Exhibit (10)(cc)
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TO:
Executive Vice-President
 
Product Recovery/Pollution Control Technologies
   
FROM:
Raymond J. De Hont
   
SUBJECT:
FYE 2012 Management Incentive Plan

Incentive Level:

Participants in the Management Incentive Plan will be eligible for competitive
target bonuses as a percentage of salary as shown below:

Executive Vice President
35%

Bonuses will be considered and calculated based upon the attainment of the
Business Unit Profit Before Tax (PBT), Business Unit Net Sales (NS), and
Business Unit Return on Assets (ROA) targets for FYE 2012, with an add-on
component tied to Corporate Targets.  Business Unit Targets will make up 80% of
the overall bonus pool with the remaining 20% driven by the attainment of
Corporate Targets (Net Income and Net Sales).
 
1)         Business Unit Profit Before Tax (PBT):
 
Under the FYE 2012 Management Incentive Plan, the participant becomes eligible
for 70% of the potential bonus amount (at 100% performance) upon the attainment
of the PBT target of   $               .

The Multipliers based on Business Unit PBT attained are listed below:
Objective Achievement
 
Business Unit
PBT Multiplier
less than 75%
 
.00
 
75%
   
.35
 
80%
   
.42
 
85%
   
.49
 
90%
   
.56
 
95%
   
.63
 
100%
   
.70
 
105%
   
.7875
 
110%
   
.875
 
115%
   
1.05
 
120%
   
1.225
 
125%
   
1.40
 

 
 
 

 
 
1

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FYE 2012 Management Incentive Plan

When determining PBT the following items must be considered:

 

 1)   Bonuses for eligible employees must be fully accrued. 2)   Beginning and
ending reserves will be considered to determine PBT.  All items must be fully
reserved at the end of the fiscal year (bad debts, obsolete inventory,
advertising, marketing, warranty, etc.).

 
2)  
Business Unit Net Sales:

Under the FYE 2012 Management Incentive Plan, the participant becomes eligible
for 15% of the potential bonus amount (at 100% performance) upon the attainment
of the Business Unit Net Sales target of $               . The participant will
not qualify for this component of the FYE 2012 Management Incentive Plan if the
payment threshold for the Business Unit PBT target is not attained.

The Multipliers based on Business Unit Net Sales attained are listed below:

Objective Achievement
 
Business Unit
Net Sales Multiplier
less than 85%
 
0.00
 
85%
   
.075
 
90%
   
.10
 
95%
   
.125
 
100%
   
.15
 
105%
   
.1687
 
110%
   
.1875
 
115%
   
.225
 
120%
   
.2625
 
125%
   
.30
 

3)         Business Unit Return on Assets (ROA):

Under the FYE 2012 Management Incentive Plan, the participant becomes eligible
for 15% of the potential bonus amount (at 100% performance) upon the attainment
of the Business Unit ROA target of        %.  The participant will not qualify
for this component of the FYE 2012 Management Incentive Plan if the payment
threshold for the Business Unit PBT target is not attained.

 
 
 
 
 
 
 
 
 
 

 

 
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FYE 2012 Management Incentive Plan

 
The Multipliers based upon actual Business Unit ROA are listed below:
Objective Achievement
 
Business Unit
ROA Multiplier
less than 75%
 
0.00
 
75%
   
.075
 
80%
   
.09
 
85%
   
.105
 
90%
   
.12
 
95%
   
.135
 
100%
   
.15
 
105%
   
.169
 
110%
   
.1875
 
115%
   
.225
 
120%
   
.2625
 
125%
   
.30
 

4)         Corporate Targets

The Corporate Targets make up 20% of the overall bonus pool and are comprised of
Corporate Net Income (70%) and Corporate Net Sales (30%).

The participant will not qualify for this component of the FYE 2012 Management
Incentive Plan if the actual Corporate Net Income is less than 75% of the
Corporate Net Income Target.

a)  
Corporate Net Income Multiplier

Under the FYE 2012 Management Incentive Plan, the participant becomes eligible
for 70% of the potential Corporate bonus amount (at 100% performance) upon the
attainment of the Corporate Net Income target of $                 .

 
 
 
 
 
 
 
 
 

 
 
 
 
 
 

 

 
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FYE 2012 Management Incentive Plan

The Multipliers based upon actual Corporate Net Income are listed below:

   
Corporate Net
Objective Achievement
 
Income Multiplier
less than 75%
 
0.00
 
75%
   
.35
 
80%
   
.42
 
85%
   
.49
 
90%
   
.56
 
95%
   
.63
 
100%
   
 .70
 
105%
   
 .7875
 
110%
   
  .8750
 
115%
   
1.05
 
120%
   
1.225
 
125%
   
1.40
 

b)  
Corporate Net Sales Multiplier

Under the FYE 2012 Management Incentive Plan, the participant becomes eligible
for 30% of the potential Corporate bonus amount (at 100% performance) upon the
attainment of the Corporate Net Sales target of $                .

The Multipliers based upon actual Corporate Net Sales are listed below:

   
Corporate Net Sales
Objective Achievement
 
Multiplier
less than 85%
 
0.00
 
85%
   
.15
 
90%
   
.20
 
95%
   
.25
 
100%
   
.30
 
105%
   
 .3375
 
110%
   
 .375
 
115%
   
.45
 
120%
   
 .525
 
125%
   
 .60
 

 
 
 
 
 
 
 
 
 
 
 
 
 

 

 
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FYE 2012 Management Incentive Plan

Bonus Amount:

 
(Salary x Incentive Level x 80%) x (Business Unit PBT Multiplier)

 
+

 
(Salary x Incentive Level x 80%) x (Business Unit Net Sales Multiplier)

 
+

 
(Salary x Incentive Level x 80%) x (Business Unit ROA Multiplier)

 
+

 
(Salary x Incentive Level x 20%) x (Corporate Net Income Multiplier)

 
+

 
(Salary x Incentive Level x 20%) x (Corporate Net Sales Multiplier)

Note:

This Management Incentive Plan (“Plan”) is not a contract that entitles you to
an award if the Plan objectives for the fiscal year are met; rather, this Plan
is a discretionary short term cash bonus plan administered by the Compensation
and Management Development Committee of the Board of Directors (the
“Committee”). The Committee retains the sole and absolute discretion to deny and
not pay bonuses under the Plan and to reduce bonuses payable under the Plan,
notwithstanding the attainment of objectives under the Plan; to increase or pay
bonuses under the Plan, even if the objectives under the Plan have not been met;
and to further condition, modify or amend the objectives and conditions of
eligibility under the Plan. The Committee also retains the sole discretion with
respect to awards to be paid, if any, in connection with separations from
employment that occur during a Plan year.

 
 
 
 
 
 
 
 
 

 

 
 

 
 
 

 

 
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FYE 2012 Management Incentive Plan

 
Examples of Individual Award with Salary of $100,000 and Incentive Level of 35%:

Example #1:
 
Goals achieved:
 

 
1)
Business Unit PBT
=
100%
   
2)
Business Unit Net Sales
=
100%
   
3)
Business Unit ROA
=
100%
   
4)
Corporate Net Income
=
100%
   
5)
Corporate Net Sales
=
100%
             

Business Unit Bonus amount
=
 
($100,000 x 35% x .8)
=
$28,000
           
Business Unit PBT
=
 
($28,000 x .7)
=
$19,600
+
         
Business Unit Net Sales
=
 
($28,000 x .15)
=
$4,200
+
         
Business Unit ROA
=
 
($28,000 x .15)
=
$4,200
Business Unit Bonus
=
     
$28,000
           
Corporate Net Income Bonus amount
=
 
($100,000 x 35% x .2) x .7
=
$4,900
Corporate Net Sales Bonus amount
=
 
($100,000 x 35% x .2) x .3
=
$2,100
Corporate Bonus
=
     
$7,000
           
Business Unit Bonus + Corporate Bonus
=
 
$35,000
   

 
Example #2:  No Business Unit Bonus as 75% threshold on Business Unit PBT was
not reached
 
Goals achieved:
 

 
1)
Business Unit PBT
=
70%
   
2)
Business Unit Net Sales
=
100%
   
3)
Business Unit ROA
=
100%
   
4)
Corporate Net Income
=
80%
   
5)
Corporate Net Sales
=
100%
             

Business Unit Bonus amount
=
  
($100,000 x 35% x .0)
=
$0
           
Business Unit PBT
=
 
($0 x .00)
=
$0
+
         
Business Unit Net Sales
=
 
($0 x .15)
=
$0
+
         
Business Unit ROA
=
 
($0 x .15)
=
$0
Business Unit Bonus
=
     
$0
           
Corporate Net Income Bonus amount
=
 
($100,000 x 35% x .2) x .42
=
$2,940
Corporate Net Sales Bonus amount
=
 
($100,000 x 35% x .2) x .3
=
$2,100
Corporate Bonus
=
     
$5,040
           
Business Unit Bonus + Corporate Bonus
=
 
$5,040
   

 
 
 
 
 
 
 
 

 
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FYE 2012 Management Incentive Plan

Example #3:
 
Goals achieved:
 

 
1)
Business Unit PBT
=
80%
   
2)
Business Unit Net Sales
=
125%
   
3)
Business Unit ROA
=
115%
   
4)
Corporate Net Income
=
100%
   
5)
Corporate Net Sales
=
100%
             

Business Unit Bonus amount
=
 
($100,000 x 35% x .8)
=
$28,000
           
Business Unit PBT
=
 
($28,000 x .42)
=
$11,760
+
         
Business Unit Net Sales
=
 
($28,000 x .3)
=
$8,400
+
         
Business Unit ROA
=
 
($28,000 x .225)
=
$6,300
Business Unit Bonus
=
     
$26,460
           
Corporate Net Income Bonus amount
=
 
($100,000 x 35% x .2) x .7
=
$4,900
Corporate Net Sales Bonus amount
=
 
($100,000 x 35% x .2) x .3
=
$2,100
Corporate Bonus
=
     
$7,000
           
Business Unit Bonus + Corporate Bonus
=
 
$31,500
   

Example #4:
 
Goals achieved:
 

 
1)
Business Unit PBT
=
125%
   
2)
Business Unit Net Sales
=
125%
   
3)
Business Unit ROA
=
150%
   
4)
Corporate Net Income
=
125%
   
5)
Corporate Net Sales
=
125%
             

Business Unit Bonus amount
=
 
($100,000 x 35% x .8)
=
$28,000
           
Business Unit PBT
=
 
($28,000 x 1.40)
=
$39,200
+
         
Business Unit Net Sales
=
 
($28,000 x .30)
=
$8,400
+
         
Business Unit ROA
=
 
($28,000 x .30)
=
$8,400
Business Unit Bonus
=
     
$56,000
           
Corporate Net Income Bonus amount
=
 
($100,000 x 35% x .2) x 1.4
=
$9,800
Corporate Net Sales Bonus amount
=
 
($100,000 x 35% x .2) x .6
=
$4,200
Corporate Bonus
=
     
$14,000
           
Business Unit Bonus + Corporate Bonus
=
 
$70,000
   

 
 
 
 
 
 
 
 
 
 
 
 
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