2010 Executive Incentive Payment Plan for Cobra Electronics Corporation
This agreement outlines Cobra Electronics Corporation's 2010 Executive Incentive Payment Plan. It provides eligible executives with incentive payments based on the company's pre-tax profit performance. Executives may receive up to 17.5% of their annual base salary, with certain executives eligible for an additional 17.5% if higher profit targets are met. Payments are determined after the Board approves the audited financial results and are distributed no later than March 15, 2011. The plan is subject to approval and possible changes by the Compensation Committee.
Exhibit 10.1
2010 EXECUTIVE INCENTIVE PAYMENT PLAN
1. Target Award for each Participant
· 17.5 percent of annual base salary
· Additional 17.5 percent of annual base salary (Michael Smith and Anthony Mirabelli) - if pre-tax profit exceeds a higher pre-established performance level
2. Criteria
100 percent of the “target” award for each participant tied to Cobra Electronics Corporation exceeding target pre-tax profit levels without regard to extraordinary or other nonrecurring or unusual items in accordance with generally accepted accounting principles unless the Compensation Committee determines that any such item shall not be disregarded.
3. Payments
If performance goal is exceeded, each participant will receive his pro rata portion (calculated based on the “target” award of such participant measured against the aggregate target awards of all participants) of such excess until all of the participants in the plan receive their full “target” awards.
4. Other Terms
· Pre-tax profit will be calculated based on Cobra Electronics’ consolidated results
· Incentive payments will be processed with the next regularly scheduled payroll after the approval by the Board of Directors of 2010 audited consolidated results, but not later than March 15, 2011, subject to changes approved by the Compensation Committee
1
