Exhibit 10.1
C&D TECHNOLOGIES, INC.
MANAGEMENT INCENTIVE BONUS PLAN POLICY
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Date Adopted: May 23, 2000
SCOPE
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The Chief Executive Officer (CEO) and all officers in positions with direct
reporting responsibility to the CEO are eligible to participate in the subject
Management Incentive Bonus Plan for Fiscal Year 2001 (the "Plan").
ADMINISTRATIVE AND GUIDELINES
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The Plan will be administered in accordance with the following Administrative
Guidelines:
TARGET BONUS LEVELS - Each Plan Participant will have an established Target
Bonus Amount, which is expressed as a percentage of Plan Participant's Annual
Base Salary in effect on April 1st of the Plan Year (the Company's fiscal year
covered by the Plan). The actual target bonus amount is 35% for those who report
to the CEO and 50% for the CEO.
ANNUAL OBJECTIVES - Payments to Plan Participants are based on the attainment of
specific annual Corporate Financial Objective and Individual Personal
Objectives.
ANNUAL CORPORATE FINANCIAL AND INDIVIDUAL OBJECTIVES - The Board of
Directors establishes overall Corporate Financial Objectives for each
fiscal year. Typically, the Annual Corporate Financial Objectives are
measured on a diluted earnings per share basis and dollar volume of
corporate cash flow. The Company must achieve more than 85% for each
one of the Annual Corporate Financial Objectives in order for Plan
Participants to be credited toward the attainment of their personal
objectives. At the beginning of the fiscal year, each Plan
Participant's total set of annual objectives (Corporate and Individual
Objectives) and weightings will be set.
SPECIAL BONUS PAYMENTS - In addition to the bonus payments that are based on the
achievement of individual and Corporate Financial Objectives, in rare instances,
Plan Participants may also receive Special Bonus payments in recognition of
extraordinary events, special contributions or circumstances that could not have
been reasonably anticipated when the performance objectives were established.
MAXIMUM ANNUAL BONUS AWARDS - With the exception of Special Bonus Awards, the
maximum annual bonus payable to Plan Participants will be no greater than 200%
of Plan Participants' Target Bonus Amounts.
APPROVAL AUTHORITY - Bonus payment calculations and recommendations for Special
Bonuses for Plan participants must be reviewed and approved by the Compensation
Committee of the Board of Directors.
PLAN INTERPRETATION - Final authority for resolving issues of fact,
administrative procedures or Plan interpretation rests solely with the
Compensation Committee of the Company's Board of Directors.
PLAN MODIFICATIONS - The Compensation Committee of the Board of Directors
reserves the right, in its sole discretion to modify, suspend or terminate the
Plan at any time.
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