Document:

Exhibit 10.8

 

ACME
PACKET, INC.

 

RESTRICTED
STOCK UNIT AGREEMENT

(Form of Restricted Stock
Unit Agreement for the 2006 Equity Incentive Plan for Employees)

 

This RESTRICTED STOCK UNIT AGREEMENT, dated
as of <date> (this “Agreement”), is between ACME PACKET, INC., a
Delaware corporation (the “Company”), and <Grantee Name> (the “Grantee”).
Capitalized terms used herein without definition shall have the meaning
ascribed to such terms in the Company’s 2006 Equity Incentive Plan, a copy of
which is attached hereto as Exhibit A (the “Plan”).

 

1.             Grant  of  Restricted  Stock
Unit  Award. Pursuant to the Plan, the Company grants to the
Grantee a total of <Number of Units> Restricted Stock Units (the “Units”),
subject to adjustment pursuant to Section 8 of the Plan. Subject to, and
in accordance with, the provisions of Section 2 below, each Unit entitles
Grantee to receive from the Company one (1) share of Common Stock in
accordance with the terms of this Agreement and the Plan. This Award is granted
as of <Date of Grant> (the “Grant  Date”). As used here in,
the term “Vesting Start Date” shall mean <Vesting Start Date>.

 

2.             Settlement of Units.

 

(a)           Settlement. On the fifth business day
after the day on which any Units are no longer subject to risk of forfeiture
pursuant to, and in accordance with, Section 3 below, the Company shall
deliver or cause to be delivered to Grantee a stock certificate registered in
the name of Grantee in respect of the shares of Common Stock subject to such
Units.

 

(b)           Other Lapse or Termination of Risk of
Forfeiture. With respect to any Units that remain subject to risk of
forfeiture under Section 3 on the fifth business day after the day on
which such risk of forfeiture shall have lapsed or terminated pursuant to, and
in accordance with, the provisions of Section 4 below, the Company shall
deliver or cause to be delivered to Grantee a stock certificate registered in
the name of Grantee in respect of the shares of Common Stock subject to those
Units in respect of which such risk of forfeiture shall have so lapsed or
terminated.

 

(c)           Effect of Settlement. Upon delivery
of a stock certificate to the Grantee pursuant to the provisions of this Section 2,
the corresponding portion of the Units being settled shall be satisfied in full
and Grantee shall have not further rights with respect thereto.

 

3.             Forfeiture; Lapse  of  Risk
of  Forfeiture. Subject to the other provisions of this Section 3
and to the provisions of Section 4 below, the Units shall be forfeited
(without any settlement thereof pursuant to Section 2(a) above) if
the Grantee’s association with the Company or any of its Affiliates as an
employee, director or consultant ends for any reason or no reason, regardless
of whether the end of such association is effected by the Company, any such
Affiliate or the Grantee (whether voluntarily or involuntarily, including
because an entity with which the

 

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Grantee has any such association ceases to be an Affiliate of the
Company), and immediately following the end of any such association, the
Grantee is not associated with the Company or any of its Affiliates as an
employee, director or consultant, or if the Grantee dies; provided, however,
that military or sick leave or other bona fide leave shall not be deemed a
termination of employment, if it does not exceed the longer of ninety (90) days
or the period during which the absent original grantee’s reemployment rights,
if any, are guaranteed by statute or by contract. Notwithstanding the foregoing
provisions of this Section 3 to the contrary, [(i) 50% of the Units
shall no longer be subject to forfeiture or risk of forfeiture pursuant to this
Section 3 on the second anniversary of the Vesting Start Date; and (iii) the
balance of the Units shall no longer be subject to forfeiture or risk of
forfeiture pursuant to this Section 3 on the third anniversary of the
Vesting Start Date](1); provided, however, that the foregoing
provisions of this sentence shall only operate to release Units from risk of
forfeiture under this Section 3 until and including the date that the
Grantee has no association with the Company or any of its Affiliates as an
employee, director or consultant.

 

4.             Acceleration  or  Other
Termination  of  Risk  of  Forfeiture.

 

(a)           Upon Election by the Board or the
Compensation Committee. Notwithstanding anything in Section 3 above to
the contrary, the Board or the Compensation Committee may, at any time and in
its discretion in accordance with the provisions of Section 7.3(a) of
the Plan, cause any or all Units that remain subject to a risk of forfeiture
under Section 3 hereof, as applicable, to cease to be subject to such risk
of forfeiture.

 

(b)           Upon Termination of Employment Following
a Change of Control. Notwithstanding anything in Section 3 above to
the contrary but subject to the provisions of Section 4(c) below, in
the event that (i) a Change of Control occurs prior to the time that all
of the Units shall no longer be subject to any risk of forfeiture under Section 3,
(ii) the Grantee is an employee of the Company or any of its Affiliates
immediately prior to such Change of Control, 
and (iii)  either (A) the Grantee voluntarily terminates his
employment with the Company and  all of
its Affiliates following (x) any material
adverse change (without Grantee’s written consent) in the authorities, duties
or responsibilities of Grantee’s employment with the Company or any of its
Affiliates that occurs as a result of, or after, such Change of Control or
(y) any relocation of the Grantee (without his written consent) by the
Company or any of its Affiliates after such Change of Control to a location
that increases Grantee’s commute prior to such relocation by more than fifty
(50) miles or (B) the Company or any of its Affiliates terminates the
Grantee’s employment with the Company and all of its Affiliates for any reason
or no reason (other than Cause, as such term is defined in Section 4(d) below),
in the case of any of the foregoing clauses (A) or (B) if the
applicable termination of employment occurs at any time within 365 days after
the occurrence of such Change of Control, then fifty percent (50%) of such
Units that are, immediately prior to any such termination of employment by
Grantee or by the Company or any of its Affiliates, still subject to risk of
forfeiture under Section 3 shall, immediately following any such
termination of employment by Grantee or by the Company or any of its
Affiliates, no longer be subject to any risk of forfeiture under Section 3
above, as applicable . In the case of

 

(1) The specific vesting schedule of each Award under the Plan is
determined at the discretion of the Board or the Compensation Committee on a
case-by-case basis at the time of grant.

 

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those Units that are, immediately prior to any such termination of
employment by Grantee or by the Company or any of its Affiliates, still subject
to risk of forfeiture under Section 3, the foregoing provisions of this Section 4(b) shall
be implemented ratably across all of such Units regardless of the date when
each of such Units would have otherwise no longer been subject to risk of
forfeiture under Section 3 above.

 

(c)           Continuation of Employment by Successor.
If the Grantee is an employee of the Company or any of its Affiliates immediately
prior to a Change of Control, then employment of the Grantee following such
Change of Control by any person or entity that is the successor or acquiror of
the Company as a result of such Change of Control or that is the parent company
or affiliate of such successor or acquiror (in either case, the “Successor
Employer”) shall be treated under this Agreement as if the Grantee
continued to be employed by the Company, and in such context any reference in
this Agreement to the Company shall be deemed to be a reference to the
Successor Employer.

 

(d)           Definition of Cause. For purposes of
this Agreement, the term “Cause” shall mean
(i) if the Grantee is convicted of, or pleads guilty or no contest to, a
felony or any crime involving moral turpitude, deceit, dishonesty or fraud; (ii) any
act of embezzlement, theft, sexual harassment, discrimination, fraud or other
acts of a criminal nature by the Grantee in his dealings with the Company, any
of its Affiliates or any of their respective employees or representatives, as
determined by the Board of Directors of the Company; (iii) the breach by
the Grantee of any material term of an agreement with the Company or any of its
Affiliates, including covenants not to compete and provisions relating to
confidential information and intellectual property rights; or (iv) any
failure by the Grantee to comply with a specific directive given by the Company’s
executive officers or Board of Directors which failure has not been cured
within 30 days after written notice from the Company.

 

5.             Dividends. Grantee shall not be
entitled to receive payments equivalent to any dividends declared with respect
to Common Stock underlying the Units.

 

6.             Transfer  of  Units. Other
than as expressly permitted by the provisions of Section 7.3(e) of
the Plan, the Units may not be transferred except by will or the laws of
descent and distribution and, during the lifetime of the Grantee, may be
exercised only by the Grantee.

 

7.             Tax  Withholding. Pursuant to
Section 9.7 of the Plan, the Company has the right to require the Grantee
to remit to the Company an amount sufficient to satisfy federal, state, local
or other withholding tax requirements if, when, and to the extent required by
law (whether so required to secure for the Company an otherwise available tax deduction
or otherwise) prior to the delivery of any certificate or certificates for such
shares issuable upon settlement of the Units. The obligations of the Company
under this Agreement and the Plan shall be conditional on satisfaction of all
such withholding obligations and the Company shall, to the extent permitted by
law, have the right to deduct any such taxes from any payment of any kind
otherwise due to the recipient of an Award. However, Grantee may elect to
satisfy any applicable withholding requirement, in whole or in part, by having
the Company withhold shares issuable upon settlement of the Units to satisfy
their tax obligations. Grantee may only elect to have shares of Common Stock
withheld having a Market Value on the date the tax is to be determined equal to

 

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the minimum statutory total tax which could be imposed on the
transaction. Any such election shall be irrevocable, made in writing, signed by
the Grantee, and shall be subject to any restrictions or limitations that the
Committee deems appropriate.

 

8.             Incorporation  of  Plan
Terms. The Units are granted subject to all of the applicable terms and
provisions of the Plan, including, but not limited to, the limitations on the
Company’s obligation to deliver shares of Common Stock upon termination of the
restrictions set forth in Section 9.1 (Violation of Law), Section 9.2
(Corporate Restrictions on Rights in Stock), and Section 9.3 (Investment
Representations).

 

9.             Miscellaneous. This Agreement shall
be construed and enforced in accordance with the internal, substantive laws of
The Commonwealth of Massachusetts and shall be binding upon and inure to the
benefit of any successor or assign of the Company and any executor,
administrator, trustee, guardian, or other legal representative of the Grantee.

 

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remainder of this page is intentionally left blank.]

 

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IN WITNESS WHEREOF, the parties have executed
this Restricted Stock Unit Agreement as a sealed instrument as of the date
first above written.

 

 

	
  ACME PACKET, INC.

  	
   

  	
  GRANTEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Grantee’s Address:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

5Exhibit 10.1

 

	
  

  	
  Fiscal
  Year 2008 Bonus Plan

   

  

 

INTRODUCTION

 

This
Fiscal Year 2008 Bonus Plan (the “Plan”) is intended to provide executives and
other eligible participants with financial incentives for their important
contributions to our success.  Executives
in the Plan have the potential to earn a bonus payout equal to a maximum
percentage of bonus eligible base salary as specified for each participant by
the Compensation Committee.  Michaels
Stores Inc.’s top priority is to achieve its sales and earnings goals, and
maximize company profitability.

 

BONUS
MEASURES

 

To
further the Company’s strategy of paying for performance, participant bonuses
are generally based on the overall company performance, business unit metrics
and individual performance as measured against established objectives.  For Fiscal Year 2008, the Plan measures for
each participant shall consist of: (a) a Corporate Financial Performance
measure of EBITDA minus Inventory Charge (1), (b) a
Business Unit performance measure, if applicable, and (c) an individual
performance measure as established by the Compensation Committee.  The Compensation Committee will establish the
weight of each measure, and the threshold, target and maximum performance metrics.

 

(1)May exclude
additional charges as approved by the Compensation Committee of the Board of
Directors.

 

EBITDA

 

EBITDA
is short for “Earnings Before
Interest, Taxes,
Depreciation and Amortization”.  It is a measure that indicates the Company’s
operating profitability before non-operating expenses and non-cash charges,
calculated by taking operating income and adding back depreciation and
amortization expenses.  Amortization
refers to spreading an intangible asset’s value over that asset’s useful life.  An example of an intangible asset would be
leasehold improvements (changes we make to a store location to make the
building setup consistent with a Michaels store layout). Depreciation, on the
other hand, refers to the spreading of a tangible asset’s cost over that
asset’s life, such as store fixtures or computer equipment.

 

EBITDA
is intended to be a measure that is much more closely linked to the cash flow
that the business generates from its operations – a measure of the
profit and loss statement (P&L) based on the cash we take in each day (sales),
less the ongoing cash we are spending (cost of sales and expenses).  Since EBITDA is a key measure common to all
Michaels’ corporate bonus plans, everything you and your co-workers do to
support the stores in driving sales and controlling your work expenses will
help maximize your bonus potential!

 

INVENTORY CHARGE

 

The inventory charge is much like an “interest charge” to cover the
cost of buying and holding inventory, and is subtracted from the EBITDA number
in order to give us an incentive as a company to not over-buy inventory, since
too much inventory takes cash away from the company’s ability to fund
initiatives and pay down debt.  A percent
charge per month on the cost of average monthly inventory the company carries
of 12% per year is deducted from the EBITDA number.  The resulting EBITDA minus inventory charge
is then used as the key corporate financial performance measure in your bonus
plan and all other corporate bonus plans to promote alignment of goal
achievement throughout our incentive plans.

MINIMUM COMPANY THRESHOLD PERFORMANCE

 

Before any Business Unit or Individual Performance portion can be
earned, the actual results of the Corporate Financial Performance measure
(Michaels Stores Inc. EBITDA minus inventory charge) must at least meet a
minimum level of performance (“Threshold”) established by the Compensation
Committee.

 

	
  © 2008 MICHAELS STORES INC.

  	
   

  	
  MSI CONFIDENTIAL

  

 

1

 

PERFORMANCE
LEVELS AND BONUS PAYOUTS

 

For
all company, business unit, and individual performance bonus plan measures,
there are four major performance levels: 
Below Threshold, Threshold, Target and Maximum.  Bonus payout percentages will be based upon
the achieved level of performance for each of the participant’s bonus plan
measures.  To determine the actual payout
percent, each bonus measure’s performance must be calculated (percent achieved
between Threshold and Target, or Target and Maximum), weighted, multiplied by
the eligible base salary as of January 31, 2009, and adjusted for any
applicable proration.

 

If
the participant changes positions during the fiscal year, resulting in a change
in bonus plan: 1) his/her base salary prior to the change will be used as the
eligible base salary for his/her former position; and 2) he/she will have
separate performance appraisal ratings – one for the former position and one
for the current position – used in the calculation of his/her year end bonus.
(Ratings will be determined by the appropriate supervisor – with the year end rating
determining eligibility for merit increase consideration.)

 

The performance of each bonus measure is evaluated independently, and
the achieved bonus percentage for each measure is added together to arrive at
the percentage of total bonus achieved. 
A bonus calculation worksheet will be provided to each participant.

 

SCALING OF PAYOUT PERCENTAGE

 

When performance falls at any point between the Threshold and Maximum
goals, the participant’s bonus payout will be scaled according to the
performance above or below the Target goal. 
The bonus amount is scaled to the nearest hundredth of a percent when
comparing plan to actual results.  All
calculations will be rounded to the nearest hundredth.  The
Individual Performance portion of the bonus has four bonus payout levels based
upon the Annual FY 2008 Performance Appraisal Rating, and no scaling will be
applied.  (“Needs Development”
Performance Rating equals zero bonus for the performance component).

 

BONUS
SCALING FORMULAS

 

The
following formulas illustrate how bonus scaling is applied in calculating the
Actual Bonus percentages achieved for the corporate and any business unit
financial measure:

Scenario 1: Actual
performance is above
target goal:

Scenario 2: Actual
performance is below  target
goal:

Note: Wtd = Weighted; PLAN = Target

ELIGIBILITY

 

To
be eligible for a bonus under the Fiscal Year 2008 Bonus Plan, the participant
must meet all of the eligibility factors:

 

·      The Fiscal Year bonus eligibility dates begin on February 3, 2008,
and conclude on January 31, 2009. 
If an associate is not employed in a bonus eligible position at the
beginning of the fiscal year, February 3, 2008, but assumes a bonus
eligible position on or before November 15, 2008, he/she will be eligible
to earn a prorated bonus based upon the number of full months that he/she was
in the bonus eligible position. 
Individuals who assume a bonus eligible position on or before the 15th
of the month will receive credit for that entire month.  Individuals who assume such a position after
the 15th will not receive credit for that month.  Individuals who change positions during the
fiscal year will receive credit for bonus calculation purposes based upon the
bonus level of the position he/she is in on the 15th of the month,
in accordance with the bonus plan for the credited position.

 

·      An associate must have worked for at least three months in a bonus
eligible position in Fiscal Year 2008.

 

·      Bonus eligible positions are defined as any regular full-time
associates in one of the following store or corporate positions:

 

	
  Store Positions

  	
   

  	
  Corporate
  Positions

  
	
  Store Manager and Assistant Manager (excludes MITs)

  	
   

  	
  Corporate Manager through Executive Committee Member
  or FY08 MIK Power eligible associates (Includes Artistree and Aaron Brothers)

   

  Distribution Center Coach, Manager, Assistant
  General Manager and General Manager

  

 

·      An associate must be employed in a bonus eligible position at the end
of the fiscal year,

 

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January 31, 2009, in order to be eligible to receive a bonus.  In the event an associate terminates
employment between February 1, 2009 and the bonus check date, the
individual Performance Appraisal portion of the associate’s bonus will be calculated
based upon a rating of one level higher than Needs Development (i.e., “Mixed
Performance”).  All bonus payments
payable under this Bonus Plan will normally occur between April 1st
and April 30th, following the end of the fiscal year, provided
that all eligibility criteria as set forth in this bonus plan document are met.

 

·      If an associate is promoted or changes position during the fiscal year,
the associate may be eligible for bonus earnings calculated using the number of
full months in each position, the respective base salaries and performance
ratings, and the applicable target bonus amount(s).

 

·      An associate is not eligible for a bonus under this Bonus Plan if the
associate received a Performance Improvement Plan during Fiscal Year 2008 and
the associate remains on the Performance Improvement Plan at the time of bonus
payout (check date).

 

HOW A BONUS IS EARNED

 

In order to earn a bonus under this Fiscal Year 2008 Bonus Plan, the
associate must first satisfy all of the requirements in the Eligibility section
of the Bonus Plan.  In addition, and to
the extent allowed by applicable law, the associate will not earn, and no bonus
will be paid, unless the associate is employed in a bonus eligible position at
the end of the fiscal year, January 31, 2009.

 

The Company anticipates that this Bonus Plan will be part of an ongoing
bonus program, but the Company does not guarantee that the program will in fact
continue for future periods or that the terms, amounts or measures of the
program will not change.  To the extent
allowed by law, Michaels Stores, Inc. reserves the right to change or
cancel any portion(s) of this Bonus Plan for any reason. This Bonus Plan
does not constitute a contract or other agreement concerning the duration of
any associate’s employment. To the extent allowed by law, the employment
relationship remains “at will” and may be terminated at any time, with or
without cause.  This Bonus Plan shall be
administered by the Compensation Committee of the Board of Directors, in its
sole discretion.

 

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