PROFIT SHARING
ELIGIBILITY. All active non-probationary exempt staff ("NPES") of Experiencing Imagination, Inc. (“the Company”) shall be eligible for this PROFIT SHARING ("PS") plan. NPES shall be those who meet ALL of the following conditions: (1) have worked for the Company more than 40-hours per week for 3 or more months, (2) who are not paid on an hourly basis and (3) do not receive an additional wage or compensation for extra hours worked.
PROFIT DETERMINATION. PS will be determined at the end of each quarter using standard accounting practices and be net of all costs, including but not limited to depreciation, write-offs, rents, wages, benefits and expenses. For the purpose of this plan, profit shall be determined before corporate income taxes.
SHARED PROFIT. Twenty-five percent (25%) of the profit determined shall be shared through this plan (“SHARED PROFIT”) and payments shall be considered income to the recipients.
GUARANTEED PROFIT SHARING. Certain NPES may be given annual Guaranteed Profit Sharing (“GPS”) as part of their compensation. GPS paid shall be deducted from any Profit Sharing Amount earned in a calendar year. If profit sharing does not equal GPS, the overage shall be expensed by the Company and the payment made remain the individual’s.
PROFIT SHARE FORMULA. An individual’s share shall be determined by the following formula:
ELECTED BENEFITS. Should a majority of EMPLOYEES elect certain benefits that require full participation (such as health or life insurance, retirement, benefit management costs, special event travel and similar) the costs of these benefits will be first deducted from the PS funds. If the costs of such benefits ever exceed the available PS funds, those additional costs will be shared among those receiving them proportionately to the benefit received. COMP TIME PURCHASE. COMP-TIME not needed for planned OFF-SERVICE WEEKS may be purchased from PS funds at an EMPLOYEE’s daily wage rate. This shall be completed before other PS FUND DIVISION, except for ELECTED BENEFITS.
OPTIONS. NPES of Director level or higher may optionally elect on an annual basis to exchange participation in this plan for options on positions of ownership in Company.
PAY DATES. Profit sharing shall be paid in equal installments for each pay period over the following quarter. The first pay date of the quarter is presently the 20th day of the 1st month of the quarter.
NO VESTING. An individual must active staff to receive profit sharing. Any individual not continually meeting the requirements of active non-probationary staff shall not be eligible for profit sharing payments regardless of past eligibility. Modification, replacement or discontinuation of this plan shall at the Company's sole discretion immediately eliminate any and all payments. Profit sharing shall depend exclusively on the current profitability of the Company and payment in one quarter shall not determine payment in another.
CONTINUATION. This profit sharing plan may be modified, replaced or discontinued at any time without recourse.
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