LETTER OF UNDERSTANDING NO. 38
PROFIT SHARING
L38.01 Profit sharing would be provided based upon the following structure:
1. Adjusted pre-tax profits (excl F/X and other extraordinary gains
and losses) would be tracked from the later of (i) emergence
from CCAA or (ii) January 1, 2004 (the “Adjusted Pretax
Profits”).
2. Profits sharing will be:
7.5% of Adjusted Pre-tax Profits at/or below 7% of revenues
25% of all Adjusted Pre-tax Profits over 7% of revenues
3. Calculated annually, paid by June 30th of the following year.
4. Allocation based upon each employee’s taxable income.