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EXHIBIT 10.28
TALON
AUTOMOTIVE 900 Wilshire Drive
GROUP LLC Suite 203
Troy, Michigan 48084
(810) 362-7600
FAX (810) 362-7617
October 25, 1996
Mr. Michael Veltri
President & CEO
Veltri International
900 Wilshire Plaza
Suite 150
Troy, MI. 49084
Dear Mike:
While we have discussed Talon Automotive Group's bonus program verbally several
times, per your request, I am putting in writing the Talon Automotive Group's
executive bonus program that you would be eligible to participate in:
* Executives can earn up to 50% of their base pay by obtaining certain
agreed upon performance levels. Over the last several years,
performance metrics have primarily focused on pre-tax net income
performance versus budget, however, prospectively, other measures may
be utilized such as ROA, EVA, etc.
* On an annual basis, each business unit prepares a business plan
including a financial budget for the upcoming year. These budgets
include income statements, balance sheets and cash flows. All business
plans are approved by T.A.G.'s executive committee then ultimately by
the owners in mid December.
* Bonuses are earned as long as actual performance meets or exceeds 75%
of the annual budget. Under 75% bonuses are not awarded. Over 75%
bonuses are earned ratably through the range of 0% - 5O%.
* The following indicates how bonuses are earned and provides and
example:
Performance Relative to
Budgeted Earnings Bonus as Percentage of Base
* 75% - 100% of budgeted earnings * 0 - 35%
* 100% - 125% * 35% - 50%
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Mr. Michael Veltri
Veltri International
October 25, 1996
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Example:
Assume: Budgeted Pre-Tax Net Income - $4.0 million
Base Pay = $375,000 (Estimate)
Percentage of Percentage
Actual Performance Budget Bonus of Base Bonus
------------------ ------ ------------- -----
Net income $5.0 million 125% 50% $187,500
Net income $4.0 million 100% 35% $131,250
Net income $3.5 million 88% 8.2% $ 68,250
Net income $2.8 million 70% 0 0
* Payment of the bonus is made after completion of the year-end audit by
Ernst & Young, usually in mid-March after year-end.
* Finally, any rights that you may have to any unpaid bonuses would be
forfeited if you are not employed by the company on December 31 of any
year, you terminate your employment with the company at any time, or
if you are terminated by the company for cause, as defined in your
employment agreement.
Hopefully, this clears up this issue. Please call if you have any questions.
Sincerely,
/s/ David J. Woodward
David J. Woodward
Vice President/CFO
DJW/apt