EXHIBIT 10.2
SunBridge
2011 President Incentive Plan
Objective:
To provide an incentive for the SunBridge President to improve operational,
quality of care and financial performance and to reward success.
Program:
- Incentive Potential:
·
75% of annual base salary (as of 12/31/11) with additional incentive potential
of up to 56.25% based on financial Components of the plan.
·
The maximum potential bonus payout is 131.25% of base salary.
- Paid Annually
·
Incentive payments will be made after completion of the year-end audit for 2011
and following the written certification by the Compensation Committee of the
Board of Directors of Sun Healthcare Group, but no earlier than March 1, 2012
and no later than March 15, 2012.
- Plan Year:
·
January 1, 2011 - December 31, 2011
- Plan Eligibility:
·
In order to be eligible for the incentive, the President must be a full-time
employee and actively employed on 12/31/11.
·
Bonuses for plan participants who take approved leaves of absence during the
plan year will be prorated.
Plan Provisions, Criteria and Weighting:
The Annual Incentive Plan is comprised of two financial components:
a 2011
financial performance target for SunBridge and a 2011 financial performance
target for Sun Healthcare Group.
Both financial performance targets are based
on the consolidated earning before interest, taxes, depreciation and
amortization (EBITDA) targets that have been established:
·
SunBridge 2011 EBITDA of $150.5 million
·
Sun Healthcare Group 2011 EBITDA of $115.6 million
The two components of the plan are weighted as
follows:
Components
Weighting
SunBridge EBITDA goal
85%
Sun Healthcare Group EBITDA goal
15%
Additionally, the plan has a quality of care provision that can diminish or
entirely eliminate the bonus at the discretion of the Compensation Committee of
the Sun HealthCare Group Board of Directors.
1
SunBridge EBITDA Component
The amount of the SunBridge EBITDA bonus shall be based upon actual SunBridge
EBITDA attained as a percentage of the established SunBridge EBITDA target as
follows:
% Achievement of Target
for SunBridge:
85% of target
(2011 EBITDA of
$127.9 million)
100% of target
(2011 EBITDA of
$150.5 million)
115% of target
(2011 EBITDA of
$173.1 million)
Percentage of Base Salary
Paid as Bonus:
19.125%
63.75%
111.5625%
If actual SunBridge EBITDA is less than $127.9 million, the SunBridge EBITDA
component of the bonus will be zero.
If actual SunBridge EBITDA exceeds $173.1
million the SunBridge EBITDA component of the bonus will be 111.5625% of base
salary.
If actual SunBridge EBITDA is greater than $127.9 million but less than
$150.5 million, or greater than $150.5 million but less than $173.1 million, the
amount of the SunBridge EBITDA component of the bonus will be prorated between
the amounts shown in the applicable columns of the table.
The level of achievement of the SunBridge EBITDA target shall be determined
solely by actual EBITDA of SunBridge as configured on January 1, 2011, without
regard to changes to EBITDA that may occur as a result of acquisitions made
during 2011.
Sun Healthcare Group EBITDA Component
The amount