Document:

Exhibit
10.1

 

THE J. JILL GROUP, INC.

AMENDED
AND RESTATED

2005
INCENTIVE COMPENSATION PLAN

 

Purpose

 

This Amended and Restated
2005 Incentive Compensation Plan (the “Incentive Compensation  Plan”)
is designed to provide financial reward to employees of The J. Jill Group, Inc.
(the “Company”) for their contribution toward the
attainment of the Company’s financial goals for the fiscal year ending December
31, 2005 (“FY 2005”).

 

Participation

 

•                  A “Participating Employee”
shall mean each of the following employees of the Company:  (i) the President
and Chief Executive Officer; (ii) any Executive Vice President; (iii) any
Senior Vice President; (iv) any Vice President; (v) any Operating Vice
President; and (vi) any employee below the level of Operating Vice President
who is selected for participation in this Incentive Compensation Plan by the
President and Chief Executive Officer. 
No employee below the level of Operating Vice President shall be
entitled to participate in this Incentive Compensation Plan unless and until
selected to do so by the President and CEO.

 

•                  No Participating Employee shall be
entitled to receive a bonus under this Incentive Compensation Plan unless the
Participating Employee satisfies the eligibility criteria set forth below.

 

Eligibility
Criteria

 

•                  A Participating Employee who is in
performance counseling at any time during a performance period will not be
eligible for a bonus for the performance period.

 

•                  To be eligible to receive a bonus for
a performance period, a Participating Employee must be actively employed by the
Company for a minimum of three months in the performance period.  Time on leave does not count as active
employment.  Employment by a subsidiary
of the Company shall be considered employment by the Company for purposes of
this Incentive Compensation Plan.

 

•                  To be eligible to receive a bonus for
a performance period, a Participating Employee must be employed on the last day
of the performance period.

 

 

Performance Period

 

This Incentive
Compensation Plan pertains to FY 2005. 
For measurement purposes, FY 2005 will be divided into two seasonal
performance periods:

 

Spring — December 26,
2004 to June 25, 2005

Fall — June 26, 2005 to
December 31, 2005

 

Additional
Bonuses

 

Nothing in this Incentive
Compensation Plan shall be deemed to limit the authority of the Board of
Directors, the Compensation Committee of the Board of Directors or the
President and CEO to award additional bonuses outside the Incentive
Compensation Plan in their discretion.

 

Payments

 

Bonus payments under this
Incentive Compensation Plan will be made promptly following the close of the
performance period.

 

Calculation of Bonus Payment

 

•                  Definitions:

 

•                  The
“Bonus Percentage” for a Participating Employee shall be the percentage
assigned to the Participating Employee for the purpose of calculating the
Participating Employee’s bonus, if any, under this Incentive Compensation Plan.  Bonus Percentages for employees at the level
of Operating Vice President and above shall be determined by the Board of
Directors or the Compensation Committee of the Board of Directors.  Bonus Percentages for Participating Employees
below the level of Operating Vice President shall be determined by the
President and CEO.

 

•                  “Earnings
Per Share Percentage” for a performance period means the lesser of (i) 100% or (ii) a fraction, the numerator of which is
the Company’s Preliminary Earnings Per Share for the performance period minus
the Company’s Earnings Per Share Target for the performance period, and the
denominator of which is $0.07, expressed as a percentage.  

 

•                  “Earnings
Per Share Target” for a performance period means:  (i) for the Spring performance period, the Company’s fully diluted
earnings per share target for the

 

2

 

performance period as set
forth in the Company’s 2005 Financial Plan; and (ii) for the Fall performance
period, the fully diluted earnings per share target for the performance period
established by the Compensation Committee for purposes of this Incentive Compensation
Plan before the beginning of the performance period.

 

•                  “Maximum
Bonus” for a performance period with respect to any Participating Employee
means the Participating Employee’s Bonus Percentage times the base salary paid
to him or her for the performance period.

 

•                  “Preliminary
Earnings Per Share” for a performance period means the amount the Company’s
fully diluted earnings per share for the performance period would be if no
bonuses under this Incentive Compensation Plan were paid for the performance
period. 

 

•                  If
the Company’s Preliminary Earnings Per Share for a
performance period are less than or equal to the Company’s Earnings Per Share
Target for the performance period, no bonuses shall be paid under this
Incentive Compensation Plan for the performance period.

 

•                  If the Company’s Preliminary Earnings
Per Share for a performance period are greater than the Company’s Earnings Per
Share Target for the performance period, then each eligible Participating
Employee shall receive a bonus for the performance period under this Incentive
Compensation Plan in an amount equal to the Participating Employee’s Maximum
Bonus for the performance period times the Earnings Per Share Percentage for
the performance period.

 

Example

 

CASE
1:                 Assume the
Participating Employee’s annual base salary is $50,000, his or her Bonus
Percentage is 10%, the Company’s Earnings Per Share Percentage
for the Spring performance period is 100% and the Company’s Earnings Per Share Percentage
for the Fall performance period is 100%:

 

	
  Season

  	
   

  	
  Salary for

  Performance

  Period

  	
   

  	
  Bonus %

  	
   

  	
  Maximum

  Bonus

  	
   

  	
  EPS %

  	
   

  	
  Bonus

  Amount

  	
   

  
	
  Spring

  	
   

  	
  $

  	
  25,000

  	
   

  	
  10

  	
  %

  	
  $

  	
  2,500

  	
   

  	
  100

  	
  %

  	
  $

  	
  2,500

  	
   

  
	
  Fall

  	
   

  	
  $

  	
  25,000

  	
   

  	
  10

  	
  %

  	
  $

  	
  2,500

  	
   

  	
  100

  	
  %

  	
  $

  	
  2,500

  	
   

  
	
  Total

  	
   

  	
  $

  	
  50,000

  	
   

  	
   

  	
   

  	
  $

  	
  5,000

  	
   

  	
   

  	
   

  	
  $

  	
  5,000

  	
   

  

 

3

 

CASE
2:                 Assume the
Participating Employee’s annual base salary is $50,000, his or her Bonus
Percentage is 10%, the Company’s Earnings Per Share Percentage
for the Spring performance period is 100% and the Company’s Earnings Per Share Percentage
for the Fall performance period is 0:

 

	
  Season

  	
   

  	
  Salary for

  Performance

  Period

  	
   

  	
  Bonus %

  	
   

  	
  Maximum

  Bonus

  	
   

  	
  EPS %

  	
   

  	
  Bonus

  Amount

  	
   

  
	
  Spring

  	
   

  	
  $

  	
  25,000

  	
   

  	
  10

  	
  %

  	
  $

  	
  2,500

  	
   

  	
  100

  	
  %

  	
  $

  	
  2,500

  	
   

  
	
  Fall

  	
   

  	
  $

  	
  25,000

  	
   

  	
  10

  	
  %

  	
  $

  	
  2,500

  	
   

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  
	
  Total

  	
   

  	
  $

  	
  50,000

  	
   

  	
   

  	
   

  	
  $

  	
  5,000

  	
   

  	
   

  	
   

  	
  $

  	
  2,500

  	
   

  

 

CASE
3:                 Assume the
Participating Employee’s annual base salary is $50,000, his or her Bonus Percentage
is 10%, the Company’s Earnings Per Share Percentage
for the Spring performance period is 50% and the Company’s Earnings Per Share Percentage
for the Fall performance period is 10%:

 

	
  Season

  	
   

  	
  Salary for

  Performance

  Period

  	
   

  	
  Bonus %

  	
   

  	
  Maximum Bonus

  	
   

  	
  EPS %

  	
   

  	
  Bonus Amount

  	
   

  
	
  Spring

  	
   

  	
  $

  	
  25,000

  	
   

  	
  10

  	
  %

  	
  $

  	
  2,500

  	
   

  	
  50

  	
  %

  	
  $

  	
  1,250

  	
   

  
	
  Fall

  	
   

  	
  $

  	
  25,000

  	
   

  	
  10

  	
  %

  	
  $

  	
  2,500

  	
   

  	
  10

  	
  %

  	
  $

  	
  250

  	
   

  
	
  Total

  	
   

  	
  $

  	
  50,000

  	
   

  	
   

  	
   

  	
  $

  	
  5,000

  	
   

  	
   

  	
   

  	
  $

  	
  1,500

  	
   

  

 

4Exhibit
10.2

 

THE J.
JILL GROUP, INC.

2005 FALL
SEASON SUPPLEMENTAL EXECUTIVE

BONUS PLAN

 

Purpose

 

This 2005 Fall Season
Supplemental Executive Bonus Plan (the “Supplemental Bonus Plan”) is
designed to provide supplemental financial reward to senior executives of The
J. Jill Group, Inc. (the
“Company”) for
their contribution toward the Company’s exceeding its financial goals for the
two fiscal quarters ending December 31, 2005 (the “Performance Period”).

 

Participation

 

•                  A “Participating Executive”
shall mean each of the following employees of the Company:  (i) the President and Chief Executive
Officer; and (ii) any Executive Vice President.

 

•                  No Participating Executive shall be
entitled to receive a bonus under this Supplemental Bonus Plan unless the Participating
Executive satisfies the eligibility criteria set forth below.

 

Eligibility
Criteria

 

•                  A Participating Executive who is in
performance counseling at any time during the Performance Period will not be
eligible for a bonus for the Performance Period.

 

•                  To be eligible to receive a bonus for
the Performance Period, a Participating Executive must be actively employed by
the Company for a minimum of three months in the Performance Period.  Time on leave does not count as active
employment.  Employment by a subsidiary
of the Company shall be considered employment by the Company for purposes of
this Supplemental Bonus Plan.

 

•                  To be eligible to receive a bonus for
the Performance Period, a Participating Executive must be employed on the last
day of the Performance Period.

 

 

Additional
Bonuses

 

Nothing in this
Supplemental Bonus Plan shall be deemed to limit the authority of the Board of
Directors, the Compensation Committee of the Board of Directors or the
President and CEO to award additional bonuses outside this Supplemental Bonus
Plan in their discretion.

 

Payments

 

Bonus payments under this
Supplemental Bonus Plan will be made promptly following the close of the
Performance Period.

 

Calculation of Supplemental Bonus
Payment

 

•                  Definitions:

 

•                  “Earnings
Per Share Target” for the Performance Period means the Company’s fully
diluted earnings per share target for the Performance Period as set forth in
the Company’s 2005 Financial Plan.

 

•                  “Supplemental
Bonus Earnings Per Share Percentage” for the Performance Period means a
fraction, the numerator of which is the Company’s Supplemental Bonus
Preliminary Earnings Per Share for the Performance Period minus the Company’s
Earnings Per Share Target for the Performance Period and the denominator of
which is $0.25, expressed as a percentage. 

 

•                  The
“Supplemental Bonus Percentage” for a Participating Executive shall be a
percentage assigned to the Participating Executive for the purpose of
calculating the Participating Executive’s bonus, if any, under this Supplemental
Bonus Plan.  Supplemental Bonus
Percentages shall be determined by the Board of Directors or the Compensation
Committee of the Board of Directors. 

 

•                  “Supplemental
Bonus Preliminary Earnings Per Share” for the Performance Period means the
amount the Company’s fully diluted earnings per share for the Performance
Period would be if no bonuses under this Supplemental Bonus Plan were paid for
the Performance Period (but taking into account payment of bonuses for the
Performance Period, if any, under the Company’s Amended and Restated
2005 Incentive Compensation Plan). 

 

•                  Each “Supplemental Bonus Unit”
for a Participating Executive means a Participating Executive’s Supplemental
Bonus Percentage times the base salary paid to him or her for the Performance Period.

 

2

 

•                  If
the Company’s Supplemental Bonus Preliminary Earnings Per Share for the
Performance Period are less than or equal to the Company’s Earnings Per Share
Target for the Performance Period, no bonuses shall be paid under the
Supplemental Bonus Plan.

 

•                  If the Company’s Supplemental Bonus
Preliminary Earnings Per Share for the Performance Period are greater than the
Company’s Earnings Per Share Target for the Performance Period, then each
eligible Participating Executive shall receive a bonus under the Supplemental
Bonus Plan as follows:

 

	
  Supplemental Bonus Earnings

  Per Share Percentage

  	
   

  	
  Number of Supplemental Bonus Units

  	
   

  
	
  Less than 20%

  	
   

  	
  0

  	
   

  
	
  At least 20% but
  less than 40%

  	
   

  	
  1

  	
   

  
	
  At least 40% but
  less than 60%

  	
   

  	
  2

  	
   

  
	
  At least 60% but
  less than 80%

  	
   

  	
  3

  	
   

  
	
  At least 80% but
  less than 100%

  	
   

  	
  4

  	
   

  
	
  100% or more

  	
   

  	
  5

  	
   

  

 

Example

 

Assume the Participating
Executive’s annual base salary is $400,000, his or her Supplemental Bonus
Percentage is 10% and the Company’s Supplemental Bonus Earnings Per Share
Percentage for the Performance Period is 33%:

 

	
  Salary for

  Performance

  Period

  	
   

  	
  Supplemental

  Bonus %

  	
   

  	
  Supplemental

  Bonus EPS %

  	
   

  	
  Supplemental

  Bonus Units

  	
   

  	
  Supplemental

  Bonus Amount

  	
   

  
	
  $

  	
  200,000

  	
   

  	
  10

  	
  %

  	
  33

  	
  %

  	
  1

  	
   

  	
  $

  	
  20,000

  	
   

  
												

 

3

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