AMERICAN MEDIA, INC. EBITDA INCENTIVE PLAN
Exhibit 10.26
AMERICAN MEDIA, INC.
EBITDA INCENTIVE PLAN
FY 2008
Michael Porche
| I. | General |
| A. | Only employees of American Media, Inc. (the “Company”) or its subsidiaries who are selected by the Chairman/CEO (the “Administrator”) shall be eligible to participate in the Plan. |
| B. | The plan year shall be the Company’s fiscal year. |
| II. | Target Incentive |
Each participant will have an individualized determined salary base and target incentive that is keyed to achieving the EBITDA target of the DSI’s.
| III. | Payout for Achieving Profit Target |
| A. | Achieving 100% of DSI’s EBITDA target will earn 100% of target incentive. |
| B. | If applicable, achieving more than 100% of EBITDA target will earn the percentage of the target incentive specified on the participant’s Statement. |
| C. | Achieving less than 100% of the applicable target will earn a reduced amount of the target incentive calculated as follows: If actual EBITDA is between 95% and 100% of targeted EBITDA a payment of 95% of target incentive will be made. No incentive payment will be made if less than 95% of the applicable target is achieved. |
| IV. | Calculating EBITDA |
| A. | EBITDA as used in this Plan shall be based on the attached (Attachment “B”) Income Statement for FY07 (in accordance with the Company’s accounting practices and polices and GAAP. |
| V. | Administration |
| A. | Payment will be made once per year, approximately 90 days after the Fiscal Year Close. |
| B. | Participants must be on payroll as of the last day of the Company’s fiscal year to be eligible for payment of that year’s incentive. |
| C. | Participation in this Plan does not constitute any form of guarantee of employment. |
| *** | Selected confidential information has been omitted from this Exhibit 10.26 pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. |
American Media, Inc.
EBITDA Incentive Plan
Fiscal 2008
| American Media, Inc. | ||||
| Name: | Michael Porche | |||
| EBITDA Target | DSI | $ | *** | ||||
| Total | $ | *** | |||||
| Target Incentive | At 100% of EBITDA Target | $ | 87,500.00 |
Revenue is based on the ON SALE revenue recognition policy.
EBITDA Less than Applicable EBITDA Target:
If actual EBITDA is between 95% - 100% of the EBITDA target, Executive will receive 95% of the target incentive. No payment will be made under this plan if Actual EBITDA is less than 95% of the total Targeted EBITDA.
| /s/ Daniel Rotstein | /s/ Michael Porche | 9/5/07 | ||||
| Daniel Rotstein | Michael Porche |
| *** | Confidential information omitted pursuant to a request for confidential treatment filed separately with the Securities and Exchange Commission. |
American Media, Inc.
EBITDA Incentive Plan
Fiscal 2008 - Worse Than Target
| Name: | Michael Porche | |||||
| TARGET INCENTIVE | $ 87,500 |
| Example #1 | Profits at 95% of EBITDA Target or | $ | *** | ||
| TARGET INCENTIVE | @ 95% | $ | 83,125 | ||
| Example #2 | Profits below 95% of EBITDA Target or | $ | *** | ||
| TARGET INCENTIVE | @ 0% | $ | — | ||
| *** | Confidential information omitted pursuant to a request for confidential treatment filed separately with the Securities and Exchange Commission. |
Attachment “B”
AMERICAN MEDIA OPERATIONS, INC.
DISTRIBUTION SERVICES
2007 FULL YEAR
INCOME STATEMENT
This entire chart has been omitted pursuant to a request for confidential treatment filed separately with the Securities and Exchange Commission.
