Exhibit 10.25
The Yankee Candle Company,
Inc.
MANAGEMENT INCENTIVE
PLAN
For the 2008 Fiscal
Year
For Participants of the Executive
Compensation Plan
Overview
The Yankee Candle Company, Inc.
(“Yankee” or the “Company”) believes in
providing financial incentives to management employees who have
significant responsibility for sales, profit and operations.
Pursuant to this philosophy, Yankee has established a Management
Incentive Plan (“The Plan”) for the 2008 fiscal year in
order to meet the following objectives:
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Maintain a competitive total
compensation program which motivates and rewards high levels of
performance.
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Recognize and reward efforts and
contributions made to the Company’s success.
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Recognize and reward the
achievement of team and/or individual goals.
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Recognize and reward the
achievement of the Company’s overall goals.
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Administration
The Plan is administered by the
Company’s Salary Committee. Any amendment, exception,
interpretation, etc. must be approved in writing by the Salary
Committee and the Board of Directors. The current Salary Committee
members are:
Chairman and Chief Executive
Officer
Senior Vice President and Chief
Financial Officer
Senior Vice President, Human
Resources
Vice President, Human
Resources
The Plan and Company financial
objective(s) are established at the beginning of the fiscal year
and provided to participants after approval by the Board of
Directors in its sole discretion. Key Performance Objectives, if
any, are established by the Salary Committee, in its sole
discretion.
Each participant will have an
assigned incentive award target equal to a specific percentage of
salary during the fiscal year. For this purpose, salary is defined
as actual base pay paid by the Company to the participant
during the fiscal year. Each participant will be informed of his or
her percentage, which is generally assigned based on the
individual’s job classification, responsibilities and market
practice, but is in all instances subject to the discretion of the
Salary Committee.
Incentive payments will be
calculated based on actual results achieved compared to
objective(s) for fiscal 2008 but will not exceed the overall
funding approved by the Compensation Committee. The Company intends
that incentive payments for fiscal 2008 will be paid by
March 15, 2009.
Being a participant in the Plan is
not a contract for, nor offer of employment for any particular time
period, nor any other agreement on the part of management of the
Company for such employment and shall in no event alter the
“at will” nature of employment with the
Company.
The Plan is subject to applicable
Government and economic controls in effect during its operation;
therefore, payments may be subject to limitations.
Yankee reserves the right to amend,
modify and/or discontinue The Plan in whole or in part at any time
and for any reason with or without notice to the
participants.
Eligibility
The Salary Committee is responsible
in its sole discretion for identifying and approving positions
eligible to participate. Eligibility is subject to the following
additional criteria:
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Active employment in an eligible
position during fiscal 2008; and the employee must be actively
employed by the Company through the last day of fiscal
2008.
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Employees who transfer into or
out of an eligible position during the fiscal year will receive a
prorated incentive award based on the number of days of active
employment in an eligible position.
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Employees who are hired into an
eligible position during the fiscal year will receive a prorated
incentive award based on the number of days of active employment in
the eligible position.
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Employees who cease employment
due to death or permanent disability will receive a prorated
incentive award based on the number of days of active employment in
an eligible position.
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Incentive awards are
no
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