Common use of Annual Discretionary Bonus Clause in Contracts

Annual Discretionary Bonus. Following the end of each fiscal year, the Executive will be eligible to receive an annual performance bonus of up to 40% of the Executive’s Base Salary (the “Target Bonus”), based upon the Board’s (or a committee thereof) assessment, in its sole discretion, of the Executive’s performance and the Company’s performance during the applicable fiscal year. No annual bonus or minimum amount thereof is guaranteed, and the Executive must be an employee in good standing on the date that annual bonuses are paid out in order to be eligible for and to earn any annual bonus, as it also serves as an incentive to remain employed by the Company.

Annual Discretionary Bonus. Following the end of each fiscal year, the Executive will be eligible to receive an annual performance bonus of up to 4050% of the Executive’s Base Salary (the “Target Bonus”), based upon the Board’s (or a committee thereof) assessment, in its sole discretion, of the Executive’s performance and the Company’s performance during the applicable fiscal year. Any such bonus shall be paid not later than the end of the first quarter of the subsequent year. No annual bonus or minimum amount thereof is guaranteed, and the Executive must be an employee in good standing on the date that annual bonuses are paid out in order to be eligible for and to earn any annual bonus, as it also serves as an incentive to remain employed by the Company.