2006 Executive Bonus Plan for Allan Dalton

Summary

This agreement outlines the 2006 Executive Bonus Plan for Allan Dalton, a top-producing realtor. Under the plan, Allan is eligible for a performance-based bonus with a target amount of $325,000, determined by corporate financial performance (30%), business unit financial performance (50%), and individual objectives (20%). The bonus can range from 0% to 200% of the target, depending on performance levels. Specific financial metrics and objectives are detailed in accompanying matrices approved by the Compensation Committee.

EX-10.5 6 v20098exv10w5.htm EXHIBIT 10.5 exv10w5

Exhibit 10.5

Allan Dalton
Realtor + Top Producer
2006 Executive Bonus Plan

For 2006, you will be eligible to receive a performance bonus based upon achievement of performance objectives. Your bonus will be determined based on the following amounts:

Thirty Percent (30%) of your 2006 bonus award will be based on Corporate Financial Performance (as outlined below), Fifty Percent (50%) will be based on Business Unit Financial Performance (as outlined below) and Twenty Percent (20%) will be based on Individual Performance Objectives (as outlined below). Your Target Bonus for 2006 is $325,000. Your Target Bonus is your expected bonus amount assuming successful achievement of all of your performance objectives. If you significantly exceed your performance objectives, you may receive a bonus in excess of your Target Bonus, up to a maximum of 200% of your Target Bonus.


At Threshold Performance Level:		0% of Target Bonus

At Target Performance Level:		100% of Target Bonus (30% for Corporate Financial Performance, 50% for Business Unit Financial Performance, 20% for Individual Performance)

At Growth Performance Level:		200% of Target Bonus (60% for Corporate Financial Performance, 100% for Business Unit Financial Performance, 40% for Individual Performance)

Achievement in between levels will be calculated according to a bonus formula described below.

Corporate Financial Performance Element

The Corporate Financial Performance element will be determined based on a financial matrix that includes Cash Operating Income and Revenue components. For purposes of this Bonus Plan, “Cash Operating Income” means Operating Income less non-cash charges, corporate branding, former officer legal costs and other extraordinary, non-recurring items, calculated before payment of executive bonuses. A copy of the matrix for your 2006 bonus, as approved by the Compensation Committee, is being provided to you in connection with this Bonus Plan.

Business Unit Financial Performance Element

The Business Unit Financial Performance element will be determined based on a financial matrix that includes Cash Operating Income achievement and Revenue components. A copy of the matrix for your 2006 bonus, as approved by the Compensation Committee, is being provided to you in connection with this Bonus Plan.