Succession of our Chief Executive Officer and our Chairman

        On January 6, 2009, Stephen H. Marcus (“Mr. Steve Marcus”) retired from his position as our chief executive officer, but retained his position as our chairman of the board. Additionally, Mr. Steve Marcus remains actively involved in our business, serving on our Investment Committee and working on the development of our strategic initiatives. In connection with Mr. Steve Marcus’ retirement as our chief executive officer, on January 6, 2009, Gregory S. Marcus (“Mr. Greg Marcus”) was elected our chief executive officer to succeed Mr. Steve Marcus. Mr. Greg Marcus also retained his position as our president, which he has held since January 2008.

        In connection with his retirement as our chief executive officer and his new employment relationship with us, Mr. Steve Marcus’ compensation arrangement was revised. His annual base salary was decreased to $350,000 and his annual target incentive bonus percentage was decreased to 30% of his base salary, each on a pro rated basis. Previously for fiscal 2009, Mr. Steve Marcus’ base salary was $625,000 and his target incentive bonus percentage was 95% of his base salary. Likewise, in connection with his appointment as our chief executive officer, Mr. Greg Marcus’ compensation arrangement was revised. His annual base salary was increased to $500,000 and his annual target incentive bonus percentage was increased to 80% of his base salary, each on a pro rated basis. Additionally, the relative weighting for determining Mr. Greg Marcus’ fiscal 2009 target incentive bonus was changed from 60% / 40% corporate performance / individual performance to 80% / 20% corporate performance / individual performance, all determined on a pro rated basis. Previously for fiscal 2009, Mr. Greg Marcus’ base salary was $450,000 and his target incentive bonus percentage was 50% of his base salary. Both of these new compensation arrangements were effective as of January 6, 2009.

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        Our Committee determined these new amounts of base salary and bonus targets for each of Messrs. Steve Marcus and Greg Marcus based generally on the factors described below under “Elements of Compensation-Base Salary” and “Elements of Compensation-Annual Cash Bonuses.”