Cognitronics Corporation 2000 Executive Bonus Plan

Summary

This agreement outlines the 2000 Executive Bonus Plan for Cognitronics Corporation, covering the President, Vice Presidents of Sales, Engineering, and Manufacturing, and the Treasurer. The plan sets a bonus pool based on the company's operating income, with specific percentages and thresholds. The Compensation Committee allocates the bonus pool among participants after considering the President's recommendations. Operating income is defined as consolidated income before taxes, excluding executive bonus expenses and special or non-recurring items.

EX-10.5 2 0002.txt 2000 EXECUTIVE BONUS PLAN 1 Exhibit 10.5 COGNITRONICS CORPORATION 2000 EXECUTIVE BONUS PLAN Participants: President, Vice President - Sales, Vice President - Engineering, Vice President - Manufacturing and Treasurer The bonus pool is to be calculated as follows: Range of Operating Income(1) Bonus Pool Up to $2.5 million 2% of Operating Income $2.51 million to $5 million $50,000 plus 7% of Operating Income in excess of $2.5 million $5.01 million $7.5 million $225,000 plus 8% of Operating Income in excess of $5 million $7.51 million and over $425,000 plus 10% of Operating Income in excess of $7.5 million The bonus pool is to be allocated among the participants by the Compensation Committee after reviewing the written recommendations of the President. (1) Operating Income is consolidated income before income taxes exclusive of executive bonus expense and special or non-recurring income or expense.