Document:

exv10w53

 

Exhibit 10.53

Summary Description of LSI Logic Corporation 2006 Incentive Plan

     On February 9, 2006, the Compensation Committee of the Board of Directors of LSI Logic
Corporation (the “Company”) adopted the 2006 Incentive Plan (the “2006 Incentive Plan”) for the
Company. The bonus pool under the 2006 Incentive Plan is not funded until the Company meets a
predetermined threshold operating income target. Thereafter, the bonus pool increases as operating
income increases. The maximum bonus pool will not exceed $25 million. The Company’s named
executive officers, other than the CEO, as well as other employees of the Company, are eligible to
participate in the 2006 Incentive Plan. The target bonus for named executive officers, other than
the CEO, is between 45% and 55% of the named executive officer’s base compensation. Actual bonus
payments to named executive officers maybe greater than or less than the stated target amount.exv10w54

 

Exhibit 10.54

LSI LOGIC CORPORATION

INCENTIVE PLAN

as amended and restated March 10, 2004

1.  Purposes of the Plan.

     The purpose of the LSI Logic Corporation Incentive Plan, as amended and restated, is to
motivate and reward Participants by making a significant portion of their cash compensation
directly dependent upon achieving performance goals that further the Company’s business and
strategic objectives. It is the Company’s intention that the compensation paid hereunder will
qualify as “performance-based” within the meaning of Section 162(m) of the Internal Revenue Code of
1986, as amended, and will thereby be fully deductible by the Company.

2.  Definitions.

     (a) “AFFILIATE” means any corporation or other entity (including, but not limited to,
partnerships and joint ventures) controlled by the Company.

     (b) “ACTUAL AWARD” means, as to any Plan Year, the actual award, if any, payable to a
Participant, as determined pursuant to Section 6 for a Plan Year. Each Actual Award is determined
by a Payout Formula for a Plan Year, subject to the Committee’s authority under Section 8(d) to
reduce the Award otherwise payable.

     (c) “BOARD” means the Board of Directors of the Company.

     (d) “CEO” means the chief executive officer of the Company.

     (e) “COMMITTEE” means the Compensation Committee of the Board, or a sub-committee of the
Compensation Committee, which shall consist solely of two or more members of the Board who qualify
as “outside directors” within the meaning of Section 162(m).

     (f) “COMPANY” means LSI Logic Corporation.

     (g) “DETERMINATION DATE” means the latest possible date that will not jeopardize a Target
Award or an Actual Award’s qualification as performance-based compensation under Section 162(m).

     (h) “EARNINGS PER SHARE” means as to any Plan Year, the Company’s Profit After Tax, divided
by a weighted average number of common shares outstanding and dilutive common equivalent shares
deemed outstanding, determined in accordance with generally accepted accounting principles.

     (i) “EMPLOYEE” means any employee of the Company or of an Affiliate, whether such employee is
so employed at the time the Plan is adopted or becomes so employed subsequent to the adoption of
the Plan.

     (j) “MAXIMUM AWARD” means $3,000,000 as to any Participant for any given Plan Year.

     (k) “OPERATING INCOME” means as to any Plan Year, the Company’s net or gross operating
income, stated as determined by the Committee in its sole discretion and determined in accordance
with generally accepted accounting principles.

     (l) “PARTICIPANT” means as to any Plan Year, an Employee who has been selected by the
Committee for a participation in the Plan for that Plan Year.

     (m) “PAYOUT FORMULA” means the formula or payout matrix established by the Committee pursuant
to Section 7 in order to determine the Actual Awards, if any, to Participants. The formula or
matrix may differ from Participant to Participant.

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     (n) “PERFORMANCE-BASED COMPENSATION” means compensation that is intended to qualify as
“performance-based compensation” within the meaning of Section 162(m).

     (o) “PERFORMANCE GOALS” means the goal(s) (or combined goal(s)) determined by the Committee
(in its discretion) to be applicable to a Participant for an Award for a Plan Year. As determined
by the Committee, the Performance Goals for any Award applicable to a Participant may provide for a
targeted level or levels of achievement using one or more of the following measures: (a) Earnings
Per Share, (b) Operating Income, (c) Return on Equity, (d) Revenue and (e) Total Shareholder
Return. Performance Goals may differ from Participant to Participant, Plan Year to Plan Year and
from award to award. Any criteria used may be measured, as applicable, (i) in absolute terms, (ii)
in relative terms (including, but not limited, passage of time and/or against another company or
companies), (iii) on a per-share basis, (iv) against the performance of the Company as a whole or a
segment of the Company and/or (v) on a pre-tax or after-tax basis. Prior to the Determination Date,
the Committee shall determine whether any element(s) shall be included in or excluded from the
calculation of any Performance Goal with respect to any Participants.

     (p) “PLAN” means this LSI Logic Corporation Incentive Plan, as amended and restated, formerly
titled “LSI Logic Corporation Chief Executive Officer Incentive Plan.”

     (q) “PLAN YEAR” means the Company’s fiscal year.

     (r) “PROFIT AFTER TAX” means as to any Plan Year, the Company’s income after taxes,
determined in accordance with generally accepted accounting principles.

     (s) “RETURN ON EQUITY” means as to any Plan Year, the percentage equal to the Company’s
Profit After Tax divided by average shareholder’s equity, determined in accordance with generally
accepted accounting principles.

     (t) “REVENUE” means as to any Plan Year, the Company’s net revenues generated from third
parties, determined in accordance with generally accepted accounting principles.

     (u) “SECTION 162(M)” means Section 162(m) of the Internal Revenue Code of 1986, as amended,
or any successor to Section 162(m), as that Section may be interpreted from time to time by the
Internal Revenue Service, whether by regulation, notice or otherwise.

     (v) “SHARES” means shares of the Company’s common stock.

     (w) “TARGET AWARD” means the target award payable under the Plan to a Participant for the
Plan Year, expressed as a percentage of his or her base salary or a specific dollar amount, as
determined by the Committee in accordance with Section 6.

     (x) “TOTAL SHAREHOLDER RETURN” means as to any Plan Year, the total return (change in share
price plus reinvestment of any dividends) of a Share.

3.  Administration of the Plan.

     (a) The Committee shall be responsible for the general administration and interpretation of
the Plan and for carrying out its provisions. The Committee may delegate specific administrative
tasks to Company employees or others as appropriate for proper administration of the Plan. Subject
to the limitations on Committee discretion imposed under Section 162(m), the Committee shall have
such powers as may be necessary to discharge its duties hereunder, including, but not by way of
limitation, the following powers and duties, but subject to the terms of the Plan:

     (i) discretionary authority to construe and interpret the terms of the Plan, and to determine
eligibility, Awards and the amount, manner and time of payment of Awards hereunder;

     (ii) to prescribe forms and procedures for purposes of Plan participation and distribution of
Awards;

     (iii) to adopt rules, regulations and bylaws and to take such actions as it deems necessary
or desirable for the proper administration of the Plan; and

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     (iv) any rule or decision by the Committee that is not inconsistent with the provisions of
the Plan shall be conclusive and binding.

4.  Eligibility. The Company’s chief executive officer shall be eligible to participate in the Plan
for each Plan Year. The Committee may, in its discretion, select any other Employees to be
Participants for any given Plan Year. The Committee, in its sole discretion, also may designate as
Participants one or more individuals (by name or position) who are expected to become Employees
during a Plan Year. Participation in the Plan is in the sole discretion of the Committee, and on a
Plan Year by Plan Year basis. Accordingly, an Employee who is a Participant for a given Plan Year
in no way is guaranteed or assured of being selected for participation in any subsequent Plan Year.
The Committee’s designation of Participants for a given Plan Year shall be made on or before the
Determination Date.

5.  Performance Goals. For each Plan Year the Committee shall establish Performance Goals for each
Participant for the Plan Year. The Committee may request or may be provided market data to
substantiate the appropriateness of the Performance Goal. Such objectives shall be established in
writing on or before the Determination Date. Each Participant’s Actual Award shall become payable
based upon the extent to which the Company meets or exceeds such pre-established Performance Goal
objectives.

6.  Award Determination. For each Plan Year, the Committee, in its sole discretion, shall establish
a Target Award for each Participant. The Committee’s establishment of each Participant’s Target
Award shall be made in writing on or before the Determination Date. The Committee may request or
may be provided market data to substantiate the appropriateness of the Target Award. Subject to the
limitations set forth in Sections 8(d) and 11, the Actual Award for each Participant shall be
determined by applying the Payout Formula to the level of actual performance that has been
certified by the Committee in accordance with Section 8(a).

7.  Payout Formula Determination. On or prior to the Determination Date, the Committee, in its sole
discretion, shall establish a Payout Formula or Formulae for purposes of determining the Actual
Award (if any) payable to each Participant. The Committee’s establishment of the Payout Formula or
Formulae for any given Plan Year shall be made in writing on or before the Determination Date. Each
Payout Formula shall (a) be in writing, (b) be based on a comparison of actual performance to the
Performance Goals, (c) provide for the payment of a Participant’s Target Award if the Performance
Goals for the Plan Year are achieved, and (d) provide for an Actual Award greater than or less than
the Participant’s Target Award, depending upon the extent to which actual performance exceeds or
falls below the Performance Goals. Notwithstanding the preceding, in no event shall a Participant’s
Actual Award for any Plan Year exceed his or her Maximum Award.

8.  Award Payment.

     (a) Certification. The Committee shall certify in writing the extent to which the Performance
Goals applicable to each Participant for the Plan Year were achieved or exceeded prior to any
payments under this Plan.

     (b) Form of Distributions. The Company shall distribute all Awards to the Participants in
cash, less applicable withholding.

     (c) Timing of Distributions. Subject to Sections 8(d) and 11, the Company shall distribute
amounts payable to each Participant as soon as is practicable following the determination of the
Award for a Plan Year under Section 6 hereof.

     (d) Limitations. The Committee may not increase an Actual Award, but may, in its sole
discretion, eliminate or decrease an Actual Award payable to any Participant below that which
otherwise would be payable under the Payout Formula.

9.  Term of Plan. The Plan originally became effective in the Company’s 1997 Plan Year. The amended
and restated Plan shall first apply to the Company’s 2004 Plan Year, subject to ratification by an
affirmative vote of the holders of a majority of the Shares that are present in person or by proxy
and entitled to vote at the 2004 Annual Meeting of Stockholders of the Company. The Plan shall continue until terminated under
Section 10 of the Plan.

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10.  Amendment and Termination of the Plan. The Committee may amend, modify, suspend or terminate
the Plan, in whole or in part, at any time, including the adoption of amendments deemed necessary
or desirable to correct any defect or to supply omitted data or to reconcile any inconsistency in
the Plan or in any Award granted hereunder or to account for a change in the equity or
capitalization structure of the Company through merger, consolidation, reorganization,
recapitalization, spin-off, significant change in strategic direction or otherwise; provided,
however, that no amendment, alteration, suspension or discontinuation shall be made which would
impair any payments to any Participant made prior to such amendment, modification, suspension or
termination; provided further, however, that in no event may such an amendment or modification
result in an increase in the amount of compensation payable pursuant to such Award. To the extent
necessary or advisable under applicable law, including Section 162(m), Plan amendments shall be
subject to shareholder approval. At no time before the actual distribution of funds to any
Participant under the Plan shall any Participant accrue any vested interest or right whatsoever
under the Plan except as otherwise stated in this Plan.

11.  Termination of Employment.

     (a) In the event that a Participant’s employment with the Company terminates by reason of the
Participant’s retirement, total and permanent disability or death, the Committee may, in its
discretion, pay to the Participant or the Participant’s representative, as the case may be, all or
a portion of the Award for the Plan Year in which such termination occurs.

     (b) No Award shall be paid to a Participant with respect to a Plan Year if the Participant
terminates employment during that Plan Year except as provided in Section 11(a).

12.  Withholding. Distributions pursuant to this Plan shall be subject to all applicable federal
and state tax and withholding requirements.

13.  Employment. This Plan does not constitute a contract of employment or compensation or impose
on either the Participant or the Company any obligation to retain the Participant as an employee.
This Plan does not change the status of the Participant as an employee at-will, the policies of the
Company regarding termination of employment, nor guarantee further continuing participation in the
Plan.

14.  Successors. The provisions of this Plan shall inure to the benefit of, and be binding upon,
the successors, assigns, heirs, executors and administrators of the parties hereto. Unless
otherwise specified by the Committee, the Plan replaces any other variable compensation plan for
the Participant.

15.  Nonassignment. The rights of a Participant under this Plan shall not be assignable or
transferable by the Participant except by will or the laws of intestacy.

16.  Governing Law. The Plan 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.

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