Exhibit 10.1
Midas International
Corporation
Executive Incentive Compensation
Plan (EICP)
(2009)
Plan Guideline
To provide a method of recognizing,
motivating, and rewarding performance of key members of Midas
Management for their performance and contribution to stated
business objectives.
The Vice President of Human
Resources will administer the plan, with review of all plan
participants by the CEO and the Board of Directors Compensation
Committee.
The program is effective
January 1, 2009.
It is anticipated that the program
will continue, however, the program is subject to change and may be
terminated at any time.
Eligibility is based on an
individual’s overall responsibility and contribution to
company objectives. Participation must further be approved
annually. Participation in the plan will exclude any employees who
are eligible for any other non-stock-based annual Incentive
Plan.
No award will be made if a
participant’s employment is terminated for cause or if
participant voluntarily terminates his or her employment at any
time prior to the date the incentive is paid out.
In the case of a new hire, transfer,
disability, death, or retirement, the award will be pro-rated based
upon that portion of the plan year in which the participant was
actively employed with Midas International.
First-time promotion into the plan
will also be pro-rated. Promotions from one level to another will
be pro-rated based on length of the time in each
position.
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Total company and individual
achievement will be measured against goals and objectives that have
been established.
A participant’s target award
will be weighed in accordance with the following:
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A)
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50% - total
company performance versus operating income target
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B)
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30% -
individual performance versus individual objectives
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C)
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20% -
comparable shop retail sales performance
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A)
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Total
Company Performance – 50%
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Performance below or above stated
target will be expressed as a percentage which will then be applied
as a factor in determining each respective portion of the payout
award.
In order for a payout to occur on
the total company performance, an achievement of greater than 80%
versus target must be obtained.
Achievement in excess of 100% of
total company operating income target will result in an enhancement
to the calculated payout. For each 1% achievement over the
operating income target, an additional 2% will be added to the
operating income objective payout.
Achievement of 80%-99% of the
operating income target will result in a reduced calculated payout.
For each 1% achievement below the operating income target, a 2%
reduction will occur in the operating income payout.
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B)
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Individual
Performance – 30%
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Payout for this objective is
determined by the level at which an individual is able to achieve
his/her stated personal objectives as reviewed and agreed upon by
their manager. You can overachieve up to 150%.
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C)
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Comparable
Shop Retail Sales Performance – 20%
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Target is 2.0%. Pe