2008 Cash Bonus Plan Summary
Exhibit 10.2
2008 Cash Bonus Plan Summary
As reported in the FGX International Holdings Limited (the “Company”) form 8-K dated February 6, 2008, the Compensation Committee of the Board of Directors of the Company adopted the 2008 Cash Bonus Plan (the “Plan”) for the Company’s fiscal year ending January 3, 2009. Bonus payouts under the Plan will constitute Performance Units under the Company’s 2007 Incentive Compensation Plan. The Compensation Committee designated employees serving in the position of vice president and above of the Company (“Executive Officers”), and the Chief Executive Officer may designate certain other key employees of the Company or its subsidiaries, to participate in the Plan.
The Compensation Committee approved a target bonus amount, expressed as a percentage of salary, for each Executive Officer. The following table sets forth the target bonus percentage for the Company’s principal executive officer, principal financial officer and each other named executive officer at the time.
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| Target as a % of |
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| Executive Officer |
| Title |
| Base Salary |
|
| Alec Taylor |
| Chief Executive Officer |
| 50 |
|
| John Flynn Jr. |
| President |
| 50 |
|
| Gerald Kitchen |
| Exec. VP — Operations |
| 50 |
|
| Anthony Di Paola |
| Exec. VP — Chief Financial Officer |
| 50 |
|
| Steven Crellin |
| Exec. VP — Sales |
| 50 |
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Bonus payouts under the Plan will be based on the Company’s achievement of an earnings per share (EPS) goal for fiscal 2008 set by the Compensation Committee, as adjusted to exclude certain non-recurring items that occur outside of the ordinary course of the Company’s business operations. Achievement of the adjusted EPS goal will produce bonus payouts equal to the target amounts, while achievement of adjusted EPS between 95% and 110% of the adjusted EPS goal will produce a commensurate reduction or increase in the bonus payouts. There will be no bonus payout for achievement of adjusted EPS below 95% of the goal unless authorized by the Compensation Committee, and bonus payouts are capped at 110% of the target bonus amount.
After the end of the fiscal year, the Compensation Committee will evaluate the Company’s performance against the EPS goal and will determine whether a bonus payout is required for all participants. In general, a participant must remain an employee through the date of the bonus payout to be eligible for payment.
