FORM OF 2002 VERITAS VP PERFORMANCE-BASED
EMPLOYEE INCENTIVE BONUS PLAN (EIBP)
ELIGIBILITY:
- VP and above employees not on EPS or revenue-based plans are eligible to
participate in the EIBP Plan.
- Actual receipt of performance-based bonus requires being employed by VERITAS
on date of payment.
PLAN OVERVIEW:
- Bonuses are performance-based and will be paid on a semi annual basis. The
pool will be determined based upon a target percentage of the semi annual base
salary for all participants in the plan. The target bonus has been established
at 25% of annual base salary.
- The EIBP Plan pool is based upon VERITAS proforma operating profit performance
as follows:
<TABLE>
<CAPTION>
Performance % of EIBP pool
----------- --------------
<S> <C>
<90% 50%
90% 90%
100% 100%
110% 125%
120% 200%
>120% 200%
</TABLE>
- Any intermediate achievement between levels will earn a proportional
amount (for example, earnings of 105% would earn 112.5%).
- Employees who join VERITAS (or are promoted to a bonus eligible
position) during the six month period will be eligible for a pro-rated
bonus, provided their hire date or promotion date is no less than one
month from the end of the semi annual period.
- Example: A Division Executive has four eligible employees. If
100% of the profit target were achieved, the pool funds at 25%
of the eligible salaries of the employees. The Executive has
the discretion to allocate to the eligible employees based
upon individual performance and contribution to the
organization. Where the Executive chooses to award above
target bonuses, the pool is reduced for the remaining eligible
employees. In this way, the bonus program closely resembles
the merit increase and annual stock programs. If operating
profit achievement exceeds 100%, the bonus pool will increase.
Conversely, if operating profit achievement is lower than
expected, the bonus pool will decrease.
- The Company's CEO and/or board of directors, at his/its sole
discretion, may, for reasonable cause, modify or change this Plan or
its implementation at any time.
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