Payment of Incentive Bonuses Clause Samples

The Payment of Incentive Bonuses clause establishes the terms under which additional compensation, beyond base salary or fees, is awarded to a party for meeting or exceeding specified performance targets. Typically, this clause outlines the criteria for earning bonuses, the calculation method, and the timing of payments, such as bonuses for achieving sales milestones or completing projects ahead of schedule. Its core function is to motivate performance by providing clear, contractual incentives and to ensure both parties understand when and how bonuses will be paid, thereby reducing disputes and aligning interests.
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Payment of Incentive Bonuses. The Chief Financial Officer shall calculate the Gross Margin and Pre-Tax Profits, if any, and any Base Incentive Bonus and Additional Incentive Bonus payable to the Executive in connection therewith, shall certify such calculations and shall deliver such calculations to the Executive and the Chairman of the Compensation Committee of the Company (for his review and approval) as soon as reasonably practicable after the end of each fiscal quarter, in the case of the Base Incentive Bonus, and the end of each fiscal year, in the case of the Base Incentive Bonus and Additional Incentive Bonus, but in any event within seventy-five (75) days following the end of the applicable fiscal period. Any Base Incentive Bonus and Additional Incentive Bonus payable hereunder shall be paid by the Company to the Executive within fifteen (15) days of delivery of such calculations by the Chief Financial Officer and in any event within ninety (90) days following the end of the applicable fiscal period.
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Payment of Incentive Bonuses. The entire amount of the Revenue Bonus up to 100% of the Revenue Target amount and the entire amount of the Margins Bonus up to 100% of the Margins Target amount (each determined separately) shall be paid in cash or by check. To the extent the Revenue Bonus or the Margins Bonus exceeds 100% of the Revenue Target or the Margins Target, as applicable, one-third of such excess amount shall be paid in cash or by check, and the remaining two-thirds shall be paid by the issuance to the Executive of a nonqualified stock option (the "Option") to purchase Common Stock of the Corporation, par value $0.001 per share ("Common Stock"). The cash amount of the Incentive Bonus shall be paid, and the Option portion of the Incentive Bonus shall be issued, within ten (10) days after the Calculation Date (as defined herein). In any event, the effective date of the grant of the Option shall be the last day of the period for which the Incentive Bonus was calculated. The exercise price per share of the Option shall be twenty-five percent (25%) of the Fair Market Value per share of the Common Stock as of the last day of the period for which the
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Payment of Incentive Bonuses. The entire amount of the EBITDA Bonus up to 100% of the EBITDA Target and the entire amount of the Margins Bonus up to 100% of the Margins Target (each determined separately) shall be paid in cash or by check. To the extent the EBITDA Bonus or the Margins Bonus exceeds 100% of the EBITDA Target or the Margins Target, as applicable, one-third of such excess amount shall be paid in cash or by check, and the remaining two-thirds shall be paid by the issuance to the Executive of a nonqualified stock option (the "Option") to purchase Common Stock of the Corporation, par value $0.001 per share ("Common Stock"). The cash amount of the Incentive Bonus shall be paid, and the Option portion of the Incentive Bonus shall be issued, within ten (10) days after the Calculation Date (as defined in Section 4(e) below). In any event, the effective date of the grant of the Option shall be the last day of the period for which the Incentive Bonus was calculated. The exercise price per share of the Option shall be twenty-five percent (25%) of the Fair Market Value per share of the Common Stock as of the last day of the period for which the Incentive Bonus was calculated. For purposes of this Section 4(c), Fair Market Value per share shall be determined in accordance with Section 4(f). The number of shares subject to the Option shall be determined by dividing the dollar amount of the Incentive Bonus payable in the form of the Option by an amount equal to seventy-five percent (75%) of the Fair Market Value per share of the Common Stock as of the last day of the period for which the Incentive Bonus was calculated. The Option shall be fully vested and exercisable as of the date of its grant and shall have a ten (10) year term. An example of the above calculation is as follows: Assume the EBITDA Bonus exceeds the EBITDA Target by $50,000. Assume further that the Fair Market Value per share is $12.00. The exercise price per share would be $12.00 x .25, or $3.00. The number of shares subject to the Option would be ($50,000 x .667) / ($12.00 x .75), or 3,704 shares.
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Payment of Incentive Bonuses. The entire amount of the At-Plan Bonus shall be paid in cash or by check. One-third of the Over-Plan Bonus shall be paid in cash or by check, and the remaining two-thirds shall be paid by the issuance to the Executive of a nonqualified stock option (the "Option") to purchase Common Stock of the Corporation, par value $0.001 per share ("Common Stock"). The cash amounts of the At-Plan Bonus and the Over-Plan Bonus shall be paid, and the Option portion of the Over-Plan Bonus shall be issued, within ten (10) days after the Calculation Date (as defined herein). In any event, the effective date of the grant of the Option shall be the last day of the period for which the Over-Plan Bonus was calculated. The exercise price per share of the Option shall be twenty-five percent (25%) of the Fair Market Value per share of the Common Stock as of the last day of the period for which the Over-Plan Bonus was calculated. For purposes of this Section 4(d), Fair Market Value per share shall be determined in accordance with Section 4(g). The number of shares subject to
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Related to Payment of Incentive Bonuses

  • Incentive Bonuses The Executive shall be eligible for an annual incentive bonus with a target amount equal to 50% of his Base Salary (the “Target Bonus”). The Executive’s bonus (if any) shall be awarded based on criteria established by the Company’s Board of Directors (the “Board”) or its Compensation Committee. The determinations of the Board or its Compensation Committee with respect to such bonus shall be final and binding. The Executive shall not be entitled to an incentive bonus if he is not employed by the Company on the last day of the fiscal year for which such bonus is payable.

  • Incentive Bonus During the Term, Employee shall be eligible to receive an incentive bonus up to the amount, based upon the criteria, and payable in such amount, at such times as are specified in Exhibit A attached hereto. The manner of payment, and form of consideration, if any, shall be determined by the Compensation Committee of the Board, in its sole and absolute discretion, and such determination shall be binding and final. To the extent that such bonus is to be determined in light of financial performance during a specified fiscal period and this Agreement commences on a date after the start of such fiscal period, any bonus payable in respect of such fiscal period's results may be prorated. In addition, if the period of Employee's employment hereunder expires before the end of a fiscal period, and if Employee is eligible to receive a bonus at such time (such eligibility being subject to the restrictions set forth in Section 6 below), any bonus payable in respect of such fiscal period's results may be prorated.

  • Incentive Bonus Plan Employee shall be eligible for a bonus opportunity of up to 65% of his annual base salary in accordance with the Company’s Incentive Bonus Plan as modified from time to time, payable in cash and/or equity of the Company (at the Company’s discretion). The bonus payment and the Company’s targeted performance shall be determined and approved by the Board or the compensation committee thereof.

  • Performance Bonuses The Executive will be eligible to receive an annual cash bonus at an annualized rate of up to 40% of his base salary, based on the achievement of reasonable individual and Company performance targets to be established by the Company and Parent.

  • Cash Incentive Bonus The pro rata share of any Cash Incentive Bonus that would have been paid to the Executive had the Executive not been terminated Without Cause based on the extent to which performance standards are met on the last day of the year in which the Executive is terminated Without Cause.