Document:

Account Executive

EXHIBIT 10.1

 

 

 

Internet Security Systems, Inc.

[YEAR] ISS Executive 

Incentive Plan

 

[Effective Date]

I.          PURPOSE

This Executive Incentive Plan (the "Plan") sets forth the Company's policies governing incentive compensation effective April 1, [YEAR] through March 31, [YEAR] or until such time as the Plan is amended in writing.  Your individual base salary, quarterly and annual incentive targets are provided on the attached Individual Compensation Opportunity Statement.

In order to receive incentive compensation payments under this Plan, you must sign and return a copy of this Plan to the VP, Human Resources.  Further, you must be employed through the end of a performance period to qualify for an incentive payment for that period (quarterly or annual).

II.        OBJECTIVES

        The objectives of the Executive Incentive Plan are to reward you for: 

	Executing our plan in accordance with corporate revenue, profitability and operational goals
	Representing ISS' best interests in all business relationships 
	Contributing to the successful development and achievement of ISS' strategic goals and objectives,  [Insert special programs]
	Working with other members of the management team in clarifying and communicating a winning market and product strategy, and translating this strategy into clear market plans
	Developing a corporate culture based upon performance, integrity, compassion and ISS core values 

III.      RESPONSIBILITIES

        Your responsibilities in keeping with the objectives stated above are to:

	Represent yourself and ISS at all times in the most ethical and professional manner
	Lead your individual unit with integrity and in accordance with ISS core values
	Take full responsibility to execute company plans and meet performance objectives established in accordance with our strategic imperatives
	Meet or exceed performance targets as set forth in this Plan 
	Manage expenses wisely, prudently, and in accordance with the company's expense policies  
	Ensure that your behavior and leadership continually perpetuate the GO ISS! culture

IV.INCENTIVE COMPENSATION PLAN 

Your variable compensation opportunity will be made up of quarterly and annual incentive opportunities as outlined on your Individual Compensation Opportunity Statement.   

V.    PAYMENTS

Incentive Payments will be made quarterly within 30 days from ISS announced earnings and performance. All payments will be made for achievement against the [YEARS] ISS measures and approved by the Compensation Committee of the Board of Directors.

VI.QUARTERLY INCENTIVE PLAN MEASURES

The quarterly incentive plan measures for Corporate Executives are:

	ISS consolidated quarterly revenue
	Quarterly earnings per share (non-GAAP, as adjusted)
	Days Sales Outstanding at end of quarter

The quarterly incentive plan measures for Theatre Heads are:  

	Theatre product quarterly revenue
	Theatre total quarterly revenue
	Theatre quarterly contribution margin
	Theatre Days Sales Outstanding at end of quarter

The relative weighting among the incentive plan measures is provided in the Individual Compensation Opportunity Statement furnished to you.

VII.ANNUAL INCENTIVE MEASURES

The annual incentive plan measures for Corporate Executives are:  

	ISS consolidated annual revenue
	Annual earnings per share (non-GAAP, as adjusted)

The annual incentive plan measures for Theatre Heads are:  

	Theatre total annual revenue
	Theatre annual contribution margin

The relative weighting among the quarterly and annual incentive plan measures is provided on your Individual Compensation Opportunity Statement.

VIII.ANNUAL PRODUCT LINE PERFORMANCE (PLP) BONUS FOR THEATRE HEADS
In [YEAR], if the Company reports an EPS of at least [TARGET], Theatre Heads are also eligible for an annual Product Line Performance (PLP) opportunity based on the attainment of selected Product Line or Service (PLS) revenue achievements.  Payments under the PLP opportunity are not prorated for an achievement of less than an EPS of [TARGET].  The incentive opportunity is stated in the Individual Compensation Opportunity Statement furnished to you.

IX.PLP PLAN MEASUREMENTS:
The annual Product Line Performance Bonus will be determined by the Product Line/Service (PL/S) revenue schedule.  The incentive opportunity for each PL/S is independent from each other in that participants could earn a payout under one, all, or any combination, based on each revenue achievement.  Payments under a PL/S opportunity are not prorated for partial achievement of a PL/S revenue target.

Results against PL/S revenue measures will be determined by the Chief Executive Officer and the Chief Financial Officer and may incorporate any adjustments deemed appropriate to correctly reflect the PL/S revenue results.  Final approval of payouts will be made by the Compensation Committee of the Board of Directors.  

The annual Product Line Performance opportunity will be based on the following schedule:

	

Product Line or Service (PL/S)
	

2006 Revenue Target

	
	

	
	

	
	

	
	

	
	

X.    GENERAL PROVISIONS

Modification of the Plan

ISS reserves the right to modify this Plan as deemed necessary by the Compensation Committee of the Board of Directors.   

Final Authority on Disputes

Final authority for issues not specifically addressed in this Plan, and for all matters of administration of the Plan shall be decided by the Compensation Committee of the Board of Directors.

Right to Terminate

Nothing in this Plan shall be construed to imply a contract of employment between ISS and you.  ISS reserves the right to terminate your employment or participation in this Plan at any time with or without cause. Should you terminate employment, either voluntarily or involuntarily, then all incentive payments/commissions under this Plan not yet earned, as defined in the Plan, shall be forfeited.  

Governing Law

This Plan shall be governed by and construed in accordance with the laws of the [State of Georgia or local jurisdiction].

IX.FORM OF - 

[YEAR] INDIVIDUAL COMPENSATION OPPORTUNITY STATEMENT

Participant:

Title:

	Quarterly and Annual Metrics for Corporate Executives and Theatre Heads.  

	The total incentive opportunity will be split between quarterly and annual components as follows:

	

Participant
	

Quarterly 
	

Annual

	

Corporate Executives
	 	 
	

Theatre Heads
	 	 

	The quarterly incentive plan measures for Corporate Executives are allocated among the following performance metrics:

	

Measure
	

Description
	

Weight

	

Quarterly Revenue
	

ISS Revenue   
	 
	

Profitability
	

Earnings Per Share 
	 
	

DSO
	

Days Sales Outstanding
	 

	The quarterly incentive plan measures for Theatre Heads are allocated among the following performance metrics:  

	

Measure
	

Description
	

Weight

	

Theatre Product Revenue
	

Total quarterly revenues from software licenses and products   
	 
	

Theatre Total Revenue
	

Total quarterly revenues from products, subscriptions and services 
	

	

Contribution Margin 
	

Measured as the percentage of (theatre operating revenues minus theatre operating expenses) to theatre operating revenues
	 
	

Theatre DSO
	

Days Sales Outstanding  
	 

	The annual incentive plan measures for Corporate Executives are allocated among the following performance metrics:  

	

Measure
	

Description
	

Weight

	

Annual Revenue
	

ISS Revenue 
	 
	

Annual Profitability
	

Earnings per Share 
	 

	The annual incentive plan measures for Theatre Heads are allocated among the following performance metrics:  

	

Measure
	

Description
	

Weight

	

Annual Revenue
	

Theatre Revenue
	 
	

Annual Profitability
	

Contribution Margin
	 

	
	The annual Product Line or Service incentive plan measures for Theatre Heads are allocated among the following performance metrics:  

	

Product Line or Service (PL/S)
	

[YEAR]

Revenue Target

	
	

	
	

	
	

	
	

	
	

	Incentive weights and [YEAR] annual targets for the metrics were approved by the Compensation Committee.  Specific quarterly targets, any changes to the annual targets, and calculations for payment of quarterly and annual incentive compensation are subject to approval of the Compensation Committee of the Board of Directors.  Its decisions are final.  

 

	Your Individual Compensation.

Participant:

Title:

	

Annual Base Salary As of  April 1, [YEAR]:
	 
	 	 
	

Quarterly Incentive Opportunity for [YEAR]:
	 
	

Q2 
	

 

	

Q3
	 
	

Q4
	 
	

Q1
	

 

	

[YEAR] Total Quarterly Opportunity
	

 

	 	 
	

 

[YEAR] Annual Incentive Plan Opportunity
	

 

	 	 
	

 

[YEAR] Total Cash Compensation Opportunity
	

 

	 	 
	

 

[Product Line Performance Bonus Opportunity] 
	 
	 	 
	

[Additional Bonus Opportunity (Contingent upon achieving stated ISS [YEAR] Consolidated Revenues)]
	 
	 	 
	

Long-Term Incentives:

	[Stock Options] 
	[Restricted Stock]

 
	

 

 

 

 

	 	 

 

 

In order to receive incentive compensation payments under this Plan, you must sign and return the original to the VP Human Resources.  Please retain a copy for your records.  

ACCEPTED:

Participant's Name: 

Signature: 

Date:Management Agreement Letter Amendment

 Exhibit 10.1 
 As of January 1, 2006 
 Sunstone Hotel Properties, Inc. 
 c/o Interstate Hotels & Resorts, Inc. 
 4501 N. Fairfax Drive, Suite 800 
 Arlington, VA 22203 
  

	 	Re:	Modification of Master Agreement 

 Ladies and Gentlemen: 
 Reference is made to that certain Master Agreement dated as of October 26, 2004 (as assigned, assumed and amended, the “Master
Agreement”), by and among Sunstone Hotel Properties, Inc., a Colorado corporation (“Operator”), and each entity other than Operator which is a signatory to this letter agreement (each an “Owner” or collectively,
the “ Owners”). Unless otherwise defined herein, all capitalized terms used in this letter agreement shall have the meanings ascribed to such terms in the Master Agreement. 
 For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Operator and each Owner hereby agree as follows:

 (a) Effective as of January 1, 2006, Section 7 of the Master Agreement is hereby modified to read in full as follows:

 “7. Dedicated Staff. Operator and/or its affiliates shall establish and maintain a dedicated operational staff to oversee the
operations, sales and marketing, revenue management and centralized accounting for the Portfolio Properties (the “Staff”). The Staff will initially consist of personnel filing the positions and numbers thereof set forth on Schedule
C which shall also summarize the approximate costs of such personnel, as modified by that certain letter agreement dated July 1, 2005. From and after January 1, 2006, Operator may make decreases in the Overhead (as such term is defined
below) proportionately with changes in Total Revenues from the Portfolio Properties; provided, however, Owner shall have approval rights over the change in identity of any person filling the Staff positions which approval shall not be unreasonably
withheld or delayed. The Staff shall be based in Southern California in the offices maintained by Owner unless otherwise agreed to by Owner, and Operator shall bear the portion of the expenses (rent, CAM charges, utilities, IT maintenances costs and
such other matters set forth on Schedule C) that are expressly set forth on Schedule C as allocable to Operator (the portion of the expenses expressly set forth on Schedule C as allocable to Operator and the salaries, benefits
and related employment expenses of the Staff are referred to herein as the “Overhead”). 

 
Commencing January 1, 2007, Operator shall have the right to reduce the Overhead that existed as of December 31, 2006 by an aggregate amount of up
to ten percent (10%) as a result of achieving synergies with the hotel operations of other hotels managed by Operator Affiliates which reduction shall be exclusive of, and in addition to, any reductions in Overhead as a result of proportionate
decreases in Total Revenues from the Portfolio Properties as described above. Operator shall have the sole discretion and control in making increases in the Staff and Overhead. Operator shall have the sole discretion and control in the supervision
of the Staff, including, but not limited to, the recruitment, dismissal and determination of wages, benefit and severance policies. Notwithstanding the foregoing, Operator shall not make any change in the identity of the persons filling the
following positions: Executive Vice Presidents of Operations or the Regional Directors of Operations, Executive and Regional Vice Presidents of Sales and Marketing, Directors of Regional Sales, Directors of Hotel Accounting and/or certain mutually
agreed upon key Revenue Management personnel overseeing the Portfolio Properties without the prior written consent of Owner, which consent shall not be unreasonably withheld or delayed. Further, no reductions in Overhead or Staff made by Operator
pursuant to this Section 7 shall be permitted to the extent such reductions (either individually or in the aggregate) adversely affect Operator’s ability to timely and efficiently discharge its duties and obligations hereunder and under
the Management Agreements.” 
 Except as modified hereby, the Master Agreement shall remain in full force and effect. 
 IN WITNESS WHEREOF, the parties hereto have executed this letter agreement effective as of the day and year first above written. 
  

			
	SUNSTONE HOTEL PROPERTIES, INC.
		
	By:	 	 /s/ Christopher L. Bennett

	 Name:
	 	 Christopher L. Bennett

	 Title:
	 	 Secretary & SVP

  

			
	SHP LESSEE CORP.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

			
	SUNSTONE LASALLE LESSEE, INC.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

 2 

			
	WB SUNSTONE-HOLLYWOOD, INC.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

			
	SUNSTONE/WB MANHATTAN BEACH LESSEE, INC.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

			
	SUN NAPA MERLOT LESSEE, INC.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

			
	SUNSTONE HOLT LESSEE, INC.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

			
	WB SUNSTONE-RIVERSIDE, INC.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

			
	SHP LESSEE II CORP.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

			
	WB SUNSTONE-BOISE, INC.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

			
	WHP HOTEL LESSEE - 3, INC.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

 3 

			
	WB GRAND RAPIDS, INC.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

			
	ROCHESTER RIBM LESSEE, INC.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

			
	SUNSTONE SIDEWINDER LESSEE, INC.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

			
	WB SUNSTONE-LAKE OSWEGO, INC.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

			
	WB SUNSTONE-PORTLAND, INC.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

			
	SUNSTONE COWBOY LESSEE, L.P.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

			
	SHP LESSEE III CORP.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

			
	SUNSTONE DURANTE LESSEE, INC.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

 4 

			
	SUNSTONE KAHLER LESSEE, INC.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

			
	SUNSTONE VALLEY RIVER LESSEE, INC.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

			
	SUNSTONE BROADHOLLOW LESSEE, INC.
		
	By:	 	 /s/ Jon D. Kline

	 Name:
	 	 Jon D. Kline

	 Title:
	 	 Vice President

  

 5

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