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Exhibit 10.8
1997 BONUS PROGRAM
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DM MANAGEMENT
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In prior years, bonus eligibility was based entirely on corporate
performance--if the Company made its EBIT plan, all program participants
received 100% of their potential bonus. For 1997, all eligible program
participants will have their potential bonuses divided evenly between corporate
EBIT goals (50%) and individual goals (50%), unless otherwise determined by the
Compensation Committee of the Board of Directors.
Bonuses will be paid out seasonally, for the July-December period and the
January-June period. Any individual receiving less than a satisfactory
performance rating for either season will not be eligible for any bonus payout
for that season.
The criteria for eligibility are as follows, unless otherwise determined by the
Compensation Committee of the Board of Directors:
I. CORPORATE BONUS (50%)
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If DMMC makes 100% of its seasonal EBIT plan, all participants will
be eligible to receive 100% of their corporate bonus potential for
the season.
No corporate bonuses will be paid for a season if DMMC does not make
its seasonal EBIT plan.
II. INDIVIDUAL BONUS (50%)
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If DMMC makes a minimum of 80% of its seasonal EBIT plan, the
program participants are eligible for 100% of their individual
potential bonus for the season--the award dependent upon their
achievement of specific individual goals.
If DMMC makes between 50% and 80% of its seasonal EBIT plan, the
program participants are eligible for 50% of their individual
potential bonus for the season.
NOTE: No bonus payments, either individual or corporate, will be made
for a season if DMMC does not make 50% of its seasonal EBIT plan.
III. PERFORMANCE APPRAISALS
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An important factor in determining the size of the individual bonus
payment is the evaluation of the individual's contribution to the
success of the operation. The individual potential bonus plan for
all merchants will be planned gross margin dollars. Only if approved
"official" revisions are made to the plan will the gross margin
dollar goal be allowed to change. Sales support executives will have
pre-established individual goals which, for the most part, will
relate to expense and operational objectives.
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III. PERFORMANCE APPRAISALS (Cont'd)
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A. At the beginning of a fiscal year, each sales support participant
will list the goals for the upcoming fiscal year. (See Attachment
A.) These will be submitted to the Vice President of each group.
At the beginning of each season, the merchant should complete the
appropriate form and submit to their supervisor. (See Attachments
B and C.)
B. The goals should be completed and reviewed with the participant's
superior for acceptance and will become the basis of performance
evaluations.
C. Each participant's goals will then be submitted to the President
for final acceptance and approval.
D. Informal periodic reviews of the individual's performance to date
will be held with the participant by the individual's superior
throughout the year.
E. At the end of each season of the fiscal year, each participant
will indicate his/her performance against stated goals.
F. At the end of each season of the fiscal year, each individual's
performance will be rated against these annual goals. These
ratings will be forwarded to the President for review and will
become the basis for bonus payment considerations.
IV. METHOD OF PAYMENT
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Final bonus payout will be made to participants as soon as possible
after the close of each season of the fiscal year.
V. GENERAL PROVISIONS
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A. PARTICIPATION
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This plan is restricted to key management personnel whose
decisions have a measurable impact on the major objectives of the
Company. Selection to the plan is made by the President of the
Company. Each participant is assigned a "normal incentive
percentage" which represents the premium on their regular
earnings associated with the bonus plan.
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B. NEW PARTICIPANTS
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New participants may be admitted to this plan during the fiscal
year subject to the approval of the President. Bonus payments for
participants added during the fiscal year will be based upon
their base salary earnings during the time they are covered by
the plan.
C. PERFORMANCE PERIOD
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This plan pertains to the fiscal year ending June 28, 1997. For
measurement purposes, the fiscal year will also be divided into
two seasons--Fall (July-December) and Spring (January-June).
D. PAYMENTS
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Incentive awards will be made to participants as soon as possible
after the close of each goaled period and normally not later
than:
Fall February 15
Spring August 15
E. TERMINATIONS
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A participant who resigns or is discharged from the Company prior
to the end of a season will not be eligible for any bonus payment
for that or any subsequent season.
F. NON-VESTED RIGHTS
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The Company neither guarantees that a participant will be paid a
bonus nor grants a vested right in any bonus dollars available
for distribution.
G. INTERPRETATIONS
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The provisions of this plan have been approved by the Board of
Directors. Any commitments made, either stated or implied, which
are contrary to the provisions of this plan, shall not be valid.
Any questions regarding the interpretation of the provisions of
this plan, special cases not covered in the plan and ongoing
administration of the plan shall be coordinated through the Vice
President of Human Resources and resolved by the President and
Board of Directors where necessary.
H. CHANGE OF PLAN
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The Company reserves the right to amend, modify, suspend, or
terminate this plan at any time without advance notice to the
plan's participants.
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Attachment A
DM MANAGEMENT
FISCAL 1997 BONUS PLAN
SALES SUPPORT
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GOALS WEIGHTING
- ----- ---------
1. __________________________________________________
__________________________________________________
__________________________________________________ ___________%
2. __________________________________________________
__________________________________________________
__________________________________________________ ___________%
3. __________________________________________________
__________________________________________________
__________________________________________________ ___________%
4. __________________________________________________
__________________________________________________
__________________________________________________ ___________%
5. __________________________________________________
__________________________________________________
__________________________________________________ ___________%
NOTE: A minimum of three goals must be written.
Participant's Signature _________________
Supervisor's Signature _________________
President's Signature _________________
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Attachment B
DM MANAGEMENT
FISCAL 1997 BONUS PLAN
MERCHANDISING
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FALL FISCAL 1997
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Original Approved Plan
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Dollar ($) Sales Plan (A) __________
Gross Margin % Plan (B) __________
Gross Margin Dollar ($) Plan (AxB) __________
Revised Plan (if Applicable)
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Dollar ($) Sales Plan (A) __________
Gross Margin % Plan (B) __________
Gross Margin Dollar ($) Plan (AxB) __________
Participant's Signature _________________
Supervisor's Signature _________________
President's Signature _________________
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Attachment C
DM MANAGEMENT
FISCAL 1997 BONUS PLAN
MERCHANDISING
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SPRING FISCAL 1997
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Original Approved Plan
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Dollar ($) Sales Plan (A) __________
Gross Margin % Plan (B) __________
Gross Margin Dollar ($) Plan (AxB) __________
Revised Plan (if Applicable)
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Dollar ($) Sales Plan (A) __________
Gross Margin % Plan (B) __________
Gross Margin Dollar ($) Plan (AxB) __________
Participant's Signature _________________
Supervisor's Signature _________________
President's Signature _________________