Incentive Plan

FY2006 Annual Incentive Plan

EXHIBIT 10.36

 

FY2006 SALARY AND BONUS ARRANGEMENTS

FOR EXECUTIVE OFFICERS

 

FY2006 Salary Structure

 

Position


  

Name


   FY2005 Base

   Increase

   FY2006 Base

Chairman/CEO

   Ronald M. Lamb    $ 700,000    $ -0-    $ 700,000

President/COO

   Robert J. Myers    $ 265,000    $ 40,000    $ 305,000

SVP Operations

   Terry Handley    $ 200,000    $ 30,000    $ 230,000

CFO

   William J. Walljasper    $ 165,000    $ 25,000    $ 190,000

SVP/Secretary

   John G. Harmon    $ 260,000    $ 25,000    $ 285,000

 

FY2006 Annual Incentive Plan

 

The maximum bonus available to the executive officers (and Vice Presidents) will be an amount equal to 35% of base salary. Of that amount, 75% will be based on earnings per share, and 25% based on return on invested capital.

 

If and as earnings per share reach specified targets approved by the Board of Directors, bonus payments will be made in amounts equal to 7.50%, 11.25%, 18.75% or 26.25% of the base salary amount.

 

If and as return on invested capital reaches specified targets approved by the Board, bonus payments will be made in amounts equal to 2.50%, 3.75%, 6.25% or 8.75% of the base salary amount. For this purpose, return on invested capital is determined by dividing operating income after depreciation and tax before interest by average invested capital.