Strategic Outsourcing, Inc. 2007 Management Bonus Incentive Plan

Summary

Strategic Outsourcing, Inc. established a 2007 Management Bonus Incentive Plan to reward executives based on the company's financial performance, specifically its EBITDA compared to the annual budget. Executives are eligible for bonuses that increase or decrease depending on how closely the company meets or exceeds its EBITDA targets. The plan requires agreement on target bonuses at the start of the year, quarterly performance reviews, and final bonus payments at year-end, with possible adjustments for exceptional circumstances. The plan emphasizes team performance, meaning all participants' bonuses depend on the company achieving its overall financial goals.

EX-10.29 26 y38128exv10w29.htm EX-10.29: 2007 MANAGEMENT BONUS INCENTIVE PLAN EX-10.29

EXHIBIT 10.29

STRATEGIC OUTSOURCING, INC. MANAGEMENT BONUS
INCENTIVE PLAN

Philosophy

For the fiscal year ending December 31, 2007, Strategic Outsourcing, Inc. will have a formal management bonus plan (“Bonus Plan”). The philosophy behind the Bonus Plan is simple – to pay for performance by linking, as close as possible, bonus payments to company performance.

Objectives

The Bonus Plan will set the overall objective of the company which ultimately ties to SOI’s bottom line profitability. Attainment of this goal will help the overall company reach its objective of being the best company in this industry.

Mechanics

The goal for purposes of this plan is the company’s EBITDA as defined in the company’s annual budget. If the company’s budgeted EBITDA is exactly achieved, then the individual will receive his/her “target bonus”. If the EBITDA goal is exceeded, the individual will receive more than their target bonus and conversely, will receive less if the budgeted EBITDA target is not achieved.

Team Goal. SOI is a team where no one succeeds if all do not pull their weight. Thus, although the bonus plan is expected to pay for individual performance, the entire team must succeed for everyone to get 100% of his target bonus as described in #1 above. In all cases the Team Goal will be the 2007 budgeted EBITDA of SOI. As SOI achieves its goal, each individual’s bonus will be adjusted by the weighing factors listed below:


Goal Attainment	80	%	85	%	90	%	95	%	100	%	110	%	120% etc

% of Target
Bonus Payment	0	%	25	%	50	%	75	%	100	%	150	%	200% etc

Timetable

February. Each participant and his/her reviewing officer are to review and agree upon the specific target bonus for the year.

Each Quarter. At the end of each quarter, the Chief Financial Officer will have available a year-to-date actual versus plan for each individual based upon actual company EBITDA results.

Year End. Bonuses will be paid at the end of the year. Under unusual circumstances, the individual bonus payment “might be adjusted at the end of the year ” for reasons such as windfalls, inequalities missed, or strategic decisions made by executive management impacting pre-established individual goals.

STRATEGIC OUTSOURCING, INC. MANAGEMENT
INCENTIVE PLAN

NAME: Executive

TITLE: CxO

Reviewing Officer: CEO

Base Salary: $ 300,000 (example) (Bonus will be based on year-end salary)

Target Bonus: $ 180,000

Target Bonus As
% of Salary/Cap: 60%/none

I. Individual Goal = SOI EBITDA – 2007 Budget

Company Plan for Individual Goal = $23,785,130


Individual Goal Achieved	$	19.03	M	$	20.22	M	$	21.41	M	$	22.6	M	$	23.79	M	$	26.16	M	$	28.54	M	etc.
Individual Goal vs. Plan		80	%		85	%		90	%		95	%		100	%		110	%		120	%	etc.

Target Bonus %		0			25	%		50	%		75	%		100	%		150	%		200	%	etc.

Target Bonus Payout *	$	0	k	$	45	k	$	90	k	$	135	k	$	180	k	$	270	k	$	360	k	etc.
(before Team Goal Adj.)


*		If the actual results are between the listed figures, the bonus payment will be extrapolated on the same ratio as above.



Participant				Reviewing Officer



Date				Date