Special Incentive Compensation Plan Memorandum - Playboy Enterprises Inc. and Herb Laney
INTEROFFICE CORRESPONDENCE
PLAYBOY ENTERPRISES, INC.
DATE: MAY 1, 1996
---------------------------------------------------
TO: HERB LANEY
----------------------------------------------------
FROM: CHRISTIE HEFNER
--------------------------------------------------
SUBJECT: SPECIAL INCENTIVE COMPENSATION PLAN
------------------------------------------------
I'M VERY PLEASED TO EXTEND YOUR SPECIAL INCENTIVE COMPENSATION PLAN FOR
AN ADDITIONAL THREE YEARS.
UNDER THIS EXTENSION, AND IN ADDITION TO YOUR PARTICIPATION IN THE
INCENTIVE COMPENSATION PLAN FOR SENIOR EXECUTIVES, THE COMPANY WILL PAY
YOU 5% ON ALL PRE-TAX OPERATING PROFITS EARNED BY THE CATALOG GROUP IN
EXCESS OF THE FISCAL 1996 OPERATING PROFITS OF THE GROUP BASED ON
CUMULATIVE PROFITS ACHIEVED OVER A THREE YEAR PERIOD FROM FISCAL YEAR
1997 THROUGH FISCAL YEAR 1999. (BY WAY OF EXAMPLE, IF FISCAL YEAR 1996
OPERATING PROFITS FOR THE GROUP ARE $5,521,000, YOU WOULD BE ENTITLED TO
5% OF THE CUMULATIVE PROFITS IN EXCESS OF $16,563,000.) YOUR PAYOUT IS
CONDITIONED UPON YOUR BEING EMPLOYED BY PEI THROUGH FISCAL 1999.