percentage of the individual performance component of an employees Bonus Objectives shall be awarded based upon the employees individual performance during the Plan Year.
Example: An employees annual salary is $100,000. Her Target Bonus is 20% of her base salary (or $20,000). Of this amount, 50% is based on corporate milestones ($10,000) and 50% is based on individual performance ($10,000).
At the end of the Plan Year, the Board determines that the Company has achieved 80% of its corporate goals. This means that the employee will be awarded $8,000 for the corporate portion of her bonus ($10,000 multiplied by 80%).
The CEO also determines that the employee has performed at the 90% level in terms of individual achievement. This means that the employee will be awarded $9,000 for the individual portion of her bonus ($10,000 multiplied by 90%).
Adding these amounts together, the employee would be awarded a $17,000 bonus.
The Board retains the discretion to adjust awards based upon any other factors determined by the Board to be relevant.
As set forth in Section 3, eligible employees must be employed by the Company on the date annual bonuses are paid for a Plan Year to earn an annual bonus for that Plan Year. Unless otherwise determined by the Managers, any employee whose employment terminates prior to the date that annual bonuses are paid for the applicable Plan Year will not be eligible for, and will not earn, an annual bonus for that Plan Year (including any partial or prorated bonus).
Any bonuses that are awarded will be paid no later than March 15th of the year following the Plan Year for which bonuses have been awarded. All bonuses shall be subject to standard deductions and tax withholdings.
This Plan may be amended, modified, or terminated at any time by the Board. It does not confer any rights upon an employee to remain in service with the Company for any specific duration or otherwise restrict in any way the rights of the Company to terminate an employees service with the Company for any reason, with or without cause or advance notice.
This Plan contains the entire agreement between the Company and its employees on this subject, and supersedes all prior bonus compensation plans or programs of the Company and all other previous oral or written statements regarding any such bonus compensation programs or plans.
This Plan shall be governed by and construed under the laws of the State of California.
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