BALLANTYNE OF OMAHA, INC.
PERFORMANCE BONUS COMPENSATION PLAN
I. INTRODUCTION .
Ballantyne of Omaha, Inc.’s Executive Officers Performance Bonus Compensation Plan (“Plan”) is
designed to incentivize Ballantyne Executive Officers to maximize shareholder value, and allow the Executive
Officers to share in the increased value through a bonus pool. The Plan is designed to reward the Company’s
Executive Officers with a larger bonus pool as the Company’s return on equity increases.
II. COMPENSATION PLAN .
Return on Equity Thresholds.
*2.25% allocation is for 2004 only
** 2005 and 2006 percentages are set forth for illustrative purposes only, and are subject to change.
III. ALLOCATION OF BONUS POOLS TO INDIVIDUAL PARTICIPANTS .
1. General Allocation . The amount of the bonus pool to be awarded will be based on the
outcome of the financial goals, achievement of specific goals and objectives by the Executive Officers. The bonus
pool will be allocated to the Executive Officers based on 70% salary and 30% on achievement of specific goals
and objectives. Any Executive Officer who is determined to have achieved all of their goals and objectives for
the applicable year shall receive their pro rata share of the 30% based on their salary in relation to the total of all
of the Executive Officers salaries. An Executive Officer may receive less than their pro rata share if it is
determined that they have not met all of their goals and objectives. Any portion not awarded to any Executive
Officer will be returned to the Company.
Pre-Bonus, Pretax Income to Book Value
11.5% to 13%