Document:

Exhibit

10.25

 

 

FLORISTS’ TRANSWORLD DELIVERY, INC.

3113 Woodcreek

Drive

Downers Grove, Illinois 60515

 

June 28, 2002

 

FTD.COM INC.

3113 Woodcreek Drive

Downers Grove, Illinois 60515

 

Michael J. Soenen

3113 Woodcreek Drive

Downers Grove, Illinois 60515

 

Re:                               Modification of Employment Arrangements

 

Dear Ladies and Gentlemen:

 

                                This

letter agreement (this “Agreement”) sets forth the agreement of

Florists’ Transworld Delivery, Inc., a Michigan corporation (the “Assignee”),

FTD.COM INC., a Delaware corporation (the “Assignor”), and Michael J.

Soenen (the “Executive” and collectively with the Assignee and the

Assignor, the “Parties”) relating to the assignment and assumption of

the Executive’s employment from the Assignor to the Assignee.

 

                                Reference

is made to (i) that certain letter agreement, dated as of June 14, 2001,

between the Assignor and the Executive (the “Letter Agreement”), (ii)

that certain confidentiality and non-disclosure agreement, dated as of June 14,

2001, between the Assignor and the Executive (the “Confidentiality Agreement”)

and (iii) that certain restricted shares agreement, dated as of May 2000,

between the Assignor and the Executive (the “Equity Award Agreement”).

 

                                Subject to the modifications thereto set

forth in this Agreement, effective as of June 28, 2002  (the “Assignment Date”):

(i) the Assignor hereby assigns all of its rights and obligations arising on

and after the Assignment Date under the Letter Agreement and the

Confidentiality Agreement to the Assignee; (ii) the Assignee hereby assumes all

of the rights and obligations of the Assignor arising on and after the

Assignment Date under the Letter Agreement and the Confidentiality Agreement;

and (iii) the Executive hereby consents and agrees to such assignment and

assumption.

 

                                The Parties agree that, as of the

Assignment Date, the Executive shall no longer be employed by the

Assignor.  Notwithstanding the

foregoing, each of the Parties hereby agrees that the assignment and assumption

described in the preceding paragraph shall not be deemed to be a  termination

of the Executive’s employment by the Assignor for any purpose whatsoever under

the Letter Agreement, the Confidentiality Agreement or the Equity Award

Agreement (including, for purposes hereof, the Assignor’s 1999 Equity Incentive

Plan).  Furthermore, the 

 

1

 

assignment and assumption described above shall not adversely affect

the timing of the vesting of restricted shares  under the Equity Award

Agreement.  The Executive agrees and

acknowledges that he is not entitled to and shall not receive any severance or

other benefits in connection with the assignment and assumption described

above.

 

                                Each

of the Parties hereby agrees that as of the Assignment Date, all references in

the Letter Agreement to “FTD.COM INC.” and “FTD.COM” shall be amended to refer

instead to “Florists’ Transworld Delivery, Inc.”; provided, however,

that all references in the Letter Agreement to “FTD.COM’s 1999 Equity Incentive

Plan” shall remain unchanged by the execution of this Agreement.

 

                                Each

of the Parties hereby agrees that as of the Assignment Date: (i) all references

in the Confidentiality Agreement to “FTD.COM INC.” and “the Company” shall be

amended to refer instead to “Florists’ Transworld Delivery, Inc.”; (ii) the

phrase “relating to the Company, Florists’ Transworld Delivery, Inc., a

Michigan corporation and the direct parent corporation of the Company (‘FTDI’),

or IOS Brands Corporation, a Delaware corporation and the indirect parent

corporation of the Company (‘IOS’)” in Section 1(b) of the Confidentiality

Agreement shall be amended and restated to read “relating to the Company or IOS

Brands Corporation, a Delaware corporation and the direct parent corporation of

the Company (‘IOS’)”; and (iii) all references in the Confidentiality Agreement

to “FTDI” and “FTDI’s” shall be deleted.

 

                                Each

of the Parties hereby agrees that as of the Assignment Date, all references in

the Equity Award Agreement to “the Company” and “FTD.COM Inc.” shall be amended

to refer instead to “Florists’ Transworld Delivery, Inc.”; provided, however,

that all references in the Equity Award Agreement to  “FTD.COM’s 1999 Equity Incentive Plan” shall remain unchanged by

the execution of this Agreement.

 

                                The

Executive hereby acknowledges and agrees that pursuant to the Agreement and

Plan of Merger, dated as of March 3, 2002, among IOS Brands Corporation, a

Delaware corporation (“IOS”), the Assignee, Aroma Acquisition Corp., a

Delaware corporation, and the Assignee (the “Merger Agreement”), upon

consummation of the transactions contemplated thereby, the Equity Award

Agreement shall be assumed by IOS.

 

                                This

Agreement shall be governed by the internal laws of the State of Illinois,

without giving effect to any conflicts-of-law principles thereof.  Each of the Parties consents to the

jurisdiction and venue of any federal or state court located in the City of

Chicago, Illinois, and waive any objection thereto.  Any amendment or modification to this Agreement shall require the

written consent of each of the Parties. 

If any provision of this Agreement is partially or completely invalid or

unenforceable, then that provision shall only be ineffective to such extent of

its invalidity or unenforceability and the remainder of this Agreement shall be

unaffected thereby. In the event of any inconsistency between this Agreement

and the Letter Agreement, the Confidentiality Agreement or the Equity Award

Agreement, this Agreement shall govern. 

Any disputes or controversies relating to this Agreement shall be

settled by the arbitration procedures set forth in the Letter Agreement.

 

 

2

 

 

                                This

Agreement may be executed in any number of counterparts, all of which shall be

considered one and the same agreement, and shall become effective when one or

more counterparts have been signed by each of the Parties and delivered to the

other Parties.  A facsimile signature

page hereto shall be deemed to be an original signature page for all purposes

hereunder.

 

	

   

  	

  FLORISTS’

  TRANSWORLD DELIVERY, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ LARRY JOHNSON

  
	

   

  	

  Its: Vice President, Human Resources

  

 

 

AGREED TO AND ACCEPTED as of the

date first written above:

 

 

	

  EXECUTIVE

  
	

   

  	

   

  
	

  By:

  	

  /s/ MICHAEL J. SOENEN

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  FTD.COM

  INC.

  
	

   

  	

   

  
	

  By:

  	

  /s/ LARRY JOHNSON

  
	

  Its: Vice President, Human Resources

  

 

 

3Exhibit 10.26

 

EMPLOYMENT AGREEMENT

 

Mark

Lipparelli

THIS

AGREEMENT is made

and entered into as of the 30th day of April, 2001, by and between

Shuffle Master, Inc., a Minnesota corporation (the ”Company”), and Mark

Lipparelli (the “Employee”), a resident of the State of Nevada.

 

RECITALS:

 

A.                                   The Company is in the business of

developing, manufacturing, distributing and otherwise commercializing gaming

equipment, games, and operating systems for gaming equipment and related

products and services throughout the United States and in Canada and other

countries (the “Business”).

 

B.                                     Company and Employee want to create an

at-will employment relationship that protects the Company with appropriate

confidentiality and non-compete covenants and rewards the Employee with a

severance package for performing his obligations for the full term of this

contract or such shorter term as may be determined in accordance with the terms

and conditions of this Agreement.

 

C.                                     The Company and Employee desire that

Employee be employed by the Company on the terms and conditions of this

Agreement.

 

AGREEMENT

 

In consideration of the mutual promises contained

herein, Employee and the Company agree as follows:

 

1.             Employment.  The Company hereby employs Employee as its Executive Vice President,

reporting to the Chief Executive Officer and the President of the Company.  Employee shall perform the duties of that

position and shall perform such other related duties as the Company may direct

from time to time.  Employee’s

employment with the Company is for a term beginning April 30, 2001 through

October 31, 2002, but may be terminated earlier in accordance with the

provisions of this Agreement.

 

2.             Salary and Benefits.  During the Company’s fiscal year ending

October 31, 2001:  (a) Employee shall be

paid an annual base salary of One Hundred Fifty Thousand Dollars ($150,000.00)

(from his initial hiring date through September 30, 2001, at which time

Employee, shall be paid an annual base salary of One Hundred Eighty Thousand

Dollars ($180,000)), paid in the same intervals as other employees of the

Company; and (b) if employed through October 31, 2001, Employee will be

eligible to receive an executive bonus in accordance

 

 

1

 

with the terms and conditions of the executive bonus program authorized

by the Board of Directors of the Company, as set forth on Exhibit A attached

hereto.  If Company meets Employee’s

reasonable expectations for advancement, Company and Employee will negotiate in

good faith any appropriate modifications of this Agreement.  If Company and Employee are unable to agree

on any such modifications, this Agreement will remain in full force and

effect.  Alternatively, if (a) Employee

is employed through September 30, 2001, but not through October 31, 2001;

(b) Company has failed to meet Employee’s reasonable expectation regarding

advancement on or before September 30, 2001; (c) other Company

executes employed through October 31, 2001 are eligible to receive an executive

bonus in accordance with the terms and conditions of the executive bonus

program authorized by the Board of Directors of the Company as set forth on Exhibit

A attached hereto; and (d) Employee has not breached his obligations

for fiscal year ending October 31, 2001, then Employee will be paid a bonus of

Thirty Thousand Dollars ($30,000) at the same time the Company pays fiscal 2001

bonuses to other Company executives. During the Company’s fiscal year

commencing November 1, 2001, Employee will receive a base salary no less than

that set forth above and if employed through October 31, 2002 will be eligible

to participate in an executive bonus program authorized by the Board of

Directors of the Company for that year, which is expected to be generally

similar to that set forth in Exhibit A, but with a full year of

employment required and such performance targets and bonus percentages as may

be adopted by the Board.  Employee will

receive a stock option grant to purchase 50,000 shares of the Company’s common

stock at its closing price on March 28, 2001, in accordance with and subject to

the terms and conditions imposed by the Board of Directors at its March 28,

2001 meeting and to the extent not inconsistent with the terms of the granting

resolution, in accordance with, and subject to the terms and conditions of the

1993 Employee Stock Option Plan, as amended. 

The stock underlying this option grant will come from the authorized but

unissued shares of the Company and not from the pool of stock authorized for

issuance under the 1993 Stock Option Plan.

 

Vesting of the above

option grants occurs, unless otherwise accelerated, as follows:  one-third on April 30, 2002, provided the

employee is employed with the Company on such date; and one-third on April 30,

2003, provided the employee is employed with the Company on such date; and

one-third on April 30, 2004, provided the employee is employed with the Company

on such date.

 

The Company shall register the 50,000 shares of common

stock underlying the stock option grant for sale on or before March 15,

2002.  Employee will have twelve (12)

months from his last day of Employment, or six (6)

 

 

2

 

months following any severance period whichever period is longer,

during which to exercise any vested stock options.  Employee, unless required to do so earlier, must exercise any

vested stock option on or before March 27, 2011 or such option will forfeit and

be of no further force and effect.

 

Employee’s salary is set

on the expectation that (except for vacation days and holidays) Employee’s full

time will be devoted to Employee’s duties hereunder.  The Company agrees to provide Employee with the benefits it

provides its executive team.  Employee

will not, however, be eligible to participate in the Company’s non-executive

bonus program.  Employee shall receive

three (3) weeks paid vacation per calendar year prorated based on the number of

weeks actually employed during any such calendar year.

 

During Employee’s

employment with the Company, the Company will promptly pay or reimburse

Employee for reasonable travel, entertainment and other expenses incurred by

Employee in the furtherance of or in connection with the performance of

Employee’s duties.  Such reimbursement

will be in accordance with Company policies in existence from time to time.

 

3.             Outside Consulting.  Employee shall devote Employee’s full time

and best efforts to the Company. 

Employee may render consulting services to other businesses from time to

time only if approved in writing by the Chief Executive Officer or by the

President of the Company.  Company

acknowledges and approves that Employee during the first two (2) weeks of his

employment with Company will be providing consulting services to Employees’ previous

Company which may significantly reduce the amount of time Employee can devote

to Company during the first two (2) weeks of his employment.  Company approves such consulting by Employee

during the first two (2) weeks of his employment.  Employee may serve in any capacity with any civic, educational or

charitable organization, provided such service does not prevent Employee

meeting his fiduciary obligation to Company.

 

4.             Non-competition.  In consideration of the provisions of this Agreement and the

severance benefits for which Employee is eligible pursuant to Section 9,

Employee shall not, while employed by the Company or its successor and

thereafter until November 1, 2002:

 

(a)                                  directly or indirectly own, manage,

operate, participate in, consult with or work for any business which is engaged

in the Business anywhere in the United States or Canada.

 

(b)                                 either alone or in conjunction with any

other person, partnership or business, directly or indirectly, solicit or

divert or attempt to solicit or divert any of the employees or agents of the Company

or its affiliates or successors to work for or represent any competitor of the

Company or its affiliates or successors or to call upon any

 

 

3

 

of the customers of the

Company or its affiliates or successors.

 

5.                                       Confidentiality;

Inventions.

 

(a)                                  Employee shall fully and promptly

disclose to the Company all inventions, discoveries, software and writings that

Employee may make, conceive, discover, develop or reduce to practice either

solely or jointly with others during Employee’s employment with the Company,

whether or not during usual working hours. 

Employee agrees that all such inventions, discoveries, software and

writing shall be and remain the sole and exclusive property of the Company, and

Employee hereby agrees to assign, and hereby assigns all of Employee’s right,

title and interest in and to any such inventions, discoveries, software and

writings to the Company.  Employee

agrees to keep complete records of such inventions, discoveries, software and

writings, which records shall be and remain the sole property of the Company,

and to execute and deliver, either during or after Employee’s employment with

the Company, such documents as the Company shall deem necessary or desirable to

obtain such letters patent, utility models, inventor’s certificates,

copyrights, trademarks or other appropriate legal rights of the United States

and foreign countries as the Company may, in its sole discretion, elect, and to

vest title thereto in the Company, its successors, assigns, or nominees.

 

(b)                                 “Inventions,” as used herein, shall

include inventions, discoveries, improvements, ideas and conceptions,

developments and designs, whether or not patentable, tested, reduced to

practice, subject to copyright or other rights or forms of protection, or

relating to data processing, communications, computer software systems,

programs and procedures.

 

(c)                                  Employee understands that all

copyrightable work that Employee may create while employed by the Company is a

“work made for hire,” and that the Company is the owner of the copyright

therein.  Employee hereby assigns all

right, title and interest to the copyright therein to the Company.

 

(d)                                 Employee has no inventions, improvements,

discoveries, software or writings useful to the Company or its subsidiaries or

affiliates in the normal course of business, which were conceived, made or

written prior to the date of this Agreement.

 

(e)                                  Employee will not publish or otherwise

disclose, either during or after Employee’s employment with the Company, any

unpublished or proprietary or confidential information or secret relating to

the Company, the Business, the Company’s operations or the Company’s products

or services.  Employee will not publish

or otherwise disclose proprietary or confidential information of others to

which Employee has had access or obtained knowledge in the course of Employee’s

employment with the Company.  Upon

termination of Employee’s employment with the Company, Employee will not,

without the prior written consent of the Company, retain or take with Employee

any drawing, writing or other record in any form or nature which relates to any

of the foregoing.

 

(f)                                    Employee understands that Employee’s

employment with the Company creates a relationship of trust and confidence

between Employee and the Company. 

Employee understands that Employee may encounter information in the

performance of Employee’s duties that is confidential to the Company or its

customers.  Employee agrees to maintain

in confidence all information pertaining to the Business or the Company to

which Employee has access including, but not limited to, information relating

to the Company’s products, inventions, trade secrets, know how, systems,

formulas, processes, compositions, customer information and lists, research

projects, data processing and

 

 

4

 

computer software

techniques, programs and systems, costs, sales volume or strategy, pricing,

profitability, plans, marketing strategy, expansion or acquisition or

divestiture plans or strategy and information of similar nature received from

others with whom the Company does business. 

Employee agrees not to use, communicate or disclose or authorize any

other person to use, communicate or disclose such information orally, in

writing, or by publication, either during employee’s employment with the

Company or thereafter except as expressly authorized in writing by the Company

unless and until such information becomes generally known in the relevant trade

to which it relates without fault on employee’s part, or as required by law.

 

6.             Early Termination by Company Without Just Cause.  Employee’s employment by the Company is “at

will”; the Company may terminate Employee’s employment at any time either with

or without just cause.  Notwithstanding

any termination without just cause, Employee will remain bound under the

covenants not to compete and confidentiality obligations of Sections 4 and

5 of this Agreement and the Severance Benefits provided under Section 9 will

remain in full force and effect.

 

7.             Early Termination by Company for Just Cause.  The Company may terminate

Employee for just cause.  In the event

the Company terminates the Employee for just cause, the Employee will remain

bound under the covenant not to compete and the confidentiality obligations

contained in Sections 4 and 5 and will not be entitled to any of the severance

benefits provided under Section 9. 

Termination for “just cause” shall include:

 

(a)                                  repeated inattention to duty, which has

not been remedied by Employee within thirty (30) days following written notice

thereof;

 

(b)                                 dishonesty as to a matter which is

materially injurious to the Company;

 

(c)                                  the commission of a willful act or

omission intended to materially injure the business of the Company; or

 

(d)                                 a violation of any material provision of

this Agreement, including, in particular, the provisions of Sections 4 and

5 hereof.

 

8.             Voluntary Termination

by Employee.   In the event Employee voluntarily terminates

his employment with the Company (or its successor), Employee will remain bound

under the confidentiality and non-compete obligation of Sections 4 and 5 and

will not be entitled to receive any of the severance benefits provided under

Section 9.  Voluntary termination means

any termination by the Employee on or before September 30, 2001, without a

material breach of a substantial provision of this Agreement by the Company and

any termination by the Employee after September 30, 2001 without a material

breach of a substantial provision of this Agreement by the Company, unless the

Company has failed to meet the Employee’s reasonable expectations regarding

advancement

 

 

5

 

by September 30, 2001, under which circumstances Employee’s termination

will be considered an involuntary termination. Voluntary termination includes a

termination caused by the death of Employee or disability of Employee for more

than six (6) months.

 

9.             Severance Benefits. 

In the event that Employee is terminated without “just cause”

(as defined in Section 7) or leaves his employment involuntarily (as defined in

Section 8) prior to the end of the term set forth in Section 1 hereof, then:

 

(a)                                  During the period immediately

following Employee’s last day of employment through October 31, 2002 (the

“Severance Period”), Employee will be paid each month, as Employee’s sole

remedy, an amount equal to Employee’s then prevailing monthly base salary.  In addition, during the Severance Period the

Employee shall continue to receive all of the Company’s employee benefits, if

eligible; if Employee is not eligible for health benefits, the Company shall

pay the COBRA premiums for continuation coverage during the period of severance

payments.

 

(b)                                 Provided that Employee has not

breached his obligations contained in Sections 4 and 5, Employee’s option to

purchase 16,666 shares of the Company’s common stock that was scheduled to vest

on April 30, 2002, in the event of the Employee’s continued employment through

such date, if it hasn’t already vested, will vest on April 30, 2002,

notwithstanding Employee’s termination of employment. .

 

10.           Cooperation with Change in Control.  Employee will reasonably cooperate with the

Company in the event of a change in control, and exercise his stock options in

a way as to not hinder the progress or closing of the transaction, and in no

event later than three (3) months following the closing.

 

11.           No Conflicting Agreements.  Employee has the right to enter into this

Agreement, and hereby confirms Employee has no contractual or other impediments

to the performance of Employee’s obligations including, without limitation, any

non-competition or similar agreement in favor of any other person or entity.

 

12.           D & O Policy.  During Employee’s employment with the

Company, the Company shall maintain director and officer liability insurance in

reasonable scope and amounts. 

Notwithstanding the existence of such insurance, Employee shall also be

entitled to indemnification in accordance with the by-laws of the Company.

 

13.           Independent Covenants.  The covenants on the part of the Employee

contained in Sections 4 and 5 hereof shall be construed as agreements

independent of any other provision in this Agreement; it is agreed that the

relief for any claim or cause of action of the Employee against the Company,

whether predicated on this Agreement or otherwise, shall be measured in damages

and shall not constitute a defense to enforcement by the Company of those

covenants.

 

 

6

 

 

14.           Injunctive Relief; Attorneys’ Fees. In

recognition of the irreparable harm that a violation by Employee of any of the

covenants contained in Sections 4 and 5 hereof would cause the Company, the

Employee agrees that, in addition to any other relief afforded by law, an

injunction (both temporary and permanent) against such violation or violations

may be issued against him or her and every other person and entity concerned

thereby, it being the understanding of the parties that both damages and an

injunction shall be proper modes of relief and are not to be considered

alternative remedies.  Employee consents

to the issuance of such injunction relief without the posting of a bond or

other security.  In the event of any

such violation, and the issuance of an preliminary injunction against Employee

pursuant to Nevada Rules of Civil Procedure 65, THE EMPLOYEE AGREES TO PAY THE

COSTS, EXPENSES AND REASONABLE ATTORNEYS’ FEES INCURRED BY THE COMPANY IN

PURSUING ANY OF ITS RIGHTS WITH RESPECT TO SUCH VIOLATIONS, IN ADDITION TO THE

ACTUAL DAMAGES SUSTAINED BY THE COMPANY AS A RESULT THEREOF. If; provided,

however, that if there is a final determination by the Court that the Employee

did not violate any of the covenants contained in Sections 4 and 5 hereof,

Employee shall have no obligation to pay the foregoing costs, expenses and

attorneys’ fees of the Company and the Company agrees to pay the costs,

expenses and reasonable attorneys’ fees incurred by the Employee in defending

himself with respect to such alleged violations.

 

15.           Notice. 

Any notice sent by registered mail to the last known address of the

party to whom such notice is to be given shall satisfy the requirements of

notice in this Agreement.

 

16.           Entire Agreement.  This Agreement is the entire agreement of the parties hereto

concerning the subject matter hereof and supersedes and replaces any oral or

written existing agreements between the Company and the Employee relating

generally to the same subject matter. 

Company and Employee hereby acknowledge that there are no agreements or

understandings of any nature, oral or written, regarding Employee’s employment,

apart from this Agreement.

 

17.           Severability.  It is further agreed and understood by the parties hereto that if

any provision of this Agreement should be determined by a court to be

unenforceable in whole or in part, it shall be deemed modified to the minimum

extent necessary to make it reasonable and enforceable under the circumstances.

 

 

7

 

18.           Governing Law.  This Agreement shall be construed and enforced in accordance with

the laws of the State of Nevada, without giving effect to the principles of

conflicts of laws thereof.

 

19.           Heirs, Successors and Assigns.  The terms, conditions, and covenants hereof

shall extend to, be binding upon, and inure to the benefit of the parties

hereto and their respective heirs, personal representatives, successors and

assigns.

 

IN

WITNESS WHEREOF,

the parties hereto have executed this Agreement as of the day, month and year

first above written.

 

	

  COMPANY:

  	

   

  	

  EMPLOYEE:

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  SHUFFLE MASTER, INC.

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ Joseph J. Lahti

  	

   

  	

  By:

  	

  /s/ Mark Lipparelli

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Its:

  	

  Chief Executive Officer

  	

   

  	

   

  	

  Mark Lipparelli

  

 

 

8

 

EXHIBIT A

 

Executive Bonus

Program — F/Y/E 10/31/2001

 

                Employee may earn a percentage

of Employee’s base salary (actually received during the Company’s fiscal year

ending 10/31/01) as a bonus during fiscal year 2001, which will vary depending

on the percentage of targeted income before taxes ($17,254,000) earned by the

Company:

 

	

  Company Earnings as %

  of targeted income before taxes

  	

   

  	

  Bonus

  
	

  a.

  	

   

  	

  Less than 90%

  	

   

  	

  0

  
	

  b.

  	

   

  	

  90%

  	

   

  	

  40% of base salary actually received during the

  Company’s fiscal year ending 10/31/01.

  
	

  c.

  	

   

  	

  90% — 100%

  	

   

  	

  40% of base salary actually received during the

  Company’s fiscal year ending 10/31/01 plus an additional one percent (1%) of

  base salary actually received during the Company’s fiscal year ending

  10/31/01 for each increase of one percent (1%) over ninety percent (90%).

  
	

  d.

  	

   

  	

  100%

  	

   

  	

  50% of base salary actually received during the

  Company’s fiscal year ending 10/31/01.

  
	

  e.

  	

   

  	

  100% — 120%

  	

   

  	

  50% of base salary actually received during the

  Company’s fiscal year ending 10/31/01, plus an additional one-half percent

  (.05%) of base salary for each increase of one percent (1%) over 100%.

  
	

  f.

  	

   

  	

  120%

  	

   

  	

  60% of base salary actually received during the

  Company’s fiscal year ending 10/31/01.

  
	

  g.

  	

   

  	

  over 120%

  	

   

  	

  60% of base salary actually received during the

  Company’s fiscal year ending 10/31/01, plus an additional 1% of base salary

  for each increase of one percent over 120%.

  

 

                For example, if the Company earns 100% of its

targeted income before taxes during fiscal 2001, and assuming Employee had been

employed by Company for the entire fiscal year ending October 31, 2001,

Employee would be paid a performance bonus of $75,000(150,000 x 50%).  If the Company earns 90% of its targeted

income before taxes during fiscal 2001, and assuming Employee had been employed

for the entire fiscal year ending October 31, 2001, Employee would be paid a

performance bonus of $60,000 ($150,000 x 40%). 

If the Company earns 120% of its targeted income before taxes and

assuming Employee had been employed by Company for the entire fiscal year

ending October 31, 2001, Employee’s performance bonus would be $90,000

($150,000 x 60%). If the Company earns more than 120% of its targeted income

before taxes, and assuming that Employee had been employed by Company for the

entire fiscal year ending October 31, 2001, Employee’s performance bonus would

further increase by an amount equal to one percent (1%) of his base salary for

each percent by which the percentage increase in income before taxes exceeds

120% of the target.  In no event shall

the amount of Employee’s bonus exceed 2 times the Employee’s annual base salary

actually received during the fiscal year ending October 31, 2001.

 

 

1

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