Insignia Systems, Inc. 2007 CEO Bonus Plan
This agreement outlines the 2007 bonus plan for the CEO of Insignia Systems, Inc. The CEO is eligible for a bonus based on the company's POPS revenue and gross margin for the year, provided they are employed on December 31, 2007. The bonus is calculated as a percentage of revenue and gross margin above certain thresholds and will be paid after the fiscal year ends. The plan does not guarantee continued employment and the bonus rights cannot be transferred or assigned.
EXHIBIT 10.1
INSIGNIA SYSTEMS, INC.2007 CEO BONUS PLAN
1. Purpose. The purpose of this Plan is to assist the corporation in retaining and motivating the CEO of the corporation, for the benefit of the corporation and its shareholders.
2. Eligibility. The sole employee eligible to participate in this Plan is the CEO of the corporation. The CEO must be employed on December 31, 2007 to earn any bonus.
3. Duration of Plan. This Plan shall be effective for the corporation’s fiscal year ending December 31, 2007.
4. Bonus Formula. The CEO may earn a bonus for 2007 equal to the sum of the following:
(a) 1% of total POPS revenue for 2007 between $19 million and $24 million, for a maximum bonus under this paragraph of $50,000; plus
(b) 3.75% of the corporation’s gross margin for POPS sales in 2007 which exceed $24 million.
5. Calculation of Bonus. POPS revenue, POPS gross margin and earned bonus shall be calculated by the corporation’s CFO based on the accounting methods and procedures used in preparing the corporation’s audited financial statements for 2007.
6. Payment of Bonus. Earned bonus shall be calculated and paid as soon as administratively feasible after December 31, 2007.
7. Non-Assignability. The CEO may not assign or transfer his right to payment under this Plan, and his right to payment may not be attached by creditors.
8. No Continued Employment. Nothing contained in this Plan shall be construed as guaranteeing continued employment to the CEO.
