Summary of 2005 Corporate Bonus Plan for Employees (Excluding Sales Commission Employees)
This agreement outlines the 2005 corporate bonus plan for all company employees except those who receive sales commissions. The plan ties bonus payments to both individual and company financial performance, with specific revenue and net operating results targets determining the amount earned. Employees can earn up to 100% of their bonus potential if targets are met, and additional bonuses may be paid if the company exceeds certain thresholds. Bonus payments are generally made after the fiscal year, with possible interim payments if interim targets are achieved.
Exhibit 10.1
Summary of 2005 Corporate Bonus Plan
The Company’s 2005 corporate bonus plan covers all employees other than those paid commissions on sales and is designed to link bonus payments to individual performance and Company financial performance. Each covered employee has the potential to earn 100 percent of his or her bonus potential if the Company achieves certain financial performance targets, which are set forth below. Individual bonus payments will also depend, in most cases, on achievement of departmental/group and individual performance objectives approved by management. Bonus payments, if any, will be made after the end of the fiscal year 2005, except that interim bonus payments may be made to eligible employees if the Company achieves its interim financial performance targets.
| Revenue Component | Net Operating Results ("NOR") Component | |||||||||||
| Revenue Target | Percent of Bonus | NOR Target (2) | Percent of Bonus | |||||||||
| (in millions) | Potential Earned (1) | (in 000s) | Potential Earned (1) | |||||||||
$75 | 12.50 | % | $ | 1,200 | 12.50 | % | ||||||
$78 | 18.75 | % | $ | 3,600 | 18.75 | % | ||||||
$81 | 25.00 | % | $ | 6,000 | 25.00 | % | ||||||
$84 | 37.50 | % | $ | 8,800 | 37.50 | % | ||||||
$87 | 50.00 | % | $ | 10,000 | 50.00 | % | ||||||
> $87 | (3) | >$10,000 | (3) | |||||||||
| 1. | Payouts for performance between tiers will be extrapolated. | |||
| 2. | Net earnings before certain expenses, among other things, corporate bonus expenses, restructuring charges, severance expense and any acquisition-related expenses. | |||
| 3. | If revenues exceed $87 million, five percent of revenues over $87 million will be allocated to participants in the corporate bonus program on the same basis as the payout at $87 million. If NOR exceed $10 million, ten percent of NOR over $10 million will be allocated to participants in the corporate bonus program on the same basis as the payout at $10 million. | |||
