Cornelius Nurseries, Inc. President Profit Bonus Plan for Fiscal Year Ending September 30, 2003

Summary

This agreement outlines a profit bonus plan for the President of Cornelius Nurseries, Inc. for the fiscal year ending September 30, 2003. The President is eligible to receive an annual bonus equal to 10% of the company's combined pre-tax net profit, provided the company is profitable. The bonus is paid after the fiscal year ends, based on audited financial statements, and only if the President remains employed at the time of payment. No bonus is paid if the company does not make a profit or if the President's employment ends before payment.

EX-10.1 3 d02122exv10w1.txt PRESIDENT PROFIT BONUS PLAN FOR THE FISCAL YEAR EXHIBIT 10.1 CORNELIUS NURSERIES, INC. PROFIT BONUS PLAN FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2003 I. PURPOSE The purpose of this Cornelius Nurseries, Inc. Profit Bonus Plan is to provide an incentive to the President, Cornelius Nurseries, Inc. to maximize the performance of Cornelius Nurseries, Inc. II. DEFINITIONS Cornelius Nurseries, Inc. - includes the following units of the company: All Retail Stores serving the Houston Market, the Voss Road Administrative Office, and Turkey Creek Farms. Cost of Goods Sold - the amount of Cost of Goods Sold recorded by all units of Cornelius Nurseries, Inc., including results of all physical inventory counts taken during the fiscal year. Fiscal 2003 - the fiscal period starting on October 1, 2002 and ending on September 30, 2003. Houston Market - the group of Retail Stores serving the Houston market. Period Completion - occurs upon issuance of the Press Release announcing the Financial Results of Calloway's Nursery, Inc. as of and for Fiscal 2003. Pre Tax Net Profit - the amount remaining after subtracting Cost of Goods Sold and Total Expenses from sales. Retail Store - each one of the following retail stores: Voss Road (301), FM1960 (302), and Dairy Ashford (303). Sales - the amount of sales recorded by all units of Cornelius Nurseries, Inc. Total Expenses - all expenses incurred by or charged to all units of Cornelius Nurseries, Inc., except for Bonus Expense under this Cornelius Nurseries, Inc. Profit Bonus Plan. Turkey Creek Farms - the growing operation in Houston, TX. Voss Road Administrative Office - includes the office located on Voss Road, the associated warehouse, landscaping department, advertising department and any other support functions for Cornelius Nurseries, Inc. III. PROFIT BONUS The President, Cornelius Nurseries, Inc. will receive an annual bonus from a bonus pool that shall be equal to 10% of the combined Pre Tax Net Profit of Cornelius Nurseries, Inc. The Bonus Pool will be paid Upon Period Completion for Fiscal 2003. Example: ~~Sales $17,500,000 Cost of Goods Sold 10,900,000 Gross Profit 6,600,000 Total Expenses 5,487,000 Pre Tax Net Profit $ 1,113,000 Bonus Pool (10%) $ 111,300~~

1 IV. GENERAL PROVISIONS No bonus accrues for any reason on any Pre Tax Net Profit less than "0", or breakeven. All bonuses are payable after the end of the fiscal year and no bonus will be paid in the event of termination of employment whether termination is voluntary or involuntary, with cause or without cause. For purposes of all calculations under the plan, the amounts shall be taken from the Company's audited financial statements. 2