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1999 - 2000 SPECIAL INCENTIVE/BONUS PLANS
Garry Saunders
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The two-part incentive/bonus plan approved by the Board of Directors is
effective for 1999.
ANNUAL INCENTIVE PLAN
The annual incentive portion of the plan is based 50% on PEI financial
performance as defined for the Management Incentive Plan and 50% on Casino
Gaming Operating Income with a maximum opportunity of $100,000. This
portion of the plan is reviewed and subject to change each year consistent
with the incentive plan for all senior managers. Payouts under this plan
will be calculated and paid as soon after the plan year-end as the
financial objectives can be measured and the outside audit is completed.
SPECIAL BONUS PLAN
The Special Bonus Plan is effective for calendar years 1999 and 2000.
Payouts will be made annually at the same time as the annual incentive
plan and will be based on the achievement of the performance measures
defined on the matrix for that calendar year.
The award for the opening of the property is payable if the property opens
during the term of the contract period, i.e., on or before 12/31/2000.
The profit participation award is a one-time payment based on operating
and non-operating income for each project. The award is payable if the
project reaches its expected profit level within the first twelve months
of operation and is based on a percentage of Playboy's portion of the
total profits. The project must be completed during the term of the
contract period.
ELIGIBILITY
The participant must be an active employee (i.e., not on a Leave of
Absence, either medical or personal, not on Special Compensation or Salary
Continuation) on the last day of the calendar year to be eligible for the
bonus earned for that year.
If the participant is terminated for cause, performance or resigns, that
participant will not be eligible for any bonus earned in the calendar year
the termination or resignation took place.
Playboy reserves the right to change, modify or terminate this plan, with or
without notice, in whole or in part, at any time.
PLAYBOY ENTERPRISES, INC.
SPECIAL BONUS PLAN
CALENDAR YEARS 1999 AND 2000
GARRY SAUNDERS
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PROJECTED PLAYBOY PROFIT
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$1M<$2M $2M<$3M $3M<$5M $5M<$10M
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(Assume $2M Profit) (Assume $3M Profit) (Assume $4M Profit) (Assume $8M Profit)
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Bonus $60,000 $80,000 $100,000 $200,000
Signed Contract
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Bonus $20,000 $40,000 $60,000 $120,000
Opening of Property (prior to
12/31/2000)
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Total Bonus $80,000 $120,000 $160,000 $320,000
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Profit Participation=1% of profit if $20,000 $30,000 $40,000 $80,000
expected profit achieved within first
12 months of operation.
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Total Payout: $100,000 $150,000 $200,000 $400,000
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PROJECTED PLAYBOY PROFIT
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$10M and over
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(Assume $12M Profit)
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Bonus $300,000
Signed Contract
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Bonus $170,000
Opening of Property (prior to
12/31/2000)
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Total Bonus $470,000
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Profit Participation=1% of profit if $130,000
expected profit achieved within first
12 months of operation.
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Total Payout: $600,000
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All bonuses based on Playboy's portion of the profit levels (projected and
achieved). Profit participation based on operating and non-operating income.