Common use of Initial Performance Bonus Clause in Contracts

Initial Performance Bonus. Executive shall be entitled to an initial performance bonus (the “Initial Performance Bonus”) of One Million Five Hundred Thousand Dollars ($1,500,000) if the Company (i) achieves positive retained earnings equal to or greater than Five Million Dollars ($5,000,000) not later than the fiscal quarter ending December 31, 2012 (the “Target Retained Earnings”), and (ii) the Company’s positive retained earnings are equal to or greater than the Target Retained Earnings at the end of the two fiscal quarters immediately following the quarter in which the Company initially achieved the Target Retained Earnings (the “Initial Performance Bonus Trigger”). In the event the Company achieves the Initial Performance Bonus Trigger, the Initial Performance Bonus shall be paid by the Company to Executive as follows (i) Seven Hundred and Fifty Thousand Dollars ($750,000) between January 1 and January 31 of the year immediately following the date on which the Company achieved the Initial Performance Bonus Trigger, and (ii) Seven Hundred and Fifty Thousand Dollars ($750,000) between January 1 and January 31 of the second year following the date on which the Company achieved the Initial Performance Bonus Trigger.