Exhibit 10.01
ADAPTEC, INC.
Adaptec Incentive Plan
Document
Fiscal Year 2006
1.
Plan Name and Effective Date
The name of the plan is the Adaptec
Incentive Plan (the “AIP”). The AIP is effective for
Adaptec’s 2006 fiscal year from April 1, 2005 through
March 31, 2006 (“Fiscal Year 2006”).
2.
Purpose
The purpose of the AIP is to provide
a direct financial incentive for eligible executives, managers and
individual contributors to make a significant contribution to
Adaptec’s established goals in order to help Adaptec’s
stockholders realize increased value from their
investment.
3.
Eligibility
All full or part-time exempt
employees in grade 21 and above are eligible to participate in the
AIP. All eligible employees must have worked for Adaptec at least
six months and must still be an employee of Adaptec at the time
payments are made, as discussed below, in order to qualify to
participate in the AIP. Commissioned sales employees, temporary
employees and independent contractors are not eligible to
participate in the AIP. All Adaptec employees that are
eligible to participate in the AIP are deemed to be
“Participants” in the AIP.
4.
Timing of AIP Payments
Payments that become due under the
AIP will be paid to Participants as soon as administratively
feasible after the overall budget is approved by the Compensation
Committee following the close of the second quarter of Fiscal Year
2006 or the fourth quarter of Fiscal Year 2006, as
applicable.
5.
Funding the AIP Pool
The AIP reinforces three key goals
that support Adaptec’s strategic plans: achieving
Adaptec’s strategic goals, maximizing Adaptec’s revenue
(“Revenue”) and maximizing Adaptec’s Operating
Profit Before Taxes (“OPBT”). Achievement of four
strategic goals accounts for 25% of the AIP incentive pool (the
“AIP Pool”), or an aggregate total of $825,000,
and will be paid to Participants if three of these four goals are
achieved, regardless of whether the financial goals are reached.
In order for the Compensation Committee to fund the remaining
75% of the AIP Pool and in order for Participants to
be
