2006 Annual Performance Incentive Plan for Executive Officers
This agreement outlines the 2006 Annual Performance Incentive Plan (APIP) for executive officers of the company. Under this plan, executives are eligible for cash bonuses if they meet specific annual performance goals set by the Compensation Committee. The plan defines performance measures—total revenue, operational earnings per share, and core cash flow from operations—with set weightings. Payments are based on achieving threshold, target, or maximum performance levels and are subject to the Committee's review and approval after the fiscal year ends.
Exhibit 10(e)(5)
Annual Performance Incentive Plan for 2006 (“2006 APIP”)
Under the 2006 APIP, executive officers of the Company are eligible to receive performance related cash payments. Payments are, in general, only made if annual performance objectives established by the Compensation Committee of the Board of Directors (the “Committee”) are met.
The Committee approved annual incentive opportunities for 2006, expressed as a percentage of base salary for each participating officer. Certain additional goals were established for some officers based on business unit goals and/or individual performance goals and objectives. The Committee also established overall threshold, target and maximum measures of performance for the 2006 APIP. The performance measures and weightings for 2006 are total revenue (30%), operational earnings per share (40%) and core cash flow from operations (30%).
Individual payments will be subject to the review and approval of the Committee following the completion of the 2006 fiscal year.
