Exhibit 10
Information Regarding Fiscal 2008 Executive Incentive Performance Plan
Under the Executive Incentive Performance Plan for the fiscal 2008 performance period (the 2008
EIP), each participating officers base fiscal 2008 incentive bonus is comprised of shares of
performance-based restricted stock, the restrictions on which will lapse based on achievement of
the performance metrics described below. The restrictions on the shares will lapse on the later of
the date on which the Compensation Committee determines the extent to which the performance metrics
have been achieved and November 9, 2008. Mr. Harrison, the Chief Executive Officer, is also
eligible to receive a cash bonus of up to $570,000 for operating margin performance above the
Target Performance Metrics (defined below). The other participating officers are eligible to
receive a discretionary cash bonus if performance is achieved above the Target Performance Metrics.
Performance Metrics
The restrictions on the shares of restricted stock are eligible to lapse only if PTC achieves $995
million in revenue and non-GAAP operating margin dollars of $184 million in fiscal 2008 (the
Threshold Performance Metrics). If the Threshold Performance Metrics are achieved, the
restrictions on 40% of each participating officers shares of restricted stock will lapse. If the
Threshold Performance Metrics are not achieved, all shares granted under the 2008 EIP will be
forfeited.
The restrictions on up to an additional 20% of a participants shares of restricted stock will
lapse to the extent PTC achieves revenue between $995 million and $1,060 million (the Revenue
Target) and the restrictions on up to the other 40% of a participants shares of restricted stock
will lapse to the extent PTC achieves non-GAAP operating margin dollars between $184 million and
$236 million (the Margin Target and together with the Revenue Target, the Target Performance
Metrics). In each case, the portion of the additional percentage of the shares of restricted
stock with respect to which the restrictions will lapse increases proportionately based on PTCs
achievement of the Revenue Target or the Margin Target, as applicable, with the restrictions on an
additional 20% of the shares of restricted stock lapsing if PTC achieves the Revenue Target and the
restrictions on an additional 40% of shares of restricted stock lapsing if PTC achieves the Margin
Target.
Participating Officers
The executive officers designated to participate in the 2008 EIP and the number of shares of
restricted stock granted to each officer under the 2008 EIP are set forth below.
| |
|
|
| Executive Officer |
|
Number of Shares of Restricted Stock Granted |
|
|
|
C. Richard Harrison
|
|
37,675 |
Cornelius F. Moses, III
|
|
16,147 |
Barry Cohen
|
|
16,147 |
Paul Cunningham
|
|
16,147 |
Anthony DiBona
|
|
12,110 |
James Heppelmann
|
|
16,147 |
Aaron C. von Staats
|
|
9,419 |
Mr. Harrisons Additional Incentive
Mr. Harrison is eligible to receive a cash incentive of up to $570,000 based on the extent to which
PTC achieves non-GAAP operating margin dollars between $236 million and $242 million, as determined
by the Compensation Committee.