Common use of Bonus Pool Clause in Contracts

Bonus Pool. Executive shall participate in the bonus pool (the “Bonus Pool”) created with respect to each accident underwriting year, consisting of that portion of the underwriting profit for such year designated by the Board, and the Board shall establish performance criteria upon which Executive’s bonus shall be determined. During Executive’s employment under this Agreement, Executive shall be eligible to receive a target bonus of 100% of Base Salary, although it is agreed that actual bonus awards may exceed, match or be less than the target bonus, as Executive’s performance or Employer’s performance warrant. The form of payment and other terms and conditions of such bonus shall be determined by Employer, upon advice and consent of the Compensation Committee. Notwithstanding the foregoing, to the extent Executive is a “covered employee” within the meaning of Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), the annual bonus may be implemented and administered in a manner intended to insure the treatment of such bonus as “performance-based compensation” within the meaning of Section 162(m) of the Code (including, without limitation, by having the relevant performance goals established by the Compensation Committee and having the Compensation Committee certify the achievement of such goals before the annual bonus is paid). Bonuses will be paid on or about March 15 of the year following the related accident underwriting year (and in no event later than April 15 of the year following the related accident underwriting year).