On March 19, 2008, the Board of Directors of National Instruments Corporation (the "Company") adopted and approved the performance criteria and associated potential award for the fiscal year ended December 31, 2008 for the Company's named executive officers who participate in the Annual Incentive Program ("AIP"), which is filed as Exhibit 10.1 filed to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on June 27, 2006. The AIP provides for the payment of cash bonuses to the Company's officers (including named executive officers but excluding the Company's President), Business and Technology Fellows, and Research and Development Fellows based upon the attainment of certain performance criteria established by the Board of Directors and the Company's President. The AIP is intended to increase shareholder value and the success of the Company by providing incentive and reward for accomplishment of certain objectives for key executives and certain significant employees. The incentive cash bonuses awarded under this program are calculated by the Compensation Committee of the Board of Directors ("Compensation Committee") based upon the objectives set for each participant with a maximum of 30% of the participant's salary (or, in the case of the Senior Vice President of Sales, salary plus targeted commission) for Senior Vice Presidents and a maximum 20% of the participant's salary for Vice Presidents, Business and Technology Fellows, and Research and Development Fellows. At the end of the calendar year, the Compensation Committee and the Company's President will determine whether the objectives of each individual participant were met and thereafter will determine the amount of the payment (if any) to be made to each participant under the plan based on the achievement of such objectives and the discretion of the Company's President and the Compensation Committee.
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