Ultimate Electronics, Inc. Bonus Plan for Fiscal Year Ended January 31, 2005
Ultimate Electronics, Inc. established a bonus plan for executive officers and vice presidents for the fiscal year ending January 31, 2005. Sixty percent of the annual bonus is based on the company's achievement of specific sales growth and operating income targets, with payouts determined by a set matrix. The remaining forty percent is a fixed bonus tied to individual performance objectives, as decided by the Compensation Committee. No bonuses are paid unless the company achieves at least $1 million in net income after bonuses are paid.
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EXHIBIT 10.14
ULTIMATE ELECTRONICS, INC.
BONUS PLAN
FOR FISCAL YEAR ENDED
JANUARY 31, 2005
Under our 2005 bonus plan, 60% of the annual incentive bonuses to be awarded to executive officers and vice presidents is based on a matrix that ties to the Company's budgeted comparable store sales and pre-tax, pre-bonus operating income, with a 100% payout upon obtaining the Company's comparable store sales goal of 3.5% to 5.0% and a pre-tax, pre-bonus operating income goal of $9.0 million to $10.49 million.
2005 BONUS PLAN MATRIX(1)
| Pre-bonus Operating Income | | | | | | | | | | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Pre-Tax, Pre-Bonus Operating Income Attainment ($MM) | |||||||||||||||||||
| Same Store Sales Growth | |||||||||||||||||||
| $1.5-$2.99 | $3.0-$4.49 | $4.5-$5.99 | $6.0-$7.49 | $7.5-$8.99 | $9.0-$10.49 | $10.5-$11.99 | $12.0-$13.49 | >$13.5 | |||||||||||
| 0% to < 1.0% | 30 | % | 40 | % | 50 | % | 55 | % | 65 | % | 75 | % | 85 | % | 100 | % | 110 | % | |
| 1.0% to < 2.0% | 35 | % | 45 | % | 55 | % | 60 | % | 70 | % | 80 | % | 90 | % | 110 | % | 120 | % | |
| 2.0% to < 3.5% | 40 | % | 60 | % | 60 | % | 70 | % | 75 | % | 90 | % | 100 | % | 120 | % | 130 | % | |
| 3.5% to < 5.0% | 45 | % | 60 | % | 70 | % | 75 | % | 80 | % | 100 | % | 110 | % | 130 | % | 140 | % | |
| 5.0% to < 7.5% | 50 | % | 60 | % | 75 | % | 80 | % | 90 | % | 110 | % | 120 | % | 140 | % | 150 | % | |
| 7.5% to < 10% | 50 | % | 60 | % | 75 | % | 90 | % | 100 | % | 120 | % | 130 | % | 150 | % | 160 | % | |
| > 10% | 50 | % | 60 | % | 75 | % | 100 | % | 110 | % | 130 | % | 140 | % | 160 | % | 170 | % | |
- (1)
- In order for any bonuses to be paid, the Company must have a net income of at least $1 million after bonus payout.
The remaining 40% of the annual incentive bonuses to be awarded to executive officers and vice presidents is a fixed dollar bonus based on the attainment of certain individual performance objectives by each executive officer or vice president, as determined in the sole discretion of the Compensation Committee of the Company's Board of Directors.
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- EXHIBIT 10.14
