Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CORE MOLDING TECHNOLOGIES INC | cmt-20201203.htm |
010-9134-2706/1
1
Core Molding Technologies, Inc.
Salaried Employee Bonus Plan
Purpose
This
Core Molding Technologies, Inc. Salaried Employee Bonus Plan (“
Plan
”) is designed to motivate and
compensate eligible salaried employees, in 2020 , through cash bonuses based on the achievement of business
performance objectives. The Plan is intended to be the primary vehicle for the granting of
cash bonuses
by Core
Molding Technologies, Inc. (the “
Company
”) and recognizes the 2020 requirements to continue the turnaround of
the Company, the ongoing effects on the business of COVID 19 and the Company’s new debt covenant requirements.
However, the Company may, in certain limited circumstances, grant cash bonuses outside of this program, in the sole
discretion of the Company’s Board of Directors (“
Board
”).
The annual bonuses contemplated under the Plan are subject, in part, to the achievement of specific performance goals
set previously by the Company during 2020, as described in this Plan. The Board may also consider plant performance
and individual Salaried Employee performance in its determination of annual bonuses under the Plan.
Eligibility
All full-time and part -time salaried employees who are employed by the Company prior to October 1, 2020, or who
were offered a bonus in an employment offer letter with a date after October 1, 2020, (“
Salaried
Employees
”) will
be eligible to receive an annual bonus under the Plan, unless a Salaried Employee is not actively employed on the date
of the payment of the bonus.
Salaried Employees who meet the eligibility requirements set out above but were not Salaried Employees for the full
year will be paid any annual bonus on a pro rata basis based upon the Salaried Employee’s eligible base salary earned
during the year. Salaried Employees who do not work a full Plan Year because they were out of work on an approved
leave of absence for part of the Plan Year will be eligible to receive an annual bonus on a pro rata basis based on the
actual amount of eligible base salary earned during the year as determined by the Board.
Bonus Performance Goals
Each Salaried Employee will be assigned an annual bonus target percentage for the year (“
Annual
Bonus Target
%”)
based upon the Salaried Employee’s position with the Company. The Annual Bonus Target % will be a
percentage of the Salaried Employee’s annual base salary. If the Company achieves the business performance results
established by the Board (“
Annual Goal
”), Salaried Employees will be eligible to receive an annual bonus as
determined by the Board.
Any annual bonuses paid pursuant to the Plan will vary depending upon the Salaried Employee’s level of position
with the Company and other factors determined by the Board .
2020 Plan Year
For the Company’s 2020 calendar fiscal year annual bonuses, the Company’s minimum Annual Goal is pre-bonus
Earnings Before Interest, Taxes, Depreciation and Amortization (“
EBITDA
”) of $16,700,000, target Annual Goal is
EBITDA of $20,350,000, and maximum Annual Goal is EBITDA of $24,000,000. The Annual Bonus Target % for
010-9134-2706/1
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the target Annual Goal of $20,350,000 of EBITDA for each level of Salaried Employee position for the 2020 Plan
Year is as follows:
Position
(In the event a Salaried Employee changes positions during the Plan Year, the Annual Bonus Target % will be
prorated based on the Salaried Employee’s positions during the year)
Annual
Bonus Target %
(% of base salary)
Executive
50%
Vice President
25%
Director
20%
Manager
Supervisor / Other Salary
5%
EBITDA below or above the 2020 target Annual Goal of $20,350,000 will result in the Board extrapolating the
percentages specified above with no annual bonuses being paid if EBITDA is below $16,700,000 and 120% of the
Annual Bonus Target paid if the maximum EBITDA of $24,000,000 is achieved.
The Board, in its sole discretion, will determine whether the Annual Goal has been met or has been met to a degree
warranting a higher pay -out than would otherwise be calculable under this Plan. For example, the
Board may
determine that one-time charges should be disregarded in determining a Plan Year’s EBITDA Annual Goal.
Payment of Annual Bonuses; Miscellaneous Plan Provisions
Annual bonuses approved by the Board are targeted to be paid before March 15, 2021.
The establishment of the Plan, any provisions of the Plan, and/or any action of the Board with respect to the Plan, does
not confer upon any Salaried Employee the right to continued employment with the Company. The Company reserves
the right to dismiss any Salaried Employee at any time, with or without prior notice, with or without cause, to the
same extent as though the Plan had not been adopted.
All annual bonus payments are subject to federal, state and local tax withholding requirements and other applicable
withholding requirements.
No Salaried Employee shall have any claim or right to any annual bonus under the Plan until it is paid by the Company,
and there is no obligation for uniformity of treatment of Salaried Employees under the Plan; and, therefore, annual
bonuses need not be the same with respect to each Salaried Employee. Any annual bonus payment shall be a one-time
annual bonus payment, and shall not constitute a promise of future annual bonus payments. Any annual bonus
payments shall be made out of the Company’s general assets, and no Salaried Employee shall have any right to an
annual bonus upon payment other than that of a general unsecured creditor of the Company. The resolution of any
questions or claims with respect to payments and entitlements of and to annual bonuses pursuant to the provisions of
this Plan shall be determined by the Board, in its sole discretion, and all such determinations shall be final and
conclusive.
This Plan may be terminated by the Board, at its sole discretion, at any time and amended by the Board, at its sole
discretion, from time to time without the approval of any Salaried Employee.
* * *