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EXHIBIT 10.37
CELEBRITY, INC.
1999 EMPLOYEE BONUS PLAN
The 1999 Celebrity, Inc. 1999 Employee Bonus Plan (the "Plan") will be effective
only for fiscal 1999.
Bonuses under this Plan will be based on the consolidated net after-tax earnings
of Celebrity, Inc. (the "Company") for fiscal 1999, after recording an accrual
for the bonuses due pursuant to the Plan, and excluding extraordinary items
("After-Tax Earnings"), which determination will be made in the sole judgment of
the Compensation Committee of the Board of Directors (the "Committee").
If the Company attains After-Tax Earnings in any of the ranges set forth below,
approximately 40 employees will participate in bonus payments at the average and
ranges listed below, with such percentage applied to their effective annual base
salary at June 30, 1999. The Committee shall approve the participants in the
Plan.
After-Tax Earnings (000 omitted)
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From $1,000 $2,001 $3,001 $4,001 over
To $2,000 $3,000 $4,000 $5,000 $5,000
Bonus as a percentage of effective annual base salary:
From 4.0% 8.0% 15.0% 35.0% 50.0%
To 15.0% 25.0% 60.0% 90.0% 125.0%
Average 9.5% 17.2% 40.2% 63.3% 88.9%
The bonus will be computed based upon final audited results of operations for
fiscal 1999, with payout no later than September 1, 1999. To be eligible, the
participant must satisfactorily perform his or her job functions and management
duties throughout fiscal 1999, with continuing employment through the payment
date.
In the event a participant's employment with the Company is terminated for any
reason other than death, disability or retirement prior to the payment date, all
rights to any bonus under the Plan will be forfeited. In case of death,
disability or retirement, the bonus under the Plan will be calculated on a pro
rata basis in accordance with the time spent in service to the Company.
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CELEBRITY, INC.
1999 EMPLOYEE BONUS PLAN
INCENTIVE BONUS RANGE
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AGGREGATE
ANNUAL LEVEL 1 2 3 4 5
NUMBER BASE OF ------------ ---------- ---------- --------- -----------
IN SALARY A-TE $1,000 to $2,001 to $3,001 to $4,001 to Over $5,000
CLASSIFICATION GROUP (000) ($000s) $2,000 $3,000 $4,000 $5,000
GROUP 1A 4 $ 896 BONUS % 15.0% 25.0% 60.0% 90.0% 125.0%
PAYOUT $ 134 $ 224 $ 538 $ 807 $ 1,120
GROUP 1 4 $ 390 BONUS % 10.0% 20.0% 50.0% 75.0% 100.0%
PAYOUT $ 39 $ 78 $ 195 $ 293 $ 390
GROUP 2 11 $ 577 BONUS % 7.5% 15.0% 35.0% 50.0% 75.0%
PAYOUT $ 43 $ 86 $ 202 $ 288 $ 432
GROUP 3 20 $ 734 BONUS % 4.0% 8.0% 15.0% 35.0% 50.0%
PAYOUT $ 29 $ 59 $ 110 $ 257 $ 367
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TOTAL 39 $ 2,597 BONUS % 9.5% 17.2% 40.2% 63.3% 88.9%
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PAYOUT $ 246 $ 447 $1,045 $1,644 $ 2,310
AVG
AVERAGE PER EMPLOYEE $ 67 BONUS $ 6 $ 11 $ 27 $ 42 $ 59
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