THE J.JILL GROUP, INC. 2005 FALLSEASON SUPPLEMENTAL EXECUTIVE BONUS PLAN
Exhibit 10.2
THE J. JILL GROUP, INC.
2005 FALL SEASON SUPPLEMENTAL EXECUTIVE
BONUS PLAN
Purpose
This 2005 Fall Season Supplemental Executive Bonus Plan (the Supplemental Bonus Plan) is designed to provide supplemental financial reward to senior executives of The J. Jill Group, Inc. (the Company) for their contribution toward the Companys exceeding its financial goals for the two fiscal quarters ending December 31, 2005 (the Performance Period).
Participation
A Participating Executive shall mean each of the following employees of the Company: (i) the President and Chief Executive Officer; and (ii) any Executive Vice President.
No Participating Executive shall be entitled to receive a bonus under this Supplemental Bonus Plan unless the Participating Executive satisfies the eligibility criteria set forth below.
Eligibility Criteria
A Participating Executive who is in performance counseling at any time during the Performance Period will not be eligible for a bonus for the Performance Period.
To be eligible to receive a bonus for the Performance Period, a Participating Executive must be actively employed by the Company for a minimum of three months in the Performance Period. Time on leave does not count as active employment. Employment by a subsidiary of the Company shall be considered employment by the Company for purposes of this Supplemental Bonus Plan.
To be eligible to receive a bonus for the Performance Period, a Participating Executive must be employed on the last day of the Performance Period.
Additional Bonuses
Nothing in this Supplemental Bonus Plan shall be deemed to limit the authority of the Board of Directors, the Compensation Committee of the Board of Directors or the President and CEO to award additional bonuses outside this Supplemental Bonus Plan in their discretion.
Payments
Bonus payments under this Supplemental Bonus Plan will be made promptly following the close of the Performance Period.
Calculation of Supplemental Bonus Payment
Definitions:
Earnings Per Share Target for the Performance Period means the Companys fully diluted earnings per share target for the Performance Period as set forth in the Companys 2005 Financial Plan.
Supplemental Bonus Earnings Per Share Percentage for the Performance Period means a fraction, the numerator of which is the Companys Supplemental Bonus Preliminary Earnings Per Share for the Performance Period minus the Companys Earnings Per Share Target for the Performance Period and the denominator of which is $0.25, expressed as a percentage.
The Supplemental Bonus Percentage for a Participating Executive shall be a percentage assigned to the Participating Executive for the purpose of calculating the Participating Executives bonus, if any, under this Supplemental Bonus Plan. Supplemental Bonus Percentages shall be determined by the Board of Directors or the Compensation Committee of the Board of Directors.
Supplemental Bonus Preliminary Earnings Per Share for the Performance Period means the amount the Companys fully diluted earnings per share for the Performance Period would be if no bonuses under this Supplemental Bonus Plan were paid for the Performance Period (but taking into account payment of bonuses for the Performance Period, if any, under the Companys Amended and Restated 2005 Incentive Compensation Plan).
Each Supplemental Bonus Unit for a Participating Executive means a Participating Executives Supplemental Bonus Percentage times the base salary paid to him or her for the Performance Period.
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If the Companys Supplemental Bonus Preliminary Earnings Per Share for the Performance Period are less than or equal to the Companys Earnings Per Share Target for the Performance Period, no bonuses shall be paid under the Supplemental Bonus Plan.
If the Companys Supplemental Bonus Preliminary Earnings Per Share for the Performance Period are greater than the Companys Earnings Per Share Target for the Performance Period, then each eligible Participating Executive shall receive a bonus under the Supplemental Bonus Plan as follows:
Supplemental Bonus Earnings |
| Number of Supplemental Bonus Units |
|
Less than 20% |
| 0 |
|
At least 20% but less than 40% |
| 1 |
|
At least 40% but less than 60% |
| 2 |
|
At least 60% but less than 80% |
| 3 |
|
At least 80% but less than 100% |
| 4 |
|
100% or more |
| 5 |
|
Example
Assume the Participating Executives annual base salary is $400,000, his or her Supplemental Bonus Percentage is 10% and the Companys Supplemental Bonus Earnings Per Share Percentage for the Performance Period is 33%:
Salary for |
| Supplemental |
| Supplemental |
| Supplemental |
| Supplemental |
| ||
$ | 200,000 |
| 10 | % | 33 | % | 1 |
| $ | 20,000 |
|
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