Document:

EXHIBIT 10.3

 

EXECUTIVE
COMPENSATION PLAN

Plan Year 2006

Randal
Tofteland

 

I.              Annual Base Salary $350,000   (Effective January 1, 2006)

 

II.            Performance Incentive Bonus (IB): $325,000
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 SoftBrands, Inc.

 

	
   

  	
   

  	
  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 – 12.5% 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 – SoftBrands must achieve 90% of the targeted operating
profit goal to be eligible for the bonus payments.  If SoftBrands 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%.  For each percentage achieved in excess of
100% of the annual target, you will receive an additional 1% of your targeted
incentive.

 

III.           Should
you leave the company for any reason; any bonus “not yet received” will be
forfeited.EXHIBIT INDEX 10.4

 

EXECUTIVE
COMPENSATION PLAN

Plan Year 2006

Dave
Latzke

 

I.              Annual Base Salary $275,000

 

II.            Performance Incentive Bonus (IB):  $125,000 annually.  Your
2006 Incentive Bonus will be paid based on the following criteria:

 

•      50% ($62,500) of the performance incentive bonus is based on the
achievement of the annual operating profit targets for SoftBrands, Inc.

 

	
   

  	
   

  	
  EBITDA

  	
   

  	
  Payment Eligibility

  	
   

  
	
  YTD Q1 (Oct – Dec 05)

  	
   

  	
  1st Quarter
  Budget

  	
   

  	
  25

  	
  %

  
	
  YTD Q2 (Jan – Mar 06)

  	
   

  	
  2nd Quarter
  Budget

  	
   

  	
  50

  	
  %

  
	
  YTD Q3 (Apr – Jun 06)

  	
   

  	
  3rd Quarter
  Budget

  	
   

  	
  75

  	
  %

  
	
  YTD Q4 (Jul – Sep 06)

  	
   

  	
  Annual Budget

  	
   

  	
  100

  	
  %

  

 

Performance
Incentive Payments –12.5% of your annual bonus for this
portion of your incentive will be paid quarterly based on the attainment of the
annual operating profit metric.   The
remaining balance of earned bonus will be paid upon completion of the annual
audit.

 

Threshold for Operating Profit Goal – SoftBrands must achieve 90% of the targeted operating
profit goal to be eligible for the bonus payments.  If SoftBrands 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%.  For each percentage achieved in excess of
100% of the annual target, you will receive an additional 1% of your targeted
incentive.

 

•      50% ($62,500)
of the Performance Incentive bonus is based on the achievement of the following
performance objectives:

 

•      40%
($25,000) for delivering the full year Finance + Executive + IT budgets at or
below plan.

•      12.5%
of the annual bonus for this portion is advanced quarterly if the actual
expense is at or below plan year to date, the remainder to be paid once the
year end audit is complete.

•      20%
($12,500) payable at year end if 2007 Finance + IT approved budget is 90% or
less than the 2006 approved budget.

•      40%
($25,000) paid at completion of 404 audit if no material weaknesses are
reported (if SoftBrands is not required to complete a 404 audit for fiscal year
2006, the 40% bonus will be earned if the 2007 Finance + IT approved budget is
90% or less than the 2006 approved budget goal is met.)

 

 

Note:      SoftBrands
must be in compliance with all debt covenants for any period in which a bonus
is paid.

 

III.           Should
you leave the company for any reason; any bonus “not yet received” will be paid
per your employment agreement.EXHIBIT 10.5

 

EXECUTIVE
COMPENSATION PLAN

Plan Year 2006

Ralf
Suerken

 

I.              Annual Base Salary $250,000

 

II.            Performance Incentive Bonus (IB): $100,000 annually.  Your
2006 Incentive Bonus will be paid quarterly based on the following criteria:

 

•      75%
of the performance incentive bonus ($75,000) is based on the achievement of the
annual operating profit targets for the WW Manufacturing 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 – An advance of 1⁄4 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 – Manufacturing must achieve 90% of the targeted revenue
goal to be eligible for the bonus payments. 
If Manufacturing achieves 90% of the targeted revenue 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%.

 

•      25% of the performance incentive bonus ($25,000) is based on the
achievement of the annual revenue targets for WW FSE.

 

	
   

  	
   

  	
  WW FSE Revenue Target

  	
   

  	
  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

  	
  %

  

 

Threshold for WW FSE Revenue Goal – Manufacturing must achieve 80% of the targeted WW FSE
revenue goal to be eligible for the bonus payments.  If Manufacturing achieves 80% of the targeted
WW FSE revenue goal, you will be eligible for 50% of your targeted incentive
bonus.  For achievement of each
percentage above 80%, you will receive an additional 2.5% of your target to a
maximum of 100%.

 

 

III.           SoftBrands
Manufacturing Executive Profit Sharing Bonus

To encourage performance
over and above our targets, you are eligible to participate in the SoftBrands
Manufacturing Executive profit sharing plan.

 

6% of each $1 of operating
profit over the Manufacturing division target will be contributed to the
SoftBrands Manufacturing 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.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 – 1⁄4 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.

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