Max & Erma’s Restaurants, Inc. Fiscal 2007 Executive Compensation Program Description

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This document outlines the 2007 executive compensation program for Max & Erma’s Restaurants, Inc. It specifies the base salaries for four top executives and details the structure of the executive cash bonus program, which is tied to the company’s performance. Executives are eligible for fixed bonuses and a share of a bonus pool if certain earnings targets are met. Additionally, the Chief Operating Officer can earn extra bonuses based on increases in same-store sales. The agreement sets clear criteria for compensation based on company results.

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EX-10.1 2 l22841aexv10w1.htm EX-10.1 EX-10.1  

Exhibit 10.1
Description of the Material Terms of Max & Erma’s Restaurants, Inc.’s
Fiscal 2007 Executive Compensation Program
Base Salaries for Fiscal 2007
Todd B. Barnum, Chairman and Chief Executive Officer – $380,000
Robert A. Lindeman, President – $265,000
William C. Niegsch, Jr., Executive Vice President and Chief Financial Officer – $230,000
James E. Howenstein, Chief Operating Officer – $175,000
Executive Cash Bonus Program
     The Company’s Executive Cash Bonus Program is based on the Company achieving certain objective performance criteria. A fixed bonus (“Fixed Bonus”) will be paid to the executive officers in accordance with the following table if the Company achieves certain targeted adjusted operating earnings for fiscal 2007. In addition, a certain percentage of higher adjusted operating earnings for fiscal 2007 will be assigned to a bonus pool (“Bonus Pool”), a percentage of which will be paid to the executive officers in accordance with the following table.
             
Executive   Fixed Bonus   Bonus Pool
Mr. Barnum –
  $ 10,000     20% of the Bonus Pool
 
            
Mr. Lindeman –
  $ 25,000     40% of the Bonus Pool
 
            
Mr. Niegsch –
  $ 10,000     20% of the Bonus Pool
 
            
Mr. Howenstein –
  $ 10,000     10% of the Bonus Pool
Additional Cash Bonus Program
     
Executive   Bonus
Mr. Howenstein –
  $25,000 bonus per each specified increment of increases in same store sales in fiscal 2007 over fiscal 2006