Document:

exv10w24

 

Exhibit 10.24

Summary of 2004 Bonus Plan for Executive Officers of Applix, Inc.

     For fiscal year 2004, the Compensation Committee (the “Compensation
Committee”) of the Board of Directors of Applix, Inc. (the “Company”)
established a bonus program for the executive officers (the “2004 Bonus Plan”)
based on a variety of corporate objectives, including revenue, earnings and
cash goals, as well as, for certain executive officers, the attainment of
individual objectives. As such, bonuses are comprised of amounts determined
pursuant to a formula based on overall corporate objectives and, if applicable,
amounts determined on a discretionary basis by the Compensation Committee for
individual objectives and achievements. The 2004 Bonus Plan is subject to
adjustment or modification by the Compensation Committee at any time. The
following summarizes the bonus criteria for each of the Company’s executive
officers:

David Mahoney

     Mr. Mahoney’s target bonus under the 2004 Bonus Plan is $150,000,
comprised of quarterly target bonuses of $20,000 each quarter payable upon the
achievement of quarterly goals and $70,000 payable after the end of 2004 for
the achievement of annual corporate goals and individual goals.

     Quarterly Goals

     Mr. Mahoney’s quarterly goals are based on the Company achieving targets
established by the Compensation Committee for each quarter for revenue (upon
which 34% of his quarterly target bonus is based), earnings (upon which 33% of
his quarterly target bonus is based) and cash (upon which 33% of his quarterly
target bonus is based). The Company will pay those portions of the quarterly
target bonus tied to revenue and cash if the Company attained at least 90% of
such quarterly revenue or cash target, with (i) 90% payable if the applicable
quarterly target was 90% achieved and an additional 1% payable for each
percentage point of achievement above 90% (for example, 95% achievement equals
95% payable), (ii) 100% payable if the applicable quarterly target was 100%
achieved, and (iii) up to 110% payable if the applicable quarterly target was
up to 120% achieved (for each percentage point over 100%, the bonus payable
will increase by 0.5%). The Company will pay that portion of the quarterly
target bonus tied to earnings if the Company attained at least 80% of the
quarterly earnings target, with (i) 25% payable if the quarterly earnings
target was 80% achieved, (ii) 50% payable if the quarterly earnings target was
90% achieved, (iii) 100% payable if the quarterly earnings target was 100%
achieved, and (iv) up to 150% payable if the quarterly earnings target was up
to 120% achieved (for each percentage point over 100%, the bonus payable will
increase by 2.5%).

     Annual/Individual Goals

     Mr. Mahoney is eligible to receive $70,000 of his target bonus under the
2004 Bonus Plan after the end of 2004 based on the Company achieving annual
goals (upon which 40% of his year-end target bonus is based) and Mr. Mahoney
achieving individual goals (upon which 60% of his year-end target bonus is
based).

     The Company’s goals upon which Mr. Mahoney’s year-end target bonus is
based relate to (i) revenue (upon which 20% of his year-end target bonus is
based) and (ii) earnings (upon

 

 

which 20% of his year-end target bonus is
based). The bonus is payable upon 95% achievement of the annual targets for
revenue or earnings, as the case may be. The calculation of the payable bonus
is linear beginning at 95% and ending at 120%. For example, if the annual
earnings target is met 110%, Mr. Mahoney would receive 110% of $14,000, that
portion of his bonus determined by the annual earnings target.

     Mr. Mahoney’s individual goals have been established by the Compensation
Committee. The Compensation Committee shall determine, in its discretion, the
extent to which Mr. Mahoney has met each such individual goal and,
correspondingly, the extent to which the portion of his year-end target bonus
based on individual goals ($42,000) is payable.

Milton Alpern

     Mr. Alpern’s target bonus under the 2004 Bonus Plan is $90,000, comprised
of quarterly target bonuses of $17,500 each quarter payable upon the
achievement of quarterly goals and $20,000 payable after the end of 2004 for
the achievement of individual goals.

     Quarterly Goals

     Mr. Alpern’s quarterly goals are based on the Company achieving targets
established by the Compensation Committee for each quarter for revenue (upon
which 34% of his quarterly target bonus is based), earnings (upon which 33% of
his quarterly target bonus is based) and cash (upon which 33% of his quarterly
target bonus is based). The Company will pay that portion of the quarterly
target bonus tied to revenue if the Company attained at least 80% of the
quarterly revenue target, with (i) 80% payable if the quarterly revenue target
was 80% achieved, and an additional 1% payable for each percentage point of
achievement above 80% (for example, 90% achievement equals 90% payable), (ii)
100% payable if the quarterly revenue target was 100% achieved, and (iii) up to
110% payable if the quarterly revenue target was up to 120% achieved (for each
percentage point over 100%, the bonus payable will increase by 0.5%). The
Company will pay that portion of the quarterly target bonus tied to earnings if
the Company attained at least 80% of the quarterly earnings target, with (i)
25% payable if the quarterly earnings target was 80% achieved, (ii) 50% payable
if the quarterly earnings target was 90% achieved, (iii) 100% payable if the
earnings target was 100% achieved, and (iv) up to 150% payable if the quarterly
earnings target was up to 120% achieved (for each percentage point over 100%,
the bonus payable will increase by 2.5%). The Company will pay that portion of
the quarterly target bonus tied to cash if the Company attained at least 90% of
the quarterly cash target, with (i) 90% payable if the quarterly cash target
was 90% achieved, and an additional 1% payable for each percentage point of
achievement above 90% (for example, 95% achievement equals 95% payable), (ii)
100% payable if the quarterly cash target was 100% achieved, and (iii) up to
110% payable if the quarterly cash target was up to 120% achieved (for each
percentage point over 100%, the bonus payable will increase by 0.5%).

     Individual Goals

     Mr. Alpern is eligible to receive $20,000 of his target bonus under the
2004 Bonus Plan after the end of 2004 based on Mr. Alpern’s achievement of
individual goals determined by the Chief Executive Officer of the Company. The
Compensation Committee shall determine, in its

 

 

discretion, the extent to which
Mr. Alpern has met each such individual goal and, correspondingly, the extent
to which the Company shall pay Mr. Alpern any or all of his year-end target
bonus.

Craig Cervo

     Mr. Cervo’s target bonus under the 2004 Bonus Plan is $66,500, comprised
of quarterly target bonuses of $16,625 each quarter payable upon the
achievement of quarterly goals.

     Quarterly Goals

     Mr. Cervo’s quarterly goals are based on the Company achieving targets
established by the Compensation Committee for each quarter for revenue (upon
which 34% of his quarterly target bonus is based), earnings (upon which 33% of
his quarterly target bonus is based) and cash (upon which 33% of his quarterly
target bonus is based). The Company will pay that portion of the quarterly
target bonus tied to revenue if the Company attained over 80% of the quarterly
revenue target, with (i) 5% payable for each percentage point over 80%
achievement of the quarterly revenue target (for example, 87% achievement
equals 35% payable), (ii) 100% payable if the quarterly revenue target was 100%
achieved, and (iii) up to 125% payable if the quarterly revenue target was up
to 125% achieved (for each percentage point over 100%, the bonus payable will
increase by 1%). The Company will pay that portion of the quarterly target
bonus tied to earnings if the Company attained at least 80% of the quarterly
earnings target, with (i) 25% payable if the quarterly earnings target was 80%
achieved, (ii) 50% payable if the quarterly earnings target was 90% achieved,
(iii) 100% payable if the quarterly earnings target was 100% achieved, and (iv)
up to 150% payable if the quarterly earnings target was up to 120% achieved
(for each percentage point over 100%, the bonus payable will increase by 2.5%).
The Company will pay that portion of the quarterly target bonus tied to cash
if the Company attained at least 90% of the quarterly cash target, with (i) 90%
payable if the quarterly cash target was 90% achieved, and an additional 1%
payable for each percentage point of achievement above 90% (for example, 95%
achievement equals 95% payable), (ii) 100% payable if the quarterly cash target
was 100% achieved, and (iii) up to 110% payable if the quarterly cash target
was up to 120% achieved (for each percentage point over 100%, the bonus payable
will increase by 0.5%).

     Starting in the fourth quarter of 2004, the Company will pay that portion
of the quarterly target bonus tied to quarterly revenue targets if the Company
attained at least 80% of the quarterly revenue target, with (i) 25% payable if
the quarterly revenue target was 80% achieved, (ii) 50% payable if the
quarterly revenue target was 90% achieved, (iii) 100% payable if the quarterly
earnings target was achieved at 100% or more. The Company will pay that
portion of the quarterly target bonus tied to earnings if the Company attained
at least 80% of the quarterly earnings target, with (i) 25% payable if the
quarterly earnings target was 80% achieved, (ii) 50% payable if the quarterly
earnings target was 90% achieved, (iii) 100% payable if the quarterly earnings
target was achieved 100% or more. The Company will pay that portion of the
quarterly target bonus tied to cash if the Company attained 100% or more of the
quarterly target.

Michael Morrison

 

 

     Mr. Morrison’s target bonus under the 2004 Bonus Plan for the third and
fourth quarters of 2004 is $82,500 (Mr. Morrison joined the Company in the
second quarter of 2004), comprised of quarterly target bonuses of $41,250 each
quarter payable upon the achievement of quarterly goals.

     Quarterly Goals

     Mr. Morrison’s quarterly goals are based on the Company achieving targets
established by the Compensation Committee for each quarter for license revenue
(upon which 30% of his quarterly target bonus is based), revenue (upon which
30% of his quarterly target bonus is based), earnings (upon which 20% of his
quarterly target bonus is based) and cash (upon which 20% of his quarterly
target bonus is based). The Company will pay that portion of the quarterly
target bonus tied to license revenue if the Company attained at least 80% of
the quarterly license revenue target, with (i) 20% payable if the quarterly
license revenue target was 80% achieved and an additional 4% payable for each
percentage point over 80% achievement of the quarterly license revenue target
(for example, 87% achievement equals 48% payable), and (ii) 100% payable if the
quarterly license revenue target was 100% achieved, an additional 1.25% for
each percentage point over 100% achievement (up to 105% achievement), and an
additional 1.5% for each percentage point over 106% achievement. There is no
cap on that part of Mr. Morrison’s quarterly target bonus based on license
revenue. The Company will pay that portion of the quarterly target bonus tied
to revenue if the Company attained over 80% of the quarterly revenue target,
with (i) 5% payable for each percentage point over 80% achievement of the
quarterly revenue target (for example, 87% achievement equals 35% payable),
(ii) 100% payable if the quarterly revenue target was 100% achieved, and (iii)
up to 125% payable if the quarterly revenue target was up to 125% achieved (for
each percentage point over 100%, the bonus payable will increase by 1%). The
Company will pay that portion of the quarterly target bonus tied to earnings if
the Company attained at least 80% of the quarterly earnings target, with (i)
25% payable if the quarterly earnings target was 80% achieved, (ii) 50% payable
if the quarterly earnings target was 90% achieved, and (ii) 100% payable if the
quarterly earnings target was achieved 100% or more. The Company will pay that
portion of the quarterly target bonus tied to cash if the Company attained 100%
or more of the quarterly target.

     Starting in the fourth quarter of 2004, the Company will pay that portion
of the quarterly target bonus tied to quarterly revenue targets if the Company
attained at least 80% of the quarterly revenue target, with (i) 25% payable if
the quarterly revenue target was 80% achieved, (ii) 50% payable if the
quarterly revenue target was 90% achieved, and (iii) 100% payable if the
quarterly earnings target was achieved 100% or more.exv10w25

 

Exhibit 10.25

APPLIX, INC.

STOCK OPTION AGREEMENT GRANTED UNDER THE 2003 DIRECTOR EQUITY PLAN

1. Grant of Option. Applix, Inc., a Massachusetts corporation (the “Company”),
hereby grants to «Name» (the “Optionee”), as of «Date_of_Grant» (the “Grant
Date”), an option, pursuant to the Company’s 2003 Director Equity Plan (the
“Plan”), to purchase an aggregate of «Option_Grant» shares of Common Stock
(“Common Stock”) of the Company at a $«Strike_Price» per share, purchasable as
set forth in, and subject to the terms and conditions of, this option and the
Plan.

2. Non-Statutory Stock Option. This option is not intended to qualify as an
incentive stock option under Section 422 of the Internal Revenue Code of 1986,
as amended (the “Code”).

3. Exercise of Option and Provisions for Termination.

     (a) Exercise Period.

          (i) General. These options shall become exercisable «Exercise» provided
that the optionee continues to serve as a director on such date.

          (ii) Acceleration Upon Change in Control. Notwithstanding the foregoing,
this option shall immediately become exercisable in full in the event a Change
in Control (as defined in Section 10 of the Plan) of the Company occurs.

          (iii) Termination. This option shall terminate, and may no longer be
exercised, on the earlier of the (i) the date seven years after the Grant Date
or (ii) the date 90 days after the Optionee ceases to serve as a director of
the Company for any reason, whether by death, resignation, removal or
otherwise.

     (b) Exercise Procedure. Subject to the conditions set forth in this
Agreement, this option shall be exercised by the Optionee’s delivery of written
notice of exercise to the Treasurer of the Company specifying the number of
shares to be purchased and the purchase price to be paid therefor and
accompanied by payment in full in accordance with Section 4. Such exercise
shall be effective upon receipt by the Treasurer of the Company of such written
notice together with the required payment. The Optionee may purchase fewer
than the total number of shares covered hereby, provided that no partial
exercise of this option may be for any fractional share or for fewer than 500
whole shares.

     (c) Exercise by Representative Following Death of Director. The Optionee,
by written notice to the Company, may designate one or more persons (and from
time to time change such designation), including his or her legal
representative, who, by reason of the Optionee’s death, shall acquire the right
to exercise all or a portion of this option. If the person or persons so

 

 

designated wish to exercise any portion of this option, they must do so within
the term of this option as provided herein. Any exercise by a representative
shall be subject to the provisions of the Plan.

4. Payment of Purchase Price. Payment of the purchase price for shares
purchased upon exercise of this option shall be made by delivery to the Company
of (i) payment by certified or bank check of the full consideration for the
shares as to which it is exercised or (ii) an irrevocable undertaking, in form
and substance satisfactory to the Company, by a broker to deliver promptly to
the Company sufficient funds to pay the exercise price or (iii) delivery of
irrevocable instructions, in form and substance satisfactory to the Company, to
a broker to deliver promptly to the Company cash or a check sufficient to pay
the exercise price.

5. Delivery of Shares; Compliance With Securities Law, Etc.

     (a) General. The Company shall, upon payment of the option price for
the number of shares purchased and paid for, make prompt delivery of such
shares to the Optionee, provided that if any law or regulation requires the
Company to take any action with respect to such shares before the issuance
thereof, then the date of delivery of such shares shall be extended for the
period necessary to complete such action.

     (b) Listing, Qualification, Etc. This option shall be subject to the
requirement that if, at any time, counsel to the Company shall determine that
the listing, registration or qualification of the shares subject hereto upon
any securities exchange or under any state or federal law, or the consent or
approval of any governmental or regulatory body, or that the disclosure of
non-public information or the satisfaction of any other condition is necessary
as a condition of, or in connection with, the issuance or purchase of shares
hereunder, this option may not be exercised, in whole or in part, unless such
listing, registration, qualification, consent or approval, disclosure, or
satisfaction of such other condition shall have been effected or obtained on
terms acceptable to the Board of Directors.

6. Non-transferability of Option. This option is personal and may not be
transferred other than by will or the laws of descent and distribution or
pursuant to a qualified domestic relations order (as defined in the Code), and
this option shall be exercised during the lifetime of the Optionee only by the
Optionee or by his or her legal representative. No rights granted hereunder
may be transferred, assigned, pledged or hypothecated in any way (whether by
operation of law or otherwise) nor shall any such rights be subject to
execution, attachment or similar process. Upon any attempt to transfer,
assign, pledge, hypothecate or otherwise dispose of this option or of such
rights contrary to the provisions hereof, or upon the levy of any attachment or
similar process upon this option or such rights, this option and such rights
shall, at the election of the Company, become null and void.

7. Limitation of Rights.

     (a) No Right to Continue as a Director. Neither the Plan, nor the
granting of this option nor any other action taken pursuant to the Plan, shall
constitute or be evidence of any agreement

 

 

or understanding, express or implied, that the Company will retain the Optionee
as a director for any period of time.

     (b) No Stockholders’ Rights for Options. The Optionee shall have no
rights as a stockholder with respect to the shares of Common Stock covered by
this option until the date of the issuance to him or her of a stock certificate
therefor, and no adjustment will be made for dividends or other rights (except
as provided in Section 9 of the Plan) for which the record date is prior to the
date such certificate is issued. Notwithstanding the foregoing, in the event
(i) the Company effects a split of the Common Stock by means of a stock
dividend, and the distribution date (i.e., the date on which the closing market
price of the Common Stock on a stock exchange or trading system is adjusted to
reflect the split) is subsequent to the record date for such stock dividend,
and (ii) the Optionee exercises this option between the close of business on
such record date and the close of business on such distribution date, then the
Optionee shall be entitled to receive the stock dividend with respect to the
shares of Common Stock acquired upon such option exercise, notwithstanding the
fact that such shares were not outstanding as of the close of business on such
record date.

8. Adjustment Provisions for Mergers, Recapitalizations and Related
Transactions. If, through or as a result of any merger, consolidation,
reorganization, recapitalization, reclassification, stock dividend, stock
split, reverse stock split or other similar transaction, (i) the outstanding
shares of Common Stock are exchanged for a different number or kind of
securities of the Company or of another entity, or (ii) additional shares or
new or different shares or other securities of the Company or of another entity
are distributed with respect to such shares of Common Stock, the Optionee
shall, with respect to any unexercised portion of this option, be entitled to
the rights and benefits, and be subject to the limitations, set forth in
Section 9 of the Plan.

9. Withholding Taxes. The Company’s obligation to deliver shares of Common
Stock upon the exercise of this option shall be subject to the Optionee’s
satisfaction of all applicable federal, state and local tax withholding
requirements.

10. Miscellaneous.

     (a) Except as provided herein, this option may not be amended or otherwise
modified unless evidenced in writing and signed by the Company and the
Optionee.

     (b) All notices under this option shall be mailed or delivered by hand to
the Company, at its headquarters, or to the Optionee, at the address set forth
below, as appropriate, or at such other address as may be designated in writing
by either of the parties to one another.

     (c) This option and all determinations made and actions taken pursuant
hereto shall be governed by the laws of the Commonwealth of Massachusetts.

 

 

APPLIX, INC.

Date Vesting Starts: «Date_of_Grant»

	 	 	 	 	 
	By:

	 	 	 	 
	

	 	
 	 	 
	

	 	David Mahoney	 	 
	

	 	President and CEO	 	 

 

 

OPTIONEE’S ACCEPTANCE

     The undersigned hereby accepts the foregoing option and agrees to the
terms and conditions thereof. The undersigned hereby acknowledges receipt of a
copy of the Company’s 2003 Director Equity Plan.

	 	 	 
	
 
	 	 
	(signature)

	 	 
	 
	 	 
	
 
	 	 
	(address)

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