exv10w6



 





Exhibit 10.6




EXECUTIVE COMPENSATION PLAN

Plan Year 2008

Randal Tofteland




2008 Base Salary = $440,000


Performance Incentive Bonus (IB): $280,000 annually. Your 2008
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 income targets for SoftBrands, Inc.





	 	 	 	 	 	 	 	 	 
	 	 	Cumulative	 	 
	 	 	Operating Income	 	Bonus Amount
	Q1 (Oct – Dec 07)
	 	1st Quarter Target	 	 	25	%
	Q2 (Jan – Mar 08)
	 	2nd Quarter Target	 	 	50	%
	Q3 (Apr – Jun 08)
	 	3rd Quarter Target	 	 	75	%
	Q4 (Jul – Sep 08)
	 	Annual Target	 	 	100	%







Performance Incentive Payments — A maximum of 12.5% will be paid quarterly against your
annual bonus target based on the attainment of the annual operating income metric.
Payments from prior quarters that were not achieved will be paid if YTD targets are
achieved. All bonus earned but not paid will be payable upon the completion of the final
year-end audit.




Threshold for Operating Profit Goal — SoftBrands must achieve 70% of the targeted annual
operating income goal to be eligible for the bonus payments. If SoftBrands achieves 70% of
the targeted goal, you will be eligible for 50% of your targeted incentive bonus. For
achievement of each 1% above 70% attainment of the operating income goal, you will receive
an additional 4.27% of your annual incentive bonus to a maximum of 100% of your $280,000
performance incentive bonus. For each 1% achieved in excess of 100% of the annual operating
income target, you will receive an additional 3% of your targeted incentive bonus to a
maximum of 125% of your target incentive payable at the conclusion of the fiscal year-end
audit.



Should you leave the company for any reason; any bonus “not yet received” will be forfeited.




 









 





EXECUTIVE COMPENSATION PLAN

Plan Year 2008

Ralf Suerken





	•	 	2008 Base Salary — $265,000






	•	 	Performance Incentive Bonus (IB): $110,000. Your 2008 Incentive Bonus will be paid
quarterly based on the following criteria:






	 	•	 	70% of the Performance Incentive bonus ($77,000) is based on the achievement of the
annual operating income targets for the Manufacturing division of SoftBrands.





	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Cumulative	 	Revenue	 	 
	 	 	Operating Inc	 	Threshold	 	Payment Eligibility
	YTD Q1 (Oct
– Dec 07)
	 	1st Quarter Target	 	1st Quarter Target	 	 	25	%
	YTD Q2 (Jan
– Mar 08)
	 	2nd Quarter Target	 	2nd Quarter Target	 	 	50	%
	YTD Q3 (Apr
–Jun 08)
	 	3rd Quarter Target	 	3rd Quarter Target	 	 	75	%
	YTD Q4 (Jul
– Sep 08)
	 	Annual Target	 	Annual Target	 	 	100	%







Performance Incentive Payments — A maximum of 12.5% will be paid quarterly against your
annual bonus target based on the attainment of the annual operating income metric.
Payments from prior quarters that were not achieved will be paid if YTD targets are
achieved. All bonus earned but not paid will be payable upon the completion of the final
year-end audit.




Threshold for Operating Income Goal — Manufacturing must achieve its quarterly revenue
threshold to be eligible for your operating income bonus. If Manufacturing achieves the
revenue threshold and 90% of the Operating Income, you will be eligible for 50% of your
annual incentive bonus. For achievement of each 1% above 90% attainment of the operating
income goal, you will receive an additional 6.47% of your annual incentive bonus to a
maximum of 100% of your $77,000 performance incentive bonus. For each 1% achieved in excess
of 100% of the operating income annual target, you will receive an additional 3% of your
targeted incentive to a maximum of 125%.




	 	•	 	30% of the Performance Incentive bonus ($33,000) is based on achieving the following
2008 goals and objectives:






	 	o	 	Keep Americas fiscal year 2008 maintenance attrition under 10% as
measured by number of customers on maintenance on October 1, 2007 and September
30, 2008 — $11,000. Bonus will be paid at the conclusion of the fiscal
year-end audit.
	 
	 	o	 	Achieve 20% or greater worldwide combined manufacturing
consulting gross margin — $11,000. Bonus will be paid at the conclusion
of the fiscal year-end audit.
	 
	 	o	 	Define and execute an SAP migration plan that is approved and
signed off by SAP — $11,000. Success is defined as the development and
sign off of the plan by March 31, 2008 with two or more customers under
migration by September 30, 2008. Bonus will be paid at the conclusion of the
fiscal year-end audit.





Should you leave the company for any reason; any bonus “not yet received” will be forfeited.




 









 





EXECUTIVE COMPENSATION PLAN

Plan Year 2008

Steve VanTassel





	•	 	2008 Base Salary — $265,000
	 
	•	 	Performance Incentive Bonus (IB): $110,000. Your 2008 Incentive Bonus will be paid
quarterly based on the following criteria:






	 	•	 	70% of the Performance Incentive bonus ($77,000) is based on the achievement of the
annual operating income targets for the Hospitality division of SoftBrands.





	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Cumulative	 	Revenue	 	 
	 	 	Operating Inc	 	Threshold	 	Payment Eligibility
	YTD Q1 (Oct – Dec 07)
	 	1st Quarter Target	 	1st Quarter Target	 	 	25	%
	YTD Q2 (Jan – Mar 08)
	 	2nd Quarter Target	 	2nd Quarter Target	 	 	50	%
	YTD Q3 (Apr – Jun 08)
	 	3rd Quarter Target	 	3rd Quarter Target	 	 	75	%
	YTD Q4 (Jul – Sep 08)
	 	Annual Target	 	Annual Target	 	 	100	%







Performance Incentive Payments — A maximum of 12.5% will be paid quarterly against your
annual bonus target based on the attainment of the annual operating income metric.
Payments from prior quarters that were not achieved will be paid if YTD targets are
achieved. All bonus earned but not paid will be payable upon the completion of the final
year-end audit.




Threshold for Operating Income Goal — Hospitality must achieve its quarterly revenue
threshold to be eligible for your operating income bonus. If Hospitality achieves the
revenue threshold and 90% of the Operating Income, you will be eligible for 50% of your
annual incentive bonus. For achievement of each 1% above 90% attainment of the operating
income goal, you will receive an additional 8.47% of your annual incentive bonus to a
maximum of 100% of your $77,000 performance incentive bonus. For each 1% achieved in excess
of 100% of the operating income annual target, you will receive an additional 3% of your
targeted incentive to a maximum of 125% of your targeted incentive.




	 	•	 	30% of the Performance Incentive bonus ($33,000) is based on achieving the following
2008 goals and objectives:






	 	o	 	Confirm our ability to maintain our status as Jumeirah’s
strategic PMS and CRS provider by receiving an order from Jumeirah for
deployments at properties beyond the ten encompassed by the original order -
$11,000. Bonus will be paid at the conclusion of the fiscal year-end
audit.
	 
	 	o	 	Achieve 20% or greater worldwide combined hospitality services
gross margin — $11,000. Bonus will be paid at the conclusion of the
fiscal year-end audit.
	 
	 	o	 	Sign a “lighthouse” customer willing to fund at least $100,000 of
expenses for the development of the Core PMS — $11,000. Success is
defined by a signed binding contract between SoftBrands and customer that
guarantees a minimum of $100,000 of funded development. Bonus will be paid at
the conclusion of the fiscal year-end audit.





Should you leave the company for any reason; any bonus “not yet received” will be forfeited.




 









 





EXECUTIVE COMPENSATION PLAN

Plan Year 2008

Gregg Waldon





	•	 	2008 Base Salary — $265,000






	•	 	Performance Incentive Bonus (IB): $132,500 annually. Your 2008 Incentive Bonus will
be paid quarterly based on the following criteria:






	 	•	 	70% of the Performance Incentive bonus ($94,000) is based on the achievement of
the annual operating income targets for SoftBrands, Inc.





	 	 	 	 	 	 	 	 	 
	 	 	Operating Income	 	Bonus Amount
	Q1 (Oct – Dec 07)
	 	1st Quarter Target	 	 	25	%
	Q2 (Jan – Mar 08)
	 	2nd Quarter Target	 	 	50	%
	Q3 (Apr – Jun 08)
	 	3rd Quarter Target	 	 	75	%
	Q4 (Jul – Sep 08)
	 	Annual Target	 	 	100	%







Performance Incentive Payments — A maximum of 12.5% will be paid quarterly against your
annual bonus target based on the attainment of the annual operating income metric.
Payments from prior quarters that were not achieved will be paid if YTD targets are
achieved. All bonus earned but not paid will be payable upon the completion of the final
year-end audit.




Threshold for Operating Profit Goal — SoftBrands must achieve 70% of the targeted operating
income goal to be eligible for the bonus payments. If SoftBrands achieves 70% of the
targeted goal, you will be eligible for 50% of your targeted incentive bonus. For
achievement of each 1% above 70% attainment of the operating income goal, you will receive
an additional 4.27% of your annual incentive bonus to a maximum of $94,000 (100%) of this
portion of your performance incentive bonus. For each 1% achieved in excess of 100% of the
annual operating income target, you will receive an additional 3% of your targeted incentive
bonus to a maximum of 125% of your target incentive payable at the conclusion of the fiscal
year-end audit.




	 	•	 	30% of the Performance Incentive bonus ($38,500) is based on achieving the
following 2008 goals and objectives:






	 	•	 	Successful 404 Sarbanes Oxley Attestation — $15,000. Success is
defined as No Material Weaknesses on the final 404 Attestation. Bonus to be
paid after approval from compensation committee at the first compensation
committee meeting that follows a successful 404 attestation.
	 
	 	•	 	Define and deliver management reporting — $10,000. Success is
defined by the development of an approved list of 2008 management reports that
are signed off by the CEO and SVP’s by January 31, 2008, and delivered each
month and quarter thereafter through the remainder of the fiscal year. Bonus
will be earned at year end if the CEO & SVP’s confirm management reporting has
been delivered successfully; and paid at the conclusion of the fiscal year-end
audit.
	 
	 	•	 	Complete Softrax roll out in Asia and Germany — $7,500. Success is
defined as Q3, Q4 and year end books are closed in Softrax. Bonus will be paid
at the conclusion of the fiscal year-end audit.
	 
	 	•	 	Successful implementation of phase 1 Cognos Business
Intelligence —
$6,000. Success is defined by the development of an approved 2008
implementation and deliverables plan that is signed off by the CEO and SVP’s by
?????, 2008, and delivered ??????. Bonus will be earned at year end if the CEO
& SVP’s confirm Cognos Business Intelligence has been delivered successfully and
paid at the conclusion of the fiscal year-end audit.





Should you leave the company for any reason; any bonus “not yet received” will be forfeited.