NSP Holdings L.L.C. Stay Bonus Program Description
NSP Holdings L.L.C. established a stay bonus program to retain 33 selected employees, excluding the President and CEO and the Executive Vice President and CFO, during a period when the company is seeking strategic alternatives. If a change of control occurs—defined as the transfer of at least 66 2/3% of voting equity or most company assets—eligible employees may receive a bonus equal to 1.5 to 5 months of salary, as determined by the Board of Managers. The total potential payout is about $980,000. There is no formal written agreement for this plan.
Exhibit 10.1
Description of Stay Bonus Program
The stay bonus program was put in place by the Board of Managers as a means of retaining certain employees as the Company announced it was pursuing strategic alternatives. Thirty-three employees, including executive officers of the Company, are eligible to participate for a maximum aggregate payout of approximately $980,000. Mr. Robert A. Peterson, the Company’s President and Chief Executive Officer and Mr. David F. Myers, Jr., the Company’s Executive Vice President and Chief Financial Officer, are not eligible to participate. Payments are triggered upon a change of control of NSP Holdings L.L.C., with change of control being defined as a transfer of 66 2/3% or more of the voting equity of the Company or substantially all of the Company’s assets. There is no written documentation of this plan. Employees are eligible to receive between 1.5 and 5 months’ salary upon a change of control, with individual awards determined by the Board of Managers.
