Exhibit 10.11
BALDWIN TECHNOLOGY COMPANY, INC.
MANAGEMENT INCENTIVE COMPENSATION PLAN
AS APPROVED AUGUST 2008
The purpose of the
Baldwin Technology Company, Inc. (the “Company” or
“Baldwin”) Management Incentive Compensation Plan
(“MICP” or the “Plan”) is to provide a
financial incentive (bonus) to key Baldwin employees around the
world to work together for the common good of the Company as the
Company pursues its strategic business initiatives.
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II
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MICP Criteria and
Implementation
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A. The MICP is
designed to encourage participants to work together and cooperate
with one another for the overall benefit of Baldwin. It is also
designed to recognize, motivate, and reward participants for their
efforts and contributions on a regional/business unit, as well as
on a consolidated total company basis.
B. There are seven
bonus percentage classifications ranging from 7.5% to 50%. A
participant is eligible to participate in the MICP at a target
bonus percentage of his/her base salary in effect on
July 1 st of any given fiscal year. This
percentage, when multiplied by the participant’s base salary,
is his/her 100% bonus opportunity.
C. The fiscal year
AOP MICP objectives will be the fiscal year AOP year-end Profit
Before Tax (PBT), fiscal year AOP average Days Sales Outstanding
(DSO) and fiscal year average Days of Inventory (DOI)
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, and payment of the
MICP will be based on achieving those objectives.
D. One-half (50%)
of each participant’s 100% target bonus opportunity will be
based on total company achievement of consolidated fiscal year AOP
MICP objectives, and one-half (50%) of each participant’s
100% target bonus opportunity will be based on the
participant’s region/business unit achievement of its fiscal
year AOP MICP objectives. The target bonus opportunity for the
Baldwin Leadership Team (BLT) and all corporate personnel will only
be based on consolidated total company performance.
E. Performance
against each MICP objective for both consolidated total company and
the regional/business units will be measured on a sliding scale
that equates 80% achievement of each fiscal year AOP MICP objective
to a zero percent (0%) bonus and 100% achievement of each fiscal
year AOP MICP objective to a one-hundred percent (100%) bonus. In
other words, there will not be any bonus for achieving 80% or less
of a fiscal year AOP MICP objective, and there will be a
one-hundred percent (100%) bonus opportunity for achieving 100% of
a fiscal year AOP MICP objective. The sliding scale means that each
one percent (1%) achievement of a bonus objective above 80% earns
5% of the bonus. For example, ninety percent (90%) achievement of
each fiscal year AOP MICP target equates to a fifty percent (50%)
bonus opportunity. Note that in all cases the expense of the bonus
to be paid must be included in operating expenses in determining
whether or not the objective has been achieved.
F. A bonus may be
earned in addition to the target bonus opportunity by exceeding the
objectives specified in C), above. To the extent that
consolidated company or the region/business unit results exceed the
fiscal year AOP year-end Profit Before Tax MICP objectives, fiscal
year AOP average Days Sales Outstanding MICP objectives and fiscal
year AOP average Days of Inventory MICP objectives by 0% to 20%,
the 100% bonus opportunity can be increased on a sliding scale by
an additional zero percent (0%) to fifty percent (50%)
