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EXHIBIT 10
JACOBSON STORES INC.
MANAGEMENT INCENTIVE PLAN
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Senior management incentives are based on accomplishing the key goals of our
business plan. Incentives are structured to strive for excellence.
The management incentive plan is designed to:
- foster an awareness of the Company's objective of consistent, profitable
operation.
- motivate senior management to meet the shorter term needs of
shareholders without sacrificing long-term profitability.
- encourage senior management to "stretch" for higher levels of
performance in the future.
- establish target incentives for each participant so that each person is
aware of what payout percentages can be expected with various levels of
accomplishment.
- encourage retention of key employees.
The principal features of the plan include:
- participation limited to salaried officers of the Company.
- specific performance criteria and weightings established at the
beginning of the year for each participant (at the most senior level,
primary emphasis placed on corporate goal achievement; at the VP-Staff
level, primary emphasis placed on individual goal achievement).
- potential payout as a percent of the base salary of each participant as
follows:
<TABLE>
<CAPTION>
Threshold Target Maximum
--------- ------ -------
<S> <C> <C> <C>
Chairman/CEO/President 0% 35% 52.5%
Vice Chairman 0 30 45
EVP - Marketing & Stores 0 30 45
SVPs 0 25 37.5
VP - Regional Director of Stores 0 20 30
VP - DMM 0 20 30
VP - Operations 0 20 30
VP - Staff Positions 0 15 22.5
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</TABLE>
(5/25/00)
