EXHIBIT 99.2
Books-A-Million, Inc.
Form of Letter Regarding the 2005 Bonus Program
January 7, 2004
[Name]
[Address 1]
[Address 2]
Dear [Name]:
This letter is to confirm your compensation for the year ending January 29,
2005. Your annual salary will be $______________ and your maximum bonus payout
will be ___% of your salary. Bonuses will be paid out based upon the company
meeting certain pre-tax earnings goals as well as meeting personal goals. Your
new bonus structure is outlined in the table below. In addition, if the company
does not meet pre-tax earnings of $_______________ no portion of bonuses will be
paid, including the personal goals bonus. To be eligible for any bonus payout,
you must be employed by the company through the annual financial statement audit
(approximately March 17, 2005). Payments will be based on audited financial
statements. Your employment with Books-A-Million is not for any definite
duration, and can be terminated at any time by you or the company.
Salary $ XXXXXX
Maximum Bonus % xx%
Maximum Bonus $ XXXXXX
Personal Goals % xx% $ XXXXXX
Company Performance % xx% $ XXXXXX
Company Performance Bonus Goal
Bonus Payment of
Pre-Tax Earnings Bonus Payout % Company Goals
- ---------------- -------------- ----------------
XXXXXXXX xx.x% XXXXXXXX
XXXXXXXX xx.x% XXXXXXXX
XXXXXXXX xx.x% XXXXXXXX
XXXXXXXX xx.x% XXXXXXXX
XXXXXXXX xx.x% XXXXXXXX
Personal Performance Bonus Goals
Bonus Payout
# Description Personal Goals
- -------------- ------------- --------------
1 XXXXXXXX XXXXXXXX
2 XXXXXXXX XXXXXXXX
3 XXXXXXXX XXXXXXXX
Total: XXXXXXXX
Capped at XXXXXXXX
Your hard work and dedication over the past year is greatly appreciated. We
are all striving to achieve the best results for the company and are thankful
for your past and future contributions to the company's success. Sincerely,
----------------------------
Name Date
Title
I, __________________________, hereby understand and willingly accept the
terms and conditions for this bonus program for FY 2005. I will strive to
achieve all objectives set forth as conditions of employment at Books-A-Million.
----------------------------
Name Date