Avatech Solutions, Inc. FY 2007 Management Incentive Compensation Plan Targets
This agreement outlines the incentive compensation plan for Avatech Solutions, Inc. executives for fiscal year 2007. It specifies target bonus amounts for three named executives, with 75% of the bonus based on earnings per share (EPS) and 25% based on service revenue goals. Bonuses are paid after the fiscal year audit, with additional rewards for exceeding EPS targets. The plan also allows for adjustments if an acquisition occurs using pooling accounting.
Exhibit 10.2
Avatech Solutions, Inc.
Management Incentive Compensation Plan Targets for FY 2007
| Target IC at Plan | ||||||
| % of Salary | Amount | |||||
| Donald R (“Scotty”) Walsh | 75 | % | $ | 225,000 | ||
| Scott Harris | 50 | % | $ | 130,000 | ||
| Larry Rychlak | 33 | % | $ | 70,950 | ||
| $ | 425,950 | |||||
A: 75% of Incentive Compensation (IC) based on EPS*
B: 25% of IC based on achieving Service revenue objective
| 50% | of A earned at EPS | $ | 0.18 | ||
| 60% | of A earned at EPS | $ | 0.19 | ||
| 70% | of A earned at EPS | $ | 0.20 | ||
| 80% | of A earned at EPS | $ | 0.21 | ||
| 90% | of A earned at EPS | $ | 0.22 | ||
| 100% | of A earned at EPS | $ | 0.23 | ||
| * | Numbers to be adjusted if acquisition completed using pooling accounting | ||||
| 50% | of B earned at $9,000,000 in Service Revenue | ||||
| 100% | of B earned at $10,300,000 in Service Revenue | ||||
| Pro rata percent for amount between $9,000,000 and $10,300,000 | |||||
Incentive compensation will be paid upon completion of FY 2007 audit
The Incentive Compensation Plan will also provide for an over achievement increase in the IC pool of $20,000 for each $.01 EPS above $.23.
