Exhibit 10.24
2003 EVP INCENTIVE PLAN
Name: Mike Ruffolo
Title: EVP Global Sales, Services and Marketing
Chairman, Operations Group
Base salary: $400,000
Annual incentive target: $100,000
Your annual bonus is based on the Company's performance against stated financial
objectives and operational objectives. You must be an employee for the entire
year to be eligible to receive the annual incentive payment, which will be paid
in the quarter following the end of the performance period.
At the discretion of the CEO and/or Compensation Committee of the Board,
performance criteria are subject to revision based on changes in circumstances
including new business direction or extraordinary events.
Incentives below or above target will be determined based on interpolation.
Performance at target will receive funding at target. Performance below
threshold levels will receive no funding. Funding for performance below or above
target will be interpolated using a "straight line" approach. Performance above
"maximum" of plan may be capped at the sole discretion of the CEO and the
Compensation Committee of the Board.
PERFORMANCE CRITERIA
CRITERIA WEIGHT THRESHOLD MIN TARGET MAX
-------- ------ --------- --- ------ ---
TOTAL RECOGNIZED REVENUE ($000,000) 50% <$ 134 $ 134 $ 135.7 $ 150
BONUS PAYOUT ($000) $ 0 $ 25.0 $ 50.0 $ 100.0
FCF+, Q4 2003 ($000,000) 20% <$ 0.0 $ 0.0 $ 1.0 $ 5.0
BONUS PAYOUT ($000) $ 0 $ 10.0 $ 20.0 $ 40.0
EDGE COMPUTING (DEALS CLOSED IN 2003) 30% < 15 15 25 35
BONUS PAYOUT ($000) $ 0 $ 15.00 $ 30.0 $ 60.0
TOTAL 100% $ 0.0 $ 50.0 $ 100.0 $ 200.0
Bonuses are conditional on your compliance with the Code of Business Ethics as
in effect from time to time during 2003.
DEFINITIONS
RECOGNIZED REVENUE
Recognized revenue means Total Revenue as reported in the Company's consolidated
financial statements filed with the Securities and Exchange Commission on Form
10-K or Form 10-Q ("Public Company Financial Statements"). If, at any time, the
Company is not required to make periodic reports under the Exchange Act,
"Revenue" shall mean Total Revenue as set forth on regularly prepared quarterly
financial statements prepared by management ("Private Company Financial
Statements").
FREE CASH FLOW POSITIVE
Unless otherwise determined by the Board of Directors, "positive Free Cash Flow"
shall have been achieved when the sum of the Company's (A) Cash and Cash
Equivalents, (B) Short-Term Marketable Securities and (C) Long-Term Marketable
Securities ("Free Cash") as of the end of a fiscal quarter, as reported in the
Company's Public Company Financial Statements or Private Company Financial
Statements for such quarter, as applicable at such time, is greater than the
Company's Free Cash at the end of the preceding quarter.
EDGECOMPUTING
For the purposes of this goal, an EdgeComputing customer is any customer paying
Akamai to deploy, execute, process and deliver at least one application on
Akamai's network. An EdgeComputing solution will generally involve executing
Java code on our network, and/or processing other forms of code, like ESI or
XSLT. The key differentiation from any other service or product is that
EdgeComputing is the service we sell to Akamaize an "application," not whole
sites or objects or streams (e.g., EdgeSuite and Streaming). An application
represents a tangible business function (e.g. verbs like locate dealer, vote,
choose wallpaper, register, broker, regulate entrance (waiting room)). For
example, Tickets.com would be an EdgeComputing deal (application: waiting room,
solution: ESI logic, not caching), while MTV is an EdgeSuite customer today
(WebSite, Solution: ESI for caching not logic). Every EdgeComputing contract
will also incorporate either EdgeSuite Delivery or EdgeSuite Enterprise Edition
to manage bandwidth and other features specifically associated with enabling the
identified application.
Acceptance /s/ Mike Ruffolo April 29, 2003
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Mike Ruffolo Date
Approved by: /s/ George Conrades April 29, 2003
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George Conrades Date