Summary of Fiscal 2012 Management Incentive Plan for Tandy Brands Accessories, Inc.

Exhibit 10.1

Summary of
Fiscal 2012 Management Incentive Plan
for Tandy Brands Accessories, Inc.

Pursuant to authority granted by the Board of Directors of Tandy Brands Accessories, Inc. (the “Company”), on June 24, 2011, the Compensation Committee of the Company’s Board of Directors approved the Company’s fiscal 2012 management incentive plan, pursuant to which cash bonuses for the Company’s executive officers will be determined for fiscal 2012. Under the management incentive plan, target payout opportunities are expressed as a percentage of base salary, with threshold, target and maximum payout opportunities expressed as a percentage of the target award (actual payouts may generally range anywhere between the threshold and maximum percentages). No cash bonuses will be paid if threshold performance is not achieved. All executive officer payouts are subject to the approval of the Board of Directors.

Bonus amounts will vary depending on the Company’s performance against target goals. If the Company achieves (a) the threshold level, the participant would be eligible for 50% of the target bonus, (b) the target level, the participant would be eligible for 100% of the target bonus, and (c) the maximum level, the participant would be eligible for 200% of the target bonus. The actual bonus paid may be varied up to 20% higher or lower based on a subjective assessment of the individual’s performance and contribution to achieving the Company’s goals.

Payout opportunities are set at performance levels that, in the judgment of the Compensation Committee, will facilitate the Company’s overall growth and performance. In addition, the Board of Directors may, in its discretion, adjust the target performance measures to exclude one-time, non-operating items that may occur during the performance period.

For fiscal 2012, the Compensation Committee approved the following target payout opportunities and performance measures for the Company’s executive officers:

		Target Payout
		Opportunity				Performance
Executive Officer		(as a % of Base Salary)				Measures
Chief Executive Officer			75%			65% based on profit before tax
						35% based on net sales*
Chief Accounting Officer			30%			50% based on profit before tax
						30% based on net sales*
						20% based on certain components of the individual’s job function
Other Executive Officers			50%			50% based on profit before tax
						30% based on net sales*
						20% based on certain components of the individual’s job function