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Exhibit 10.18
DESCRIPTION OF
THE
SIRONA DENTAL SYSTEMS, INC.
EVA PLAN
- 1.
- Purpose . The purpose of the EVA Plan (the
" Plan ") is to
promote decisions by officers and management of the company toward
sustainable increases in the economic value added (the "
EVA ") of the company.
The Plan also provides an opportunity for employees covered under
collective bargaining agreements or individual employment
agreements to participate in and be rewarded for achievement of
company EVA goals and business segment EVA goals.
- 2.
- Administration . The Plan is administered by the
company's management.
- 3.
- Participation . The Plan covers most employees in
Germany, Austria and Charlotte, North Carolina, including certain
executive officers.
- 4.
- Type of Award . The Plan provides for cash bonus
awards, earned based upon year over year improvements in company,
business segment and sales region EVA and is payable following
completion of the company's audit for the applicable fiscal year.
In some circumstances, a non-discretionary portion of an earned
bonus award is deferred to the next fiscal year (see Bonus Bank,
described below).
- 5.
- EVA Metric . The EVA metric is calculated at the
end of each fiscal year by calculating earnings before interest
expenses and taxes ("EBIT"), which is then adjusted to add back
research and development, restructuring and extraordinary costs
determined by the company's management, with Capital Costs (as
defined) subtracted from the adjusted result. Capital Costs are
calculated by multiplying working capital at the end of the fiscal
year by an average cost of capital, currently 12%.
- EVA = EBIT result (subject to adjustments)
– Capital Costs.
- The EVA metric is calculated both at the company
level and at the following EVA centers: (i) Treatment centers,
(ii)&nb
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