Ampex Corporation Incentive Bonus Letter Agreement with Robert L. Atchison (March 15, 2005)
This agreement between Ampex Corporation and Robert L. Atchison outlines an incentive bonus program for the years 2005 and 2006. Atchison is eligible to receive annual bonuses based on Ampex Data Systems' income before taxes, with specific bonus amounts tied to income thresholds. If the company has negative cash flow in a year, that amount will be deducted from the income used to calculate the bonus. The agreement sets clear financial targets and pro-rated payments for results between set thresholds.
Exhibit 10.3
| Ampex Corporation 135 East 57th Street New York, New York 10022 Telephone (212) ###-###-#### |
March 15, 2005
Mr. Robert L. Atchison
Ampex Corporation
1228 Douglas Avenue
Redwood City, CA 94063
Dear Bob,
This letter is to confirm our discussion concerning your incentive program for the years ending Dec. 31, 2005 and 2006.
For each calendar year you will be entitled to receive a bonus calculated as follows:
| Ampex Data Systems | |||||
| Income before income taxes | $2,000,000 or greater | $ | 100,000 | ||
| $3,000,000 ” | $ | 200,000 | |||
| $4,000,000 ” | $ | 325,000 | |||
| $5,000,000 ” | $ | 450,000 | |||
| $6,000,000 ” | $ | 600,000 |
For income levels between any two of the above bands payments will be pro-rated on a straight line basis. If for a calendar year as a whole Ampex Data Systems generates negative cash flow, the amount thereof will be deducted on a dollar for dollar basis from income before income taxes in calculating the amount of your incentive.
I wish you the greatest success in achieving your incentive targets.
| Yours sincerely, |
| /s/ Edward Bramson |
| Edward Bramson |
