Document:

ex10_1.htm

Exhibit 10.1

 

 

CHAIRMAN, CHIEF EXECUTIVE OFFICER AND PRESIDENT

 

Effective: January 1, 2011

  

  

  

CHAIRMAN, CHIEF EXECUTIVE OFFICER AND PRESIDENT

PURPOSE:  To define the compensation plan for the Chairman, Chief Executive Officer and President.

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, 2011 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.

SEPARATION:  Upon voluntary or involuntary separation from the Company the employee will be paid the base salary due to the last day of employment.  If employment is separated prior to the annual incentive compensation payment period 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 Net Income 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.

  

  

  

CHAIRMAN, CHIEF EXECUTIVE OFFICER AND PRESIDENT

Base Pay and Performance Incentive Compensation Targets

 

The compensation for the below named individual as follows:

	
Annualized Base Pay:

	 	$	263,218	 
	
Performance Incentive Compensation Target (at 100% of Plan):

	 	$	131,608	 
	
Total Annual Target Compensation (at 100% of Plan):

	 	$	394,826	 

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	%	 	 	19,741	 	 	 	23,690	 	 	 	25,664	 	 	 	27,638	 	 	 	29,612	 	 	 	31,586	 	 	 	34,547	 
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Net Income

	 	 	55	%	 	 	72,385	 	 	 	86,862	 	 	 	94,100	 	 	 	101,339	 	 	 	108,577	 	 	 	115,816	 	 	 	126,674	 
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Health & Safety

	 	 	15	%	 	 	19,741	 	 	 	23,690	 	 	 	25,664	 	 	 	27,638	 	 	 	29,612	 	 	 	31,586	 	 	 	34,547	 
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Permit & License Violations

	 	 	15	%	 	 	19,741	 	 	 	23,690	 	 	 	25,664	 	 	 	27,638	 	 	 	29,612	 	 	 	31,586	 	 	 	34,547	 
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Unbilled Receivables

	
* If criteria (Item #5) for reducing unbilled AR are not met bonus will be reduced by 15%

	 
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	131,608	 	 	 	157,932	 	 	 	171,092	 	 	 	184,253	 	 	 	197,413	 	 	 	210,574	 	 	 	230,315	 

 

	
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 $99,993,000.  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)  

	
Net Income is defined as the total consolidated pre-tax net income from continuing operations as publicly reported in the Company’s financial statements.  The net income will include all subsidiaries, corporate charges, and dividends from continuing operations.  The percentage achieved is determined by comparing the actual pre-tax net income to the Board approved Net Income Target, which is $6,269,000.  The Board reserves the right to make adjustments to Net Income Target so as not to penalize the employee for actions in the current year which will contribute to net income in future years and it reserves the right to modify or change the Net Income 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.  The Board further reserves the right to adjust Net Income Target to reflect charges resulting from the vesting of incentive stock options.

 

	
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 2011.

 

  

  

  

 

	
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)  

	
Unbilled trade receivables is the amount of unbilled reported per 10Q or 10K combining both the long term and current portion of unbilled.   Unbilled trade receivable balances older than 12/31/08 should be reduced by $2.987 million from $3,318,000 as of 12/31/10 to $331,000 by 12/31/11.

	
6)  

	
No performance incentive compensation will be payable for achieving the health and safety and permit and license violation targets unless a minimum of 70% of the Net Income Target is achieved.

  

  

  

Performance Incentive Compensation Payment

Effective date of plan is January 1, 2011 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 Chairman, Chief Executive Officer and President 2011 - Compensation Plan.  I have read and understand and accept employment under the terms and conditions set forth therein.

	
/s/ Louis Centofanti

	  	
3/22/2011

	  
	
/S/ Dr. Louis Centofanti

	  	
Date

	  
	  	  	  	  
	
/s/Mark Zwecker

	  	
3/22/2011

	  
	
/S/ Board of Directors

	  	
Dateex10_2.htm

Exhibit 10.2

 

 

VICE PRESIDENT, CHIEF FINANCIAL OFFICER

 

 

Effective: January 1, 2011

  

  

  

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, 2011 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:  Upon voluntary or involuntary separation from the Company the employee will be paid the base salary due to the last day of employment.  If employment is separated prior to the annual incentive compensation payment period 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 Net Income Target or other applicable 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.

 

  

  

  

VICE PRESIDENT, CHIEF FINANCIAL OFFICER

 

Base Pay and Performance Incentive Compensation Targets

The compensation for the below named individual as follows:

	
Annualized Base Pay:

	 	$	208,000	 
	
Performance Incentive Compensation Target (at 100% of Plan):

	 	 	52,000	 
	
Total Annual Target Compensation (at 100% of Plan):

	 	$	260,000	 

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

	
Target Objectives

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	
Performance Target Thresholds

	 
	  	 	
Weights

	 	 	100%+	 	 	98-99%	 	 	96-97%	 	 	94-95%	 	 	92-93%	 	 	90-91%	 	 	88-89%	 
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Administrative

	 	 	15	%	 	 	7,800	 	 	 	9,360	 	 	 	9,751	 	 	 	10,531	 	 	 	11,700	 	 	 	12,480	 	 	 	13,650	 
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	
Performance Target Thresholds

	 
	  	 	
Weights

	 	 	85-100%	 	 	101-120%	 	 	121-130%	 	 	131-140%	 	 	141-150%	 	 	151-160%	 	 	161%+	 
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Net Income

	 	 	25	%	 	 	13,000	 	 	 	15,600	 	 	 	16,900	 	 	 	18,200	 	 	 	19,500	 	 	 	20,800	 	 	 	22,750	 
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Accounting

	 	 	10	%	 	 	5,200	 	 	 	6,240	 	 	 	6,760	 	 	 	7,280	 	 	 	7,800	 	 	 	8,320	 	 	 	9,100	 
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Accounts Receivable

	 	 	10	%	 	 	5,200	 	 	 	6,240	 	 	 	6,760	 	 	 	7,280	 	 	 	7,800	 	 	 	8,320	 	 	 	9,100	 
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
SOX Compliance

	 	 	10	%	 	 	5,200	 	 	 	6,240	 	 	 	6,760	 	 	 	7,280	 	 	 	7,800	 	 	 	8,320	 	 	 	9,100	 
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Centralization & IT Objectives

	 	 	30	%	 	 	15,600	 	 	 	18,720	 	 	 	20,280	 	 	 	21,840	 	 	 	23,400	 	 	 	24,960	 	 	 	27,300	 
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Unbilled Receivables

	 	
* If criteria (Item #7) for reducing unbilled AR are not met bonus will be reduced by 15%

	 
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	52,000	 	 	 	62,400	 	 	 	67,211	 	 	 	72,411	 	 	 	78,000	 	 	 	83,200	 	 	 	91,000	 

 

	
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 $10,947,000 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)

	
Net Income is defined as the total consolidated pre-tax net income from continuing operations as publicly reported in the Company’s financial statements.  The net income will include all subsidiaries, corporate charges, and dividends from continuing operations.  The percentage achieved is determined by comparing the actual net income to the Board approved Net Income Target which is $6,269,000.  The Board reserves the right to make adjustments to Net Income so as not to penalize the employee for actions in the current year which will contribute to net income in future years and it reserves the right to modify or change the Net Income 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.  The Board further reserves the right to adjust Net Income Target to reflect charges resulting from the vesting of incentive stock options.

 

  

  

  

 

	
3)

	
Accounting objective should focus on meeting filing deadlines such as Form 10-K, Form 10-Qs, Form 8-Ks and press releases with complete and accurate information.

 

	
SEC Filings

	  	
Performance Target

	
10-K – filed timely or

	  	
3%

	
10-K – extension

	  	
1.5%

	
1st quarter 10-Q – filed timely or

	  	
2%

	
1st quarter 10-Q – extension

	  	
1%

	
2nd quarter 10-Q – filed timely or

	  	
2%

	
2nd quarter 10-Q – extension

	  	
1%

	
3rd quarter 10-Q – filed timely or

	  	
2%

	
3rd quarter 10-Q - extension

	  	
1%

	
All 8-K’s Filed

	  	
1%

	
Total Achievable

	  	
10%

 

	
4)

	
Accounts Receivable (“AR”) objective should focus on achieving certain AR targets from continuing operations.

 

	
Accounts Receivable

	  	
Performance Target

	
25% or less of AR > than 60 days

	  	
5.0%

	
30% or less of AR > than 60 days

	  	
2.5%

	
9% or less of AR > than 120 days

	  	
5.0%

	
10% or less of AR > than 120 days

	  	
2.5%

	
Total Achievable

	  	
10.0%

 

Accounts Receivable will be defined as outstanding accounts receivable, per companies AR sub-ledger of continuing operations, collectable within the control of the financial and operational staff.

 

Adjustments for this figure will include but not be limited to:

 

	
  

	
1.

	
Accounts fully reserved when calculating Bad Debt Allowance;

 

	
  

	
2.

	
Accounts that are in litigation; and

 

	
  

	
3.

	
Accounts not receivable due to a legitimate operational delay.  Note this will only be excluded if invoicing was appropriate despite the operational delay.

 

	
5)

	
The Sarbanes-Oxley Act of 2002 (“SOX”) Incentive target is based maintaining good internal controls and minimizing material weaknesses similar to “Permit and License” violations on the Chief Executive Officer’s Incentive Plan.

 

	
SOX Deficiencies

	  	
Performance Target

	
0

	  	
10%

	
1

	  	
9%

	
2

	  	
8%

	
3

	  	
5%

	
4

	  	
2%

	
> 4

	  	
0%

 

  

  

  

	
6)

	
Centralization Objective - Completion of the following milestones related to the planned centralization of the accounting function to the Corporate office. Completion of each objective earns 3% with a maximum target achievable of 30%.

	
Accounting Centralization Objectives

	  	
Performance Target

	
·  Install Multi-Company Software at Corporate Office.

	  	
3.0%

	
·  Improve forecasting model from facilities including new software if cost effective.

	  	
3.0%

	
·  Purchase Order (“PO”) Implementation Phase II – Automated requisition process

	  	
3.0%

	
·  Automated Fixed Asset and Capital Tracking

	  	
3.0%

	
·  Cost accounting initiatives to support Field Services initiative and Defense Contract Audit    Agency (“DCAA”) audit requirements.

	  	
3.0%

	
·  Accounts payable (“AP”) – Automate weekly cash requirement process.

	  	
3.0%

	
·  Treasury – Automated cash management tracking process.

	  	
3.0%

	
·  Waste Tracking – Complete  East Tennessee Materials & Energy Corporation (“M&EC “) and Perma-Fix of Florida (“PFF”) upgrade to Perma-Fix of Northwest (“PFNW”) model.

	  	
3.0%

	
·  On-Site Service (“OSS”) – Project Controller operations tracking system.

	  	
3.0%

	
·  Business Portal – to support Time and Entry tracking for Schreiber & Yonley & Associates (“SYA”) and OSS.

	  	
3.0%

	
·  Sales – Sales and Opportunity Tracking System.

	  	
3.0%

	
·  Human Resources (“HR”) - Time Management improvements (Timeclocks)

	  	
3.0%

	
7)

	
Unbilled trade receivables is the amount of unbilled reported per Form 10-Q or Form 10-K combining both the long term and current portion of unbilled.  Unbilled trade receivable balances older than 12/31/08 should be reduced by $2.987 million from $3,318,000 as of 12/31/10 to $331,000 by 12/31/11.

Performance Incentive Compensation Payment

Effective date of plan is January 1, 2011 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 2011 - Compensation Plan.  I have read and understand and accept employment under the terms and conditions set forth therein.

 

	
/s/ Ben Naccarato

	  	
3/22/2011

	  
	
/s/Ben Naccarato

	  	
Date

	  
	  	  	  	  
	
/s/Mark Zwecker

	  	
3/22/2011

	  
	
/s/ Board of Director

	  	
Date

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