Document:

exv10w7

 

Exhibit 10.7

Proposed 2006 All Employee Bonus Scheme

As previously discussed, from January 1, 2006, we intend to reintroduce an all employee bonus
scheme. The purpose of implementing this bonus scheme is to motivate and reward staff for the
achievement of both Company and Personal targets and by doing this help in retaining staff.

The Scheme in summary

	 	•	 	The scheme will make payments to eligible employees on meeting two criteria: company
financials (EBITDA and Revenues) and Personal Objectives. EBITDA and revenue targets will
be set by the Chief Executive Officer and the Chief Financial Officer on a quarterly
basis just after the start of each quarter. Personal objectives will be set by local
management. In order to trigger personal objective payments, minimum business targets
must be achieved.
	 
	 	•	 	Eligible employees means all permanent staff (except those who currently participate in
other bonus or incentive arrangements, e.g., sales incentive plan, Shenzhen, San Jose
Pluggables) who are employees and have not resigned on the day of the payment.
	 
	 	•	 	Maximum payouts of quarterly basic pay (excluding allowances, etc.) will be on the
following basis:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Total	 	Company	 	Personal	 	Comments
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	¡  CEO
	 	 	100	%	 	 	50	%	 	 	50	%	 	Contractual
	 

	 	¡  Officers
	 	 	50	%	 	 	25	%	 	 	25	%	 	Contractual
	 

	 	¡  VPs
	 	 	25	%	 	 	12.5	%	 	 	12.5	%	 	Contractual
	 

	 	¡  Managers
	 	 	10	%	 	 	5	%	 	 	5	%	 	 
	 

	 	¡  Engineers
	 	 	10	%	 	 	5	%	 	 	5	%	 	 
	 

	 	¡  Indirect Staff
	 	 	5	%	 	 	2.5	%	 	 	2.5	%	 	 
	 

	 	¡  Direct Staff
	 	 	5	%	 	 	2.5	%	 	 	2.5	%	 	 

	 	•	 	Payments under the scheme will be made in the second month following the end of the
period, this is to allow time to provide a fair assessment of the performance of the
individuals and to incorporate the periods business targets. Therefore, for the first
quarter of 2006, payment will be made in May 2006.
	 
	 	•	 	Deductions will be made for periods of absence, sickness, etc.exv10w8

 

Exhibit 10.8

Director Compensation

Retainer — $20,000 per year

Each in-person meeting — $3,000

Each qtrly telephonic meeting — $500

All other telephonic meetings of board or committee — $500 per call per attendee

Committee membership:

Audit – $8,000 per year

Comp – $4,000 per year

Nom & Gov — $4,000 per year

Chair:

Board — $80,000 per year

Audit Comm — $36,000 per year

Comp Comm — $16,000 per year

Nom & Gov Comm — $16,000 per year

Equity Comp (non-employee directors) – 10,000 shares restricted stock; and
10,000 options per year

Options vest immediately, RS vests 50% after one year and 50% after two years.FIRST BUSINESS
FINANCIAL SERVICES, INC. 

RESTRICTED STOCK
AGREEMENT 

        THIS
AGREEMENT, made this ______________ day of _____________, 20____, (the “Grant
Date”) by FIRST BUSINESS FINANCIAL SERVICES, INC., a Wisconsin corporation
(the “Company”), and ____________________, an employee of the Company (the
“Employee”). 

	1. 	Grant
of Restricted Stock. Pursuant to the First Business Financial           Services,
Inc. 2001 Equity Incentive Plan (the “2001 Plan”), the Board           of
Directors of the Company (the “Board”) has granted to the Employee,
          on the terms and conditions set forth herein, __________________ shares of
          common stock of the Company (the “Restricted Shares”). 

	2. 	Period
of Restriction.

	 	a.	Vesting
Period. Twenty-five percent (25%) of the Restricted Shares will           vest on
each of the first four (4) anniversaries of the Grant Date, provided the
          Employee is employed by the Company or an Affiliate on the applicable vesting
          date. If the Employee’s employment terminates prior to the date the
          Restricted Shares are vested as a result of death or disability (within the
          meaning of Code Section 22(e)(3)), the Restricted Shares will become fully
          vested on such date of termination. Upon any other termination of employment
          prior to the date the Restricted Shares are vested, the Employee will forfeit
          the Restricted Shares unless otherwise determined by the Board or Committee.
          Notwithstanding the foregoing, upon a Change of Control, all Restricted Shares
          shall become vested in full provided the Employee is employed by the Company or
          an Affiliate on the date of such Change of Control. 

	 	b.	Non-Transferability
of Shares. The Employee may not sell, transfer           or otherwise alienate
or hypothecate any of the Restricted Shares until they are           vested. 

	 	c.	Voting
and Dividends. While the Restricted Shares are subject to           forfeiture, the
Employee may exercise full voting rights and will receive all           dividends and
other distributions paid with respect to the Restricted Shares, in           each case so
long as the applicable record date occurs before the Restricted           Shares are
forfeited. If, however, any such dividends or distributions are paid           in Shares,
such Shares will be subject to the same risk of forfeiture,           restrictions on
transferability and other terms of this Agreement as are the           Restricted Shares
with respect to which they were paid. 

	 	d.	Termination
of Employment. For purposes of this Agreement, the Employee           will not be
considered to have terminated employment if the Employee transfers           employment
between the Company and any Affiliate of the Company, or between the           Company’s
Affiliates, or ceases to be employed by the Company or an           Affiliate of the
Company and immediately thereafter becomes a non-employee           director of the
Company, a non-employee director of any Affiliate, or a           consultant to the
Company or any Affiliate until such Participant’s service           as an employee,
director of, or consultant to, the Company and its Affiliates           has ceased. 

	3. 	Non-Transferability
of Award. This Restricted Stock Agreement shall not           be transferable other
than by will or by the laws of descent and distribution,           or pursuant to a
beneficiary designation filed in accordance with Section 5. 

	4. 	Escrow/Issuance
of Shares. The Restricted Shares will be held in escrow           by the Company, as
escrow agent. The Company will give the Employee a receipt           for the Restricted
Shares held in escrow that will state that the Company holds           such Shares in
escrow for the Employee’s account, subject to the terms of           this Agreement,
and the Employee will give the Company a stock power for such           shares duly
endorsed in blank which will be used in the event such shares are           forfeited in
whole or in part. As soon as practicable after the vesting date,           the Restricted
Shares will cease to be held in escrow, and certificate(s) for           such number of
shares will be delivered to the Employee or, in the case of the           Employee’s
death, to his or her beneficiary. 

	5. 	Beneficiary. The
Employee may designate one or more beneficiaries who           shall be entitled to
receive the Restricted Shares that vest upon the death of           Employee. The
Employee may from time to time revoke or change his or her           beneficiary
designation without the consent of any prior beneficiary by filing a           new
designation with the Company. The last such designation received by the           Company
shall be controlling; provided, however, that no designation, or change           or
revocation thereof, shall be effective unless received by the Company prior           to
the Employee’s death, and in no event shall any designation be effective
          as of a date prior to such receipt. If no beneficiary designation is in effect
          at the time of Employee’s death, or if no designated beneficiary survives
          the Employee or if such designation conflicts with law, the Employee’s
          estate will be considered the beneficiary. If the Board is in doubt as to the
          right of any person to receive the Restricted Shares, the Company may refuse to
          issue shares to any individual, without liability for any interest or dividends
          on the underlying Stock, until the Board determines the person entitled to
          receive the shares, or the Company may apply to any court of appropriate
          jurisdiction and such application shall be a complete discharge of the
liability           of the Company therefor. 

	6. 	Restrictions
on Issuance and Transfer of Shares.

	 	a.	General. No
shares of Stock will be issued under this Agreement unless           and until the
Company has determined to its satisfaction that such issuance           complies with all
relevant provisions of applicable law, including the           requirements of any stock
exchange on which the shares may then be traded. 

	 	b.	Securities
Laws. Employee acknowledges that he or she is acquiring the           Restricted
Shares for investment purposes only and not with a view to resale or           other
distribution thereof to the public in violation of the Securities Act of           1933,
as amended (the “Act”). Employee agrees and acknowledges with           respect
to any Restricted Shares that have not been registered under the Act,           that (i)
Employee will not sell or otherwise dispose of such shares except           pursuant to
an effective registration statement under the Act and any applicable           state
securities laws, or in a transaction which in the opinion of counsel for           the
Company is exempt from such registration, and (ii) a legend will be placed           on
the certificates for the shares to such effect. As further conditions to the
          issuance of the Restricted Shares, the Employee agrees for himself, his
          beneficiary(ies), and his heirs, legatees and legal representatives, prior to
          such issuance to execute and deliver to the Company such investment
          representations and warranties, to enter into a restrictive stock transfer
          agreement, and to take or refrain from taking such other actions, as counsel
for           the Company determines may be necessary or appropriate for compliance with
the           Act and any applicable federal or state securities laws, regardless of
whether           the shares have at that time been registered under the Act or qualified
under           the securities laws of any state. 

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	7. 	Tax
Withholding. To the extent that the receipt of the Restricted Shares           or the
vesting of the Restricted Shares results in income to the Employee for           Federal,
state or local income tax purposes, the Employee shall deliver to the           Company
at the time the Company is obligated to withhold taxes in connection           with such
receipt or vesting, as the case may be, such amount as the Company           requires to
meet its withholding obligation under applicable tax laws or           regulations, and
if the Employee fails to do so, the Company has the right and           authority to
deduct or withhold from other compensation payable to the Employee           an amount
sufficient to satisfy its withholding obligations. If the Employee           does not
make an election under Section 83(b) of the Internal Revenue Code of           1986, as
amended, in connection with this Agreement, the Employee may satisfy           the
withholding requirement, in whole or in part, by electing to have the           Company
withhold for its own account that number of Restricted Shares otherwise
          deliverable to the Employee from escrow hereunder on the date the tax is to be
          determined having an aggregate Fair Market Value on the date the tax is to be
          determined equal to the minimum statutory total tax that the Company must
          withhold in connection with the vesting of such Shares. Such election must be
          irrevocable, in writing, and submitted to the Secretary of the Company before
          the applicable vesting date. The Fair Market Value of any fractional Share not
          used to satisfy the withholding obligation (as determined on the date the tax
is           determined) will be paid in cash. 

	8. 	Failure
to Enforce Not a Waiver. The failure of the Company to enforce at           any time
any provision of this Agreement shall in no way be a waiver of such           provision
or of any other provision hereof. 

	9. 	Employee
Bound by Plan. Employee hereby acknowledges receipt of a copy of           the 2001
Plan and agrees to be bound by all the terms and provisions thereof.           The terms
of the 2001 Plan to the extent not stated herein are expressly           incorporated
herein by reference and in the event of any conflict between this           Agreement and
the Plan, the Plan shall govern. Any capitalized terms not defined           herein will
have the meanings given in the Plan. This Agreement is subject to           all of the
terms, conditions and provisions of the Plan, including, without           limitation,
the amendment provisions thereof, and to such rules, regulations and
          interpretations relating to the Plan or this Agreement adopted by the Board and
          in effect from time to time. By signing below, the Participant agrees and
          accepts on behalf of himself or herself, and his or her heirs, legatees and
          beneficiary(ies), that all decisions or interpretations of the Board with
          respect to the Plan or this Agreement are binding, conclusive and final. 

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	10. 	Notices. Any
notice hereunder to the Company shall be addressed to it at           its office, 401
Charmany Drive, Madison, WI 53719; Attention: Corporate           Secretary, and any
notice hereunder to Employee shall be addressed to him or her           at the last home
address on file with the Company. Either party may designate           some other address
at any time hereafter in writing. 

	11. 	Severability. In
the event any provision of the Agreement is held illegal           or invalid for any
reason, the illegality or invalidity will not affect the           remaining provisions
of the Agreement, and the Agreement shall be construed and           enforced as if the
illegal or invalid provision had not been included. 

	12. 	Amendments. This
Agreement may be amended or modified at any time by an           instrument in writing
signed by the parties hereto, and may be amended or           terminated by the Company
or the Board without the Employee’s consent as           provided in the Plan. 

        IN
WITNESS WHEREOF, the parties have executed this Restricted Stock Agreement on the day
and year first above written. 

		FIRST BUSINESS FINANCIAL SERVICES, INC.
	
 	By______________________________________
		Its:
	
 	The undersigned hereby accepts and agrees to all the terms
		and provisions of the foregoing Restricted Stock Agreement
		and to all the terms and provisions of the First Business
		Financial Services, Inc. 2001 Equity Incentive Plan.
	
 	______________________________________
		                                  (Employee)

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