"Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain
On February 22, 2013, the Compensation Committee of Cobra Electronics Corporation (the “Company”) adopted the 2013 Executive Incentive Plan (the
“Plan”) for the Company’s executive officers (other than James R. Bazet) and certain other key employees. Under the Plan, participants are entitled to earn
cash bonus compensation based upon the achievement by the Company of a pre-established performance goal for 2013 outlined in the Plan. The performance
goal consists of a targeted operating profit level of the Company. 100% of the “target” award for each participant in the Plan will be based on the Company
meeting the target operating profit level. If the target operating profit level is exceeded by an identified amount, each participant will be entitled to receive 105%,
115%, 120%, 130% or 150% of her “target” award, in the case of Sally Washlow, 105%, 115%, 120%, 125% or 135% of his “target” award, in the case of
Robert Ben, and 105%, 110%, 115%, 118% or 120% of his or her “target” award, in the case of the other participants in the Plan, in each case depending on
the actual operating profit of the Company. If the target operating profit level is not met but one of five lesser identified operating profit levels is achieved, each
participant will be entitled to receive 50%, 60%, 70%, 80% or 90% of his or her respective “target” award depending on the level of operating profit achieved.
Under the Plan, the “target” award for Ms. Washlow is 40% of her base salary, the “target” award for Mr. Ben is 35% of his base salary and the “target”
award for other participants in the Plan is 35%, 30% or 25% of their respective base salaries depending on the individual. For purposes of the Plan, “operating
profit” means the Company’s consolidated operating profits calculated in accordance with generally accepted accounting principles without regard to
extraordinary or other nonrecurring items or unusual items unless the Compensation Committee determines that any such extraordinary, nonrecurring or
unusual item shall not be disregarded. The annual bonus to be received by Mr. Bazet is determined in accordance with the terms of his employment agreement."
Would love to know what these target levels are. Sally makes a handsome salary now. I was not impressed with her presentation during the earnings release. Way too many ums for my confidence. Now Bezet seems smooth. Maybe too smooth.