2006 Cash Bonus Arrangement for Named Executive Officers
This agreement outlines the 2006 cash bonus plan for the company's named executive officers. Each executive is eligible for a bonus based on a percentage of their base salary, with the CEO eligible for up to 120% and the CFO up to 100%. Two-thirds of the bonus depends on the company's earnings per share, while one-third is based on individual performance as determined by the Compensation Committee. The final bonus amount may be adjusted depending on how the company's earnings compare to set targets.
Exhibit 10.2
Description of Cash Bonus Arrangement for Named Executive Officers
· Each named executive will be entitled to receive a cash bonus for 2006 equal to a target percentage of that executive’s base salary.
· The maximum bonus for our chief executive officer will be 120% of his base salary.
· The maximum bonus for our chief financial officer will be 100% of his base salary.
· Two thirds of the bonus will be based upon the Company’s overall performance, as measured by the Company’s fully diluted earnings per share for fiscal year 2006.
· One third of the bonus will be based upon each executive’s individual performance, as measured by factors the Compensation Committee may deem appropriate.
· The overall target percentage may also be adjusted (reduced or increased) based upon the Company’s actual fully diluted earnings per share relative to certain specified targets.
