EBITDA Bonuses Clause Samples
The EBITDA Bonuses clause establishes a system for awarding bonuses to employees or executives based on the company's earnings before interest, taxes, depreciation, and amortization (EBITDA). Typically, this clause outlines specific EBITDA targets or thresholds that must be met within a defined period, and details how bonus amounts are calculated in relation to those targets. By directly linking compensation to EBITDA performance, the clause incentivizes management to focus on profitability and operational efficiency, aligning their interests with those of the company and its stakeholders.
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EBITDA Bonuses. (i) The heading for Section 4.e., which currently reads “EBITDA Based Bonus,” is hereby amended and restated to read “EBITDA Based Bonuses.”
(ii) The remainder of Section 4.e. shall constitute a new Section 4.e.i. and shall be preceded with the following new heading: “Alta EBITDA Based Bonus.”
(iii) All references to “EBITDA Bonus” in such new Section 4.e.i. are hereby amended and restated to refer to “Alta EBITDA Bonus.”
(iv) A new Section 4.e.ii. is hereby added to the Employment Agreement, which shall read, in its entirety, as follows:
EBITDA Bonuses. Commencing for the fiscal quarter ending December 31, 2016, and each fiscal quarter thereafter during the term of this Agreement, Executive shall receive a bonus payment (the “Quarterly EBITDA Bonus”) if the Company’s EBITDA for the fiscal quarter meets or exceeds the target amount (the “Quarterly EBITDA Target Amount”) as follows: Quarterly EBITDA Target Amount Quarterly EBITDA Bonus $ 100,000.00 $ 2,000.00 $ 250,000.00 $ 3,000.00 The Company shall calculate and pay the Quarterly EBITDA Bonus within forty-five (45) days after the end of each fiscal quarter.
EBITDA Bonuses. In addition to the Base Salary set forth above, the Employee shall have the right to receive additional cash bonuses as follows: