Fiscal 2005 Incentive Plan for Key Management



 Exhibit 10.47 
 2006 Incentive Plan 
 For 
 Key Management 
 The Eye Care Centers of America, Inc. 2006 Incentive Plan for Key Management
(hereafter referred to as “the company” and “the Plan”) is designated to attract, retain and reward key management associates who contribute to the achievement of Company objectives. The plan includes those participants who are
most able to influence the Company’s growth and profitability as determined by the Chief Executive Officer. 
 The plan is intended to support the
Company’s compensation philosophy, which is to provide superior direct compensation opportunities for superior financial and individual performance. 
 Objectives: 
 The specific objectives of the plan are to: 
  

	•	 	Motivate and reward key management for superior performance in achieving the Company financial goals. 

  

	•	 	Strengthen the commonality of shareholder and management interests. 

  

	•	 	Enhance the Company’s ability to acquire and retain qualified management associates. 

 Features: 
 The following is a summary of the major features of the Plan: 
 Plan Year: 
 The plan year shall be the fiscal year from
January 1, 2006 through December 30, 2006. 
 Eligibility: 
 Participation in the plan is based on approval from the Chief Executive Officer. 
 The participant should be a regular
full-time employee of the company at the time of payment. A participant who subsequently is on a leave of absence away from work for a period longer than 90 days during the plan year shall have his/her incentive prorated based upon his/her active
time in position. 
  

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 2006 Incentive Plan 
 For 
 Key Management 
 Incentive Opportunity: 
 No bonus shall be paid with respect to the fiscal year unless minimum Adjusted EBITDA, as
defined and set forth (in thousands) under Financial Objectives, is exceeded for the year. 
 Base Salary is defined as the effective pay rate as of the
fiscal year end not including commissions, bonuses, contractual guarantees, etc. 
 Participant incentive awards will be based on weighted objectives of:
(A) up to 90% on Adjusted EBITDA as defined under Financial Objectives and (B) a maximum of 10% on up to five individual performance objectives consistent with the criteria outlined under Performance Objectives. 
 Company Financial Objectives (CFO): 
 “Adjusted EBITDA”
shall mean earnings for the Company before interest expense, income tax, depreciation and amortization as determined in accordance with generally accepted accounting principles. Adjusted EBITDA thresholds referenced in this plan are for the current
business. Acquisitions not comprehended in the plan will be treated as a discretionary issue by the Compensation Committee. 
 No performance bonus shall be
paid with respect to the fiscal year unless minimum Adjusted EBITDA, as set forth below (in thousands), is exceeded for the year. The Bonus shall be 30% of Base Salary if Target Adjusted EBITDA, as set forth below (in thousands), is achieved for the
year and shall be 100% of Base Salary if superior Adjusted EBITDA, as set forth below (in thousands) is achieved or exceeded for such year. If Adjusted EBITDA achieved for the fiscal year falls between minimum Adjusted EBITDA and superior Adjusted
EBITDA, the bonus shall be such percentage of base salary between 0% and 100% calculated on a straight line basis, as corresponds to the relative achievement of Adjusted EBITDA, with 0% corresponding to minimum Adjusted EBITDA and 100% corresponding
to superior Adjusted EBITDA. 
  

							
	 	  	 COMPANY
Adjusted
EBITDA
(000)
 2006
	  	(CFO)
% of
Base
Salary	 	(PO)
	Superior	  	$73,600.00	  	90%	 	10%
	Target	  	$67,200.00	  	20%	 	10%

  

	*	Any objective under Target Adjusted EBITDA for bonus purposes will be at the discretion of the Board 

  

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 2006 Incentive Plan 
 For 
 Key Management 
 Performance Objectives (PO): 
 Each Plan year, Company performance objectives will be established by the Chief
Executive Officer. Up to five individual objectives may be set using the following criteria. 
  

	•	 	Objective must be quantitative and/or well defined. 

  

	•	 	Objective will be set and weighted by the Participant’s supervisor. 

  

	•	 	Objectives must be approved by the C.E.O. 

  

	•	 	Objectives must be submitted to Human Resources. 

  

	•	 	Final results against objectives will be determined by the Participant’s supervisor and approved by the C.E.O. 

 No performance bonus shall be paid with respect to these individual objectives unless minimum Company Adjusted EBITDA, as defined and set forth (in thousands), under
Financial Objectives is exceeded for the year. 
 The portion of bonus earned as a result of performance against individual objectives shall be
calculated as the percent of base salary earned based on Company Adjusted EBITDA times the points earned of those allocated to individual objectives times the participant’s base salary. 
 Example 1 
 Company achieves Target
Adjusted EBITDA ($67,200), which equates to a payout of 30% of base salary if business objectives are achieved. Of the 30%, business objectives equate to 10% and Company Adjusted EBITDA 20%. In this example, the manager achieved all of their
business objectives and therefore is paid a bonus on the entire 30%. 
 Example 2 
 Company achieves Target Adjusted EBITDA ($67,200), which equates to 30% of base salary, but manager does not achieve all business objectives. The manager
in this scenario achieved  1/2 of their business objectives. (Formula: 10% x 50% = 5%) Therefore this
manager would be paid 5% on their personal objectives and 20% on the company’s Adjusted EBITDA achievement. 
  

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 2006 Incentive Plan 
 For 
 Key Management 
 Example 3 
 Company meets/exceeds
Superior Adjusted EBITDA ($73,600), which equates to 100% of base salary to be paid in bonus, but manager does not achieve all business objectives. The manager in this scenario achieved 1/3 of their business objectives. (Formula: 10% x 33.3% =
3.33%) Therefore this manager would be paid 3.33% on their personal objectives and 90% on the company’s EBITDA achievement 
 Payment:

 Individual incentive awards may be paid when the Company’s performance exceeds the minimum Company Adjusted EBITDA. The incentive bonus will be
determined following the completion of the audit of the Company’s financial statements. Payment will be by check and made no later than March 15th following the end of the Plan year. 
 The Board of Directors holds the right to payout a discretionary
incentive award should the Board deem the payout appropriate. 
 Withholding: 
 The Company shall have the right to deduct any sums as required to be withheld by federal, state, or local tax laws with respect to the payment of any bonus award. There is no obligation hereunder that any Plan
Participant be advised of the existence of the tax or the amount which the Company will be required to withhold. 
 Employee New
Hire/Transfer/Promotion/Demotion: 
 If an employee is hired, transferred, promoted, or demoted into a position, with eligibility in the Plan, their
incentive will be considered effective, for purposes of the Plan, on the date determined by the Chief Executive Officer. Any incentive will be calculated on a pro-rata basis from that date. 
 If an employee is demoted to a non-eligible position during the fiscal year, he/she shall lose his/her bonus potential for the entire fiscal year. 
 Employment Termination: 
 If a Participant becomes permanently
disabled or dies during or after the Plan year, the Plan may award the Participant or his/her estate a bonus on a pro-rata basis following the year-end closing. If the Participant leaves the Company for any reason other than disability or death, the
Participant will forfeit the right to a bonus payment. The Participant must be an active employee at the time the incentive payment is made to receive payment. 
  

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 2006 Incentive Plan 
 For 
 Key Management 
 Plan Administration: 
 The C.E.O. will have the sole discretionary authority to administer the Plan in all of its
details. All actions and determinations of the C.E.O. will be final and binding upon all parties. 
 The company reserves the sole discretionary right to
modify, amend or terminate the Plan at any time, for any reason, with or without notice. If any questions arise as to the administration of the Plan, the C.E.O. will serve as the main contact person. 
 Rights of Plan Participants: 
 All payments made under this Plan will
be made from the general assets of the Company. No participant or other party will have any right to or interest in any assets of the Company except as specifically provided for in this Plan. 
 Limitation of Rights: 
 The establishment, maintenance and provisions
of the Plan will not be considered or construed: (1) as giving to any employee any right to be continued in the employment of the Company; (2) as limiting the right of the Company to discipline or discharge any of its employees;
(3) as creating any contract of employment between the Company and any employee; or (4) as conferring any legal or equitable right against the Company or any individual responsible for administering the Plan. 
 No Assignments: 
 Amounts payable under the Plan will constitute
general assets of the Company and will not be subject to any claims by any creditor of or claimant against the Participant; and any attempt to reach such amounts by any such creditor or claimant, or attempt by the Participant to confer on any such
creditor or claimant any right or interest with respect to such amounts, will be null and void. No amounts payable under the Plan will cause the Company to be liable for, or subject to, any manner of debt or liability of any Participant. 

Governing Law: 
 This Plan shall be governed by, and construed in
accordance with, the laws of the State of Texas. Any claim or dispute arising under this Plan will be adjudicated by a court of competent jurisdiction in the State of Texas. 
  

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 2006 Incentive Plan 
 For 
 Key Management 
 Severability: 
 If any of the provisions of the Plan are held to be invalid, such holdings will not in any way affect
the validity of the remainder of the Plan. 
 Written Plan Requirement: 
 No person has the authority to make any verbal statement of any kind which (1) is legally binding upon the Company and/or (2) alters the Plan documents or other documents maintained in conjunction with the
Plan. 
  

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 FY 2006 CEO Incentive Plan Payout Grid 
  

				
	EBITDA	 	Bonus %	 
	$  73,600	 	150.00	%
	$  73,500	 	149.22	%
	$  73,400	 	148.44	%
	$  73,300	 	147.66	%
	$  73,200	 	146.88	%
	$  73,100	 	146.09	%
	$  73,000	 	145.31	%
	$  72,900	 	144.53	%
	$  72,800	 	143.75	%
	$  72,700	 	142.97	%
	$  72,600	 	142.19	%
	$  72,500	 	141.41	%
	$  72,400	 	140.63	%
	$  72,300	 	139.84	%
	$  72,200	 	139.06	%
	$  72,100	 	138.28	%
	$  72,000	 	137.50	%
	$  71,900	 	136.72	%
	$  71,800	 	135.94	%
	$  71,700	 	135.16	%
	$  71,600	 	134.38	%
	$  71,500	 	133.59	%
	$  71,400	 	132.81	%
	$  71,300	 	132.03	%
	$  71,200	 	131.25	%
	$  71,100	 	130.47	%
	$  71,000	 	129.69	%
	$  70,900	 	128.91	%
	$  70,800	 	128.13	%
	$  70,700	 	127.34	%
	$  70,600	 	126.56	%
	$  70,500	 	125.78	%
	$  70,400	 	125.00	%
	$  70,300	 	124.22	%
	$  70,200	 	123.44	%
	$  70,100	 	122.66	%
	$  70,000	 	121.88	%
	$  69,900	 	121.09	%
	$  69,800	 	120.31	%
	$  69,700	 	119.53	%
	$  69,600	 	118.75	%
	$  69,500	 	117.97	%
	$  69,400	 	117.19	%
	$  69,300	 	116.41	%
	$  69,200	 	115.63	%
	$  69,100	 	114.84	%
	$  69,000	 	114.06	%
	$  68,900	 	113.28	%
	$  68,800	 	112.50	%
	$  68,700	 	111.72	%
	$  68,600	 	110.94	%
	$  68,500	 	110.16	%
	$  68,400	 	109.38	%
	$  68,300	 	108.59	%
	$  68,200	 	107.81	%
	$  68,100	 	107.03	%
	$  68,000	 	106.25	%
	$  67,900	 	105.47	%
	$  67,800	 	104.69	%
	$  67,700	 	103.91	%
	$  67,600	 	103.13	%
	$  67,500	 	102.34	%
	$  67,400	 	101.56	%
	$  67,300	 	100.78	%
	$  67,200	 	100.00	%
	$  67,100	 	98.06	%
	$  67,000	 	96.13	%
	$  66,900	 	94.19	%
	$  66,800	 	92.26	%
	$  66,700	 	90.32	%
	$  66,600	 	88.39	%
	$  66,500	 	86.45	%
	$  66,400	 	84.52	%
	$  66,300	 	82.58	%
	$  66,200	 	80.65	%
	$  66,100	 	78.71	%
	$  66,000	 	76.77	%
	$  65,900	 	74.84	%
	$  65,800	 	72.90	%
	$  65,700	 	70.97	%
	$  65,600	 	69.03	%
	$  65,500	 	67.10	%
	$  65,400	 	65.16	%
	$  65,300	 	63.23	%
	$  65,200	 	61.29	%
	$  65,100	 	59.35	%
	$  65,000	 	57.42	%
	$  64,900	 	55.48	%
	$  64,800	 	53.55	%
	$  64,700	 	51.61	%
	$  64,600	 	49.68	%
	$  64,500	 	47.74	%
	$  64,400	 	45.81	%
	$  64,300	 	43.87	%
	$  64,200	 	41.94	%
	$  64,100	 	40.00	%

 Note: EBITDA is expressed in thousands 







 FY 2006 COO & CFO Incentive Plan Payout Grid 
  

				
	EBITDA	 	Bonus %	 
	$  73,600	 	120.00	%
	$  73,500	 	118.91	%
	$  73,400	 	117.81	%
	$  73,300	 	116.72	%
	$  73,200	 	115.63	%
	$  73,100	 	114.53	%
	$  73,000	 	113.44	%
	$  72,900	 	112.34	%
	$  72,800	 	111.25	%
	$  72,700	 	110.16	%
	$  72,600	 	109.06	%
	$  72,500	 	107.97	%
	$  72,400	 	106.88	%
	$  72,300	 	105.78	%
	$  72,200	 	104.69	%
	$  72,100	 	103.59	%
	$  72,000	 	102.50	%
	$  71,900	 	101.41	%
	$  71,800	 	100.31	%
	$  71,700	 	99.22	%
	$  71,600	 	98.13	%
	$  71,500	 	97.03	%
	$  71,400	 	95.94	%
	$  71,300	 	94.84	%
	$  71,200	 	93.75	%
	$  71,100	 	92.66	%
	$  71,000	 	91.56	%
	$  70,900	 	90.47	%
	$  70,800	 	89.38	%
	$  70,700	 	88.28	%
	$  70,600	 	87.19	%
	$  70,500	 	86.09	%
	$  70,400	 	85.00	%
	$  70,300	 	83.91	%
	$  70,200	 	82.81	%
	$  70,100	 	81.72	%
	$  70,000	 	80.63	%
	$  69,900	 	79.53	%
	$  69,800	 	78.44	%
	$  69,700	 	77.34	%
	$  69,600	 	76.25	%
	$  69,500	 	75.16	%
	$  69,400	 	74.06	%
	$  69,300	 	72.97	%
	$  69,200	 	71.88	%
	$  69,100	 	70.78	%
	$  69,000	 	69.69	%
	$  68,900	 	68.59	%
	$  68,800	 	67.50	%
	$  68,700	 	66.41	%
	$  68,600	 	65.31	%
	$  68,500	 	64.22	%
	$  68,400	 	63.13	%
	$  68,300	 	62.03	%
	$  68,200	 	60.94	%
	$  68,100	 	59.84	%
	$  68,000	 	58.75	%
	$  67,900	 	57.66	%
	$  67,800	 	56.56	%
	$  67,700	 	55.47	%
	$  67,600	 	54.38	%
	$  67,500	 	53.28	%
	$  67,400	 	52.19	%
	$  67,300	 	51.09	%
	$  67,200	 	50.00	%
	$  67,100	 	49.12	%
	$  67,000	 	48.24	%
	$  66,900	 	47.35	%
	$  66,800	 	46.47	%
	$  66,700	 	45.59	%
	$  66,600	 	44.71	%
	$  66,500	 	43.82	%
	$  66,400	 	42.94	%
	$  66,300	 	42.06	%
	$  66,200	 	41.18	%
	$  66,100	 	40.29	%
	$  66,000	 	39.41	%
	$  65,900	 	38.53	%
	$  65,800	 	37.65	%
	$  65,700	 	36.76	%
	$  65,600	 	35.88	%
	$  65,500	 	35.00	%
	$  65,400	 	34.12	%
	$  65,300	 	33.24	%
	$  65,200	 	32.35	%
	$  65,100	 	31.47	%
	$  65,000	 	30.59	%
	$  64,900	 	29.71	%
	$  64,800	 	28.82	%
	$  64,700	 	27.94	%
	$  64,600	 	27.06	%
	$  64,500	 	26.18	%
	$  64,400	 	25.29	%
	$  64,300	 	24.41	%
	$  64,200	 	23.53	%
	$  64,100	 	20.00	%

 Note: EBITDA is expressed in thousands 







 FY 2006 Key Management Incentive Plan Payout Grid 
  

				
	EBITDA	 	Bonus %	 
	$  73,600	 	100.00	%
	$  73,500	 	98.91	%
	$  73,400	 	97.81	%
	$  73,300	 	96.72	%
	$  73,200	 	95.63	%
	$  73,100	 	94.53	%
	$  73,000	 	93.44	%
	$  72,900	 	92.34	%
	$  72,800	 	91.25	%
	$  72,700	 	90.16	%
	$  72,600	 	89.06	%
	$  72,500	 	87.97	%
	$  72,400	 	86.88	%
	$  72,300	 	85.78	%
	$  72,200	 	84.69	%
	$  72,100	 	83.59	%
	$  72,000	 	82.50	%
	$  71,900	 	81.41	%
	$  71,800	 	80.31	%
	$  71,700	 	79.22	%
	$  71,600	 	78.13	%
	$  71,500	 	77.03	%
	$  71,400	 	75.94	%
	$  71,300	 	74.84	%
	$  71,200	 	73.75	%
	$  71,100	 	72.66	%
	$  71,000	 	71.56	%
	$  70,900	 	70.47	%
	$  70,800	 	69.38	%
	$  70,700	 	68.28	%
	$  70,600	 	67.19	%
	$  70,500	 	66.09	%
	$  70,400	 	65.00	%
	$  70,300	 	63.91	%
	$  70,200	 	62.81	%
	$  70,100	 	61.72	%
	$  70,000	 	60.63	%
	$  69,900	 	59.53	%
	$  69,800	 	58.44	%
	$  69,700	 	57.34	%
	$  69,600	 	56.25	%
	$  69,500	 	55.16	%
	$  69,400	 	54.06	%
	$  69,300	 	52.97	%
	$  69,200	 	51.88	%
	$  69,100	 	50.78	%
	$  69,000	 	49.69	%
	$  68,900	 	48.59	%
	$  68,800	 	47.50	%
	$  68,700	 	46.41	%
	$  68,600	 	45.31	%
	$  68,500	 	44.22	%
	$  68,400	 	43.13	%
	$  68,300	 	42.03	%
	$  68,200	 	40.94	%
	$  68,100	 	39.84	%
	$  68,000	 	38.75	%
	$  67,900	 	37.66	%
	$  67,800	 	36.56	%
	$  67,700	 	35.47	%
	$  67,600	 	34.38	%
	$  67,500	 	33.28	%
	$  67,400	 	32.19	%
	$  67,300	 	31.09	%
	$  67,200	 	30.00	%
	$  67,100	 	29.12	%
	$  67,000	 	28.24	%
	$  66,900	 	27.35	%
	$  66,800	 	26.47	%
	$  66,700	 	25.59	%
	$  66,600	 	24.71	%
	$  66,500	 	23.82	%
	$  66,400	 	22.94	%
	$  66,300	 	22.06	%
	$  66,200	 	21.18	%
	$  66,100	 	20.29	%
	$  66,000	 	19.41	%
	$  65,900	 	18.53	%
	$  65,800	 	17.65	%
	$  65,700	 	16.76	%
	$  65,600	 	15.88	%
	$  65,500	 	15.00	%
	$  65,400	 	14.12	%
	$  65,300	 	13.24	%
	$  65,200	 	12.35	%
	$  65,100	 	11.47	%
	$  65,000	 	10.59	%
	$  64,900	 	9.71	%
	$  64,800	 	8.82	%
	$  64,700	 	7.94	%
	$  64,600	 	7.06	%
	$  64,500	 	6.18	%
	$  64,400	 	5.29	%
	$  64,300	 	4.41	%
	$  64,200	 	3.53	%
	$  63,800	 	0.00	%

 Note: EBITDA is expressed in thousands