UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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 6, 2007
TERAYON COMMUNICATION SYSTEMS, INC.
(Exact Name of Registrant as Specified in its Charter)
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Delaware
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000-24647
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77-0328533 |
(State or Other Jurisdiction
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(Commission
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(IRS Employer |
of Incorporation)
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File Number)
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Identification No.) |
2450 Walsh Avenue
Santa Clara, California 95051
(Address of Principal Executive Offices and Zip Code)
Registrants telephone number, including area code: (408) 235-5500
Not Applicable
(Former Name or Former Address, if Changed Since Last Report.)
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):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)) |
Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
The Compensation Committee of the Board of Directors of Terayon Communication Systems, Inc. (the
Company) on March 6, 2007 approved the Companys 2007 Executive Sales Commission Plan
(the Plan). The Plan is applicable to Matthew Aden, the Companys Senior Vice President,
Worldwide Sales and Support, and, in accordance with its provisions, Mr. Aden is eligible to earn
commission payments based on achieving certain revenue targets. The target commission for Mr. Aden
is equal to 100% of his base salary. No commission will be paid if less than 25% of the revenue
target is achieved. If greater than 25% but less than 50% of the revenue target is achieved, the
commission amount will be 50% of the percentage of the revenue target achieved multiplied by the
year-to-date target commission. If more than 50% of the revenue target is achieved, the commission
will be the percentage of the revenue target achieved multiplied by the year-to-date target
commission. The commission is determined quarterly and paid within sixty days of the last day of
the quarter. In the event Mr. Aden exceeds his annual revenue target, there are additional
accelerators that are applied to commission dollars earned on revenue exceeding 100% of the
year-to-date target, and these amounts are paid at year-end. The Company reserves the right to
modify, revoke, suspend, terminate or change any terms of the Plan at any time, with or without
notice.