Document:

Management Bonus Plan

 Exhibit 10.1 
  
 INTERVIDEO, INC. 
  
 MANAGEMENT BONUS PLAN 
  
 (Adopted on May 2, 2005) 
  

 -i- 

 TABLE OF CONTENTS 
  

							
	 	 	 	 	 	  	Page

	 1.
	 	BACKGROUND, PURPOSE AND DURATION	  	1
				
	 	 	 1.1
	 	Effective Date	  	1
	 	 	 1.2
	 	Purpose of the Plan	  	1
			
	 2.
	 	DEFINITIONS	  	1
				
	 	 	 2.1
	 	“Actual Award”	  	1
	 	 	 2.2
	 	“Affiliate”	  	1
	 	 	 2.3
	 	“Board”	  	1
	 	 	 2.4
	 	“Committee”	  	1
	 	 	 2.5
	 	“Company”	  	1
	 	 	 2.6
	 	“Disability”	  	1
	 	 	 2.7
	 	“Employee”	  	1
	 	 	 2.8
	 	“Participant”	  	1
	 	 	 2.9
	 	“Performance Period”	  	1
	 	 	 2.10
	 	“Plan”	  	2
	 	 	 2.11
	 	“Target Award”	  	2
	 	 	 2.12
	 	“Termination of Service”	  	2
			
	 3.
	 	SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS	  	2
				
	 	 	 3.1
	 	Selection of Participants	  	2
	 	 	 3.2
	 	Determination of Target Awards	  	2
	 	 	 3.3
	 	Discretion to Modify Awards	  	2
	 	 	 3.4
	 	Discretion to Determine Criteria	  	2
			
	 4.
	 	PAYMENT OF AWARDS	  	2
				
	 	 	 4.1
	 	Right to Receive Payment	  	2
	 	 	 4.2
	 	Timing of Payment	  	3
	 	 	 4.3
	 	Form of Payment	  	3
	 	 	 4.4
	 	Payment in the Event of Death or Disability	  	3
			
	 5.
	 	ADMINISTRATION	  	3
				
	 	 	 5.1
	 	Committee is the Administrator	  	3
	 	 	 5.2
	 	Committee Authority	  	3
	 	 	 5.3
	 	Decisions Binding	  	3
	 	 	 5.4
	 	Delegation by the Committee	  	3
			
	 6.
	 	GENERAL PROVISIONS	  	3
				
	 	 	 6.1
	 	Tax Withholding	  	3
	 	 	 6.2
	 	No Effect on Employment or Service	  	4
	 	 	 6.3
	 	Participation	  	4

 TABLE OF CONTENTS 
 (Continued) 

							
	 	 	 	 	 	  	Page

	 	 	 6.4
	 	Successors	  	4
	 	 	 6.5
	 	Beneficiary Designations	  	4
	 	 	 6.6
	 	Nontransferability of Awards	  	4
			
	 7.
	 	AMENDMENT, TERMINATION AND DURATION	  	4
				
	 	 	 7.1
	 	Amendment, Suspension or Termination	  	4
	 	 	 7.2
	 	Duration of the Plan	  	4
			
	 8.
	 	LEGAL CONSTRUCTION	  	5
				
	 	 	 8.1
	 	Gender and Number	  	5
	 	 	 8.2
	 	Severability	  	5
	 	 	 8.3
	 	Requirements of Law	  	5
	 	 	 8.4
	 	Governing Law	  	5
	 	 	 8.5  
	 	Captions	  	5

  

 -ii- 

 INTERVIDEO, INC. 
  
 MANAGEMENT BONUS PLAN 
  
 1. BACKGROUND, PURPOSE AND DURATION 
  
 1.1 Effective Date. The Plan was adopted effective as of May 2, 2005. 
  
 1.2 Purpose of the Plan. The Plan is intended to increase shareholder value and the success of the Company by
motivating selected employees (a) to perform to the best of their abilities and (b) to achieve the Company’s objectives. 
  
 2. DEFINITIONS 
  
 The following words and phrases shall have the following meanings unless a different meaning is plainly required by the context: 
  
 2.1 “Actual Award” means as to any Performance Period, the actual award (if any) payable to a Participant
for the Performance Period, subject to the Committee’s authority under Section 3.3 to modify the award. 
  
 2.2 “Affiliate” means any corporation or other entity (including, but not limited to, partnerships and joint ventures) controlled by the
Company. 
  
 2.3 “Board” means the Board of
Directors of the Company. 
  
 2.4 “Committee”
means the committee appointed by the Board (pursuant to Section 5.1) to administer the Plan. 
  
 2.5 “Company” means InterVideo, Inc., a Delaware corporation, or any successor thereto. 
  
 2.6 “Disability” means a permanent and total disability determined in accordance with uniform and nondiscriminatory standards adopted by
the Committee from time to time. 
  
 2.7
“Employee” means any employee of the Company or of an Affiliate, whether such individual is so employed at the time the Plan is adopted or becomes so employed subsequent to the adoption of the Plan. 
  
 2.8 “Participant” means as to any Performance Period, an
Employee who has been selected by the Committee for participation in the Plan for that Performance Period. 
  
 2.9 “Performance Period” means the period of time for the measurement of the performance criteria that must be met to receive an Actual
Award, as determined by the Committee in its sole discretion. 

 2.10 “Plan” means the InterVideo, Inc. Management Bonus Plan, as set forth in this
instrument and as hereafter amended from time to time. 
  
 2.11
“Target Award” means the target award payable under the Plan to a Participant for the Performance Period, as determined by the Committee in accordance with Section 3.2. 
  
 2.12 “Termination of Service” means a cessation of the employee-employer relationship between an Employee
and the Company or an Affiliate for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, Disability, retirement, or the disaffiliation of an Affiliate, but excluding any such termination where there is
a simultaneous reemployment by the Company or an Affiliate. 
  
 3. SELECTION OF
PARTICIPANTS AND DETERMINATION OF AWARDS 
  
 3.1 Selection of
Participants. The Committee, in its sole discretion, shall select the Employees who shall be Participants for any Performance Period. Participation in the Plan is in the sole discretion of the Committee, on a Performance Period by Performance
Period basis. Accordingly, an Employee who is a Participant for a given Performance Period in no way is guaranteed or assured of being selected for participation in any subsequent Performance Period or Periods. 
  
 3.2 Determination of Target Awards. The Committee, in its sole
discretion, shall establish a Target Award for each Participant. 
  
 3.3 Discretion to Modify Awards. Notwithstanding any contrary provision of the Plan, the Committee may, in its sole discretion and at any time, increase, reduce or eliminate a Participant’s Actual Award. The Committee may
determine the amount of any reduction on the basis of such factors as it deems relevant, and shall not be required to establish any allocation or weighting with respect to the factors it considers. 
  
 3.4 Discretion to Determine Criteria. Notwithstanding any contrary
provision of the Plan, the Committee shall, in its sole discretion, determine the performance requirements applicable to any Target Award. The requirements may be on the basis of any factors the Committee determines relevant, and may be on an
individual, divisional, business unit or Company-wide basis. Failure to meet the requirements will result in a failure to earn the Target Award, except as provided in Section 3.3. 
  
 4. PAYMENT OF AWARDS 
  
 4.1 Right to Receive Payment. Each Actual Award shall be paid solely from the general assets of the Company. Nothing in this Plan shall be
construed to create a trust or to establish or evidence any Participant’s claim of any right other than as an unsecured general creditor with respect to any payment to which he or she may be entitled. 
  

 -2- 

 4.2 Timing of Payment. Payment of each Actual Award shall be made as soon as administratively
practicable as determined by the Committee after the end of the Performance Period during which the Actual Award was earned. Unless otherwise determined by the Committee, a Participant must be employed by the Company or any Affiliate on the date of
the payment of the Actual Award to receive a payment under the Plan. 
  
 4.3 Form of Payment. Each Actual Award shall be paid in cash (or its equivalent) in a single lump sum. 
  
 4.4 Payment in the Event of Death or Disability. If a Participant dies or becomes Disabled prior to the payment of an Actual Award earned by him or
her prior to death or Disability for a prior Performance Period, the Actual Award shall be paid to his or her estate or to the Participant, as the case may be, subject to the Committee’s discretion to reduce or eliminate any Actual Award
otherwise payable. 
  
 5. ADMINISTRATION 
  
 5.1 Committee is the Administrator. The Plan shall be administered by
the Committee. The Committee shall consist of not less than two (2) members of the Board. The members of the Committee shall be appointed from time to time by, and serve at the pleasure of, the Board. 
  
 5.2 Committee Authority. It shall be the duty of the Committee to
administer the Plan in accordance with the Plan’s provisions. The Committee shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power to (a)
determine which Employees shall be granted awards, (b) prescribe the terms and conditions of awards, (c) interpret the Plan and the awards, (d) adopt such procedures and subplans as are necessary or appropriate to permit participation in the Plan by
Employees who are foreign nationals or employed outside of the United States, (e) adopt rules for the administration, interpretation and application of the Plan as are consistent therewith, and (f) interpret, amend or revoke any such rules.

  
 5.3 Decisions Binding. All determinations and decisions
made by the Committee, the Board, and any delegate of the Committee pursuant to the provisions of the Plan shall be final, conclusive, and binding on all persons, and shall be given the maximum deference permitted by law. 
  
 5.4 Delegation by the Committee. The Committee, in its sole discretion
and on such terms and conditions as it may provide, may delegate all or part of its authority and powers under the Plan to one or more directors and/or officers of the Company. 
  
 6. GENERAL PROVISIONS 
  
 6.1 Tax Withholding. The Company shall withhold all applicable taxes from any Actual Award, including any federal, state and local taxes
(including, but not limited to, the Participant’s FICA and SDI obligations). 
  

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 6.2 No Effect on Employment or Service. Nothing in the Plan shall interfere with or limit in any
way the right of the Company to terminate any Participant’s employment or service at any time, with or without cause. For purposes of the Plan, transfer of employment of a Participant between the Company and any one of its Affiliates (or
between Affiliates) shall not be deemed a Termination of Service. Employment with the Company and its Affiliates is on an at-will basis only. The Company expressly reserves the right, which may be exercised at any time and without regard to when
during a Performance Period such exercise occurs, to terminate any individual’s employment with or without cause, and to treat him or her without regard to the effect that such treatment might have upon him or her as a Participant. 

 
 6.3 Participation. No Employee shall have the right to be selected
to receive an award under this Plan, or, having been so selected, to be selected to receive a future award. 
  
 6.4 Successors. All obligations of the Company under the Plan, with respect to awards granted hereunder, shall be binding on any successor to the
Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business or assets of the Company. 
  
 6.5 Beneficiary Designations. If permitted by the Committee, a
Participant under the Plan may name a beneficiary or beneficiaries to whom any vested but unpaid award shall be paid in the event of the Participant’s death. Each such designation shall revoke all prior designations by the Participant and shall
be effective only if given in a form and manner acceptable to the Committee. In the absence of any such designation, any vested benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate. 
  
 6.6 Nontransferability of Awards. No award granted under the Plan may
be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, by the laws of descent and distribution, or to the limited extent provided in Section 6.5. All rights with respect to an award granted to a
Participant shall be available during his or her lifetime only to the Participant. 
  
 7. AMENDMENT, TERMINATION AND DURATION 
  
 7.1
Amendment, Suspension or Termination. The Board, in its sole discretion, may amend or terminate the Plan, or any part thereof, at any time and for any reason. The amendment, suspension or termination of the Plan shall not, without the consent
of the Participant, alter or impair any rights or obligations under any Actual Award theretofore earned by such Participant. No award may be granted during any period of suspension or after termination of the Plan. 
  
 7.2 Duration of the Plan. The Plan shall commence on the date
specified herein, and subject to Section 7.1 (regarding the Board’s right to amend or terminate the Plan), shall remain in effect thereafter. 
  

 -4- 

 8. LEGAL CONSTRUCTION 
  
 8.1 Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural
shall include the singular and the singular shall include the plural. 
  
 8.2 Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as
if the illegal or invalid provision had not been included. 
  
 8.3
Requirements of Law. The granting of awards under the Plan shall be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
  
 8.4 Governing Law. The Plan and all awards shall be construed in
accordance with and governed by the laws of the State of California, but without regard to its conflict of law provisions. 
  
 8.5 Captions. Captions are provided herein for convenience only, and shall not serve as a basis for interpretation or construction of the Plan.

  

 -5-Marc Andrews Terms And Conditions Regarding Relocation

 Exhibit 10.1 
  
 May 4, 2005 
  
 Marc Andrews 
 4 Brooklands House, 
 Abbeywood 
 Sunningdale 
 SL5 9SW 
  
 Dear Marc, 
  
 This letter sets forth and defines the terms and
conditions of your promotion, effective February 1, 2004 (the “Promotion Date”) and your subsequent employment with NetIQ Corporation (the “Company”) and NetIQ Limited (“NetIQ UK”), a wholly owned subsidiary of the
Company. 
  
 POSITION RESPONSIBILITIES 
  
 This acknowledges that as of the Promotion Effective Date, you were promoted to the position
of Senior Vice President and General Manager for Security and Systems Management, reporting to the Company’s Chief Executive Officer, Chuck Boesenberg. During the time after the Promotion Effective Date and prior to the Transfer Effective Date,
as defined below, you were also responsible for the transition of EMEA sales and operations to a new Vice President and General Manager, EMEA, and were expected to spend substantial time in the UK facilitating that transition. 
  
 SALARY AND PREMIUMS 
  
 1. Base Salary 
  
 Commencing on the Promotion Date and continuing through June 30, 2004, your base salary (“Base Salary”), car allowance and
commission remained the same as prior to your promotion. Effective July 1, 2004, your annual Base Salary became US$268,000 (with an annual target incentive bonus of 50% of your Base Salary). Effective November 1, 2004, in connection with the
Company’s annual focal review process, your annual Base Salary became US$280,000 (with an annual target incentive bonus of 50% of your Base Salary). You currently are paid twice monthly on the 15th and last day of each month, in accordance with
our US payroll cycle. 

 2. Real Estate Differential 
  
 This acknowledges that US$67,000, less applicable tax withholding, has been paid to you by the Company to compensate you for the real estate
differential between the UK and US. 
  
 3. Relocation Subsistence

  
 In lieu of providing reimbursement for reasonable and actual incidental
expenses over and above the main relocation expenses detailed in Section 4 below, the Company has provided you a lump sum payment of US$22,333, less applicable tax withholding. 
  
 4. Relocation Expenses 
  
 This acknowledges the Company’s agreement to reimburse you for the following reasonable relocation expenses: (a) packing up your home in the United Kingdom, (b) the
removal and shipping of household goods, (c) six months of storage of household goods, as necessary, and (d) one way direct air fares for you and your family from the UK to Houston. These expenses are reimbursable up to eighteen months after your
Promotion Effective Date. To date, only the one way direct air fares for you and your family have been reimbursed. 
  
 5. Accommodation 
  
 This acknowledges that the Company has provided you a furnished and serviced apartment (the “Apartment”) through February 28, 2005. Commencing on March 15, 2005, the Company will provide you with a monthly
housing allowance of $5,000 per month for a period of 12 months. Commencing March 31, 2005, the monthly allowance will be paid at the end of the month. The last monthly housing allowance will be paid on January 31, 2006. While you occupied the
Apartment, the Company paid utilities (excluding telephone), maintenance, government property tax and other related fees.  
  
 6. House Hunting Trips 
  
 This acknowledges that between January and July 2004, the Company paid for a house hunting trip for your family, including round trip business class direct air fares for
your family from the UK to Houston. All other costs were your responsibility. 
  
 7. Vehicle 
  
 The Company has reimbursed you for local
transportation costs (such as car rental) incurred by you in Houston since the Transfer Effective Date and through the date hereof. Prior to the Transfer Effective Date, you submitted expense reports for local transportation costs incurred in
Houston. You will be provided with a rental car through March 1, 2005, and thereafter will receive a car allowance of $1,000 per month for a period of 24 months. This allowance is intended to cover all vehicle costs, including insurance, tax,
maintenance and other incidental expenses. 
  
 8. School Fees 

 
 The Company is providing payment of Houston school fees for your two children for the
2004-2005 and the 2005-2006 school years. 
  
 TAX POLICY 

 
 Your accommodation, subsistence and schooling costs, to which you are entitled pursuant
to Sections 3, 5 and 8, are intended to be tax free to you. In the event any compensation by or benefit from the Company to you or for your benefit, provided pursuant to Sections 3, 5 or 8 of this letter agreement, becomes subject to U.S. 

 
federal, state or local tax, you will be paid a lump-sum payment (a “Gross-Up Payment”) in an amount determined by the Company’s outside
auditors such that after payment by you of all taxes (including any interest or penalties imposed with respect to such taxes), imposed upon the Gross-Up Payment, you retain an amount of the Gross-Up Payment equal to the amount of the U.S. federal,
state or local taxes to which you have become subject as a result of the benefits you are receiving under Sections 3, 5 and 8 of this letter agreement. 
  
 As of July 20, 2004 (the “Transfer Effective Date”), you became a local hire and became taxed as a US employee. As of and after October 1, 2004, your
compensation was paid through the Company’s payroll. Prior to October 1, 2004, your compensation was paid through the NetIQ UK payroll. Although you will not receive any tax equalization generally in connection with your transfer, the Company
agrees to make a one time payment to you in the amount of $10,000 on or before August 15, 2005 to assist you in transition to the U.S. tax system. The Company will engage outside service providers to provide assistance to you in preparing your tax
returns, to the extent that they are impacted by this assignment. Ernst & Young are the Company’s current outsider providers. 
  
 IMMIGRATION 
  
 The Company will assist you with maintaining the necessary visa and work permits as required for living and working in the US for the duration of your employment within
the US and, as well, will provide assistance to you obtaining a green card (including payment of reasonable legal and filing fees). 
  
 PERSONNEL POLICIES & BENEFITS 
  
 1. Home Leave 
  
 You and your family are eligible for two home leaves per year while you are employed in the US. NetIQ will pay for two round trip economy class tickets for you and your family to the UK. Hotels, meals, taxis and car
rentals will not be covered. (Home leave cannot be exchanged for any other location or cash allowance.) Holiday days must be used during the home leave. 
  
 2. Other Benefits 
  
 You and your family will receive US health benefits. The Company will contribute 8% of your base salary to a pension scheme of your choice to an allowable cap of £11,880, or any other applicable cap.

  
 After the Transfer Effective Date, you will be covered by the US vacation
plan. While working at the Company’s Houston facilities, you will observe the work schedule and holidays in accordance with the local laws and customs. 
  
 REPATRIATION 
  
 If your employment is terminated by the Company for any reason other than your gross misconduct, the Company will pay a repatriation allowance equal to one month of your
Base Salary at the time of termination to assist you in your move back to the UK and will additionally pay for the packing, removals and shipping of any personal belongings to a reasonable and customary level. In addition, the Company will provide
one-way, economy class airfare for you and your family to travel back to the UK. 
  
 TERMINATION WHILE ON ASSIGNMENT 
  
 In the event of
your involuntary termination while on this assignment for any reason other than gross misconduct, the Company will honor the repatriation agreement described above. In the event of your voluntary termination or resignation, the Company will not pay
any repatriation costs and will discontinue any housing, car or other allowances that are being paid at that time. 

 EMERGENCIES 
  
 The Company will provide economy class, round-trip travel to you and your family to the UK in the event of serious illness or death of a
member of your immediate family. You are eligible for a paid personal emergency leave up to a maximum of five days but will not be reimbursed for temporary living expenses during the leave. 
  
 TERMS AND CONDITIONS OF EMPLOYMENT 
  
 As of the Transfer Effective Date, you are a US local hire of the Company and your terms and
conditions of employment are subject to the laws of the State of Texas. Prior to the Transfer Effective Date, you were employed by NetIQ Limited and your terms and conditions of employment were governed by English law. 
  
 Marc, I hope you will find this assignment to be both challenging and rewarding. Should you
have any questions, please feel free to contact me. If you are in agreement with this assignment letter, please sign one copy and return it to me. 
  

			
	Sincerely,	 	 
		
	  

	 	  

	Chuck Boesenberg	 	Date
	Chief Executive Officer	 	 
	NetIQ Corporation	 	 
		
	Agreed:	 	 
		
	  

	 	  

	Marc Andrews	 	Date

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