LOU#38 – Profit Sharing

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.