Document:

Exhibit 10.1

 

ADAPTEC, INC.

 

Adaptec Incentive Plan Document

Fiscal Year 2005

 

1.             Plan Name and
Effective Date

 

The name of the plan is the Adaptec Incentive Plan (the “AIP”). The AIP
is effective for Adaptec’s 2005 fiscal year from April 1, 2004 through March
31, 2005 (“Fiscal Year 2005”).

 

2.             Purpose

 

The purpose of the AIP is to provide a direct financial incentive for
eligible executives, managers and individual contributors to make a significant
contribution to Adaptec’s established goals in order to help Adaptec’s
stockholders realize increased value from their investment.

 

3.             Eligibility

 

All full or part-time exempt employees in grade 21 and above are
eligible to participate in the AIP. Employees in grades 21 and above working in
Singapore are not eligible to participate in the AIP except for 8 or 9 key
managers and executives as determined by the Compensation Committee of Adaptec’s
Board of Directors (the “Compensation Committee”). All eligible employees must
have worked for Adaptec at least six months and must still be an employee of
Adaptec at the time payments are made, as discussed below, in order to qualify
to participate in the AIP. Commissioned sales employees, temporary employees
and independent contractors are not eligible to participate in the AIP.  All Adaptec employees that are eligible to
participate in the AIP are deemed to be “Participants” in the AIP.

 

4.             Timing of AIP
Payments

 

Except for holdback payments as described in Section 8 below, payments
that become due under the AIP will be paid to Participants as soon as
administratively feasible after the overall budget is approved by the
Compensation Committee following the close of the second quarter of Fiscal Year
2005 or the fourth quarter of Fiscal Year 2005, as applicable.

 

5.             Funding the AIP Pool

 

The AIP reinforces two key goals that support Adaptec’s strategic
plans: maximizing Adaptec’s revenue (“Revenue”) and maximizing Adaptec’s
Operating Profit Before Taxes (“OPBT”). 
In order for the Compensation Committee to fund the AIP incentive pool
(the “AIP Pool”) and in order for Participants to be eligible to receive
payments 

 

 

from the AIP Pool, Revenue and OPBT each must meet minimum thresholds
as determined by the Compensation Committee.

 

The matrix for determining the size of the AIP Pool for Adaptec’s Q1
and Q2 performance is set forth in Chart A and the matrix for determining the
size of the AIP Pool for Adaptec’s Q3 and Q4 performance is set forth in Chart
B. The size of the AIP Pool will be determined by the amount that each of
Adaptec’s Revenue and OPBT exceeds the minimum thresholds established by the
Compensation Committee; as Revenue and OPBT increase, the AIP Pool will
increase as set forth in Chart A and Chart B. Revenue and OPBT are each
weighted equally in determining the size of the AIP Pool.  In addition, the Compensation Committee may
increase or decrease the size of the AIP Pool by 25% based on Adaptec’s
performance during Fiscal Year 2005.

 

If the Revenue and OPBT minimum thresholds set by the Compensation
Committee are both not met, then no AIP Pool will be established.
Notwithstanding the foregoing, in extraordinary and extenuating circumstances,
the Compensation Committee may determine to fund the AIP Pool and make payments
to Participants if Revenue and/or OPBT do not meet the established minimum
thresholds.  In all cases, the
Compensation Committee must review and approve the funding of the AIP Pool.

 

Chart A

 

	
   

  	
   

  	
  Q1 and
  Q2

  	
   

  
	
   

  	
   

  	
  AIP Pool

  	
   

  	
  Revenue

  	
   

  	
  OPBT

  	
   

  
	
   

  	
   

  	
  (in millions)

  	
   

  	
  (in millions)*

  	
   

  	
  (in millions)**

  	
   

  
	
   

  	
   

  	
  6.38

  	
   

  	
  X + 26.00

  	
   

  	
  Y + 6.50

  	
   

  
	
  100% Payout==>

  	
   

  	
  5.88

  	
   

  	
  X + 24.00

  	
   

  	
  Y + 6.00

  	
   

  
	
   

  	
   

  	
  5.38

  	
   

  	
  X + 22.00

  	
   

  	
  Y + 5.50

  	
   

  
	
   

  	
   

  	
  4.88

  	
   

  	
  X + 20.00

  	
   

  	
  Y + 5.00

  	
   

  
	
   

  	
   

  	
  4.38

  	
   

  	
  X + 18.00

  	
   

  	
  Y + 4.50

  	
   

  
	
   

  	
   

  	
  3.88

  	
   

  	
  X + 16.00

  	
   

  	
  Y + 4.00

  	
   

  
	
   

  	
   

  	
  3.38

  	
   

  	
  X + 14.00

  	
   

  	
  Y + 3.50

  	
   

  
	
   

  	
   

  	
  2.88

  	
   

  	
  X + 12.00

  	
   

  	
  Y + 3.00

  	
   

  
	
   

  	
   

  	
  2.38

  	
   

  	
  X + 10.00

  	
   

  	
  Y + 2.50

  	
   

  
	
   

  	
   

  	
  1.88

  	
   

  	
  X + 8.00

  	
   

  	
  Y + 2.00

  	
   

  
	
   

  	
   

  	
  1.38

  	
   

  	
  X + 6.00

  	
   

  	
  Y + 1.50

  	
   

  
	
   

  	
   

  	
  0.88

  	
   

  	
  X + 4.00

  	
   

  	
  Y + 1.00

  	
   

  
	
   

  	
   

  	
  0.00

  	
   

  	
  X + 2.00

  	
   

  	
  Y + 0.50

  	
   

  
	
   

  	
   

  	
  0.00

  	
   

  	
  X

  	
   

  	
  Y

  	
   

  

 

 

Chart B

 

	
   

  	
   

  	
  Q3 and Q4 

  	
   

  
	
   

  	
   

  	
  AIP Pool

  	
   

  	
  Revenue

  	
   

  	
  OPBT

  	
   

  
	
   

  	
   

  	
  (in millions)

  	
   

  	
  (in millions)*

  	
   

  	
  (in millions)**

  	
   

  
	
   

  	
   

  	
  7.50

  	
   

  	
  A + 30.00

  	
   

  	
  B +7.50

  	
   

  
	
   

  	
   

  	
  7.00

  	
   

  	
  A + 28.00

  	
   

  	
  B +7.00

  	
   

  
	
   

  	
   

  	
  6.50

  	
   

  	
  A + 26.00

  	
   

  	
  B +6.50

  	
   

  
	
   

  	
   

  	
  6.00

  	
   

  	
  A + 24.00

  	
   

  	
  B +6.00

  	
   

  
	
  100% Payout==>

  	
   

  	
  5.50

  	
   

  	
  A + 22.00

  	
   

  	
  B +5.50

  	
   

  
	
   

  	
   

  	
  5.00

  	
   

  	
  A + 20.00

  	
   

  	
  B +5.00

  	
   

  
	
   

  	
   

  	
  4.50

  	
   

  	
  A + 18.00

  	
   

  	
  B +4.50

  	
   

  
	
   

  	
   

  	
  4.00

  	
   

  	
  A + 16.00

  	
   

  	
  B +4.00

  	
   

  
	
   

  	
   

  	
  3.50

  	
   

  	
  A + 14.00

  	
   

  	
  B +3.50

  	
   

  
	
   

  	
   

  	
  3.00

  	
   

  	
  A + 12.00

  	
   

  	
  B +3.00

  	
   

  
	
   

  	
   

  	
  2.50

  	
   

  	
  A + 10.00

  	
   

  	
  B +2.50

  	
   

  
	
   

  	
   

  	
  2.00

  	
   

  	
  A + 8.00

  	
   

  	
  B +2.00

  	
   

  
	
   

  	
   

  	
  1.50

  	
   

  	
  A + 6.00

  	
   

  	
  B +1.50

  	
   

  
	
   

  	
   

  	
  1.00

  	
   

  	
  A + 4.00

  	
   

  	
  B +1.00

  	
   

  
	
   

  	
   

  	
  0.50

  	
   

  	
  A + 2.00

  	
   

  	
  B +0.50

  	
   

  
	
   

  	
   

  	
  0.00

  	
   

  	
  A

  	
   

  	
  B

  	
   

  

 

6.             Calculation of
Payments

 

Chart C shows the targeted incentives by a Participant’s grade/position
and as a percentage of a Participant’s base salary if Adaptec were to reach the
100% funding level set forth in Chart A and Chart B, as applicable. Chart C
also shows what percentage of the eligible employee population would be
targeted to receive an incentive payment.

 

Chart C

 

Participants: AIP Payments (for six months)

 

	
  Grade/Position

  	
   

  	
  Target % of Base Salary

  	
   

  	
  Target Receiving

  	
   

  
	
  Chief
  Executive Officer

  	
   

  	
  85

  	
  %

  	
  100

  	
  %

  
	
  Chief
  Financial Officer

  	
   

  	
  60

  	
  %

  	
  100

  	
  %

  
	
  Vice
  President/General Manager

  	
   

  	
  50

  	
  %

  	
  100

  	
  %

  
	
  Vice
  President

  	
   

  	
  40

  	
  %

  	
  100

  	
  %

  
	
  31-33

  	
   

  	
  25

  	
  %

  	
  70-90

  	
  %

  
	
  29-30

  	
   

  	
  15

  	
  %

  	
  70-90

  	
  %

  
	
  27-28

  	
   

  	
  12

  	
  %

  	
  70-90

  	
  %

  
	
  24-26

  	
   

  	
  10

  	
  %

  	
  70-90

  	
  %

  
	
  21-23

  	
   

  	
  8

  	
  %

  	
  70-90

  	
  %

  

 

 

7.             AIP Payments

 

Once the AIP Pool amount is determined for each six-month period, the
actual payment to a Participant is based on the Participant’s performance and
can range from 0 to 200% of target incentive amount. In no case will the sum of
all payments exceed the amount funded by the AIP. All payments from the AIP
Pool made to Section 16(b) officers of Adaptec will be recommended by Adaptec’s
CEO and will be reviewed by the Compensation Committee. In addition, the
Compensation Committee will approve the CEO’s payment from the AIP Pool.

 

8.             Holdback AIP
Payments for Executive Participants

 

Payments under the AIP that are to be made to Participants with a
position of Vice President or higher (“Executive Participants”) for first and
second fiscal quarter achievements will be paid as follows.  Fifty percent (50%) of payments earned by
Executive Participants during the first half of Fiscal Year 2005 will be paid
at the same time as AIP payments are made to other Participants and fifty
percent (50%) will be held back pending the performance of Adaptec in the
second half of Fiscal Year 2005. This holdback will be paid to Executive
Participants at the same time that other Participants receive payments under
the AIP following the close of the fourth quarter of Fiscal Year 2005 and could
be funded at 0% to 150% depending on how Adaptec performs relative to the
Revenue and OPBT thresholds established by the Compensation Committee.Prepared and filed by St Ives Burrups

Exhibit 10.1

	
	
	

AMENDMENT TO

CELERA GENOMICS/APPLIED BIOSYSTEMS

MARKETING

AND

DISTRIBUTION AGREEMENT

AS OF FEBRUARY 4, 2005

	
	
	

AMENDMENT TO

CELERA GENOMICS/APPLIED BIOSYSTEMS

MARKETING AND DISTRIBUTION AGREEMENT

AMENDMENT TO CELERA GENOMICS/APPLIED BIOSYSTEMS MARKETING AND DISTRIBUTION AGREEMENT (this “Amendment”), dated as of the 4th day of February, 2005, by and among Applera Corporation (“Applera”), the Applied Biosystems Group of Applera (“ABI”), and the Celera Genomics Group of Applera (“CRA”).

RECITALS

WHEREAS, the parties have entered into a Celera Genomics/Applied Biosystems Marketing and Distribution Agreement effective as of April 1, 2002, and amended and restated as of June 22, 2004 (the “Agreement”);

WHEREAS, because ABI and CRA are both Applera businesses, the Agreement was originally entered into on the basis that the Applera Corporation Board of Directors (the “Board”) would retain authority over the Agreement and monitor performance thereunder;  

WHEREAS, the terms and conditions of the Agreement were established based upon, among other things, assumptions by all of the parties regarding ABI’s development and commercialization of products covered by the Agreement;

WHEREAS, in light of the fact that ABI’s experience with the development and/or commercialization of some products covered by the Agreement has varied from original assumptions, and to further the interests of the parties based on their original intents when they entered into the Agreement, the parties have proposed amending (i) the Agreement as set forth herein to extend the term of the Agreement by five years, and (ii) the royalty schedule as currently in effect pursuant to Section 4.1 of Annex A to the Agreement in light of such extended term (such royalty schedule, as amended, is generally described in Schedule I attached hereto); and

WHEREAS, the amendments set forth herein, and the above-mentioned revisions to the royalty schedule, have been approved by the Board pursuant to Sections 4.1, 9, and 10 of Annex A to the Agreement. 

NOW, THEREFORE, the parties hereto agree to the following amendments to Annex A to the Agreement:

1.    Section 4.1(a) of Annex A is hereby amended and restated in its entirety to read as follows:

	 	In exchange for marketing and distribution rights for Covered Products as described in Section 1 above, AB shall pay Celera a royalty quarterly through AB’s 2017 fiscal year based on revenues from Related Products.  The royalty shall be as heretofore approved by the Applera Board, subject to such amendments as the Applera Board shall from time to time approve.

2.    Section 7.1 of Annex A is hereby amended and restated in its entirety to read as follows: 

	 	Term.  This Agreement shall become effective as of the Effective Date and shall terminate as of the close of business on June 30, 2017 (the “Term”), provided, however, that (a) any amounts payable by AB to Celera as of the termination date shall continue to be payable in accordance with the terms of this Agreement and (b) Section 7.2 below shall survive such termination.  

IN WITNESS WHEREOF, the parties agree to the foregoing as of the date first written above.

		 	APPLERA CORPORATION
		 	 
		By:	/s/ Tony L. White                     
		 	Name: Tony L. White
		 	Title: Chairman, President and 
		 	Chief Executive Officer
		 	 
		 	APPLIED BIOSYSTEMS GROUP OF APPLERA
    CORPORATION
		 	 
		By:	/s/ Catherine M. Burzik       
		 	Name: Catherine M. Burzik
		 	Title: President
		 	 
		 	CELERA GENOMICS GROUP OF APPLERA
    CORPORATION
		 	 
		By:	/s/ Kathy
Ordoñez        
		 	Name: Kathy Ordoñez
		 	Title: President

Schedule I to Amendment

Description of New Royalty Schedule

For fiscal years prior to and including fiscal year 2005, the royalty rate is progressive, up to a maximum of 5%, with the level of sales; and from and including fiscal year 2006 through the remaining term of the Agreement, the royalty rate is fixed at 4%.

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