exv10w10



 





Exhibit 10.10




NSI Executive Compensation Plan 2006




(All non-commissioned employees would have a similar plan)



Plan Goals: To motivate top management to achieve the financial objectives of the company.



Plan Participants: Selected Senior Management.



Targets: Quarterly and Annual Operating Income and Quarterly and Annual Revenues, as contained in
the approved Company Operating Plan.



Bonus Distribution: The “total bonus” is distributed into five (5) equal “sub bonuses;” one for
each quarter’s performance and one for the year-end performance. Sub bonuses are further divided
equally and based on achievement of operating income and revenue objectives. Thus 10% of the total
bonus is targeted at each quarter’s operating income, each quarter’s revenue, the year-end
operating income, and the year-end revenue.



Recoup: Missed bonuses cannot be recouped.



Achievement: 100% of the sub-bonus is paid at achievement of 100% of each target.



Over Achievement: Sub-bonus payments for achieving quarterly and annual revenue targets will be
increased proportionately by the amount each target is exceeded subject to a cap of 20% above the
revenue target bonus. Sub-bonus payments for exceeding quarterly and annual revenue targets by
more than 20% will be increased proportionately by the amount each target is exceeded, but only to
the extent that the operating income target for the period in which the bonus is being paid has
been exceeded by a proportionate amount or greater. (By way of illustration, for a revenue sub
bonus to be paid at 135% of target in Q1, operating income would have to exceed its target for that
quarter by 135% or more.). Sub-bonus payments for achieving operating income targets will be
increased proportionately by the amount each target is exceeded subject to a cap of 20% above the
operating income target sub-bonus.



Under Achievement: 60% of the sub-bonus is paid at achievement of 87.5% of each target. Bonuses
are increased proportionately between 87.5% and 100% (that is, each percentage point increase
between 87.5% and 100% achievement increases the bonus payment by 3.2%)



Bonus Override: In the event that substantially all the assets or stock of the Company is acquired
during the bonus year, the profit and income objectives for the quarter in which the transaction
takes place and the year-end will be deemed to have been made.



Payment: Payment of bonuses is due within 45 days of the quarter or year-end. Payment will be in
cash, net of withholdings.



Termination: No bonus is due if the executive leaves the company prior to the quarter end, for
voluntary or involuntary reasons. All earned bonuses are due for previous quarter performance
should the executive leave prior to receipt of payment.



Product Definition: This plan has been structured under the assumptions that the corporation would
sell and support services and products offered at the time of the approval of the company operating
plan. The Board of Directors may readjust the plan, should product offerings change.



Change Provision: This plan is subject to change at any time for any reason deemed appropriate by
the Board of Directors. Mergers, acquisitions, licensing, new product development and other
factors may contribute to plan adjustments.