2011 Senior Leadership Team Cash Bonus Plan
This agreement outlines the 2011 Cash Bonus Plan for the company's senior leadership team. Bonuses are based primarily on the company's EBITDA performance, with a smaller portion tied to individual objectives. Payments are tiered depending on how closely the company meets or exceeds EBITDA targets, with additional bonuses possible for surpassing goals. Bonuses are evaluated in two periods: mid-year and year-end, with the final bonus determined and paid after the fiscal year ends. Bonuses are only considered earned when the final year-end payment is made.
EXHIBIT 10.1
2011 Bonus Plan
The Compensation Committee of the Board recommends to the Board a tiered payment cash bonus plan for the Company’s senior leadership team for fiscal year 2011 based on the following parameters (the “2011 Cash Bonus Plan”):
· The bonus for each measurement period will be based 80% on the EBITDA target for that period and 20% on achievement of individual performance objectives for that period, but personal objectives-based bonuses are payable only if at least 90% of the EBITDA target is achieved for the that period.
· If the Company achieves 90% of the targeted EBITDA earnings for a measurement period, then 50% of the bonus for financial results for that period would be payable, and the employee would be eligible to receive up to 50% of the personal objectives bonus for the period to the extent achieved.
· If the Company achieves 95% of the targeted EBITDA earnings for a measurement period, then 75% of the bonus for financial results for that period would be payable, and the employee would be eligible to receive up to 75% of the personal objectives bonus for the period to the extent achieved.
· If the Company achieves 100% of the targeted EBITDA earnings for a measurement period, then 100% of the bonus for financial results for that period would be payable, and the employee would be eligible to receive up to 100% of the personal objectives bonus for the period to the extent achieved.
· If the Company exceeds the targeted EBITDA earnings for a measurement period, then the bonus for that period would be payable at the like percentage (point for point), up to an additional 25% (30% for the executive management group) maximum (e.g., if EBITDA is 103% of the targeted budget, then 103% of available bonus would be payable for the period).
· The measurement periods will be the first six months of the fiscal year (end of Q2), and the entire fiscal year (end of Q4).
· The bonus opportunity will be split into two increments and evaluated and paid at the end of each payment period as follows: 30% for first half, payable after the end of Q2; and 70% for the entire fiscal year, payable after the fiscal year end. The mid-year bonus will be a “down payment” on the final year-end bonus, and may be taken into consideration in the final year-end bonus determination. Bonuses will be deemed earned when the final year-end bonus is paid and not before.
