Common use of Bonus and Stock Options Clause in Contracts

Bonus and Stock Options. a) For each full fiscal year of Nutrition 21 during your employment in which Nutrition 21 has positive EBITDA, Nutrition 21 will pay to you a bonus equal to 0.25% (but not more than $50,000) of N21’s direct response sales in excess of $30 million during such fiscal year, plus 2.5% (but not more than $100,000) of direct response operating profits in excess of $3 million during such fiscal year. b) The following definitions apply if Nutrition 21, during the period (the “Option Period”) from the Closing until December 31, 2007, grants to similarly situated executives options to purchase in excess of 2,000,000 shares of Nutrition 21 common stock (“Common Stock”):