CROCS, INC. Executive Incentive Bonus Plan
EXHIBIT 10.38
CROCS, INC.
Executive Incentive Bonus Plan
On August 3, 2006, the Compensation Committee of the Board of Directors of Crocs, Inc. (the “Company”) approved an incentive bonus plan for certain officers of the Company. The incentive bonus plan provides that Ronald R. Snyder, John P. McCarvel, Peter S. Case, Michael C. Margolis, Caryn D. Ellison, Scott Crutchfield, Erik Rebich, and Lyndon V. Hanson, III will be eligible for two levels of bonuses based upon the earnings of the Company. The first level of bonus (“Level 1 Bonus”) is contingent on the Company achieving earnings per share of $0.78, excluding share-based compensation expense, for the year ending December 31, 2006, which would represent an increase of approximately 34.5% from the earnings per share recorded for the year ended December 31, 2005. The second level of bonus (“Level 2 Bonus”) is contingent on the Company achieving earnings per share of $0.98, excluding share-based compensation expense, for the year ending December 31, 2006, which would represent an increase of approximately 69.0% from the earnings per share recorded for the year ended December 31, 2005. The potential bonuses under the incentive bonus plan are set forth as a percentage of the relevant officer’s base salary and are as follows:
| Name |
|
|
| Position |
| Level 1 Bonus % |
| Level 2 Bonus % |
| ||||
| Ronald R. Snyder |
| Chief Executive Officer and President |
|
| 100 | % |
|
| 100 | % |
| ||
| John P. McCarvel |
| Senior Vice President—Global Operations |
|
| 80 | % |
|
| 80 | % |
| ||
| Peter S. Case |
| Chief Financial Officer |
|
| 60 | % |
|
| 30 | % |
| ||
| Michael C. Margolis |
| Vice President—Sales and Marketing |
|
| 50 | % |
|
| 50 | % |
| ||
| Caryn D. Ellison |
| Vice President—Finance |
|
| 50 | % |
|
| 25 | % |
| ||
| Scott Crutchfield |
| Vice President—Operations |
|
| 60 | % |
|
| 30 | % |
| ||
| Erik Rebich |
| General Counsel |
|
| 50 | % |
|
| 25 | % |
| ||
| Lyndon V. Hanson, III |
| Vice President—Customer Relations |
|
| 50 | % |
|
| 25 | % |
| ||
Of Michael C. Margolis’s incentive bonus, 75% is additionally contingent on the Company achieving revenues of at least $240 million for the year ending December 31, 2006, such that, if the revenue target is not met, Mr. Margolis may only earn a maximum Level 1 Bonus of 12.5% and a maximum Level 2 Bonus of 12.5%. No bonuses are payable on achievement of anything less than earnings per share of $0.55, excluding share-based compensation expense, for the year ending December 31, 2006. Bonuses will be scaled proportionally up from 70% of the Level 1 Bonus to the Level 1 Bonus for earnings per share in excess of $0.55 but less than $0.78 and up from the Level 1 Bonus to the Level 2 Bonus for earnings per share in excess of $0.78 but less than $0.98, excluding share-based compensation expense, for the year ending December 31, 2006.
