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Executive Officer Bonus Plan
The objectives of the Aruba Networks, Inc. (the “Company”) Executive Officer Bonus Plan (the “Plan”) are:
Performance Period . The Plan is based on achieving defined objectives established for two consecutive fiscal quarters. A new and separate Plan performance period begins on the first day of the first and third quarter and ends on the last day of second and fourth quarter, respectively.
Performance Targets . As described further below, a bonus pool, in an amount to be determined by the Board of Directors of the Company (the “Board”), will be funded based upon the extent to which the Company meets or exceeds the Board-approved internal operating plan revenue and profit targets (the “Operating Plan revenue” and “Operating Plan profit”, respectively) set by the Board at the start of the Company’s fiscal year. Beginning with fiscal 2011, the Board may, in its discretion, determine that different performance metrics will be used to fund the bonus pool.
Plan Award . The budget for the Plan award payout will be based on a percentage of the participant’s eligible base pay for the applicable performance period, as further described below. For purposes of the Plan, “base pay” will include only gross base wages or gross base salary, as applicable, and will exclude all other payments including, but not limited to, bonuses, commissions, overtime, and equity compensation.
Any bonus payment under the Plan will be made in the form of a restricted stock unit award (an “Award”) granted under the Company’s 2007 Equity Incentive Plan (the “Equity Plan”) and will be subject to the terms and conditions of the Equity Plan and an Award agreement between the Company and the participant. Each Award will be fully vested on the date of grant, which will be established in accordance with the Company’s Equity Award Grant Policy, subject to the participant’s remaining a Service Provider (as defined in the Equity Plan) through the applicable vesting date.
The number of restricted stock units subject to an Award will be determined based on the dollar value attributable to the participant’s bonus for a given performance period, divided by the closing Company share price on the Award’s date of grant.
The dollar value of a