Exhibit 10.2
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
2005 - Compensation Plan
VICE PRESIDENT, CHIEF FINANCIAL OFFICER
Effective: January 1, 2005
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
2005 - Compensation Plan
VICE PRESIDENT, CHIEF FINANCIAL OFFICER
PURPOSE: To define the compensation plan for the Vice President, Chief Financial
Officer.
SCOPE: Perma-Fix Environmental Services, Inc.
POLICY: The Vice President, Chief Financial Officer Compensation Plan is
designed to retain, motivate and reward the incumbent to support and achieve the
business, operating and financial objectives of Perma-Fix Environmental
Services, Inc.
BASE SALARY: The Base Salary noted in Schedule A. is paid in equal periodic
installments per the regularly scheduled payroll.
PERFORMANCE INCENTIVE COMPENSATION: Performance Incentive Compensation is
available based on the Company's financial results noted in Schedule A. Eligible
quarterly performance incentive compensation is payable in the second pay period
of the month following each calendar year quarter and annual incentive
compensation is payable in the second pay period of the month following the
close of the company's financial books.
SEPARATION: Upon voluntary or involuntary separation from the Company the
employee will be paid the base salary due to the last day of employment. If
employment is separated prior to a regularly scheduled quarterly or annual
incentive compensation payment period as noted above, no incentive compensation
is due to the incumbent.
ACKNOWLEDGEMENT: No Base Salary or Performance Incentive Compensation of any
type will be provided until the Human Resources Department has received a signed
acknowledgement of receipt of the Compensation Plan.
INTERPRETATIONS: The Compensation Committee of the Board of Directors retains
the right to modify, change or terminate the Compensation at any time and for
any reason. It also reserves the right to determine the final interpretation of
any provision contained in the Compensation Plan. While the plan is intended to
represent all situations and circumstances some issues may not easily be
addressed. The Compensation Committee will endeavor to review all standard and
non-standard issues related to the Compensation Plan and will provide quick
interpretations that are in the best interest of the Company, its shareholders
and the incumbent.
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
2005 - Compensation Plan
SCHEDULE A.
The compensation for the below named individual as follows:
Annualized Base Pay: $182,000
Performance Incentive Compensation Target (at 100% of Plan): $ 50,000
Total Annual Target Compensation (at 100% of Plan): $232,000
The Performance Incentive Compensation is defined as a cash pay program funded
from revenue and is payable only after the Company meets a minimum threshold of
85% of its budgeted EBITDA, including Performance Incentive Compensation accrual
targets during the course of the year. When the Performance Incentive
Compensation Plan is funded, the employee is eligible to receive quarterly and
annual Incentive Compensation is based on the achievement of corporate Financial
and Non-Financial objectives noted below.
QUARTERLY INCENTIVE COMPENSATION:
Represents 40% of the Total Performance Incentive Compensation target. The total
eligible Quarterly Incentive Compensation spread over four (4) quarters for
performance at 100% of year-to-date plan is $20,000. Corporate Financial and
Non-Financial targets are cumulative from quarter to quarter with eligible
incentive pay based on the table below.
Performance Target Thresholds
(Actual versus Plan)
-------------------------------------------------------------------
90% 101% 121% 131% 141% 151%
- - - - - - 161%
100% 120% 130% 140% 150% 160% Plus
------ ------ ------ ------ ------ ------ ------
Targets (Cumulative) Target Weight Per Quarter Incentive Pay Target
-------------------- ------------- -------------------------------------------------------------------
EPS 15% $750 $900 $975 $1,050 $1,125 $1,200 $1,313
Free Cash Flow 25% $1,250 $1,500 $1,625 $1,750 $1,875 $2,000 $2,188
Financial Statements 45% $2,250 $0 $0 $0 $0 $0 $0
SEC Compliance 15% $750 $0 $0 $0 $0 $0 $0
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
2005 - Compensation Plan
o Free Cash Flow (net income plus depreciation and amortization, less
capital expenditures and the net change in working capital) in the
quarter.
o Financial Statements is the complete, accurate and timely completion
of all financial statements in the quarter.
o SEC Compliance is defined as meeting all applicable securities rules
and regulations in the quarter.
ANNUAL INCENTIVE COMPENSATION:
Represents 60% of the Total Performance Incentive Compensation target. The
corporate annual Financial targets and year-end incentive compensation at 100%
of plan is $30,000 and payable based on the table below.
Performance Target Thresholds
(Actual versus Plan)
-------------------------------------------------------------------
90% 101% 121% 131% 141% 151%
- - - - - - 161%
100% 120% 130% 140% 150% 160% Plus
------ ------ ------ ------ ------ ------ ------
Targets (Cumulative) Target Weight Per Quarter Incentive Pay Target
-------------------- ------------- -------------------------------------------------------------------
EPS 15% $4,500 $5,400 $5,850 $6,300 $6,750 $7,200 $7,875
Free Cash Flow 25% $7,500 $9,000 $9,750 $10,500 $11,250 $12,000 $13,125
Financial Statements 45% $13,500 $0 $0 $0 $0 $0 $0
SEC Compliance 15% $4,500 $0 $0 $0 $0 $0 $0
o Free Cash Flow (net income plus depreciation and amortization, less
capital expenditures and the net change in working capital) for the
fiscal year.
o Financial Statements is the complete, accurate and timely completion
of all financial statements for the fiscal year.
o SEC Compliance is defined as meeting all applicable securities rules
and regulations for the fiscal year.
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
2005 - Compensation Plan
ACKNOWLEDGMENT:
I acknowledge receipt of the aforementioned Vice President, Chief Financial
Officer 2005 - Compensation Plan. I have read and understand and accept
employment under the terms and conditions set forth therein.
- ---------------------- ----------------------
/S/ Richard Kelecy Date
- ---------------------- -----------------------
/S/ Dr. Louis Centofanti Date
FORWARD SIGNED FORM TO: Perma-Fix Environmental Services, Inc.
c/o Dr. Louis Centofanti
1940 N.W. 67th Place, Suite A
Gainesville, FL 32653