Document:

Exhibit – 10.111

 

June 4, 2008

 

Mr. Bruce G. Crain

President and Chief
Executive Officer

Russ Berrie and Company, Inc.

111 Bauer Drive

Oakland, New Jersey  07346

 

Dear Bruce:

 

The
following is a description of your incentive compensation opportunity with respect
to 2008, in accordance with your Employment Agreement with Russ Berrie and
Company, Inc. (the “Company”).  The
determination of your achievement of performance goals shall be made after the
end of 2008 in the Compensation Committee’s discretion.

 

The
Compensation Committee has determined that 50% of your 2008 incentive
compensation opportunity shall be based on the achievement of consolidated
financial goals by the Company and 50% shall be based on your achievement of
personal goals.

 

Financial Goals

 

The
Compensation Committee has set corporate consolidated EBITDA targets for 2008
as the financial goals.  EBITDA is
defined for this purpose as consolidated net income before net interest
expense, provision for income taxes, depreciation, amortization and other
non-cash, special or non-recurring charges. 
With respect to consolidated EBITDA, your targets consist of the
following:  (i) a specified minimum
level of achievement (the “Minimum Crain Target”) required to earn an amount
equal to 7.5% of your annual base salary, (ii) a specified level of
achievement (the “Crain Target”) in excess of the Minimum Crain Target required
to earn an amount equal to 37.5% of your annual base salary, and (ii) a
specified level of achievement in excess of the Crain Target (the “Maximum
Crain Target”) required to earn an amount equal to 65% of your annual base
salary.  Amounts earned for achievement
of results between (i) the Minimum Crain Target and the Crain Target, and (ii) the
Crain Target and the Maximum Crain Target will be determined by a straight-line
interpolation. No amounts will be paid for achievement of results in excess of
the Maximum Crain Target. No amounts will be paid for achievement of results
below the Minimum Crain Target.  In
determining whether any of the Crain Targets were achieved for the year, the Compensation
Committee may exercise its judgment whether to reflect or exclude the impact of
changes in accounting principles and extraordinary, unusual or infrequently
occurring events reported in the Company’s public filings that it believes were
not driven by the current performance or that otherwise had a distorting
positive or negative impact on Company performance.  The EBITDA Targets are set forth on Exhibit A
attached hereto.

 

 

Personal Goals

 

With respect to your
personal goals, three different categories (each with a target and a maximum
level of achievement) have been established as follows:  (i) structural/integration goals, which
will entitle you to receive 18.75% of your annual base salary at the target
level and 32.50% of your annual base salary at the maximum level of
achievement; (ii) organizational goals, which will entitle you to receive
9.375% of your annual base salary at the target level and 16.25% of your annual
base salary at the maximum level of achievement, and (iii) strategic
goals, which will entitle you to receive 9.375% of your annual base salary at
the target level and 16.25% of your annual base salary at the maximum level of
achievement.  The Committee will
determine in its sole discretion your level of achievement of each of these
personal goals during 2008, if any.  The
particular payout level awarded, if any, in each case will depend on the
assessment of the Committee as to the degree of achievement attained, and will
account for the difficulty and complexity of the particular goal.  No bonus will be payable for a particular
category if the Committee determines that the target level of achievement for
that category has not been achieved, and no amounts will be payable in excess
of the maximum incentive compensation opportunity for that category.  Failure to achieve the Minimum Crain Target
or any category of the three personal goals targets will not, however, preclude
incentive compensation from being paid if targets for other categories are
achieved.  The particular deliverables
with respect to each of the three personal goal categories are set forth on Exhibit A.

 

Potential
amounts payable to you with respect to your incentive compensation program for
2008 are as follows:

 

	
   

  	
   

  	
  Target

  	
   

  	
  Maximum

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EBITDA

  	
   

  	
  $

  	
  206,250

  	
  *

  	
  $

  	
  357,500

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Structural/Integration

  	
   

  	
  $

  	
  103,125

  	
   

  	
  $

  	
  178,750

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Organizational

  	
   

  	
  $

  	
  51,562.50

  	
   

  	
  $

  	
  89,375

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Strategic

  	
   

  	
  $

  	
  51,562.50

  	
   

  	
  $

  	
  89,375

  	
   

  

 

*              Achievement of the Minimum Crain Target would entitle
you to a payment of $41,250.

 

Please
sign and return the enclosed copy of this letter acknowledging your agreement
therewith.  We look forward to working
closely with you during 2008 in order that these goals may be achieved for the
enhancement of shareholder value.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  /s/ Frederick J.
  Horowitz

  
	
   

  	
  Chair

  
	
   

  	
  Compensation
  Committee

  

 

2

 

	
  ACKNOWLEDGED AND AGREED

  	
   

  
	
  this 4 day of
  June , 2008.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Bruce Crain

  	
   

  
	
  Bruce G. Crain

  	
   

  

 

3Q2 2008 Exhibit 10.1

EXHIBIT 10.1

EIGHTH AMENDMENT TO CODE SHARE AND

                  REVENUE SHARING AGREEMENT AND

                  SETTLEMENT AGREEMENT

THIS EIGHT AMENDMENT TO CODE SHARE AND REVENUE SHARING AGREEMENT AND SETTLEMENT AGREEMENT (this
"Eighth Amendment") is made and entered into as of May 12, 2008 (the "Effective Date"), between US AIRWAYS,
INC., a Delaware corporation ("US Airways"), MESA AIRLINES, INC., a Nevada corporation ("Mesa"), AIR
MIDWEST, INC., a Kansas corporation ("AM"), and FREEDOM AIRLINES, INC., a Nevada corporation
("Freedom").  Mesa, AM and Freedom are referred to collectively as the "Mesa Group".

RECITALS:

A.US Airways and the Mesa Group are parties to that certain Code Share and Revenue Sharing Agreement, dated as of  February 1, 2001,
as amended by:  (1) the First Amendment to Code Share and Revenue Sharing Agreement, dated to be effective April 27, 2001; (2) the Second
Amendment to Code Share and Revenue Sharing Agreement, dated as of October 24, 2002; (3) the Third Amendment to Code Share and Revenue
Sharing Agreement, dated as of January 29, 2003; (4) the Fourth Amendment to Code Share and Revenue Sharing Agreement and Release, dated as of
September 5, 2003; (5) the Fifth Amendment to Code Share and Revenue Agreement, dated as of January 28, 2005; (6) the Sixth Amendment to Code
Share and Revenue Sharing Agreement and Settlement Agreement, dated as of July 27, 2005; and (7) the Seventh Amendment to Code Share and
Revenue Sharing Agreement and Settlement, Assignment and Assumption Agreement  (collectively, the "Code Share Agreement").
All capitalized terms used herein, but not otherwise defined herein, shall have the meanings given to such terms in the Code Share Agreement.  It is the
intent of the parties that this Eighth Amendment and the subject matter addressed herein is integral to the entirety of the Code Share Agreement and is not
severable therefrom.  

B.The Code Share Agreement requires the Mesa Group to provide certain Flight Services and Other Services for US Airways, pursuant to the
terms and conditions of the Code Share Agreement.  

C.The Mesa Group and US Airways desire to amend the Code Share Agreement pursuant to the terms and conditions of this Eighth Amendment.

D.The Mesa Group and US Airways desire to settle certain amounts payable by the Mesa Group to US Airways.

NOW, THEREFORE, in consideration of the promises, covenants, representations and warranties hereinafter set forth, and for other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, US Airways and the Mesa Group agree as set forth below:

	The parties agree that Section 5 of the Code Share Agreement is amended by adding the following new paragraph 5.8:

	
5.8  Damages [*].  Mesa acknowledges that, [*] for [*] reasons within Mesa's control [*].  As a result [*], US Airways incurred damages of
$[*].  US Airways withheld $[*] from the payments made to Mesa [*], leaving a balance owning by Mesa to US Airways [*].  Mesa agrees to pay
this amount to US Airways as follows:  [*].  In the event that Mesa fails to make any of the payments described above, and such failure continues for 5 days
after notice thereof from US Airways, US Airways may, at its option and upon 30 days' written notice, reduce [*] by up to all of the remaining [*],
notwithstanding any provisions of the Code Share Agreement to the contrary.

	Release.  Except as set forth in this Eighth Amendment, and subject to Mesa's obligation to make the payments set forth above (or in the
event of Mesa's failure to make such payments, to reduce [*]), US Airways fully and finally releases, acquits and forever discharges the Mesa Group from
any and all claims and demands for reimbursement costs or payment of damages or other liabilities resulting [*] that occurred during the period [*].  The
parties agree and acknowledge that they shall not be bound to use this Eighth Amendment as the basis for resolving any similar or dissimilar claims that
may arise between them in the future. 

	Effect.  Except as set forth in this Eighth Amendment, all of the terms and conditions of the Code Share Agreement shall remain in full force
and effect and be applicable to this Eighth Amendment.

	Counterparts.  This Eighth Amendment may be executed in counterparts, all of which when taken together shall be one and the same
document. 

	Entire Agreement.  This Eighth Amendment constitutes the entire agreement between the parties with respect to the subject matter hereof
and supersedes all prior understandings with respect thereto.

[signature page follows]
 

                                                2

US AIRWAYS, INC.

 

By: __________________________

Name: _______________________

Title: ________________________

 

 

MESA AIRLINES, INC.

 

By: __________________________

Name: _______________________

Title: ________________________

 

 

FREEDOM AIRLINES, INC.

 

By: __________________________

Name: _______________________

Title: ________________________

 

 

AIR MIDWEST, INC.

 

By: __________________________

Name: _______________________

Title: ________________________

                                                 3

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