2006 Executive Compensation Plan for Steve VanTassel – SoftBrands Hospitality Division
This agreement outlines the 2006 compensation plan for Steve VanTassel at SoftBrands, including a $230,000 annual base salary and a $100,000 performance incentive bonus tied to the Hospitality division's operating profit targets. The bonus is paid quarterly based on achieving specific profit milestones, with eligibility starting at 90% of the target. Additional profit sharing is available for exceeding targets, distributed among executives based on salary proportion. Any unpaid bonuses are forfeited if the executive leaves the company.
EXHIBIT 10.6
EXECUTIVE COMPENSATION PLAN
Plan Year 2006
Steve VanTassel
I. Annual Base Salary: $230,000
II. Performance Incentive Bonus (IB): $100,000 annually. Your 2006 Incentive Bonus will be paid quarterly based on the following criteria:
100% of the Performance Incentive bonus is based on the achievement of the annual operating profit targets for the Hospitality division of SoftBrands.
|
|
| Operating Profits |
| Payment Eligibility |
|
| YTD Q1 (Oct – Dec 05) |
| 1st Quarter Target |
| 25 | % |
| YTD Q2 (Jan – Mar 06) |
| 2nd Quarter Target |
| 50 | % |
| YTD Q3 (Apr – Jun 06) |
| 3rd Quarter Target |
| 75 | % |
| YTD Q4 (Jul – Sep 06) |
| Annual Target |
| 100 | % |
Performance Incentive Payments – ¼ of your annual bonus will be paid quarterly based on the attainment of the annual operating profit metric. Payments from prior quarters that were not achieved will be paid if YTD targets are achieved.
Threshold for Operating Profit Goal – Hospitality must achieve 90% of the targeted revenue goal to be eligible for the bonus payments. If Hospitality achieves 90% of the targeted goal, you will be eligible for 50% of your targeted incentive bonus. For achievement of each percentage above 90%, you will receive an additional 5% of your target to a maximum of 100%.
III. SoftBrands Hospitality Executive Profit Sharing Bonus
To encourage performance over and above our targets, you are eligible to participate in the SoftBrands Hospitality Executive profit sharing plan.
5% of each $1 of operating profit over the Hospitality division target will be contributed to the SoftBrands Hospitality Group Executive Profit Sharing pool. The pool will be distributed on a pro rata basis, taking your base salary as a percentage of the total base salaries of all eligible SoftBrands Group executives in the plan.
IV. Should you leave the company for any reason; any bonus “not yet received” will be forfeited.
