LETTER OF UNDERSTANDING NO. 38
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
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.