Fresh Choice Senior Vice President of Operations 2001 Incentive Plan
This agreement outlines the 2001 incentive plan for the Senior Vice President of Operations at Fresh Choice. The plan rewards the executive for meeting specific sales and profit targets, with incentive pay based on a percentage of regional managers' payouts and salary, depending on performance. Eligibility requires employment at the time of payout calculation. The company may adjust budgets during the year for store remodels or changes in store count, and retains the right to revise or cancel the plan at any time.
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Exhibit 10.42
SENIOR VICE PRESIDENT OF OPERATIONS 2001 INCENTIVE PLAN
PURPOSE: To reward the Senior Vice President of Operations for achievement of planned sales and planned controllable operating profit, less regional and operations department overhead costs.
PLAN YEAR: The plan begins January 1, 2001 and ends on December 30, 2001.
INCENTIVE PAY: The incentive pay pool is equal to a percentage of the Regional Managers' incentive payout, a percent of salary for achievement of minimum sales objectives, and a percent of salary for achievement of minimum controllable operating profit less regional and operations department overhead costs. See attached schedule.
ELIGIBILITY: Employed by Fresh Choice on the date incentive checks are calculated.
BUDGET CHANGES DURING THE YEAR: In the following situations, budgets may be revised to reflect the increased sales potential/change from which incentive pay is calculated: 1) the timing of remodels versus budget (completion dates a well as which stores are actually remodeled); and 2) adding new stores or closing existing stores.
Plan Intent: The Company retains the discretion to revise or cancel the program at any time with or without notice.
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