Document:

Ex-10.31

 

Exhibit 10.31

2008 INCENTIVE COMPENSATION PLAN

America Service Group Inc.

Overall Compensation Philosophy: America Service Group (ASG) strives to provide an
equitable and market-based compensation program for employees. In addition to a comprehensive
benefit program, ASG compensates employees through competitive base salaries, a merit system and an
incentive compensation plan. Eligible employees include designated executive managers, corporate
managers, corporate employees, division vice presidents, regional vice presidents, regional
directors and health services administrators.

In accordance with the PHS Policy on Medical Autonomy, clinical decisions and actions regarding
health care provided to inmates to meet their serious medical needs are the sole responsibility of
qualified health care professionals. No financial incentives are available to clinicians based
upon medical utilization.

The 2008 Incentive Compensation Plan is designed to award lump-sum bonuses to eligible employees
based on the financial performance of the company, regions and local sites. The 2008 corporate
adjusted EBITDA target is determined by the Board of Directors and will be exclusive of all costs
related to the investigation conducted by the Audit Committee, share-based compensation expense,
and earnings from acquisitions during the year.

Incentive Opportunities by position

2008 targeted payouts (as a percentage of base salary) are outlined below:

	 	 	 	 	 
	Executive Management
	 	 	 	 
	Chairman and
CEO — ASG, ASG COO (President and CEO — PHS),
CFO, CAO, CIO, CDO,
Corporate Medical Director,
Operations Group Vice Presidents
	 	 	50	%
	 
	 	 	 	 
	Operations
	 	 	 	 
	Division Vice Presidents
	 	 	40	%
	Regional Vice Presidents
	 	 	30	%
	Regional Directors
	 	 	20	%
	Health Service Administrators (HSAs)
	 	 	15	%
	 
	 	 	 	 
	Corporate Staff
	 	 	 	 
	Corporate
Controller, VP-Finance/Asst. Treasurer, VP Provider Operations, VP
Human Resources, General Counsel — PHS
	 	 	35	%
	Corporate Vice Presidents
	 	 	30	%
	Corporate Middle Managers
	 	 	20	%
	Non-Management Corporate Office Employees
Key Contributor Pool
	 	 	10	%

 

 

Executive Management

	•	 	No incentive compensation paid if actual corporate adjusted EBITDA is below 100% of
corporate adjusted EBITDA target.
	 
	•	 	After Operations incentive compensation for division, region, district and site financial
performance are accrued as per their respective plans and the 2008 corporate adjusted EBITDA
target is reached, 50% of earnings generated above the actual corporate adjusted EBITDA target
will be used for incentive funding.
	 
	•	 	For Group Vice Presidents

	 	1.	 	Once the incentive is funded, it will be subject to a Modifier as follows:

	 	•	 	If individual performance as determined by the President of PHS is below standard,
the incentive pay will be the amount funded above multiplied by 80% to 99%.
	 
	 	•	 	If individual performance as determined by the President of PHS is at standard, the
incentive payout will be the amount funded above multiplied by 100%.
	 
	 	•	 	If individual performance as determined by the President of PHS is above standard,
the incentive payout will be the amount funded above multiplied by
101% to 120%.

	•	 	Incentives above individual target payouts to a maximum of 200% can be earned.

For Corporate Medical Director

Given the unique nature of the Corporate Medical Director job in ensuring the quality of the
delivery of health care by setting standards and monitoring care, the incentive for this position
will work as follows:

	•	 	Incentive will be up to 200% of individual targeted payout based on the
achievement of qualitative goals as determined by the ASG COO with the approval of
the Ethics and Quality Assurance Committee of the Board of Directors.

Corporate Management

	•	 	No incentive compensation paid if actual corporate adjusted EBITDA is below 100% of the
corporate adjusted EBITDA target.
	 
	•	 	After Operations bonuses for division, region, district and site financial performance are
accrued as per their respective plans and the 2008 corporate EBITDA target is reached, 50% of
earnings generated above the actual corporate adjusted EBITDA target will be used for
incentive funding.

For Non-Management Corporate Office Employees — Key Contributor Pool

At the end of the year, those corporate employees who are considered to have made a significant
contribution to the company’s success will be considered for a “key contributor” bonus. A pool of
up to 10% of underlying base salaries will be funded and distributed based on the recommendation of

 

 

individual corporate managers, with the approval of executive management. Payment requirements for
‘Corporate Management’ positions apply to ‘Key Contributor Pool’ funding.

Operations/Regional Positions (Division Vice Presidents, Regional Vice Presidents,

Regional Directors)

	1.	 	50% of the incentive funding will be based on regional results. Therefore, if regional
operating margin is 100% of ‘Plan’ (defined as original budget amount regardless if current
contracts are lost or new contracts are added during the course of the year) or more, up to 50% of
target incentive may be earned. Once division, region, or district Plan is reached, 50% of
earnings generated above Plan will be used for operating margin incentive funding.
	 
	2.	 	After Operations bonuses for division, region, district and site financial performance are
accrued as per their respective plans and the 20078corporate adjusted EBITDA target is reached, 50%
of target incentive may be earned. Fifty percent (50%) of earnings generated above the Corporate
adjusted EBITDA target will be used for incentive funding.
	 
	3.	 	Once the incentive is funded, it will be subject to a Modifier as follows:

	 	•	 	If individual Performance as determined by the President of PHS is below standard,
the incentive pay will be the amount funded from items 1. and 2. above multiplied by
80% to 99%.
	 
	 	•	 	If Individual Performance as determined by the President of PHS is at standard, the
incentive payout will be the amount funded from items 1. and 2. above multiplied by
100%.
	 
	 	•	 	If Individual Performance as determined by the President of PHS is above standard,
the incentive payout will be the amount funded from items 1. and 2. above multiplied by
101% to 120%.

	4.	 	For participants in multi-facility contract systems (e.g. Virginia DOC, Pennsylvania DOC,
etc.), the entire multi-facility system must make Plan to be eligible to receive an ‘operating
margin’ bonus payment.

HSAs

	1.	 	If site operating margin is 100% of ‘Plan’ (defined as original budget or new business
pricing forecasts) or greater, 50% of target incentive may be earned. Once site Plan is
reached, 50% of earnings generated above site Plan will be used for site operating margin
incentive funding.
	 
	2.	 	After Operations bonuses for division, region, district and site financial performance are
accrued as per their respective plans and the 2008 corporate adjusted EBITDA target is
reached, 50% of target incentive may be earned. Fifty percent (50%) of earnings generated
above corporate adjusted EBITDA target will be used for incentive funding,
	 
	3.	 	An incentive payout pool will be calculated from items 1 and 2 above. Payments to HSAs will
be subject to a modifier as follows:

	 	•	 	If individual Performance as determined by the President of PHS is below standard,
the incentive pay will be the amount funded from items 1. and 2. above multiplied by
80% to 99%.
	 
	 	•	 	If Individual Performance as determined by the President of PHS is at standard, the
incentive payout will be the amount funded from items 1. and 2. above multiplied by
100%.
	 
	 	•	 	If Individual Performance as determined by the President of PHS is above standard,
the incentive payout will be the amount funded from items 1. and 2. above multiplied by
101% to 120%.

 

 

	4.	 	For participants in multi-facility contract system (e.g. Virginia DOC, Pennsylvania DOC,
etc.) the entire multi-facility system must make Plan to be eligible to receive a ‘site
operating margin’ bonus payment.

Bonus Payment (applies to all employee categories covered in this Plan)

All incentive compensation payments will be made to the extent of available funding. Eligible
employees must be employed by the company at the time of incentive compensation distribution to be
eligible to receive the incentive compensation amount. The incentive compensation of employees
transferring within the company will be prorated between the sites. The proration is based upon
the total number of months at each site. Employees hired after July 1 will not be eligible for an
incentive compensation payment. The incentive compensation payments for newly hired eligible
employees or employees promoted to bonus eligible positions on July 1 or earlier will be prorated
based on the full calendar months of employment. (For example, an employee hired on April 1 is
eligible for 75% (9/12ths) of the bonus amount earned.) Bonus payments for employees
terminated as a result of a change in control or in connection with death or permanent disability
will also be prorated. The incentive compensation payment checks will be distributed to employees
after applicable annual financial closings and related earnings releases.

Designated Participants

All eligible employees except HSAs and managers working in conjunction with the Philadelphia
contract and Rikers Island contract.

The 2008 Incentive Plan ‘corporate adjusted EBITDA target’ is $14,000,000.EX-4.48

 

EXHIBIT 4.48

THIRD AMENDMENT

TO CREDIT AGREEMENT

     This Third Amendment to Credit Agreement (“Amendment”), is entered into as of April
30, 2007, by and between LaSalle Bank National Association (the “Lender”) and Telvent
Traffic North America Inc., a corporation organized and existing under the laws of the State of
Texas (the “Borrower”).

WITNESSETH:

     WHEREAS, the Borrower and the Lender have entered into a Credit Agreement, dated as of May 31,
2006 (as amended, extended, modified or supplemented from time to time, the “Credit
Agreement”);

     WHEREAS, the Borrower and the Lender desire to amend certain provisions of the Credit
Agreement to extend the Termination Date within the meaning thereof to August 1, 2007 as set forth
under the terms and conditions stated herein;

     NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:

1. Definitions. Capitalized terms used herein but not defined herein shall have the
meaning ascribed thereto in the Credit Agreement, as amended hereby.

2. Amendment.

     (a) Section 1.01 of the Credit Agreement is hereby amended to delete the reference to the
definition of “Termination Date” contained therein and to replace said reference as follows:

     “‘Termination Date’ means August 1, 2007.”

3. Conditions. This Amendment shall not become effective until:

     (a) This Amendment shall have been executed and delivered by the Borrower and the Lender;

     (b) The Guarantor has executed an Affirmation of Guaranty substantially in the form of Annex 1
to this Amendment;

     (c) Resolutions; Incumbency.

          (1) Copies of the resolutions, powers of attorney or other analogous action of the board of
directors, members or other governing body of the Borrower and the

 

 

Guarantor authorizing the transactions contemplated hereby, certified as of the date hereof by
the Secretary, Assistant Secretary or other analogous official of the Borrower and the Guarantor,
respectively; and

          (2) A certificate of the Secretary , Assistant Secretary or other analogous official of the
Borrower and the Guarantor, certifying the names and true signatures of the officers or other
persons of the Borrower and the Guarantor authorized to execute, deliver and perform, as
applicable, this Amendment and the Note;

     (d) Organization Documents; Good Standing. Each of the following documents:

          (1) The articles or certificate of incorporation or certificate of formation or other
constitutive documents and the bylaws or limited liability company agreements of the Borrower as in
effect on the date hereof, certified by the Secretary, Assistant Secretary, or other authorized
officer or person of the Borrower as of the Closing Date; and

          (2) A good standing certificate for the Borrower from the Secretary of State (or similar,
applicable Governmental Authority) of its state of incorporation or formation as of a recent date;

     (e) Certificate. A certificate signed by a Responsible Officer, dated as of the
Closing Date, stating that:

          (1) the representations and warranties contained in Article V of the Credit Agreement
are true and correct on and as of such date, as though made on and as of such date;

          (2) no Default or Event of Default exists or would result from the execution, delivery and
performance of this Amendment; and

          (3) no event or circumstance that has resulted or could reasonably be expected to result in a
Material Adverse Effect;

     (f) Such other approvals, opinions, documents, financial statements or materials as the Lender
may reasonably request.

4. Representations and Warranties. The Borrower represents and warrants to the Lender
(which representations and warranties shall become part of the representations and warranties made
by the Borrower under the Credit Agreement) that:

     (a) The execution, delivery and performance of this Amendment has been duly authorized by all
necessary company action and will not require any consent or approval of its shareholders, violate
in any material respect any provision of any law, rule, regulation, order, writ, judgment,
injunction, decree, determination or award presently in effect having applicability to it or
constitute a default under any indenture or loan or credit agreement or any other agreement, lease
or instrument to which the Borrower is a party or by which it or its properties may be bound or
affected;

-2-

 

     (b) No consent, approval or authorization of or declaration or filing with any governmental
authority or any non-governmental person or entity, including without limitation, any creditor or
partner of the Borrower is required on the part of the Borrower in connection with the execution,
delivery and performance of this Amendment or the transactions contemplated hereby and the
execution, delivery and performance of this Amendment will not violate the terms of any contract or
agreement to which the Borrower is a party;

     (c) The Credit Agreement, as amended pursuant to this Amendment, is the legal, valid and
binding obligation of the Borrower, enforceable against it in accordance with the terms thereof;

     (d) After giving effect to the Amendment contained herein and effective pursuant hereto, the
representations and warranties contained in Article V of the Credit Agreement (other than those
made solely in reference to an express date) are true and correct on and as of the Effective Date
hereof in the same force and effect as if made on and as of such Effective Date; and

     (e) After giving effect to this Amendment no Event of Default has occurred or exists under the
Credit Agreement as of the date hereof.

5. Expenses. The Borrower agrees to pay and save the Lender harmless from liability for
the payment of all costs and expenses arising in connection with this Amendment, including the
reasonable fees and expenses of Baker & McKenzie LLP, counsel to the Lender, in connection with the
preparation and review of this Amendment and any related documents.

6. Governing Law. This Amendment shall be governed by and construed in accordance with the
internal laws of the State of Illinois.

7. Counterparts; Facsimile. This Amendment may be executed in one or more counterparts,
each of which together shall constitute the same agreement. One or more counterparts of this
Amendment may be delivered by facsimile, with the intention that such delivery shall have the same
effect as delivery of an original counterpart thereof.

-3-

 

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

	 	 	 	 	 
	LASALLE BANK NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 
	By:

	 	/s/ Amy Kehoe
	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Its:

	 	First Vice President	 	 
	 

	 	 	 	 

	 	 	 	 	 
	TELVENT TRAFFIC NORTH AMERICA INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Thomas Christopher
	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Its:

	 	Vice President	 	 
	 

	 	 	 	 

	 	 	 	 	 
	By:
	 	/s/ Manuel Fernandez Maza	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Its:
	 	Director	 	 
	 

	 	 	 	 

-4-

 

ANNEX 1

AFFIRMATION

OF GUARANTY

*    This
Annex has not been filed as Telvent GIT, S.A. has determined it is
immaterial; however, a copy of the omitted Annex 1 will be furnished
by Telvent GIT, S.A. to the Commission upon a request by the
Commission.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}]]