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Exhibit
10.01
LUMBER LIQUIDATORS,
INC.
Annual Bonus Plan for
Executive Management
The purposes of the Plan are
to promote the success of the Company; to provide members of the
executive management group of the Company with an opportunity to
receive incentive compensation dependent upon that success and to
attract, retain and motivate such individuals. The Plan is intended
to be a straightforward and flexible program that provides
non-equity incentive compensation based upon the executive’s
individual performance and the Company’s financial
performance.
Award means an
incentive award made pursuant to the Plan.
Award Formula
means one or more objective formulas or standards established by
the Committee for purposes of determining an Award based on the
level of performance with respect to one or more Performance Goals.
Award Formulas may vary from Performance Period to Performance
Period and from Participant to Participant.
Award Schedule
means the Award Schedule established pursuant to
Section 4.1.
Board means the
Board of Directors of the Company.
Committee means
the Compensation Committee of the Board.
Company means
Lumber Liquidators, Inc. and its successors.
Participant
means a member of the executive management group selected from time
to time by the Committee to participate in the Plan.
Performance
Goal means the level of performance or matrix of levels of
performance established by the Committee as the Performance Goal
with respect to a Performance Measure. A Performance Goal may be an
absolute goal or a goal relative to the performance of a peer group
selected by the Committee. Performance Goals may vary from
Performance Period to Performance Period and from Participant to
Participant and may be established on a stand-alone basis, in
tandem or in the alternative.
Performance
Measure means one or more of the following selected by the
Committee to measure Company performance for a Performance Period:
(a) cash flow and/or free cash flow (before or after
dividends), (b) earnings per share as defined by the Company,
(c) EBITDA (as defined by the Company), (d) the price of
Common Stock, (e) return on equity, (f) total
LUMBER LIQUIDATORS,
INC.
Annual Bonus Plan for
Executive Management
shareholder return, (g) return on
capital (including return on total capital or return on invested
capital), (h) return on assets or net assets, (i) market
capitalization, (j) total enterprise value (market
capitalization plus debt), (k) economic value added (or
equivalent metric), (l) debt leverage (debt to capital),
(m) revenue, (n) income (including net income, operating
income, pre or after-tax income or income from continuing
operations), (o) operating profit or net operating profit,
(p) operating margin or profit margin, (q) return on
operating revenue, (r) cash from operations,
(s) operating ratio, (t) cash flow per share,
(u) market share (v
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