Common use of Short Term Incentives Clause in Contracts

Short Term Incentives. For each calendar year ending during the --------------------- Employment Term, the Executive's bonus compensation ("Annual Bonus") shall be at an annual rate equal to a percentage between 0% and 100% of his Base Salary in effect on the last day of such year, with a target of 40% of Base Salary (the "Targeted Bonus") if the Company and the Executive achieve budgeted financial and other performance targets which shall be established by the Board and as set forth in the Company's Business Plan (the "Performance Goals"). The Executive's Annual Bonus shall be 60% of Base Salary if 120% of the Performance Goals are achieved and a percentage less than 40% of Base Salary to be determined by the Board if the Company's performance falls short of the Performance Goals. The Executive's Annual Bonus earned with respect to each year shall be paid at the same time as annual incentive bonuses with respect to that year are paid to other senior executives of the Company generally.