FY2006 Salary and Bonus Arrangements for Executive Officers
This agreement outlines the 2006 salary and bonus structure for the executive officers of the company, including the Chairman/CEO, President/COO, SVP Operations, CFO, and SVP/Secretary. It specifies each officer's base salary and details the annual incentive plan, which allows for a maximum bonus of up to 35% of base salary. Bonus payments are tied to company performance targets for earnings per share and return on invested capital, as approved by the Board of Directors.
EXHIBIT 10.36
FY2006 SALARY AND BONUS ARRANGEMENTS
FOR EXECUTIVE OFFICERS
FY2006 Salary Structure
| Position | Name | FY2005 Base | Increase | FY2006 Base | |||||||
| Chairman/CEO | Ronald M. Lamb | $ | 700,000 | $ | -0- | $ | 700,000 | ||||
| President/COO | Robert J. Myers | $ | 265,000 | $ | 40,000 | $ | 305,000 | ||||
| SVP Operations | Terry Handley | $ | 200,000 | $ | 30,000 | $ | 230,000 | ||||
| CFO | William J. Walljasper | $ | 165,000 | $ | 25,000 | $ | 190,000 | ||||
| SVP/Secretary | John G. Harmon | $ | 260,000 | $ | 25,000 | $ | 285,000 | ||||
FY2006 Annual Incentive Plan
The maximum bonus available to the executive officers (and Vice Presidents) will be an amount equal to 35% of base salary. Of that amount, 75% will be based on earnings per share, and 25% based on return on invested capital.
If and as earnings per share reach specified targets approved by the Board of Directors, bonus payments will be made in amounts equal to 7.50%, 11.25%, 18.75% or 26.25% of the base salary amount.
If and as return on invested capital reaches specified targets approved by the Board, bonus payments will be made in amounts equal to 2.50%, 3.75%, 6.25% or 8.75% of the base salary amount. For this purpose, return on invested capital is determined by dividing operating income after depreciation and tax before interest by average invested capital.
