Ultimate Electronics, Inc. Executive Bonus Plans for Fiscal Years 2003 and 2004
Ultimate Electronics, Inc. established bonus plans for its executive officers for the fiscal years ending January 31, 2003, and January 31, 2004. For 2003, bonuses were awarded from a pool based on a percentage of pretax earnings above certain thresholds, with additional quarterly and discretionary bonuses possible. For 2004, executives were eligible for annual bonuses targeted at 50% of salary (60% for the CEO), with actual payouts determined by a matrix based on operating income and same-store sales growth. The plan incentivizes meeting and exceeding financial and sales goals.
QuickLinks -- Click here to rapidly navigate through this document
EXHIBIT 10.15
Ultimate Electronics, Inc.
Bonus Plans
for Fiscal Years ended
January 31, 2003 and January 31, 2004
Fiscal 2003. Under our 2003 bonus plan, our executive officers may be awarded bonuses from an annual bonus pool, quarterly performance bonuses and discretionary bonuses determined by the Board. In fiscal 2003, the annual bonus pool was equal to 8.43% of pretax earnings, prior to any bonus accrual, in excess of $20,832,773 up to $27,953,778, plus 14% of pretax earnings, prior to any bonus accrual, in excess of $27,953,778.
Fiscal 2004. For fiscal 2004, executives are eligible for an annual bonus targeted at 50% of the executive's salary for all executives except the chief executive officer; the chief executive officer is eligible for an annual bonus targeted at 60% of his salary. The amount of the bonus is based on a payout matrix with a comparable store sales goal of between 2.0% and 3.1% and pre-bonus operating income goal of between $17.7 million and $18.4 million. If operating income is below the goal, the matrix is designed to encourage executives to achieve income targets before focusing on sales growth. Once the income goal is exceeded, the matrix is designed to balance the effect of sales and profit increases and rewards increasing performance on both measures with additional payouts. The bonuses will be calculated using the matrix below:
Pre-Bonus Operating Income Attainment ($MM)
| % of Income Goal: | <80% | 80% - 90% | 90% - 98% | 98% - 102% | 102% - 110% | 110% - 125% | 125% - 150% | >150% | ||||||||
| Dollar Amount: | <$15.1 | $15.1 - $17.0 | $17.0 - $18.5 | $18.5 - $19.3 | $19.3 - $20.8 | $20.8 - $23.6 | $23.6 - $28.4 | >$28.4 | ||||||||
| Same Store Sales Growth | ||||||||||||||||
| <0% | 0% | 30% | 50% | 70% | 85% | 90% | 100% | 110% | ||||||||
| 0% - 1.3% | 0% | 35% | 55% | 80% | 90% | 100% | 110% | 120% | ||||||||
| 1.3% - 2.0% | 0% | 40% | 60% | 90% | 100% | 110% | 120% | 130% | ||||||||
| 2.0% - 3.1% | 0% | 45% | 65% | 100% | 110% | 120% | 130% | 140% | ||||||||
| 3.1% - 3.8% | 0% | 50% | 70% | 110% | 115% | 125% | 140% | 150% | ||||||||
| 3.8% - 6.4% | 0% | 50% | 75% | 115% | 125% | 135% | 150% | 160% | ||||||||
| >6.4% | 0% | 50% | 80% | 120% | 130% | 140% | 160% | 170% |
QuickLinks
- EXHIBIT 10.15
