Document:

EX-10.28

 

EXHIBIT
10.28

SUMMARY OF AIRNET SYSTEMS, INC. 2007 INCENTIVE COMPENSATION PLAN

On March 28, 2007, the Board of Directors of AirNet, upon the recommendation of the Compensation
Committee, adopted the 2007 Incentive Compensation Plan (the “2007 Incentive Plan”). The purpose
of the 2007 Incentive Plan was to promote the following goals of AirNet for the fiscal year ending
December 31, 2007 (the “2007 fiscal year”) by providing incentive compensation to certain employees
of AirNet:

	 	•	 	attaining designated levels of pre-tax income;
	 
	 	•	 	achieving designated levels of Express Services revenues and contribution margin;
	 
	 	•	 	reducing AirNet’s operating costs;
	 
	 	•	 	establishing AirNet as the express air carrier of choice for highly controlled and time sensitive shipments;
	 
	 	•	 	leveraging AirNet’s aviation infrastructure to improve contribution margin;
	 
	 	•	 	operating in all areas of AirNet’s business in an absolutely safe, highly professional,
dependable, efficient and customer focused manner; and
	 
	 	•	 	developing AirNet’s leadership team.

Participants in the 2007 Incentive Plan included AirNet’s executive officers – Bruce D. Parker
(Chairman of the Board, Chief Executive Officer and President), Larry M. Glasscock, Jr. (Senior
Vice President, Express Services), Jeffery B. Harris (Senior Vice President, Bank Services), Ray L.
Druseikis (Vice President of Finance and Controller and Interim Chief Financial Officer, Treasurer
and Secretary) and Craig A. Leach (Vice President, Information Systems) — and certain department
managers and department directors. There were 37 participants in the 2007 Incentive Plan who
received payments under its terms.

The targeted incentive compensation payment a participant could have earned under the 2007
Incentive Plan ranged from 20% to 100% of the participant’s base salary, depending upon such
participant’s level of responsibility for achieving AirNet’s goals for the 2007 fiscal year. The
targeted percentage of annual base salary that each of AirNet’s executive officers could have
earned as incentive compensation under the 2007 Incentive Plan was as follows: Bruce D. Parker,
100%; Larry M. Glasscock, Jr. and Jeffery B. Harris, 75%; and Ray L. Druseikis and Craig A. Leach,
50%.

Payments under the 2007 Incentive Plan were based on a combination of AirNet’s (i) pre-tax income
for the 2007 fiscal year, (ii) Express Services revenues and contribution margins for the 2007
fiscal year, and (iii) the achievement of personal goals assigned to each participant. The
Compensation Committee determined the personal goals of the Chief Executive Officer. The Chief
Executive Officer determines the personal goals for the other executive officers, which were
reviewed and approved by the Compensation Committee. The personal goals of other participants were
approved by the Chief Executive Officer and reviewed by the Compensation Committee. The personal
goals approved by the Compensation Committee for each of the executive officers related to specific
business objectives with respect to general business operations (e.g., regulatory compliance,
expense reductions, etc.) and each business segment (e.g., execution of specific contracts with
customers and vendors, cost reductions, service improvements, etc.).

With the exception of Bruce D. Parker, no incentive compensation was to be paid under the 2007
Incentive Plan unless AirNet achieved at least 80% of its targeted pre-tax income for the 2007
fiscal year. Mr. Parker was eligible to receive the portion of his incentive compensation
potential allocated to his personal goals without regard to AirNet’s attainment of its financial
objectives. Once the designated threshold level of pre-tax income was achieved, potential
incentive compensation payouts were to increase at predetermined levels until the maximum incentive
compensation payout of approximately $1.7 million was reached at approximately 140% of AirNet’s
targeted pre-tax income for the 2007 fiscal year.

Once the aggregate potential incentive compensation payout is determined based upon the level of
pre-tax income achieved by AirNet during the 2007 fiscal year, each participant’s incentive
compensation payment was to be determined based upon the following three components of the 2007
Incentive Compensation Plan (i) pre-tax income for the 2007 fiscal year; (ii) Express Services
revenues and contribution margins for the 2007 fiscal year, and (iii) the achievement of personal
goals. With the exception of Mr. Parker, 20% of each participant’s incentive compensation payout
was allocated to the attainment of personal goals. Forty percent of Mr. Parker’s incentive
compensation payment was allocated to the attainment of personal goals. The portion of each
participant’s incentive compensation potential that was not allocated to the attainment of personal
goals was to be allocated to the attainment of predetermined levels of pre-tax income and Express
Services revenues and contribution margin based upon such participant’s responsibility for
achieving such goals.

 

 

No
incentive compensation was to be earned with respect to the Express Services component of the 2007
Incentive Plan unless AirNet achieved at least 100% of its targeted Express Services revenues and
contribution margin. Once the
designated threshold levels of Express Services revenues and contribution margin were achieved,
potential incentive compensation payouts under the Express Services component of the 2007 Incentive
Plan were to increase at predetermined levels until the maximum Express Services compensation
payout level was achieved.

Mr. Parker’s incentive compensation payments under the 2007 Incentive Plan was based upon the
achievement of certain pre-determined financial objectives and personal goals for the first six
months of the 2007 fiscal year and the last six months of the 2007 fiscal year. Mr. Parker was
eligible to receive up to 50% of his annual base salary in each six-month period, subject to the
attainment of Mr. Parker’s predetermined financial objectives and personal goals. In each
six-month incentive compensation period, Mr. Parker’s incentive compensation potential was
allocated among Mr. Parker’s financial objectives and personal goals as follows:

	 	•	 	30% of Mr. Parker’s incentive compensation potential was based upon attaining at least
100% of the targeted pre-tax income for the applicable six-month period;
	 
	 	•	 	30% of Mr. Parker’s incentive compensation potential was based upon attaining at least
100% of the targeted Express Services revenues and contribution margin for the applicable
six-month period; and
	 
	 	•	 	40% of Mr. Parker’s incentive compensation potential was based upon the attainment of
the personal goals established for Mr. Parker by the Board of Directors.

The Board of Directors established the following personal goals for Mr. Parker for the 2007 fiscal
year:

	 	•	 	development of an AirNet operating vision, including specific objectives and strategy;
	 
	 	•	 	development of a chief executive officer succession plan; and
	 
	 	•	 	developing AirNet’s management into an integrated team working to achieve specific
objectives.

The Board of Directors evaluated Mr. Parker’s performance at the end of each six month incentive
compensation period and determined his incentive compensation payment based upon AirNet’s financial
performance and achievement of Mr. Parker’s personal goals during such period. In the event the
Board of Directors approved a strategic alternative that was completed based upon Mr. Parker’s
efforts, Mr. Parker would have been be deemed to have met all his financial objectives and personal
goals for the six month incentive compensation period in which the strategic alternative was
completed. In such event, Mr. Parker would have been entitled to receive his maximum incentive
compensation for such six month period, prorated from the first day of such six month period to the
date the strategic alternative is completed.

Except for payments to Mr. Parker and AirNet’s other executive officers, payments under the 2007
Incentive Plan were paid in quarterly payments commencing with the first quarter of the 2007 fiscal
year based upon AirNet’s year to date financial performance. With the exception of Mr. Parker,
payments of incentive compensation to AirNet’s executive officers were made in the first quarter of
the fiscal year ending December 31, 2008 based upon AirNet’s performance and each executive
officer’s performance for the 2007 fiscal year. Mr. Parker’s incentive compensation payments were
made in two installments on September 14, 2007 and March 13, 2008. In order to receive a payment,
a participant must have been actively employed by AirNet at the time the payment was made. New
employees who qualified for the 2007 Incentive Compensation Plan were eligible to participate on
the first day of the calendar quarter following their date of hire.

In the event the incentive compensation payments otherwise available for payment under the 2007
Incentive Plan based upon AirNet’s level of pre-tax income were not to be paid to certain
participants as a result of such participants’ failure to attain their personal goals or AirNet’s
failure to attain the predetermined levels of Express Services revenues or contribution margin,
such unpaid amounts could have been awarded at the discretion of the Compensation Committee to
participants in the 2007 Incentive Plan or to other employees of AirNet not participating in the
2007 Incentive Plan. In the event such discretionary awards were made to any participant,
including AirNet’s executive officers, the total incentive compensation payment to any such
participant could have exceeded the targeted incentive compensation payment to such participant as
described above.

On
November 6, 2007, the Board of Directors of AirNet, upon the
recommendation of the Compensation Committee, amended the 2007
Incentive Plan so that for purposes of computing the pre-tax income
of AirNet for the 2007 fiscal year, the $2.2 million non-cash
impairment charge recorded by AirNet in the third quarter of the 2007
fiscal year would be disregarded and AirNet’s pre-tax income for the
2007 fiscal year would be computed as if no impairment charge had
been incurred.

During the 2007 fiscal year and the fiscal quarter ending March 31, 2008, AirNet made payments
under the terms of the 2007 Incentive Plan in the aggregate amount of approximately $1.0 million,
which included $71,500 paid to Mr. Parker in 2007 as described above. In March of 2008, the
following executive officers of AirNet were paid the following amounts under the 2007 Incentive
Plan: Bruce D. Parker — $133,200; Jeffery B. Harris — $125,600; Larry M. Glasscock, Jr. — $94,200;
Craig A. Leach — $58,100; and Ray L. Druseikis — $55,000.EX-10.29

 

EXHIBIT
10.29

SUMMARY OF AIRNET SYSTEMS, INC. 2008 INCENTIVE COMPENSATION PLAN

On March 29, 2008, the Board of Directors of AirNet, upon the recommendation of the Compensation
Committee, adopted the 2008 Incentive Compensation Plan (the “2008 Incentive Plan”). The purpose
of the 2008 Incentive Plan is to promote the following goals of AirNet for the fiscal year ending
December 31, 2008 (the “2008 fiscal year”) by providing incentive compensation to certain employees
of AirNet:

	 	•	 	Operate in all areas of AirNet’s business in an absolutely safe, highly professional,
dependable, efficient and customer-focused manner
	 
	 	•	 	Operate as one team and one company focused on results
	 
	 	•	 	Meet company financial objectives, as measured by budgeted pre-tax income
	 
	 	•	 	Grow Express Services (as measured by Express Services contribution margins) and
Express Services markets in dedicated retail charter cargo and wholesale / ACMI dedicated charters
	 
	 	•	 	Modify AirNet’s air transportation network flying relative to customer demand
efficiently
	 
	 	•	 	Improve AirNet’s overall contribution margins and establish AirNet as the express air
carrier of choice for highly controlled and time sensitive shipments
	 
	 	•	 	Reduce selling, general and administrative costs

Participants in the 2008 Incentive Plan include AirNet’s executive officers – Bruce D. Parker
(Chairman of the Board, Chief Executive Officer and President), Larry M. Glasscock, Jr. (Senior
Vice President, Express Services), Jeffery B. Harris (Senior Vice President, Bank Services), Ray L.
Druseikis (Vice President of Finance and Controller and Principal Accounting Officer; Interim Chief
Financial Officer, Treasurer and Secretary) and Craig A. Leach (Vice President, Information
Systems) — and certain department managers and department directors. As of the date of this
Annual Report on Form 10-K, there were 37 participants in the 2008 Incentive Plan.

The targeted incentive compensation payment a participant may earn under the 2008 Incentive Plan
ranges from 20% to 100% of the participant’s base salary, depending upon such participant’s level
of responsibility for achieving AirNet’s goals for the 2008 fiscal year. The targeted percentage of
annual base salary that each of AirNet’s executive officers may earn as incentive compensation
under the 2008 Incentive Plan is as follows: Bruce D. Parker, 100%; Larry M. Glasscock, Jr.,
Jeffery B. Harris, 75%; Ray L. Druseikis and Craig A. Leach, 50%.

Payments under the 2008 Incentive Plan will be based on a combination of AirNet’s (i) pre-tax
income for the 2008 fiscal year, (ii) Express Services contribution margins for the 2008 fiscal
year, and (iii) the achievement of personal goals assigned to each participant. The Compensation
Committee determines the personal goals of the Chief Executive Officer. The Chief Executive
Officer determines the personal goals for the other executive officers, which are reviewed and
approved by the Compensation Committee. The personal goals of other participants are approved by
the Chief Executive Officer and are reviewed by the Compensation Committee. The personal goals
approved by the Compensation Committee for each of the executive officers relate to specific
business objectives with respect to general business operations (e.g., regulatory compliance,
expense reductions, etc.) and each business segment (e.g., execution of specific contracts with
customers and vendors, cost reductions, service improvements, etc.).

With the exception of Mr. Parker, no incentive compensation will be paid under the 2008 Incentive
Plan unless AirNet achieves at least 80% of its targeted pre-tax income for the 2008 fiscal year.
Once this designated threshold level of pre-tax income is achieved, potential incentive
compensation payouts will increase at predetermined levels until the maximum incentive compensation
payout is reached at approximately 143% of AirNet’s targeted pre-tax income for the 2008 fiscal
year.

Once the aggregate potential incentive compensation payout is determined based upon the level of
pre-tax income achieved by AirNet during the 2008 fiscal year, each participant’s incentive
compensation payment will be determined based upon the following three components of the 2008
Incentive Compensation Plan (i) pre-tax income for the 2008 fiscal year; (ii) Express Services
contribution margins for the 2008 fiscal year, and (iii) the achievement of personal goals. Twenty
percent of each participant’s incentive compensation payout is allocated to the attainment of
personal goals. The portion of each participant’s incentive compensation potential that is not
allocated to the attainment of personal goals will be allocated to the attainment of

 

 

 predetermined
levels of pre-tax income and Express Services contribution margin based upon such participant’s
responsibility for achieving such goals.

No incentive compensation will be earned with respect to the Express Services component of the 2008
Incentive Plan unless AirNet achieves at least 100% of its targeted Express Services contribution
margin. Once the designated threshold level of Express Services contribution margin is achieved,
potential incentive compensation payouts under the Express
Services component of the 2008 Incentive Plan will increase at predetermined levels until the
maximum Express Services compensation payout level is achieved.

Mr. Parker’s incentive compensation payments under the 2008 Incentive Plan will be based upon the
achievement of certain pre-determined financial objectives and personal goals for the first six
months of the 2008 fiscal year and the last six months of the 2008 fiscal year. Mr. Parker will be
eligible to receive up to 50% of his annual base salary in each six-month period, subject to the
attainment of Mr. Parker’s predetermined financial objectives and personal goals. In each
six-month incentive compensation period, Mr. Parker’s incentive compensation potential will be
allocated among Mr. Parker’s financial objectives and personal goals as follows:

	 	•	 	30% of Mr. Parker’s incentive compensation potential will be based upon attaining at
least 90% of the targeted pre-tax income for the applicable six-month period;
	 
	 	•	 	30% of Mr. Parker’s incentive compensation potential will be based upon attaining at
least 80% of the targeted Express Services contribution margin for the applicable
six-month period; and
	 
	 	•	 	40% of Mr. Parker’s incentive compensation potential will be based upon the attainment
of the personal goals established for Mr. Parker by the Board of Directors.

The Board of Directors established the following personal goals for Mr. Parker for the 2008 fiscal
year:

	 	•	 	refine AirNet’s operating strategy;
	 
	 	•	 	developing AirNet’s management into an integrated team working to achieve specific
objectives; and
	 
	 	•	 	development of a chief executive officer succession plan

The Board of Directors will evaluate Mr. Parker’s performance at the end of each six month
incentive compensation period and determine his incentive compensation payment based upon AirNet’s
financial performance and achievement of Mr. Parker’s personal goals during such period. In the
event the Board of Directors approves a strategic alternative that is completed based upon Mr.
Parker’s efforts, Mr. Parker will be deemed to have met all his financial objectives and personal
goals for the six month incentive compensation period in which the strategic alternative is
completed. In such event, Mr. Parker will be entitled to receive his maximum incentive
compensation for such six month period, prorated from the first day of such six month period to the
date the strategic alternative is completed.

Payments under the 2008 Incentive Plan will be made in semi-annual payments commencing with the
first six months of the 2008 fiscal year based upon AirNet’s year to date financial performance.
In order to receive a payment, a participant must be actively employed by AirNet at the time the
payment is made. New employees who qualify for the 2008 Incentive Plan will be eligible to
participate on the first day of the calendar quarter following their date of hire.

In the event the incentive compensation payments otherwise available for payment under the 2008
Incentive Plan based upon AirNet’s level of pre-tax income are not to be paid to certain
participants as a result of such participants’ failure to attain their personal goals or AirNet’s
failure to attain the predetermined levels of Express Services contribution margin, such unpaid
amounts may be awarded at the discretion of the Compensation Committee to participants in the 2008
Incentive Plan or to other employees of AirNet not participating in the 2008 Incentive Plan. In
the event such discretionary awards are made to any participant, including AirNet’s executive
officers, the total incentive compensation payment to any such participant may exceed the targeted
incentive compensation payment to such participant as described above.

The Compensation Committee may amend, modify or terminate the 2008 Incentive Plan at any time.

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