Common use of Lump Sum Bonus Clause in Contracts

Lump Sum Bonus. Employers will pay Employee a one-time, lump sum bonus in consideration of the retention bonus that Employee was due to receive from his current employer (“Retention Bonus”). The amount of the Retention Bonus will be $50,000 less the amount paid to Employee by his current employer as and for the Retention Bonus and all applicable withholdings. The Retention Bonus shall be paid within 30 days after Employee provides evidence of the amount that his previous employer has paid towards the Retention Bonus. The following example is meant to illustrate how this provision is to work: Assume that on August 1, 2007, Employee receives $32,000 as the retention bonus from his former employer. Employee’s lump sum bonus from Employers would be $18,000 less all applicable withholdings and would be due and payable by August 31, 2007.