Sample Business Contracts

2006 Success Sharing Plan - Convio Inc.

2006 Success Sharing Plan

Objectives

Eligibility/Administrative Guidelines

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Includes all full-time employees and certain part-time employees (see second bullet) not on the following plans:

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Part-time employees must be employed for twelve months prior to payout date

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Employees hired in first half are eligible for the second half bonus while those hired in the second half are not eligible for a bonus

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Employees on performance improvement plan at anytime during the 6 month period are not eligible

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Employees must be actively on payroll at the time of payment to receive an award

�: All awards calculated on the employee's base salary at the end of the award period

	2005	2006
Funding Components	50% Revenue 50% Operating Income	50% Bookings 50% Operating Income
Corporate Performance Funding	1H Revenue <92.5% = 0% 92.5 � 99% = 50% > or = 100% = 100%*	*Bookings* <90% = 0% 90 � 99% = 50% > or = 100% = 100%*
	*Operating Income* <95% = 0% 95 � 99% = 50% > or = 100% = 100%*	*Operating Income* <95% = 0% 95 � 99% = 50% > or = 100% = 100%
	2H Revenue and Operating Income <95% = 0% 95 � 99% = 50% > or = 100% = 100%*
Employee Bonus Percent	Director: 4-12% Manager: 3-9% Employee: 2-6%	Director: 4-12% Manager: 3-9% Employee: 2-6%
Individual Payout	50% Corporate performance paid out based on employee's bonus percent	50% Corporate performance paid out based on employee's bonus percent
	50% Individual performance paid out based on employee's bonus percent adjustable by managers based on employees performance	50% Individual performance paid out based on employee's bonus percent adjustable by managers based on employees performance
Timing	Halves�50% 1H and 50% 2H�stand alone	Halves�50% 1H and 50% 2H�year-to-date
	*Discretionary accelerators for over achievement in both operating income and revenue achievement	*Discretionary accelerators for over achievement in both operating income and revenue achievement

Payout Example

Assumptions:

�: 1H Corporate attainment is 100% = 100% funding/payout
�: Employee A is an individual contributor with an annual salary of $35,000 and is an average performer
�: Employee B is also an individual contributor with an annual salary of $35,000 and is a top performer

Employee A

Employee B