Exhibit 10.32
AXT, INC.
FISCAL 2009 EXECUTIVE INCENTIVE
BONUS PLAN
The following are the terms of the
2009 Executive Bonus Plan approved by the Compensation Committee of
the Board of Directors of AXT, Inc. (the “
Company ”) on December 8, 2008 (the
“ Plan ”).
A.
Purpose
1.
The terms of the Plan have been
established to attract, motivate, retain and reward the
Company’s executive officers and all other officers of the
Company for driving the Company to achieve specific corporate
objectives.
2.
The Plan provides for the payment of
quarterly cash bonuses based upon Company financial targets and
individual performance target objectives.
B.
Eligibility
1.
Those eligible to participate in the
Plan are the Company’s executive officers as determined
pursuant to Section 16 of the Securities Exchange Act of 1934,
as amended and any other officers of the Company designated by the
Compensation Committee (each, an “ Officer
” and collectively, the “ Officers
”).
C.
Determination of Bonus
Amounts
1.
The Compensation Committee has
determined that each individual Officer will have an “
Individual Bonus Percentage ” and an “
Individual Target Bonus ” as defined below,
which will vary depending on such Officer’s position and
responsibilities in the Company.
2.
Bonuses payable will be determined
based upon achievement of corporate financial targets (the “
Corporate Targets ”) and individual targets
established for each Officer (the “ Individual
Targets ”). Achievement of the Corporate
Targets will represent 80% of the total bonus, and achievement of
the Individual Targets will represent 20% of the total bonus.
The Corporate Targets shall be comprised of four financial targets,
revenue (“ Total Revenue Target ”), gross
profit (“ Gross Profit Target ”),
operating expense (“ Operating Expense Target
”) and net income (“ Net Income Target
”). The actual quarterly Corporate Targets are as set
forth on Exhibit A hereto and incorporated
herein.
3.
The Corporate Targets are weighted
10% for each of the Total Revenue Target, Gross Profit Target and
Operating Expense Target, and 50% for the Net Income Target, for a
total of 80% of the total bonus. Accordingly, the “
Corporate Target Achievement Multiplier ”
means, for each quarter, the sum of the (a) actual Total
Revenue for such quarter divided by the Total Revenue Target
multiplied by 0.1, (b) actual Gross Profit for such quarter
divided by the Gross Profit Target multiplied by 0.1,
(c) actual Total Operating Expense for such quarter
