<PAGE>   1
                                                                    EXHIBIT 10.8


                      DEP CORPORATION EXECUTIVE BONUS PLAN
                         FISCAL YEAR ENDED JULY 31, 1998

                THIS PLAN REPLACES THE 1997 EXECUTIVE BONUS PLAN

I.    BONUSES ARE EARNED ON THE FOLLOWING PERFORMANCE OBJECTIVES:

<TABLE>
<CAPTION>
                                                          Performance Objectives
                                                          ----------------------
      Category    Category Description                    Business     Personal
      --------    --------------------                    --------     --------
      <S>         <C>                                     <C>          <C>
        I         President and CEO                          100%          --

        II        Chief Financial Officer                    100%          --

        III       Senior V.P. and V.P.                       100%          --
</TABLE>

II.   CORPORATE/DIVISION BUSINESS OBJECTIVES:

      To foster each executive's commitment to teamwork and share in the
Company's overall success, targeted Business Objectives for participants should
include Corporate/Division performance factors as below:

<TABLE>
<CAPTION>
                                                Percentage of Total Business Objectives
      Participant's Reporting                   ---------------------------------------
               Level                                     Corporate      Division
      -----------------------                            ---------      --------
      <S>                                                <C>            <C>
      President and CEO                                     100%           n/a

      Vice President, Sales                                  50%           50%

      Vice President, Marketing                              50%           50%

      Senior Vice President, International                   50%           50%

      Vice President, Operations                             80%           20%

      Vice President, R&D and Contract Packaging             80%           20%

      All Other Vice Presidents                             100%           n/a
</TABLE>

      Except for the President and CEO who is covered by a separate plan,
Corporate Business Objectives for Operational and Administrative Executives are
set forth in Schedule A; Corporate Business Objectives for Sales and Marketing
Executives are set forth in Schedule B; Division Business Objectives are set
forth in Schedule C.

                                 Exhibit 10.8

<PAGE>   2

                                   SCHEDULE A
                          CORPORATE BUSINESS OBJECTIVES
                         OPERATIONAL AND ADMINISTRATIVE

      Corporate Business Objectives are the attainment of planned levels of
"PRE-BONUS EBITDA" (earnings before interest, taxes, depreciation and
amortization) during a three year period, as follows:

<TABLE>
<CAPTION>
                                 Fiscal Years Ending July 31,
                              -----------------------------------
                                 1998        1999       2000
                              ----------  ----------  -----------
<S>                           <C>         <C>         <C>
Threshold Level               $           $           $
Target Level                  $           $           $
</TABLE>

      The annual Performance Awards payable for the achievement of each of the
above levels, are as follows:

A.    CASH COMPENSATION:

<TABLE>
<CAPTION>
                                    Fiscal Years Ending July 31,
                                 ------------------------------------
                                  1998           1999           2000
                                 ------         ------         ------
        <S>                      <C>            <C>            <C>
        Threshold Bonus            15%            15%            15%
            and
        Target Bonus               35%            45%            45%
        TOTAL POTENTIAL            50%            60%            60%
</TABLE>

B. DEFERRED COMPENSATION BASED ON STOCK OPTION APPRECIATION RIGHTS. Payout is
equal to the difference of the market price on the third anniversary of the
grant less a per share price of $1.3125 multiplied by the number of shares
granted. The grant date is October 1 after the end of each fiscal year if profit
levels are achieved. The shares subject to grant are as follows:

<TABLE>
<S>                              <C>         <C>         <C>  
     Threshold Shares            2,500       2,500       2,500
         and
     Target Shares               5,000       5,000       5,000
     TOTAL POTENTIAL             7,500       7,500       7,500
</TABLE>

      If actual performance falls between the Threshold and Target levels, the
percentage of the Performance Award earned, cash and stock options, will be at
the discretion of: (1) the Compensation Committee of the Board of Directors, in
the case of Category I and (2) the Chief Executive Officer, in the case of
Category II and III, in each case based upon the individual executives personal
performance.

<PAGE>   3

                                   SCHEDULE B
                          CORPORATE BUSINESS OBJECTIVES
                               SALES AND MARKETING


      Corporate Business Objectives are the attainment of planned levels of
"PRE-BONUS EBITDA" (earnings before interest, taxes, depreciation and
amortization) during a three year period, as follows:

<TABLE>
<CAPTION>
                                 Fiscal Years Ending July 31,
                              -----------------------------------
                                 1998        1999       2000
                              ----------  ----------  -----------
<S>                           <C>         <C>         <C>
Threshold Level               $           $           $
Target Level                  $           $           $
</TABLE>

      The annual Performance Awards payable for the achievement of each of the
above levels, are as follows:

A.    CASH COMPENSATION:

<TABLE>
<CAPTION>
                                    Fiscal Years Ending July 31,
                               ------------------------------------
                                1998           1999           2000
                               ------         ------         ------
        <S>                    <C>            <C>            <C>
        Threshold Bonus            20%            20%            20%
             and
        Target Bonus               40%            50%            50%
        TOTAL POTENTIAL            60%            70%            70%
</TABLE>

B. DEFERRED COMPENSATION BASED ON STOCK APPRECIATION. Payout is equal to the
difference of the market price on the third anniversary of the grant less a per
share price of $1.3125 multiplied by the number of shares granted. The grant
date is October 1 after the end of each fiscal year if profit levels are
achieved. The shares subject to grant are as follows:

<TABLE>
<S>                               <C>        <C>         <C>  
     Threshold Shares             2,500      2,500       2,500
         and
     Target Shares                5,000      5,000       5,000
     TOTAL POTENTIAL              7,500      7,500       7,500
</TABLE>

      If actual performance falls between the Threshold and Target levels, the
percentage of the Performance Award earned, cash and stock options, will be at
the discretion of the Chief Executive Officer based upon the individual
executives personal performance.

<PAGE>   4

                                  SCHEDULE C
                         DIVISION BUSINESS OBJECTIVES
                       FISCAL YEAR ENDING JULY 31, 1998

      Annually the sales and marketing divisions and contract packaging/private
label divisions develop their respective internal plan goals which are the basis
for the Company's profit plan. It is very important that the internal plans
reflect achievable results for sales and profit growth. Although it is
recognized that sales represent a vital element in order to meet our profit
goals, Division Business Objectives ("DBO's") are based on the attainment of
specified levels of the internal plan's PROFIT BEFORE GENERAL AND ADMINISTRATIVE
EXPENSES (PBG&A). This one factor is utilized for DBO determination for ease of
understanding and recognizes that in order to meet the PBG&A, commensurate sales
levels must also be achieved. The internal plan's DBO's and achievement levels
for bonus determination are as follows:

<TABLE>
<CAPTION>
                                                                    Percentage of Plan For
      Participant's Reporting                   Internal Plan      ------------------------
               Level                                PBG&A          Threshold         Target
      -----------------------                   --------------     ---------         ------
      <S>                                       <C>                <C>               <C>
      Vice President, Sales                       $                   100%            110%

      Vice President, Marketing                   $                   100%            110%

      Senior Vice President, International        $                   100%            110%

      Vice President, Operations                  $                   100%            110%

      Vice President, R&D and Contract Pkg        $                   100%            110%
</TABLE>

Determination of Cash Compensation:

If the specified percentage level of the internal plan's PBG&A is achieved, then
the executive shall be entitled to receive the corresponding bonus level
pursuant to Schedule B. The dollar bonus would be determined by: (1) multiplying
the executives base salary times the applicable Cash Compensation Bonus
percentage (Schedule B); and (2) the result of (1) times the appropriate Divison
Percentage of Total Business Objectives (under Section II Corporate/ Division
Business Objectives). For example, if the sales/marketing executive achieved the
Target Level and base salary was $100,000 per year with satisfactory personal
performance, his/her cash compensation relative to DBO's would be: $100,000 X
60% = $60,000 X 50% = $30,000; the remaining 50% would be dependent upon
corporate results. Contract packaging executives would use the percentages in
Schedule A.

Determination of Stock Appreciation Rights:

If the specified percentage level of the internal plan's PBG&A is achieved, then
the executive shall be entitled to receive the corresponding bonus level
pursuant to Schedule B. The number of stock rights would be determined by
multiplying the executives earned Stock Appreciation Shares, Threshold and/or
Target (Schedule B), by the appropriate Divison Percentage of Total Business
Objectives (under Section II Corporate/ Division Business Objectives). For
example, if the sales/marketing executive achieved the Target Level with
satisfactory personal performance, the earned Stock Appreciation Shares relative
to DBO's would be: 7,500 X 50% or 3,750.


<PAGE>   5

                                   SCHEDULE D
                         PERSONAL PERFORMANCE OBJECTIVES

      Personal Performance Objectives means the objectives established by the
Company's President, which may be described in terms of either Company-wide
objectives, divisional, departmental, or functional objectives and relate to a
given fiscal year. The President may adjust the Personal Performance Objectives
and any minimum acceptable level of achievement with respect to any Personal
Performance Objective if, in the sole judgment of the President, events or
transactions have occurred which are unrelated to the performance of the
Participant and result in a distortion of the Personal Performance Objectives or
such minimum acceptable level of achievement.