- Sales Growth and Gross Profit Dollar
Growth, attached hereto, which is computed by comparing the Sales Growth and
Gross Profit Dollar Growth for the Program Year to the Projected Sales Growth
and Gross Profit Dollar Growth for the Program Year.
(vi)
Strategic Bonus Objective Bonus Percentage: Means the percentage
determined from Table A - Strategic Bonus Objectives, attached hereto, which
coincides with Participant's achievement of Strategic Bonus Objectives for the
Program Year.
(B)
Corporate MIP Bonus-eligible Position: Means (i) the Senior Officers and
(ii) employees that serve in other roles with the Company, as deemed appropriate
by the Chief Executive Officer.
(C)
Bonus Target Amount: Means a Participant's Target Bonus Percentage for
the Program Year multiplied by the Participant's base salary as of the end of
the relevant Program Year.
(D)
Bonus for a Corporate MIP Bonus-eligible Position: Means the sum of the
Company Performance Bonus a MIP Bonus-eligible Position and the SBO Performance
Bonus for a Corporate MIP Bonus-eligible Position.
(E)
Performance Bonus for a Corporate MIP Bonus-eligible Position: As defined
in Section 3(A)(i) hereof.
(G)
GAAP Change Year: As defined in Section 3(C)(i) hereof.
(G)
SBO Performance Bonus for a Corporate MIP Bonus-eligible Position: As
defined in Section 3(A)(ii) hereof.
(H)
Rate Change Year: As defined in Section 3(C)(iii) hereof.
(I)
Target Bonus Percentage: The percentage set forth in the Participant's
bonus letter for the Program Year.
3.Calculation of Bonus.
(A)
Bonus Formula. The Bonus for a Corporate MIP Bonus-eligible Position for
the Program Year shall be based 75% on financial performance of the Company and
25% on an individual Participant's performance with respect to Strategic Bonus
Objectives, and shall be equal to the sum of the (i) and (ii), calculated as
follows:
(i)Performance Bonus for a Corporate MIP Bonus-eligible Position. The Company
Performance Bonus for a MIP Bonus-eligible Position shall be equal to the sum of
the following:
(AA)
Operating Income Bonus -
Participant's Bonus Target Amount
X
Operating Income Bonus Percentage
X
50%
=
Operating Income Growth Bonus
(BB)
Sales Growth and Gross Profit Dollars Growth Bonus -
Participant's Bonus Target Amount
X
Sales Growth and Gross Profit Dollars Bonus Percentage
X
25%
=
Sales Growth and Gross Profit Dollars Bonus
(ii)SBO Performance Bonus for a MIP Bonus-eligible Position. The SBO Performance
Bonus for a MIP Bonus-eligible Position shall be determined based on the
Participant's achievement of the specified SBOs, and shall be equal to the sum
of the following:
(CC)
Strategic Bonus Objective Bonus -
Participant's Bonus Target Amount
X
SBO Bonus Percentage
X
25%
=
SBO Bonus
Each of the above components of the Bonus for a MIP Bonus-eligible Position
shall be calculated and awarded independently. Each metric based on financial
performance has a possible payout between 0% and 200%, depending on actual
performance relative to established targets. SBO Performance Bonus has a
possible payout of between 0% and 150%, depending on actual performance relative
to established targets. If performance for the Program Year with respect to a
component does not meet Threshold,