FYE 2012 Incentive Plan for Chief Executive Officer and Chief Financial Officer

TO:	Chief Executive Officer and Chief Financial Officer
FROM:	Raymond J. De Hont
SUBJECT:	FYE 2012 Management Incentive Plan

 

 

Participants in the Management Incentive Plan will be eligible for competitive target bonuses as a percentage of salary as shown below:

Chief Executive Officer	50%
Chief Financial Officer	40%

Bonuses will be considered and calculated based upon the attainment of the Corporate Net Income and Net Sales targets for FYE 2012.

 

The Corporate financial factors are comprised of Corporate Net Income (70%) and Net Sales (30%).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1)	Corporate Net Income Multiplier

Under the FYE 2012 Management Incentive Plan, the participant becomes eligible for 70% of the potential Corporate bonus amount (at 100% performance) upon the attainment of the Corporate Net Income target of $               .

The percent of target bonus earned based upon Corporate Net Income is listed below:

			Corporate Net
Objective Achievement			Income Multiplier
less than 75%			0.00
75%			.35
80%			.42
85%			.49
90%			.56
95%			.63
100%			.70
105%			.7875
110%			.875
115%			1.05
120%			1.225
125%			1.40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2)	Corporate Net Sales Multiplier

Under the FYE 2012 Management Incentive Plan, the participant becomes eligible for 30% of the potential Corporate bonus amount (at 100% performance) upon the attainment of the Corporate Net Sales target of $                .

The percent of target bonus earned based upon Corporate Net Sales is listed below:

			Corporate Net Sales
Objective Achievement			Multiplier
less than 85%			0.00
85%			.15
90%			.20
95%			.25
100%			.30
105%			.3375
110%			.375
115%			.45
120%			.525
125%			.60

Salary x Incentive Level x (Corporate Net Income Multiplier + Corporate Net Sales Multiplier)

This Management Incentive Plan (“Plan”) is not a contract that entitles you to an award if the Plan objectives for the fiscal year are met; rather, this Plan is a discretionary short term cash bonus plan administered by the Compensation and Management Development Committee of the Board of Directors (the “Committee”). The Committee retains the sole and absolute discretion to deny and not pay bonuses under the Plan and to reduce bonuses payable under the Plan, notwithstanding the attainment of objectives under the Plan; to increase or pay bonuses under the Plan, even if the objectives under the Plan have not been met; and to further condition, modify or amend the objectives and conditions of eligibility under the Plan. The C ommittee also retains the sole discretion with respect to awards to be paid, if any, in connection with separations from employment that occur during a Plan year.

 

 

 

 

 

 

 

 

 

 

 

 

Goals achieved:

1) Corporate Net Income = 100%

2) Corporate Net Sales = 100%

Bonus amount = $100,000 x 50% x (.70 + .30)

                                    = $50,000

Goals achieved:

1) Corporate Net Income = 80%

2) Corporate Net Sales = 80%

Bonus amount = $100,000 x 50% x (.42 + 0.00)

                                    = $21,000

Goals achieved:

1) Corporate Net Income = 70%

2) Corporate Net Sales = 100%

Bonus amount = $100,000 x 50% x (0.00 + 0.00)

                                    = $0   Net Income Threshold of 75% not met

Goals achieved:

1) Corporate Net Income = 125%

2) Corporate Net Sales = 125%

Bonus amount = $100,000 x 50% x (1.40 + .60)

                                    = $100,000