Unassociated Document


    Exhibit
      10.16

    


    2007
      Senior Management Bonus Plan Summary

    


    The
      Ironclad Performance Wear Corporation (the “Company”) 2007 Senior
      Management Bonus Plan (the “Bonus Plan”) was
      adopted to encourage and award senior management for: (i) attaining Company-wide
      financial goals; (ii) improving the financial and operational health of the
      Company; and (iii) meeting or exceeding individually defined goals and
      objectives for each executive officer and eligible manager. In order to
      participate in the Bonus Plan, participants must have been employed by the
      Company on a full time basis before October 1, 2007. The Compensation Committee
      of the Board (the “Committee”) administers the Bonus Plan.

     

    In
      order
      for the Bonus Plan to be funded, the Company must achieve at least 95% of its
      budgeted net revenues and net income (loss) before taxes for 2007, subtracting
      any benefit from earnings from prior periods. The annual cash bonuses, if any,
      for all senior management, including executive officers, are calculated in
      accordance with a formula that takes into account base salary and accomplishment
      of specified corporate, departmental and individual objectives. Specifically,
      individual bonuses will be calculated based upon two methodologies. A
“non-discretionary” portion accounting for 60% of the participant’s target bonus
      percentage will be awarded based upon the attainment of the individual and
      departmental objectives previously set for such participant. The remaining
      40%
      of the participant’s target bonus percentage, along with any un-awarded part of
      the “non-discretionary” portion (i.e. funds not awarded to the entire population
      due to missed individual and departmental objectives.) will be put into the
      pool
      to create a “discretionary portion” to reward individuals for their contribution
      to the Company’s overall success and for their significant contributions in
      support of other members of the senior management team in achieving their
      respective individual and departmental goals.

     

    The
      objectives include both measurable and quantifiable objectives and “soft”
objectives. The objectives were determined based upon input from the
      participant, his or her manager and the Company’s Chief Executive Officer and
      were formally approved by the Committee and the Board. In the case of the
      Company’s Chief Executive Officer, the objectives were determined by the
      Committee and the Board.

     

    The
      Company expects that the cash bonuses payable for fiscal year 2007, if any,
      will
      be calculated in the manner set forth above and will vary depending on the
      extent to which actual performance meets, exceeds, or falls short of the
      specified corporate goals and attainment of individual and departmental goals.
      In addition, the Committee retains the discretion to allocate the Bonus Plan’s
      pool, in whole and in part, to those members of the senior management team
      and
      in those proportions, that it determines is in the best interest of the
      Company.