Exit Bonus Clause Samples
An Exit Bonus clause establishes a payment or financial reward to a party, typically an employee or executive, upon their departure from a company under certain conditions. This clause outlines the specific circumstances that trigger the bonus, such as the sale of the company, a merger, or the achievement of predefined performance milestones, and details the calculation or amount of the bonus. Its core practical function is to incentivize key individuals to remain with the company through critical transitions and to reward them for their contributions, thereby aligning their interests with the company's long-term success and stability.
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Exit Bonus. (a) Upon the occurrence of a Change of Control at any time during or after the termination of the Executive’s employment, the Company shall pay to the Executive a bonus (“Exit Bonus”) which shall be equal to the Fair Market Value (as of the date of such Change of Control) of 1.5% of all of the Company’s outstanding common stock (on a fully diluted basis) immediately preceding such Change of Control (such percentage being referred to herein as the “Base Amount”), provided the Base Amount shall be increased to 2.5% in the event that the transaction resulting in the Change of Control is based upon an aggregate Fair Market Value of all of the Company’s outstanding common stock (on a fully diluted basis) equal to or in excess of $50,000,000 and 3.0% in the event such Fair Market Value is equal to or exceeds $70,000,000; further, provided, the Exit Bonus to be paid to the Executive upon a Change of Control shall be reduced by an amount equal to (i) the Fair Market Value of all of the Company’s outstanding common stock as of the date of such Change of Control, multiplied by (ii) a fraction, the numerator of which shall be the aggregate number of Group Common Shares (as defined below) sold, transferred or otherwise disposed of by GSC Group (as defined below) prior to such Change of Control and the denominator of which shall be 107,593, multiplied by (iii) the applicable Base Amount as determined in accordance with this Section 2.3(a) as of the date of such Change of Control. Except as provided in Section 2.3(b), the Exit Bonus shall be payable in the same form of consideration and at the same time as received by the shareholders of either Group or the Company upon such Change of Control.
(b) In the event the Company or Group during the Employment Term and prior to a Change of Control, shall adopt a stock option or restricted stock purchase or similar plan, the Executive within thirty (30) days following written notice of the adoption of such a plan, shall have the right, by delivery of written notice to the Company, to participate in such plan and to receive such number of shares or options, in substitution and in place of the Exit Bonus, as would be equivalent to the Base Amount as of the date of such participation in such plan by the Executive, provided that any such plan shall require that the timing of payments under such plan shall match the timing of the Exit Bonus payments that otherwise would have occurred, or shall contain such other or additional provisi...
Exit Bonus. Executive shall receive a lump sum payment of $712,500 (“Exit Bonus”) payable as part of the first normally scheduled payroll following the six (6) month anniversary of the Separation Date.
Exit Bonus. (a) Upon the occurrence of a Change of Control at any time prior to December 31, 2010, the Company shall pay to the Executive a bonus (“Exit Bonus”) which shall be equal to the Fair Market Value (as of the date of such Change of Control) of such number of shares of common stock of the Company which, following the issuance of such shares, would equal 0.5% of all issued and outstanding shares of the Company’s common stock immediately following the Effective Date (the “Base Amount”). Except as otherwise provided herein, the Exit Bonus shall be payable in the same form of consideration as received by the shareholders of either Group or the Company upon such Change of Control. In the event the Executive’s employment is terminated (i) by the Company for Cause, (ii) by the Company for Permanent Disability, (iii) by the Executive without Good Reason or (iv) as a result of the death of the Executive, prior to December 1, 2006, the amount of the Exit Bonus shall equal 33.3% of the Base Amount. In the event of such a termination after December 1, 2006 and prior to December 1, 2007, the amount of the Exit Bonus shall equal 66.6% of the Base Amount. In the event the Executive’s employment is terminated by the Company Without Cause or the Executive terminates employment for Good Reason, the amount of the Exit Bonus shall be equal to the Base Amount.
(b) In the event a Change of Control has not occurred prior to December 31, 2010, the Company shall pay the Executive the Exit Bonus in cash on January 1, 2011.
(c) In the event the Company or Group during the Employment Term and prior to a Change of Control, shall adopt a stock option or restricted stock purchase or similar plan, the Executive within thirty (30) days following written notice of the adoption of such a plan, shall have the right, by delivery of written notice to the Company, to participate in such plan and to receive such number of shares or options, in substitution and in place of the Exit Bonus, as would be equivalent to the Base Amount.
Exit Bonus. (a) Upon the occurrence of a Change of Control at any time after the Effective Date and prior to December 31, 2010, the Company shall pay to the Executive a bonus (“Exit Bonus”) which shall be equal to the Fair Market Value (as of the date of such Change of Control) of such number of shares of common stock of the Company which, following the issuance of such shares, would equal 1.5% of all issued and outstanding shares of the Company’s common stock immediately following the Effective Date (the “Base Amount”). Except as otherwise provided herein, the Exit Bonus shall be payable in the same form of consideration as received by the shareholders of either Group or the Company upon such Change of Control. In the event the Executive’s employment is terminated pursuant to Section 4.1.1(a),(c),(d) or (e) prior to December 1, 2004, the amount of the Exit Bonus shall equal 33.3% of the Base Amount. In the event of such a termination after December 1, 2004 and prior to December 1, 2005, the amount of the Exit Bonus shall equal 66.6% of the Base Amount.
(b) In the event a Change of Control has not occurred prior to December 31, 2010, the Company shall pay the Executive the Exit Bonus in cash on January 1, 2011.
(c) In the event the Company or Group during the Employment Term and prior to a Change of Control, shall adopt a stock option or restricted stock purchase or similar plan, the Executive within thirty (30) days following written notice of the adoption of such a plan, shall have the right, by delivery of written notice to the Company, to participate in such plan and to receive such number of shares or options, in substitution and in place of the Exit Bonus, as would be equivalent to the Base Amount.
Exit Bonus. (a) Unless Employee shall have voluntarily terminated his employment for other than Good Reason within six months after the Effective Date and subject to the terms of Section 4.i., Employee will be entitled to a bonus (the "Exit Bonus") equal to the greater of (A) $1,400,000, if the Combined Two-Year EBITDA is equal to or greater than Target EBITDA, or (B) a percentage of the $1,400,000, equal to the percentage the Combined Two-Year EBITDA is of Target EBITDA (e.g., if the Combined Two-Year EBITDA amount is 65% of the Target EBITDA, then the Exit Bonus will be 65% of $1,400,000).
(b) The Exit Bonus will be paid during the 60-day period beginning 30 days after the second annual anniversary of the Effective Date once the final Combined Two-Year EBITDA is calculated.
Exit Bonus. The Company will pay the Executive a bonus calculated at three times the Base Rate in the event of each Exit occurring within one year from Financial Close; one-and-one-half times the Base Rate in the event of each Exit occurring two to three years after Financial Close; and one times the Base Rate in the event of each Exit occurring thereafter. The Exit Bonus will be payable in cash or in the Company’s Common Stock, valued and issued on the date of the closing of the Exit and prior to any public announcement of same, or any combination thereof at the sole discretion of the Executive.
Exit Bonus. Because of the potential for the non-monied spouse to contest the marital property agreement on voluntariness and un-conscionability, one might consider putting an exit bonus in the marital property agreement.
Exit Bonus