Ceo Bonus Plan Sample-generic

[Company XXXXX] [YYYY] Management Incentive Plan for [CEO Name] I.

Objective This Plan (the “Plan”) is intended to provide a financial incentive for the eligible employees of XXXXX (the Company) who can have significant impact on the Company’s performance. The Plan is based on the Company’s key goals for the fiscal year beginning in [MM/YY] and ending in [MM/YY].

II.

Summary A.

Philosophy The Management Incentive Plan (MIP) is designed to reward the eligible Company employees for their contributions toward key corporate goals. The MIP is both direct and simple, and is based on quantitative and qualitative results.

B.

Participation The MIP is intended for those employees (Participants) who are not eligible for participation in a Company commission or other Company cash-incentive Plan. Continuing eligibility in the MIP is contingent upon adherence by Participant to the Company’s policies and procedures, as well as compliance with directives issued by the Board to Participant during the term of the Plan. The Participant's eligibility is also contingent upon the current employment of the Participant by the Company on the date the MIP bonuses are earned. This Plan in no way constitutes an employment contract between Participant and the Company. Earning of the MIP bonus (if any) shall occur at the end of the Measurement Period (MM/DD/YYYY). The Measurement Period for [YYYY] shall be the fiscal year ending [MM/DD/YYYY].

C.

Distribution The MIP will be distributed to Participant based on two factors, namely, 1. 2.

Eighty percent (80%) of the bonus will be strictly objective, based on the specific goals defined in section III.A; The remaining twenty percent (20%) will be subjective, based on the individual’s performance. The distribution of this part of the bonus will be made at the discretion of the Board and will be largely based on the items described in section III.B.

Bonus payments will be made only if the company achieves (XX%) of its target Bookings recognizable of [$XXX] for the measurement period. III.

Incentive Compensation A.

Objective Measurement: A bonus of 80% of the MIP will be paid after the end of the Measurement Period, based on actual performance of the objectives defined below: 1. 2. 3. 4.

50% based on 12-month Bookings recognizable at [XX%] of the operating plan level of [$XX]MM. 20% based on Bookings recognizable of [$XX]MM of the operating plan recognizable through partnerships. 15% based on meeting or exceeding current cash operating plan. 15% based on key product release [CODENAME] on MM/DD/YYYY and producing and achieving a product release plan for [YYYY].

B.

Subjective Measurement: A bonus of 20% of the MIP will be paid after the end of the Measurement Period, based on performance of the goals defined below: 1. 2.

IV.

10% based on maintaining management team cohesion and continuity 10% based a successful Series [X] investment process

C.

Amount of MIP The total amount of the bonus for [YYYY] is [$XX].

D.

No MIP will be paid to Participant if at the end of the Measurement Period the Company’s cash balance is less than the cash balance based on the Company’s [YYYY] operating plan, adjusted downward for any incremental debt or bridge issuances that might have occurred over the course of the year.

Interpretation Any ambiguous term under this Plan shall be resolved at the discretion of the Board.

V.

Signature No payment will be made to the Participant without the Participant's signature on this document, acknowledging his/her understanding of the MIP.

[COMPANY NAME]: By:

_____________________________

Date: ________________________________

[PARTICIPANT]: By:

_____________________________

Date: _________________________________