Document:

Exhibit 10.2

VICE PRESIDENT, CHIEF FINANCIAL OFFICER

Effective: January 1, 2013

 

VICE PRESIDENT, CHIEF FINANCIAL OFFICER

PURPOSE:  To define the compensation plan for the Vice President, Chief Financial Officer.

SCOPE:  Perma-Fix Environmental Services, Inc.

POLICY:  The Vice President, Chief Financial Officer Compensation Plan is designed to retain, motivate and reward the incumbent to support and achieve the business, operating and financial objectives of Perma-Fix Environmental Services, Inc (the “Company”).

BASE SALARY:  The Base Salary indicated below is paid in equal periodic installments per the regularly scheduled payroll.

PERFORMANCE INCENTIVE COMPENSATION: Performance Incentive Compensation is available based on the Company’s financial results noted in Schedule A.  Effective date of plan is January 1, 2013 and incentive will be for entire year. Performance incentive compensation will be paid on or about 90 days after year-end, or sooner, based on final 10-K financial statement.

SEPARATION:  If employment is separated prior to the annual incentive compensation payment date as noted above, no incentive compensation is due to the incumbent.

ACKNOWLEDGEMENT:  Payment of Performance Incentive Compensation of any type will be forfeited, unless the Human Resources Department has received a signed acknowledgement of receipt of the Compensation Plan prior to the applicable payment date.

INTERPRETATIONS:  The Compensation Committee of the Board of Directors retains the right to modify, change or terminate the Compensation Plan at any time and for any reason.  It also reserves the right to determine the final interpretation of any provision contained in the Compensation Plan and it reserves the right to modify or change the Administrative and EBITDA Target as defined herein in the event of the sale or disposition of any of the assets of the Company.  While the plan is intended to represent all situations and circumstances, some issues may not easily be addressed.  The Compensation Committee will endeavor to review all standard and non-standard issues related to the Compensation Plan and will provide quick interpretations that are in the best interest of the Company, its shareholders and the incumbent.

 

VICE PRESIDENT, CHIEF FINANCIAL OFFICER

Base Pay and Performance Incentive Compensation Targets

The compensation for the below named individual as follows:

	
Annualized Base Pay:

	 	
$

	
214,240

	 
	
Performance Incentive Compensation Target (at 100% of Plan):

	 	
$

	
53,560

	 
	
Total Annual Target Compensation (at 100% of Plan):

	 	
$

	
267,800

	 

The Performance Incentive Compensation Target is based on the Schedule A below.

	
 

	 	 	
Performance Target Thresholds

	
 

	 	
Weights

	 	 	 	
100%+

		 	 	
98-99%

		 	 	
96-97%

		 	 	
94-95%

		 	 	
92-93%

		 	 	
90-91%

		 	 	
88-89%

	
 

	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Administrative

	 	 	
25

	
%

	 	 	
13,390

	 	 	 	
16,068

	 	 	 	
17,407

	 	 	 	
18,746

	 	 	 	
20,085

	 	 	 	
21,424

	 	 	 	
23,433

	 
	
 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
 

	 	 	 	 	 	
Performance Target Thresholds

	
 

	 	
Weights

	 	 	 	
85-100%

		 	 	
101-120%

		 	 	
121-130%

		 	 	
131-140%

		 	 	
141-150%

		 	 	
151-160%

		 	 	
161%+

	
 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
EBITDA

	 	 	
50

	
%

	 	 	
26,780

	 	 	 	
32,136

	 	 	 	
34,814

	 	 	 	
37,492

	 	 	 	
40,170

	 	 	 	
42,848

	 	 	 	
46,865

	 
	
 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Discretionary

	 	 	
25

	
%

	 	 	
13,390

	 	 	 	
16,068

	 	 	 	
17,407

	 	 	 	
18,746

	 	 	 	
20,085

	 	 	 	
21,424

	 	 	 	
23,433

	 
	
 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
 

	 	 	 	 	 	 	
53,560

	 	 	 	
64,272

	 	 	 	
69,628

	 	 	 	
74,984

	 	 	 	
80,340

	 	 	 	
85,696

	 	 	 	
93,731

	 

	1)	
Administrative Expense is defined as the total consolidated administrative expenses from continuing operations as publicly reported in the Company’s financial statements.  Administrative expenses will be inclusive of all subsidiaries from continuing operations, and will exclude Marketing Expenses and Interest Expense. The Board reserves the right to make adjustments to Administrative expense Target so as not to penalize the employee for material unforeseen events outside of the employees responsibility and it reserves the right to modify or change the Administrative Expense Targets as defined herein, which is $13,390,000 in the event of the sale or disposition of any of the assets of the Company or in the event of an acquisition.  The Board further reserves the right to adjust Administrative Expenses Target to reflect charges resulting from the vesting of incentive stock options.

 

	2)	
EBITDA is defined as earnings before interest, taxes, depreciation, and amortization from continuing operations.  The percentage achieved is determined by comparing the actual EBITDA to the Board approved EBITDA Target, which is $9,567,000.  The Board reserves the right to make adjustments to the EBITDA Target to account for the unique accounting treatment of fair market value of percentage of completion contracts resulting from the acquisition of Safety and Ecology Holdings Corporation and its subsidiaries (“SEC”).

 

	3)	
Discretionary incentive payment is to be approved by the Compensation Committee based on achievement of accounting, financial, and accounting centralization and information technology oversight objectives, including but not limited to:

 

		·	
Compliance with the requirement of the Sarbanes-Oxley Act of 2002 (“SOX”);

 

		·	
Meeting public filing deadlines such as Form 10-K, Form 10-Qs, Form 8-Ks, and press releases;

 

		·	
Automation and centralization of accounting processes, including but not limited to: (a) install multi-company software at corporate office; (b) improve forecasting model from facilities including new software, if cost effective; (c) sales and opportunity tracking system; (d) complete improvement to time management system; and (e) improve project tracking system; and

 

		·	
Collection of problem accounts receivable.

 

		4)	No discretionary performance incentive compensation will be payable unless a minimum of 70% of the EBITDA Target is achieved. In addition, no performance incentive compensation will be payable for achieving the administrative expense target unless a minimum of 70% of the EBITDA Target is achieved. 

 

Performance Incentive Compensation Payment

Effective date of plan is January 1, 2013 and incentive will be for entire year. Performance incentive compensation will be paid on or about 90 days after year-end, or sooner, based on final Form 10-K financial statement.

 

ACKNOWLEDGMENT:

 

I acknowledge receipt of the aforementioned Vice President, Chief Financial Officer 2013 - Compensation Plan.  I have read and understand and accept employment under the terms and conditions set forth therein.

	
/s/ Ben Naccarato

	
 

	
 

	
6/12/2013

	
 

	
 

	
/s/Ben Naccarato

	
 

	
 

	
Date

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
/s/Mark Zwecker

	
 

	
 

	
6/12/2013

	
 

	
 

	
/s/ Board of Director

	
 

	
 

	
DateExhibit 10.3

CHIEF OPERATING OFFICER

Effective: January 1, 2013

 

CHIEF OPERATING OFFICER

PURPOSE:  To define the compensation plan for the CHIEF OPERATING OFFICER.

SCOPE: Perma-Fix Environmental Services, Inc.

POLICY:  The Compensation Plan is designed to retain, motivate and reward the incumbent to support and achieve the business, operating and financial objectives of Perma-Fix Environmental Services, Inc. (the “Company”).

BASE SALARY:  The Base Salary indicated below is paid in equal periodic installments per the regularly scheduled payroll.

PERFORMANCE INCENTIVE COMPENSATION: Performance Incentive Compensation is available based on the Company’s financial results noted in Schedule A.  Effective date of plan is January 1, 2013.  Performance incentive compensation will be paid on or about 90 days after year-end, or sooner, based on final Form 10-K financial statement.

SEPARATION:  If employment is separated prior to the annual incentive compensation payment date as noted above, no incentive compensation is due to the incumbent.

ACKNOWLEDGEMENT:  Payment of Performance Incentive Compensation of any type will be forfeited, unless the Human Resources Department has received a signed acknowledgement of receipt of the Compensation Plan prior to the applicable payment date.

INTERPRETATIONS:  The Compensation Committee of the Board of Directors retains the right to modify, change or terminate the Compensation Plan at any time and for any reason.  It also reserves the right to determine the final interpretation of any provision contained in the Compensation Plan and it reserves the right to modify or change the Revenue and EBITDA Targets as defined herein in the event of the sale or disposition of any of the assets of the Company.  While the plan is intended to represent all situations and circumstances, some issues may not easily be addressed.  The Compensation Committee will endeavor to review all standard and non-standard issues related to the Compensation Plan and will provide quick interpretations that are in the best interest of the Company, its shareholders and the incumbent.

 

 

CHIEF OPERATING OFFICER

Base Pay and Performance Incentive Compensation Targets

The compensation for the below named individual as follows:

	
Annualized Base Pay:

	 	
$

	
252,350

	 
	
Performance Incentive Compensation Target (at 100% of Plan):

	 	
$

	
126,175

	 
	
Total Annual Target Compensation (at 100% of Plan):

	 	
$

	
378,525

	 

The Performance Incentive Compensation Target is based on the schedule A below.

	
Target Objectives 

	
 

	 	

	 	 	
Performance Target Thresholds 

	
 

	 	
Weights

	 	 	 	
85-100%

		 	 	
101-120%

		 	 	
121-130%

		 	 	
131-140%

		 	 	
141-150%

		 	 	
151-160%

		 	 	
161%+

	
 

	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Revenue

	 	 	
15

	
%

	 	 	
18,926

	 	 	 	
22,712

	 	 	 	
24,604

	 	 	 	
26,497

	 	 	 	
28,389

	 	 	 	
30,282

	 	 	 	
33,121

	 
	
 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
EBITDA

	 	 	
55

	
%

	 	 	
69,397

	 	 	 	
83,277

	 	 	 	
90,216

	 	 	 	
97,156

	 	 	 	
104,096

	 	 	 	
111,036

	 	 	 	
121,445

	 
	
 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Health & Safety

	 	 	
15

	
%

	 	 	
18,926

	 	 	 	
22,712

	 	 	 	
24,604

	 	 	 	
26,497

	 	 	 	
28,389

	 	 	 	
30,282

	 	 	 	
33,121

	 
	
 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Permit & License Violations

	 	 	
15

	
%

	 	 	
18,926

	 	 	 	
22,712

	 	 	 	
24,604

	 	 	 	
26,497

	 	 	 	
28,389

	 	 	 	
30,282

	 	 	 	
33,121

	 
	
 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
 

	 	 	 	 	 	 	
126,175

	 	 	 	
151,413

	 	 	 	
164,028

	 	 	 	
176,647

	 	 	 	
189,263

	 	 	 	
201,882

	 	 	 	
220,808

	 

 

	1)	
Revenue is defined as the total consolidated third party top line revenue from continuing operations as publicly reported in the Company’s financial statements.  The percentage achieved is determined by comparing the actual consolidated revenue from continuing operations to the Board approved Revenue Target from continuing operations, which is $126,190,000.  The Board reserves the right to modify or change the Revenue Targets as defined herein in the event of the sale or disposition of any of the assets of the Company or in the event of an acquisition.

 

	2)	
EBITDA is defined as earnings before interest, taxes, depreciation, and amortization from continuing operations.  The percentage achieved is determined by comparing the actual EBITDA to the Board approved EBITDA Target, which is $9,567,000.  The Board reserves the right to make adjustments to the EBITDA Target to account for the unique accounting treatment of fair market value of percentage of completion contracts resulting from the acquisition of Safety and Ecology Holdings Corporation and its subsidiaries (“SEC”).

 

	3)	The Health and Safety Incentive target is based upon the actual number of Worker’s Compensation Lost Time Accidents, as provided by the Company’s Worker’s Compensation carrier.  The Corporate Treasurer will submit a report on a quarterly basis documenting and confirming the number of Worker’s Compensation Lost Time Accidents, supported by the AIG Worker’s Compensation Loss Report.  Such claims will be identified on the loss report as “indemnity claims.”  The following number of Worker’s Compensation Lost Time Accidents and corresponding Performance Target Thresholds has been established for the annual Incentive Compensation Plan calculation for 2013.

 

 

	
Work Comp.

Claim Number

	
 

	
Performance

Target

	
7

	
 

	
85% - 100%

	
6

	
 

	
101% - 120%

	
5

	
 

	
121% - 130%

	
4

	
 

	
131% - 140%

	
3

	
 

	
141% - 150%

	
2

	
 

	
151% - 160%

	
1

	
 

	
161% Plus

 

		4)	Permits or License Violations incentive is earned/determined according to the scale set forth below:  An “official notice of non-compliance” is defined as an official communication from a local, state, or federal regulatory authority alleging one or more violations of an otherwise applicable Environmental, Health or Safety requirement or permit provision, which results in a facility’s implementation of corrective action(s).

 

	
Permit and

License Violations

	
 

	
Performance

Target

	
7

	
 

	
85% - 100%

	
6

	
 

	
101% - 120%

	
5

	
 

	
121% - 130%

	
4

	
 

	
131% - 140%

	
3

	
 

	
141% - 150%

	
2

	
 

	
151% - 160%

	
1

	
 

	
161% Plus

	
 

	
 

	
 

		5)	
No performance incentive compensation will be payable for achieving the health and safety, permit and license violation, and revenue targets unless a minimum of 70% of the EBITDA Target is achieved.

 

Performance Incentive Compensation Payment

Effective date of plan is January 1, 2013.  Performance incentive compensation will be paid on or about 90 days after year-end, or sooner, based on final Form 10-K financial statement.

ACKNOWLEDGMENT:

I acknowledge receipt of the aforementioned Chief Operating Officer 2013 - Compensation Plan.  I have read and understand and accept employment under the terms and conditions set forth therein.

	
/s/James Blankenhorn

	
 

	
6/12/2013

	
 

	
 

	
/S/ James A. Blankenhorn

	
 

	
Date

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
/s/Mark Zwecker

	
 

	
6/12/2013

	
 

	
 

	
/S/ Board of Directors

	
 

	
Date

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