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EXHIBIT 10.17
EXECUTIVE BONUS PLAN
Zale Corporation is committed to building and maintaining a quality executive
staff, and to encouraging maximum focus on business improvement.
The 1999 Executive Bonus Plan has been developed to allow all eligible
executives the opportunity to receive an annual bonus based on our success.
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MEASURES The 1999 Executive Bonus Plan is based upon the following
AND measures:
WEIGHTINGS
All Participants:
MEASURE WEIGHTING
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Overall Corporate Net Income $* 70%
Overall Corporate Net Income As
a % of Sales 30%
* Minimum Net Income bonus target $ must be earned for any
award to be paid.
Your payout targets and levels are shown on page 5 and
illustrated on pages 6 and 7.
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ADDITIONAL o Must have joined Zale Corporation in a bonus eligible
ELIGIBILITY position by 2/1/99. Pro-rated payout will be based on
REQUIREMENTS full months in eligible position.
o Must be actively on payroll, or approved Leave of
Absence, on 7/31/99.
o If promoted to bonus eligible position by 2/1/99, bonus
will be pro-rated based on full months in bonus
eligible position.
o If changed to non-bonus eligible position after 2/1/99,
but on active payroll on 7/31/99, bonus will be
pro-rated based upon tenure in bonus eligible position.
o Participants terminated due to reduction in force after
1/1/99 will be eligible for a pro rated payout. Those
terminated for reduction in force before 1/1/99 and
those terminated for any other reason during the fiscal
year will not be eligible to receive a bonus payout.
o In the event of death, long-term disability or
retirement prior to 7/31/99, a pro-rated payment will
be made to the participant or the participant's
estate.
o Participants will be notified of their eligibility
level at the beginning of the fiscal year or when they
become bonus eligible. A Bonus Participant Agreement
must be signed at that time.
If changes occur during the fiscal year which alter the
participant's eligibility, the participant will be
notified.
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ADMINISTRATION o Corporate Compensation Committee may, at their sole
discretion, adjust bonus awards to reflect special or
unusual circumstances of any individual or individuals.
o Any bonus eligible employee who receives an "I" rating,
or lower, in either summary rating category in a given
year, will not be eligible for any bonus for that year.
o Any employee on Leave of Absence may, at the Corporate
Compensation Committee's sole discretion, have their
bonus reduced, pro rata, to reflect their period of
absence.
o All bonuses must be approved by the Corporate
Compensation Committee and the Compensation Committee
of the Board of Directors.
o Payouts will occur by September 30, which is sixty (60)
days following the end of Fiscal Year.
Zale Corporation reserves the right to modify, suspend or
terminate all plans, provisions, and payouts as dictated by
business requirements.
Nothing in this plan shall be construed as a contract of
employment.