PROTECTION ONE, INC. SENIOR MANAGEMENT SHORT-TERM INCENTIVE PLANExecutive Compensation Plan Agreement |
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Exhibit 10.9
PROTECTION ONE, INC.
SENIOR MANAGEMENT
SHORT-TERM INCENTIVE PLAN
Effective January 1, 2004
The Protection One, Inc. Senior Management Short-Term Incentive Plan (“Plan”) is intended to motivate officers and other members of senior management of the Company and certain of its designated subsidiaries to achieve the highest level of performance and to further the achievement of Protection One’s goals, objectives, and strategies. The Plan is designed to reward exceptional performance using financial incentives to supplement base compensation. Also, the Plan is intended to enhance Protection One’s ability to attract and retain talented employees. Finally, the Plan is intended to benefit Protection One in the pursuit of its goals and objectives by stimulating and motivating the participants, which will in turn enhance productivity.
1.
Definitions. As used herein, the
following words and phrases shall have the following meanings unless the
context clearly indicates otherwise:
(a)
Award: The total incentive award
made to a Participant under the terms of the Plan.
(b)
Award Criteria: The Financial and
Discretionary criteria described in Section 4, and as approved by the
Board from time to time, and as same may be amended from time to time in
accordance with the terms hereof.
(c)
Base Compensation: Annualized salary paid to
an employee, excluding overtime, bonuses, commissions, or any pay element other
than the base rate of compensation.
(d)
Board: The Board of Directors
of the Company.
(e)
CMS: Security Monitoring Services,
Inc., a Florida corporation (d/b/a Computerized Monitoring Services, Inc., or
CMS), and its successors and assigns.
(f)
CMS Senior
Management: The
individual employed by CMS who holds the title of President of CMS.
(g)
Company: Protection One, Inc., a
Delaware corporation, and its successors and assigns.
(h)
Designated
Subsidiaries: CMS,
POAMI and NMF.
(i)
Discretionary
Criteria:
Criteria which are based on financial or non-financial criteria or both,
applied in the discretion of the appropriate managerial decision-maker to
evaluate the performance of Participants, in accordance with pay grade and
management level as set forth in Section 2.
1
(j)
Executive Officers: Those individuals which
hold the following officer positions: (i) President/Chief Executive
Officer (“CEO”); (ii) any Executive Vice President
(“EVP”) of the Company or POAMI, including without limitation the
Executive Vice President and Chief Financial Officer (“CFO”), the
Executive Vice President of Field Operations, and (iii) the President of NMF.
(k)
Incentive Period: The twelve month period
measured in the final publication of the year-end consolidated Financial
Statements of the Company.
(l)
NMF: Network Multi-Family Security
Corporation, a Delaware corporation, and its successors and assigns.
(m)
NMF Senior
Management: Those
individuals employed by NMF who hold the titles of Senior Vice President, Vice
President-Finance, Director-IT or Director-Customer Service.
(n)
Officers: Those individuals employed
by the Company or POAMI which hold the following officer positions: (i) Vice
President, Treasurer and Controller, (ii) Vice President, General Counsel and
Secretary, and (iii) Senior Vice President of Customer Operations.
(o)
Participant: Each Executive Officer,
Officer and member of Senior Management, as those terms are defined herein, and
those employees who are designated for participation in the Plan by the Board
or the CEO pursuant to Section 3.
(p)
Plan: The Plan herein set forth,
and as from time to time amended.
(q)
POAMI: Protection One Alarm Monitoring,
Inc., a Delaware corporation, and its successors and assigns.
(r)
POAMI Senior
Management: Those
individuals who are either: (i) employed by POAMI in pay grades A, B or C of
the POAMI’s wage and salary administration plan, and (ii) those
individuals, employed by POAMI not in pay grades A, B or C but designated as a
Senior Manager by the CEO.
(s)
Senior Management: The POAMI Senior Management, NMF
Senior Management and CMS Senior Management.
(t) Target Award Percentage: That percentage of a Participant’s Base Compensation which the Board (or the CEO pursuant to Section 3) shall f






