American Media, Inc. Emergence Bonus Plan
Exhibit 10.8
American Media, Inc. Emergence Bonus Plan
Purpose: The American Media Inc. Emergence Bonus Plan is intended to motivate certain key employees of the Company to continue with their diligent efforts to maximize the value of the Company’s assets and business operation for the benefit of the Company and its stakeholders.
Eligibility and Bonus Payment Date: Upon the occurrence of a Reorganization Event, an employee listed on Exhibit A, who is either still employed by the Company or whose employment with the Company was terminated by the Company (i) without Cause (as determined by the Board of Directors or its designee) or (ii) due to the participant’s death or disability (as determined by the Board of Directors or its designee) following the approval of the plan of reorganization, shall be entitled to receive a bonus payment. The employees listed on Exhibit A will be entitled to receive the bonus payment listed next to such employee’s name on Exhibit A. Payment of the bonus will be made on or about ten (10) business days following the occurrence of the Reorganization Event, but in any event no later than March 15, 2011. “Reorganization Event” means the business day on or after entry of a final order of the Court confirming a plan of reorganization (the “Confirmation Order”) specified by the Company on which (a) no stay of the Confirmation Order is in effect and (b) the conditions to effectiveness of the plan of reorganization have been satisfied or waived. Any unallocated amounts will be allocated to employees by the Company’s new board post-emergence from chapter 11.
Maximum Payments under the Bonus Plan: The maximum aggregate bonus payments to all plan participants shall not exceed $4,000,000 and will be allocable by the new board of the Company post-emergence from chapter 11.
Administration of Plan: The plan shall be administered by the Board of Directors or its designee and the administrator is given full authority and discretion within the limits of this Plan to establish such administrative measures as may be necessary to administer and attain the objectives of this Plan. The Administrator shall have full power and authority to construe and interpret this Plan and any interpretation by the Administrator shall be accorded the maximum deference permitted by law.
