**FINAL    **

**2007      Senior Management Bonus Plan**

**Summary**

**Participants**

| Name                           |   | Title                                           |   | Target                Bonus Percentage |
|--------------------------------|--------|-------------------------------------------------|--------|----------------------------------------|
| Ed                Jaeger       |   | CEO                                             |   | 35%                                    |
| Kent                Pachl      |   | VP                of Sales                      |   | 30%                                    |
| Rhonda                Hoffarth |   | VP                of Operations                 |   | 25%                                    |
| ______________                 |   | CFO                                             |   | 25%                                    |
| Tom                Kreig       |   | Controller                                      |   | 20%                                    |
| Eric                Jaeger     |   | VP                of Research & Development |   | 20%                                    |
| Annie                Evans     |   | Director                of Supply Chain         |   | 20%                                    |

**CONFIDENTIAL**

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**Corporate      Financial Objectives**

**Individual      and Departmental Objectives**

**Evaluations      and Payout of Bonus Award**

**CONFIDENTIAL**

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**Bonus      Pool Funding**

| Percent Attainment of                Revenue/Net IncomeTargets |   | Bonus PoolFunding Percentage |
|-------------------------------------------------------------------------------|--------|----------------------------------------|
| <95%                                                                       |   | Zero                                   |
| 95                - 98%                                                       |   | 50%                                    |
| 98                - 99%                                                       |   | 75%                                    |
| 100                - 103%                                                     |   | 100%                                   |
| 104                - 107%                                                     |   | 110%                                   |
| 108                - 111%                                                     |   | 115%                                   |
| 112                - 115%                                                     |   | 120%                                   |
| 116                - 120%                                                     |   | 125%                                   |
| 121                - 125%                                                     |   | 130%                                   |
| 126                - 130%                                                     |   | 135%                                   |
| >131%                                                                      |   | 150%                                   |

**CONFIDENTIAL**

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**Exhibit      A**

**Individual      and Departmental Objectives**

**CONFIDENTIAL**

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**Individual      and Departmental Objectives**

| Participant: | **Kent                Pachl**  |
|--------------|--------------------------------|
| Title:       | **VP                of Sales** |

|   | 1) | Objective:                [**] |
|--------|----|--------------------------------|

|   | a. | Description:                [**] **for                all Ironclad products.** |
|--------|----|--------------------------------------------------------------------------------|

|   | b. | Method                of calculating: **Based                upon public financial                reporting** |
|--------|----|---------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **70%** |
|--------|----|---------------------------------|

|   | 2) | Objective:                [**] |
|--------|----|--------------------------------|

|   | a. | Description:                **Expand                national apparel distribution to at least                [**].** |
|--------|----|----------------------------------------------------------------------------------------------------------------------|

|   | b. | Method                of calculating: **Shipped                product or a firm commitment to ship product by the end of                [**]** |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **10%** |
|--------|----|---------------------------------|

|   | 3) | Objective:                [**] |
|--------|----|--------------------------------|

|   | a. | Description:                **Expand                Sales management to [**]** |
|--------|----|--------------------------------------------------------------------------------|

|   | b. | Method                of determining success:**Hired or contracted Sales management in**[**]**.** |
|--------|----|---------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **10%** |
|--------|----|---------------------------------|

**EXECUTE      NATIONAL CONSUMER PROMOTION**

|   | a. | Description:                **Execute                a national consumer promotion during the second half of                2007.** |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Method                of determining success: **Formally                launch the full national                promotion.** |
|--------|----|------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **5%** |
|--------|----|--------------------------------|

|   | 2) | Objective:                **IMPLEMENT                A PERFORMANCE BASED COMPENSATION                PLAN** |
|--------|----|-------------------------------------------------------------------------------------------------------------|

|   | a. | Description:                **Implement                a performance-based compensation plan for all Sales team                members.** |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Method                of determining success:**Approval of the compensation plan by the CEO before                12/31/07.** |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **5%** |
|--------|----|--------------------------------|

----

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**Individual      and Departmental Objectives**

| Participant: | **[OPEN]** |
|--------------|------------|
| Title:       | **CFO**    |

|   | 1) | Objective:                **SELL-SIDE                COVERAGE** |
|--------|----|-----------------------------------------------------------------|

|   | d. | Description:                **Obtain                sell-side coverage by at least one (1) research analyst with a NASDAQ                listed firm.** |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | Method                of calculating: **Publication                of at least one research report by                12/31/07.** |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------|

|   | f. | Weight*:                **40%** |
|--------|----|---------------------------------|

|   | 2) | Objective:                **EDI                IMPLEMENTATION** |
|--------|----|-----------------------------------------------------------------|

|   | g. | Description:                **Analyze,                recommend and implement an updated EDI                system.** |
|--------|----|-----------------------------------------------------------------------------------------------------------------------|

|   | h. | Method                of calculating: **EDI                software purchased and installed by                12/31/07.** |
|--------|----|---------------------------------------------------------------------------------------------------------------------------|

|   | i. | Weight*:                **20%** |
|--------|----|---------------------------------|

|   | 3) | Objective:                **DEVELOPMENT                OF MANAGEMENT ANALYTICS AND REPORTING                TOOLS** |
|--------|----|---------------------------------------------------------------------------------------------------------------------|

|   | a. | Description:                **Specify,                select, purchase, install and implement a system which will improve                the                management analytics and report functions for Sales, Operations and                Accounting.** |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Method                of determining success:**Implementation of the system by                12/31/07.** |
|--------|----|-----------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **25%** |
|--------|----|---------------------------------|

**INVESTOR      & NON-DEAL COMPANY PRESENTATIONS**

|   | a. | Description:                **Arrange                for company participation in at least three (3) investor conference                and                three (3) non-deal road-show presentations. This includes updating                presentation materials and follow-up with potential                investors.** |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Method                of determining success: **Company                participation as outlined                above.** |
|--------|----|--------------------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **10%** |
|--------|----|---------------------------------|

|   | 2) | Objective:                **OUTSOURCED                HUMAN RESOURCES FUNCTION** |
|--------|----|----------------------------------------------------------------------------------|

|   | a. | Description:                **Evaluate                the effectiveness of outsourcing the company’s Human Resources function.                If appropriate, select a third-party Human Resources outsource firm                and                implement the change.** |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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|   | b. | Method                  of determining success:**Completion of the outsourcing analysis and, if appropriate, implementation                  of the outsourced Human Resources function by the end of Q3                  2007.** |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                  **5%** |
|--------|----|----------------------------------|

----

**Individual      and Departmental Objectives**

| Participant: | **Rhonda                Hoffarth**  |
|--------------|-------------------------------------|
| Title:       | **VP                of Operations** |

|   | 1) | Objective:                [**] |
|--------|----|--------------------------------|

|  | a. | Description:                [**] |
|--|----|----------------------------------|

|   | b. | Method                of calculating: **As                calculated by Finance using customary Ironclad                methods.** |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **30%** |
|--------|----|---------------------------------|

|   | 2) | Objective:                [**] |
|--------|----|--------------------------------|

|   | a. | Description:                [**] |
|--------|----|----------------------------------|

|   | b. | Method                of calculating: **As                calculated by Finance using customary Ironclad                methods.** |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **20%** |
|--------|----|---------------------------------|

|   | 3) | Objective:                [**] |
|--------|----|--------------------------------|

|   | a. | Description:                [**] |
|--------|----|----------------------------------|

|   | b. | Method                of determining success:** **[**] |
|--------|----|-------------------------------------------------------------|

|   | c. | Weight*:                **30%** |
|--------|----|---------------------------------|

**INSTITUTE      A NEW QUALITY CONTROL PROGRAM**

|   | a. | Description:                **Design                and implement a new Quality Control program which will increase the                quality of the products being produced and reduce the defect rate                of                products shipped to                distributors.** |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   |
|--------|--------|--------|

----

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|  | b. | Method                of determining success: **Measured                defect rate of returned goods from distributors, comparing 2006 to                2007                following implementation of the new Quality Control                program.** |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **10%** |
|--------|----|---------------------------------|

|   | 2) | Objective:                **IMPLEMENT                A 12 MONTH ROLLING MASTER                CALENDAR** |
|--------|----|----------------------------------------------------------------------------------------------------------|

|   | a. | Description:                **Produce                a calendar of product production releases from the                factories.** |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Method                of determining success:**Completed and distributed by October 31,                2007.** |
|--------|----|----------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **10%** |
|--------|----|---------------------------------|

----

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**Individual      and Departmental Objectives**

| Participant: | **Tom                Kreig**                |
|--------------|---------------------------------------------|
| Title:       | **Vice                President - Finance** |

|   | 1) | Objective:                **DEVELOP                AND DELIVER A BOARD PACKAGE OF KEY METRICS BY END OF                Q2** |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------|

|   | a. | Description:                **Prepare                a monthly package of key company metrics for distribution to the                Board by                the 20****th****of each month.** |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Method                of calculating: **Issue                date of package** |
|--------|----|--------------------------------------------------------------------------------|

|   | c. | Weight*:                **35%** |
|--------|----|---------------------------------|

|   | 3) | Objective:                **TRAIN                STAFF TO ACHIEVE MONTHLY CLOSING OF THE BOOKS WITHIN A 10-15 DAY                WINDOW BY                THE END OF Q2** |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Description:**Train accounting department staff to perform month-end closing procedures                on a timely basis for review before 15****th****calendar day each month.** |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Method                of determining success:**Date at which financial statements are                issued** |
|--------|----|---------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **35%** |
|--------|----|---------------------------------|

**PARTICIPATE      IN SELECTION AND IMPLEMENTATION OF ADDITIONAL MANAGEMENT REPORTING TOOLS TO      ENHANCE COMPANY-WIDE ANALYTICS**

|   | a. | Description:**Select and oversee installation of new reporting software (Vision).                Oversee development of financial department reporting analytics by                end of                Q3** |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Method                of determining success:**Production of reports** |
|--------|----|------------------------------------------------------------------------|

|   | c. | Weight*:                **15%** |
|--------|----|---------------------------------|

|   | 2) | Objective:                [**] |
|--------|----|--------------------------------|

|   | a. | Description:** **[**] |
|--------|----|----------------------------|

|   | b. | Method                of determining success:** **[**] |
|--------|----|-------------------------------------------------------------|

|   | c. | Weight*:                **15%** |
|--------|----|---------------------------------|

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**Individual      and Departmental Objectives**

| Participant: | **Eric                Jaeger**                     |
|--------------|----------------------------------------------------|
| Title:       | **VP                of Research &Development** |

|   | 1) | Objective:                **COMPLETE                FINAL DESIGNS FOR 2008 COMBINED SPRING/FALL APPAREL                LINE** |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Description:                **Finalize                the designs for the 2008 combined Spring/Fall apparel lines. Provide                sales                samples; finalize fabrics, packaging, sourcing and                costs.** |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Method                of calculating: **Completion                by July 1, 2007.** |
|--------|----|--------------------------------------------------------------------------------------|

|   | c. | Weight*:                **35%** |
|--------|----|---------------------------------|

**DESIGN      NEW SOFT GOODS LINE FOR 2008**

|   | a. | Description:                **Design,                develop, prototype, test and introduce a new soft goods line for                2008.** |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Method                of determining success: **Introduction                of a new soft goods line by September 1,                2007.** |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **25%** |
|--------|----|---------------------------------|

|   | 3) | Objective:                **DESIGN                AND DEVELOP NEW OR IMPROVED GLOVE                STYLES** |
|--------|----|-------------------------------------------------------------------------------------------------------------|

|   | a. | Description:                **Design,                develop, prototype, test and introduce new and/or improved glove                styles.                This may also include lowering costs of existing                gloves.** |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Method                of determining success:** **[**] |
|--------|----|-------------------------------------------------------------|

|   | c. | Weight*:                **20%** |
|--------|----|---------------------------------|

|   | 1) | Objective:                **EXPAND                IRONCLAD’S INTELLECTUAL                PROPERTY** |
|--------|----|-----------------------------------------------------------------------------------------------------------|

|   | a. | Description:                **Expand                Ironclad’s Intellectual Property assets and rights with new trademarks and                patents (both U.S. and                international).** |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Method                of determining success:**The addition of new U.S. and/or international trademarks and/or                patents.** |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **10%** |
|--------|----|---------------------------------|

|   | 2) | Objective:                **GAIN                EU CERTIFICTION ON GLOVES** |
|--------|----|-----------------------------------------------------------------------------|

|   | a. | Description:                **Test                relevant Ironclad gloves for European gloves                standards.** |
|--------|----|----------------------------------------------------------------------------------------------------------------------------|

|   | b. | Method                of determining success:**Obtain C.E. mark by years                end.** |
|--------|----|------------------------------------------------------------------------------------------------|

|   | **c.** | Weight*:                **5%** |
|--------|--------|--------------------------------|

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|  | 3) | Objective:                **INTERNATIONAL                STANDARDS FOR HI-VIZ                WORKWEAR** |
|--|----|---------------------------------------------------------------------------------------------------------|

|   | a. | Description:                **Investigate                Canadian, European and Australian standards for Hi Visibility work                wear** |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Method                of determining success:**Written report and recommendations by years                end.** |
|--------|----|------------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **5%** |
|--------|----|--------------------------------|

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**Individual      and Departmental Objectives**

| Participant: | **Annie                Evans**              |
|--------------|---------------------------------------------|
| Title:       | **Director                of Supply Chain** |

|   | 1) | Objective:                [**] |
|--------|----|--------------------------------|

|   | a. | Description:                [**] |
|--------|----|----------------------------------|

|   | b. | Method                of calculating: **Completion                by July, 2007.** |
|--------|----|------------------------------------------------------------------------------------|

|   | c. | Weight*:                **20%** |
|--------|----|---------------------------------|

|   | 2) | Objective:                [**] |
|--------|----|--------------------------------|

|   | a. | Description:                [**] |
|--------|----|----------------------------------|

|   | b. | Method                of calculating: **Against                total year 2006 by Ironclad accounting standards, (adjustment to                be made                for large bulk sales orders at low margin beyond the scope of this                department to be considered).**  |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **25%** |
|--------|----|---------------------------------|

|   | 3) | Objective:                **UPDATE                AND REVISE THE GLOVE VENDOR GUIDE / CREATE APPAREL VENDOR GUIDELINE** |
|--------|----|-------------------------------------------------------------------------------------------------------------------------|

|   | a. | Description:                **Update                and revise the vendor guide to glove suppliers. Establish vendor                guide for                apparel supplies, setting standards for FOB and LDP suppliers for                compliance and                consistency.** |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Method                of calculating: Glove Vendor Guide, **Completion                by March, 2007; Apparel Vendor Guide, Completion by September                2007** |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **20%** |
|--------|----|---------------------------------|

|   | 1) | Objective:                **DEVELOP                COMPLIANCE AND LOGISTICS PLANS FOR IMPORT AND                EXPORT** |
|--------|----|--------------------------------------------------------------------------------------------------------------------------|

|   | a. | Description:                **Stay                current with CBP import regulations and classification and proper                entry of                all goods coming into Ironclad FOB or LDP reducing potential exposure                and                liability for seized goods and re-delivery penalties. Researching                cost                differentials between various means of import and export to save                on duties                and related costs (i.e. FTZ vs. Duty Drawback, Warehouse entries,                etc.).                Also suggesting means of managing FOB and LDP vendor pricing programs                to                maximize the duty cost savings on import and export shipments and                minimizing consultant and legal fees.** |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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|   | b. | Method                of determining success: **Development,                documentation and implementation of compliance and logistics plan                template                ongoing and in substance by December,                2007.** |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **25%** |
|--------|----|---------------------------------|

|   | 2) | Objective:                **DEVELOP                CONSOLIDATION AND LOGISTICS PLANS FOR INTERNATIONAL                SALES** |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Description:                **Ongoing                research for developing the most efficient means of servicing                international sales with knowledge that most of this will be ongoing                into                2008 due to limited international growth in 2007. Develop methodologies                for short and longer term, related to managing multi-country demand,                ordering, consolidation and direct export as well as using FTZ and/or                duty                drawback.** |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Method                of determining success: **Development,                documentation and implementation of matrix template showing various                options for future international development by October,                2007.** |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **10%** |
|--------|----|---------------------------------|

----

**Individual      and Departmental Objectives**

| Participant: | **Ed                Jaeger** |
|--------------|------------------------------|
| Title:       | **CEO**                      |

|   | 1) | Objective:                **ENSURE                THE SUCCESS OF HIS MANAGEMENT                TEAM** |
|--------|----|-------------------------------------------------------------------------------------------------------|

|   | d. | Description:                **Facilitate                and ensure the success of his management team by supporting each                member in                their regular responsibilities and in those objectives outlined in                the                2007 Bonus program.** |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | Method                of calculating: **By                measuring the success of each individual management team member in                meeting                their objectives, and taking the cumulative average of their                success** |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f. | Weight*:                **80%** |
|--------|----|---------------------------------|

|  | 1) | Objective:                **PROMOTION                OF THE COMPANY, ITS BRAND AND                PRODUCTS** |
|--|----|--------------------------------------------------------------------------------------------------------------|

|   | a. | Description:                **As                CEO, promote the company, its brand and products in non-traditional                ways                by participation in business & trade events, media coverage, and                investor forums.** |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Method                of determining success: **Positive                coverage in the media, increased brand awareness through CEO-outreach,                and                increased visibility of the company and                brand.** |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **10%** |
|--------|----|---------------------------------|

|   | 2) | Objective:                **HIRE                EXCELLENT PEOPLE** |
|--------|----|--------------------------------------------------------------------|

|   | a. | Description:                **Ensure                that Ironclad as the best employees available, and focus on hiring                only                the top talent in the                market.** |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Method                of determining success:**High performance for all Ironclad employees, lower employee turn-over                (voluntary and involuntary) and increased employee                productivity.** |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Weight*:                **10%** |
|--------|----|---------------------------------|

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