Document:

Compensation Arrangements for Named Executive Officers

 EXHIBIT 10.16 
 Compensation Arrangements for the Named Executive Officers 
 Set forth below is a summary of the
compensation paid, or that may be paid by Elizabeth Arden, Inc. (the “Company”) to its named executive officers (defined in Regulation S-K Item 402(a)(3) (the “Named Executives”)) in their positions as of June 30, 2006.
All of the Company’s executive officers are at-will employees whose compensation and employment status may be changed at any time in the discretion of the Company’s Board of Directors (the “Board”), subject only to the terms of
the Severance and Change-in-Control Arrangements described below. 
 Base Salary 
 Effective April 1, 2006, the Named Executives are scheduled to receive the following annual base salaries in their current positions: 
  

					
	 Named Executive
	  	 Position
	  	Salary($)
	 E. Scott Beattie
	  	Chairman of the Board and Chief Executive Officer	  	728,000
	 Paul West
	  	President and Chief Operating Officer(1)	  	494,500
	 Stephen J. Smith
	  	Executive Vice President and Chief Financial Officer	  	360,000
	 Ronald Rolleston
	  	Executive Vice President, Global Fragrance Marketing	  	330,000
	 Jacobus A.J. Steffens
	  	Executive Vice President, General Manager - International	  	410,000

	(1)	Effective on August 16, 2006, Mr. West was elected to the Board as Vice Chairman and is no longer the President and Chief Operating Officer of the Company. Mr. West,
as an employee of the Company, will not be entitled to receive compensation as a director but will be paid a salary commensurate with his responsibilities to the Company, will receive stock incentive grants consistent with non-employee Directors and
will be entitled to a bonus, as determined by the Company’s Chief Executive Officer in consultation with the Compensation Committee. 

 Annual Management Bonus Program and Long-Term Incentive Plans 
 Cash Bonuses 
 The Named Executives are eligible to participate in two cash bonus plans: (i) the Company’s 2005 Performance Bonus Plan (the “Performance
Plan”), and (ii) the 2005 Management Bonus Plan (the “Management Plan”), on the basis of performance goals established for them under the applicable plan and in accordance with the arrangements established by the Compensation
Committee for the payment of cash bonuses (“Bonus”). The Management Plan was approved by the shareholders of the Company at the annual shareholders meeting on November 16, 2005. 
 Cash bonus awards under the Performance Plan are based on achievement of various key performance indicators or business criteria or completion of certain
projects that benefit the Company and apply to the individual participant or the participant’s business unit (the “Individual Criteria”) and may be a single goal or a range with a minimum goal up to a maximum goal, with corresponding
increases in the bonus up the maximum award set by the 

 Compensation Committee of the Board (the “Compensation Committee”). For the fiscal year ended June 30,
2007, the Compensation Committee determined that cash bonuses only will be paid to the Named Executives under the Management Plan. 
 During
the fiscal year ending June 30, 2007, the Named Executives listed in the following table are eligible to earn cash bonus payments (the “Bonus”) under the Management Plan upon the Company’s achievement of performance goals
described in the notes to the following table: 
  

												
	 Named Executive
	  	 Position
	  	 Percentage
 of Base
 Salary
 Payable if
 all Quarterly
 Targets are
 Achieved(1)
	 	 	 Percentage
 of Base
 Salary
 Payable if
 Goal Level

Annual
 Target
 is
 Achieved(2)
	 	 	 Additional
 Percentage
 of Base
 Salary
 Payable if
 Superior
 Level
 Annual
 Target is
 Achieved(3)
	 
	 E. Scott Beattie
	  	Chairman of the Board and Chief Executive Officer	  	51	%	 	34	%	 	42.5	%
	 Paul West
	  	President and Chief Operating Officer	  	—  	 	 	—  	 	 	—  	 
	 Stephen J. Smith
	  	Executive Vice President and Chief Financial Officer	  	30	%	 	20	%	 	25	%
	 Ronald Rolleston
	  	Executive Vice President, Global Fragrance Marketing	  	30	%	 	20	%	 	25	%
	 Jacobus A.J. Steffens
	  	Executive Vice President, General Manager - International	  	30	%	 	20	%	 	25	%

	(1)	For the fiscal year ended June 30, 2007, the Named Executives, other than Mr. West, will be able to earn 15% of their par bonus potential (which is 85% of base salary for
Mr. Beattie and 50% of base salary for all other Named Executives other than Mr. West) each fiscal quarter (for a total of 60% of their par bonus potential) if the Company achieves the applicable quarterly earnings (loss) per diluted share
(“EPS”) targets. 

	(2)	The Goal Level Annual Target Bonus under the Management Plan is payable if the Company achieves its annual EPS target for the fiscal year ended June 30, 2007.

	(3)	In addition to the Goal Level Annual Target Bonus, the Superior Level Annual Target Bonus under the Management Plan is payable if the Company achieves the superior EPS target for
the fiscal year ended June 30, 2007. 

 Long Term Incentive Plans 
 The Named Executives participate in the Company’s long-term incentive program (the “LTI Program”), which currently involves the award of
stock options, performance-based restricted stock, service-based restricted stock and market-based restricted stock as determined by the Compensation Committee pursuant to the Company’s 2004 Stock Incentive Plan (filed as 
  

 - 2 - 

 Annex E as part of the Company’s Proxy Statement dated May 14, 2004). Under the LTI Program, target annual
long-term incentives (“LTI”), as a percent of salary, for the following Named Executives for fiscal 2005 are as set forth in the following table: 
  

						
	 Named Executive
	  	 Position
	  	Target
LTI %	 
	 E. Scott Beattie
	  	Chairman of the Board and Chief Executive Officer	  	225	%
	 Paul West
	  	President and Chief Operating Officer	  	—  	 
	 Stephen J. Smith
	  	Executive Vice President and Chief Financial Officer	  	100	%
	 Ronald Rolleston
	  	Executive Vice President, Global Marketing	  	100	%
	 Jacobus A.J. Steffens
	  	Executive Vice President, General Manager - International	  	100	%

 While the allocation of the LTI components fluctuate from time-to-time, LTI is planned to be
allocated to the Named Executives one-third to stock options, one-sixth to performance-based restricted stock, one sixth to service-based restricted stock and one-third to market-based restricted stock based on a value of the equity awards as
determined by the Compensation Committee. Actual LTI grants may vary from the target LTI percentages based on the Compensation Committee’s assessment of the Named Executive’s job responsibilities, individual performance and market
conditions. 
 Performance-Based Restricted Common Stock 
 Effective August 21, 2006, the Company awarded shares of performance-based restricted common stock (“PBRS”) as set forth in the table below to the Named Executives. The PBRS will vest in full on the
second business day after the Company’s financial results for the fiscal year ended June 30, 2009 are released to the public, but only if the Named Executive receiving the grant is employed by the Company at the time of vesting and the
Company achieves a specified cumulative EPS target for the fiscal years ended June 30, 2007, June 30, 2008 and June 30, 2009 (the “PBRS Target”). If, however, the Company achieves cumulative EPS during that same
three-year fiscal period that is $.30 per share less than the PBRS Target (the “PBRS Threshold”), 50% percent of the PBRS granted to a Named Executive will vest. For cumulative EPS results between the PBRS Threshold and the PBRS Target,
the number of shares of PBRS that will vest will be determined based on interpolation. 
  

					
	 Named Executive
	  	 Position
	  	PBRS
Awarded
	 E. Scott Beattie
	  	Chairman of the Board and Chief Executive Officer	  	15,800
	 Paul West
	  	President and Chief Operating Officer	  	—  
	 Stephen J. Smith
	  	Executive Vice President and Chief Financial Officer	  	5,600
	 Ronald Rolleston
	  	Executive Vice President, Global Fragrance Marketing	  	4,700
	 Jacobus A.J. Steffens
	  	Executive Vice President, General Manager - International	  	2,400

 Service-Based Restricted Common Stock 
 Effective August 21, 2006, the Named Executives listed in the following table were granted 
  

 - 3 - 

 shares of the Company’s service-based restricted common stock (“SBRS”) that vest over a three year period
in equal thirds two business days after the Company’s release of its financial results for its fiscal years ending June 30, 2007, June 30, 2008 and June 30, 2009, as applicable, if the Named Executive is still employed by
the Company: 
  

					
	 Named Executive
	  	 Position
	  	SBRS
Awarded
	 E. Scott Beattie
	  	Chairman of the Board and Chief Executive Officer	  	15,800
	 Paul West
	  	President and Chief Operating Officer	  	—  
	 Stephen J. Smith
	  	Executive Vice President and Chief Financial Officer	  	5,600
	 Ronald Rolleston
	  	Executive Vice President, Global Fragrance Marketing	  	4,700
	 Jacobus A.J. Steffens
	  	Executive Vice President, General Manager - International	  	2,400

 Stock Options 
 On August 16, 2006, the Board approved a grant of stock options effective on August 21, 2006 for shares of the Company’s common stock, $.01 par value (the “Common Stock”), to the Named
Executives as listed in the table below. The stock options vest over a three year period in equal thirds two business days after the Company’s release of its financial results for its fiscal years ending June 30, 2007, June 30,
2008 and June 30, 2009, as applicable if the Named Executive is still employed by the Company. The exercise price of the stock options is $15.00 per share, which represents the closing price of the Common Stock on the date of grant. The stock
options will expire ten years from the date of grant. 
  

					
	 Named Executive
	  	 Position
	  	Options
Awarded
	 E. Scott Beattie
	  	Chairman of the Board and Chief Executive Officer	  	67,300
	 Paul West
	  	President and Chief Operation Officer	  	—  
	 Stephen J. Smith
	  	Executive Vice President and Chief Financial Officer	  	24,000
	 Ronald Rolleston
	  	Executive Vice President, Global Fragrance Marketing	  	20,000
	 Jacobus A.J. Steffens
	  	Executive Vice President, General Manager - International	  	10,000

 Benefit Plans and Other Arrangements 
 In their current positions, the Named Executives, with the exception of Mr. Steffens who is based in Geneva, Switzerland, are eligible to:

  

	 	•	 	Participate in the Company’s broad-based benefit programs generally available to its salaried employees, including health, disability and life insurance programs, qualified
401(k) plans and (other than with respect to the Company’s Chief Executive Officer) the ability to purchase shares of the Company’s common stock at a discount pursuant to the Amended 2002 Employee Stock Purchase Plan (the “ESPP”)
(filed as Exhibit 10.4 to the Company’s 10-Q for the quarter ended April 26, 2003). 

  

	 	•	 	Receive a deferred cash award once a year equal to 3% of the Named Executive’s cash compensation (base salary plus cash bonus earned during the prior twelve-month period),
which will become payable, one year from the date of award if the Named Executive is 

  

 - 4 - 

 still employed by the Company (the “Deferred Cash Award”). The Deferred Cash Award is an annual
ongoing award made available to all United States and Puerto Rico-based participants in the Company’s management bonus program. 
  

	 	•	 	Receive certain perquisites offered by the Company to executive officers, including an automobile allowance, tax preparation and financial planning services and, excluding
Mr. Smith, participate in an executive disability program. 

 Mr. Steffens is eligible to participate in the
Company’s broad-based benefit programs generally available to all salaried employees in Geneva, Switzerland, including health, disability, life and other insurance programs, a lunch allowance program, a pension plan and the ability to purchase
shares of the Company’s common stock at a discount under the ESPP. In addition, the Company pays pre-university education expenses for Mr. Steffen’s children as long as he is employed by the Company. 
 Severance and Change-in-Control Arrangements 
 In
addition to the benefit plans and other arrangements listed above, each of our Named Executives (other than Mr. West) is entitled to benefits under a severance and change-in-control arrangement. Under the arrangement, the Named Executive
receives severance benefits, based on his or her position and responsibility, in the event the executive’s employment is terminated without “cause” and is not the result of a resignation or death. Currently, the severance benefit for
the Named Executives is as follows: (a) Mr. Beattie, 24 months of base salary; (b) Mr. Smith, 24 months of base salary plus preceding year’s bonus; (c) Mr. Rolleston, 12 months of base salary; and
(d) Mr. Steffens, 12 months of base salary and par bonus. 
 Under the change-in-control arrangement, a severance benefit is paid
based on a “base amount” in the event there is an actual or constructive termination of employment (e.g., decrease in pay or job responsibility) following a change in control, except as noted below. “Base amount” is the average
base salary plus average cash bonus the executive has received over the most recent five-year period. The monthly base amount is the base amount divided by twelve. Currently, the severance benefit due to a change in control for the Named Executives
is as follows: (a) Mr. Beattie, 35.88 months of monthly base amount; (b) Mr. Smith, 24 months of base salary plus preceding year’s bonus; (c) Mr. Rolleston, 18 months of monthly base amount; and
(d) Mr. Steffens, 12 months of base salary and par bonus. 
  

 - 5 -Board of Directors Compensation Arrangements

 EXHIBIT 10.17 
 DIRECTOR COMPENSATION 
 The board of directors’ (the “Board”) general policy on
director compensation is that compensation for independent directors should consist of both cash and equity-based compensation. Directors who are our employees (currently Mr. Beattie and Mr. West) are not paid for board service in addition
to their regular employee compensation. Effective as of the next annual meeting of shareholders set for November 15, 2006, non-employee directors (currently Messrs. Berens, Mauran, Tatham and Thomas and Ms. Clark) will be paid an annual
retainer of $35,000 and a fee of $1,500 for each meeting of the Board attended in person or a committee of the Board attended in person on a date separate from a meeting of the Board meeting. In the event a committee meeting is on the same date as a
meeting of the Board, the Board member will receive $1,000 for attending in person the committee meeting. Board members will receive $750 for any meetings attended by telephone. A $10,000 annual retainer will also be paid to the audit committee
chairperson, a $5,000 annual retainer will be paid to the compensation committee chairperson and a $3,500 annual retainer will be paid to the nominating and corporate governance chairperson. In addition to the cash compensation, non-employee
directors will receive a grant of stock options for 6,000 shares of Common Stock under the Company’s Non-Employee Director Stock Option Plan upon re-election to the Board at each annual meeting of shareholders of the Company. The options are
exercisable three years after the date of grant, and the exercise price for each option will be equal to the closing price of the Common Stock on the date of grant. In addition, members of the Board are reimbursed for all expenses incurred in
connection with their activities as directors.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]