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SUMMARY OF EXECUTIVE BONUS ARRANGEMENTS

Employee Bonus Plan Agreement

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This Employee Bonus Plan Agreement involves

ARI NETWORK SERVICES INC /WI

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Title: SUMMARY OF EXECUTIVE BONUS ARRANGEMENTS
Date: 10/30/2006
Industry: CMPNET    

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exv10w8
 

Exhibit 10.8

Summary of Executive Bonus Arrangements
(For Fiscal 2007)

I. Bonus Structure

 

 

For the current year bonus, an executive’s on-target bonus objective is approved each year by the compensation committee. Achievement of the bonus is based on four, equally-weighted performance goals: 25% revenue (growth only), 25% Profit (Operating Income), 25% Cash (cash flow from operating and investment activities before changes in working capital), 25% MBO (individual performance objectives); provided, however, that if the revenue objective is not achieved at the 80% threshold level, the other three objectives will be paid to a maximum of 50% of the target amounts.

 

o

 

Financial Bonus Component split by quarter: 20% for each of the first three fiscal quarters and 40% for the fourth quarter, in each case on a year-to-date basis.

 

 

 

 

 

o

 

2-break Financial Bonus formula:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of Bonus

 

 

 

 

 

 

 

 

 

 

 

 

up to 1st

 

 

 

% of Bonus up to

 

2nd Break

 

% of Bonus up to

 

% of Bonus at and

 

 

Break

 

1st Break Point

 

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