EXHIBIT 10(iii)(c)
Page 1 of 4
TO: GROUP PRESIDENT
SUBJECT: BONUS CONTRACT FOR 1997
The bonus plan applying to you for 1997 is outlined below:
1. Should your operating group attain worldwide operating income
of $________, you will receive a bonus of % of your annual
salary rate in effect on December 31, 1997.
2a. For each $_________ by which your worldwide operating
income exceeds $___________ up to $___________, you will
receive __% of your salary. For each $_________ over
$___________, you will receive _% of your salary.
2b. If you achieve a productivity improvement of ___%, you
will receive an additional _% of your salary.
3. If you attain _____% accounts receivable and inventory
as a percent of sales, you will receive _% of your salary.
For each ___% reduction thereafter, you will receive an
additional _% of your salary.
4. You may receive an additional discretionary award of up
to __% of your salary. The award will be based upon your
individual achievements and the accomplishments of your
Group. Your performance related to reengineering of
business processes will be a major factor in determining
the amount of bonus awarded under this paragraph
especially in our company-wide procurement initiative.
Any award also will be dependent upon the Company's
overall performance.
5. The maximum bonus award on the sum of paragraphs (1) and
(2) will be limited to __% of your salary. The maximum
bonus award on paragraph (3) will be __% of salary. The
maximum bonus award on paragraph (4) will be __% of salary.
The maximum award on the sum of paragraphs (1) through
(4) will be limited to ___% of salary.
Page 2 of 4
BONUS CONTRACT FOR 1997 - GROUP PRESIDENT
6. Should the Company achieve or exceed Earnings Per Share
of $____, the total bonus percentage earned by you under
paragraphs (1) through (5) will be increased in accordance
with the following schedule:
EARNINGS PER
SHARE BONUS % EARNED PAR.1-5
ATTAINED INCREASED BY
$____ 10%
$____ 15%
$____ 20%
$____ 25%
7. The maximum bonus award for paragraphs (1) through (6)
will be limited to ___% of your annual salary rate in
effect on December 31, 1997.
8. Acquisitions, divestitures, changes in assignment, changes
in accounting procedures or tax law, abnormal deviations to
plan in other income and expenses in your financial income
statements, and/or corrections in historical data during
1997 may necessitate pro rata adjustments in the above goals
and/or actual operating results. Any such changes will be
advised as soon as possible.
9. The results will be tabulated by the Corporate Controller's
Office and reflected on Operating Income and Accounts
Receivable and Inventory Reports.
10. It is the present intention of the Company to decide the
amount of bonus for 1997 in February 1998. If the above
objectives are not attained, any bonus award made will be
at the sole discretion of the Company.
11. The Company will be the final arbiter of interpretation of
the above arrangements.
/S/ J. E. Perrella /S/ J. F. Travis
J. E. Perrella J. F. Travis
Chairman Vice Chairman
Page 3 of 4
TO: VICE PRESIDENT
SUBJECT: BONUS CONTRACT FOR 1997
The bonus plan applying to you for 1997 is outlined below:
1. Should a net reduction in direct purchase cost of
$__________ be attained, you will receive a bonus of __%
of your annual salary rate in effect on December 31, 1997.
2. For each additional $_________ in net reduction in direct
purchase cost over $__________, you will receive ___% of
your salary.
3. You will receive a bonus for the average months' supply of
inventory on hand for the entire company determined in
accordance with the following: For average months' supply
of inventory on hand of ___ months, you will receive _% of
your salary. For each ___ months' reduction below ___
months, you will receive _% of your salary.
4. You may receive an additional discretionary award of up to
__% of your salary. The award will be based upon your
implementing the strategic sourcing process throughout the
company, the establishment of the organization structure
and the success in gaining the support of the operating
divisions and groups.
5. The maximum bonus award on the sum of paragraphs (1) and
(2) will be limited to __% of your salary. The maximum bonus
award on paragraph (3) will be __% of salary. The maximum
bonus award on paragraph (4) will be __% of salary.
The maximum award on the sum of paragraphs (1) through (4)
will be limited to ___% of salary.
Page 4 of 4
BONUS CONTRACT FOR 1997 - VICE PRESIDENT
6. Should the Company achieve or exceed Earnings Per Share of $____,
the total bonus percentage earned by you under paragraphs
(1) through (5) will be increased in accordance with the following
schedule:
EARNINGS PER
SHARE BONUS % EARNED PAR.1-5
ATTAINED INCREASED BY
$____ 10%
$____ 15%
$____ 20%
$____ 25%
7. The maximum bonus award for paragraphs (1) through (6) will
be limited to ___% of your annual salary rate in effect on
December 31, 1997.
8. Acquisitions, divestitures, changes in assignment, changes
in accounting procedures or tax law, abnormal deviations to
plan in other income and expenses in your financial income
statements, and/or corrections in historical data during
1997 may necessitate pro rata adjustments in the above
goals and/or actual results. Any such changes will be
advised as soon as possible.
9. The results will be tabulated by the Corporate Controller's
Office.
10. It is the present intention of the Company to decide the
amount of bonus for 1997 in February 1998. If the above
objectives are not attained, any bonus award made will be
at the sole discretion of the Company.
11. The Company will be the final arbiter of interpretation of
the above arrangements.
/S/ J. E. Perrella /S/ J. F. Travis
J. E. Perrella J. F. Travis
Chairman Vice Chairman