Annual Target Bonuses. In respect of each calendar year falling within the Employment Period, Employee shall be eligible to earn an annual bonus of up to forty percent (40%) of Employee's Annual Base Compensation for that calendar year based on the results of operations of the Company, and the individual performance of Employee, as determined by the Compensation Committee in its sole discretion (the "Annual Target Bonus"). The amount of the Annual Target Bonus, if any, which is earned by Employee (the "Bonusable Amount") shall be paid by the Company to Employee following the close of the Company's calendar year consistent with the timing of similar bonus payments being made to other executives of the Company for such year, subject to Employee's continued employment through December 31 of the applicable calendar year. In the absolute discretion of the Company's Compensation Committee, Employee may be entitled to receive an additional discretionary bonus, as and if the Company shall determine from time to time. Any Bonusable Amount or other bonus due to Employee hereunder will be payable not later than March 15th following the close of the calendar year for which the bonus was earned.
Annual Target Bonuses. The Board of Directors is authorized to grant, in its sole discretion, and in accordance with the terms and conditions contained herein, annual target bonuses for each completed fiscal year to (i) the President and Chief Executive Officer, (ii) the Executive Vice President, (iii) the Vice President of Administration, Treasurer and Chief Financial Officer, and/or (iv) the Vice President of Business Development (the "Executive Officers)"). In each Executive Officer's case, the annual target bonus, if paid, shall not exceed fifty percent (50%) of such Executive Officer's annual salary, as determined in accordance with Section 3.04 herein, and may only be paid to one or more Executive Officers if the Coating Company has achieved a positive net income (after all applicable taxes for the applicable fiscal year). If paid, all annual target bonuses shall be payable only out of the Coating Company's after tax net income for such fiscal year. In no event shall the aggregate of all annual target bonuses paid with respect to any fiscal year exceed twenty percent (20%) of the Coating Company's entire after tax net income for such year. The Compensation Committee of the Board shall have the sole authority to interpret and apply the provisions of the foregoing.
