Document:

Filed by Bowne Pure Compliance

Exhibit 10.32

AMENDED AND RESTATED

EXECUTIVE EMPLOYMENT AGREEMENT

This Amended and Restated Executive Employment Agreement (“Agreement”) is made, effective as
of May 21, 2008 (“Effective Date”), by and between P.F. Chang’s China Bistro, Inc. (“Company”) and
Mark Mumford (“Executive”).

R E C I T A L S

WHEREAS, Executive and Company are parties to that certain Executive Employment Agreement,
dated May 5, 2006 (the “Prior Employment Agreement”); and

WHEREAS, Executive and Company desire to amend and restate in its entirety the Prior
Employment Agreement.

NOW THEREFORE, the parties agree as follows:

1. Employment. Company hereby agrees to employ Executive in the position of Chief
Financial Officer and Executive hereby accepts such employment, upon the terms and conditions set
forth herein.

2. Duties.

2.1 Position. Executive shall have the duties and responsibilities assigned by
Company at the present date and as may be reasonably assigned from time to time. Executive shall
perform faithfully and diligently all duties assigned to Executive. Company reserves the right to
modify Executive’s position and duties at any time in its sole and absolute discretion, provided
that the duties assigned are consistent with the position of a senior executive and that Executive
continues to report directly to the Chief Executive Officer or the Board of Directors of Company.

2.2 Best Efforts/Full-time. Executive will expend Executive’s best efforts on behalf
of Company, and will abide by all policies and decisions made by Company, as well as all applicable
federal, state and local laws, regulations or ordinances. Executive will act in the best interest
of Company at all times. Executive shall devote Executive’s full business time and efforts to the
performance of Executive’s assigned duties for Company.

2.3 Work Location. Executive’s principal place of work shall be located in
Scottsdale, Arizona, or such other location as the parties may agree upon from time to time.

3. Term.

3.1 Initial Term. The employment relationship pursuant to this Agreement shall be for
an initial term commencing on the Effective Date set forth above and continuing for a period of
three (3) years following such date (“Initial Term”), unless sooner terminated in accordance with
section 7 below.

3.2 Renewal. On completion of the Initial Term specified in subsection 3.1 above,
this Agreement will automatically renew for subsequent one-year terms unless either party provides
ninety (90) days’ advance written notice to the other that Company/Executive does not wish to renew
the Agreement for a subsequent one-year term. In the event either
party gives notice of nonrenewal pursuant to this subsection 3.2, this Agreement will expire
at the end of the current term.

 

 

 

4. Compensation.

4.1 Base Salary. As compensation for Executive’s performance of Executive’s duties
hereunder, Company shall pay to Executive an initial Base Salary of $320,000 per year, payable in
accordance with the normal payroll practices of Company, less required deductions for state and
federal withholding tax, social security and all other employment taxes and payroll deductions.

4.2 Incentive Compensation. Executive will be eligible to receive incentive
compensation, the terms, amount and payment of which shall be determined by Company in its sole and
absolute discretion. A target bonus award will be established on an annual basis for Executive as
part of the annual Officer Bonus Plan which is reviewed and approved by the Board of Directors.

4.3 Performance and Salary Review. Company will periodically review Executive’s
performance on no less than an annual basis. Adjustments to salary or other compensation, if any,
will be made by Company in its sole and absolute discretion.

5. Customary Fringe Benefits. Executive will be eligible for all customary and usual
fringe benefits generally available to executives of Company subject to the terms and conditions of
Company’s benefit plan documents. Company reserves the right to change or eliminate the fringe
benefits on a prospective basis, at any time, effective upon notice to Executive.

6. Business Expenses. Executive will be reimbursed for all reasonable, out-of-pocket
business expenses incurred in the performance of Executive’s duties on behalf of Company. To
obtain reimbursement, expenses must be submitted promptly with appropriate supporting documentation
in accordance with Company’s policies.

7. Termination of Executive’s Employment.

7.1 Termination for Cause by Company. Although Company anticipates a mutually
rewarding employment relationship with Executive, Company may terminate Executive’s employment
immediately at any time for Cause. For purposes of this Agreement, “Cause” is defined as:
(a) Executive’s theft, dishonesty, or falsification of any Company documents or records;
(b) Executive’s improper use or disclosure of Company’s confidential or proprietary information;
(c) any action by Executive which has a detrimental effect on the Company’s reputation or business;
(d) Executive’s failure to perform any reasonable assigned duties after written notice from Company
of, and a reasonable opportunity to cure, such failure; (e) any material breach by Executive of
this Agreement, which breach is not cured after written notice from Company of, and a reasonable
opportunity to cure such breach; or (f) Executive’s conviction (including any plea of guilty or
nolo contendere) of any criminal act which impairs Executive’s ability to perform Executive’s
duties with Company. In the event Executive’s employment is terminated in accordance with this
subsection 7.1, Executive shall be entitled to receive only the Base Salary then in effect,
prorated to the date of termination. All other Company obligations to Executive pursuant to this
Agreement will become automatically terminated and completely extinguished. Executive will not be
entitled to receive the Severance Packages described in subsections 7.2(a) and 7.4(a) below.

 

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7.2 Termination Without Cause by Company/Severance. Company may terminate Executive’s
employment under this Agreement without Cause at any time on thirty (30) days’ advance written
notice to Executive. In the event of such termination, Executive will receive the Base Salary
prorated to the date of termination and the Severance Package described in subsection 7.2(a) below,
provided Executive complies with all of the conditions described in subsection 7.2(b) below.

(a) Severance Package. The Severance Package shall consist of the following:

(i) a severance payment equal to: (a) the greater of one and one-half (11/2)
times Executive’s
Base Salary then in effect on the date of termination or the balance of Executive’s Base Salary due
for the remainder of the current term; plus (b) one and one-half (11/2) times the average cash bonus
paid to Executive for each of the years completed under the terms of this Agreement, payable in a
single lump sum payment within thirty (30) days following Executive’s termination;

(ii) full vesting of all unvested portions of Executive’s equity awards; and

(iii) continuation of group health insurance benefits on the same terms as during Executive’s
employment for the greater of (a) the remainder of the current term, or (b) one and one-half (11/2)
years (the “Continuation Period”); provided Company’s insurance carrier allows for such benefits
continuation. In the event Company’s insurance carrier does not allow such coverage continuation,
Company agrees to pay the premiums required to continue Executive’s group health care coverage for
the Continuation Period, under the applicable provisions of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”), provided that Executive elects to continue and remains
eligible for these benefits under COBRA, and does not obtain health coverage through another
employer during this period.

(b) Conditions To Receive Severance Package. Executive will receive the Severance
Package described in subsection 7.2(a) above, provided that Executive: (i) complies with all
surviving provisions of this Agreement as specified in subsection 14.8 below; (ii) executes and
does not revoke a full general release within the time period specified in such release, releasing
all claims, known or unknown, that Executive may have against Company arising out of or any way
related to Executive’s employment or termination of employment with Company; and (iii) agrees to
act as a consultant for Company, without further compensation, for thirty (30) days following the
termination of the employment relationship, if requested to do so by Company. All other Company
obligations to Executive will be automatically terminated and completely extinguished.

7.3 Voluntary Resignation by Executive. Executive may voluntarily resign Executive’s
position with Company at any time after the Initial Term, on thirty (30) days’ advance written
notice. In the event of such resignation, Executive will be entitled to receive only the Base
Salary for the thirty-day notice period and no other amount for the remaining months of the
subsequent one-year term, if any. All other Company obligations to Executive pursuant to this
Agreement will be automatically terminated and completely extinguished. In addition, Executive
will not be entitled to receive the Severance Packages described in subsection 7.2(a) above or
subsection 7.4(a) below.

 

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7.4 Termination Upon A Change In Control. If Executive’s employment is terminated by
Company without Cause (as defined in subsection 7.1 above) or Executive resigns for Good Reason (as
defined in subsection 7.4(c) below) within twenty-four (24) months after a Change in Control (as
defined in subsection 7.4(d) below), Executive shall be entitled to receive the Severance Package
described in subsection 7.4(a) below, in lieu of the Severance Package described in subsection
7.2(a) above, provided Executive complies with all of the conditions described in subsection 7.2(b)
above.

(a) Severance Package: The Severance Package will consist of the following:

(i) a severance payment payable in one lump sum within thirty (30) days following the date of
Executive’s termination of employment and equal to: (a) the greater of two (2) times Executive’s
Base Salary then in effect on the date of termination or the balance of Executive’s Base Salary due
for the remainder of the current term (in each case, Base Salary shall be determined without regard
to any reduction thereof which would constitute “Good Reason” as defined in Section 7.4(c)), plus
(b) the greater of two (2) times (i) the average cash bonus paid to Executive for each of the
years completed under the terms of this Agreement or (ii) Executive’s annual bonus target;

(ii) full vesting of all unvested portions of Executive’s equity awards and the ability to
exercise stock options for a period of three (3) years from the date of termination of employment;
provided that such extension does not cause the option exercise period to be extended beyond the
expiration of the option term; and

(iii) continuation of group health insurance benefits on the same terms as during Executive’s
employment for the greater of (a) the remainder of the current term, or (b) two (2) years (the
“Continuation Period”); provided Company’s insurance carrier allows for such benefits continuation.
In the event Company’s insurance carrier does not allow such coverage continuation, Company agrees
to pay the premiums required to continue Executive’s group health care coverage for the
Continuation Period, under the applicable provisions of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”), provided that Executive elects to continue and remains
eligible for these benefits under COBRA, and does not obtain health coverage through another
employer during this period.

(b) 280G. If, due to the benefits provided under subsection 7.4(a) above, Executive
is subject to any excise tax due to characterization of any amounts payable under subsection 7.4(a)
as excess parachute payments pursuant to Section 4999 of the Internal Revenue Code of 1986, as
amended (the “Code”), Company shall pay to Executive an additional payment (the “Tax Gross-Up
Payment”) equal to the amount of such Section 280G excise tax payable by Executive. The Tax
Gross-Up Payment will be made to Executive by December 31 following the Executive’s taxable year in
which Executive remits the related taxes.

 

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(c) Good Reason. “Good Reason” shall mean any one or more of the following without
Executive’s written consent: (i) the assignment to Executive of any duties, or any limitation of
Executive’s responsibilities, substantially inconsistent with the Executive’s positions, duties,
responsibilities and status with Company immediately prior to the date of the Change in Control;
(ii) the relocation of the principal place of Executive’s service to a location that is more than
fifty (50) miles from Executive’s principal place of service immediately prior to the date of the
Change in Control, or the imposition of travel requirements substantially more demanding of
Executive than such travel requirements existing immediately prior to the date of
the Change in Control; or (iii) any material failure by Company to pay, or any material
reduction by Company of, Executive’s base compensation in effect immediately prior to the date of
the Change in Control. Good Reason shall not exist unless Executive notifies Company in writing of
the existence of the applicable condition specified above not later than ninety (90) days after the
initial existence of the condition, and Company fails to remedy such condition within thirty (30)
days after receipt of such notice.

(d) Change of Control. A Change of Control is defined as any one of the following
occurrences:

(i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934 (the “Exchange Act”)), other than a trustee or other fiduciary holding securities of
Company under an employee benefit plan of Company, becomes the “beneficial owner” (as defined in
Rule 13d-3 promulgated under the Exchange Act), directly
or indirectly, of the securities of Company representing more than 50% of (A) the outstanding
shares of common stock of Company or (B) the combined voting power of the Company’s
then-outstanding securities;

(ii) the sale or disposition of all or substantially all of Company’s assets (or any
transaction having similar effect is consummated); or

(iii) Company is party to a merger or consolidation that results in the holders of voting
securities of Company outstanding immediately prior thereto failing to continue to represent
(either by remaining outstanding or by being converted into voting securities of the surviving
entity) more than 50% of the combined voting power of the voting securities of Company or such
surviving entity outstanding immediately after such merger or consolidation.

7.5 Termination of Employment Upon Nonrenewal. In the event either party decides not
to renew this Agreement for a subsequent one-year term in accordance with subsection 3.2 above,
this Agreement will expire, Executive’s employment with Company will terminate and Executive will
only be entitled to Executive’s Base Salary paid through the last day of the current term. All
other Company obligations to Executive pursuant to this Agreement will be automatically terminated
and completely extinguished. In addition, Executive will not be entitled to the Severance Packages
described in subsections 7.2(a) and 7.4(a) above.

8. No Conflict of Interest. During the term of Executive’s employment with Company,
Executive must not engage in any work, paid or unpaid, that creates an actual or potential conflict
of interest with Company. Such work shall include, but is not limited to, directly or indirectly
competing with Company in any way, or acting as an officer, director, employee, consultant,
stockholder, volunteer, lender, or agent of any business enterprise of the same nature as, or which
is in direct competition with, the business in which Company is now engaged or in which Company
becomes engaged during the term of Executive’s employment with Company, as may be determined by the
Company in its sole discretion. If Company believes such a conflict exists during the term of this
Agreement, Company may ask Executive to choose to discontinue the other work or resign employment
with Company. In addition, Executive agrees not to refer any client or potential client of Company
to competitors of Company, without obtaining Company’s prior written consent, during the term of
Executive’s employment.

 

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9. Post-Termination Non-Competition.

9.1 Consideration For Promise To Refrain From Competing. Executive agrees that
Executive’s services are special and unique, that Company’s disclosure of confidential, proprietary
information and specialized training and knowledge to Executive, and that Executive’s level of
compensation and benefits and post-termination severance, as applicable, are partly in
consideration of and conditioned upon Executive not competing with Company. Executive acknowledges
that such consideration for Executive’s services under this Agreement is adequate consideration for
Executive’s promises contained within this section 9.

9.2 Promise To Refrain From Competing. Executive understands Company’s need for
Executive’s promise not to compete with Company is based on the following: (a) Company has
expended, and will continue to expend, substantial time, money and effort in developing its
proprietary information; (b) Executive will in the course of Executive’s employment develop, be
personally entrusted with and exposed to such proprietary information; (c) both during and after
the term of Executive’s employment, Company will be engaged in the highly competitive casual dining
industry; (d) Company provides services nationally and may provide services internationally in the
future; and (e) Company will suffer great loss and irreparable harm if Executive were to enter
into competition with Company. Therefore, in exchange for the consideration described in
subsection 9.1 above, Executive agrees that for the period equal to the greater of the remainder of
the current term under this Agreement or one (1) year following the date Executive ceases to render
services to Company (the “Covenant Period”), Executive will not either directly or indirectly,
whether as a owner, director, officer, manager, consultant, agent or employee: (i) work for a
competitor, which is defined to include any company in the business of preparation and distribution
of Chinese food or other Asian food concepts existing during the Covenant Period, within a one
hundred (100) mile radius of any P.F. Chang’s China Bistro or Pei Wei Asian Diner or any planned
location of such restaurants (“Restricted Business”); or (ii) make or hold any investment in any
Restricted Business in the United States, whether such investment be by way of loan, purchase of
stock or otherwise, provided that there shall be excluded from the foregoing the ownership of not
more than 5% of the listed or traded stock of any publicly held corporation. For purposes of this
section 9, the term “Company” shall mean and include Company, any subsidiary or affiliate of
Company, any successor to the business of Company (by merger, consolidation, sale of assets or
stock or otherwise) and any other corporation or entity of which Executive may serve as a director,
officer or employee at the request of Company or any successor of Company.

9.3 Reasonableness of Restrictions. Executive represents and agrees that the
restrictions on competition, as to time, geographic area, and scope of activity, required by this
section 9 are reasonable, do not impose a greater restraint than is necessary to protect the
goodwill and business interests of Company, and are not unduly burdensome to Executive. Executive
expressly acknowledges that Company competes on a nationwide basis and that the geographical scope
of these limitations is reasonable and necessary for the protection of Company’s trade secrets and
other confidential and proprietary information. Executive further agrees that these restrictions
allow Executive an adequate number and variety of employment alternatives, based on Executive’s
varied skills and abilities. Executive represents that Executive is willing and able to compete in
other employment not prohibited by this Agreement.

 

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9.4 Reformation if Necessary. In the event a court of competent jurisdiction
determines that the geographic area, duration, or scope of activity of any restriction under this
section 9 and its subsections is unenforceable, the restrictions under this section and its
subsections shall not be terminated but shall be reformed and modified to the extent required to
render them valid and enforceable. Executive further agrees that the court may reform this
Agreement to extend the one-year period of this covenant not to compete by an amount of time equal
to any period in which Executive is in breach of this covenant.

10. Confidentiality and Proprietary Rights. Executive agrees to read, sign and abide
by Company’s Employee Innovations and Proprietary Rights Assignment Agreement, which is provided
with this Agreement and incorporated herein by reference.

11. Nonsolicitation.

11.1 Nonsolicitation of Customers or Prospects. Executive acknowledges that
information about Company’s customers is confidential and constitutes trade secrets. Accordingly,
Executive agrees that during the Covenant Period Executive will not, either directly or indirectly,
separately or in association with others, interfere with, impair, disrupt or damage Company’s
relationship with any of its customers or customer prospects by soliciting or encouraging others to
solicit any of them for the purpose of diverting or taking away business from Company.

11.2 Nonsolicitation of Company’s Employees. Executive agrees that during the
Covenant Period, Executive will not, either directly or indirectly, separately or in association
with others, interfere with, impair, disrupt or damage Company’s business by soliciting,
encouraging or attempting to hire any of Company’s employees or causing others to solicit or
encourage any of Company’s employees to discontinue their employment with Company.

12. Injunctive Relief. Executive acknowledges that Executive’s breach of the
covenants contained in sections 9-11 (collectively “Covenants”) would cause irreparable injury to
Company and agrees that in the event of any such breach, Company shall be entitled to seek
temporary, preliminary and permanent injunctive relief without the necessity of proving actual
damages or posting any bond or other security.

13. Agreement to Arbitrate. To the fullest extent permitted by law, Executive and
Company agree to arbitrate any controversy, claim or dispute between them arising out of or in any
way related to this Agreement, the employment relationship between Company and Executive and any
disputes upon termination of employment, including but not limited to breach of contract, tort,
discrimination, harassment, wrongful termination, demotion, discipline, failure to accommodate,
family and medical leave, compensation or benefits claims, constitutional claims; and any claims
for violation of any local, state or federal law, statute, regulation or ordinance or common law.
Claims for injunctive relief pursuant to section 12 above are excluded. For the purpose of this
agreement to arbitrate, references to “Company” include all parent, subsidiary or related entities
and their employees, supervisors, officers, directors, agents, pension or benefit plans, pension or
benefit plan sponsors, fiduciaries, administrators, affiliates and all successors and assigns of
any of them, and this agreement shall apply to them to the extent Executive’s claims arise out of
or relate to their actions on behalf of Company.

13.1 Consideration. The mutual promise by Company and Executive to arbitrate any and
all disputes between them (except for those referenced above) rather than litigate them before the
courts or other bodies, provides the consideration for this agreement to arbitrate.

 

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13.2 Initiation of Arbitration. Either party may exercise the right to arbitrate by
providing the other party with written notice of any and all claims forming the basis of such right
in sufficient detail to inform the other party of the substance of such claims. In no event shall
the request for arbitration be made after the date when institution of legal or equitable
proceedings based on such claims would be barred by the applicable statute of limitations.

13.3 Arbitration Procedure. The arbitration will be conducted in Phoenix, Arizona by
a single neutral arbitrator and in accordance with the then current rules for resolution of
employment disputes of the American Arbitration Association (“AAA”). The parties are entitled to
representation by an attorney or other representative of their choosing. The arbitrator shall have
the power to enter any award that could be entered by a judge of the trial court of the State of
Arizona, and only such power, and shall follow the law. The parties agree to abide by and perform
any award rendered by the arbitrator. The arbitrator shall issue the award in writing and therein
state the essential findings and conclusions on which the award is based. Judgment on the award
may be entered in any court having jurisdiction thereof.

13.4 Costs of Arbitration. Company shall bear the costs of the arbitration filing and
hearing fees and the cost of the arbitrator.

14. General Provisions.

14.1 Successors and Assigns. The rights and obligations of Company under this
Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of
Company. Executive shall not be entitled to assign any of Executive’s rights or obligations under
this Agreement.

14.2 Waiver. Either party’s failure to enforce any provision of this Agreement shall
not in any way be construed as a waiver of any such provision, or prevent that party thereafter
from enforcing each and every other provision of this Agreement.

14.3 Attorneys’ Fees. Each side will bear its own attorneys’ fees in any dispute
unless a statutory section at issue, if any, authorizes the award of attorneys’ fees to the
prevailing party.

14.4 Severability. In the event any provision of this Agreement is found to be
unenforceable by an arbitrator or court of competent jurisdiction, such provision shall be deemed
modified to the extent necessary to allow enforceability of the provision as so limited, it being
intended that the parties shall receive the benefit contemplated herein to the fullest extent
permitted by law. If a deemed modification is not satisfactory in the judgment of such arbitrator
or court, the unenforceable provision shall be deemed deleted, and the validity and enforceability
of the remaining provisions shall not be affected thereby.

14.5 Interpretation; Construction. The headings set forth in this Agreement are for
convenience only and shall not be used in interpreting this Agreement. This Agreement has been
drafted by legal counsel representing Company, but Executive has participated in the negotiation of
its terms. Furthermore, Executive acknowledges that Executive has had an opportunity to review and
revise the Agreement and have it reviewed by legal counsel, if desired, and, therefore, the normal
rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of this Agreement.

 

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14.6 Governing Law. This Agreement will be governed by and construed in accordance
with the laws of the United States and the State of Arizona. Each party consents to the
jurisdiction and venue of the state or federal courts in Phoenix, Arizona, if applicable, in any
action, suit, or proceeding arising out of or relating to this Agreement.

14.7 Notices. Any notice required or permitted by this Agreement shall be in writing
and shall be delivered as follows with notice deemed given as indicated: (a) by personal delivery
when delivered personally; (b) by overnight courier upon written verification of receipt; (c) by
telecopy or facsimile transmission upon acknowledgment of receipt of electronic transmission; or
(d) by certified or registered mail, return receipt requested, upon verification of receipt.
Notice shall be sent to the addresses set forth below, or such other address as either party may
specify in writing.

14.8 Survival. Sections 9 (“Post-Termination Non-Competition”), 10 (“Confidentiality
and Proprietary Rights”), 11 (“Nonsolicitation”), 12 (“Injunctive Relief”), 13 (“Agreement to
Arbitrate”), 14 (“General Provisions”) and 16 (“Entire Agreement”) of this Agreement shall survive
Executive’s employment by Company.

15. Code Section 409A Compliance.

15.1 This Agreement is intended to comply with, or otherwise be exempt from, Section 409A of
the Code and any regulations and Treasury guidance promulgated thereunder.

15.2 Company and Executive agree that they will execute any and all amendments to this
Agreement as they mutually agree in good faith may be necessary to ensure compliance with the
provisions of Section 409A of the Code.

15.3 The preceding provisions, however, shall not be construed as a guarantee by Company of
any particular tax effect to Executive under this Agreement. Company shall not be liable to
Executive for any payment made under this Agreement, at the direction or with the consent of
Participant, which is determined to result in an additional tax, penalty or interest under Section
409A of the Code, nor for reporting in good faith any payment made under this Agreement as an
amount includible in gross income under Section 409A of the Code.

15.4 For purposes of Section 409A of the Code, the right to a series of installment payments
under this Agreement shall be treated as a right to a series of separate payments.

15.5 With respect to any reimbursement of expenses or any provision of in-kind benefits to
Executive specified under this Agreement, such reimbursement of expenses or provision of in-kind
benefits shall be subject to the following conditions: (1) the expenses eligible for reimbursement
or the amount of in-kind benefits provided in one taxable year shall not affect the expenses
eligible for reimbursement or the amount of in-kind benefits provided in any other taxable year,
except for any medical reimbursement arrangements providing for the reimbursement of expenses
referred to in Section 105(b) of the Code; (2) the reimbursement of an eligible expense shall be
made no later than the end of the year following the year in which such expense was incurred; and
(3) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange
for another benefit.

 

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15.6 For purposes of Section 409A of the Code, the date as of which Company and Executive
reasonably anticipate that no further services would be performed by Executive shall be construed
as the date that Executive first incurs a “separation from service” as defined under Section 409A
of the Code.

15.7 Notwithstanding anything in this Agreement to the contrary, if a payment obligation
arises on account of Executive’s separation from service while Executive is a “specified employee”
as described in Section 409A of the Code and the Treasury Regulations thereunder and as determined
by the Company in accordance with its procedures, by which determination Executive is bound, any
payment of “deferred compensation” (as defined under
Treasury Regulation Section 1.409A-1(b)(1),
after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through
(b)(12)) shall be made on the first business day of the seventh month following the date of
Executive’s separation from service, or, if earlier, within fifteen (15) days after the appointment
of the personal representative or executor of Executive’s estate following his death.

16. Entire Agreement. This Agreement, including the Company Employee Innovations and
Proprietary Rights Assignment Agreement incorporated herein by reference and any documents related
to Executive’s equity awards, constitutes the entire agreement between the parties relating to this
subject matter and supersedes all prior or simultaneous representations, discussions, negotiations,
and agreements, whether written or oral. This Agreement may be amended or modified only with the
written consent of Executive and the Chief Executive Officer of Company. No oral waiver, amendment
or modification will be effective under any circumstances whatsoever.

THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY
PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN
BELOW.

	 	 	 	 	 
	 	MARK MUMFORD

 	 
	Dated:      May 21, 2008 	
 	 
	 	[Insert address] 	 
	 	 	 	 
	 	P.F. Chang’s China Bistro, Inc.

 	 
	Dated:      May 21, 2008 	By:  	 	 
	 	 	Richard L. Federico 	 
	 	 	Chief Executive Officer

7676 East Pinnacle Peak Road

Scottsdale, AZ  85255 	 
	 

 

-10-Filed by Bowne Pure Compliance

Exhibit 10.33

P.F. CHANG’S CHINA BISTRO, INC.

NON-EMPLOYEE DIRECTOR COMPENSATION PLAN

1. Establishment and Objectives of the Plan

P.F. Chang’s China Bistro, Inc., a Delaware corporation (the “Company”), by action of its
Board of Directors (the “Board”), has adopted this P.F. Chang’s China Bistro, Inc. Non-Employee
Director Compensation Plan (the “Plan”) for the benefit of Non-Employee Directors of the Company,
effective April 17, 2008 (the “Effective Date”). The Plan is a new deferred compensation plan
intended to advance the interests of the Company by providing the Company an advantage in
attracting and retaining Non-Employee Directors and by providing Non-Employee Directors with
additional incentive to serve the Company by increasing their proprietary interest in the success
of the Company. All equity-based awards under this Plan shall be made pursuant to an Equity Plan.

2. Definitions

As used in the Plan, the following definitions apply to the terms indicated below.

(a) “Account” means a bookkeeping reserve account to which Restricted Stock Units shall be
credited on behalf of Non-Employee Directors.

(b) “Affiliate” means any entity, whether now or hereafter existing, which controls, is
controlled by, or is under common control with, the Company (including, but not limited to, joint
ventures, limited liability companies and partnerships), as determined by the Board.

(c) “Annual Meeting” means the annual meeting of stockholders of the Company held on the
relevant Annual Meeting Date.

(d) “Annual Meeting Date” means the date of the Company’s Annual Meeting for the relevant Plan
Year.

(e) “Annual Retainer” means the retainer fee established by the Board in accordance with
Section 4.1 and payable to a Non-Employee Director for services performed as a member of the Board
of Directors.

(f) “Appointment Date” means the date that a New Director first joins the Board as a
Non-Employee Director, provided such date is not an Annual Meeting Date.

(g) “Award” means an Option or Restricted Stock Unit, as applicable, granted under the Equity
Plan as provided in this Plan.

(h) “Board” or “Board of Directors” means the Board of Directors of the Company.

 

 

 

(i) “Change in Control” means the occurrence of any of the following:

(1) an Ownership Change Event or a series of related Ownership Change Events (collectively, a
“Transaction”) in which the stockholders of the Company immediately before the
Transaction do not retain immediately after the Transaction, in substantially the same proportions
as their ownership of shares of the Company’s voting stock immediately before the Transaction,
direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined
voting power of the outstanding voting securities of the Company or, in the case of an Ownership
Change Event, the entity to which the assets of the Company were transferred (the “Transferee”) as
the case may be; or

(2) the liquidation of the Company.

For purposes of the preceding sentence, indirect beneficial ownership shall include, without
limitation, an interest resulting from ownership of the voting securities of one or more
corporations or other business entities which own the Company or the Transferee, as the case may
be, either directly or through one or more subsidiary corporations or other business entities. The
Board shall have the right to determine whether multiple sales or exchanges of the voting
securities of the Company or multiple Ownership Change Events are related, and its determination
shall be final, binding and conclusive.

(j) “Change in Control Event” shall have the meaning ascribed thereto under Code Section
409A(a)(2)(A)(v) with respect to a change in the ownership or effective control of the Company, or
in the ownership of a substantial portion of the assets of the Company.

(k) “Code” means the Internal Revenue Code of 1986, as amended, and the regulations and
guidance promulgated thereunder.

(l) “Common Stock” means the Company’s common stock, par value $0.001 per share.

(m) “Company” means P.F. Chang’s China Bistro, Inc., a Delaware corporation.

(n) “Disability” or “Disabled” means the inability to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment that is expected to
result in death or last for a continuous period of not less than twelve months, as determined in
accordance with Code Section 409A.

(o) “Effective Date” means April 17, 2008.

(p) “Elected Payment Date” means the date (if any) elected by a Non-Employee Director pursuant
to Section 5 of this Plan for the payment of vested Restricted Stock Units.

(q) “Election Form” means the form approved by the Board for use by a Non-Employee Director to
select the form of payment of the Annual Retainer and an Elected Payment Date, if applicable.

(r) “Election” mean a Non-Employee Director’s election as to the form of payment of the Annual
Retainer and Payment Election, if applicable.

 

 

 

(s) “Equity Plan” means any equity compensation plan that has been approved by the Company’s
stockholders, from time to time, provided that such equity compensation plan provides for the
applicable Award.

(t) “Fair Market Value” means the closing price of a share of Common Stock as quoted on such
national or regional securities exchange or market system constituting the primary market for the
Common Stock on the last trading day prior to the day of determination, as reported in The Wall
Street Journal or such other source as the Company deems reliable.

(u) “New Director” means a Non-Employee Director of the Company who first becomes a member of
the Board of Directors on a date that is not an Annual Meeting Date.

(v) “Non-Employee Director” means a member of the Board who, at the time of his or her
service, is not an employee of the Company or any Affiliate.

(w) “Option” means a nonstatutory stock option to purchase one share of Common Stock granted
pursuant to the Equity Plan as provided under this Plan.

(x) “Ownership Change Event” means any of the following which occurs with respect to the
Company: (i) the direct or indirect sale or exchange in a single or series of related transactions
by the stockholders of the Company of more than 50% of the voting stock of the Company; (ii) a
merger or consolidation in which the Company is a party; or (iii) the sale, exchange or transfer of
all or substantially all, as determined by the Board in its discretion, of the assets of the
Company.

(y) “Payment Date” means the date on which the first of the events set forth in Section
4.3(c)(iii) shall occur.

(z) “Payment Election” means a written election made in accordance with the provisions of
Section 5 to select an Elected Payment Date with regard to an award of Restricted Stock Units.

(aa) “Plan” means this P.F. Chang’s China Bistro, Inc. Non-Employee Director Compensation
Plan.

(bb) “Plan Year” means the twelve-month period coinciding with the calendar year.

(cc) “Prorated Amount” means, with respect to a New Director, an amount equal to: (1) the
Annual Retainer reduced by the product of (x) the quotient determined by dividing (i) the Annual
Retainer by (ii) 365 days, multiplied by (y) the number of days between the Appointment Date and
the Annual Meeting Date immediately preceding the New Director’s Appointment Date (excluding the
Annual Meeting Date itself).

(dd) “Restricted Stock Unit” means a unit established on the Company’s books which is
equivalent to one share of Common Stock, which unit is granted pursuant to the Equity Plan as
provided under this Plan.

 

 

 

(ee) “Termination Date” means the date on which the Non-Employee Director ceases to be a
member of the Board of Directors of the Company.

(ff) “Vesting Date” means, with respect to each Option or Restricted Stock Unit, the
applicable date upon which such Award vests pursuant to Section 5.

3. Administration of the Plan

Except as otherwise provided herein, the Plan shall be administered by the Board. The Board
shall have full authority to administer the Plan, including authority to interpret and construe any
provision of the Plan and the terms of any Award granted under it and to adopt such rules and
regulations for administering the Plan as it may deem necessary. Decisions of the Board shall be
final and binding on all parties.

4. Annual Retainer

4.1 Amount of Annual Retainer. Until changed by resolution of the Board, the amount of the
Annual Retainer will be $175,000 for each Non-Employee Director, plus $20,000 for the Lead
Director, $20,000 for the Chair of the Audit Committee, and $10,000 for each of the Chairs of the
Compensation and Executive Development Committee and the Nominating and Corporate Governance
Committee.

4.2 Entitlement to Annual Retainer.

(a) Each Non-Employee Director who is duly elected and qualified as such at the Annual Meeting
or who is otherwise serving as a Non-Employee Director immediately following the Annual Meeting,
shall receive an Annual Retainer, a portion of which shall be paid in cash and a portion of which
shall be paid in Options and/or Restricted Stock Units, as provided in Section 4.3.

(b) Each New Director shall receive an Annual Retainer equal to the Prorated Amount on his or
her Appointment Date, a portion of which shall be paid in cash and a portion of which shall be paid
in Options and/or Restricted Stock Units, as provided in Section 4.3.

4.3 Payment of Annual Retainer in Cash, Options and/or Restricted Stock Units. Each
Non-Employee Director shall be permitted, in accordance with the election provisions set forth in
Section 5, to make an Election to receive not less than 50%, nor more than 75%, of the Annual
Retainer in the form of (a) Options; (b) Restricted Stock Units; or (c) 50% Options and 50%
Restricted Stock Units. Any Non-Employee Director who fails to make an Election in accordance with
the provisions set forth in Section 5 shall receive the Annual Retainer paid 50% in cash and 50%
paid in Options.

(a) The portion of the Annual Retainer that is paid in cash shall be paid in accordance with
the Company’s policies for payment of cash retainers.

 

 

 

(b) The portion of the Annual Retainer payable in Options shall consist of the number of
Options (rounded down to the nearest whole number) determined in good faith by the
Company using the option valuation model and assumptions thereunder set forth in the financial
statements of the Company most recently filed with the Securities and Exchange Commission. Such
Options shall (i) be granted on the first date following the Annual Meeting Date or the Appointment
Date, as applicable, on which sales of Common Stock may be made by officers and directors subject
to the Company’s then current Insider Trading Policy; (ii) expire, to the extent not sooner
exercised, terminated or forfeited, on the tenth anniversary of the grant date; (iii) have an
exercise price per share equal to the Fair Market Value of one share of Common Stock on the grant
date; (iv) become vested and exercisable on the earliest of (I) the first anniversary of the grant
date, (II) the Non-Employee Director’s death or Disability or (III) a Change in Control; and (v) be
subject to such additional terms and conditions as the Board shall specify and the terms and
conditions of the applicable Equity Plan under which the Options are granted.

(c) The portion of the Annual Retainer payable in Restricted Stock Units shall be equal to a
number of Restricted Stock Units (rounded down to the nearest whole number) equal to one-third the
number of Options that would be granted pursuant to Section 4.3(b) if such portion of the Annual
Retainer were payable in Options. Such Restricted Stock Units shall (i) be granted on the first
date following the Annual Meeting Date or the Appointment Date, as applicable, on which sales of
Common Stock may be made by officers and directors subject to the Company’s then current Insider
Trading Policy; (ii) vest on the earliest of (I) the first anniversary of the grant date, (II) the
Non-Employee Director’s death or Disability or (III) a Change in Control; (iii) be paid in one
share of Common Stock for each vested Restricted Stock Unit no later than 30 days following the
earliest of (I) the Non-Employee Director’s Termination Date, (II) the effective date of a Change
in Control Event and (III) the applicable Elected Payment Date (if any); (iv) be credited with
dividend equivalents as provided in the applicable Equity Plan; and (v) be subject to such
additional terms and conditions as the Board shall specify and the terms and conditions of the
applicable Equity Plan under which the Restricted Stock Units are granted.

5. Elections

5.1 Election Rules. Elections shall be made by filing an Election Form with the Secretary of
the Company in accordance with the following rules.

(a) Elections must be made by December 31st of the Plan Year immediately preceding
the Plan Year for which such Election is effective, provided, however, that (i) in the initial Plan
Year commencing in 2008, a Non-Employee Director may make an Election on or before the Effective
Date, and (ii) Elections by a New Director may be made prior to the Appointment Date.

(b) Elections may not be revoked or modified with respect to the Annual Retainer payable
during any Plan Year for which the Elections are effective. Elections will remain in effect from
Plan Year to Plan Year unless modified prospectively by the Non-Employee Director for a subsequent
Plan Year. Modifications to a Non-Employee Director’s current Elections for any subsequent Plan
Year may be made by filing a new Election Form by December 31st of the Plan Year
preceding the Plan Year for which the modified Elections are to become effective.

 

 

 

5.2 Change of Elected Payment Date. An Elected Payment Date with regard to an Award of
Restricted Stock Units may be changed only if the following is satisfied: (i) the subsequent
election shall not take effect until at least 12 months after the date on which the subsequent
election is made; (ii) the Elected Payment Date under the subsequent Payment Election must be at
least five years after the Elected Payment Date of the current Payment Election; and (iii) the
subsequent Payment Election is made at least 12 months prior to the Elected Payment Date under the
current Payment Election.

6. Adjustments for Changes in Capital Structure, Etc.

The provisions of the Equity Plan governing changes in capital structure, etc., shall apply to
Awards granted pursuant to the Equity Plan as provided under this Plan.

7. Modification and Termination

The Board may at any time and from time to time, alter, amend, modify or terminate the Plan in
whole or in part.

8. Successors

All obligations of the Company under the Plan will be binding on any successor to the Company,
whether the existence of the successor is the result of a direct or indirect purchase of all or
substantially all of the business and/or assets of the Company, or a merger, consolidation, or
otherwise.

9. Reservation of Rights

Nothing in this Plan or in any Award provided under this Plan will be construed to limit in
any way the right of the Board or the stockholders to remove a Non-Employee Director from the Board
of Directors.

10. Miscellaneous

10.1 Gender and Number. Except where otherwise indicated by the context, any masculine term
used herein will also include the feminine; the plural will include the singular and the singular
will include the plural.

10.2 Requirements of Law. The issuance of payments under the Plan will be subject to all
applicable laws, rules, and regulations.

10.3 Tax Law Compliance. To the extent any provision of the Plan or action by the Board or
Plan Administrator would subject any Non-Employee Director to liability for interest or additional
taxes under Code Section 409A, it will be deemed null and void, to the extent permitted by law and
deemed advisable by the Board. It is intended that the Plan and all Awards granted thereunder will
comply with Section 409A of the Code and any regulations and guidelines issued thereunder, and the
Plan and all Award agreements shall be interpreted and
construed on a basis consistent with such intent. The Plan and all Award agreements may be
amended in any respect deemed necessary (including retroactively) by the Board in order to preserve
compliance with Section 409A of the Code.

 

 

 

10.4 Unfunded Status of the Plan. The Plan is intended to constitute and at all times shall
be interpreted and administered so as to qualify as an unfunded deferred compensation plan. To the
extent that any Non-Employee Director or other person acquires a right to receive payments from the
Company pursuant to the Plan or any Award made under the Plan, such right shall be no greater than
the right of any unsecured general creditor of the Company.

10.5 Governing Law. The validity, construction and effect of the Plan, of Award agreements
entered into pursuant to the Plan, and of any rules, regulations, determinations or decisions made
by the Plan Administrator relating to the Plan or such Award agreements, and the rights of any and
all persons having or claiming to have any interest herein or hereunder, shall be determined
exclusively in accordance with applicable federal laws and the laws of the State of Delaware,
without regard to its conflict of laws principles.

10.6 Nontransferability. A Non-Employee Director’s Account and Awards may not be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by
the laws of descent and distribution. All rights with respect to an Account and other Awards will
be available during the Non-Employee Director’s lifetime only to the Non-Employee Director or the
Non-Employee Director’s guardian or legal representative. The Board of Directors may, in its
discretion, require a Non-Employee Director’s guardian or legal representative to supply it with
evidence the Board of Directors deems necessary to establish the authority of the guardian or legal
representative to act on behalf of the Non-Employee Director.

* * * * *

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