December 6, 2000
Mr. Christopher C. Zorn 32 Planting Field Road Medfield, MA 02052
Dear Chris:
I am pleased to offer you the position of executive vice president of sales for Bio-Plexus, Inc. Your employment will begin on a mutually agreed upon date. In this role, you will report directly to me and will be based at our corporate office in Vernon, Connecticut. The basic terms and conditions of your employment are summarized below:
Position Executive Vice President of Sales for Bio-Plexus, Inc
Base Salary $135,000 annually, payable in accordance with the
company's standard payroll practices. You will be eligible
for an annual performance review and a standard merit
increase if recommended and approved by the Compensation
Committee.
Retention Bonuses Retention and stay bonuses will be paid as follows:
- A retention bonus of $16,000 for year 2001 paid
on a monthly basis. This $16,000 bonus will
continue through December 31, 2002, assuming
your performance is at expected levels.
- A $10,000 stay bonus to be paid on July 1, 2001.
Retention and stay bonuses pay will be deducted from any
performance bonus payout below.
Performance Bonus Up to 100% of base salary for achievement of individual
and corporate goals. Your individual performance goals and
objectives will be in place no later than January 15,
2001. A bonus schedule as follows and based on net product
sales to budget as established by the Board for Directors:
88-90% $20,000
91-93% $25,000
94-96% $30,000 2 Mr. Christopher C. Zorn December 6, 2000 Page 2
97-99% $40,000
100% $67,500
101-103% $72,500
104-107% $80,000
108-110% $90,000
111-115% $105,000
116-119% $120,000
120+% $135,000
- If budgeted profit goals are achieved, you are
eligible for full payment for performance to sales
objectives up to 110% of budgeted net product sales.
Under a circumstance whereby revenue of net product
sales goals are achieved but corporate profitability
to budget is not, you will be guaranteed a bonus
payout of 80% for achievement of sales targets. For
example if sales budget is achieved you would be
eligible for a bonus of $67,500; however, if budget
profitability goals are not achieved, you will
receive 80% or $54,000.
- Payments for net sales above 110% of budget will be
paid according to the following:
- Achievement of budgeted profit goals but less
than targeted profit goals above budget.
o Full payment or 100% of the increment
up to 110% and 80% payment of the
increment above 110%. Example: if sales
are 116% of budget, payment would be
$114,000 (i.e. ...
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