Letter Agreement Regarding 2005 Bonus, 2006 Salary, and Bonus Plan Between CMRG and David A. Levin

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This agreement between CMRG's Compensation Committee and David A. Levin, President and CEO, confirms Mr. Levin's 2005 bonus of $450,000 and grants him 200,000 stock options at the April 24, 2006 closing price. For 2006, his salary is increased to $750,000, with a performance-based bonus also targeted at $750,000, determined solely by EBITDA results from existing operations. The bonus is capped at $1,125,000. Mr. Levin must be actively employed at year-end and at bonus distribution to be eligible.

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EX-10.1 2 dex101.htm LETTER AGREEMENT BETWEEN THE COMPANY AND DAVID A. LEVIN Letter Agreement between the Company and David A. Levin

Exhibit 10.1

 

Date:    May 26, 2006
To:    David A. Levin
   President and CEO
From:    CMRG Compensation Committee

David:

This confirms your bonus for business year 2005. The results achieved yielded a 75% bonus against a target of $600,000 or $450,000. Congratulations on a great performance. At the April 24th meeting of the Board, the committee also recommended to the Board, and the Board authorized, that you should receive 200,000 options in recognition of your efforts during the 2005 business year, with an option price equal to the closing price of the Company’s common stock on April 24, 2006.

As to the current year, business year 2006, we are raising your salary to $750,000 effective as of May 1, 2006.

Your targeted base bonus for business year 2006 will be $750,000 and will be performance based. The sole metric will be EBITDA (before extraordinary items). The illustrative table below shows EBITDA and bonus amounts in round numbers. The actual bonus will be calculated from real EBITDA dollar amounts.

The following table illustrates the parameters of the plan:

 

EBITDA

    Bonus %    Bonus $

*

    0    0

*

    80    600,000

*

    85    637,500

*

    90    675,000

*

    95    712,500

*

    100    750,000

*

    105    787,500

*

    110    825,000

*

    115    862,500

*

    120    900,000

*

    125    937,500

*

    130    975,000

*

    135    1,012,500

*

    140    1,050,000

*

    145    1,087,500

*

    150    1,125,000

The bonus is capped at 150% of your target. That is, any EBITDA in excess of *MM will still earn the maximum bonus of $1,125,000.

* [As supported by the Securities and Exchange Commission’s Frequently Asked Questions dated November 23, 2004 (Question 13), and consistent with the treatment of similar information under Instruction 2 to Item 402(k) of Regulation S-K, the Registrant has excluded information relating to target levels with respect to specific quantitative or qualitative performance – related factors, or factors or criteria involving confidential commercial or business information, the disclosure of which would have an adverse effect on the Registrant].

For purposes of this 2006 Bonus Plan, the 2006 EBITDA shall include only those CMRG operations that existed in 2005. For example, if the Company acquires another business in 2006, EBITDA generated from that business shall be excluded for purposes of this 2006 Bonus Plan.

Eligibility:

As has been our custom, to be eligible for the bonus, you must be actively employed at the end of the fiscal year and at the time of the bonus distribution.

Kindest Regards,

Compensation Committee:

 

/s/ JESSE H. CHOPER

    

/s/ GEORGE T. PORTER, JR.

Jesse H. Choper     George T. Porter, Jr.