Document:

EXHIBIT 10.1

 

INFOCUS CORPORATION

 

2005 EXECUTIVE & DIRECTOR BONUS PLAN

 

POLICY:               It is InFocus
Corporation’s policy to provide Executives and Directors with the opportunity
for increased compensation based upon a combination of overall achievement of
InFocus Corporation’s Adjusted Net Income goals and Individual/Team objectives.

 

PLAN
GUIDELINES

 

1.             Adoption of Plan:  The Executive & Director Bonus Plan
(the “Plan”) was adopted by the Board of Directors of InFocus Corporation (the “Company”)
effective February 17, 2005.

 

2.             Purpose of Plan and Effective Date:  The purpose of the Plan is to establish the
terms and conditions under which the Company will pay Executive and Director
bonuses for the calendar year beginning January 1, 2005 and ending December 31,
2005.

 

Unless the Board of Directors
specifically provides otherwise, all Executive and Director bonuses will be
awarded solely in accordance with this Plan.

 

3.             Eligibility:  Eligibility is limited to Executives and
Directors of InFocus Corporation who hold one of the job titles listed in the
table in Section 5 below.

 

In
the event that an Executive or Director is in their position for less than one
year, the target bonus amount will be pro-rated as follows for the month during
which the action took place.

 

Internal Promotions:  Individuals promoted between the 1st
- 15th of the month will receive 100% consideration for the month
they were promoted.  Individuals promoted
between the 16th – end of the month will receive 50% consideration
for the month they were promoted.

 

External New Hires:  Newly hired participants will receive
consideration for the number of days remaining in the month they were
hired.  For example, an employee who
starts on July 14th will receive credit for 18 out of the 31
days in the month of July.

 

No
annual bonus will be paid if any Executive or Director enters their position
after October 1, 2005.  Executives
and Directors must be actively employed on the last day of the year to be
eligible for any annual bonus amount.

 

4.             Plan Components:

 

(a)  Profit
Sharing:  The first
component of the bonus plan is the payment of profit sharing, paid
quarterly.  The percentage to be paid
(multiplied by the Executive or Director’s quarterly salary) will be at the
same rate as calculated for other employees in accordance with the currently
approved InFocus Corporation Profit Sharing Program

 

1

 

NOTE:  If an eligible Executive or Director is in
active pay status for less than an entire quarter, any profit sharing payment
will be prorated by actual earnings during the quarter.

 

(b) Annual Bonus:  The second component of the bonus plan is an
annual bonus paid based on the Company’s 2005 financial performance and
specifically InFocus Corporation’s Adjusted Net Income.

 

5.             Target Bonus Participation Rates:

 

Executives
and Directors will participate in the 2005 Bonus Plan as per the table below:

 

	
  Title

  	
   

  	
  Participation Rate

  	
   

  
	
  President & Chief Executive Officer

  	
   

  	
  80

  	
  %

  
	
  Executive Vice President

  	
   

  	
  65

  	
  %

  
	
  Senior Vice President

  	
   

  	
  50

  	
  %

  
	
  Chairman of the Board

  	
   

  	
  50

  	
  %

  
	
  Vice President

  	
   

  	
  45

  	
  %

  
	
  Senior Director

  	
   

  	
  30

  	
  %

  
	
  Director

  	
   

  	
  20

  	
  %

  

 

6.             Target Bonus Amount Calculation:

 

Individual
Target Bonus amounts will be determined using the following calculation:

 

Annual
Base Salary (or salaries) x Participation Rate = Target Bonus Amount

 

•      The
majority of the target bonus is based on Corporate Adjusted Net Income results
and

 

•      A
smaller portion of the target bonus is based on Individual/Team objectives

 

	
   

  	
   

  	
  Portion of 2005 Target Bonus

  Based on:

  	
   

  
	
  Position

  	
   

  	
  Corporate

  Results

  	
   

  	
  Individual/Team

  Results

  	
   

  
	
  President & Chief Executive Officer

  	
   

  	
  80

  	
  %

  	
  20

  	
  %

  
	
  Executive Vice President

  	
   

  	
  70

  	
  %

  	
  30

  	
  %

  
	
  Senior Vice President

  	
   

  	
  70

  	
  %

  	
  30

  	
  %

  
	
  Chairman of the Board

  	
   

  	
  100

  	
  %

  	
  0

  	
  %

  
	
  Vice President

  	
   

  	
  70

  	
  %

  	
  30

  	
  %

  
	
  Senior Director

  	
   

  	
  70

  	
  %

  	
  30

  	
  %

  
	
  Director

  	
   

  	
  70

  	
  %

  	
  30

  	
  %

  

 

Example: 
Vice President with annual base salary of $200,000

 

$200,000
x 45% = $90,000 as 2005 Target Bonus Amount

 

•      70%
or $63,000 is based on Corporate Adjusted Net Income and

 

•      30%
or $27,000 is based on Individual/Team objectives

 

2

 

NOTE:  Individual/Team
objectives must be quantifiable, measurable and approved by CEO no later than March 31,
2005.

 

7.             Above Plan Performance:

 

CORPORATE
PORTION:

 

Above
plan performance will be based on attainment of the following levels of
Corporate Adjusted Net Income and corresponding percent of target bonus amounts
as per the following table:

 

	
  Percent of Corporate Adjusted

  Net Income Goal

  	
   

  	
  Percent of Target Bonus Paid

  	
   

  
	
  100

  	
  %

  	
  100

  	
  %

  
	
  175

  	
  %

  	
  125

  	
  %

  
	
  250

  	
  %

  	
  150

  	
  %

  
	
  325

  	
  %

  	
  175

  	
  %

  
	
  400

  	
  %

  	
  200

  	
  %

  

 

INDIVIDUAL/TEAM PORTION:

 

Payout for the individual/team portion is capped at
100% of the target amount

 

8.             Below Plan Performance:

 

CORPORATE
PORTION:

 

If
Corporate Adjusted Net Income is less than 75%, the target bonus payout will be
equal to $0.

 

3

 

If
Corporate Adjusted Net Income is between 75% and 100%, the target bonus will be
modified as per the following table:

 

	
  Final Corporate

  Adjusted Net Income

  Attainment

  	
   

  	
  Corporate Portion

  Target Bonus Modifier

  	
   

  
	
  74

  	
  %

  	
  0.0

  	
  %

  
	
  75

  	
  %

  	
  50.0

  	
  %

  
	
  76

  	
  %

  	
  52.0

  	
  %

  
	
  77

  	
  %

  	
  54.0

  	
  %

  
	
  78

  	
  %

  	
  56.0

  	
  %

  
	
  79

  	
  %

  	
  58.0

  	
  %

  
	
  80

  	
  %

  	
  60.0

  	
  %

  
	
  81

  	
  %

  	
  62.0

  	
  %

  
	
  82

  	
  %

  	
  64.0

  	
  %

  
	
  83

  	
  %

  	
  66.0

  	
  %

  
	
  84

  	
  %

  	
  68.0

  	
  %

  
	
  85

  	
  %

  	
  70.0

  	
  %

  
	
  86

  	
  %

  	
  72.0

  	
  %

  
	
  87

  	
  %

  	
  74.0

  	
  %

  
	
  88

  	
  %

  	
  76.0

  	
  %

  
	
  89

  	
  %

  	
  78.0

  	
  %

  
	
  90

  	
  %

  	
  80.0

  	
  %

  
	
  91

  	
  %

  	
  82.0

  	
  %

  
	
  92

  	
  %

  	
  84.0

  	
  %

  
	
  93

  	
  %

  	
  86.0

  	
  %

  
	
  94

  	
  %

  	
  88.0

  	
  %

  
	
  95

  	
  %

  	
  90.0

  	
  %

  
	
  96

  	
  %

  	
  92.0

  	
  %

  
	
  97

  	
  %

  	
  94.0

  	
  %

  
	
  98

  	
  %

  	
  96.0

  	
  %

  
	
  99

  	
  %

  	
  98.0

  	
  %

  
	
  100

  	
  %

  	
  100.0

  	
  %

  

 

INDIVIDUAL/TEAM
PORTION:

 

Impact
of Corporate Adjusted Net Income results:

 

•      Minimum
threshold of 75% Corporate Adjusted Net Income or no payout of Individual/Team
portion

 

•      Individual/Team
portion reduced when Corporate Adjusted Net Income performance is between 75%
and 100% per the table below

 

4

 

Impact
of Individual/Team results:

 

•      Minimum
threshold of 75% attainment against Individual/Team objectives or no payout of
Individual/Team or Corporate
portions

 

•      Target
Individual/Team portion payment reduced when Individual/Team performance is
between 75% and 100% per the table below:

 

	
  Final Individual/

  Team

  Attainment

  	
   

  	
  Individual/Team

  Target Bonus

  Modifier:

  	
   

  
	
  74

  	
  %

  	
  0.0

  	
  %

  
	
  75

  	
  %

  	
  50.0

  	
  %

  
	
  76

  	
  %

  	
  52.0

  	
  %

  
	
  77

  	
  %

  	
  54.0

  	
  %

  
	
  78

  	
  %

  	
  56.0

  	
  %

  
	
  79

  	
  %

  	
  58.0

  	
  %

  
	
  80

  	
  %

  	
  60.0

  	
  %

  
	
  81

  	
  %

  	
  62.0

  	
  %

  
	
  82

  	
  %

  	
  64.0

  	
  %

  
	
  83

  	
  %

  	
  66.0

  	
  %

  
	
  84

  	
  %

  	
  68.0

  	
  %

  
	
  85

  	
  %

  	
  70.0

  	
  %

  
	
  86

  	
  %

  	
  72.0

  	
  %

  
	
  87

  	
  %

  	
  74.0

  	
  %

  
	
  88

  	
  %

  	
  76.0

  	
  %

  
	
  89

  	
  %

  	
  78.0

  	
  %

  
	
  90

  	
  %

  	
  80.0

  	
  %

  
	
  91

  	
  %

  	
  82.0

  	
  %

  
	
  92

  	
  %

  	
  84.0

  	
  %

  
	
  93

  	
  %

  	
  86.0

  	
  %

  
	
  94

  	
  %

  	
  88.0

  	
  %

  
	
  95

  	
  %

  	
  90.0

  	
  %

  
	
  96

  	
  %

  	
  92.0

  	
  %

  
	
  97

  	
  %

  	
  94.0

  	
  %

  
	
  98

  	
  %

  	
  96.0

  	
  %

  
	
  99

  	
  %

  	
  98.0

  	
  %

  
	
  100

  	
  %

  	
  100.0

  	
  %

  

 

9.             Payment of Executive and Director Bonuses:  Payment of the Executive and Director Bonus
Plan will be based on audited year-end results and final approval by the Board
of Directors.  Payments will be
distributed within 30 days after final approval by the Board of Directors.

 

10.           Discretion of the Board of Directors:  Nothing in this Plan shall prohibit the Board
of Directors from awarding a bonus to one or more Executives or Directors in
addition to the Executive and Director Bonus awarded pursuant to this Plan.

 

The
Board of Directors reserves the right to modify, change or rescind this policy
at any time at its sole discretion as is required to meet the Company’s
objectives.

 

5Exhibit 10.1

Loan No. RIE539S01A

 

STATUSED REVOLVING CREDIT SUPPLEMENT

                THIS SUPPLEMENT to the Master Loan
Agreement dated February 24, 2004 (the “MLA”), is entered into as of February
17, 2005, and effective February 22,
2005 (“Effective Date”),  between CoBANK, ACB (“CoBank”) and DAKOTA GROWERS PASTA
COMPANY, INC., Carrington, North Dakota (the “Company”), and amends
and restates the Supplement dated February 24, 2004 and numbered RIE539S01.

 

                SECTION 1.         The Revolving Credit Facility.  On the terms and conditions set forth in the
MLA and this Supplement, CoBank agrees to make loans to the Company during the
period set forth below in an aggregate principal amount not to exceed, at any
one time outstanding, the lesser of $25,000,000.00 (the “Commitment”), or the
“Borrowing Base” (as calculated pursuant to the Borrowing Base Report attached
hereto as Exhibit A).  Within the limits
of the Commitment, the Company may borrow, repay and reborrow.

                SECTION
2.         Purpose.  The purpose of the Commitment is to finance the inventory and receivables
referred to in the Borrowing Base Report.

                SECTION
3.         Term.  The term of the Commitment shall be from the Effective Date hereof, up
to and including February 20, 2006, or such later date as CoBank may, in its
sole discretion, authorize in writing.

 

                SECTION 4.         Interest.  The
Company agrees to pay interest on the unpaid balance of the loans in accordance
with one or more of the following interest rate options, as selected by the
Company:

                        (A)      Weekly
Quoted Variable Rate.  At a rate
per annum equal at all times to the rate of interest established by CoBank on
the first Business Day of each week.  The
rate established by CoBank shall be effective until the first Business Day of
the next week.  Each change in the rate
shall be applicable to all balances subject to this option and information
about the then current rate shall be made available upon telephonic request.

                        (B)      Quoted
Rate.   At a fixed rate
per annum to be quoted by CoBank in its sole discretion in each instance.  Under this option, rates may be fixed on such
balances and for such periods, as may be agreeable to CoBank in its sole
discretion in each instance, provided
that:  (1) the minimum fixed period shall
be 30 days; (2) amounts may be fixed in increments of $500,000.00 or multiples
thereof; and (3) the maximum number of fixes in place at any one time shall be
10.

The
Company shall select the applicable rate option at the time it requests a loan
hereunder and may, subject to the limitations set forth above, elect to convert
balances bearing interest at the variable rate option to one of the fixed rate
options.  Upon the expiration of any
fixed rate period, interest shall automatically accrue at the variable rate
option unless the amount fixed is repaid or 

 

fixed for an additional period in accordance with
the terms hereof.  Notwithstanding the
foregoing, rates may not be fixed for periods expiring after the maturity date
of the loans.  All elections provided for
herein shall be made telephonically or in writing and must be received by 12:00
Noon Company’s local time.  Interest
shall be calculated on the actual number of days each loan is outstanding on
the basis of a year consisting of 360 days and shall be payable monthly in arrears
by the 20th day of the following month or on such other day in such month as
CoBank shall require in a written notice to the Company.

                SECTION
5.         Promissory Note.  The Company promises to repay the unpaid
principal balance of the loans on the last day of the term of the
Commitment.  In addition to the above,
the Company promises to pay interest on the unpaid principal balance of the
loans at the times and in accordance with the provisions set forth in Section 4
hereof.  This note replaces and
supersedes, but does not constitute payment of the indebtedness evidenced by,
the promissory note set forth in the Supplement being amended and restated
hereby.

                SECTION 6.         Borrowing Base Reports, Etc.  The Company agrees to furnish a
Borrowing Base Report to CoBank at such times or intervals as CoBank may from
time to time request.  Until receipt of
such a request, the Company agrees to furnish a Borrowing Base Report to CoBank
within 50 days after each month end calculating the Borrowing Base as of the
last day of the month for which the Report is being furnished.  However, if no balance is outstanding
hereunder on the last day of such month, then no Report need be furnished.  Regardless of the frequency of the reporting,
if at any time the amount outstanding under the Commitment exceeds the
Borrowing Base, the Company shall immediately notify CoBank and repay so much
of the loans as is necessary to reduce the amount outstanding under the
Commitment to the limits of the Borrowing Base.

                SECTION
7.         Letters of Credit.  If agreeable to CoBank in
its sole discretion in each instance, in addition to loans, the Company may
utilize the Commitment to open irrevocable letters of credit for its
account.  Each letter of credit will be
issued within a reasonable period of time after receipt of a duly completed and
executed copy of CoBank’s then current form of application or, if applicable,
in accordance with the terms of any CoTrade Agreement between the parties, and
shall reduce the amount available under the Commitment by the maximum amount
capable of being drawn thereunder.  Any
draw under any letter of credit issued hereunder shall be deemed an advance
under the Commitment.  Each letter of
credit must be in form and content acceptable to CoBank and must expire no
later than the maturity date of the loans. 
Notwithstanding the foregoing or any other provision hereof, the maximum
amount capable of being drawn under each letter of credit must be statused
against the Borrowing Base in the same manner as if it were a loan, and in the
event that (after repaying all loans) the maximum amount capable of being drawn
under the letters of credit exceeds the Borrowing Base, then the Company shall
immediately notify CoBank and pay to CoBank (to be held as cash collateral) an
amount equal to such excess.

                SECTION 8.         Servicing Fee.  The Company agrees to pay to CoBank a
servicing fee on the average daily balance for each calendar quarter at the
rate of 1/10 of 1% per annum (calculated on a 360 day basis), payable quarterly
in arrears by the 20th day following such calendar quarter.

 

                SECTION 9.         Amendment
Fee.  In consideration of the amendment, the
Company agrees to pay to CoBank on the execution hereof a fee in the amount of
$6,000.00.

 

                IN
WITNESS WHEREOF, the parties have caused this Supplement to be
executed by their duly authorized officers as of the date shown above.

 

	
  CoBANK,
  ACB

  	
   

  	
  DAKOTA
  GROWERS PASTA COMPANY, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
  /s/
  Thomas Friezen

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
  CFO

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