Annual Incentive Award Plan Criteria for Fiscal Year 2013 for Named Executive Officers
This document outlines the criteria for the 2013 Annual Incentive Award Plan for named executive officers. Awards are based on three financial metrics—corporate SG&A, EBITDA, and manufacturing cash—and one independent metric, a successful quality engine launch. Each executive is assigned a target award, either as a dollar amount or a percentage of base salary. Awards are paid based on performance against these metrics, with specific thresholds required for payout. The engine launch metric is independent and paid if achieved, regardless of financial results.
Exhibit 10.1
Annual Incentive Award Plan Criteria for Fiscal Year 2013 for Named Executive Officers
The Annual Incentive Plan rewards performance based upon the following four metrics: Three financial metrics: 1) corporate SG&A, 2) EBITDA, and 3) manufacturing cash; and one independent metric: 4) successful quality engine launch. The named executive officers are assigned the following Target Award (Dollar Value or Percentage of base salary) for fiscal year 2013 Annual Incentive Awards:
| Level | Target Award ($ or Percentage) | |
| CEO | $1,000,000 | |
| COO (12) | 80% | |
| 12 | 75% | |
| 11 | 65% |
Awards are based upon the success of these metrics. The three financial metrics will only be paid if a threshold amount of manufacturing cash is met. However, the success of the engine launch is independent of the financial metric results and will be paid if the successful quality engine launch goal is met. Awards are calculated as illustrated in the table below:
| Base Salary | x | Target Award ($ or Percentage) | x | Metric Weight | x | Metric Performance Factor | = | Final Award |
The payout multiple of a participant’s Target Award is as follows:
Payout Multiple of Target Award Percentage
| Threshold | 25% | |
| Target | 75% | |
| Distinguished | 100% |
