Hospitality Included

Why are we doing this? To provide professional and financial growth for all of our people Hospitality is a team sport, and our current system doesn’t reflect the true nature of the culture you are a part of.

Why are we doing this? As a profession we want to: Improve Culinary Team pay Keep the Service Team equivalent or better Make management a viable step for all Minimize the impact to our guests We believe North End Grill can and should be a career, not just a job

Compensation under Hospitality Included We are going to raise base wages for all dining room hourly staff Minimum of $11.00/hr for our Service Team We will be launching our Revenue Sharing program for the Service Team, and our goal is to eventually include our kitchens in the financial wins of the restaurant.

So what is Revenue Share? Each position has three levels: 100, 200, 300 New Employees come in at 100 Level Share increments will be earned at 100, 200, 300 values at differing increments depending on the position Increasing share ranges allow for the range of earnings within a role to broaden as you progress through your career and to encourage movement to allow others the opportunity to advance as well. You do not need to top out in your position to receive a promotion to another position There’s not a defined path – your career is up to you We want you to explore other areas of the restaurant Internal training will receive half-shares at their new position

Revenue Share How is Revenue Share calculated? Revenue Share Pool (% of weekly revenue) $18,500 numerator Outstanding shares 125,000 shares denominator Revenue share is over the entire week, not dependent on shifts worked or if guests leave a tip or not Each individual will receive shares based on their position, skill level, and overall contribution to the success of the team Those shares follow you, regardless of what position you work that day Those shares combine with hours worked to get total shares for that week If you earn 100 shares and work 40 hours that week, you would have 4,000 individual weekly shares that week. All individuals’ weekly shares combine to form that week’s “Outstanding Shares.” Share Value $0.148 Individual Weekly Shares: 40 hours x 100 shares 4,000 shares $0.148 4,000 Individual Shares $592 Weekly Revenue Share

So what is Revenue Share? We will begin with a total Revenue Sharing Pool of 11.0% This is a smaller piece of a much a larger pie – Revenue includes increased menu prices in the bar, dining room and PDR This percentage is what we believe it will take to keep the team equivalent Take note that revenue share also combines into your base wage when you earn OT hours. The formula is complicated, but the gist is that not your OT rate is going to include your revenue share. That was not the case in a tipping system. Note: PDR Admin is now in menu price, too.

So what is Revenue Share? What goes into Revenue Share? ALL food and beverage revenue, including PDR Certain Comps: Any full meal/large comp from Executive Leadership, Donations, Dining Dollars (but not the 20% discount) What doesn’t earn Revenue Share? Training Service Training: Paid at $11/hr; Education: Paid at $11/hr Call-in Pay Paid at $11/hr PTO Existing employees training now get revenue share to remove financial burden of growth. Existing employees are still contributing while training.

SHARE VALUES BY POSITION FOR INTERNAL USE ONLY Share Values SHARE VALUES BY POSITION Primary Position1 TRAIN LEVEL 100 LEVEL 200 LEVEL 300 LEVEL Trainee Host/Reso/Coat 15 30 35 40 FOH Support 20 50 60 Barista Expeditor 70 75 Maitre D' 105 Server 48 95 120 130 Sommelier 140 Bartender CONFIDENTIAL

The Guarantee We have a established a ground floor rate for each position based off of the average rate for your position on a monthly basis, using historical data that includes OT and all tips Ground floor rates are different for April, May, June and July PTO was excluded to benefit you We are guaranteeing you that hourly rate for each hour you work in each of those months If you do not achieve your ground floor over that time we will pay you the difference Paychecks monitored weekly, and we’ll be meeting with you monthly Remember that the reason we are doing this is to make all of your lives better. When we talk of average earnings, take note that half were earning more and half were earning less. We used the average and not the floor.

The Guarantee Why are we doing this? We believe that our model works in real life as well as it does in model-form, but we don’t think that risk should be borne by you If necessary during these 12 weeks we will be fine-tuning the model in real-time to assure that we are honoring you as a team Model is based on current conditions and the guest component and staffing levels might lead us to incremental improvements By month three, we should be where we want to be and month four should be a smooth transition We intend for you to make more than this rate. This is a floor based on an average, rather than the lowest rate, to show our commitment to you Anything above this floor is yours. We hope and intend and deeply believe that our Revenue Sharing program will be a win for our team.

Historical Hourly Rates by Position FOR INTERNAL USE ONLY Historical Hourly Rates by Position CONFIDENTIAL

Buyouts Buyouts will be paid out at the Guarantee rate for each position

What will this mean for our guests? Our prices will increase across the board, but not evenly The goal is to keep the change in total cost to our guests – given their current average gratuity – as minimal as possible Price increases are item by item, with wine and beverage also priced differently and separately In order to meet our short-term forecasts, we need to achieve revenue increase of at least 23.5% We have thoroughly and exhaustively analyzed our menu mix and pricing. In order for us to achieve success, we need to get revenue to a 25% increase. Menu price increases are limited, but our potential to affect revenue is not. This needs to be our focus. Regarding the 25% increase to revenue, we already did some of this – and your revenue share pool has been modeled with this.

Additional Gratuity There will be no tip line on our checks If guests write any amount above the total, we will add it separately as additional gratuity. This will require a manager’s punch Tips left by chance will be paid out as follows: Somms/Bartenders/Servers 100pts Expeditor/Barista/Support 99pts Maitre D’ 98pts Host/Coat Check 97pts

What would cause a change? What’s our policy on shifting the revenue share? Our goal is to minimize changes and remain stable. We want to get it right in the first 12 weeks Transparent process Four weeks notice for any changes after the guaranteed 12 weeks Serves as review period where we provide opportunities for comments and questions We will always share why and what we believe the effect will be on your pay

What to expect next 4/22-4/25: HI Check-Ins: 4/22, 4/25, 4/26, 4/27: PM Line up Trainings 5/4: Optional Paycheck Training 5/13, 5/14, 5/15, 5/16: HI Paycheck Check-Ins 5/20: Nurturing Growth Training