2003 Management Bonus Plan Criteria Memorandum from Charlie Eitel

Summary

This memorandum outlines the 2003 Management Bonus Plan for company associates, detailing how bonuses will be calculated based on performance against EBITDA and sales objectives. Eligibility and payout levels depend on meeting specific company-wide and departmental targets. Bonuses are prorated for new hires and those on probation, and require a satisfactory performance review. The plan specifies the percentage of bonus awarded at various performance levels, with additional incentives for exceeding targets. The plan applies to corporate, plant, and national account participants, each with tailored criteria.

EX-10.11.3 4 l99012aexv10w11w3.txt EX-10.11.3 MANAGEMENT BONUS PLAN EXHIBIT 10.11.3 DATE: February 27, 2003 FROM: Charlie Eitel SUBJECT: 2003 Management Bonus Plan - -------------------------------------------------------------------------------- I am pleased to announce several changes to the Management Bonus Plan criteria for 2003. As in 2002, payouts will be based on EBITDA and sales objectives. By measuring performance against these criteria, plan participants can be recognized and rewarded for a more direct impact on company results. Below is an outline of the bonus criteria for the various plan participants, both at corporate and at the plants: CORPORATE AND SITE - - 20% Corporate Adjusted Gross Sales (including Gallery) Objective - - 80% Corporate EBITDA Objective PLANTS - - 15% Plant Sales Objective - - 45% Plant PPV/OI Objective - - 40% Corporate EBITDA Objective NATIONAL ACCOUNTS - - 15% National Account Sales Objective - - 45% National Account Dealer Contribution - - 40% Corporate EBITDA Objective TO BE ELIGIBLE, THE COMPANY MUST HIT: - - 91% of EBITDA Objective and - - 91% of all categories totaled IN ORDER TO PAY IN EXCESS OF 100% IN ANY CATEGORY: - - The company must hit EBITDA Objective - - For the plants, they must hit 100% of the PPV/OI Objective - - For National Accounts, they must hit 100% of the Dealer Contribution Objective The percentage of bonus each participant will receive at each threshold is indicated below for EBITDA at the target: At 90% performance level (or below) 0% Bonus At 91% performance level 10% Bonus At 92% performance level 20% Bonus At 93% performance level 30% Bonus At 94% performance level 40% Bonus At 95% performance level 50% Bonus At 96% performance level 60% Bonus At 97% performance level 70% Bonus At 98% performance level 80% Bonus At 99% performance level 90% Bonus At 100% performance level 100% Bonus Over 100% performance level 1% of salary for each additional 1% performance above 100% The percentage of bonus for adjusted gross sales will be prorated from 0 to 100% for adjusted gross sales between 2002 actual sales and the 2003 Sales Objective. If an associate is placed on a "Plan" during the year, the bonus will be prorated to exclude the length of the Probationary Plan. Earning a bonus is contingent on an associate receiving at least a "Meets Expectations" performance rating at the annual performance appraisal and being an active associate at the time bonuses are distributed. Associates whose employment began after January 1, 2003 will be prorated for the year.