Remington Arms Company 2007 Annual Incentive Compensation Plan Description
Remington Arms Company, Inc. established the 2007 Annual Incentive Compensation Plan, approved by its Compensation Committee, to provide cash bonuses to its Named Executive Officers and select employees. Bonuses are based on the company's Adjusted EBITDA performance for the 2007 fiscal year, with payouts increasing as performance exceeds set thresholds. Participants can earn a percentage of their target bonus depending on results, with a cap at 110% of the target. Additionally, 10% of the bonus may be withheld if certain monthly working capital goals are not achieved.
Exhibit 10.47
Description of 2007 Incentive Compensation Plan
The Compensation Committee (the “Committee”) of the Board of Directors of Remington Arms Company, Inc. (the “Company”) approved the 2007 Annual Incentive Compensation Plan (the “2007 Plan”) on January 26, 2007. The 2007 Plan is a cash bonus plan involving the Company’s Named Executive Officers and certain other employees. Under the 2007 Plan, participants are generally entitled to receive a cash bonus if the Company’s Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), as adjusted for certain non-recurring or unusual transactions, exceeds certain target thresholds for the fiscal year ending December 31, 2007. Each participant is generally entitled to receive 5% of his target bonus for each 1% of Adjusted EBITDA beginning at 81% of the Adjusted EBITDA threshold up to a maximum of 110% of Adjusted EBITDA.
In connection with its approval of the 2007 Plan, on February 8, 2007 the Committee approved a working capital holdback of 10% of the bonus for the Named Executive Officers and certain other individuals if specific monthly goals relating to working capital are not met.
