2002 Key Employee Bonus Plan
EX-10.2 6 w57831a2ex10-2.txt 2002 KEY EMPLOYEE BONUS PLAN Exhibit 10.2 2002 UNITED STATES MARINE REPAIR KEY EMPLOYEE BONUS PLAN (AS AMENDED AND RESTATED) PURPOSE U.S.M.R. is committed to reducing costs, increasing productivity, and eliminating waste through improved planning, execution of objectives, and communication both within the company and with our customer. The bonus plan is designed to reward Key employees who meet and exceed the established objectives. As company performance improves through their control of costs and increased EBITDA, these employees are rewarded through the Key bonus plan as described in this document. ADMINISTRATION AND ELIGIBILITY The Bonus Plan will be administered by the Vice President of Human Resources and directed by a Bonus Committee comprised of the C.E.O. and Chief Operating Officer. Key employees are identified by the C.E.O. as employees critical to company performance. Key employees are identified as Key 1 and Key 2, which determines their bonus eligibility. BONUS AWARDS The bonus targets are established by the C.E.O. at the beginning of each fiscal year and approved by the Board of Directors (see attached). The Bonus is based upon an EBITDA target which is established for the Corporation, but each Division of USMR has a targeted EBITDA level. The bonus target is Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA). Bonus awards are a percentage of annual salary based upon the EBITDA performance of the company. Individual performance or divisional performance may affect the planned bonus percentage as determined by the Bonus Committee. BONUS PROCEDURE At the completion of the fiscal year, the Chief Financial Officer will provide the financial results of the company in the targeted bonus areas. Claim revenues arising after the effective date of the plan will be included in EBITDA either in the year the job is performed or in the year the claim revenue is actually received as determined by the Bonus Committee. Based upon the approved schedule of bonus percentages that was established in January of the year, the plan administrator will prepare a bonus pay out schedule for the Chief Executive Officer's review. The Chief Operating Officer and President of U.S.M.R. will recommend any changes to the amounts based upon Key employee performance and the C.E.O. will give final approval. PAYMENT OF BONUS No Bonus will be paid unless the Company attains a threshold level of EBITDA. An interim payment of up to 80% of the expected bonus may be paid during the last quarter of the year based on the discretion of the Bonus Committee. EXTRAORDINARY EVENTS The Bonus Committee may either postpone or eliminate bonus payments under this plan when payment of the bonus might endanger the Company's financial capability to perform contracts. Examples of extraordinary events include the occurrence of catastrophic losses after the end of the year or an overall loss for the Corporation. The targets are subject to change based upon changed cash flow targets due to divestitures or acquisitions. - ------------------------------------ ------------------------------------ Approved Date 2 UNITED STATES MARINE REPAIR KEY EMPLOYEE BONUS PLAN 2002 - --------------------------------------------------------------------------------------------------------------------- ANNUAL KEY 1 KEY 2 EBITDA BONUS BONUS - --------------------------------------------------------------------------------------------------------------------- $30M 10% 10% $31M 20% 20% $32M 30% 23% $33M 40% 25% $34M 50% 33% $36M 60% 40% $38M 70% 50% $40M 80% 60% $42M 88% 68% $44M 95% 75% $45M 100% 80% $47M 110% 90% $49M 115% 95%
/s/ B. Edward Ewing April __, 2002 /s/ Alexander J. Krekich April _, 2002 - ------------------------------------------- --------------------------------------------------- B. EDWARD EWING DATE ALEXANDER J. KREKICH DATE
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