EX-10.1



 






EXHIBIT 10.1




2007 R. G. BARRY

MANAGEMENT BONUS PLAN




OBJECTIVES





	•	 	Consistently achieve company and individual objectives.






	•	 	Enhance ability to attract, recruit, and retain a top-notch
professional management team.






	•	 	Provide motivation through “win-sharing”.





PLAN SPECIFICATIONS




1. Participation Levels




Selected exempt associates participate in the plan. The levels listed below are based on a
position’s impact on profits.



	 	 	 	 	 	 	 
	 	 	Level	 	Position Level	 	 
	 

	 	A
	 	President and CEO	 	 
	 

	 	B
	 	Corporate Executives	 	 
	 

	 	C
	 	Senior Executives	 	 
	 

	 	D
	 	Department Heads/Key Contributors	 	 






     The base salary as of the beginning of the plan year (July 1st) is used for the purposes of
calculating bonus payments.



2. Bonus Award Opportunity




Threshold, target and maximum bonus award levels as a percentage of base salary are
established by level. Target award opportunities correspond to market competitive bonus
opportunities.



	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Level	 	Threshold	 	Target	 	Maximum	 	 	 	 
	 
	 	A	 	25%	 	Determined	 	100%	 	 	 	 
	 
	 	B*	 	12.5%	 	annually by	 	50%	 	 	 	 
	 
	 	C	 	10%	 	Board of	 	40%	 	 	 	 
	 
	 	D	 	6.25%	 	Directors	 	25%	 	 	 	 






* CFO bonus level is level B plus 5%.



3. Performance Measurement




Award payouts will be determined based on the following determinants of performance.



 









 









	•	 	Company Objectives Performance






	•	 	Individual Objectives Performance





     Poor individual performance (individual rating that “does not meet minimum expectations”) will
eliminate all payouts to that individual regardless of Associate level.



     Corporate Financial Objectives Performance below the threshold level will eliminate payout for
all plan participants.



4. Performance Weighting by Group




	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Company	 	Individual	 	 	 	 
	 	 	 	 	Objectives	 	Objective	 	 	 	 
	 	 	Levels	 	Results	 	Results	 	 	 	 
	 
	 	A	 	100%	 	N/A	 	 	 	 
	 
	 	B	 	75%	 	25%	 	 	 	 
	 
	 	C/D	 	50%	 	50%	 	 	 	 






5. Determining Goal Attainment





	•	 	Corporate Objectives are established annually. Objectives will be
a combination of financial and strategic initiatives. Measures
are set by senior management. Measures are approved, and degree
of attainment is approved by the Compensation Committee.






	•	 	Individual/Department Objectives are established annually by
participants, and degree of attainment is reviewed by Corporate
Executive and approved by President/CEO, or by the Compensation
Committee in the case of the President/CEO and his direct reports.





6. Criteria for Participation





	•	 	Associates must be actively employed by R.G. Barry at the close of
the plan year (6/30).






	•	 	New hires employed before December 31st will
participate on a pro-rated basis. Persons hired after this date
will participate in the following year. Exceptions may be made by
the President/CEO. For Associates hired after December
31st, participation levels and eligibility must be
included in any offer of employment letter, along with a start
date of employment. The start date of employment is the entry
date of the new Associate into the Management Bonus Plan.






	•	 	Regarding pro-ration: Associates hired or promoted into a
Management Bonus Plan eligible position from the first to the
fifteenth of the month shall be considered to be hired or promoted
as of the first of the month. Associates hired or promoted from
the sixteenth




 









 






	 	 	to the end of the month shall be considered to be hired or promoted as of the first of the
following month.






	•	 	Review and approval of Management Bonus Plan levels will be the
responsibility of the President/CEO.






	•	 	Communication of Management Bonus Plan levels and the Plan to
individual participants will be the responsibility of each
Corporate Executive.






	•	 	Associates who are on Short Term Disability or a Leave of Absence
on 6/30 of the plan year (not actively at work) will receive a
pro-rated Management Bonus Plan payment upon their return to
active full time work. Associates who do not return to active
full time work will not receive a Management Bonus Plan payment
without approval of the Compensation Committee.






	•	 	In the event of a newly hired, promoted or transferred Associate,
the Corporate Executive must complete a Participation Worksheet,
sign it and have it approved by the President/CEO in order to
finalize participation.






	•	 	Associates who are promoted from one position to another may be
eligible to have their Management Bonus opportunity increased. A
Participation Worksheet must be completed to effect a change in
categories. For purposes of calculating the payout, the higher
percentage will be given to the Associate for the entire plan
year.






	•	 	Associates who are employed by R.G. Barry at the close of the plan
year under the terms of the severance agreement will not be
eligible to receive a payout unless expressly stated in the terms
of the agreement, and approved by the President/CEO.






	•	 	Associates who separate from R. G. Barry during a plan year for
reasons of death or Long Term Disability will not be eligible to
receive a Management Bonus Plan payment, unless approved by the
Compensation Committee.