Is this the incentive plan you were referring to?
Management Incentive Earnings Plan
Under a management incentive earnings plan ("MIEP"), which is effective for five years beginning April 1, 1996 and ending March 31, 2001, officers and key employees are eligible to receive warrants to purchase Common Stock, if certain earnings criteria are met. Specifically, warrants would have been issued if the Company had generated after-tax per share profits of at least $0.06 by March 31, 1997. That threshold target is graduated annually in $0.06 per share increments. Therefore, as of March 31, 2001, in order for any officer or key employee to be eligible to receive warrants under the MIEP, the Company must achieve after-tax per share profits of at least $0.30. The warrant exercise price is $0.50 per share of Common Stock. If, at the end of any year under the MIEP, the criteria for issuance of the warrants is not achieved, the number of warrants available for issuance under the MIEP is reduced by 20%. The MIEP initially authorized the issuance of warrants exercisable for a maximum of 500,000 shares of Common Stock per participant, with a corresponding maximum on the number of warrants that may be issued under the MIEP of 1,500,000. As of the end of the first year of the MIEP, which ended on March 31, 1997, none of the participants was eligible to receive any warrants. As a result, the maximum number of warrants that can be issued under the plan was reduced to 1,200,000. When issued, the warrants will be exercisable for a period of five years.
Boy, $.06 increments. That means $.18/share to get any bonus for the current year. Let's all hope they make it!
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