2005 Bonus Plan Agreement for Mark Legg

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This agreement outlines a 2005 bonus plan for Mark Legg, specifying that he can earn bonuses for achieving certain business milestones by December 31, 2005. These include completing Sarbanes-Oxley 404 compliance documentation, finalizing an internal audit action plan, and meeting a cash flow target based on a defined formula. The total potential bonus is $250,000, with partial payment scheduled for August 15, 2005, and the remainder on February 15, 2006. The plan is approved by S. Chandramohan.

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EX-10.4 2 f18426exv10w4.htm EXHIBIT 10.4 exv10w4  

EXHIBIT 10.4
2005 Bonus Plan — Mark Legg
1.   Sarbanes Oxley 404 Compliance
 
    A bonus of $62,500 will be earned upon the completion, by December 31, 2005, of all the required documentation for ARC to be in compliance with SOX 404.
 
2.   Internal Audit
 
    A bonus of $62,500 will be earned upon the completion, by December 31, 2005, of the internal audit action plan.
 
3.   Cash Flow
 
    A bonus of $125,000 will be earned if the actual cash increase of the business during 2005 is at least equal to the following formula:
    EBITDA
 
    Less:
      Cash interest
 
      Cash taxes
 
      Cash distributions
 
      Cash acquisitions expenditures
 
      Debt repayments
 
      Capitalized IPO and debt finance expenditures
 
      Other cash items not included in EBITDA to be approved by the CEO
$100,000 of the bonus is to be paid on August 15, 2005 and the remainder on February 15, 2006.
Approved:
     
      /s/ S. Chandramohan