exv10w14



 






Exhibit 10.14




Form of Fiscal Year 2004 Bonus Plan for

Executive Vice President – General Merchandise Manger




Purpose




The Fiscal Year 2004 Bonus Plan has been developed to provide financial incentives to those members
of management that can make an important contribution to Michaels’ success and to encourage those
members to remain with the Company.




Eligibility





	1.  	To be eligible for a bonus under the Fiscal Year 2004 Bonus Plan, an associate must be in a
bonus eligible position during Fiscal Year 2004. The Fiscal Year begins on February 1, 2004,
and concludes on January 29, 2005.






	2.  	An associate must be employed with the Company, in good standing (see #8), and in a bonus
eligible position at the time of bonus payout in order to be eligible to receive a bonus. If
an associate is not employed in a bonus eligible position at the beginning of the fiscal year,
but assumes a bonus eligible position during the fiscal year, he/she will be eligible to earn
a prorated bonus based upon the number of full months that he/she was in the bonus eligible
position. Individuals who assume a bonus eligible position on or before the 15th of the month
will receive credit for that entire month. Individuals who assume such a position after the
15th will not receive credit for that month.






	3.  	Bonus payments will normally occur by April 15th, following the end of the fiscal year.
Associates must be employed at the time of bonus payout in order to be eligible to receive a
bonus.






	4.  	Anyone hired or placed in a bonus eligible position after November 15, 2004 will not be
eligible to earn a bonus under the Fiscal Year 2004 Bonus Plan.






	5.  	Any associate who is on leave of absence longer than 90 days in Fiscal Year 2004 may be
eligible to earn a prorated bonus for time worked during the fiscal year, in accordance with
the normal proration guidelines outlined in this document.






	6.  	An associate must be in an active status for at least one month of Fiscal Year 2004, as
defined in this document, to be eligible for any bonus consideration.






	7.  	If an associate is promoted or changes position during the fiscal year, the associate may be
eligible for bonus earnings calculated using the number of full months (see #2) in each
position, the respective base salaries, and the applicable target bonus amount(s).






	8.  	An associate must be in “good standing” at the time of bonus payout to be eligible for a
Fiscal Year 2004 bonus. An associate does not meet this requirement if: 1) he/she receives an
overall performance rating of “Unacceptable” for FY 2004; and/or 2) at the time of bonus
payout (check date), he/she is on a Performance Improvement Plan (“PIP”) that was initiated
during FY 2004. Associates who are on a Performance Improvement Plan that is initiated in FY
2005 will be eligible for a bonus payment for FY 2004.







 









 








How a Bonus is Earned




The following factors must be satisfied in order for an eligible associate to earn a bonus under
the Year 2004 Bonus Plan.




	1.  	The associate must be eligible as set forth in the Eligibility section of the Year 2004 Bonus
Plan.






	2.  	In order to earn a bonus under the Year 2004 Bonus Plan, an associate must be employed by the
Company, in a bonus eligible position, at the time bonuses are paid. If an associate is not
employed by the Company in a bonus eligible position at the time bonuses are paid, regardless
of the reason for termination of employment, the associate does not earn a bonus under the
Year 2004 Bonus Plan.






	3.  	An associate does not earn a bonus payment for FY 2004 if: 1) he/she receives an overall
performance rating of “Unacceptable” for FY 2004 and/or 2) at the time of bonus payout he/she
is on a Performance Improvement Plan (“PIP”) that was initiated during FY 2004. Associates
who are on a Performance Improvement Plan that was initiated in FY 2004 will be eligible for a
bonus payment for FY 2004.





The Company anticipates that this bonus plan will be part of an ongoing bonus program, but the
Company does not guarantee that the program will in fact continue for future periods or that the
terms of the program will not change.




When bonuses are paid, the Company typically makes bonus payments in April of the following fiscal
year.




Bonus Payout Formula




Bonus payouts will be based upon your earned percentage multiplied by your base salary as of the
first day of the fiscal year (February 1, 2004). Your earned percentage will be based upon actual
performance as compared to Plan.




2004 Bonus Plan

Executive Vice President – General Merchandise Manger




	 	 	 	 	 
	 
	Bonus Criteria 	 	Point Value	 
	 
	1. Company Profit Before Taxes
	 	 	 	 
	2. Merchandising Comp Store Sales Plan (X% Comp)
	 	 	 	 
	3. Company Monthly Average Inventory ($) per Store
	 	 	 	 
	Total Points:
	 	 	 	 






Company Profit Before Taxes

40 Potential Points

Plan:




	 	 	 	 	 	 
	 
	% Of Plan	 	Points Earned	 
	 
	104+%
	 	 	 	 
	102%
	 	 	 	 
	100%
	 	 	 	 
	98%
	 	 	 	 
	96%
	 	 	 	 
	94%
	 	 	 	 
	Less than 94%
	 	 	 	 






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Merchandising Comp Store Sales Plan (X% Comp)

40 Potential Points

Plan:




	 	 	 	 	 	 
	 
	% Of Plan	 	Points Earned	 
	 
	102%
	 	 	 	 
	101%
	 	 	 	 
	100%
	 	 	 	 
	99%
	 	 	 	 
	98%
	 	 	 	 
	97%
	 	 	 	 
	96%
	 	 	 	 
	95%
	 	 	 	 
	Less than 95%
	 	 	 	 






Company Monthly Average Inventory ($) per Store

30 Potential Points

Plan:




	 	 	 	 	 	 
	 
	% Of Plan	 	Points Earned	 
	 
	100%
	 	 	 	 
	101%
	 	 	 	 
	102%
	 	 	 	 
	103%
	 	 	 	 
	104%
	 	 	 	 
	105%
	 	 	 	 
	More than 105%
	 	 	 	 






Bonus Payout Matrix




	 	 	 	 	 	 
	 
	Total Points Earned	 	Bonus Payout % of Salary	 
	 
	Super – 100+	 	 	 	 
	Stretch – 90	 	 	 	 
	Target – 80	 	 	 	 
	75	 	 	 	 
	70	 	 	 	 
	65	 	 	 	 
	60	 	 	 	 
	55	 	 	 	 
	Less than 55	 	 	 	 







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