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Exhibit 10(e)
LANIER WORLDWIDE, INC.
KEY CONTRIBUTOR BONUS PLAN
ALTERNATE
GENERAL INFORMATION:
The Key Contributor Bonus Plan (alternate) is an annual bonus plan
based on revenue growth over the previous fiscal year and actual
profit-after-tax results relative to the Annual Incentive Plan (AIP) for
Lanier Worldwide, Inc. and its operating units. The plan is intended to
motivate and reward key contributors for their leadership and contributions
within their business units. This plan is intended as an alternate to the
Return on Capital Key Contributor Plan for use in instances where the
company wishes to place greater emphasis on profit.
PARTICIPATION ELIGIBILITY:
Participants eligible for this plan are exempt, non-sales employees as
approved by management.
PARTICIPATION LEVELS:
The bonus potential of participants in this plan is determined on an
individual basis.
MAXIMUM BONUS POTENTIAL:
Participants in this plan may earn up to 120% of their annual target
bonus if the profit and revenue growth results of their measurement unit
exceed the profit and sales goals established.
MEASUREMENT UNIT(S):
The measurement unit for each participant in this plan must be
designated. The measurement unit for a participant may be any
organizational unit with an independent AIP, or any combination of such
units. The unit(s) used as the measurement for an individual participant
will be determined by management on the basis for the individual's sphere of
influence and contribution.
BONUS PAYMENTS:
Up to 20% of the annual target bonus opportunity will be advanced
quarterly based on results for each of the quarters. The remaining 20%
will be based on total year results. Payments are made quarterly
approximately six weeks following the end of the first three quarters.
The final year-end payment is made following the formal audit
certification for the year. Employees must be actively employed on the
last day of a quarter to qualify for the bonus calculated for that time
frame.
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BONUS MEASUREMENT:
Eighty percent (80%) of the plan is based on profit-after-tax and
twenty percent (20%) on revenue growth. If the maximum quarterly bonus
opportunity (i.e. 20% of annual target bonus) is not achieved in any of the
first three quarters, the deficiency can be caught up in subsequent
quarters based on a year-to-date calculation, provided the subsequent
quarter results are one hundred percent (100%) or greater of the bonus
measurement criteria. This plan provides a provision to earn in excess of
the target annual bonus for exceeding the final year-end plan. This
provision does not apply to quarterly calculations.
In order to earn a bonus under the revenue growth measurement a minimum
of 75% of the previous year's revenues must be attained. A minimum of 70%
of AIP profit after tax must be achieved for a bonus payment under the
profit measurement.
Revenue Growth Measurement Profit-After-Tax Measurement
----------------------------------- -----------------------------------
% of Previous Year's % of Bonus % of AIP % of
Revenue Attained Earned Attained Bonus Earned
---------------- --------- ------- ------------
Under 75 -0- Under 70 -0-
75 20 70 40
80 30 75 55
85 40 80 70
90 75 85 80
95 85 90 85
100 90 95 95
110 105 100 100
120 120 105 105
Over 120 120 110 110
120 120
Over 120 120
Prorations will apply for attainment between the defined levels. The
payout formula for executives may differ from the above outline, but may
not exceed the percentages defined.
SPECIAL PROVISIONS:
New Hires: A participant's initial participation will be prorated
according to the date of hire or addition to the plan. Employees who begin
participation prior to or on the 15th of the month will be bonus eligible
as of the first of the month in which they become a participant. Employees
who begin participation on or after the 16th of the month will be eligible
as of the first of the following month.
Terminations: Employees must be actively employed on the last day of a
quarter to qualify for the bonus calculated for that time frame.
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Retirement or Death: In the event that an employee retires or dies
during the year, the employee will be eligible for prorated bonus payments
at the end of the last quarter worked and at the end of the fiscal year.
Leaves of Absence: Employees who go on leave of absence will not be
eligible for bonus beginning the first day of the month following their
last day of active employment. Employees returning from leave of absence
will begin eligibility on the first day of the month in which they return
to work, IF they return on or before the 15th of the month. If an
employee returns on the 16th or later, bonus eligibility will be reinstated
on the first day of the month following the return.
Promotions: In the event participation in this plan is affected by a
promotion, prorations will apply. Prorations will be based on the same
criteria as new hires.
Demotions/Transfer: In the event a participant is demoted or
transferred to a position not eligible to participate in this plan,
participation for the quarter in which the demotion/transfer takes place
will be prorated, provided the employee is still actively employed on the
last day of the quarter. Prorations will use the same criteria as new
hires to determine eligibility for the month of the position change. The
twenty percent of the annual bonus based on total year results will be
prorated under this same criteria and the number of months worked during
the fiscal year. If a participant in the plan is demoted or transferred to
a position qualilfying to participate in the plan at a lesser bonus level,
participation in the plan will continue for the year with appropriate
prorations based on the same criteria as new hires.
The company reserves the right to adjust the total bonus payout on a
final year-to-date basis (fourth quarter and final year-end payout), if the
actual quarterly bonus payout computation exceeds the total year bonus
payout computation by more than 10%.
BONUS PERIOD:
This is a fiscal year plan. Each fiscal year (July 1 to June 30) is an
independent plan year. Carryovers from one fiscal year to another are not
permitted.
ADMINISTRATION:
Participation in this plan is at the discretion of Lanier Worldwide,
Inc. All interpretations and exceptions to the plan are reserved for
senior management of the company.
REVISIONS:
This plan may be modified, replaced or canceled at any time as deemed
appropriate by Lanier Worldwide management.
LIMITATION:
Participants in this plan may not participate in any other annual
incentive plan.
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