Personal Objectives. Bonus amounts will be computed separately for achievement of Financial Objectives and Personal Objectives, as set forth below under the captions “Financial Objectives” and “Personal Objectives”, respectively. Final payments under the Annual Incentive Compensation Plan will be made after receipt and approval by the Board of the annual audited financial statements of the Company for the year ending December 31, 2007. A Plan Participant will not be paid a bonus unless the Plan Participant is employed by the Company on the date the Board approves the annual audited financial statements for 2007. Payments shall be made under the Plan in a manner necessary to preserve the exemption from Section 409A of the Internal Revenue Code. The Compensation Committee recognizes the need of the Plan Participants to conduct themselves in compliance with the Code of Business Conduct. In addition to the non-financial consequences contained in the Code of Business Conduct, any violation of the Code of Business Conduct shall result in complete forfeiture of any bonus which would otherwise be paid under this Plan. Financial Objectives The financial performance of the Company will be measured against Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), after accrual of all incentive compensation plan payments. EBITDA will be determined in a manner consistent with the definition of EBITDA contained in Exhibit 1. For the fiscal year ended December 31, 2007, the Financial Objective goal will be set at the 2007 budgeted EBITDA of $XXXXXX (the “2007 Financial Objective Goal”). The minimum goal will be set at a percentage of the 2007 Financial Objective Goal equal to the greater of (i) 2006 EBITDA achieved by the Company (expressed as a percentage of the 2007 EBITDA Financial Objective Goal), or (ii) 90% of the 2007 Financial Objective Goal (the “Minimum Goal”). The maximum goal will be set at 110% of the 2007 Financial Objective Goal (the “Maximum Goal”). The bonus payout under the Financial Objective portion of the Plan shall be 50% of the Target Bonus at achievement of the 2007 Financial Objective Goal. If the 2007 actual EBITDA achieved is at least equal to the Minimum Goal, the bonus payout under the Financial Objective portion of the Plan shall be expressed as 50% of the Target Bonus multiplied by the following percentage (provided that the bonus payout shall not exceed the Maximum Goal): The sum of:
Appears in 2 contracts
Sources: Employment Agreement (Asset Acceptance Capital Corp), Employment Agreement (Asset Acceptance Capital Corp)