This excerpt taken from the HAS 10-Q filed May 2, 2008.
*Some countries outside of the US will have a separate performance and payout scale established annually.
Once the business unit has calculated the formula incentive awards, the recommended award pools by business unit are developed. These recommended pools will equal the aggregate of the formula incentive awards including the budgeted individual performance component for all eligible employees. These pools are subject to approval by the CEO and Compensation Committee of the Board of Directors.
The formula incentive award is a first pass calculation of an award based on actual performance achieved by the overall Company, business unit, and the estimated individual performance percentage.
Business unit incentive pool dollars are derived from the aggregated of formula awards within a business unit.
The recommended awards for participants of a specific business unit are submitted to the CEO and Compensation Committee for approval. These recommended awards could be modified from the formula award based on managements discretion.
The CEO of the Company and the Compensation Committee of the Board of Directors shall review, modify, and approve all recommended awards for senior management as well as the total formula pool dollars allotted for non-senior management, in their sole discretion. In addition, any awards recommended in excess of one times a participants base salary must be reviewed and approved by the Chief Executive Officer & President.
Removals, Transfers, Terminations, Promotions and Hiring Eligibility
Participants whose employment with the Company is terminated because of retirement or disability:
Participants whose employment with the Company is terminated because
Participants who resign for any reason after the close of the plan year but prior to the distribution of awards for such year will not receive an incentive award.
Participants who are discharged from the employ of the Company or any
of its subsidiaries for cause or for any offense involving moral turpitude or
an offense involving breach of the fiduciary duty owed by the individual to
the Company will not be entitled to an award for any plan year.
Participants who are discharged from the employ of the Company or any of its subsidiaries due to job elimination:
Participants under statutory or contractual notice:
Participants transferred during the plan year from one division of the Company to another will be eligible to receive an award (subject to achievement of the requisite organizational and individual performance) through the division in which he or she is employed at the end of the plan year, but the award amount may be based on the performance made in each division in which the individual was employed during the year.
Employees hired during the plan year must be actively employed by July 1st of the plan year to participate in the bonus for that plan year. Awards will be made based upon the employee's earned salary during the period of their employment with the Company during the plan year.
The eligibility for an award and plan status of employees who remain employed with the Company during the plan year but whose change in employment status through promotion or reclassification affects their level of participation:
The eligibility for an award and plan status of employees who remain employed with the Company during the plan year but whose change in employment status through demotion affects their level of participation will be determined by the CEO in the CEOs sole discretion.
Administration of the Plan
Amendments to the Plan (Contingency Clause)
The Chief Executive Officer and the Compensation Committee of the Board of Directors reserve the right to interpret, amend, modify, or terminate the Plan in accordance with changing conditions at any time in their sole discretion.
Incentive Award Distribution
Incentive awards, when payable, shall be paid as near to the close of the companys fiscal year as may be feasible. Participants in the Plan must be employed at the time of award distribution in order to receive bonus payments, except as provided in Section 5.0.
No individual has the rights to receive an award until it has been approved and distributed in accordance with the provisions of this plan.
Non-Assignment of Awards
Participants eligible to receive incentive awards shall not have any right to pledge, assign, or otherwise dispose of any unpaid or projected awards.
Deferral of Awards
Participants eligible to defer incentive awards through the Deferred Compensation Program (DCP) may elect to do so during the annual DCP enrollment.