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FISCAL YEAR 2009 MANAGEMENT BONUS
PLAN
All ArcSight,
Inc. (the “Company”) executives who do not otherwise
receive variable compensation will be eligible to participate in
this cash bonus plan. Each eligible executive’s actual
participation level will be determined by their individual
performance.
Cash bonus
available will be based on a percentage of an executive’s
base salary upon the Company’s achievement of both revenue
targets and operating income targets 1 ,
as described below. In the event that the Company meets only a
revenue target but not an operating income target
1 , or vice versa, then bonuses, if any, will be
available only at the level at which both the revenue target and
operating income target 1 have been met.
1. Chief
Executive Officer and President:
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Percentage
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of
Base
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Performance
Relative To Revenue Target (in accordance with the Company’s internal
operating plan)
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Operating
Income Target (in accordance with the Company’s internal
operating plan)
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Salary
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< 95% of revenue target
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N/A
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>95% of
revenue target and <100% of revenue target
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> operating income target for >95% of revenue
target and <100% of revenue target
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> 100% of revenue target and <101% of revenue
target
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> operating income target for > 100% of
revenue target and <101% of revenue target
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> 101% of revenue target and <105% of revenue
target
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> operating income target for > 101% of
revenue target and <105% of revenue target
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> 105% of revenue target and <110% of revenue
target
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> operating income target for > 105% of
revenue target and <110% of revenue target
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> 110% of revenue target and <115% of revenue
target
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> operating income target for > 110% of
revenue target and <115% of revenue target
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> 115% of revenue target
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> operating income target for > 115% of
revenue target
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2. Chief
Financial Officer and Chief Technology Officer
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Percentage
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of
Base
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Performance
Relative
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