Document:

a5611101ex10_20.htm

    Exhibit
10.20

     

    B/E
AEROSPACE, INC,

    MANAGEMENT
INCENTIVE PLAN (100%) – FY 2008

    

    I.  Purpose

    

    The
purpose of this Management Incentive Plan (the “Plan”) is
to reward and encourage significant contributions to the success of BE
Aerospace, Inc. (the “Corporation”)
and its respective businesses.

    

    II.  Eligibility

    

    Eligibility
for participation in this Plan is determined by the Compensation Committee of
the Board of Directors (the “Committee”).  This
Plan primarily includes the Chairman & CEO, the President & COO and the
Sr. Vice President, CFO & Treasurer.  The Vice President of Human
Resources will ensure administration throughout the Corporation.

    

    III.  Plan
Approval

    

    The
financial and strategic business objectives (both criteria and targets) (the
“Objectives”)
will be established for the Corporation at the beginning of the fiscal year by
the Committee.

    

    IV.  Plan Participation
Level

    

    The
maximum potential incentive compensation for each executive is 100% of the
executive’s base salary (“Maximum
Award”), which is determined based on the level of achievement of the
applicable Objectives and individual strategic
initiatives.  Individual awards are targeted at 85% of the maximum
award (or 85% of base salary) (“Target
Award”).  Individuals who achieve each of the target levels of
the applicable Objectives and individual strategic initiatives are eligible to
receive the Target Award.  Actual individual awards can be increased
by the Committee in its sole discretion up to the Maximum Award or decreased
down to zero based on an individual’s performance and his/her contribution to
the Corporation.

    

    The Target Award of 85% of
base salary contemplates:

    
      	
               
      

            	
              ·

            	
              100%
      achievement of the targets for the Objectives and individual strategic
      initiatives.

            

    

    

    The Maximum Award of 100% of
base salary contemplates:

    
      	
               
      

            	
              ·

            	
              110%
      achievement of the targets for the Objectives and individual strategic
      initiatives.

            

    

    

    In
extraordinary cases, an award of up to an additional 20% of base salary can be
achieved if the following criteria are met:

              

    
      
        	
                ·

              	
                The
      Corporation exceeds all financial and strategic goals by 110% or greater,
      and

              

      

       

    

    
      	
              ·

            	
              Individual
      performance is at a superior level as determined by the Committee, subject
      to the Corporation’s ability to
pay.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    For more
detailed information about how the bonus payouts are calculated, please refer to
Sections VI and VII, and the examples shown on page 4.

    

    V.  Allocation of
Awards

    

    The Plan
features two components, the Objectives, or financial metrics, and individual
strategic initiatives, which are collectively used to determine the incentive
payout amount:

    

    
      	
               
      

            	
              ·

            	
              Objectives – Eighty
      percent (80%) of the potential incentive payment amount is based on the
      attainment of specified levels of four financial metrics weighted as set
      forth below:

            

    

    

    
      	
               
      

            	
              1.

            	
              EBIT (earnings before interest
      and taxes) –  weighed at
30%

            

    

    

    
      	
               
      

            	
              2.

            	
              Operating Cash Flow
      (EBITDA), defined as earnings before interest, taxes, depreciation
      and amortization, plus or minus the change in working capital and related
      operating non-current assets and liabilities (exclusive of cash) less
      capital expenditures – weighed at
30%

            

    

    

    
      	
               
      

            	
              3.

            	
              Bookings – weighed at
      20%

            

    

    

    
      	
               
      

            	
              4.

            	
              Operating Margin –
      weighed at 20%

            

    

    

    
      	
               
      

            	
              ·

            	
              Individual Strategic
      Initiatives – Twenty percent (20%) of the potential incentive
      payment amount is based on the attainment of specified individual
      strategic initiatives.

            

    

    

    The
percent of the incentive payment amount attributed to each Objective and the
individual strategic initiatives is determined independently with respect to the
remaining goals.

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    VI.  Financial Metrics Plan
Design (80% Weighting)

    

    Incentive
payouts with respect to each Objective will only occur if at least eighty
percent (80%) of the target levels of the Objective are achieved (the “Minimum
Threshold”).  The Target Award is paid out upon 100%
achievement of each Objective and the Maximum Award is paid out upon 110% of
achievement of each Objective.  The payout percentage of base salary
for each level of achievement between 80% and 110% is shown on the chart below
for each Objective.

    

    Exhibit
1:

    

    
      	 
      	
              EBIT (30%)

            	
              OPERATING CASH FLOW (30%)

            	
              BOOKINGS (20%)

            	
              OPERATING MARGIN (20%)

            	 
      
	 
      	
              %
      of plan realized

            	
              %
      of base

            	
              %
      of plan realized

            	
              %
      of base

            	
              %
      of plan realized

            	
              %
      of base

            	
              %
      of plan realized

            	
              %
      of base

            	
              Total
      % of Base

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              Minimum
      Threshold

            	
              80%

            	
              0.24%

            	
              80%

            	
              0.24%

            	
              80%

            	
              0.16%

            	
              80%

            	
              0.16%

            	
              0.80%

            
	 
      	
              81%

            	
              0.46%

            	
              81%

            	
              0.46%

            	
              81%

            	
              0.30%

            	
              81%

            	
              0.30%

            	 
      
	 
      	
              82%

            	
              0.67%

            	
              82%

            	
              0.67%

            	
              82%

            	
              0.45%

            	
              82%

            	
              0.45%

            	 
      
	 
      	
              83%

            	
              0.89%

            	
              83%

            	
              0.89%

            	
              83%

            	
              0.59%

            	
              83%

            	
              0.59%

            	 
      
	 
      	
              84%

            	
              1.10%

            	
              84%

            	
              1.10%

            	
              84%

            	
              0.74%

            	
              84%

            	
              0.74%

            	 
      
	 
      	
              85%

            	
              1.32%

            	
              85%

            	
              1.32%

            	
              85%

            	
              0.88%

            	
              85%

            	
              0.88%

            	 
      
	 
      	
              86%

            	
              1.54%

            	
              86%

            	
              1.54%

            	
              86%

            	
              1.02%

            	
              86%

            	
              1.02%

            	 
      
	 
      	
              87%

            	
              1.75%

            	
              87%

            	
              1.75%

            	
              87%

            	
              1.17%

            	
              87%

            	
              1.17%

            	 
      
	 
      	
              88%

            	
              1.97%

            	
              88%

            	
              1.97%

            	
              88%

            	
              1.31%

            	
              88%

            	
              1.31%

            	 
      
	 
      	
              89%

            	
              2.18%

            	
              89%

            	
              2.18%

            	
              89%

            	
              1.46%

            	
              89%

            	
              1.46%

            	 
      
	 
      	
              90%

            	
              2.40%

            	
              90%

            	
              2.40%

            	
              90%

            	
              1.60%

            	
              90%

            	
              1.60%

            	 
      
	 
      	
              91%

            	
              3.60%

            	
              91%

            	
              3.60%

            	
              91%

            	
              2.40%

            	
              91%

            	
              2.40%

            	 
      
	 
      	
              92%

            	
              4.80%

            	
              92%

            	
              4.80%

            	
              92%

            	
              3.20%

            	
              92%

            	
              3.20%

            	 
      
	 
      	
              93%

            	
              6.00%

            	
              93%

            	
              6.00%

            	
              93%

            	
              4.00%

            	
              93%

            	
              4.00%

            	 
      
	 
      	
              94%

            	
              7.20%

            	
              94%

            	
              7.20%

            	
              94%

            	
              4.80%

            	
              94%

            	
              4.80%

            	 
      
	 
      	
              95%

            	
              8.40%

            	
              95%

            	
              8.40%

            	
              95%

            	
              5.60%

            	
              95%

            	
              5.60%

            	 
      
	 
      	
              96%

            	
              10.80%

            	
              96%

            	
              10.80%

            	
              96%

            	
              7.20%

            	
              96%

            	
              7.20%

            	 
      
	 
      	
              97%

            	
              13.20%

            	
              97%

            	
              13.20%

            	
              97%

            	
              8.80%

            	
              97%

            	
              8.80%

            	 
      
	 
      	
              98%

            	
              15.60%

            	
              98%

            	
              15.60%

            	
              98%

            	
              10.40%

            	
              98%

            	
              10.40%

            	 
      
	 
      	
              99%

            	
              18.00%

            	
              99%

            	
              18.00%

            	
              99%

            	
              12.00%

            	
              99%

            	
              12.00%

            	 
      
	
              Target
      Award (85%)

            	
              100%

            	
              20.40%

            	
              100%

            	
              20.40%

            	
              100%

            	
              13.60%

            	
              100%

            	
              13.60%

            	
              68.0%

            
	 
      	
              101%

            	
              20.76%

            	
              101%

            	
              20.76%

            	
              101%

            	
              13.84%

            	
              101%

            	
              13.84%

            	 
      
	 
      	
              102%

            	
              21.12%

            	
              102%

            	
              21.12%

            	
              102%

            	
              14.08%

            	
              102%

            	
              14.08%

            	 
      
	 
      	
              103%

            	
              21.48%

            	
              103%

            	
              21.48%

            	
              103%

            	
              14.32%

            	
              103%

            	
              14.32%

            	 
      
	 
      	
              104%

            	
              21.84%

            	
              104%

            	
              21.84%

            	
              104%

            	
              14.56%

            	
              104%

            	
              14.56%

            	 
      
	 
      	
              105%

            	
              22.20%

            	
              105%

            	
              22.20%

            	
              105%

            	
              14.80%

            	
              105%

            	
              14.80%

            	 
      
	 
      	
              106%

            	
              22.56%

            	
              106%

            	
              22.56%

            	
              106%

            	
              15.04%

            	
              106%

            	
              15.04%

            	 
      
	 
      	
              107%

            	
              22.92%

            	
              107%

            	
              22.92%

            	
              107%

            	
              15.28%

            	
              107%

            	
              15.28%

            	 
      
	 
      	
              108%

            	
              23.28%

            	
              108%

            	
              23.28%

            	
              108%

            	
              15.52%

            	
              108%

            	
              15.52%

            	 
      
	 
      	
              109%

            	
              23.64%

            	
              109%

            	
              23.64%

            	
              109%

            	
              15.76%

            	
              109%

            	
              15.76%

            	 
      
	
              Maximum
      Award (100%)

            	
              110%

            	
              24.00%

            	
              110%

            	
              24.00%

            	
              110%

            	
              16.00%

            	
              110%

            	
              16.00%

            	
              80.0%

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    VII.  Individual Strategic
Initiatives Plan Design (20% Weighting)

    

    A target
payout of 17.0% of base salary (85% target X 100% plan X 20% weighting = 17.0%)
is available for individuals who fully achieve all of their individual strategic
initiatives.  Lesser payouts for lesser levels of performance are
available at the discretion of management.  A maximum payout of up to
20% is available in recognition of superior performance.

    

    Examples:

    

    
      	
              1.

            	
              2008
      projected bonus payment calculations - Assumes 2008 Plan targets achieved
      at 100% and 100% credit on individual strategic
    initiatives.

            

    

    

    

    
      	
              NAME

            	
               (A)

              SALARY

            	
              (B)

              Maximum  Award

            	
               

               

               

              Target
      Award at 85%

            	
              (C)

              (80%
      weighted) % earned  FINANCIAL METRICS

            	
              (D)

              (20%
      weighted) 

              %
      earned
      INDIVIDUAL STRATEGIC INITIATIVES

            	
              (E)

              % of
      Award Earned

            	
              (F)

               $
      award Earned

            
	
              Doe,
      John

            	
              $400,000

            	
              100%

            	
               

              85%

            	
              68.0%

            	
              17.0%

            	
              85%

            	
              $340,000

            

    

    

    

    
      	
              2.

            	
              2008
      projected bonus payment calculations – Assumes 100% EBIT, 95% Cash Flow,
      110% Bookings, 98% Operating Margin; and partial credit on achievement of
      individual strategic initiatives.

            

    

    

    

    
      	
              NAME

            	
              (A)

              SALARY

            	
              (B)

              Maximum  Award

            	
               

               

              Target
      Award at 85%

            	
              (C)

              (80%
      weighted) % earned  FINANCIAL METRICS

            	
              (D)

              (20%
      weighted) 

              %
      earned

              INDIVIDUAL
      STRATEGIC INITIATIVES

            	
              (E)

              % of
      Award Earned

            	
              (F)

               $
      award Earned

            
	
              Doe,
      John

            	
              $400,000

            	
              100%

            	
               

              85%

            	
              55.2%

            	
              15.0%

            	
              70.2%

            	
              $280,800

            

    

    

    VIII.  Administration of the
Plan

    

    
      	
              ·

            	
              The
      actual amount or percentage of incentive compensation, if any, will be
      based upon achievement of the Objectives outlined in Section VI and the
      individual strategic initiatives outlined in Section
      VII.  Furthermore, the actual amount of individual awards are
      subject to individual performance and its effect on the achievement of
      these business goals, as bonus payments are not guaranteed.  The
      Corporation reserves the right to increase or reduce the amount of the
      incentive compensation paid under this Plan in its sole discretion
      notwithstanding the level of attainment of the specified Objective or
      individual strategic initiatives.

            

    

    

    
      	
              ·

            	
              The
      Committee will review attainment of the business plan goals and objectives
      at the close of the fiscal year.  Awards will be paid in cash as
      soon as practicable after the Corporation has publicly reported its fiscal
      year results and in no event later than March 15,
  2009.

            

    

    

    
      	
              ·

            	
              Exceptions
      and adjustments to the Plan and the awards may be made at the discretion
      of the Committee.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	
              ·

            	
              Participants
      in the Plan who enter after the start of the fiscal year may receive a
      prorated award.

            

    

    

    
      	
              ·

            	
              Employee Benefits,
      Taxes and Deductions - Awards paid under
      this Plan are subject to applicable taxes, withholding as required by law,
      401(k) contributions and other payroll
  deductions.

            

    

    

    
      	
              ·

            	
              Transfer or Change of
      Assignment -
      A participant transferring into or out of qualifying positions
      during the fiscal year may receive a prorated award based on a share of
      time spent in the qualifying
assignment.

            

    

    

    
      	
              ·

            	
              Termination of
      Employment -
      Any participant who resigns or is dismissed from employment with
      the Corporation and its subsidiaries and affiliates for any reason, or who
      is not on the active payroll on the date that the award is paid, will not
      be eligible for an award.

            

    

    

    Nothing
in this Plan will be construed to give any employee any right to continue in the
employment of the Corporation and its subsidiaries and affiliates or to continue
on any assignment.  Further, nothing in this Plan will interfere in
any way with the right of the Corporation to terminate the employment of any
employee affected by this Plan at any time and for any reason.

    

    Participation
in the Plan is discretionary.  Nothing in this Plan will interfere in
any way with the right of the Corporation to (i) change or modify the terms and
conditions of this Plan or (ii) reassign a participant to a different incentive
plan for future years.  In addition, nothing in the Plan confers on a
participant the right or entitlement to receive compensation or bonus in any
specific amount for any future fiscal year.  Moreover, the awards
under the Plan do not constitute wages, or regular, recurrent or contractual
compensation and will have no effect on the determination of employee-related
rights or benefits under law or any plan of the Corporation or its subsidiaries
and affiliates.

    

    The
benefits provided pursuant to the awards are in no way secured, guaranteed or
warranted by the Corporation.a5611101ex10_21.htm

    
      Exhibit
10.21

       

      B/E
AEROSPACE, INC,

      MANAGEMENT
INCENTIVE PLAN (80%) – FY 2008

      

      I.  Purpose

      

      The
purpose of this Management Incentive Plan (the “Plan”) is
to reward and encourage significant contributions to the success of BE
Aerospace, Inc. (the “Corporation”)
and its respective businesses.

      

      II.  Eligibility

      

      Eligibility
for participation in this Plan is determined by the following senior
executives:  the Chairman & CEO, the President & COO, the Sr.
Vice President, CFO & Treasurer and the Vice President of Human
Resources.  This Plan primarily includes all Group/Segment Vice
President and General Managers and Corporate Vice Presidents reporting directly
to the President & COO or Sr. Vice President, CFO &
Treasurer.  The Vice President of Human Resources will ensure
consistent eligibility requirements and administration throughout the
Corporation.

      

      III.  Plan
Approval

      

      The
financial and strategic business objectives (both criteria and targets) (the
“Objectives”)
will be established for the Corporation and the Segments/Business Units at the
beginning of the fiscal year.  These Objectives are reviewed by the
Chairman & CEO, the President & COO and the Sr. Vice President, CFO
& Treasurer and then submitted for approval to the Compensation Committee of
the Board of Directors (the “Committee”).

      

      IV.  Plan Participation
Level

      

      The
maximum potential incentive compensation for each executive is 80% of the
executive’s base salary (“Maximum
Award”), which is determined based on the level of achievement of the
applicable Objectives and individual strategic
initiatives.  Individual awards are targeted at 85% of the maximum
award (or 68% of base salary) (“Target
Award”).  Individuals who achieve each of the target levels of
the applicable Objectives and individual strategic initiatives are eligible to
receive the Target Award.  Actual individual awards can be increased
by the Committee in its sole discretion up to the Maximum Award or decreased
down to zero based on an individual’s performance and his/her contribution
related to the business unit to which the individual was assigned during the
performance period (e.g.,
segment/Corporation).

      

      The Target Award of 85%
(e.g., 68% of base salary)
contemplates:

      
        	
                 
      

              	
                ·

              	
                100%
      achievement of the targets for the Objectives and individual strategic
      initiatives.

              

      

      

      The Maximum Award of 100%
(e.g., 80% of base salary)
contemplates:

      
        	
                 
      

              	
                ·

              	
                110%
      achievement of the targets for the Objectives and individual strategic
      initiatives.

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      In
extraordinary cases, an award of up to an additional 20% of base salary can be
achieved if the following criteria are met:

            

      
        
          	
                  ·

                	
                   The
      site, segment and Corporation exceed all financial and strategic goals by
      110% or greater,
      and

                

        

         

      

      
        	
                ·

              	
                Individual
      performance is at a superior level as determined by the executive’s
      immediate supervisor, upon recommendation by the Chairman & CEO, the
      President & COO and the Sr. Vice President, CFO & Treasurer and as
      approved by the Committee, subject to the Corporation’s ability to
      pay.

              

      

      

      For more
detailed information about how the bonus payouts are calculated, please refer to
Sections VI and VII, and the examples shown on page 4.

      

      V.  Allocation of
Awards

      

      The Plan
features two components, the Objectives, or financial metrics, and individual
strategic initiatives, which are collectively used to determine the incentive
payout amount:

      

      
        	
                 
      

              	
                ·

              	
                Objectives – Eighty
      percent (80%) of the potential incentive payment amount is based on the
      attainment of specified levels of four financial metrics weighted as set
      forth below:

              

      

      

      
        	
                 
      

              	
                1.

              	
                EBIT (earnings before interest
      and taxes) –  weighed at
30%

              

      

      

      
        	
                 
      

              	
                2.

              	
                Operating Cash Flow
      (EBITDA), defined as earnings before interest, taxes, depreciation
      and amortization, plus or minus the change in working capital and related
      operating non-current assets and liabilities (exclusive of cash) less
      capital expenditures – weighed at
30%

              

      

      

      
        	
                 
      

              	
                3.

              	
                Bookings – weighed at
      20%

              

      

      

      
        	
                 
      

              	
                4.

              	
                Operating Margin –
      weighed at 20%

              

      

      

      
        	
                 
      

              	
                ·

              	
                Individual Strategic
      Initiatives – Twenty percent (20%) of the potential incentive
      payment amount is based on the attainment of specified individual
      strategic initiatives.

              

      

      

      The
percent of the incentive payment amount attributed to each Objective and the
individual strategic initiatives is determined independently with respect to the
remaining goals.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      VI.  Financial Metrics Plan
Design (80% Weighting)

      

      Incentive
payouts with respect to each Objective will only occur if at least eighty
percent (80%) of the target levels of the Objective are achieved (the “Minimum
Threshold”).  The Target Award is paid out upon 100%
achievement of each Objective and the Maximum Award is paid out upon 110% of
achievement of each Objective.  The payout percentage of base salary
for each level of achievement between 80% and 110% is shown on the chart below
for each Objective.

      

      Exhibit
1:

      

      
        	 
      	
                EBIT (30%)

              	
                OPERATING CASH FLOW (30%)

              	
                BOOKINGS (20%)

              	
                OPERATING MARGIN (20%)

              	 
      
	 
      	
                %
      of plan realized

              	
                %
      of base

              	
                %
      of plan realized

              	
                %
      of base

              	
                %
      of plan realized

              	
                %
      of base

              	
                %
      of plan realized

              	
                %
      of base

              	
                Total
      % of Base

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Minimum
      Threshold

              	
                80%

              	
                0.19%

              	
                80%

              	
                0.19%

              	
                80%

              	
                0.13%

              	
                80%

              	
                0.13%

              	
                0.64%

              
	 
      	
                81%

              	
                0.36%

              	
                81%

              	
                0.36%

              	
                81%

              	
                0.24%

              	
                81%

              	
                0.24%

              	 
      
	 
      	
                82%

              	
                0.54%

              	
                82%

              	
                0.54%

              	
                82%

              	
                0.36%

              	
                82%

              	
                0.36%

              	 
      
	 
      	
                83%

              	
                0.71%

              	
                83%

              	
                0.71%

              	
                83%

              	
                0.47%

              	
                83%

              	
                0.47%

              	 
      
	 
      	
                84%

              	
                0.88%

              	
                84%

              	
                0.88%

              	
                84%

              	
                0.59%

              	
                84%

              	
                0.59%

              	 
      
	 
      	
                85%

              	
                1.06%

              	
                85%

              	
                1.06%

              	
                85%

              	
                0.70%

              	
                85%

              	
                0.70%

              	 
      
	 
      	
                86%

              	
                1.23%

              	
                86%

              	
                1.23%

              	
                86%

              	
                0.82%

              	
                86%

              	
                0.82%

              	 
      
	 
      	
                87%

              	
                1.40%

              	
                87%

              	
                1.40%

              	
                87%

              	
                0.93%

              	
                87%

              	
                0.93%

              	 
      
	 
      	
                88%

              	
                1.57%

              	
                88%

              	
                1.57%

              	
                88%

              	
                1.05%

              	
                88%

              	
                1.05%

              	 
      
	 
      	
                89%

              	
                1.75%

              	
                89%

              	
                1.75%

              	
                89%

              	
                1.16%

              	
                89%

              	
                1.16%

              	 
      
	 
      	
                90%

              	
                1.92%

              	
                90%

              	
                1.92%

              	
                90%

              	
                1.28%

              	
                90%

              	
                1.28%

              	 
      
	 
      	
                91%

              	
                2.88%

              	
                91%

              	
                2.88%

              	
                91%

              	
                1.92%

              	
                91%

              	
                1.92%

              	 
      
	 
      	
                92%

              	
                3.84%

              	
                92%

              	
                3.84%

              	
                92%

              	
                2.56%

              	
                92%

              	
                2.56%

              	 
      
	 
      	
                93%

              	
                4.80%

              	
                93%

              	
                4.80%

              	
                93%

              	
                3.20%

              	
                93%

              	
                3.20%

              	 
      
	 
      	
                94%

              	
                5.76%

              	
                94%

              	
                5.76%

              	
                94%

              	
                3.84%

              	
                94%

              	
                3.84%

              	 
      
	 
      	
                95%

              	
                6.72%

              	
                95%

              	
                6.72%

              	
                95%

              	
                4.48%

              	
                95%

              	
                4.48%

              	 
      
	 
      	
                96%

              	
                8.64%

              	
                96%

              	
                8.64%

              	
                96%

              	
                5.76%

              	
                96%

              	
                5.76%

              	 
      
	 
      	
                97%

              	
                10.56%

              	
                97%

              	
                10.56%

              	
                97%

              	
                7.04%

              	
                97%

              	
                7.04%

              	 
      
	 
      	
                98%

              	
                12.48%

              	
                98%

              	
                12.48%

              	
                98%

              	
                8.32%

              	
                98%

              	
                8.32%

              	 
      
	 
      	
                99%

              	
                14.40%

              	
                99%

              	
                14.40%

              	
                99%

              	
                9.60%

              	
                99%

              	
                9.60%

              	 
      
	
                Target
      Award (85%)

              	
                100%

              	
                16.32%

              	
                100%

              	
                16.32%

              	
                100%

              	
                10.88%

              	
                100%

              	
                10.88%

              	
                54.4%

              
	 
      	
                101%

              	
                16.61%

              	
                101%

              	
                16.61%

              	
                101%

              	
                11.07%

              	
                101%

              	
                11.07%

              	 
      
	 
      	
                102%

              	
                16.90%

              	
                102%

              	
                16.90%

              	
                102%

              	
                11.26%

              	
                102%

              	
                11.26%

              	 
      
	 
      	
                103%

              	
                17.18%

              	
                103%

              	
                17.18%

              	
                103%

              	
                11.46%

              	
                103%

              	
                11.46%

              	 
      
	 
      	
                104%

              	
                17.47%

              	
                104%

              	
                17.47%

              	
                104%

              	
                11.65%

              	
                104%

              	
                11.65%

              	 
      
	 
      	
                105%

              	
                17.76%

              	
                105%

              	
                17.76%

              	
                105%

              	
                11.84%

              	
                105%

              	
                11.84%

              	 
      
	 
      	
                106%

              	
                18.05%

              	
                106%

              	
                18.05%

              	
                106%

              	
                12.03%

              	
                106%

              	
                12.03%

              	 
      
	 
      	
                107%

              	
                18.34%

              	
                107%

              	
                18.34%

              	
                107%

              	
                12.22%

              	
                107%

              	
                12.22%

              	 
      
	 
      	
                108%

              	
                18.62%

              	
                108%

              	
                18.62%

              	
                108%

              	
                12.42%

              	
                108%

              	
                12.42%

              	 
      
	 
      	
                109%

              	
                18.91%

              	
                109%

              	
                18.91%

              	
                109%

              	
                12.61%

              	
                109%

              	
                12.61%

              	 
      
	
                Maximum
      Award (100%)

              	
                110%

              	
                19.20%

              	
                110%

              	
                19.20%

              	
                110%

              	
                12.80%

              	
                110%

              	
                12.80%

              	
                64.0%

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      VII.  Individual Strategic
Initiatives Plan Design   (20% Weighting)

      

      A target
payout of 13.6% of base salary (85% target X 80% plan X 20% weighting = 13.6%)
is available for individuals who fully achieve all of their individual strategic
initiatives.  Lesser payouts for lesser levels of performance are
available at the discretion of management.  A maximum payout of up to
16% is available in recognition of superior performance.

      

      Examples:

      

      
        	
                1.

              	
                2008
      projected bonus payment calculations - Assumes 2008 Plan targets achieved
      at 100% and 100% credit on individual strategic
    initiatives.

              

      

      

      

      
        	
                NAME

              	
                (A)

                SALARY

              	
                (B)

                Maximum  Award

              	
                 

                 

                 

                Target
      Award at 85%

              	
                (C)

                (80%
      weighted) % earned  FINANCIAL METRICS

              	
                (D)

                (20%
      weighted)    % earned INDIVIDUAL STRATEGIC
      INITIATIVES

              	
                (E)

                % of
      Award Earned

              	
                (F)

                 $
      award Earned

              
	
                Doe,
      John

              	
                $200,000

              	
                80%

              	
                 

                68%

              	
                54.4%

              	
                13.6%

              	
                68%

              	
                $136,000

              

      

      

      

      
        	
                2.

              	
                2008
      projected bonus payment calculations – Assumes 100% EBIT, 95% Cash Flow,
      110% Bookings, 98% Operating Margin; and partial credit on achievement of
      individual strategic initiatives.

              

      

      

      

      
        	
                NAME

              	
                (A)

                SALARY

              	
                (B)

                Maximum  Award

              	
                 

                 

                Target
      Award at 85%

              	
                (C)

                (80%
      weighted) % earned  FINANCIAL METRICS

              	
                (D)

                (20%
      weighted)

                %
      earned

                INDIVIDUAL
      STRATEGIC INITIATIVES

              	
                (E)

                % of
      Award Earned

              	
                (F)

                 $
      award Earned

              
	
                Doe,
      John

              	
                $200,000

              	
                80%

              	
                 

                68%

              	
                44.2%

              	
                8.0%

              	
                52.2%

              	
                $104,400

              

      

      

      VIII.  Administration of the
Plan

      

      
        	
                ·

              	
                Segment
      awards are based on performance independent of Corporate
      performance.  The actual amount or percentage of incentive
      compensation, if any, will be based upon achievement of the Objectives
      outlined in Section VI and the individual strategic initiatives outlined
      in Section VII.  Furthermore, the actual amount of individual
      awards are subject to individual performance and its effect on the
      achievement of these business goals, as bonus payments are not
      guaranteed.  The Corporation reserves the right to increase or
      reduce the amount of the incentive compensation paid under this Plan in
      its sole discretion notwithstanding the level of attainment of the
      specified Objective or individual strategic
  initiatives.

              

      

      

      
        	
                ·

              	
                The
      Committee, Sr. Vice President, CFO & Treasurer, the President &
      COO and the Chairman & CEO will review attainment of the business plan
      goals and objectives at the close of the fiscal year.  Awards
      will be paid in cash as soon as practicable after the Corporation has
      publicly reported its fiscal year results and in no event later than March
      15, 2009.

              

      

      

      
        	
                ·

              	
                Exceptions
      and adjustments to the Plan and the awards may be made at the discretion
      of the Committee upon the recommendation of the Chairman & CEO,
      President & COO and Sr. Vice President, CFO &
      Treasurer.

              

      

      

      
        	
                ·

              	
                Participants
      in the Plan who enter after the start of the fiscal year may receive a
      prorated award.

              

      

      

      
        	
                ·

              	
                Employee Benefits,
      Taxes and Deductions - Awards paid under
      this Plan are subject to applicable taxes, withholding as required by law,
      401(k) contributions and other payroll
  deductions.

              

      

      

      
        	
                ·

              	
                Transfer or Change of
      Assignment -
      A participant transferring into or out of qualifying positions
      during the fiscal year may receive a prorated award based on a share of
      time spent in the qualifying
assignment.

              

      

      

      
        	
                ·

              	
                Termination of
      Employment -
      Any participant who resigns or is dismissed from employment with
      the Corporation and its subsidiaries and affiliates for any reason or who
      is not on the active payroll on the date that the award is paid, will not
      be eligible for an award.

              

      

      

      Nothing
in this Plan will be construed to give any employee any right to continue in the
employment of the Corporation and its subsidiaries and affiliates or to continue
on any assignment.  Further, nothing in this Plan will interfere in
any way with the right of the Corporation to terminate the employment of any
employee affected by this Plan at any time and for any reason.

      

      Participation
in the Plan is discretionary.  Nothing in this Plan will interfere in
any way with the right of the Corporation to (i) change or modify the terms and
conditions of this Plan or (ii) reassign a participant to a different incentive
plan for future years.  In addition, nothing in the Plan confers on a
participant the right or entitlement to receive compensation or bonus in any
specific amount for any future fiscal year.  Moreover, the awards
under the Plan do not constitute wages, or regular, recurrent or contractual
compensation and will have no effect on the determination of employee-related
rights or benefits under law or any plan of the Corporation or its subsidiaries
and affiliates.

      

      The
benefits provided pursuant to the awards are in no way secured, guaranteed or
warranted by the Corporation.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]