Board Justification

Our philosophy is to maintain effective compensation programs that are as simple and flexible as possible and that permit us to make responsive adjustments to changing market conditions and other internal and external factors. We strive to provide fair and competitive compensation that enables us to attract and retain high caliber executive talent necessary to achieve the continued growth and success of our business.

Board Justification

The AIP is a cash bonus program in which all of our NEOs are eligible to participate. The primary purpose of the AIP is to focus management on key measures that drive financial performance and provide competitive bonus opportunities tied to the achievement of our financial and strategic growth objectives. For our NEOs, the target opportunity for AIP awards was based on the following components as compared to pre-established targets: (i) net sales growth for fiscal 2025 (40% of the overall AIP), (ii) Adjusted EBITDA growth for fiscal 2025 (40% of overall AIP), and (iii) strategic initiatives (20% of overall AIP).

Board Justification

Amounts reported under All Other Compensation for fiscal 2025 include: (i) contributions to our 401(k) plan on behalf of our NEOs, including annual STAR Contributions under our 401(k) plan, as follows: Mr. Hoskins, matching contribution of $12,513 and annual STAR Contribution of $16,500; (ii) annual auto allowances, as follows: $18,000 each for Mr. Hoskins; (iii) fees for participation in our executive health programs; (iv) the incremental additional cost of spouse travel and meals for business events to which spouses are invited (including a related “gross-up” for payment of taxes in the amount of $14,692 for Mr. Hoskins) for Mr. Hoskins ($40,959); (v) gifts (including a tax “gross-up” related to gifts in the amount of $249 for Mr. Hoskins) for Mr. Hoskins ($553); and (vi) amounts with respect to the payment of life insurance premiums as follows: $604 for Mr. Hoskins.

Board Justification

The earned amounts were determined based on the following performance and payout scales: PERFORMANCE RELATIVE TSRRANKING TARGETPAYOUT % Threshold 40th percentile 50% Target 60th percentile 100% Outstanding/Maximum 80th percentile 200%