Common use of Formula Bonus Clause in Contracts

Formula Bonus. Employee shall be entitled to receive a formula bonus with respect to each fiscal year of the Term in an amount equal to the lesser of (A) Fifty Thousand Dollars ($50,000), pro-rated for any partial fiscal year, or (B) the maximum amount that the Company could pay to Employee during the applicable fiscal year without causing the Company to have negative, or increased negative, earnings before interest, taxes, depreciation and amortization in such fiscal year. The foregoing bonuses, if any, are intended to reward contribution to the Company's performance through the end of the applicable fiscal year, and consequently shall be paid only if Employee is employed and in good standing on the last day of the applicable fiscal year. Notwithstanding the foregoing, the foregoing shall not affect Employee's right to receive bonuses otherwise payable with respect to the period beginning January 1, 2006 and ending August 15, 2006, so long as Employee is employed and in good standing on August 15, 2006.