EXHIBIT 10.30

 

SUMMARY OF 2006 EXECUTIVE COMPENSATION PLAN

 

The Company’s 2006 Executive Compensation Plan, as approved by the Compensation
Committee of the Board of Directors is substantially consistent with the 2005
Plan and consists of cash bonuses and equity incentives. With the guidance of a
compensation consultant, the Plan was derived from third-party compensation
survey data for comparable companies and executive positions and is based upon
performance targets and payments tied to a percentage of base pay. The key
elements of the Plan include:

 

Bonus Incentive Compensation:

 

  •   The Plan provides for target bonus amounts for each executive officer,
using a percentage of his or her base pay derived from third-party compensation
survey data for comparable companies and executive positions.

 

  •   The total bonus is comprised of three major components:

 

- Executive’s personal qualitative performance appraisal

 

20% of target

- Company’s quantitative financial performance

 

40% of target

- Executive’s achievement of strategic goals

 

40% of target

 

  •   The qualitative personal performance appraisal is paid annually based upon
the executive officer’s accomplishment of qualitative goals that are established
by the executive officer’s manager or by the Compensation Committee in the case
of the Chairman and CEO.

 

  •   The plan provides for a graduated scale of payment for the portion of the
bonus that is based on the Company’s quantitative financial performance, so that
an executive officer may earn no quantitative bonus, a fraction of his or her
target, or up to 200% of the quantitative part of the target, depending upon the
financial performance of the Company and, for those in a position with
responsibility for certain parts of the Company’s financial operating results,
performance for those results.

 

  •   For the achievement of strategic goals component of the bonus, the
potential amount to be earned is entirely funded by the financial performance of
the Company, as described in the preceding paragraph. The amount earned by the
executive officer is based upon the executive officer’s performance against
strategic goals that are approved by the Compensation Committee.

 

  •   Quantitative financial performance bonuses are based upon a combination of
earnings and revenue achievement against targets, for the Company as a whole for
all executives, except the general managers. The general manager’s quantitative
financial performance bonuses are based solely on a combination of certain
earnings and revenue achievements against targets for each general manager’s
financial operating results for which they are responsible. Results are
generally weighted more heavily on earnings than revenue. Non-cash adjustments
and certain extraordinary items, as approved by the Compensation Committee, are
excluded from earnings for purposes of making these bonus determinations.

 

For the first three fiscal quarters of 2006, the applicable bonus payable for
the quantitative financial performance with respect to each of these quarter’s
results will be paid following the completion of the quarter. The applicable
bonus payable with respect to the fourth quarter and year-end quantitative
financial performance, as well as the executive’s qualitative personal
performance appraisal and achievement of strategic goals, will be approved by
the Compensation Committee and paid following the end of the Company’s fiscal
year.

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The following table sets forth the 2006 salary and bonus, assuming achievement
of 100% of the target based on the foregoing criteria, for each of the Company’s
named executive officers (as defined in Item 402(a)(3) of Regulation S-K):

 

Name of Executive Officer

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   2006 Base
Salary

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   Cash Bonus
(Assuming Achievement
of 100% of Target)

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Paul J. Tobin

   $ 226,800    $ 113,400

E. Y. Snowden

   $ 384,300    $ 269,010

Karen A. Walker

   $ 244,524    $ 110,036

William Wessman

   $ 242,740    $ 109,233

Fritz von Mering

   $ 243,885    $ 109,748

Thomas Erskine

   $ 203,775    $ 71,321

Ersin Galioglu

   $ 175,725    $ 61,504

James J. Anderson

   $ 183,750    $ 64,313

 

Equity Incentive Compensation:

 

In determining the equity incentives for the named executive officers, the
Compensation Committee considers numerous factors such as (i) the individual’s
job responsibilities, (ii) the individual’s performance, including the expected
contribution of the executive officer to the Company’s goals, (iii) the
Company’s long-term needs and goals, including attracting and retaining key
management personnel, (iv) the Company’s competitive position, which includes
using third-party compensation survey data for executive positions at comparable
companies, and (v) consultation from an independent outside consultant. To the
extent determined to be appropriate, the Compensation Committee also considers
general economic conditions and the historic compensation levels of the
individual.

 

The stock option grants to each executive officer vest in three equal
installments over a three-year period commencing on the first anniversary of the
date of grant.

 

The following option grants to executives will be made at the closing price on
January 12, 2006:

 

Name

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   2006 Plan Stock
Option Grants

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Paul Tobin

   36,000

E. Y. Snowden

   72,000

Frederick von Mering

   33,000

William Wessman

   30,000

Karen A. Walker

   33,000

James Anderson

   17,100

Ersin Galioglu

   20,900

Thomas Erskine

   15,200