Exhibit 10.26
Annual Incentive Plan
Fiscal Year – 2009
Effective April 1, 2008 – March 31, 2009
May 7, 2008
Contents
May 7, 2008
I.
Purpose of the Plan
II.
Eligibility
III. Administration of Plan
IV. Plan Design
V.
Financial Objectives
VI. Individual Objectives
VII. Incentive Payments
VIII. Amendment, Suspension and Termination
IX. Unfunded Plan
X.
Other Benefit and Compensation Programs
XI. Governing Law
Exhibit I: FY2009 Incentive Plan Components
Exhibit II: FY2009 Incentive Plan Payout Schedule
Exhibit III: FY2009 Incentive Payout Calculation Examples
Contents
May 7, 2008
2
I. Purpose of the Plan
The purpose of the Annual Incentive Plan is to align all participants with the business objectives of Navarre
Corporation and its subsidiaries (the “Company”) by motivating, rewarding and recognizing participants for their
achievements and impact on the Company’s success.
II. Eligibility
Most management-level employees of Navarre are eligible to participate in the Plan. New hires must be
employed prior to September 1st to be eligible for a pro-rata incentive payment for that fiscal year. Participants
who terminate from the company, for any reason, prior to the date of the incentive payment, will lose their
eligibility to receive an incentive payment.
III. Administration
The Plan is administered by the Compensation Committee of the Company’s Board of Directors (the
“Compensation Committee”). The Chief Executive Officer of the Company (the “CEO”) will make
recommendations to the Compensation Committee regarding participation, level of awards, changes to the Plan,
financial objectives, and other aspects of the Plan’s administration. The Compensation Committee has the
authority to interpret the Plan, and, subject to the Plan’s provisions, to make and amend rules and to make all
other decisions necessary for the Plan’s ad