EXHIBIT 10.16
IN FOCUS SYSTEMS, INC.
1997 EXECUTIVE BONUS PLAN - VICE PRESIDENT
POLICY: It is In Focus Systems' policy to provide Corporate Vice
Presidents the opportunity for increased compensation based upon:
1) In Focus Systems' overall achievement of Corporate profit
goals, and 2) performance of each Vice President against his/her
individual goals/objectives.
GUIDELINES: 1. Adoption of Plan
This 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 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 Vice President bonuses will be awarded solely
in accordance with this Plan.
3. Eligibility
Eligibility is limited to all Vice Presidents of the
Company.
Eligible Vice Presidents must be in active pay status for an
entire quarter to be paid profit sharing for that quarter.
The 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 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 Vice President joins the Company after October 1,
1997. 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 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 each Vice President against his/her
individual goals/objectives. This payout shall be
calculated as follows:
- The targeted bonus shall be 30 percent and shall be
calculated using the following formula:
Bonus = (.75P + .25G) (30%)
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
Vice President's performance against his/her 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 Vice President Bonus
Payment of the 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 Vice Presidents in
addition to the 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.