EXHIBIT 10.3
KEITH BLACHOWIAK
CIO & SVP OF INFORMATION TECHNOLOGY
2007 PAY PLAN
Salary $235,000 (1)
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Signing Bonus 5,000 restricted shares upon signing (subject to
- ------------- four year vesting)
5,000 restricted shares upon 1st anniversary (2)
5,000 restricted shares upon 2nd anniversary (2)
T&E Reimbursement Apartment rental & reimbursement of reasonable and
- ----------------- customary expenses
Communications Allowance $250 per month
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Disability one year's base salary
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Life Insurance $500,000
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Quarterly Bonus based on Total Company NPBT
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>xxx% = $15,000
>xxx% = $20,000
>xxx% = $25,000
Year End Bonus based on IT Results
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No significant deficiencies = $10,000
Successful migration to Microsoft infrastructure = $10,000
Implementation of reporting capabilities = $10,000
xx% improvement in IT efficiency = $10,000 (4)
National /Centralized Dispatch = $15,000 (3)
Off-shore / 7x24 capabilities = $15,000 (7)
Profitability by LOB = $15,000 (5)
Profitability by Customer = $15,000 (6)
Year End Total Company Bonus
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Minimum of xxx% NPBT required
> xxx million in sales = $25,000 + 20,000 options (2)
> xxx million in sales = $50,000 + 30,000 options (2)
> xxx million in sales = $75,000 + 40,000 options (2)
(1) If terminated without cause then employee is entitled to 9 months severance
and all stock option and restricted share grants immediately vest. If
second bar of year end Company bonus is achieved the base salary will be
uplifted to $250,000 in fiscal 2008. If second bar of year end Company
bonus is not achieved then base salary will be negotiated, as appropriate.
(2) Options are subject to a three year vesting schedule. 50% of cash
consideration will vest over a three year period. The Company reserves the
right to issue restricted shares or some other form of compensation in lieu
of issuing stock options. All restricted share grants are subject to a four
(4) year vesting.
(3) Goals & Objectives to be discussed and agreed upon
(4) To be measured by number of CA tickets processed on a weekly average over
the course of the year.
(5) Reports, whether paper or electronic, that show actual revenue and
costs-of-goods-sold by customer segment. Customer segment is defined as
Enterprise, SMB, Public Sector and Alliance. The report shall also show
gross profit and margin percentage for each customer segment and tie
directly to the corporate P&L statement. The report may further be
segmented under LOB by revenue category, to be defined as Product and
Services. These categories may be further defined by sub-category as the
data permits.
(6) Reports, whether paper or electronic, that show actual revenue and
costs-of-goods-sold by customer for the top 100 customers. The report shall
also show gross profit and margin percentage for each customer. The report
may further be segmented under LOB by revenue category, to be defined as
Product and Services. These categories may be further defined by
sub-category as the data permits.
(7) Goals & Objectives to be discussed and agreed upon. If for valid business
reason an off-shore strategy is not pursued, bonus objective amount shall
be equally distributed over other objectives.