Document:

EX-10.8: MANAGEMENT INCENTIVE COMPENSATION PLAN

 

Exhibit 10.8

THE

WCI COMMUNITIES, INC.

(WCI)

MANAGEMENT INCENTIVE

COMPENSATION PLAN

(MICP)

 

 

January 1, 2002

 

 

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Management Incentive Compensation Plan

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	I.	 	OBJECTIVE
	 
	 	 	The WCI Communities, Inc., (“WCI” or “Company”) Management Incentive
Compensation Plan (the “MICP” or “Plan”) was established to reward the
performance of those key employees whose efforts significantly impact
WCI’s achievement of its annual financial goals. The Plan will place
emphasis on differentiating performance among our diverse businesses
while maintaining a consistent reward theory and a common focus on
achieving our financial and non-financial objectives. This Plan is also
designed to provide significant financial rewards to participants when
such objectives are met or exceeded, (a “Bonus”). However, through a
“pay-for-performance” structure, the Plan will generate reduced or no
incentive payment when objectives or financial goals are not met.
	 
	II.	 	PARTICIPATION
	 
	 	 	A Plan participant must be a) an officer of WCI or b) an employee whose
position has been identified as having significant value towards WCI
achieving its financial goals (a “Participant”).
	 
	 	 	Newly hired employees will not be eligible for participation in the Plan
until they have completed at least eighteen (18) months of employment.
Employees with less than eighteen (18) months of service may become a
Participant provided they meet all of the following criteria:

	 	(i)	 	They meet either a) or b) above, and
	 
	 	(ii)	 	Have been employed for at least six (6) months prior to
payment, and
	 
	 	(iii)	 	Their participation in the Plan had been approved in advance
by the Chief Executive Officer of the Company. Such approval would
generally be received at the time of negotiating employment terms
with the employee.

	III.	 	VESTING
	 
	 	 	Termination of employment prior to a payment date will result in the loss
of the entire Bonus award. Discretionary bonuses and pro-rated bonuses
may be given with the approval of the Chief Executive Officer.
	 
	IV.	 	BONUS AMOUNTS AS A PERCENT OF SALARY
	 
	 	 	A Participant’s potential maximum Bonus amount, (as a percent of base
salary), will be established within the following ranges:

 

 

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	 	 	% of Salary
	 	 	

	President/Chief Operating Officer	 	
Up to 200%
	
	
	
	

	Senior Vice Presidents/Division Presidents	 	
40% – 100%
	
	
	
	

	Vice Presidents/Directors/Controllers	 	
20% – 30%
	
	
	
	

	Other Key Managers	 	
10% – 20%

	V.	 	PARTICIPANT CLASSIFICATION
	 
	 	 	Based on a Participant’s position within WCI, each Participant will be
classified as a member of one of the following groups:

	 	(i)	 	Home Building Personnel
	 
	 	(ii)	 	Division Operating Personnel
	 
	 	(iii)	 	Corporate Administrative Personnel

	VI.	 	OBJECTIVES
	 
	 	 	The amount of each Participant’s Bonus shall be determined based on a
combination of, (i) the Participants Bonus amount as percent of base
salary, (ii) the group within which the Participant is classified and,
(iii) achievement of one or more of the following objectives: Corporate
Financial Objectives and Division/Project Objectives.
	 
	 	 	The matrix of a Participant’s classification and objectives upon which a
Bonus shall be determined is as follows:

For 2002, the MICP allocations are the following:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Division/Project
	 	 	Corporate Financial	 	Objectives and/or
	Classification	 	Objectives	 	Personal Objectives
	
	 	
	 	

	Home Building Personnel
	 	 	20	%	 	 	80	%
	
	
	
	

	Division Operating Personnel
	 	 	20	%	 	 	80	%
	
	
	
	

	Corporate Administrative
Personnel
	 	 	100	%	 	 	0	%

	VII.	 	ACHIEVEMENT MEASUREMENT

	 	A.	 	Corporate Administrative Personnel

	 	 	Each Corporate Administrative Personnel Participant shall be eligible to
receive incentive compensation, paid on their individual Bonus target
amount as a percent of base salary in the event the Corporate Financial
Objective has been achieved.
	 
	 	 	The Corporate Financial Objective is a combination of two (2)
measurements of the financial performance of WCI.

	 	(i)	 	Net Income

 

 

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	 	(ii)	 	Return on Invested Capital-(“ROC”) earnings before interest and
taxes (“EBIT”) divided by the weighted average capital deployed for the
period. Total capital includes the sum of debt-—excluding non-monetary
liabilities such as payables and accruals, plus equity, less unrestricted
cash.

	 	 	Note: Excluded from the Bonus calculation will be any parcel land sales
(in overall dollars) that are not in the 2002 WCI Business Plan
(“Business Plan”) for that year, unless such incremental parcel sales are
submitted to and approved by the Board of Directors prior to such
incremental sales.
	 
	 	 	This provision is intended to give management the business flexibility to
“substitute” parcels, but require Board approval for “incremental”
parcels. If Parcel A is in the Business Plan with a contribution of
$1,000 and Parcel A is sold for a higher contribution, then the higher
contribution will be included in income for “Bonus Calculation”;
similarly, if the contribution is less than the Business Plan it will
negatively effect income for Bonus Calculation. Management has the
authority to “substitute” parcels in the Business Plan to respond to
market demand.
	 
	 	 	WCI must meet at least eighty (80%) of the Net Income and Return on
Capital, weighted as listed below, for each of the Corporate Financial
Objectives to be satisfied.

	 	 	 	 	 	 	 	 	 	 
	100% of Net Income
	 	 	 	 	 	 	75	%
	
	
	
	

	(15% of the Net Income component
is measured quarterly, 15% is measured
quarterly YTD and 70% is measured annually)
	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of Quarterly Net Income Goals
	 	 	 	 	 	 	 	 
	
	
	
	

	 	Achievement of 1st Quarter
	 	 	3.75	%	 	 	 	 
	
	
	
	

	 	Achievement of 2nd Quarter
	 	 	3.75	%	 	 	 	 
	
	
	
	

	 	Achievement of 3rd Quarter
	 	 	3.75	%	 	 	 	 
	
	
	
	

	 	Achievement of 4th Quarter
	 	 	3.75	%	 	 	 	 
	 
	 	 	
	 	 	 	 	 
	 
	 	 	15	%	 	 	 	 
	
	
	
	

	Achievement of Cumulative YTD Net Income Goals
	 	 	 	 	 	 	 	 
	
	
	
	

	 	Achievement at 1st Quarter
	 	 	3.75	%	 	 	 	 
	
	
	
	

	 	Achievement at 2nd Quarter
	 	 	3.75	%	 	 	 	 
	
	
	
	

	 	Achievement at 3rd Quarter
	 	 	3.75	%	 	 	 	 
	
	
	
	

	 	Achievement at 4th Quarter
	 	 	3.75	%	 	 	 	 
	 
	 	 	
	 	 	 	 	 
	 
	 	 	15	%	 	 	 	 
	
	
	
	

	Achievement of Annual Net Income Goal
	 	 	70	%	 	 	 	 
	
	
	
	

	100% of Annual Return on Capital
	 	 	 	 	 	 	25	%
	 
	 	 	 	 	 	 	
	 
	 
	 	 	 	 	 	 	100	%

 

 

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	 	 	Since Net Income is the most important and most comprehensive measure of
current year performance, it will be the primary measurement and will be
weighted at 75% of the potential MICP award. Return on Capital will be
used as a secondary measurement that will motivate deployment of
resources judiciously. Specifically, the program will work as follows:

Net Income—75% of MICP Potential (All acceleration of payouts will

be based upon Net Income performance)

	 	 	 
	Actual Achieved	 	Actual Payout (% Earned)
	
	 	

	120% or higher of $112.1M	 	
160% 
	
	
	
	

	101 to 119%	 	
100% plus 3% for each $1.12M
above $112.1M
	
	
	
	

	$112.1M	 	
100% 
	
	
	
	

	80 to 99% of $112.1M	 	
100% less 3% for each $1.12M
Below $112.1M
	
	
	
	

	Less than 80% of $112.1M	 	
No payout

Return on Capital (R.O.C.) – 25% of total MICP potential

	 	 	 
	Actual R.O.C.	 	Actual Payout (% earned)
	
	 	

	18% or higher	 	
100%; multiplied by the
payout percentage awarded
on Net income performance
only if ROC is 100% or higher
	
	
	
	

	15.4% to 17.95%	 	
40% plus 3% for each .15%

Achieved in excess of 15.4%
	
	
	
	

	Less than 15.4%	 	No payout

	 	 	Any Corporate Administrative Personnel Bonus shall be payable to a
qualifying Participant in the first quarter of the following Plan year.
	 
	 	 	(See Exhibit A & AA for hypothetical example)

	 	B.	 	Home Building Personnel
	 
	 	 	 	Each Home Building Personnel Participant shall be eligible to receive
incentive compensation, paid on their individual bonus target amount
as a percent of base salary in the event targeted Division/Project

 

 

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	 	 	 	Objectives and Corporate Financial Objectives have been achieved.
	 
	 	 	 	Bonus Compensation payable to eligible Home Building Personnel shall
be calculated on an allocation weighted eighty (80%) percent on
Division/Project Objectives and twenty (20%) percent on Corporate
Financial Objectives.
	 
	 	(i)	 	Corporate Financial Objectives (20% of Total Target)

The Company Financial Objective portion of the above calculation,
twenty (20%) percent of the total, is a combination of two (2)
measurements of the financial performance of WCI, Net Income and
Return on Capital. A detailed explanation of the Corporate Financial
Objective is outlined in Section VII (A) above.
	 
	 	(ii)	 	Division/Project Objectives (80% of Total Target)

The Division/Project Objective portion of the above calculation,
eighty (80%) percent of the total, is based on the eligible
participant meeting
predetermined financial objectives by job positions as listed below.

	 	 	 	 	 
	 	 	 	 	Financial
	Title	 	Community/Division	 	Objectives
	
	 	
	 	

	Division President/Financial

Manager	 	
Division
	 	Net Home Building

$ Contribution after Sales Overhead
	
	
	
	

	Project Manager	 	
Community
	 	Net Home Building

$ Contribution after Sales Overhead
	
	
	
	

	Land Manager/Purchasing

Manager	 	
Division
	 	Gross Margin $
	
	
	
	

	Production Manager	 	
Community
	 	Net Home Building

$ Contribution before Sales Overhead

	 	 	 	The bonus payment calculation will be structured as follows:

	 	 	 	 	 	 	 	 	 	 
	100% of Net Contribution
	 	 	 	 	 	 	80	%
	
	
	
	

	Achievement of Quarterly Net Income Goals
	 	 	 	 	 	 	 	 
	
	
	
	

	 	Achievement of 1st Quarter
	 	 	3.75	%	 	 	 	 
	
	
	
	

	 	Achievement of 2nd Quarter
	 	 	3.75	%	 	 	 	 
	
	
	
	

	 	Achievement of 3rd Quarter
	 	 	3.75	%	 	 	 	 
	
	
	
	

	 	Achievement of 4th Quarter
	 	 	3.75	%	 	 	 	 
	 
	 	 	
	 	 	 	 	 
	 
	 	 	15	%	 	 	 	 
	
	
	
	

	Achievement of Cumulative YTD Net Income Goals
	 	 	 	 	 	 	 	 
	
	
	
	

	 	Achievement at 1st Quarter
	 	 	3.75	%	 	 	 	 
	
	
	
	

	 	Achievement at 2nd Quarter
	 	 	3.75	%	 	 	 	 
	
	
	
	

	 	Achievement at 3rd Quarter
	 	 	3.75	%	 	 	 	 
	
	
	
	

	 	Achievement at 4th Quarter
	 	 	3.75	%	 	 	 	 
	 
	 	 	
	 	 	 	 	 
	 
	 	 	15	%	 	 	 	 
	
	
	
	

	Achievement of Annual Net Income Goal
	 	 	70	%	 	 	 	 
	
	
	
	

	100% Corporate Financial Objectives
	 	 	 	 	 	 	20	%
	 
	 	 	 	 	 	 	
	 
	 
	 	 	 	 	 	 	100	%

 

 

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	 	(iii)	 	In the event the Division/Project Objectives are not
achieved or are exceeded, the bonus payment will be paid according
to the following schedule:

	 	 	 
	Actual Achieved	 	Actual Payout
	Against Plan	 	(% earned)
	
	 	

	120% or higher	 	
160% 
	
	
	
	

	101% to 119%	 	
100% plus 3% for each 1%
over 100% to 119%
	
	
	
	

	100%	 	
100% 
	
	
	
	

	80% to 99%	 	
100% less 3% for each 1%

under 100%
	
	
	
	

	Less than 80%	 	
No Payout

	 	(iv)	 	The Corporate Financial Objectives payment will only be paid
if eighty (80%) percent or more of the Division/Project Objective is
met.

(See Exhibit B & BB for hypothetical example)
	 
	 	(v)	 	The Corporate Financial and Division/Project Objective
Payments shall be paid to qualifying Participants in the first
quarter of the following Plan year.
	 
	 	C.	 	Division Operating Personnel
	 
	 	 	 	Each Division Operating Personnel Participant shall be eligible to
receive incentive compensation, paid on their individual Bonus target
amount as a percent of base salary in the event targeted
Division/Project Financial Objectives and Corporate Financial
Objectives have been achieved.
	 
	 	 	 	Bonus compensation payable to eligible Division Operating
Personnel shall
be calculated on an allocation based on two (2)
components weighted eighty percent (80%) on Division/Project
Objectives and twenty percent (20%) on Corporate Financial
Objectives.
	 
	 	(i)	 	Corporate Financial Objectives (20% of Total Target)

The Company Financial Objective portion of the above calculation,
twenty (20%) percent of the total, is a combination of two (2)
measurements of the financial performance of WCI, Net Income and

 

 

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	 	 	 	Return on Capital. A detailed explanation of the Corporate Financial
Objective is outlined in Section VII (A) above.
	 
	 	(ii)	 	Division/Project Objectives (80% of Total Target)

The eighty percent (80%) component is comprised of two (2) separate
factors. The weighting of these factors, which in the aggregate
represent a total of eighty percent (80%) of the total target, shall
be calculated as follows:

	 	 	 	 	 	 	 	 	 	 
	100% of Net Contribution
	 	 	 	 	 	 	80	%
	
	
	
	

	Achievement of Quarterly Net Income Goals
	 	 	 	 	 	 	 	 
	
	
	
	

	 	Achievement of 1st Quarter
	 	 	3.75	%	 	 	 	 
	
	
	
	

	 	Achievement of 2nd Quarter
	 	 	3.75	%	 	 	 	 
	
	
	
	

	 	Achievement of 3rd Quarter
	 	 	3.75	%	 	 	 	 
	
	
	
	

	 	Achievement of 4th Quarter
	 	 	3.75	%	 	 	 	 
	 
	 	 	
	 	 	 	 	 
	 
	 	 	15	%	 	 	 	 
	
	
	
	

	Achievement of Cumulative YTD Net Income Goals
	 	 	 	 	 	 	 	 
	
	
	
	

	 	Achievement at 1st Quarter
	 	 	3.75	%	 	 	 	 
	
	
	
	

	 	Achievement at 2nd Quarter
	 	 	3.75	%	 	 	 	 
	
	
	
	

	 	Achievement at 3rd Quarter
	 	 	3.75	%	 	 	 	 
	
	
	
	

	 	Achievement at 4th Quarter
	 	 	3.75	%	 	 	 	 
	 
	 	 	
	 	 	 	 	 
	 
	 	 	15	%	 	 	 	 
	
	
	
	

	Achievement of Annual Net Income Goal
	 	 	70	%	 	 	 	 
	
	
	
	

	100% Corporate Financial Objectives
	 	 	 	 	 	 	20	%
	 
	 	 	 	 	 	 	
	 
	 
	 	 	 	 	 	 	100	%

	 	(iii)	 	In the event the Division/Project Objectives are not
achieved or exceeded, the bonus payment will be paid according to
the following schedule:

	 	 	 
	Actual Achieved	 	Actual Payout
	Against Plan	 	(% earned)
	
	 	

	120% or higher	 	
160% 
	
	
	
	

	101% to 119%	 	
100% plus 3% for each 1%
over 100% to 119%
	
	
	
	

	100%	 	
100% 
	
	
	
	

	80% to 99%	 	
100% less 3% for each 1%

under 100%
	
	
	
	

	Less than 80%	 	
No Payout

	 	(iv)	 	The Corporate Financial Objectives payment will only be paid
if eighty (80%) percent or more of the Division/Project Objective is
met.
	 
	 	 	 	(See Exhibit D & DD for hypothetical example)

 

 

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	 	(v)	 	The Corporate Financial and Division/Project Objective
Payments shall be paid to qualifying Participants in the first
quarter of the following Plan year.

	VIII.	 	FORM
	 
	 	 	Attached Exhibit “A”-2002 Individual and Department Incentive Bonus Plan.
The form is to be used to structure Participant participation.
	 
	IX.	 	IMPACT ON BENEFITS
	 
	 	 	A Participant’s Bonus, within legal limitations, will be used for
contribution to the WCI Communities 401(k) and Retirement Plan unless
participant elects not to make such a contribution and notifies the
payroll department in writing of this election. This contribution will
also receive the applicable Company match.
	 
	X.	 	APPROVALS
	 
	 	 	At the beginning of each year, the Chief Executive Officer or
President/Chief Operating Officer shall submit to the Compensation
Committee of the Board of Directors for it approval, the proposed
incentive program for that year.

NOTE: This document is to inform the employees of potential compensation based
on their performance and performance of the Company. All terms and conditions
of this Plan may be modified by WCI from time-to-time upon notice. This
document is for information purposes only and in no way should be construed as
an employment contract or other commitment to continue your employment.

EXHIBIT A

Corporate Administrative Participant

	 	 	 	 	 
	Base Salary:
	 	$	75,000	 
	
	
	
	

	Target Bonus %:
	 	 	25	%
	
	
	
	

	Target Bonus Amount:
	 	$	18,750	 

 

 

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	 	 	 	 	 	 	 	 	Hypothetical Result	 	 	 	 
	 	 	 	 	 	 	 	 	
	 	 	 	 
	Net Income (@ 75%)
	 	$	14,062	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of 1st Quarter
	 	$	527	 	 	Achieved	 	$	527	 
	
	
	
	

	Achievement of 2nd Quarter
	 	$	527	 	 	Not Achieved	 	No Payment
	
	
	
	

	Achievement of 3rd Quarter
	 	$	527	 	 	Achieved	 	$	527	 
	
	
	
	

	Achievement of 4th Quarter
	 	$	527	 	 	Not Achieved	 	No Payment
	
	
	
	

	Achieve Cumulative
	 	$	527	 	 	Achieved 110% YTD	 	$	527	 
	
	
	
	

	 	1st Quarter YTD Net Income
	 	 	 	 	 	Achieved 110% YTD 1st Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	527	 	 	Achieved 102% YTD	 	$	527	 
	
	
	
	

	 	2nd Quarter YTD Net Income
	 	 	 	 	 	(Achieved 94% 2nd Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	527	 	 	Achieved 100% YTD	 	$	527	 
	
	
	
	

	 	3rd Quarter YTD Net Income
	 	 	 	 	 	(Achieved 96% 3rd Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	527	 	 	Achieved 104% YTD	 	$	527	 
	
	
	
	

	 	4th Quarter YTD Net Income
	 	 	 	 	 	(Achieved 112% 4th Qtr)	 	 	 	 
	
	
	
	

	Achievement of Annual
	 	 	 	 	 	Achieved @ 104%	 	 	 	 
	
	
	
	

	 	 	Net Income
	 	$	9,846	 	 	Of Plan	 	$	9,846	 
	
	
	
	

	Return on Capital (@ 25%)
	 	$	4,688	 	 	Achieved @ 100%	 	 	 	 
	
	
	
	

	 
	 	 	 	 	 	Of Plan	 	$	4,688	 
	 
	 	 	 	 	 	 	 	 	 	 	
	 
	 
	 	 	 	 	 	Total	 	$	17,696	 

Since Net Income was 104% of the Plan and the Return on Capital achieved was
100% or better, the $17,696 bonus achieved would be increased by 112% (3% for
each 1% Net Income over 100%) for a total bonus payment of $19,820.

 

 

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EXHIBIT AA

Corporate Administrative Participant

(In the event 100% of Return on Capital is not met)

	 	 	 	 	 
	Base Salary:
	 	$	75,000	 
	
	
	
	

	Target Bonus %:
	 	 	25	%
	
	
	
	

	Target Bonus Amount:
	 	$	18,750	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Hypothetical Result	 	 	 	 
	 	 	 	 	 	 	 	 	
	 	 	 	 
	Net Income (@ 75%)
	 	$	14,062	 	 	 	 	 	 	 	 	 
	
	
	
	

	 	Achievement of 1st Quarter
	 	$	527	 	 	Achieved	 	$	527	 
	
	
	
	

	 	Achievement of 2nd Quarter
	 	$	527	 	 	Not Achieved	 	No Payment
	
	
	
	

	 	Achievement of 3rd Quarter
	 	$	527	 	 	Achieved	 	$	527	 
	
	
	
	

	 	Achievement of 4th Quarter
	 	$	527	 	 	Not Achieved	 	No Payment
	
	
	
	

	 	Achieve Cumulative
	 	$	527	 	 	Achieved 110% YTD	 	$	527	 
	
	
	
	

	 	 	1st Quarter YTD Net Income
	 	 	 	 	 	(Achieved 110% YTD 1st Qtr)	 	 	 	 
	
	
	
	

	 	Achieve Cumulative
	 	$	527	 	 	Achieved 102% YTD	 	$	527	 
	
	
	
	

	 	 	2nd Quarter YTD Net Income
	 	 	 	 	 	(Achieved 94% 2nd Qtr)	 	 	 	 
	
	
	
	

	 	Achieve Cumulative
	 	$	527	 	 	Achieved 100% YTD	 	$	527	 
	
	
	
	

	 	 	3rd Quarter YTD Net Income
	 	 	 	 	 	(Achieved 96% 3rd Qtr)	 	 	 	 
	
	
	
	

	 	Achieve Cumulative
	 	$	527	 	 	Achieved 104% YTD	 	$	527	 
	
	
	
	

	 	 	4th Quarter YTD Net Income
	 	 	 	 	 	(Achieved 112% 4th Qtr)	 	 	 	 
	
	
	
	

	 	Achievement of Annual
	 	 	 	 	 	Achieved @ 104%	 	 	 	 
	
	
	
	

	 	 	Net Profit
	 	$	9,846	 	 	Of Plan	 	$	9,846	 
	 
	 	 	 	 	 	 	 	 	 	 	
	 
	 
	 	 	 	 	 	        Total	 	$	13,008	 
	
	
	
	

	Return on Capital
	 	$	4,688	 	 	Achieved @ 68%	 	 	 	 
	
	
	
	

	 
	 	 	 	 	 	Of Plan	 	$	3,188	 

Since Net Income was 104% of the Plan, the Net Income bonus achieved of $13,008
would be increased by 112% (3% for each 1% over 100%) or $14,569 and added to
$3,188 (ROC @ 16.8% – 15.4% = 1.4% ÷ .15% = 9.3% x 3% + 40% = 68%) for a total
bonus payment of $17,757.

 

 

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EXHIBIT B

Homebuilding

	 	 	 	 	 
	Base Salary:
	 	$	100,000	 
	
	
	
	

	Target Bonus %:
	 	 	40	%
	
	
	
	

	Target Bonus Amount:
	 	$	40,000	 

	 	 	 	 	 	 	 	 	 
	Division/Project Financial Objectives
	 	$	32,000	 	 	 	(80	%)
	
	
	
	

	Company Financial Objectives
	 	$	8,000	 	 	 	(20	%)
	 
	 	 	
	 	 	 	

	 
	 	$	40,000	 	 	 	(100	%)

Corporate Financial Objectives

(@ 20% of Targeted Bonus, or $8,000)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	Targeted	 	Hypothetical	 	Bonus
	(@ 75% or $6,000)	 	Bonus	 	Result	 	Paid
	
	 	
	 	
	 	

	Achievement of 1st Quarter
	 	$	225	 	 	Achieved	 	$	225	 
	
	
	
	

	Achievement of 2nd Quarter
	 	$	225	 	 	Not Achieved	 	No Payment
	
	
	
	

	Achievement of 3rd Quarter
	 	$	225	 	 	Achieved	 	$	225	 
	
	
	
	

	Achievement of 4th Quarter
	 	$	225	 	 	Not Achieved	 	No Payment
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 110% YTD	 	$	225	 
	
	
	
	

	 	1st Quarter YTD Net Income
	 	 	 	 	 	(Achieved 110% YTD 1st Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 102% YTD	 	$	225	 
	
	
	
	

	 	2nd Quarter YTD Net Income
	 	 	 	 	 	(Achieved 94% 2nd Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 100% YTD	 	$	225	 
	
	
	
	

	 	3rd Quarter YTD Net Income
	 	 	 	 	 	(Achieved 96% 3rd Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 104% YTD	 	$	225	 
	
	
	
	

	4th Quarter YTD Net Income
	 	 	 	 	 	(Achieved 112% 4th Qtr)	 	 	 	 
	
	
	
	

	Achievement of Annual
	 	 	 	 	 	Achieved @ 104%	 	 	 	 
	
	
	
	

	 	Net Profit
	 	$	4,200	 	 	Of Plan	 	$	4,200	 
	
	
	
	

	Return on Capital
	 	 	 	 	 	Achieved @ 100%	 	 	 	 
	
	
	
	

	(@ 25% or $2,000)
	 	$	2,000	 	 	Of Plan	 	$	2,000	 
	 
	 	 	 	 	 	 	 	 	 	 	
	 
	 
	 	 	 	 	 	Total	 	$	7,550	 

Since the Net Income was 104% of Plan and the Return on Capital achieved was
100% or better, the $7,550 bonus achieved would be increased by 112% (3% for
each 1% Net Income over 100%) for a total bonus payment of $8,456.

 

 

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Page 13

Division / Project Objectives

(@ 80% of Targeted Bonus, or $32,000)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Contribution	 	Targeted	 	Hypothetical	 	Bonus
	 	 	 	Bonus	 	Result	 	Paid
	
	 	
	 	
	 	

	Achievement of 1st Quarter
	 	$	1,200	 	 	Achieved	 	$	1,200	 
	
	
	
	

	Achievement of 2nd Quarter
	 	$	1,200	 	 	Not Achieved	 	No Payout
	
	
	
	

	Achievement of 3rd Quarter
	 	$	1,200	 	 	Achieved	 	$	1,200	 
	
	
	
	

	Achievement of 4th Quarter
	 	$	1,200	 	 	Not Achieved	 	No Payout
	
	
	
	

	Achievement of 1st Quarter
	 	$	1,200	 	 	Achieved 110% YTD	 	$	1,200	 
	
	
	
	

	  Cumulative YTD (Financial Objective)
	 	 	 	 	 	(Achieved 110% YTD 1st Qtr)	 	 	 	 
	
	
	
	

	Achievement of 2nd Quarter
	 	$	1,200	 	 	Achieved 102% YTD	 	$	1,200	 
	
	
	
	

	  Cumulative YTD (Financial Objective)
	 	 	 	 	 	(Achieved 94% 2nd Qtr)	 	 	 	 
	
	
	
	

	Achievement of 3rd Quarter
	 	$	1,200	 	 	Achieved 100% YTD	 	$	1,200	 
	
	
	
	

	  Cumulative YTD (Financial Objective)
	 	 	 	 	 	(Achieved 96% 3rd Qtr)	 	 	 	 
	
	
	
	

	Achievement of 4th Quarter
	 	$	1,200	 	 	Achieved 104% YTD	 	$	1,200	 
	
	
	
	

	  Cumulative YTD (Financial Objective)
	 	 	 	 	 	(Achieved 112% 4th Qtr)	 	 	 	 
	
	
	
	

	Achievement of Annual
	 	 	 	 	 	Achieved at 104%	 	 	 	 
	
	
	
	

	 	Net Contribution
	 	$	22,400	 	 	Of Plan	 	$	22,400	 
	 
	 	 	 	 	 	 	 	 	 	 	
	 
	 
	 	 	 	 	 	Total	 	$	29,600	 

Since the Division / Project Objective was 104% of Plan, the $29,600 would be
increased by 112% (3% for each 1% over 100%) for a total payment of $33,152.

The total bonus paid to this participant would be $50,909.

 

 

WCI Communities, Inc.

Management Incentive Compensation Plan

Page 14

EXHIBIT BB

Homebuilding

(In the event 100% of Return on Capital is not met)

	 	 	 	 	 
	Base Salary:
	 	$	100,000	 
	
	
	
	

	Target Bonus %:
	 	 	40	%
	
	
	
	

	Target Bonus Amount:
	 	$	40,000	 

	 	 	 	 	 	 	 	 	 
	Division/Project Financial Objectives
	 	$	32,000	 	 	 	(80	%)
	
	
	
	

	Company Financial Objectives
	 	$	8,000	 	 	 	(20	%)
	 
	 	 	
	 	 	 	

	 
	 	$	40,000	 	 	 	(100	%)

Corporate Financial Objectives

(@ 20% of Targeted Bonus, or $8,000)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	Targeted	 	Hypothetical	 	Bonus
	(@ 75% or $6,000)	 	Bonus	 	Result	 	Paid
	
	 	
	 	
	 	

	Achievement of 1st Quarter
	 	$	225	 	 	Achieved	 	$	225	 
	
	
	
	

	Achievement of 2nd Quarter
	 	$	225	 	 	Not Achieved	 	No Payment
	
	
	
	

	Achievement of 3rd Quarter
	 	$	225	 	 	Achieved	 	$	225	 
	
	
	
	

	Achievement of 4th Quarter
	 	$	225	 	 	Not Achieved	 	No Payment
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 110% YTD	 	$	225	 
	
	
	
	

	1st Quarter YTD Net Income
	 	 	 	 	 	(Achieved 110% YTD 1st Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 102% YTD	 	$	225	 
	
	
	
	

	2nd Quarter YTD Net Income
	 	 	 	 	 	(Achieved 94% 2nd Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 100% YTD	 	$	225	 
	
	
	
	

	3rd Quarter YTD Net Income
	 	 	 	 	 	(Achieved 96% 3rd Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 104% YTD	 	$	225	 
	
	
	
	

	4th Quarter YTD Net Income
	 	 	 	 	 	(Achieved 112% 4th Qtr)	 	 	 	 
	
	
	
	

	Achievement of Annual
	 	 	 	 	 	Achieved @ 104%	 	 	 	 
	
	
	
	

	Net Profit
	 	$	4,200	 	 	Of Plan	 	$	4,200	 
	 
	 	 	 	 	 	 	 	 	 	 	
	 
	 
	 	 	 	 	 	Total	 	$	5,550	 
	
	
	
	

	Return on Capital
	 	 	 	 	 	Achieved @ 68%	 	 	 	 
	
	
	
	

	(@ 25% or $2,000)
	 	$	2,000	 	 	Of Plan	 	$	1,360	 

Since the Net Income was 104% of the Plan, the Net Income bonus achieved of
$5,550 will be increased by 112% (3% for each 1% over 100%) or $6,216, and
added to $1,360 (ROC @ 16.8% — 15.42% =1.4% ÷ .15% =9.3% x 3% +40% = 68%) for a
Corporate financial bonus of $7,576.

 

 

WCI Communities, Inc.

Management Incentive Compensation Plan

Page 15

Division / Project Objectives

(@ 80% of Targeted Bonus, or $32,000)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Contribution	 	Targeted	 	Hypothetical	 	Bonus
	 	 	Bonus	 	Result	 	Paid
	
	 	
	 	
	 	

	Achievement of 1st Quarter
	 	$	1,200	 	 	Achieved	 	$	1,200	 
	
	
	
	

	Achievement of 2nd Quarter
	 	$	1,200	 	 	Not Achieved	 	No Payout
	
	
	
	

	Achievement of 3rd Quarter
	 	$	1,200	 	 	Achieved	 	$	1,200	 
	
	
	
	

	Achievement of 4th Quarter
	 	$	1,200	 	 	Not Achieved	 	No Payout
	
	
	
	

	Achievement of 1st Quarter
	 	$	1,200	 	 	Achieved 110% YTD	 	$	1,200	 
	
	
	
	

	Cumulative YTD (Financial Objective)
	 	 	 	 	 	(Achieved 110% YTD 1st Qtr)	 	 	 	 
	
	
	
	

	Achievement of 2nd Quarter
	 	$	1,200	 	 	Achieved 102% YTD	 	$	1,200	 
	
	
	
	

	Cumulative YTD (Financial Objective)
	 	 	 	 	 	(Achieved 94% 2nd Qtr)	 	 	 	 
	
	
	
	

	Achievement of 3rd Quarter
	 	$	1,200	 	 	Achieved 100% YTD	 	$	1,200	 
	
	
	
	

	Cumulative YTD (Financial Objective)
	 	 	 	 	 	(Achieved 96% 3rd Qtr)	 	 	 	 
	
	
	
	

	Achievement of 4th Quarter
	 	$	1,200	 	 	Achieved 104% YTD	 	$	1,200	 
	
	
	
	

	Cumulative YTD (Financial Objective)
	 	 	 	 	 	(Achieved 112% 4th Qtr)	 	 	 	 
	
	
	
	

	Achievement of Annual
	 	 	 	 	 	Achieved at 104%	 	 	 	 
	
	
	
	

	Net Contribution
	 	$	22,400	 	 	Of Plan	 	$	22,400	 
	 
	 	 	 	 	 	 	 	 	 	 	
	 
	 
	 	 	 	 	 	     Total	 	$	29,600	 

Since the Division / Project Objective was 104% of Plan, the $29,600 would be
increased by 112% (3% for each 1% over 100%) for a total payment of $33,152.

The total bonus paid to this participant would be $40,728

 

 

WCI Communities, Inc.

Management Incentive Compensation Plan

Page 16

EXHIBIT C

Homebuilding

(Division Presidents and Division Project Managers)

	 	 	 	 	 
	Base Salary:
	 	$	100,000	 
	
	
	
	

	Target Bonus %:
	 	 	40	%
	
	
	
	

	Target Bonus Amount:
	 	$	40,000	 

	 	 	 	 	 	 	 	 	 
	Division/Project Financial Objectives
	 	$	32,000	 	 	 	(80	%)
	
	
	
	

	Company Financial Objectives
	 	$	8,000	 	 	 	(20	%)
	 
	 	 	
	 	 	 	

	 
	 	$	40,000	 	 	 	(100	%)

Corporate Financial Objectives

(@ 20% of Targeted Bonus, or $8,000)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	Targeted	 	Hypothetical	 	Bonus
	(@ 75% or $6,000)	 	Bonus	 	Result	 	Paid
	
	 	
	 	
	 	

	Achievement of 1st Quarter
	 	$	225	 	 	Achieved	 	$	225	 
	
	
	
	

	Achievement of 2nd Quarter
	 	$	225	 	 	Not Achieved	 	No Payment
	
	
	
	

	Achievement of 3rd Quarter
	 	$	225	 	 	Achieved	 	$	225	 
	
	
	
	

	Achievement of 4th Quarter
	 	$	225	 	 	Not Achieved	 	No Payment
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 110% YTD	 	$	225	 
	
	
	
	

	1st Quarter YTD Net Income
	 	 	 	 	 	(Achieved 110% YTD 1st Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 102% YTD	 	$	225	 
	
	
	
	

	2nd Quarter YTD Net Income
	 	 	 	 	 	(Achieved 94% 2nd Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 100% YTD	 	$	225	 
	
	
	
	

	3rd Quarter YTD Net Income
	 	 	 	 	 	(Achieved 96% 3rd Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 104% YTD	 	$	225	 
	
	
	
	

	4th Quarter YTD Net Income
	 	 	 	 	 	(Achieved 112% 4th Qtr)	 	 	 	 
	
	
	
	

	Achievement of Annual
	 	 	 	 	 	Achieved @ 104%	 	 	 	 
	
	
	
	

	Net Profit
	 	$	4,200	 	 	Of Plan	 	$	4,200	 
	
	
	
	

	Return on Capital
	 	 	 	 	 	Achieved @ 100%	 	 	 	 
	
	
	
	

	(@ 25% or $2,000)
	 	$	2,000	 	 	Of Plan	 	$	2,000	 
	 
	 	 	 	 	 	 	 	 	 	 	
	 
	 
	 	 	 	 	 	Total	 	$	7,550	 

Since the Net Income was 104% of Plan and the Return on Capital achieved was
100% or better, the $7,550 bonus achieved would be increased by 112% (3% for
each 1% Net Income over 100%) for a total bonus payment of $8,456.

 

 

WCI Communities, Inc.

Management Incentive Compensation Plan

Page 17

 

 

Division / Project Objectives

(@ 80% of Targeted Bonus, or $32,000)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Targeted	 	Hypothetical	 	Bonus
	 	 	Bonus	 	Result	 	Paid
	 	 	
	 	
	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Monthly Achievement Bonus
	 	$	12,000	 	 	Achieved nine	 	$	9,000	 
	
	
	
	

	 
	 	 	 	 	 	Months	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Contribution	 	Targeted	 	Hypothetical	 	Bonus
	 	 	Bonus	 	Result	 	Paid
	 	 	 	
	 	
	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of 1st Quarter
	 	$	750	 	 	Achieved	 	$	750	 
	
	
	
	

	Achievement of 2nd Quarter
	 	$	750	 	 	Not Achieved	 	No Payment
	
	
	
	

	Achievement of 3rd Quarter
	 	$	750	 	 	Achieved	 	$	750	 
	
	
	
	

	Achievement of 4th Quarter
	 	$	750	 	 	Not Achieved	 	No Payment
	
	
	
	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of 1st Quarter
	 	$	750	 	 	Achieved 110% YTD	 	$	750	 
	
	
	
	

	 	Cumulative YTD
	 	 	 	 	 	(Achieved 110% YTD 1st Qtr)	 	 	 	 
	
	
	
	

	Achievement of 2nd Quarter
	 	$	750	 	 	Achieved 102% YTD	 	$	750	 
	
	
	
	

	 	Cumulative YTD
	 	 	 	 	 	(Achieved 94% 2nd Qtr)	 	 	 	 
	
	
	
	

	Achievement of 3rd Quarter
	 	$	750	 	 	Achieved 100% YTD	 	$	750	 
	
	
	
	

	 	Cumulative YTD
	 	 	 	 	 	(Achieved 96% 3rd Qtr)	 	 	 	 
	
	
	
	

	Achievement of 4th Quarter
	 	$	750	 	 	Achieved 104% YTD	 	$	750	 
	
	
	
	

	 	Cumulative YTD
	 	 	 	 	 	(Achieved 112% 4th Qtr)	 	 	 	 
	
	
	
	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of Annual
	 	 	 	 	 	Achieved at 104%	 	 	 	 
	
	
	
	

	 	Net Contribution
	 	$	14,000	 	 	Of Plan	 	$	14,000	 
	 
	 	 	 	 	 	 	 	 	 	 	
	 
	 
	 	 	 	 	 	Total	 	$	18,500	 

Since the Division / Project Objective was 104% of Plan, the $18,500 would be
increased by 112% (3% for each 1% over 100%) for a total payment of $20,720.

The total bonus paid to this participant would be $38,176.

 

 

WCI Communities, Inc.

Management Incentive Compensation Plan

Page 18

EXHIBIT CC

Homebuilding

(Division Presidents and Division Project Managers)

(In the event 100% of Return on Capital is not met)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Base Salary:
	 	$	100,000	 
	
	
	
	

	Target Bonus %:
	 	 	40%	 
	
	
	
	

	Target Bonus Amount:
	 	$	40,000	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Division/Project Financial Objectives
	 	$	32,000 (80	%)
	
	
	
	

	Company Financial Objectives
	 	$	8,000 (20	%)
	 
	 	 	
	 
	 
	 	$	40,000 (100	%)

Corporate Financial Objectives

(@ 20% of Targeted Bonus, or $8,000)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	Targeted	 	Hypothetical	 	Bonus
	(@ 75% or $6,000)	 	Bonus	 	Result	 	Paid
	
	 	
	 	
	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of 1st Quarter
	 	$	225	 	 	Achieved	 	$	225	 
	
	
	
	

	Achievement of 2nd Quarter
	 	$	225	 	 	Not Achieved	 	No Payment
	
	
	
	

	Achievement of 3rd Quarter
	 	$	225	 	 	Achieved	 	$	225	 
	
	
	
	

	Achievement of 4th Quarter
	 	$	225	 	 	Not Achieved	 	No Payment
	
	
	
	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 110% YTD	 	$	225	 
	
	
	
	

	 	1st Quarter YTD Net Income
	 	 	 	 	 	(Achieved 110% YTD 1st Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 102% YTD	 	$	225	 
	
	
	
	

	 	2nd Quarter YTD Net Income
	 	 	 	 	 	(Achieved 94% 2nd Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 100% YTD	 	$	225	 
	
	
	
	

	 	3rd Quarter YTD Net Income
	 	 	 	 	 	(Achieved 96% 3rd Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 104% YTD	 	$	225	 
	
	
	
	

	 	4th Quarter YTD Net Income
	 	 	 	 	 	(Achieved 112% 4th Qtr)	 	 	 	 
	
	
	
	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of Annual
Net Profit
	 	$	4,200	 	 	Achieved @ 104%	 	$	4,200	 
	
	
	
	

	 
	 	 	 	 	 	Of Plan	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Total	 	$	5,550	 
	
	
	
	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Return on Capital
	 	$	2,000	 	 	Achieved @ 68%	 	$	1,360	 
	
	
	
	

	(@ 25% or $2,000)
	 	 	 	 	 	Of Plan	 	 	 	 

Since the Net Income was 104% of the Plan, the Net Income bonus achieved of
$5,100 will be increased by 112% (3% for each 1% over 100%) or $5,712, and
added to $1,360 (ROC @ 16.8% — 15.4% =1.4% ÷ .15% =9.3% x 3% +40% = 68%) for a
Corporate financial bonus of $7,022.

 

 

WCI Communities, Inc.

Management Incentive Compensation Plan

Page 19

 

 

Division / Project Objectives

(@ 80% of Targeted Bonus, or $32,000)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Targeted	 	Hypothetical	 	Bonus
	 	 	Bonus	 	Result	 	Paid
	 	 	
	 	
	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Monthly Achievement Bonus
	 	$	12,000	 	 	Achieved nine	 	$	9,000	 
	
	
	
	

	 
	 	 	 	 	 	Months	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	Targeted	 	Hypothetical	 	Bonus
	Net Contribution	 	Bonus	 	Result	 	Paid
	
	 	
	 	
	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of 1st Quarter
	 	$	750	 	 	Achieved	 	$	750	 
	
	
	
	

	Achievement of 2nd Quarter
	 	$	750	 	 	Not Achieved	 	No Payment
	
	
	
	

	Achievement of 3rd Quarter
	 	$	750	 	 	Achieved	 	$	750	 
	
	
	
	

	Achievement of 4th Quarter
	 	$	750	 	 	Not Achieved	 	No Payment
	
	
	
	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of 1st Quarter
	 	$	750	 	 	Achieved 110% YTD	 	$	750	 
	
	
	
	

	 	Cumulative YTD
	 	 	 	 	 	(Achieved 110% YTD 1st Qtr)	 	 	 	 
	
	
	
	

	Achievement of 2nd Quarter
	 	$	750	 	 	Achieved 102% YTD	 	$	750	 
	
	
	
	

	 	Cumulative YTD
	 	 	 	 	 	(Achieved 94% 2nd Qtr)	 	 	 	 
	
	
	
	

	Achievement of 3rd Quarter
	 	$	750	 	 	Achieved 100% YTD	 	$	750	 
	
	
	
	

	 	Cumulative YTD
	 	 	 	 	 	(Achieved 96% 3rd Qtr)	 	 	 	 
	
	
	
	

	Achievement of 4th Quarter
	 	$	750	 	 	Achieved 104% YTD	 	$	750	 
	
	
	
	

	 	Cumulative YTD
	 	 	 	 	 	(Achieved 112% 4th Qtr)	 	 	 	 
	
	
	
	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of Annual
	 	 	 	 	 	Achieved at 104%	 	 	 	 
	
	
	
	

	 	Net Contribution
	 	$	14,000	 	 	Of Plan	 	$	14,000	 
	 
	 	 	 	 	 	 	 	 	 	 	
	 
	 
	 	 	 	 	 	Total	 	$	18,500	 

Since the Division / Project Objective was 104% of Plan, the $18,500 would be
increased by 112% (3% for each 1% over 100%) for a total payment of $20,720.

The total bonus paid to this participant would be $27,792.

 

 

WCI Communities, Inc.

Management Incentive Compensation Plan

Page 20

EXHIBIT D

Division Operating Personnel

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Base Salary:
	 	$	100,000	 
	
	
	
	

	Target Bonus %:
	 	 	40%	 
	
	
	
	

	Target Bonus Amount:
	 	$	40,000	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Division/Project Financial Objectives
	 	$	32,000 (80	%)
	
	
	
	

	Company Financial Objectives
	 	$	8,000 (20	%)
	 
	 	 	
	 
	 
	 	$	40,000 (100	%)

Corporate Financial Objectives

(@ 20% of Targeted Bonus, or $8,000)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	Targeted	 	Hypothetical	 	Bonus
	(@ 75% or $6,000)	 	Bonus	 	Result	 	Paid
	
	 	
	 	
	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of 1st Quarter
	 	$	225	 	 	Achieved	 	$	225	 
	
	
	
	

	Achievement of 2nd Quarter
	 	$	225	 	 	Not Achieved	 	No Payment
	
	
	
	

	Achievement of 3rd Quarter
	 	$	225	 	 	Achieved	 	$	225	 
	
	
	
	

	Achievement of 4th Quarter
	 	$	225	 	 	Not Achieved	 	No Payment
	
	
	
	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 110% YTD	 	$	225	 
	
	
	
	

	 	1st Quarter YTD Net Income
	 	 	 	 	 	(Achieved 110% YTD 1st Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 102% YTD	 	$	225	 
	
	
	
	

	 	2nd Quarter YTD Net Income
	 	 	 	 	 	(Achieved 94% 2nd Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 100% YTD	 	$	225	 
	
	
	
	

	 	3rd Quarter YTD Net Income
	 	 	 	 	 	(Achieved 96% 3rd Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 104% YTD	 	$	225	 
	
	
	
	

	 	4th Quarter YTD Net Income
	 	 	 	 	 	(Achieved 112% 4th Qtr)	 	 	 	 
	
	
	
	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of Annual
	 	$	4,200	 	 	Achieved @ 104%	 	$	4,200	 
	
	
	
	

	 	Net Profit
	 	 	 	 	 	Of Plan	 	 	 	 
	
	
	
	

	Return on Capital
	 	$	2,000	 	 	Achieved @ 100%	 	$	2,000	 
	
	
	
	

	(@ 25% or $2,000)
	 	 	 	 	 	Of Plan	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	
	 
	 
	 	 	 	 	 	Total	 	$	7,550	 

Since the Net Income was 104% of Plan and the Return on Capital achieved was
100% or better, the $7,550 bonus achieved would be increased by 112% (3% for
each 1% Net Income over 100%) for a total bonus payment of $8,456.

 

 

WCI Communities, Inc.

Management Incentive Compensation Plan

Page 21

 

 

Division / Project Objectives

(@ 80% of Targeted Bonus, or $32,000)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Contribution	 	Targeted	 	Hypothetical	 	Bonus
	 	 	Bonus	 	Result	 	Paid
	 	 	 	
	 	
	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of 1st Quarter
	 	$	1,200	 	 	Achieved	 	$	1,200	 
	
	
	
	

	Achievement of 2nd Quarter
	 	$	1,200	 	 	Not Achieved	 	No Payout
	
	
	
	

	Achievement of 3rd Quarter
	 	$	1,200	 	 	Achieved	 	$	1,200	 
	
	
	
	

	Achievement of 4th Quarter
	 	$	1,200	 	 	Not Achieved	 	No Payout
	
	
	
	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of 1st Quarter
	 	$	1,200	 	 	Achieved 110% YTD	 	$	1,200	 
	
	
	
	

	 	Cumulative YTD
	 	 	 	 	 	(Achieved 110% YTD 1st Qtr)	 	 	 	 
	
	
	
	

	Achievement of 2nd Quarter
	 	$	1,200	 	 	Achieved 102% YTD	 	$	1,200	 
	
	
	
	

	 	Cumulative YTD
	 	 	 	 	 	(Achieved 94% 2nd Qtr)	 	 	 	 
	
	
	
	

	Achievement of 3rd Quarter
	 	$	1,200	 	 	Achieved 100% YTD	 	$	1,200	 
	
	
	
	

	 	Cumulative YTD
	 	 	 	 	 	(Achieved 96% 3rd Qtr)	 	 	 	 
	
	
	
	

	Achievement of 4th Quarter
	 	$	1,200	 	 	Achieved 104% YTD	 	$	1,200	 
	
	
	
	

	 	Cumulative YTD
	 	 	 	 	 	(Achieved 112% 4th Qtr)	 	 	 	 
	
	
	
	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of Annual
	 	 	 	 	 	Achieved at 104%	 	 	 	 
	
	
	
	

	 	Net Contribution
	 	$	22,400	 	 	Of Plan	 	$	22,400	 
	 
	 	 	 	 	 	 	 	 	 	 	
	 
	 
	 	 	 	 	 	Total	 	$	29,600	 

Since the Division / Project Objective was 104% of Plan, the $29,600 would be
increased by 112% (3% for each 1% over 100%) for a total payment of $33,152.

The total bonus paid to this participant would be $41,608.

 

 

WCI Communities, Inc.

Management Incentive Compensation Plan

Page 22

EXHIBIT DD

Division Operating Personnel

(In the event 100% of Return on Capital is not met)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Base Salary:
	 	$	100,000	 
	
	
	
	

	Target Bonus %:
	 	 	40%	 
	
	
	
	

	Target Bonus Amount:
	 	$	40,000	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Division/Project Financial Objectives
	 	$	32,000 (80	%)
	
	
	
	

	Company Financial Objectives
	 	$	8,000 (20	%)
	 
	 	 	
	 
	 
	 	$	40,000 (100	%)

Corporate Financial Objectives

(@ 20% of Targeted Bonus, or $8,000)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	Targeted	 	Hypothetical	 	Bonus
	(@ 75% or $6,000)	 	Bonus	 	Result	 	Paid
	
	 	
	 	
	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of 1st Quarter
	 	$	225	 	 	Achieved	 	$	225	 
	
	
	
	

	Achievement of 2nd Quarter
	 	$	225	 	 	Not Achieved	 	No Payment
	
	
	
	

	Achievement of 3rd Quarter
	 	$	225	 	 	Achieved	 	$	225	 
	
	
	
	

	Achievement of 4th Quarter
	 	$	225	 	 	Not Achieved	 	No Payment
	
	
	
	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 110% YTD	 	$	225	 
	
	
	
	

	 	1st Quarter YTD Net Income
	 	 	 	 	 	(Achieved 110% YTD 1st Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 102% YTD	 	$	225	 
	
	
	
	

	 	2nd Quarter YTD Net Income
	 	 	 	 	 	(Achieved 94% 2nd Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 100% YTD	 	$	225	 
	
	
	
	

	 	3rd Quarter YTD Net Income
	 	 	 	 	 	(Achieved 96% 3rd Qtr)	 	 	 	 
	
	
	
	

	Achieve Cumulative
	 	$	225	 	 	Achieved 104% YTD	 	$	225	 
	
	
	
	

	 	4th Quarter YTD Net Income
	 	 	 	 	 	(Achieved 112% 4th Qtr)	 	 	 	 
	
	
	
	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of Annual
Net Profit
	 	$	4,200	 	 	Achieved @ 104%	 	$	4,200	 
	
	
	
	

	 
	 	 	 	 	 	Of Plan	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	
	 
	 
	 	 	 	 	 	Total	 	$	5,550	 
	
	
	
	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Return on Capital
	 	$	2,000	 	 	Achieved @ 68%	 	$	1,360	 
	
	
	
	

	(@ 25% or $2,000)
	 	 	 	 	 	Of Plan	 	 	 	 

Since the Net Income was 104% of the Plan, the Net Income bonus achieved of
$5,550 will be increased by 112% (3% for each 1% over 100%) or $6,216, and
added to $1,360 (ROC @ 16.8% — 15.4% =1.4% ÷ .15% =9.3% x 3% +40% = 68%) for a
Corporate financial bonus of $7,576.

 

 

WCI Communities, Inc.

Management Incentive Compensation Plan

Page 23

 

 

Division / Project Objectives

(@ 80% of Targeted Bonus, or $32,000)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Contribution	 	Targeted	 	Hypothetical	 	Bonus
	 	 	Bonus	 	Result	 	Paid
	 	 	 	
	 	
	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of 1st Quarter
	 	$	1,200	 	 	Achieved	 	$	1,200	 
	
	
	
	

	Achievement of 2nd Quarter
	 	$	1,200	 	 	Not Achieved	 	No Payout
	
	
	
	

	Achievement of 3rd Quarter
	 	$	1,200	 	 	Achieved	 	$	1,200	 
	
	
	
	

	Achievement of 4th Quarter
	 	$	1,200	 	 	Not Achieved	 	No Payout
	
	
	
	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of 1st Quarter
	 	$	1,200	 	 	Achieved 110% YTD	 	$	1,200	 
	
	
	
	

	 	Cumulative YTD (
	 	 	 	 	 	(Achieved 110% YTD 1st Qtr)	 	 	 	 
	
	
	
	

	Achievement of 2nd Quarter
	 	$	1,200	 	 	Achieved 102% YTD	 	$	1,200	 
	
	
	
	

	 	Cumulative YTD
	 	 	 	 	 	(Achieved 94% 2nd Qtr)	 	 	 	 
	
	
	
	

	Achievement of 3rd Quarter
	 	$	1,200	 	 	Achieved 100% YTD	 	$	1,200	 
	
	
	
	

	 	Cumulative YTD
	 	 	 	 	 	(Achieved 96% 3rd Qtr)	 	 	 	 
	
	
	
	

	Achievement of 4th Quarter
	 	$	1,200	 	 	Achieved 104% YTD	 	$	1,200	 
	
	
	
	

	 	Cumulative YTD
	 	 	 	 	 	(Achieved 112% 4th Qtr)	 	 	 	 
	
	
	
	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
	
	
	

	Achievement of Annual
	 	 	 	 	 	Achieved at 104%	 	 	 	 
	
	
	
	

	 	Net Contribution
	 	$	22,400	 	 	Of Plan	 	$	22,400	 
	 
	 	 	 	 	 	 	 	 	 	 	
	 
	 
	 	 	 	 	 	Total	 	$	29,600	 

Since the Division / Project Objective was 104% of Plan, the $29,600 would be
increased by 112% (3% for each 1% over 100%) for a total payment of $33,152.

The total bonus paid to this participant would be $40,728<PAGE>

                                                                    EXHIBIT 10.5

This agreement is dated 21st Feb 2002

BETWEEN

The Vendors    John Joseph Carroll and Elizabeth Ann Carroll
               of The Coach House Wren Court
               Bridingbury Nr Rugby CV23 8EW

               and

               Derek Andrew Carroll and Suzette Carroll
               of Stonewood Cottage Draycotte
               Rugby Warwickshire CV23 9RB

The Purchaser  Warminster Systems Limited
               of 55-57 Woodcock Trading Estate
               Warminster Wiltshire BA12 9DX

WHEREAS the parties entered into an agreement for the sale of the Vendors'
shares in Automative Information Control Systems (UK) Limited (the Company) on
28 June 2001 and the vendors agreed to accept in payment of their shares in the
Company 76924 shares in Auto-Q International Inc (Auto-Q)

NOW IT IS HEREBY agreed that the completion of the acquisition of the shares
held by the Vendors in the Company is contingent on the listing of the common
shares of Auto-Q on the OTC Bulletin Board of Nasdaq

Signed by the said Elizabeth Ann Carroll)         /s/ E. A. Carroll
in the presence of:-                    )
/s/ [SIGNATURE ILLEGIBLE]

Signed by the said Suzette Carroll      )         /s/ S. Carroll
in the presence of:-                    )
/s/ [SIGNATURE ILLEGIBLE]

Signed by the said Derek Andrew Carroll )         /s/ D. A. Carroll
in the presence of:-                    )
/s/ [SIGNATURE ILLEGIBLE]

Signed by the said John Joseph Carroll  )         /s/ J. J. Carroll
in the presence of:-                    )
/s/ [SIGNATURE ILLEGIBLE]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]