Common use of Bonus Arrangements Clause in Contracts

Bonus Arrangements. (i) By agreeing to the new arrangements, you will also waive your entitlement to payments earned in the first two quarters under the 2002/03 Senior Management Incentive Plan. (ii) The provisions of this paragraph (ii) will last for eighteen months starting on the Effective Date. As mentioned above, in addition to any entitlement under clause 16.2 of the service agreement (which relates to the Company making a payment in lieu of contractual notice), if: (a) within eighteen months commencing on the Effective Date[the Company][Miranda Communications Inc.] elects (with or without notice) to terminate your employment by making a payment to you in lieu of notice (under clause 16.2(a) or (b) of the new service agreement) or (within the same period) [the Company][Miranda Corporation Inc.] terminates your employment by giving notice (under clause 2.4(a) of the new service agreement); and (b) on the expiry of the notice period or the Notional Notice Period (each being on EXPIRY DATE), no rights have vested to you under the Management Plan and none are due to vest subject to purely time-based vesting conditions. then within seven working days after the Expiry Date [the Company] will pay you an amount equal to the entitlement to payments earned in the first two quarters under the 2002/2003 Senior Management Incentive Plan (in total [ ] of your basic salary) which you waived under paragraph (i) above. For your rights under the Management Plan on termination of employment, you should refer to the enclosed rules of the Management Plan. Nothing in this letter will oblige [the Company] [Marconi Communications Inc.] to make any payment to you under this paragraph (ii) if [the Company] [Marconi Commincations Inc.] terminates your employment under clause 16.4 (termination for cause). You should also be aware that your award under the Management Plan is intended to provide your total variable compensation during the life of the Management Plan; it is not therefore currently anticipated that you will participate in any cash bonus plan operated within the new group until there are no outstanding but unvested option under the Management Plan. Clause 5 of the service agreement has been amended to reflect these arrangements.