EXHIBIT 10.15
IN FOCUS SYSTEMS, INC.
1997 EXECUTIVE BONUS PLAN - SENIOR VICE PRESIDENT
POLICY: It is In Focus Systems' policy to provide Corporate Senior Vice
Presidents the opportunity for increased compensation based upon:
1) In Focus Systems' overall achievement of Corporate profit
goals, and 2) performance of each Senior Vice President against
his individual goals/objectives.
GUIDELINES: 1. Adoption of Plan
This Senior Vice President Bonus Plan (the "Plan") was
adopted by the Board of Directors of In Focus Systems, Inc.
(the "Company") effective January 24, 1997.
2. Purpose of Plan and Effective Date
The purpose of the Plan is to establish the terms and
conditions under which the Company will pay Senior Vice
President bonuses for the calendar year beginning January 1,
1997 and ending December 31, 1997.
Unless the Board of Directors specifically provides
otherwise, all Senior Vice President bonuses will be awarded
solely in accordance with this Plan.
3. Eligibility
Eligibility is limited to the Senior Vice President of the
Company.
Eligible Senior Vice Presidents must be in active pay status
for an entire quarter to be paid profit sharing for that
quarter. The Senior Vice President must also be in active
pay status when profit sharing checks are distributed in
order to receive that quarter's profit sharing payout.
In the event that a Senior Vice President is with the
Company for less than one year, a pro-rated bonus will be
calculated based on number of months employed. No annual
bonus will be paid if a Senior Vice President joins the
Company after October 1, 1997. Senior Vice Presidents must
be actively employed on the last day of the year to be
eligible for any annual bonus amount.
4. Plan Components
(a) Profit Sharing
The first component of the bonus plan shall be the payment
of the profit sharing, paid quarterly. The percentage to be
paid (multiplied by the Senior Vice President's quarterly
salary) shall be at the same rate as calculated for other
employees in accordance with the currently approved In Focus
Systems Profit Sharing Program. The payment to be made to
the Vice Presidents shall not reduce the amount to be paid
to other employees, i.e., shall not come from the profit-
sharing pool calculated for other employees.
(b) Annual Bonus
The second component of the bonus plan shall be an annual
bonus paid at year end based on: 1) the Company's 1997
financial performance (Profit Before Tax), and 2) the
performance of the Senior Vice President against his
individual goals/objectives. This payout shall be
calculated as follows:
- The targeted bonus shall be 35 percent and shall
be calculated using the following formula:
Bonus = (.75P + .25G) (35%)
where:
-- P = Corporate PBT performance (vs. Operating
Plan) calculated by dividing actual 1997
Profit Before Tax (PBT) plus income/loss from
joint venture activity by Operating Plan PBT
plus planned income/loss from joint venture
activity.
-- G = Individual performance (vs. 1997 goals)
determined by the CEO, by comparing the
individual Senior Vice President's
performance against his major 1997 goals.
- Other limitations/constraints regarding
calculation of the bonus are as follows:
-- Profit Component of Bonus = 0 if P is less
than .75
-- Individual Goals Component of Bonus = 0 if G
is less than .75
-- Maximum bonus component for individual
performance = 130%.
-- Maximum bonus component for PBT component =
200%.
-- If Profit is less than 75% of Plan but
greater than 49.99% of Plan, the Executive
shall receive a reduced bonus amount based on
what the Individual Performance component
would have otherwise been. The reduced
amount shall be calculated by multiplying the
Individual Performance component by the
percentage of Profit actually achieved.
-- If Profit is less than 50%, no payouts will
be made from either component.
5. Payment of Senior Vice President Bonus
Payment of the Senior Vice President Bonus Plan will be
based on audited year-end results, and will be distributed
within 30 days after the audit has been completed.
6. Discretion of the Board of Directors
Nothing in this Plan shall prohibit the Board of Directors
from awarding a bonus to one or more Senior Vice Presidents
in addition to the Senior Vice President Bonus awarded
pursuant to this Plan.
The Board of Directors reserves the right to modify, change
or rescind this policy at any time at its sole discretion as
is required to meet the Company's objectives.
Any annual bonus greater than $100,000 will require approval
of the Corporate Compensation Committee.