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Exhibit
10.1
Chief Executive Officer
Bonus Terms for FY08 Under the Section 162(m)
Executive Officer
Performance–Based Bonus Plan
Plan Objective
Sun’s Chief Executive Officer
Bonus Terms for FY08 under its Section 162(m) Executive
Officer Performance-Based Plan (the “Plan”) are
designed to compensate the Chief Executive Officer
(“CEO”) for contributions to Sun during the
Company’s fiscal year 2008. The Plan provides for quarterly
cash compensation based on performance against the Plan
measures.
Plan Year/Performance
Periods
The Plan year is the Company’s
fiscal year 2008. The performance periods are each of the
Company’s four fiscal quarters during that fiscal
year.
Eligibility
These terms apply to the person serving
as Sun’s CEO as of July 1, 2007. In order to receive a
bonus payment with respect to any fiscal quarter, the participant
must be serving as Sun’s CEO as of the last business day of
that fiscal quarter, except as provided below.
A participants who retires, becomes
disabled, or dies during any fiscal quarter may receive a prorated
bonus for the period of time during the fiscal quarter that the
participant provided services to Sun. A participant who leaves Sun
prior to the end of a fiscal quarter for any other reason,
including but not limited to a reduction in force, voluntary
resignation, or termination by Sun will be ineligible for a bonus
payment with respect to that fiscal quarter and any subsequent
fiscal quarter during the Company’s fiscal year
2008.
Bonus Target
Percentage
A Participant’s bonus target
percentage under the Plan is 200% of the participant’s
Eligible Wages for fiscal year 2008, as determined below (the
“Bonus Target”). The Bonus Target is divided between
the four fiscal quarters of fiscal year 2008 as follows (each, a
“Quarterly Bonus Target”):
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Fiscal
Quarter
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Percentage
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Quarterly Bonus
Target
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FY 08 Q1
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10% |
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20% |
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FY 08 Q2
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25% |
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50% |
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FY 08 Q3
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25% |
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50% |
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FY 08 Q4
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40% |
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80% |
For example, for FY08 Q1, the Quarterly
Bonus Target would be 200% multiplied by 10%, or 20% of Eligible
Wages for that quarter.
Payouts under the Plan are capped at
200% of the Bonus Target for fiscal year 2008. (Plan funding is
capped at 200% of the target funding amount.)
Chief Executive Officer
Bonus Terms for FY08 Under the Section 162(m)
Executive Officer
Performance–Based Bonus Plan
Company Performance
Measures
The Plan is based on Company performance
against the following measures (the “Company Performance
Measures”):
| 1. |
Q1 FY08-quarterly Revenue (weighted 50%) and quarterly
Operating Income (weighted 50%); |
| 2. |
Q2 FY08-quarterly Revenue (weighted 50%) and quarterly
Operating Income (weighted 50%); |
| 3. |
Q3 FY08-quarterly Revenue (weighted 50%) and quarterly
Operating Income (weighted 50%); |
| 4. |
Q4 FY08-quarterly Revenue (weighted 50%) and quarterly
Operating Income (weighted 50%); |
Additional funding may be allocated to
the Q4 bonus payments if:
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1. |
Q4 financial performance on Revenue and Operating Income are at
target, and, |
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2. |
Company Annual Strategic Goals are met. |
Company Performance Measure
Definitions
Revenue: For purposes of
calculating the bonus accrual under the Plan, “Revenue”
is defined as net revenue as reported in the Company’s
consolidated operations analysis.
Operating Income: For
purposes of calculating the bonus accrual under the Plan,
“Operating Income” is def
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