Exhibit 10.7

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

          This Amended Executive Employment Agreement (“Agreement”) is made as
of the 1st day of April, 2010 (the “Effective Date”) by and between INDUSTRIAL
SERVICES OF AMERICA, INC., a Florida corporation located at 7100 Grade Lane,
Building #1, Louisville, Kentucky 40213 (the “Company”) and BRIAN DONAGHY, an
individual residing at 18811 Weatherford Circle, Louisville, Kentucky 40245
(“the “Executive”).

RECITALS

          The Company desires to employ the Executive, and the Executive desires
to be employed by the Company upon the terms and conditions set forth in this
Agreement.

          NOW THEREFORE, in consideration of (a) the Executive’s employment with
the Company as its President and Chief Operating Officer, (b) the compensation
paid to the Executive and the benefits provided to the Executive in connection
with such employment, (c) the Executive’s use of the equipment, supplies,
facilities and other resources of the Company and (d) the opportunity provided
to Executive by the Company to acquire or use information relating to or based
upon the Company’s business and to work and develop in the industry and lines of
business engaged in by the Company from time-to-time or for which the Executive
is hereby employed hereunder, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

ARTICLE 1
INTERPRETATION OF THIS AGREEMENT

          Article 1.1 Defined Terms. As used herein, capitalized terms when used
in this Agreement shall have the meanings set forth in Annex 1 attached hereto
and made a part hereof and as defined in this Agreement.

          Article 1.2 Interpretation. The words “herein,” “hereof,” “hereunder”
and other words of similar import refer to this Agreement and not any particular
section, paragraph, subparagraph or clause contained in this Agreement. Wherever
from the context it appears appropriate, each term stated in either the singular
or plural shall include the singular and the plural, and pronouns stated in
masculine, feminine or neuter gender shall include the masculine, feminine and
the neuter.

ARTICLE 2
TERM OF EMPLOYMENT

          ARTICLE 2.1 Duration. The Company agrees to employ the Executive, and
the Executive agrees to be so employed for an Initial Term (“Initial Term”)
commencing on July 1, 2010, and ending on the Termination Date (as defined
below) or June 30, 2015, whichever shall first occur. The Executive’s employment
may be terminated earlier or renewed, as herein provided, pursuant to this
Article. At any time more than ninety (90) days prior to the expiration of the
Initial Term or any Renewal term, respectively, either the Company or Executive
may give notice of nonrenewal and this Agreement shall terminate at the end of
such term. If a notice of nonrenewal is not given, Executive’s employment under
the terms of this Agreement shall be extended for an additional one year period.
(The one year period shall be defined as

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commencing on the fifth anniversary of the Effective Date and continuing for the
next three hundred and sixty five (365) consecutive calendar days.)

          ARTICLE 2.2 Termination. The Executive’s employment may be terminated
on any one or more of the following dates: (a) the date specified in a Notice of
Termination given by the Executive in connection with his voluntary termination
(which shall not be less than thirty (30) days from the date such Notice of
Termination is given, unless a shorter period is subsequently requested by the
Company after receipt of such Notice of Termination); (b) the date specified in
a Notice of Termination given by the Board of Directors of the Company to the
Executive stating that the Executive’s employment is being Terminated for Cause;
(c) the date specified in a Notice of Termination given by the Board of
Directors to the Executive stating that the Executive’s employment with the
Company is terminated without cause; (d) the date of the Executive’s death; or
(e) the date specified in a Notice of Termination given by the Company at a time
after which the Executive has become Incapacitated in connection with a
termination of the Executive’s employment by reason of his Incapacity. Except as
provided in Article 2.4, all obligations of the Company to Executive shall
terminate as of the Termination Date.

          ARTICLE 2.3 Salary and Benefits. During the Employment Period:

          ARTICLE 2.3.1 The Company will pay the Executive a Base Salary at the
rate of $3,000.00 per week (“Base Salary”), payable in installments consistent
with the Company’s normal payroll schedule, subject to applicable withholding
and other taxes and other required deductions for welfare, fringe benefits and
withholding and those deductions requested by Executive. Effective the 1st day
of January in 2009 the Company shall pay the Executive a Base Salary of
$3,846.15 per week and every subsequent year during the Initial Term, the Base
Salary shall be increased by the cost of living index increase for the
Metropolitan Louisville area. However, in no event shall Executive’s Base Salary
be decreased as a result of a decrease in said cost of living index.

          ARTICLE 2.3.2 The Executive shall be entitled to a bonus based as a
Level 1 employee under the Management Incentive Plan (the “MIP”), dated July 1,
2010, for calendar year 2010 provided he remains employed by the Company during
the entirety of calendar year 2010. Such bonus shall be payable in a single lump
sum payment as soon as practicable following December 31, 2010 subject to
applicable withholding and other taxes and other required deductions for
welfare, fringe benefits and withholding and those deductions requested by
Executive. Beginning in 2011 and for the remainder of the Initial Term,
Executive shall participate in the MIP or such similar incentive arrangement as
may be mutually agreeable to Company and Executive with the timing for payment
being as soon as practicable following December 31st of the applicable year and
maintenance of employment by Executive during the entirety of the applicable
year. See Exhibit A, attached hereto and incorporated herein by reference,
outlining the MIP.

          ARTICLE 2.3.3 The Executive shall be entitled to receive a bonus as a
Level 1 employee based on satisfaction of the criteria under the Executive
Incentive Plan (the “EIP”) dated July 1, 2010provided he remains employed by the
Company during the entirety of calendar year 2010. Such bonus shall be payable
(i) in the form of Company common stock in one delivery of a stock certificate,
(ii) cash, or (iii) cash and common stock, at the election of Executive in
accordance with the EIP, as soon as practicable following December 31, 2010
subject to applicable withholding and other taxes and other required deductions
for welfare, fringe benefits and withholding and those deductions requested by
Executive. Beginning in 2011 and for the remainder of the Initial Term,
Executive shall participate in the EIP or such similar

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incentive arrangement as may be mutually agreeable to Company and Executive with
the timing for payment being as soon as practicable following December 31st of
the applicable year and maintenance of employment by Executive during the
entirety of the applicable year. See Exhibit B, attached hereto and incorporated
herein by reference, outlining the EIP.

          ARTICLE 2.3.4 The Executive shall be entitled to receive as a bonus up
to ten thousand (10,000) shares of the Company’s common stock per annum
commencing in 2011 for calendar year 2010, and thereafter in 2012, 2013, 2014,
2015 and 2016 for calendar years 2011, 2012, 2013, 2014 and 2015, respectively,
resulting in a maximum of fifty thousand (50,000) shares of the Company common
stock over the Initial Term (but in no event greater than 10,000 shares in any
one calendar year) based on satisfaction of the return on net assets (“RONA”)
criteria set forth in Exhibit C attached hereto and incorporated herein by
reference. The RONA shall be calculated in the same manner as RONA is determined
under the MIP. Such bonus shall be payable in the form of Company common stock
in one delivery of a stock certificate, as soon as practicable following
December 31, 2010 subject to applicable withholding and other taxes and other
required deductions.

          ARTICLE 2.3.5 The Executive shall be entitled to receive as a bonus up
to one hundred and fifty thousand (150,000) shares of the Company’s common stock
over the Initial Term based on satisfaction of the 5 year (2010-2014) average
return on net assets (“RONA”) criteria set forth in Exhibit B attached hereto
and incorporated herein by reference. The RONA shall be calculated in the same
manner as RONA is determined under the MIP. Such bonus shall be payable in the
form of Company common stock in one delivery of a stock certificate, as soon as
practicable following December 31, 2014 subject to applicable withholding and
other taxes and other required deductions.

          ARTICLE 2.3.6 The Executive will be entitled to participate in all
medical and hospitalization, group life insurance, retirement, and any and all
other welfare and fringe benefit plan as are from time to time provided by the
Company to its executive employees, subject to the provisions of such plans,
including, without limitation, eligibility criteria and contribution
requirements, as the same may be in effect from time to time. The Company shall
provide Executive with a term life insurance policy with a death benefit not to
exceed $50,000.00, with the Executive to name his beneficiary(ies).

          ARTICLE 2.3.7 The Executive will be entitled to a maximum of three (3)
weeks paid vacation during each calendar year (prorated for any partial year
during the term) commencing in 2007 to be taken at such times and intervals as
shall be determined by the Executive, and approved by the Chief Executive
Officer of the Company, which approval shall not be unreasonably withheld and
provided that the timing of such vacation shall not interfere with the
Executive’s performance of his duties hereunder. Unused vacation shall not be
accrued or reimbursed to Executive.

          ARTICLE 2.3.8 The Executive shall be entitled to reimbursement of
reasonable business expenses incurred by the Executive (subject to Executive’s
submission of appropriate substantiation in accordance with the rules in place
for other executives of the Company). In addition thereto, and not in
substitution thereof, the Company shall provide Executive with a monthly car
payment allowance (the amount of which shall not exceed $1,000.00 per month)
which shall be used by Executive to acquire an automobile selected by the
Executive, with the concurrence of the Company, for use by the Executive during
his employment by the Company. All normal operating expenses incurred in
connection with the operation of the automobile shall be borne by the Executive.
The Executive shall, at his own expense, provide for comprehensive

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insurance coverage for the vehicle, naming Company as a named insured. Executive
shall be responsible for any damage due to neglect or misuse by Executive.

          ARTICLE 2.3.9 During the Initial Term of this Agreement Executive
shall be entitled to receive twenty thousand (20,000) shares of the Company’s
common stock, delivery by Company to the Executive no later than April 1,
following the close of Company’s books for the previous calendar year, provided
that the following conditions have been met: (i) the Executive has completed one
(1) year of employment; and, (ii) the Company’s EBIDTA (as determined by
Generally Accepted Accounting Principles) exceeds four million five hundred
thousand dollars ($4,500,000.00) for the applicable Measurement Period, which
shall also take into account the effect the issuance of said shares shall have
upon the calculation of the Company’s EBIDTA. In no event whatsoever shall the
entitlement of the Executive to qualify for shares of the Company under this
Agreement provide for the Executive to receive more than one hundred forty
thousand (140,000) shares of the common stock of the Company (including the
shares received by Executive as his signing bonus in Article 2.3.2), all of
which shall be subject to the anti-dilution provisions set forth in Article
2.3.7 below.

          ARTICLE 2.3.10 The Company represents and the Executive acknowledges
that he shall be receiving “restricted” Shares subject to a one (1) year holding
period and further subject to the provisions of Rule 144 under the Securities
Act of 1933.

Executive agrees that this Agreement and the rights, interests and benefits
under it shall not be assigned, transferred , pledged, or hypothecated in any
way by Executive or any other person claiming under Executive by virtue hereof.
Such rights, interest or benefits shall not be subject to execution, attachment,
or similar process. Any attempted assignment, transfer, pledge, or
hypothecation, or other disposition of the shares granted pursuant to this
Agreement or of such rights, interest, and benefits contrary to the preceding
provision, or the levy or any attachment or similar process thereupon, shall be
null and void and without any legal effect.

          The Executive represents and warrants that he is receiving the Shares
for investment and not with a view to distribution thereof and understands and
acknowledges that in the absence of an effective Registration Statement as to
the Shares the Stock Certificate(s) representing the Shares shall bear the
following legend:

          The Shares represented by this certificate have not been registered or
qualified for sale under the Securities Act of 1933, as amended (the “Act”, or
any state securities or blue sky laws, and may not be sold, transferred or
otherwise disposed of except pursuant to an exemption from registration or
qualification there under. The Company may require, as a condition to the
transfer of this certificate, an opinion of counsel satisfactory to the Company
to the effect that such transfer will not be in violation of the Act or any such
laws.

          The number of shares of Common Stock (the “Shares”) shall be
proportionately increased in the event that the Company causes to be issued
additional Shares in the form of a stock dividend, stock splits or other such
reclassification; or conversely, proportionately decreased in the event of a
reverse split or reclassification.

          ARTICLE 2.4 Severance Pay.

          ARTICLE 2.4.1 (a) If the Executive’s employment ends as the result of
a Termination Without Cause, the Executive shall be entitled to receive his Base
Salary and Welfare Plan Benefits (as defined below) through the Initial Term or
Renewal Term, as applicable. In addition, Executive is entitled to receive the
Company’s common stock to which Executive would be otherwise entitled under and
upon satisfaction of the conditions set forth in Article 2.3.6 throughout the
Initial Term;

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                    (b) If the Executive’s employment ends as the result of
Executive’s Incapacity, Executive shall be entitled to receive either available
worker’s compensation benefits or insured benefits as provided by the Company’s
disability policy. In addition, Executive is entitled to receive the Company’s
common stock to which Executive would be otherwise entitled under and upon
satisfaction of the conditions set forth in Article 2.3.6 for the year in which
Executive’s employment terminates as the result of Executive’s Incapacity (and
shall not be entitled to receive any additional common stock for any years after
the year in which Executive’s employment terminated as the result of Executive’s
Incapacity);

                    (c) If the Executive’s employment ends as the result of the
death of Executive, Executive shall be entitled to receive his Base Salary and
Welfare Plan Benefits through the date of death. In addition, Executive (or his
estate) is entitled to receive the Company’s common stock to which Executive
would be otherwise entitled under and upon satisfaction of the conditions set
forth in Article 2.3.6 for the year in which Executive’s employment terminates
as the result of Executive’s death (and shall not be entitled to receive any
additional common stock for any years after the year in which Executive’s
employment terminated as the result of Executive’s death);

                    (d) If the Executive’s employment ends as the result of
Voluntary Termination, Executive shall be entitled to receive his Base Salary
and Welfare Plan Benefits through the Termination Date. In addition, Executive
is entitled to receive the Company’s common stock to which Executive would be
otherwise entitled under and upon satisfaction of the conditions set forth in
Article 2.3.6 for the year in which Executive’s employment terminates as the
result of Voluntary Termination (and shall not be entitled to receive any
additional common stock for any years after the year in which Executive’s
employment terminated as the result of Voluntary Termination); or

                    (e) If the Executive’s employment ends as the result of
Termination for Cause, Executive shall be entitled to receive his Base Salary
and Welfare Plan Benefits through the Termination Date. In addition, Executive
is entitled to receive the Company’s common stock to which Executive would be
otherwise entitled under and upon satisfaction of the conditions set forth in
Article 2.3.6 for the year in which Executive’s employment terminates as the
result of Termination for Cause (and shall not be entitled to receive any
additional common stock for any years after the year in which Executive’s
employment terminated as the result of Termination for Cause).

          ARTICLE 2.4.2 In those instances where the Company owes Executive
payments after the Termination Date, the payments to be made by the Company to
the Executive under this Article 2.4 shall be made in installments, and on the
payment dates, during the Severance Period (as defined below) on which Base
Salary would have otherwise been paid had the Executive’s employment not been
terminated. Upon the making of the last of such payment, the Company will have
no further Severance Payment obligation to the Executive. All payment shall be
subject to applicable withholding and other taxes.

          ARTICLE 2.4.3 For so long as the Company is required to make the
severance payments described in this Article 2.4 (the “Severance Period”) and
subject to the provisions of Article 2.4.4 below, the Company will, in addition
to such payment, provide or arrange to provide the Executive with benefits
substantially similar to those which the Executive was receiving or entitled to
receive under the Company’s life, accident, dental and group health insurance
plans, 401K, FSA or any similar health or welfare plans in which the Executive
was participating immediately prior to the Termination Date (“Welfare Plan
Benefits”) at a cost to the

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Company which is not greater than the cost to him in effect immediately prior to
the Termination Date; provided, that to the extent any such coverage is
prohibited, whether by contract, any judicial or legislative authority or
otherwise, the Company shall in its sole discretion make alternative
arrangements to provide the Executive with Welfare Plan Benefits or provide the
Executive with a payment in an amount equal to the cost to the Company of
purchasing the Welfare Plan Benefits immediately prior to the Termination Date.
Benefits otherwise receivable by the Executive pursuant to the preceding
sentence shall be reduced to the extent comparable benefits are actually
received from another employer by the Executive’s participation in, or receipt
of, any such comparable benefits.

          ARTICLE 2.4.4 The Executive’s right to receive, and the Company’s
obligation to pay and provide any of the payments and benefits provided for in
this Article 2.4 shall be subject to (a) the Executive’s compliance with, and
observance of, all of the Executive’s obligations under this Agreement that
continue beyond the Termination Date, and (b) the Executive’s execution,
delivery, and non-revocation of, and performance under, a general release in
favor of the Company and its Affiliates in a form attached hereto as Exhibit
“B”.

ARTICLE 3
PROPERTY AND BUSINESS OF THE COMPANY

          ARTICLE 3.1 Nondisclosure. During the Employment Period and during the
periods described in the last sentence of this Article 3.1, the Executive (a)
will receive and hold all Company information in trust and in strict confidence,
(b) will not disclose and will use commercially reasonable efforts to protect
Company information from disclosure, (c) will not, directly or indirectly, use
or assist other to use any Confidential Information, and (d) will not, directly
or indirectly, use, disseminate or otherwise disclose any Company information or
Confidential Information to any third party, except in the case of each of (a)
through (d) above, as required by the Executive’s duties in the course of his
employment by the Company or as required by applicable law. The provisions of
this Article 3.1 shall survive the Termination Date.

          ARTICLE 3.2 Books and Records. All books, records, reports, writings,
notes, inventions, notebooks, computer programs, sketches, drawings, blueprints,
prototypes, formulas, patents, photographs, negatives, models, equipment,
chemicals, reproductions, proposal, flow sheets, supply contract, customer lists
and other documents and/or things relating to the business of the Company, its
Affiliates or any of their respective Subsidiaries (including but not limited to
any of the same embodying or relating to any actual Confidential information or
trade secrets), whether prepared by the Executive or otherwise coming into the
Executive’s possession, shall be the exclusive property of the Company, its
Affiliates or such possession, shall be the exclusive property of the Company,
its Affiliates or such Subsidiary, as the case may be (all of which is defined
herein as “Confidential Information”), and shall not be copied, duplicated,
replicated, transformed, modified or removed from the premises of the Company
except pursuant to the Company on the termination Date or on the Company’s
request at any time.

          ARTICLE 3.3 Inventions and Patents. The Executive agrees that all
inventions, innovations or improvements related to the Company’s or any of its
respective Subsidiaries’ method of conducting its business (including new
contributions, improvements, ideas and discoveries, whether patentable or not)
conceived or made by him during the Employment Period with the Company belong to
the Company and the Executive hereby assigns all of such inventions, innovations
and improvements, contributions, idea and discoveries to the Company.

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The Executive will promptly disclose such inventions, innovations and
improvements, contributions, ideas and discoveries to the Board and perform all
actions reasonably requested by the Board to establish and confirm such
ownership in the Company.

          ARTICLE 3.4 Non-Competition. During the Employment period (which shall
be deemed to include the Severance Period, if any, for purposes of this Article
3) and for a period of twelve (12) months from and after the later of the last
payment made during the Severance Period or the Termination Date (collectively,
the “Non-Competition Period”), the Executive will not directly or indirectly,
(i) engage in any business which is the same or substantially the same as any
business of the Company (the “Restricted Business”) as of the date of the
Executive’s termination, or (ii) have any interest in any other business
venture, whether as a debt or equity holder, employee, officer, director,
director, member, manager, partner, agent, security holder, consultant or
otherwise, that directly or indirectly is engaged in the Restricted Business,
within fifty (50) direct miles of any geographic area in which the Company, its
Affiliates or any of their respective Subsidiaries, engage in the Company’s
business operations as of the Termination Date. Provided, that nothing in
Article 3.4 shall be deemed to prevent the Executive from acquiring and owning
solely as a passive investment, equity securities (including options to purchase
equity securities) in an aggregate of less than three percent (3%) in the
aggregate of the equity securities of any class of any issuer that are
registered under Section 12(b) or 12(g) of the Securities Exchange Act of 1934,
and are listed or admitted for trading on any United States national securities
exchange or are quoted on the National Association of Securities Dealer
Automated Quotations System or any similar system of automated dissemination of
quotations of securities prices in common use, or so long as the Executive is
not a member of any “control group” (within the meaning of the rules and
regulation of the United States Securities and Exchange Commission) of any such
issuer.

          ARTICLE 3.5 Non-Solicitation of Employees. During the Non-Competition
Period, the Executive shall not, directly or indirectly, (a) solicit for
employment or employ (or attempt to solicit for employment or employ), for the
Executive or on behalf of any other Person (other than the Company or any of its
respective Subsidiaries) provided that nothing shall prevent the Executive from
making a general solicitation not targeted at the Company’s or any of its
respective Subsidiaries’ employees, any employee of the Company, its Affiliates
or any of their respective Subsidiaries, or any Person who was such an employee
during a one year (1) period preceding or succeeding the Termination Date, or
(b) otherwise encourage any such employee to leave his or her employment with
the Company, its Affiliates or any of their respective Subsidiaries.

          ARTICLE 3.6 Non-Solicitations of Others. During the Non-Competition
Period, the Executive shall not, directly or indirectly, (a) solicit, call on,
or transact or engage in the Restricted Business with (or attempt to do any of
the foregoing with respect to) any customer, distributor, vendor, supplier or
agent with whom the Company, its Affiliates or any of their respective
Subsidiaries shall have dealt, or that the Company, its Affiliates or any of
their respective Subsidiaries shall have actively sought to deal, at any time
during a one year (1) period preceding or succeeding Executive’s Termination
Date for or on behalf of the Executive or any other Person (other than the
Company, its Affiliates or any of their respective Subsidiaries) in connection
with a Restricted Business or (b) encourage any such customer, distributor,
vendor, supplier or agent to cease, in whole or in part, its business
relationship with the Company, its Affiliates or any of their respective
Subsidiaries.

          ARTICLE 3.7 Covenants Reasonable. The Executive acknowledges and
agrees

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that the covenants provided for in this Article 3 are reasonable and necessary
in terms of scope, duration, area, business and all other matters to protect the
Company’s and its respective Subsidiaries’ legitimate business interests, which
include, among others, protecting (a) valuable confidential business
information, (b) substantial relationships with customers throughout the
Restricted Area and (c) goodwill with customers, employees, distributors,
suppliers and vendors associated with respective businesses.

          ARTICLE 3.8 Construction; Enforceability. To the extent that any
provision contained in this Article 3 may later be adjudicated by a court to be
too broad to be enforced with respect to such provision’s scope, duration, area,
line of business or any other matter, such area, line of business or other
matter, as the case may be, so as to be valid and enforceable to the maximum
extent compatible with the applicable laws of such jurisdiction and this Article
3 as drafted, such amendment is only to apply with respect to the operation of
such provision in the applicable jurisdiction in which such adjudication is
made.

ARTICLE 4
MISCELLANEOUS

          ARTICLE 4.1 Notices. Any notice, request, demand, claim or other
communication hereunder that is required to be made in writing shall be deemed
duly given on the fifth (5th) business day after if it sent by registered or
certified mail, return receipt requested, postage prepaid, or, on the next
business day after it is sent by a reputable overnight courier such as Federal
Express, and addressed to the intended recipient as set forth below:

 

 

 

If to the Executive:

 

To the Executive’s last known address as set forth in the Company’s payroll
records.

 

 

 

With a Copy to:

 

Stuart L. Adams, Jr.
8009 New LaGrange Road, Suite 1
Louisville, KY 40222

 

 

 

If to the Company:

 

Industrial Services of America, Inc.
7100 Grade Lane
Louisville, KY 40213
Attention: Alan Schroering

 

 

 

With a copy to:

 

Bruce D. Atherton
Bruce D. Atherton & Associates, PLLC
455 South Fourth Street
Starks Building, Suite 1450
Louisville, KY 40202

          Either party hereto may send any notice, request demand, claim or
other communication hereunder to the intended recipient at the address set forth
above using any other means (including personal delivery messenger service,
telecopy, telex, ordinary mail or electronic mail), but no such notice, request,
demand, claim or other communications shall be deemed to have been duly given
unless and until it actually is received by the intended recipient; provided,
that such communication is also sent by registered or certified mail or by
reputable overnight courier within five business days of the original
communication. Either party hereto may change the address to which notices,
requests, demand, claims, and other communications here under are to be
delivered by giving the other party notice in the manner herein set forth.

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          ARTICLE 4.2 Severability. Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision or such application in any other jurisdiction, but this
Agreement will be reformed, construed and enforced in such jurisdiction as if
such invalid, illegal or unenforceable provision had never been contained
herein; provided, that if any of the provisions shall be deemed of Article 3 are
held to be invalid, illegal or unenforceable, then such provision shall be
deemed amended in the manner and to the extent provided for Article 3.8 above.

          ARTICLE 4.3 Complete Agreement. This Agreement and all exhibits and
annexes attached hereto embody the complete agreement and understanding among
the parties relating to the subject matter hereof and supersedes and preempts
any prior understanding, agreements or representations by or among the parties,
written or oral, which may have related to the subject matter hereof in any way.

          ARTICLE 4.4 Counterparts. This Agreement may be executed on separate
counterparts, each of which is deemed to be an original and all of which taken
together constitute one and the same agreement. Any telecopied signature shall
be deemed a manually executed and delivered original.

          ARTICLE 4.5 Successors and Assigns. This Agreement may not be assigned
by either the Company or the Executive, except that the Company may assign the
Agreement to a Person who purchases all or substantially all of the assets of
the Company, by merger or asset purchase or lease agreement. Subject to the
preceding sentence, this Agreement is intended to bind and inure to the benefit
of and be enforceable by the Executive and the Company and their respective
successors and assigns (and, in the case of the Executive, heirs and personal
representatives), except that (a) Executive may not assign any of his rights or
delegate any of his obligations hereunder and (b) if this Agreement is assigned
by the Company in connection with the assignment of all or substantially all of
the Company’s assets, the terms “Restricted Business,” “Restricted Area”,
“business” and other terms that govern the scope of the restrictions on the
Executive’s conduct will be defined with reference to the business of the
Company at the time of such assignment or Termination Date, whichever shall
first occur, and will not be expanded by virtue of the assignment of this
Agreement by the Company.

          ARTICLE 4.6 Equitable Remedies. The Executive acknowledges and agrees
that the Company would not have an adequate remedy at law in the event of the
provisions of Article 3 set above are not performed in accordance with their
specific terms, or are breached or are threatened to be breached. Accordingly,
the Executive agrees that the Company shall be entitled, in addition to any
other rights and remedies which may be available to it, to an injunction or
injunctions to prevent breaches of Article 3 above and to enforce specifically
the terms and provisions thereof in any action instituted in any court of
competent jurisdiction, and without any requirement to post a bond or other
security.

          ARTICLE 4.7 Choice of Law: Jurisdiction and Venue. This Agreement
shall be governed and construed in accordance with the law of the Commonwealth
of Kentucky without regard to conflicts of laws principles thereof and all
questions concerning the validity and construction hereof shall be determined in
accordance with the law of said state.

          ARTICLE 4.8 Dispute Resolution.

          Article 4.8.1 In consideration of the compensation and benefits paid
to Executive by the

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Company, the receipt and sufficiency of which is hereby acknowledged, and for
other good and valuable consideration, Executive agrees that all legal claims or
disputes arising out of or related to Executive’s employment and/or termination
with the Company must be submitted to binding arbitration and that binding
arbitration will be the sole and exclusive final remedy for resolving any such
claim or dispute. Executive also agrees that any arbitration between the Company
and Executive is of an individual claim and that any claim subject to
arbitration will not be arbitrated on a class-wide basis. Executive agrees that
the American Arbitration Association in accordance with its National Rules for
the resolution of Employment Disputes shall administer any arbitration between
the Company and Executive and judgment on the award rendered by the Arbitrator
may be entered in any court having jurisdiction thereof. Such arbitration shall
take place in the City of Louisville, in the Commonwealth of Kentucky. The
Company and the Executive shall share equally in the administrative fees for
arbitration such as filing fees, hearing fees, and hearing room rental fees.

          Legally protected rights covered by this Article 4.8, regarding
Dispute Resolution, are all legal claims arising out of or relating to
employment with the Company, including: claims for wages or other compensation;
claims for breach of any contract, covenant or warranty (expressed or implied);
tort claims (including, but not limited to, claims for physical, mental or
psychological injury, but excluding statutory workers compensation claims);
claims for wrongful termination; sexual harassment; discrimination (including,
but not limited to, claims based upon race, sex, religion, national origin, age,
medical condition or disability whether under federal, state or local law);
claims for benefits or claims for damages or other remedies under any employee
benefit program sponsored by the Company (after exhausting administrative
remedies under the terms of such plans); “whistleblower” claims under any
federal, state, or other governmental law, statute, regulation or ordinance; and
claims for retaliation under any law, statute, regulation or ordinance,
including retaliation under any worker compensation law or regulation; and
claims arising out of or relating to any employment contract (including this
Agreement), employment applications, the Company’s personnel manuals or policy
statements, or any other employment agreements.

          Executive understands and agrees that by entering into this Agreement,
Executive anticipates gaining the benefits of a speedy, impartial dispute
resolution procedure.

          4.8.2 Executive understands and agrees that the Company is engaged in
transactions involving interstate commerce and the Executive’s employment
involves such commerce. Executive agrees that the Federal Arbitration Act shall
govern the interpretation, enforcement, and proceeding under this Agreement. Any
decision of the arbitrator shall be enforceable in any federal or state court of
competent jurisdiction located in the County of Jefferson, State of Kentucky and
each party irrevocably submits to the personal and exclusive jurisdiction of
such court.

          4.8.3 Executive understands and agrees that the provisions of the
Agreement are severable and, should any provision be held unenforceable, all
others will remain valid, binding and fully enforceable. Executive agrees that
the arbitrator, and not any federal, state, or local court or agency shall have
the exclusive authority to resolve any dispute relating to the interpretation,
arbitrability, applicability, enforceability or formation of this Agreement,
including, but not limited to, any claim that all or any part of this Agreement
is void or voidable. If a court should determine that arbitration under this
Agreement is not the exclusive, final, and binding method for the Company and
the Executive to resolve disputes and/or that the decision and award of the
arbitrator is not final and binding as to some or all of the Executive’s claims,
the

--------------------------------------------------------------------------------

Executive must submit his claim to arbitration and pursue the arbitration to
conclusion before filing or pursuing any legal, equitable, or other legal
proceeding for any eligible claim in a court of competent jurisdiction.

          4.8.4 This Agreement to arbitrate shall survive the termination of
Executive’s employment. It can only be revoked or modified by mutual consent
evidenced by a writing signed by both parties that specifically state their
intent to revoke or modify this Agreement.

          ARTICLE 4.9 Amendment and Waivers. No provisions of this Agreement may
be amended or waived without the prior written consent of the parties hereto.
The waiver by either party to this Agreement of a breach of any provision of
this Agreement shall both be construed or operate as a waiver of any preceding
or succeeding breach of the same or any other term or provision or as a waiver
of any contemporaneous breach of any other term or provision or as a continuing
waiver of the same or any other term or provision.

          ARTICLE 4.10 Business Days. Whenever the terms of this Agreement call
for the performance of a specific act on a specified date, which date falls on a
Saturday, Sunday or legal holiday, the date for the performance of such act
shall be postponed to the next succeeding regular business day following such
Saturday, Sunday or legal holiday.

          ARTICLE 4.11 No Third Party Beneficiary. Except for the parties to
this Agreement and their respective successors and assigns, heirs and personal
representatives nothing expressed or implied in this Agreement is intended, or
will be construed, to confer upon or give any person other than the parties
hereto and their respective successors and assigns any rights or remedies under
or by reason of this Agreement.

[THE REMAINDER OF THIS PAGE
IS INTENTIONALLY LEFT BLANK]

--------------------------------------------------------------------------------

          IN WITNESS WHEREOF, the parties have executed this Agreement on the
day and year first above written.

 

 

 

 

EXECUTIVE

 

INDUSTRIAL SERVICES OF AMERICA, INC.

 

 

 

 

 

 

 

 

/s/ Brian Donaghy

 

By:

/s/ Harry Kletter

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

Brian Donaghy

 

 

Harry Kletter

COO

 

Title:

CEO

--------------------------------------------------------------------------------

ANNEX 1

1. Agreement:

          Shall mean the Amended Executive Employment Agreement executed by
Industrial Services of America, Inc. and Brian Donaghy effective July 1, 2010.

2. Company:

          Industrial Services of America, Inc., a Florida corporation, with its
principle place of business located at 7100 Grade Lane, Louisville Kentucky.

3. Effective Date:

          July 1, 2010

4. Employment Period:

          July 1, 2010, until June 30, 2015, unless otherwise terminated
pursuant to the terms and conditions of the Agreement.

5. Executive:

          Brian Donaghy.

6. Initial Term:

          August 2, 2007 until June 30, 2015, unless otherwise terminated
pursuant to the terms and conditions of the Agreement.

7. Incapacitation, Incapacitated, Incapacity:

          Shall mean that a qualified physician attending the Executive shall
have determined that said Executive is unable to attend to his personal affairs
or the business affairs of the Company on a day-to-day basis or a Court of
Competent jurisdiction determines the Executive is unable to fulfill his duties
to the Company under the Agreement.

8. Measurement Period:

          Shall mean each calendar year commencing on January 1, 2008 and ending
on December 31, 2008, and each calendar year thereafter through calendar year
2015.

9. Notice of Termination:

          A written notice from Executive (in the case of Voluntary Termination)
or Company (in the case of Termination due to Incapacity) to the other party
designating the basis for termination of Executive, the Termination Date as
provided and addressed in conformity with Articles 2.2 and 4.1 of the Agreement.

10. Renewal Term:

          All automatic renewals of the terms and conditions of the Agreement on
a calendar year basis, commencing on July 1, 2015, and ending June 30, 2016, and
continuing each calendar year thereafter until terminated by either party in
conformity with the Agreement.

11. Termination Date:

          The date of termination designated in any Notice of Termination.

12. Termination for Cause:

          Shall mean the termination of the Executive for:

 

 

 

a. Failing or refusing to follow the legal instructions or resolutions of the
Board of Directors of the Company;

 

 

 

b. Failing or refusing to follow the legal instructions of the Chief Executive
Office of the Company;

 

 

 

c. Absenteeism from the Company in violation of the terms and conditions of the
Agreement;

 

 

 

d. Violation of any term or condition of this Agreement;

 

 

 

e. Violation of any securities law (federal or state) during the term of this

--------------------------------------------------------------------------------

 

 

 

Agreement;

 

 

 

f. Any branch of Executive’s duty of loyalty or fulfilling duty to the Company;
or

 

 

 

g. Failure of the Executive to act in accordance with the terms of the Company
handbook in all material respects.

13. Termination Without Cause:

          The Company’s issuances of a Notice of Termination of the Executive
for any reason other than any of those bases for termination set forth in
paragraph 12, entitled Termination for Cause.

14. Voluntary Termination:

          The Executive’s issuance of a Notice of Termination to the Company for
any reason.

--------------------------------------------------------------------------------

EXHIBIT A
OUTLINE OF MANAGEMENT INCENTIVE PLAN

 

 

 

 

 

 

 

 

 

 

Net Assets

 

$29,000,000

 

 

 

 

 

 

 

 

 

 

Level 1

Salary

 

 

 

 

 

 

$200,000

 

 

 

 

 

 

CO BASED

BONUS

 

 

 

 

 

 

 

100%

TARGET BONUS

 

 

 

 

 

 

 

$200,000

Profit Target

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

1%

 

 

$

290,000

 

0.0

%

$

0

2%

 

 

$

580,000

 

1.316

%

$

2,632

3%

 

 

$

870,000

 

2.63

%

$

5,264

4%

 

 

$

1,160,000

 

3.95

%

$

7,896

5%

 

 

$

1,450,000

 

5.26

%

$

10,528

6%

 

 

$

1,740,000

 

6.58

%

$

13,160

7%

 

 

$

2,030,000

 

7.90

%

$

15,792

8%

 

 

$

2,320,000

 

9.21

%

$

18,424

9%

 

 

$

2,610,000

 

10.53

%

$

21,056

10%

 

 

$

2,900,000

 

11.84

%

$

23,688

11%

 

 

$

3,190,000

 

13.16

%

$

26,320

12%

 

 

$

3,480,000

 

14.48

%

$

28,952

13%

 

 

$

3,770,000

 

15.79

%

$

31,584

14%

 

 

$

4,060,000

 

17.11

%

$

34,216

15%

 

 

$

4,350,000

 

18.42

%

$

36,848

16%

 

 

$

4,640,000

 

19.74

%

$

39,480

17%

 

 

$

4,930,000

 

21.06

%

$

42,112

18%

 

 

$

5,220,000

 

22.37

%

$

44,744

19%

 

 

$

5,510,000

 

23.69

%

$

47,376

20%

 

 

$

5,800,000

 

25.00

%

$

50,008

21%

 

 

$

6,090,000

 

31

%

$

62,508

22%

 

 

$

6,380,000

 

37

%

$

74,000

23%

 

 

$

6,670,000

 

43

%

$

86,000

24%

 

 

$

6,960,000

 

50

%

$

100,000

25%

 

 

$

7,250,000

 

56

%

$

112,000

26%

 

 

$

7,540,000

 

62

%

$

124,000

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

27%

 

 

$

7,830,000

 

68

%

$

136,000

28%

 

 

$

8,120,000

 

75

%

$

150,000

29%

 

 

$

8,410,000

 

83

%

$

166,000

30%

 

 

$

8,700,000

 

89

%

$

178,000

31%

 

 

$

8,990,000

 

95

%

$

190,000

32%

 

 

$

9,280,000

 

100

%

$

200,000

33%

 

 

$

9,570,000

 

106

%

$

212,000

34%

 

 

$

9,860,000

 

112

%

$

224,000

35%

 

 

$

10,150,000

 

118

%

$

236,000

36%

 

 

$

10,440,000

 

125

%

$

250,000

37%

 

 

$

10,730,000

 

131

%

$

262,000

38%

 

 

$

11,020,000

 

137

%

$

274,000

39%

 

 

$

11,310,000

 

143

%

$

286,000

40%

 

 

$

11,600,000

 

150

%

$

300,000

41%

 

 

$

11,890,000

 

156

%

$

312,000

42%

 

 

$

12,180,000

 

162

%

$

324,000

43%

 

 

$

12,470,000

 

168

%

$

336,000

44%

 

 

$

12,760,000

 

175

%

$

350,000

45%

 

 

$

13,050,000

 

181

%

$

362,000

46%

 

 

$

13,340,000

 

187

%

$

374,000

47%

 

 

$

13,630,000

 

193

%

$

386,000

48%

 

 

$

13,920,000

 

200

%

$

400,000

49%

 

 

$

14,210,000

 

206

%

$

412,500

50%

 

 

$

14,500,000

 

213

%

$

425,000

each 1% RONA equals 6.5% increase in bonus %

 

 

 

 

 

 

 

 

$

14,790,000

 

219

%

$

438,000

--------------------------------------------------------------------------------

EXHIBIT B
OUTLINE OF EXECUTIVE INCENTIVE PLAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LTIP BONUS CALCULATION

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

2010-12 PLAN
Executive Group
Target 100%

 

2011-13 PLAN
Executive Group
Target 100%

 

2012-14 PLAN
Executive Group
Target 100%

 

2013-15 PLAN
Executive Group
Target 100%

 

2014-16 PLAN
Executive Group
Target 100%

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

RONA

 

 

 

 

 

 

 

$

200,000

 

 

 

 

$

200,000

 

 

 

 

$

200,000

 

 

 

 

$

200,000

 

 

 

 

$

200,000

 

Net Assets

 

$

29,000,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Target

 

 

32

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YR1

 

$

9,280,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YR2

 

$

9,280,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YR3

 

$

9,280,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

27,840,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

175

%

$

350,000

 

 

 

 

 

 

 

100%

 

$

27,840,000

 

 

93

%

$

185,345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

200

%

$

400,000

 

125%

 

$

34,800,000

 

 

 

 

 

 

 

 

103

%

$

205,460

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

150%

 

$

41,760,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100

%

$

200,000

 

 

 

 

 

 

 

 

 

 

 

 

 

175%

 

$

48,720,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

200%

 

$

55,680,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3 YEAR OPERATING INCOME - used to CALCULATE LTIP BONUS %

ACTUAL OPERATING INCOME

2010

 

$

7,000,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011

 

$

9,000,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012

 

$

9,800,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

93

%

$

25,800,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

 

$

9,800,000

 

 

 

 

 

 

 

 

103

%

$

28,600,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

$

8,240,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100

%

$

27,840,000

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

$

30,680,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

175

%

$

48,720,000

 

 

 

 

 

 

 

2015

 

$

16,760,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

200

%

$

55,680,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

EXHIBIT C
RONA RETURN FOR SHARE DISTRIBUTION

 

 

2010-2014 Average RONA Return

150,000

 

 

 

 

 

 

 

 

 

 

 

 

RONA

 

 

AVG Operating
Income

 

%

 

AWARD
SHARES

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

20%

 

 

$

5,800,000

 

 

25.00

%

 

37,500

 

21%

 

 

$

6,090,000

 

 

31.25

%

 

46,875

 

22%

 

 

$

6,380,000

 

 

37.50

%

 

56,250

 

23%

 

 

$

6,670,000

 

 

43.75

%

 

65,625

 

24%

 

 

$

6,960,000

 

 

50.00

%

 

75,000

 

25%

 

 

$

7,250,000

 

 

56.25

%

 

84,375

 

26%

 

 

$

7,540,000

 

 

62.50

%

 

93,750

 

27%

 

 

$

7,830,000

 

 

68.75

%

 

103,125

 

28%

 

 

$

8,120,000

 

 

75.00

%

 

112,500

 

29%

 

 

$

8,410,000

 

 

81.25

%

 

121,875

 

30%

 

 

$

8,700,000

 

 

87.50

%

 

131,250

 

31%

 

 

$

8,990,000

 

 

93.75

%

 

140,625

 

32%

 

 

$

9,280,000

 

 

100.00

%

 

150,000

 

 

 

 

 

 

 

 

 

 

 

 

ANNUAL STOCK AWARD (same schedule as above)

 

 

 

 

 

 

 

 

10,000

 

 

 

 

 

 

 

 

 

 

 

 

 

RONA

 

 

AVG Operating
Income

 

%

 

AWARD
SHARES

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

20%

 

 

$

5,800,000

 

 

25.00

%

 

2,500

 

21%

 

 

$

6,090,000

 

 

31.25

%

 

3,125

 

22%

 

 

$

6,380,000

 

 

37.50

%

 

3,750

 

23%

 

 

$

6,670,000

 

 

43.75

%

 

4,375

 

24%

 

 

$

6,960,000

 

 

50.00

%

 

5,000

 

25%

 

 

$

7,250,000

 

 

56.25

%

 

5,625

 

26%

 

 

$

7,540,000

 

 

62.50

%

 

6,250

 

27%

 

 

$

7,830,000

 

 

68.75

%

 

6,875

 

28%

 

 

$

8,120,000

 

 

75.00

%

 

7,500

 

29%

 

 

$

8,410,000

 

 

81.25

%

 

8,125

 

30%

 

 

$

8,700,000

 

 

87.50

%

 

8,750

 

31%

 

 

$

8,990,000

 

 

93.75

%

 

9,375

 

32%

 

 

$

9,280,000

 

 

100.00

%

 

10,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXAMPLE: 100% Award

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year

 

 

Average Net
Assets

 

Operating
Income

 

%

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

2010

 

 

 

29,000,000

 

$

9,280,000

 

 

32

%

2011

 

 

 

28,000,000

 

$

8,960,000

 

 

32

%

2012

 

 

 

27,000,000

 

$

8,640,000

 

 

32

%

2013

 

 

 

28,000,000

 

$

8,960,000

 

 

32

%

2014

 

 

 

29,000,000

 

$

9,280,000

 

 

32

%

 

 

 

 

141,000,000

 

$

45,120,000

 

 

 

 

5yr AVG

 

 

 

28,200,000

 

$

9,024,000

 

 

32

%

 

 

 

 

 

 

 

 

 

 

 

 

AWARD

 

 

 

150,000

 

 

shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXAMPLE: short of 32% RONA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year

 

 

Average Net
Assets

 

Operating
Income

 

%

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

2010

 

 

 

29,000,000

 

$

9,280,000

 

 

32

%

2011

 

 

 

28,000,000

 

$

8,000,000

 

 

29

%

2012

 

 

 

27,000,000

 

$

5,000,000

 

 

19

%

2013

 

 

 

28,000,000

 

$

10,000,000

 

 

36

%

2014

 

 

 

29,000,000

 

$

10,000,000

 

 

34

%

 

 

 

 

141,000,000

 

$

42,280,000

 

 

 

 

5yr AVG

 

 

 

28,200,000

 

$

8,456,000

 

 

30

%

 

 

 

 

 

 

 

 

 

 

 

 

AWARD

 

 

 

131,250

 

 

shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXAMPLE: over of 32% RONA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year

 

 

Average Net
Assets

 

Operating
Income

 

 

%

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

2010

 

 

 

29,000,000

 

$

12,000,000

 

 

41

%

2011

 

 

 

28,000,000

 

$

14,000,000

 

 

50

%

2012

 

 

 

27,000,000

 

$

5,000,000

 

 

19

%

2013

 

 

 

28,000,000

 

$

6,000,000

 

 

21

%

2014

 

 

 

29,000,000

 

$

12,000,000

 

 

41

%

 

 

 

 

141,000,000

 

$

49,000,000

 

 

 

 

5yr AVG

 

 

 

28,200,000

 

$

9,800,000

 

 

35

%

 

 

 

 

 

 

 

 

 

 

 

 

AWARD

 

 

 

150,000

 

 

shares

 

 

 

 

--------------------------------------------------------------------------------