SEC Contract Filing

Filing Date: 2015-04-01

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>6
<FILENAME>exhibit103-2015corporatebo.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
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 <title>Exhibit10.3-2015CorporateBonusPlan</title>
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<a name="s1634ED8A3BE83F0E11F475EA6A24CB0D"></a><div><div style="line-height:120%;text-align:right;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Exhibit 10.3</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div></div><br><div style="line-height:144%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;text-decoration:underline;">2015 Corporate Bonus Plan</font></div><div style="line-height:144%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:144%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Bonus Calculation</font></div><div style="line-height:144%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:144%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Officers and employees (&#8220;Participants&#8221;) of Novatel Wireless, Inc. (the &#8220;Company&#8221;) will be eligible for bonuses under the 2015 Corporate Bonus Plan, with target bonus amounts set as a percentage of base salary based on rank or job title within the Company (the &#8220;Bonus Awards&#8221;). Commissioned employees are not covered by the Plan and are instead covered by their commission plans.</font></div><div style="line-height:144%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:144%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">The Bonus Awards under this Plan are based upon the Company meeting its revenue, gross margin and/or EBITDA objectives. Due to the Company&#8217;s 2014 Retention Bonus Plan&#8217;s applicability to the first quarter of 2015, the Bonus Awards under this Plan relate only to the second through fourth quarters of the Company&#8217;s 2015 fiscal year (the &#8220;Performance Period&#8221;). Payouts will be 75% of the payout that would have been applicable for a bonus plan based on a full fiscal year.</font></div><div style="line-height:144%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><div style="line-height:144%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Seventy-five percent (75%) of the Bonus Award will be based on achievement of Company objectives, with twenty-five percent (25%)&#160;of each Bonus Award earned if the Company meets each of its (a) revenue, (b) gross margin and (c) EBITDA objectives for the Performance Period. Achievement of at least 85% of the revenue and gross margin Performance Goals, and 50% of the EBITDA Performance Goal, is required for any payment of the portion of each Bonus Award that is based on achievement by the Company of such Performance Goal. </font></div><div style="line-height:144%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:144%;font-size:11pt;padding-left:24px;"><font style="font-family:inherit;font-size:11pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:144%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Should the Company achieve at least 85% of its revenue or gross margin Performance Goals, bonuses for such Performance Goal will be paid for that Performance Goal, with 85% performance equating to 50% payout for each Performance Goal. Should the Company achieve 115% or more of its revenue or gross margin Performance Goals, bonuses for that Performance Goal shall be paid at 150% of what the Participant would have been paid on target for that Performance Goal. Bonus Awards are prorated for revenue and gross margin Performance Goal achievement between 85% and 100%, and between 100% and 115%, on a straight line interpolation.</font></div></td></tr></table><div style="line-height:144%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:144%;font-size:11pt;padding-left:24px;"><font style="font-family:inherit;font-size:11pt;">&#8226;</font></div></td><td style="vertical-align:top;"><div style="line-height:144%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Should the Company achieve at least 50% of EBITDA Performance Goal, bonuses for such Performance Goal will be paid for that Performance Goal, with 50% performance equating to 50% payout for the Performance Goal. Should the Company achieve 200% or more of its EBITDA Performance Goal, bonuses for that Performance Goal shall be paid at 150% of what the Participant would have been paid on target for that Performance Goal. Bonus Awards are prorated for EBITDA Performance Goal achievement between 50% and 100%, and between 100% and 200%, on a straight line interpolation.</font></div></td></tr></table><div style="line-height:144%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"