2004 Compensation Plan for Thomas Sparvik

EX-10.21 3 c83598exv10w21.txt 2004 COMPENSATION PLAN FOR THOMAS SPARVIK EXHIBIT 10.21 2004 COMPENSATION PLAN FOR THOMAS SPARRVIK The main focus this year is to grow the company and continue on the path of profitability. The main challenge will be to continue to motivate the staff while located in San Diego. This reward system intends to motivate you to fulfill both the Company tasks and, in the long term, create shareholder value for all shareholders of KMC. The existing contract between us will remain in effect as a base contract; however, your monthly base salary will be $3,000/month effective 01/01/04, and you will not be part of the KMC benefit plans: A 'per quarter' bonus will be paid to you, based on the following quarterly Operating Profit: - If less than $100K, then $0/Qtr. - If more than $100K, but less than $150K, then $2,500/Qtr. - If more than $150K, but less than $400K, then $5,000/Qtr. - If more than $400K, but less than $600K, then $7,500/Qtr. - If more than $600K, then $10,000/Qtr. A 'year end' bonus of $20,000 will be paid to you if the 2004 Annual Operating Profit for KMC exceeds $1.1 million. A 'year end' bonus will be paid to you based on the following 2004 Annual Revenue results: - If at least $12 million, then $5,000. - If between $12 million and $13 million, then an additional $10,000, prorated. - If $13 million or more, then $15,000. Before the bonuses are paid, financial results must be received and approved by the Compensation Committee Chairman. No Q3 or Q4 bonus will be paid if the 2004 YTD cumulative Operating Profit at the end of these quarters is less than $580K. This agreement will be added to your existing contract and will be in effect Q1 through Q4, 2004. /s/ Thomas Sparrvik /s/ Richard L. Poss - -------------------------------------- -------------------------------------- Thomas Sparrvik, CEO Richard L. Poss Chairman, Compensation Committee /s/ David C. Malmberg -------------------------------------- David C. Malmberg Chairman