Exhibit 10.8 TALX CORPORATION ------------------------------------------------- ------------------------------- FY05 INCENTIVE BONUS PLAN AGREEMENT ----------- --------------------------------------------------------------------- EFFECTIVE 04/01/04 --...
Exhibit 10.8
TALX CORPORATION
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FY05 INCENTIVE BONUS PLAN AGREEMENT
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EFFECTIVE 04/01/04 -- 03/31/05
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Position: Annual Base Salary as of 04/01/04:
Hire Date: FY05 Incentive Bonus Plan Eligibility Date:
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BONUS TYPE RATE CRITERIA BONUS PAID
---------- ---- -------- ----------
SALES BONUS FOR [ ] (1) $[ ] (See Sales Plan) Bonus will be paid at
per the normal payroll
quarter following the
per successful completion
territory of quarterly and
year-end financial
$[ ] audit.
semi-annually
per
territory
GROSS PROFIT MARGIN (1)(2) $[ ] Bonus paid if [ ] FY05 gross margin increase attained: Bonus will be paid at
($[ ] per Q1 gross profit margin from [ ]% to [ ]% (+[ ]%) the normal payroll
quarter) Q2 gross profit margin from [ ]% to [ ]% (+[ ]%) following the
Q3 gross profit margin from [ ]% to [ ]% (+[ ]%) successful completion
Q4 gross profit margin from [ ]% to [ ]% (+[ ]%) of quarterly and
year-end financial
$[ ] (3) Annual gross profit margin from [ ]% to [ ]% (+[ ]%) audit.
REVENUE BONUS (1) $[ ] ($[ ] Bonus paid if [ ] FY05 revenue increase goals attained: Bonus paid at the
per Q1 increase of $[ ]; from $[ ] to $[ ] normal payroll
quarter) Q2 increase of $[ ]; from $[ ] to $[ ] following the
Q3 increase from Q2 revenue level to $[ ] successful completion
Q4 increase from Q2 revenue level to $[ ] of quarterly and
(Q2 revenue level will be determined after completion of year-end financial
09/30/04 quarterly audit) audit.
$[ ] Annual [ ] revenue from prior year of $[ ]; to $[ ] for
annually FY05 ($[ ] increase)
ANNUAL GOAL $[ ] TALX annual EPS goal for the fiscal year 2005 which will be EPS bonus will be
EARNINGS PER SHARE (EPS) (1) determined by the Board of Directors at their May 2004 paid at the normal
(April `04-- March `05) meeting. The EPS goal includes bonus accrual at 100% of payroll following the
expected payout but excludes effects of acquisitions, if any. successful completion
of the year-end
financial audit.
ESTIMATED TOTAL BONUS POTENTIAL FOR FY05: $[ ]
(1) THE GRADUATED SCALE BELOW SHOULD BE USED IN CALCULATING THE PROFIT (FOR Q1
AND Q2), QUARTERLY REVENUE, AND EARNINGS PORTION OF THE BONUS AWARD FOR THE
INCENTIVE BONUS PLAN.
% OF GOAL PAYOUT % OF GOAL PAYOUT % OF GOAL PAYOUT % OF GOAL PAYOUT % OF GOAL PAYOUT
--------- ------ --------- ------ --------- ------ --------- ------ --------- ------
125% 150% 116% 132% 106% 112% 97% 94% 88% 76%
124% 148% 114% 128% 105% 110% 96% 92% 87% 74%
123% 146% 113% 126% 104% 108% 95% 90% 86% 72%
122% 144% 112% 124% 103% 106% 94% 88% 85% 70%
121% 142% 111% 122% 102% 104% 93% 86% 84% 68%
120% 140% 110% 120% 101% 102% 92% 84% 83% 66%
119% 138% 109% 118% 100% 100% 91% 82% 82% 64%
118% 136% 108% 116% 99% 98% 90% 80% 81% 62%
117% 134% 107% 114% 98% 96% 89% 78% 80% 60%
2) THE GRADUATED SCALE BELOW SHOULD BE USED IN CALCULATING THE GROSS PROFIT
PAYOUT OF THE BONUS AWARD FOR THE INCENTIVE PLAN (FOR Q4).
GROSS GROSS GROSS GROSS GROSS
PROFIT PROFIT PROFIT PROFIT PROFIT
MARGIN PAYOUT MARGIN PAYOUT MARGIN PAYOUT MARGIN PAYOUT MARGIN PAYOUT
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
[ ]% 150% [ ]% 132% [ ]% 112% [ ]% 94% [ ]% 76%
[ ]% 148% [ ]% 128% [ ]% 110% [ ]% 92% [ ]% 74%
[ ]% 146% [ ]% 126% [ ]% 108% [ ]% 90% [ ]% 72%
[ ]% 144% [ ]% 124% [ ]% 106% [ ]% 88% [ ]% 70%
[ ]% 142% [ ]% 122% [ ]% 104% [ ]% 86% [ ]% 68%
[ ]% 140% [ ]% 120% [ ]% 102% [ ]% 84% [ ]% 66%
[ ]% 138% [ ]% 118% [ ]% 100% [ ]% 82% [ ]% 64%
[ ]% 136% [ ]% 116% [ ]% 98% [ ]% 80% [ ]% 62%
[ ]% 134% [ ]% 114% [ ]% 96% [ ]% 78% [ ]% 60%
3) THE GRADUATED SCALE BELOW SHOULD BE USED IN CALCULATING THE ANNUAL GROSS
PROFIT PAYOUT OF THE BONUS AWARD FOR THE INCENTIVE PLAN.
GROSS GROSS GROSS GROSS GROSS
PROFIT PROFIT PROFIT PROFIT PROFIT
MARGIN PAYOUT MARGIN PAYOUT MARGIN PAYOUT MARGIN PAYOUT MARGIN PAYOUT
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
[ ]% 150% [ ]% 132% [ ]% 112% [ ]% 94% [ ]% 76%
[ ]% 148% [ ]% 128% [ ]% 110% [ ]% 92% [ ]% 74%
[ ]% 146% [ ]% 126% [ ]% 108% [ ]% 90% [ ]% 72%
[ ]% 144% [ ]% 124% [ ]% 106% [ ]% 88% [ ]% 70%
[ ]% 142% [ ]% 122% [ ]% 104% [ ]% 86% [ ]% 68%
[ ]% 140% [ ]% 120% [ ]% 102% [ ]% 84% [ ]% 66%
[ ]% 138% [ ]% 118% [ ]% 100% [ ]% 82% [ ]% 64%
[ ]% 136% [ ]% 116% [ ]% 98% [ ]% 80% [ ]% 62%
[ ]% 134% [ ]% 114% [ ]% 96% [ ]% 78% [ ]% 60%
FY05 INCENTIVE BONUS PLAN AWARD PAYMENT TIMING, CALCULATION AND ELIGIBILITY WILL
BE IN ACCORDANCE WITH TALX'S FY05 INCENTIVE BONUS PLAN POLICY. THIS DOCUMENT HAS
BEEN PRODUCED BY TALX FOR THE GUIDANCE OF YOUR INCENTIVE BONUS PLAN. THIS
DOCUMENT CONTAINS A GENERAL SUMMARY OF THE COMPONENTS OF THE FY05 INCENTIVE PLAN
AND DOES NOT CONTAIN ALL FORMAL PROVISIONS. THE FY05 INCENTIVE BONUS PLAN POLICY
AND NOT THIS DOCUMENT WILL CONTROL THE ACTUAL INCENTIVE PLAN. THIS DOCUMENT DOES
NOT CONSTITUTE AN EXPRESSED OR IMPLIED CONTRACT OF EMPLOYMENT.
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SIGNATURE INDICATES THAT YOU HAVE RECEIVED AND REVIEWED YOUR FY05 INCENTIVE BONUS PLAN PROVIDED BY TALX.
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[ ] Director Human Resources
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Date Date Date
