 1, 2019 through the date of participant’s death or disability shall be awarded.

 

	
 
	
•
	
Exclusions - Members of the Executive Team with a commission based incentive compensation plan shall not be eligible to participate in the Plan.  Additionally, members of the Executive Team who are eligible to participate in any one of the following shall not be eligible to participate in the Plan:  (i) the 2019 Workforce Development Cash Bonus Incentive Plan, or (ii) the 2019 Provider Solutions Cash Bonus Incentive Plan.

 

Payout 

 

Payouts under the Plan shall be determined as follows:

 

	
 
	
1.
	
Incremental Operating Income will be determined by subtracting the Target Operating Income from Actual Operating Income before bonuses.  The Incremental Operating Income will then be multiplied by 30% of base salary for each member of the Executive Team other than the Chief Executive Officer and the President & COO, 40% of base salary for the CEO and the President & COO, 16% of base salary for each member of the Leadership Team, and 4% of base salary for each Director.

 

	
 
	
2.
	
Any Annual Bonus payouts made to the Executive Team, Leadership Team, or Directors pursuant to the Plan shall be payable at such time as bonuses are paid generally to executive officers of the Company.

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