Max & Erma’s Restaurants, Inc. Fiscal 2008 Executive Compensation Bonus Program Description

Summary

Max & Erma’s Restaurants, Inc. has established a 2008 bonus program for its named executive officers. Bonuses are based on the company meeting specific adjusted pre-tax income targets. If the company reaches a set minimum income (the Floor Target), executives receive a fixed bonus. If income exceeds this target, a portion of the excess is allocated to a bonus pool, which is then distributed among the executives according to set percentages. The program outlines both the fixed bonus amounts and the share of the bonus pool for each executive.

EX-10.1 2 l28787aexv10w1.htm EX-10.1 EX-10.1

Exhibit 10.1

Description of the Material Terms and Conditions of Max & Erma’s Restaurants, Inc.’s
Fiscal 2008 Executive Compensation Bonus Program

The Company’s Fiscal 2008 Executive Compensation Bonus Program is based on the Company achieving certain objective performance criteria. A fixed bonus (the “Fixed Bonus”) will be paid to the named executive officers in accordance with the following table if the Company achieves a certain adjusted pre-tax income target for fiscal 2008 (the “Floor Target”). “Adjusted pre-tax income” is defined as budgeted pre-tax income before extraordinary gains or losses and after the accrual for the Bonus Program. In addition, a certain percentage of adjusted pre-tax income above the Floor Target for fiscal 2008 will be assigned to a bonus pool (the “Bonus Pool”), a percentage of which will be paid to the named executive officers in accordance with the following table.


Executive	Fixed Bonus	Bonus Pool
Mr. Lindeman	$30,000	35% of the Bonus Pool
Mr. Nahkunst	$25,000	30% of the Bonus Pool
Mr. Niegsch	$20,000	25% of the Bonus Pool

The percentage of adjusted pre-tax income above the Floor Target that is assigned to the Bonus Pool ranges between 10% and 25% depending upon the amount of adjusted pre-tax income that is earned above the Floor Target.