Safety Components International Management Incentive Bonus Plan Agreement (FY04–CY04)

Summary

This agreement outlines the Management Incentive Bonus Plan (MIB) for Safety Components International, as approved by the Compensation Committee and Board. The plan sets a bonus pool based on company operating income and details how bonuses are calculated and distributed to management, using both formula-based and discretionary criteria. Payouts depend on performance against budget, with specific thresholds and caps. The plan applies to the current fiscal year (ending December 31, 2003) and the following calendar year. Senior management determines discretionary allocations once performance targets are met.

EX-10.22 3 d58726_ex10-22.txt MATERIAL CONTRACTS Exhibit 10.22 [LOGO] SAFETY COMPONENTS Human Resources INTERNATIONAL November 12, 2003 To: Andy Goldfarb Chairman of Compensation Committee From: Wayne Tamme Re: Management Incentive Bonus Plan Andy: This document should serve to confirm the details of the Management Incentive Bonus plan (MIB) which was recently presented and agreed upon. o The total bonus pool is determined as follows: At or above 100% of budget* - 7.5% of pre-bonus consolidated operating income. Below 100% of budget - Payout is based on the fixed formula defined below. * For this purpose, operating income is defined as earnings before interest, taxes and such costs arising from board/shareholder actions not anticipated in the budget and identified prior to year end and approved by the Compensation Committee and management. o There are two components for payout: formula-based and nonformula-based o The formula-based criteria is as follows: Business Units: 25% - Budgeted unit operating income 25% - Budgeted unit ROA 15% - Budgeted consolidated operating income 15% - Budgeted consolidated ROA 20% - Personal objectives Corporate: 40% - Budgeted consolidated operating income 40% - Budgeted consolidated ROA 20% - Personal objectives The entry-level performance threshold is 75% performance to budget. G. Wayne Tamme Vice President, Human Resources ***@*** 41 Stevens Street - Greenville, South Carolina 29605 Tel. 864 ###-###-#### - Fax. 864 ###-###-#### Below 75% performance, the payout is zero (0%). At 75% performance, the payout is 50% of formula. The payout increases at a rate of 2% for each 1% increment of performance up to 100% performance. Above 100% performance, the payout increases at a rate of 1% for each 1% increment of performance. The payout is capped at 110% o The nonformula-based criteria is as follows: This portion of the plan activates upon attainment of 100% performance. The funds available for distribution is the bonus pool balance after all formula-based allocations have been made. Individual allocations to be determined by senior management o The current year (FY 04) will be shorted by 3 months to end on 12/31/03. This date will also be the basis of the bonus pool and individual allocation calculations. The MIB calculations will be prorated accordingly. o This plan is effective for the current year, FY 04, and next year, CY 04 We request that you review the above information and the Board sign its approval. /s/ Wayne Tamme Approved: Date: /s/ Andy Goldfarb 11/12/03 - ---------------------------------------------- Andy Goldfarb, Chairman Compensation Committee /s/ Carroll R. Wetzel 11/12/03 - ---------------------------------------------- Carroll R. Wetzel, Jr., Board Chairman /s/ W. Allan Hopkins 11/12/03 - ---------------------------------------------- W. Allan Hopkins, Board Member /s/ Ben Waide 11/12/03 - ---------------------------------------------- Ben Waide, III, Board Member