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<p style="margin: 0pt; text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>UNITED STATES<br>
<font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">SECURITIES AND EXCHANGE COMMISSION</font></b><br>
<font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>Washington, D.C. 20549</b></font></p>

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<p style="margin: 0pt; text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>FORM 8-K</b></p>

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<p style="margin: 0pt; text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>CURRENT REPORT<br>
<font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">Pursuant to Section 13 or 15(d) of the<br>
Securities Exchange Act of 1934</font></b></p>

<p style="margin: 0pt; text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>&nbsp;</b></p>

<p style="margin: 0pt; text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">Date of report (Date of earliest event reported): <font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">March 15, 2018</font></p>

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<p style="margin: 0pt; text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>DSP GROUP, INC.</b><br>
<font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">(Exact Name of Registrant as Specified in Its Charter)</font></p>

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<p style="margin: 0pt; text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>Delaware</b><br>
<font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">(State or Other Jurisdiction of Incorporation)</font></p>

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			<p style="margin: 0pt; text-align: center; font-family: &quot;Times New Roman&quot;, Times, Serif; font-size: 10pt;"><b>1-35256</b><br>
			(Commission File Number)</p>
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			<p style="margin: 0pt; text-align: center; font-family: &quot;Times New Roman&quot;, Times, Serif; font-size: 10pt;"><b>94-2683643</b><br>
			(I.R.S. Employer Identification No.)</p>
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			<p style="margin: 0pt; text-align: center; font-family: &quot;Times New Roman&quot;, Times, Serif; font-size: 10pt;"><b>5 Shenkar Street, Herzelia </b><br>
			(Address of Principal Executive Offices)</p>
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			<p style="margin: 0pt; text-align: center; font-family: &quot;Times New Roman&quot;, Times, Serif; font-size: 10pt;"><b>4672505 Israel</b><br>
			(Zip Code)</p>
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<p style="margin: 0pt; text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>972-9-952-9696</b><br>
<font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">(Registrant&rsquo;s Telephone Number, Including Area Code)</font></p>

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<p style="margin: 0pt; text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">With a copy to:<br>
<font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">Jaclyn Liu, Esq.<br>
Morrison&nbsp;&amp; Foerster&nbsp;</font><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; font-variant: small-caps;">llp</font><br>
<font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">425 Market Street<br>
San Francisco, CA 94105</font></p>

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<p style="margin: 0pt; text-align: justify; text-indent: 18pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<i>see </i>General Instruction A.2. below):</font></p>

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<p style="margin: 0pt; text-align: justify; text-indent: 18pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#9744;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>

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<p style="margin: 0pt; text-align: justify; text-indent: 18pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#9744;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>

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<p style="margin: 0pt 0pt 0pt 36pt; text-align: justify; text-indent: -18pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#9744;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p>

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<p style="margin: 0pt 0pt 0pt 36pt; text-align: justify; text-indent: -18pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#9744;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;">Emerging growth company <font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#9744;</font></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. <font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&#9744;</font></p>

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<p style="margin: 0pt; text-align: left; text-transform: uppercase; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>ITEM 5.02</b><font style="text-transform: uppercase; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>. </b><b> </b></font><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS</b><font style="text-transform: uppercase; font-family: Times New Roman;"><b> </b></font></font></p>

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<p style="margin: 0pt; text-align: left; text-indent: 36pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">On <font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">March 15, 2018, the Compensation Committee (the &ldquo;Committee&rdquo;) of the Board of Directors (the &ldquo;Board&rdquo;) of DSP Group, Inc. (the &ldquo;Company&rdquo;) approved a 2018 Performance-Based Bonus Plan applicable for the Chief Executive Officer and Chief Financial Officer of the Company (individually, a &ldquo;Plan&rdquo; and collectively, the &ldquo;Plans&rdquo;). Each of the Plans is effective as of January 1, 2018. </font></p>

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<p style="margin: 0pt; text-align: left; text-indent: 36pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">T<font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">he following is a description of the Plans provided pursuant to Paragraph&nbsp;10(iii) to Item&nbsp;601 of Regulation&nbsp;S-K, which requires a written description of a compensatory plan when there is no formal document containing the compensation information. </font></p>

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<p style="margin: 0pt; text-align: left; text-indent: 36pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">Pursuant to the Plans, the payment of bonuses is <font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">based upon the Company&rsquo;s achievement of four separate components, three of which are based on business objectives and one is at the discretion of the Committee. Each component has a specified weighting and such weighting differs among the Plans; provided that the discretionary component is weighted 20% in each of the Plans. No bonus would be payable based on the achievement of the business objective components if the Company&rsquo;s 2018 earnings before interest, taxes, depreciation and amortization (&ldquo;EBITDA&rdquo;), excluding any restricting and non-recurring charges to be determined by the Committee, are less than a specified amount set forth in the Plans as determined by the Committee; provided the discretionary component remains at the Committee&rsquo;s discretion. </font></p>

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<p style="margin: 0pt; text-align: left; text-indent: 36pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">The <font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">cap for the bonus payout under the Plan for the Chief Financial Officer is 1.0x of his annual base salary and the cap for the Chief Executive Officer under the Plan is 2.0x of his annual base salary. </font></p>

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<p style="margin: 0pt; text-align: left; text-indent: 36pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">Other than under the circumstances whereby there is a change of control transaction involving the Company, or termination of employment under specified circumstances as set forth in the employment agreement, p<font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">ayment of bonuses (if any) under the Plans is to be made in the following year. Any such bonuses would be paid in cash in a single lump sum, subject to payroll taxes and tax withholdings. </font></p>

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<p style="margin: 0pt; text-align: left; text-indent: 36pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">I<font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">n the event of termination of employment of</font><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"> the Chief Executive Officer or Chief Financial Officer during 2018 by (i) either one of them (X) after complying with the advance notice provision in his respective employment agreement, or (Y) for good reason (as defined in his respective employment agreement), or (ii) the Company without cause (as defined in his respective employment agreement), the bonus </font><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">under their respective Plan would be determined on the following basis: (a) all numbers under the &ldquo;Target&rdquo; column of the Plan would be reduced by a percentage equal to the percent of the year remaining after the date of termination of employment, (b) all non-numerical requirements under the &ldquo;Target&rdquo; column of the Plan would remain unchanged, (c) the 1.0 and 2.0 multiplier under the &ldquo;Target&rdquo; column of the Plan would be multiplied by their respective annual base salary for the part of the year prior to the date of termination of employment, and (d) </font><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">the maximum bonus payable under the discretionary bonus component would be 40% and 24% of the annual base salary of the Chief Executive Officer and Chief Financial Officer, respectively, for the part of the year prior to the date of termination of employment.</font></p>

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<p style="margin: 0pt; text-align: left; text-indent: 36pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">The following is a <font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">more detailed description of the Plans as applicable to the Company&rsquo;s Chief Executive Officer and Chief Financial Officer. </font></p>

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<p style="margin: 0pt; text-align: left; text-indent: 36pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><i>Chief Executive Officer</i></p>

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			<p style="margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;"><b>Weight</b></p>
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			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-bottom-width: 1px; border-left-width: 1px; border-bottom-style: solid; border-left-style: solid;">&nbsp;</td>
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			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;"><b>Objective</b></p>
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			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;">&nbsp;</td>
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			<td style="width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;"><b>Target</b></p>
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			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-bottom-width: 1px; border-left-width: 1px; border-bottom-style: solid; border-left-style: solid;">&nbsp;</td>
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			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;"><b>Payout</b></p>
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			<td style="width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">
			<p style="margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Specified Weighting</p>
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			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-left-color: rgb(0, 0, 0); border-left-width: 1px; border-left-style: solid;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Revenues</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;&#9679;</td>
			<td style="width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">0 if actual revenue is less than or equal to&nbsp;90% of the agreed amount based on the Company&rsquo;s 2018 budget approved by the Board (the &ldquo;Revenue Target&rdquo;)</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-left-color: rgb(0, 0, 0); border-left-width: 1px; border-left-style: solid;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Payout is linear between points</p>
			</td>
		</tr>
		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">
			<td style="border-image: none; width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="border-image: none; width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-left-color: rgb(0, 0, 0); border-left-width: 1px; border-left-style: solid;">&nbsp;</td>
			<td style="border-image: none; width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="border-image: none; width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
			<td style="border-image: none; width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;&#9679;</td>
			<td style="border-image: none; width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">1.0 if actual revenue&nbsp;is equal to 100% of the Revenue Target</td>
			<td style="border-image: none; width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="border-image: none; width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-left-color: rgb(0, 0, 0); border-left-width: 1px; border-left-style: solid;">&nbsp;</td>
			<td style="border-image: none; width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
		</tr>
		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">
			<td style="width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-bottom-width: 1px; border-left-width: 1px; border-bottom-style: solid; border-left-style: solid;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;&#9679;</td>
			<td style="width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">2.0 if actual revenue is equal to or greater than 110% of the Revenue Target</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-bottom-width: 1px; border-left-width: 1px; border-bottom-style: solid; border-left-style: solid;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
		</tr>
		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">
			<td style="width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">
			<p style="margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Specified Weighting</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-left-color: rgb(0, 0, 0); border-left-width: 1px; border-left-style: solid;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Non-cordless Revenues</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;&#9679;</td>
			<td style="width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">0 if non-cordless revenues is less than an agreed amount determined by the Committee</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-left-color: rgb(0, 0, 0); border-left-width: 1px; border-left-style: solid;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Payout is linear between points</p>
			</td>
		</tr>
		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">
			<td style="width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-left-color: rgb(0, 0, 0); border-left-width: 1px; border-left-style: solid;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;&#9679;</td>
			<td style="width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">1.0 if non-cordless revenues is equal to an agreed amount determined by the Committee</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-left-color: rgb(0, 0, 0); border-left-width: 1px; border-left-style: solid;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
		</tr>
		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">
			<td style="width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-bottom-width: 1px; border-left-width: 1px; border-bottom-style: solid; border-left-style: solid;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;&#9679;</td>
			<td style="width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">2.0 if non-cordless revenues is equal to or greater than an agreed amount determined by the Committee</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-bottom-width: 1px; border-left-width: 1px; border-bottom-style: solid; border-left-style: solid;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
		</tr>
		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">
			<td style="width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">
			<p style="margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Specified Weighting</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-left-color: rgb(0, 0, 0); border-left-width: 1px; border-left-style: solid;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">EBITDA (excluding restricting and other non-recurring charges)</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;&#9679;</td>
			<td style="width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">0 if EBITDA is&nbsp;less than an agreed amount determined by the Committee</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-left-color: rgb(0, 0, 0); border-left-width: 1px; border-left-style: solid;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Payout is linear between points</p>
			</td>
		</tr>
		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">
			<td style="width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-left-color: rgb(0, 0, 0); border-left-width: 1px; border-left-style: solid;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;&#9679;</td>
			<td style="width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">1.0 if EBITDA is equal to or greater than an agreed amount determined by the Committee</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-left-color: rgb(0, 0, 0); border-left-width: 1px; border-left-style: solid;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
		</tr>
		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">
			<td style="width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-bottom-width: 1px; border-left-width: 1px; border-bottom-style: solid; border-left-style: solid;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;&#9679;</td>
			<td style="width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">2.0 if EBITDA is equal to or greater than an agreed amount determined by the Committee</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-bottom-width: 1px; border-left-width: 1px; border-bottom-style: solid; border-left-style: solid;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
		</tr>
		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">
			<td style="width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">
			<p style="margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">20%</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-bottom-width: 1px; border-left-width: 1px; border-bottom-style: solid; border-left-style: solid;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Committee Discretion</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;">&nbsp;</td>
			<td colspan="2" rowspan="1" style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Committee will apply its discretion based primarily on its evaluation of how management has performed in positioning the Company for future success and stockholder value enhancement. The maximum total discretionary bonus is 40% of annual salary.</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-bottom-width: 1px; border-left-width: 1px; border-bottom-style: solid; border-left-style: solid;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Payable at the sole discretion of the Committee</p>
			</td>
		</tr>

</table>

<p style="margin: 0pt; text-align: left; text-indent: 36pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><i>&nbsp;</i></p>

<div id="PGBK" style="width: 100%; margin-right: 0pt; margin-left: 0pt;">
<div id="PGNUM" style="width: 100%; text-align: center; font-family: &quot;Times New Roman&quot;, Times, Serif; font-size: 10pt;">3</div>

<hr style="border: currentColor; border-image: none; width: 100%; height: 2px; color: rgb(0, 0, 0); page-break-after: always; background-color: rgb(0, 0, 0);">
<div id="PGHDR" style="width: 100%; text-align: left;">&nbsp;</div>
</div>

<p style="margin: 0pt; text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</p>

<p style="margin: 0pt; text-align: left; text-indent: 36pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><i>Chief Financial Officer </i></p>

<p style="margin: 0pt; text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" style="margin: 0pt; width: 100%; text-indent: 0px; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">

		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">
			<td style="border: 1px solid rgb(0, 0, 0); border-image: none; width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">
			<p style="margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;"><b>Weight</b></p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;"><b>Objective</b></p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-top-color: rgb(0, 0, 0); border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-right-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-right-style: solid; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;"><b>Target</b></p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-top-color: rgb(0, 0, 0); border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-right-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-right-style: solid; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-top-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-top-color: rgb(0, 0, 0); border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-top-width: 1px; border-right-width: 1px; border-bottom-width: 1px; border-top-style: solid; border-right-style: solid; border-bottom-style: solid;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;"><b>Payout</b></p>
			</td>
		</tr>
		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">
			<td style="width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-left-width: 1px; border-right-style: solid; border-left-style: solid;">
			<p style="margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Specified Weighting</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Revenues</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;&#9679;</td>
			<td style="width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">0 if actual revenue is less than or equal to 90% of the Revenue Target</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Payout is linear between points</p>
			</td>
		</tr>
		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">
			<td style="width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-left-width: 1px; border-right-style: solid; border-left-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;&#9679;</td>
			<td style="width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">0.6 if actual revenue is equal to 100% of the Revenue Target</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
		</tr>
		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">
			<td style="width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-left-width: 1px; border-right-style: solid; border-bottom-style: solid; border-left-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;&#9679;</td>
			<td style="width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">1.2 if actual revenue is equal to or greater than 110% of the Revenue Target</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;">&nbsp;</td>
		</tr>
		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">
			<td style="width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-left-width: 1px; border-right-style: solid; border-left-style: solid;">
			<p style="margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Specified Weighting</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Non-cordless Revenues</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;&#9679;</td>
			<td style="width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">0 if non-cordless revenues is less than an agreed amount determined by the Committee</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Payout is linear between points.</p>
			</td>
		</tr>
		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">
			<td style="width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-left-width: 1px; border-right-style: solid; border-left-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;&#9679;</td>
			<td style="width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">0.6 if non-cordless revenues is equal to an agreed amount determined by the Committee</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
		</tr>
		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">
			<td style="width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-left-width: 1px; border-right-style: solid; border-bottom-style: solid; border-left-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;&#9679;</td>
			<td style="width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">1.2 if non-cordless revenues is equal to or greater than an agreed amount determined by the Committee</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;">&nbsp;</td>
		</tr>
		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">
			<td style="width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-left-width: 1px; border-right-style: solid; border-left-style: solid;">
			<p style="margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Specified Weighting</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">EBITDA (excluding restricting and other non-recurring charges)</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;&#9679;</td>
			<td style="width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">0 if EBITDA is less than an agreed amount determined by the Committee</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Payout is linear between points</p>
			</td>
		</tr>
		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">
			<td style="width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-left-width: 1px; border-right-style: solid; border-left-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;&#9679;</td>
			<td style="width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">0.6 if EBITDA is equal to or greater than an agreed amount determined by the Committee</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-right-width: 1px; border-right-style: solid;">&nbsp;</td>
		</tr>
		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">
			<td style="width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-left-width: 1px; border-right-style: solid; border-bottom-style: solid; border-left-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;&#9679;</td>
			<td style="width: 40%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">1.2 if EBITDA is equal to or greater than an agreed amount determined by the Committee</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;">&nbsp;</td>
		</tr>
		<tr style="font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">
			<td style="width: 12%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-left-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-left-width: 1px; border-right-style: solid; border-bottom-style: solid; border-left-style: solid;">
			<p style="margin: 0pt 0pt 0pt 9pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">20%</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 25%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Committee Discretion</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;">&nbsp;</td>
			<td colspan="2" rowspan="1" style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Committee will apply its discretion based primarily on its evaluation of how management has performed in positioning the Company for future success and stockholder value enhancement. The maximum total discretionary bonus is 24% of annual salary.</p>
			</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 1%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;">&nbsp;</td>
			<td style="width: 18%; font-family: 'Times New Roman', Times, Serif; font-size: 10pt; vertical-align: top; border-right-color: rgb(0, 0, 0); border-bottom-color: rgb(0, 0, 0); border-right-width: 1px; border-bottom-width: 1px; border-right-style: solid; border-bottom-style: solid;">
			<p style="margin: 0pt; text-align: left; font-family: 'Times New Roman', Times, Serif; font-size: 10pt;">Payable at the sole discretion of the Committee</p>
			</td>
		</tr>

</table>

<p style="margin: 0pt; text-align: left; text-indent: 36pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>&nbsp;</b></p>

<p style="margin: 0pt; text-align: left; text-indent: 36pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">Due to their strategic significance, the Company believes that the disclosure of the <font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">2018 Revenue Target, minimum revenue thresholds for non-cordless revenues and EBITDA targets would cause future competitive harm to the Company and therefore are not disclosed. In addition, the Company believes the disclosure of the weightings that apply to the three business objective components within each Plan would cause future competitive harm since the weightings indicate the priority the Company places on its business initiatives and therefore are not disclosed.</font></p>

<p style="margin: 0pt; text-align: left; text-indent: 36pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</p>

<div id="PGBK" style="width: 100%; margin-right: 0pt; margin-left: 0pt;">
<div id="PGNUM" style="width: 100%; text-align: center; font-family: &quot;Times New Roman&quot;, Times, Serif; font-size: 10pt;">4</div>

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<div id="PGHDR" style="width: 100%; text-align: left;">&nbsp;</div>
</div>

<p style="margin: 0pt; text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</p>

<p style="margin: 0pt; text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>SIGNATURES</b></p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="margin: 0pt; text-align: left; text-indent: 54pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="margin: 0pt; text-align: left; text-indent: 54pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">

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			<td valign="top" width="50%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</font></p>
			</td>
			<td colspan="2" valign="top" width="38%">
			<p style="margin-top: 0px; margin-bottom: 0px;">DSP GROUP, INC.</p>
			</td>
			<td valign="top" width="12%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</font></p>
			</td>
		</tr>
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			<td valign="top" width="50%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</font></p>
			</td>
			<td valign="top" width="3%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</font></p>
			</td>
			<td valign="top" width="35%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</font></p>
			</td>
			<td valign="top" width="12%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</font></p>
			</td>
		</tr>
		<tr>
			<td valign="top" width="50%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</font></p>
			</td>
			<td valign="top" width="3%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</font></p>
			</td>
			<td align="left" nowrap="nowrap" valign="bottom" width="35%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</font></p>
			</td>
			<td valign="top" width="12%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</font></p>
			</td>
		</tr>
		<tr>
			<td align="left" style="text-align: left;" valign="top" width="50%">
			<p style="margin-top: 0px; margin-bottom: 0px;">Date:<font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;March 16, 2018&nbsp;</font></p>
			</td>
			<td style="text-align: left;" valign="top" width="3%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">By: </font></p>
			</td>
			<td align="left" nowrap="nowrap" style="border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;" valign="top" width="35%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">/s/&nbsp;</font>Dror Levy</p>
			</td>
			<td valign="top" width="12%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</font></p>
			</td>
		</tr>
		<tr>
			<td valign="top" width="50%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</font></p>
			</td>
			<td valign="top" width="3%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</font></p>
			</td>
			<td valign="top" width="35%">
			<p style="margin-top: 0px; margin-bottom: 0px;">Dror Levy</p>
			</td>
			<td valign="top" width="12%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</font></p>
			</td>
		</tr>
		<tr>
			<td valign="top" width="50%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</font></p>
			</td>
			<td valign="top" width="3%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</font></p>
			</td>
			<td valign="top" width="35%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">Chief Financial Officer<br>
			and Secretary</font></p>
			</td>
			<td valign="top" width="12%">
			<p style="margin-top: 0px; margin-bottom: 0px;"><font style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</font></p>
			</td>
		</tr>

</table>

<p style="margin: 0pt; text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</p>

<p style="margin: 0pt; text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">5</p>
</body>
</html>
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dspg20180315_8k.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported):
March 15, 2018
DSP GROUP, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
1-35256
(Commission File Number)
94-2683643
(I.R.S. Employer Identification No.)
5 Shenkar Street, Herzelia
(Address of Principal Executive Offices)
4672505 Israel
(Zip Code)
972-9-952-9696
(Registrant's Telephone Number, Including Area Code)
With a copy to:
Jaclyn Liu, Esq.
Morrison & Foerster
llp
425 Market Street
San Francisco, CA 94105
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (
see
General Instruction A.2. below):
☐     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
ITEM 5.02
.
DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS
On
March 15, 2018, the Compensation Committee (the "Committee") of the Board of Directors (the "Board") of DSP Group, Inc. (the "Company") approved a 2018 Performance-Based Bonus Plan applicable for the Chief Executive Officer and Chief Financial Officer of the Company (individually, a "Plan" and collectively, the "Plans"). Each of the Plans is effective as of January 1, 2018.
T
he following is a description of the Plans provided pursuant to Paragraph 10(iii) to Item 601 of Regulation S-K, which requires a written description of a compensatory plan when there is no formal document containing the compensation information.
Pursuant to the Plans, the payment of bonuses is
based upon the Company's achievement of four separate components, three of which are based on business objectives and one is at the discretion of the Committee. Each component has a specified weighting and such weighting differs among the Plans; provided that the discretionary component is weighted 20% in each of the Plans. No bonus would be payable based on the achievement of the business objective components if the Company's 2018 earnings before interest, taxes, depreciation and amortization ("EBITDA"), excluding any restricting and non-recurring charges to be determined by the Committee, are less than a specified amount set forth in the Plans as determined by the Committee; provided the discretionary component remains at the Committee's discretion.
The
cap for the bonus payout under the Plan for the Chief Financial Officer is 1.0x of his annual base salary and the cap for the Chief Executive Officer under the Plan is 2.0x of his annual base salary.
Other than under the circumstances whereby there is a change of control transaction involving the Company, or termination of employment under specified circumstances as set forth in the employment agreement, p
ayment of bonuses (if any) under the Plans is to be made in the following year. Any such bonuses would be paid in cash in a single lump sum, subject to payroll taxes and tax withholdings.
I
n the event of termination of employment of
the Chief Executive Officer or Chief Financial Officer during 2018 by (i) either one of them (X) after complying with the advance notice provision in his respective employment agreement, or (Y) for good reason (as defined in his respective employment agreement), or (ii) the Company without cause (as defined in his respective employment agreement), the bonus
under their respective Plan would be determined on the following basis: (a) all numbers under the "Target" column of the Plan would be reduced by a percentage equal to the percent of the year remaining after the date of termination of employment, (b) all non-numerical requirements under the "Target" column of the Plan would remain unchanged, (c) the 1.0 and 2.0 multiplier under the "Target" column of the Plan would be multiplied by their respective annual base salary for the part of the year prior to the date of termination of employment, and (d)
the maximum bonus payable under the discretionary bonus component would be 40% and 24% of the annual base salary of the Chief Executive Officer and Chief Financial Officer, respectively, for the part of the year prior to the date of termination of employment.
2
The following is a
more detailed description of the Plans as applicable to the Company's Chief Executive Officer and Chief Financial Officer.
Chief Executive Officer
Weight
Objective
Target
Payout
Specified Weighting
Revenues
●
0 if actual revenue is less than or equal to 90% of the agreed amount based on the Company's 2018 budget approved by the Board (the "Revenue Target")
Payout is linear between points
●
1.0 if actual revenue is equal to 100% of the Revenue Target
●
2.0 if actual revenue is equal to or greater than 110% of the Revenue Target
Specified Weighting
Non-cordless Revenues
●
0 if non-cordless revenues is less than an agreed amount determined by the Committee
Payout is linear between points
●
1.0 if non-cordless revenues is equal to an agreed amount determined by the Committee
●
2.0 if non-cordless revenues is equal to or greater than an agreed amount determined by the Committee
Specified Weighting
EBITDA (excluding restricting and other non-recurring charges)
●
0 if EBITDA is less than an agreed amount determined by the Committee
Payout is linear between points
●
1.0 if EBITDA is equal to or greater than an agreed amount determined by the Committee
●
2.0 if EBITDA is equal to or greater than an agreed amount determined by the Committee
20%
Committee Discretion
Committee will apply its discretion based primarily on its evaluation of how management has performed in positioning the Company for future success and stockholder value enhancement. The maximum total discretionary bonus is 40% of annual salary.
Payable at the sole discretion of the Committee
3
Chief Financial Officer
Weight
Objective
Target
Payout
Specified Weighting
Revenues
●
0 if actual revenue is less than or equal to 90% of the Revenue Target
Payout is linear between points
●
0.6 if actual revenue is equal to 100% of the Revenue Target
●
1.2 if actual revenue is equal to or greater than 110% of the Revenue Target
Specified Weighting
Non-cordless Revenues
●
0 if non-cordless revenues is less than an agreed amount determined by the Committee
Payout is linear between points.
●
0.6 if non-cordless revenues is equal to an agreed amount determined by the Committee
●
1.2 if non-cordless revenues is equal to or greater than an agreed amount determined by the Committee
Specified Weighting
EBITDA (excluding restricting and other non-recurring charges)
●
0 if EBITDA is less than an agreed amount determined by the Committee
Payout is linear between points
●
0.6 if EBITDA is equal to or greater than an agreed amount determined by the Committee
●
1.2 if EBITDA is equal to or greater than an agreed amount determined by the Committee
20%
Committee Discretion
Committee will apply its discretion based primarily on its evaluation of how management has performed in positioning the Company for future success and stockholder value enhancement. The maximum total discretionary bonus is 24% of annual salary.
Payable at the sole discretion of the Committee
Due to their strategic significance, the Company believes that the disclosure of the
2018 Revenue Target, minimum revenue thresholds for non-cordless revenues and EBITDA targets would cause future competitive harm to the Company and therefore are not disclosed. In addition, the Company believes the disclosure of the weightings that apply to the three business objective components within each Plan would cause future competitive harm since the weightings indicate the priority the Company places on its business initiatives and therefore are not disclosed.
4
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
DSP GROUP, INC.
Date:
March 16, 2018
By:
/s/
Dror Levy
Dror Levy
Chief Financial Officer
and Secretary
5