Document:

2010 Bonus Plan for William J. Razzouk and Michael J. Twomey

  
	

	 

2010 Annual CEO & CFO Targets

Consolidated 

Business

150%  Payout

On 

Rev/EBITDA

130% Payout

On 

Rev/EBITDA

Plan

100% Payout

On 

Rev/EBITDA

80% Payout

On 

Rev/EBITDA

60%Payout

On 

Rev/EBITDA

Revenue:

Billed : (30%)

Booked:  (20%) 

$201.2M  

(110%)

$33.9M

(110%)

$192.1M 

(105%)

$32.3M 

(105%)

$182.9M

$30.8M

$164.6M  

(90%)

$27.7M

(90%)

$146.3M  

(80%)

$24.6M  

(80%)

Operating 

EBITDA: (50%)

$13.8M 

(110%)

$13.2M 

(105%)

$12.6M

$11.3M (90%)

$10.1M

(80%)

Exhibit 10.162010 Bonus Plan for Michael A. Desmarais

  
	

	 

2009 Newgistics, Inc. Company Confidential. All Rights Reserved.

____________________________________________________________________________________________

____________________________________________________________________________________________

 2010 LMI Annual Bonus Targets

Executive Annual Award Payout

Forward and  

Returns 

Business

140%  Payout

On 

Rev/EBITDA

120% Payout

On 

Rev/EBITDA

Plan

100% Payout

On 

Rev/EBITDA

75% Payout

On 

Rev/EBITDA

50%Payout

On 

Rev/EBITDA

Revenue:

Billed : (30%)

$10.3M  

(110%)

$9.8M   

(105%)

$9.3M

$8.9M    

(95%)

$8.4M    

(90%)

Operating 

EBITDA: (70%)

$3.1M  

(110%)

$3.0M   

(105%)

$2.8M

$2.5M    

(90%)

$2.3M

(80%)

Individual’s payment is subject to a final recommendation by the CEO to
the
 Compensation Committee based upon CEO’s determination of the
contribution made 
 by each executive. 

Exhibit 10.16.12010 Bonus Plan for Alva J. Phillips and Todd A. Everett

  
	

	 

2010 Annual Exec Targets

Forward and  

Returns 

Business

140%  Payout

On 

Rev/EBITDA

120% Payout

On 

Rev/EBITDA

Plan

100% Payout

On 

Rev/EBITDA

75% Payout

On 

Rev/EBITDA

50%Payout

On 

Rev/EBITDA

Revenue:

Billed : (30%)

Booked:  (20%) 

$191.0M  

(110%)

$33.9M

(110%)

$182.3M 

(105%)

$32.3M 

(105%)

$173.6M

$30.8M

$156.2M  

(90%)

$27.7M

(90%)

$138.9M  

(80%)

$24.6M  

(80%)

Operating 

EBITDA: (50%)

$10.7M 

(110%)

$10.2M 

(105%)

$9.8M

$8.7M (90%)

$7.8M

(80%)

Exhibit 10.16.22010 Commission Plan for Kenneth W. Johnson

 Exhibit 10.17 
 March 7, 2010 
  

			
	 FROM: Bill Razzouk
	  	TO: Ken Johnson

 Subject: 2010 Incentive Plan

 The following incentive compensation plan is based on: 
  

	 	1.	2010 Booked Revenue quota: $30,800,000 

  

	 	2.	Booked Revenue is estimated annualize value of fully ramped deal based on the following rules: 

 

	 	a.	New business will be booked immediately after first invoice to customer. 

  

	 	b.	Project based business will be booked quarterly base on actual billings during previous quarter. 

 

	 	c.	 New 3PL customers will be booked at 1/4 of estimated value after first billing. A true up will be done quarterly based on previous quarter’s
actual billing. 

  

	 	3.	An accelerator of .25% will be paid on all new business revenue after attainment of 100% of the booked revenue quota for the balance of the 2010 plan year.

 The following will determine commission rates based on cumulative booked revenue targets: 

 

	 	1.	1. Delivery Revenue commission is paid at .5% of billed revenue 2. Returns Revenue commission is paid at 1.5% of billed revenue. 

 

	 	2.	3. For deals where margin is below minimum target (as defined in account exec plans), commission rate will be determined by CEO. 

 

	 	3.	New business commission will be paid on the first 16 months for the following products: 

 

	 	•	 	 Delivery Parcel Business (all classes) 

  

	 	•	 	 Smart Label Returns and Return Center 

  

	 	•	 	 Other new products introduced during the year. 

  

	 	4.	As an incentive to ensure existing business is maintained, a bonus will be paid for achievement of the $173,597,359 billed revenue target as follows:

  

	 	•	 	 Payment of a $10,000 bonus at 90% of plan. 

  

	 	•	 	 Payment of an additional $5000 bonus at 95% of plan. 

  

	 	•	 	 Payment of an additional $5000 bonus at 100% of plan. 

 

	 	•	 	 For each additional percentage point over the combined billed revenue plan, an additional $5000 will be paid. 

If the above provisions of your 2010 sales commission plan are acceptable to you, please indicate your approval by signing and returning this memorandum
for the file. 
 Sincerely, 
 Bill
Razzouk 
  

			
	Read and accepted:
	
	/s/ Ken Johnson
	Ken JohnsonShipping Services Contract

 Exhibit 10.18 

CONFIDENTIAL TREATMENT REQUESTED 
 *** CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED AS [****]. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 RESTRICTED AND
SENSITIVE BUSINESS INFORMATION – DO NOT DISCLOSE 
 SHIPPING SERVICES
CONTRACT 
 BETWEEN 

THE UNITED STATES POSTAL SERVICE 

AND 
 NEWGISTICS, INC. 
 REGARDING
PARCEL RETURN SERVICE 
 This contract for shipping services is made by and between Newgistics,
Inc (“Customer”), an organization incorporated and existing under the laws of Delaware, with its principal office at 2700 Via Fortuna, Suite 300, Austin, TX 78746, and the United States Postal Service (“the Postal Service”), an
independent establishment of the Executive Branch of the United States Government established by the Postal Reorganization Act, Public Law 91-375, with its principal office at 475 L’Enfant Plaza, SW, Washington, DC 20260. The Postal Service and
Customer are referred to herein collectively as the “Parties” and each as a “Party.” 
 WHEREAS, it is the intention of the
Parties to enter into a shipping services contract that will benefit the Postal Service, the postal system as a whole, and Customer, and that will comply with the requirements of Title 39 United States Code, as amended by the Postal Accountability
and Enhancement Act of 2006. 
 NOW, THEREFORE, the Parties agree as follows: 

 

	I.	Terms 

 The following
terms apply as of the effective date, as defined below: 
  

	 	A.	Except to the extent different terms or prices are specified in this contract, applicable provisions of the Domestic Mail Manual (as may be regularly updated by the
Postal Service and posted at http://pe.usps.com/text/dmm300/dmm300_landing.htm) and of other postal laws and standards apply to mail tendered under this contract. 

 

	 	B.	This Postal Service will make available to Customer [****], as specified in this contract. 

 

	 	C.	The Postal Service will provide to [****]. 

  

	 	D.	The Postal Service will tender all PRS pieces to Customer in the following Postal Service equipment: double stackable gaylords or tall gaylords (72" or higher).
Working with the Postal Service, Customer will return equipment to the Postal Service within 30 days. 

 *** CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED AS [****]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 

RESTRICTED AND SENSITIVE BUSINESS INFORMATION – DO NOT DISCLOSE 

 

	 	E.	To be eligible for the prices and options provided for in this contract, Customer must maintain [****]. 

 

	 	F.	To be eligible for the prices and options provided in this contract, Customer must adhere to the following requirements for all PRS pieces, including those for which it
pays published prices: 

  

	 	1.	[****] 

  

	 	2.	[****] 

  

	 	3.	Customer will maintain manifest files and transmission reports for 90 days from the time of creation and will make these available for inspection by the Postal Service
upon request. 

  

	 	4.	The PRS authorization letter in effect between the Postal Service and Customer, dated June 8, 2010, as may be modified from time to time, continues to apply to
Customer’s PRS pieces, except to the extent that different terms are specified in this contact. 

  

	 	G.	Price Calculation. 

  

	 	1.	Contract Years. “Year(s)” or “contract year(s)” refers to the one-year period(s) from November 1 through October 31, unless
otherwise specified. 

  

	 	2.	Contract Quarters. “Quarter(s)” or “contract quarter(s)” refers to the periods as follows: 

Quarter 1: Nov. 1 – Jan. 31 
 Quarter 2: Feb. 1 – Apr. 30 
 Quarter 3: May 1 – Jul. 31

 Quarter 4: Aug. 1 – Oct. 31 
  

	 	3.	Base Prices. Beginning on November 7, 2010, customer will pay base prices as follows: 

[****] 
  

	 	4.	[****] 

  
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 *** CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED AS [****]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 

RESTRICTED AND SENSITIVE BUSINESS INFORMATION – DO NOT DISCLOSE 

 

	 	5.	Potential Contract Extension. If the condition in section 7.a below is met, the contract will extend an additional year through October 31, 2013:

  

	 	a.	Pickup. At the end of October 2012, the Postal Service will calculate the percentage of total packages picked up from the origin location via a Postal Service carrier.
The percent of packages picked up from the origin location via a Postal Service carrier must be [****] or less. 

If the condition in section 7.a is not met, Customer must agree to pay a [****] per package fee for each package above the [****] carrier
pickup threshold in order for the contract to be extended through October 31, 2013. Customer will notify the Postal Service in writing that it agrees to pay this fee in order to extend the contract for a third year. The Postal Service will then
notify Customer in writing whether or not the contract will be extended for a third year. 
  

	II.	Regulatory Review and Effective Date 

 This contract is subject to approval by Postal Service senior management and/or the Governors of the Postal Service, as well as by the Postal Regulatory Commission (“the Commission”). In
accordance with Title 39 and the Commission’s Rules of Practice and Procedure, and upon approval of the Postal Service Governors, the Postal Service will make required filings with the Commission. The effective date of this contract shall be
the day on which the Commission issues all necessary regulatory approval. 
  

	III.	Expiration Date and Termination 

 This contract shall expire two years from the effective date, unless (1) terminated by mutual agreement in writing, (2) renewed or extended by mutual agreement in writing, (3) superseded by
a subsequent written contract between the Parties, (4) ordered by the Commission or a court, or (5) required to comply with subsequently enacted legislation. Either Party may terminate this contract unconditionally and without penalty upon
thirty days’ written notice to the other Party. 
  

	IV.	Confidentiality 

 Customer
acknowledges that as part of securing approval of this contract, the contract and supporting documentation will be filed with the Postal Regulatory Commission in a docketed proceeding. The Postal Service shall request from the Commission non-public
treatment of information that the Postal Service deems to be eligible for protection from public disclosure when it files such material with the Commission, including Customer’s identity, the identity of Customer’s member organizations,
the terms of this contract, and supporting data relating to postal costs, prices, and Customer’s shipping profile, including data relating to 

  
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 *** CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED AS [****]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 

RESTRICTED AND SENSITIVE BUSINESS INFORMATION – DO NOT DISCLOSE 

 

 
Customer’s member organizations. The Postal Service will redact such information from its public filing. Customer authorizes the Postal Service to determine the scope of information that
must be made publicly available in the Commission’s docketed proceeding. Customer further understands that a redacted version of this contract and redacted supporting information will be available on the Commission’s public website,
www.prc.gov. At the request of Customer, the Postal Service will notify Customer of the docket number of the Commission proceeding once assigned. Customer has the right, in accordance with the Commission’s rules, to address its confidentiality
concerns directly with the Commission. Customer agrees to treat as confidential and not disclose to third parties absent express written consent by the Postal Service any information related to this contract that is determined by the Commission to
be non-public. 
  

	V.	Appeals 

 Customer may
appeal a Postal Service decision regarding prices, the calculation of prices or rebates, the amount of rebates paid, or other implementation or operational issues under this contract by submitting a written appeal within thirty (30) days of
receipt of notification of the determination giving rise to the appeal to: Manager, Pricing and Classification Service Center, 90 Church St. Ste. 3100, New York, NY 10007-2951 ((212) 330-5300 / Fax: (212) 330-5320). The decision of the Manager,
PCSC, will be administratively final. Any decision that is not appealed as prescribed becomes the final Postal Service decision. 
  

	VI.	Amendments 

 This contract
shall not be amended except expressly, in writing, by authorized representatives of the Parties. 
  

	VII.	Assignment 

 Neither Party
may, or shall have the power to, assign its rights under the contract or, delegate its obligations hereunder, without the prior consent of the other; such consent is not to be unreasonably withheld. In addition, in the event that Customer is merged
with or into or acquires another entity, pricing under this contract following such merger or acquisition shall apply only to mail sent by the entity existing prior to the merger or acquisition. Following any such merger or acquisition, the parties
may negotiate in good faith to extend, modify or enter into a new contract applicable to the merged or acquired entity. 
  

	VIII.	Waiver 

 Any waiver by a
party shall not constitute a waiver for any future occurrence. No waiver shall be valid unless set forth in a writing executed by the party waiving such provision. 

  
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 *** CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED AS [****]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 

RESTRICTED AND SENSITIVE BUSINESS INFORMATION – DO NOT DISCLOSE 

 

 IN WITNESS WHEREOF, the Parties hereto have caused this contract to be duly executed as of the day and
year first written above. 
  

			
	UNITED STATES POSTAL SERVICE
		
	Signed by:	 	 /s/ Gary C. Reblin

			
		
	Printed Name:	 	 Gary C. Reblin

			
		
	Title:	 	 Vice President Shipping
Services

			
		
	Date:	 	 October 18, 2010

			
	
	NEWGISTICS, INC
		
	Signed by:	 	 /s/ Michael Twomey

			
		
	Printed Name:	 	 Michael Twomey

			
		
	Title:	 	 CFO

			
		
	Date:	 	 October 15, 2010

  
 5

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