Common use of Formulation Clause in Contracts

Formulation. The Annual Performance Bonus will be determined from Employer's earnings before state and federal taxes ("Before Tax Earnings"). The Board shall each year during the term of this Agreement establish a Performance Bonus Criteria (herein so called) which shall be Employer's budgeted Before Tax Earnings for that year and which shall not be less than the Performance Bonus Criteria for the immediately preceding year. (a) If Before Tax Earnings are less than 80% of Performance Bonus Criteria, Employee shall earn no Annual Performance Bonus. If Before Tax Earnings are equal to at least 80% of the Performance Bonus Criteria, Employee shall earn an 6 Annual Performance Bonus as determined under Paragraphs 5(B)(1)(b), (c) and (d) below, as applicable. (b) If Before Tax Earnings are 80%-99% of the Performance Criteria, Employee shall earn an Annual Performance Bonus in an amount ranging between 25% and 48.75 % of Employee's Base Salary, determined on a prorated basis. For example, if Before Tax Earnings are 92% of the Performance Bonus Criteria, Employee shall earn an Annual Performance Bonus equal to 40% of Employee's Base Salary. (c) If Before Tax Earnings are 100%-119% of the Performance Criteria, Employee shall earn an Annual Performance Bonus in an amount ranging between 50% and 97.5% of Employee's Base Salary, determined on a prorated basis. For example, if Before Tax Earnings are 110% of the Performance Criteria, Employee shall earn an Annual Performance Bonus equal to 75% of Employee's Base Salary. (d) If Before Tax Earnings are 120% or greater of the Performance Bonus Criteria, Employee shall earn an Annual Performance Bonus equal to 100% of Employee's Base Salary, plus an additional 2% of Employee's Base Salary for each 1% above 120% of the Performance Bonus Criteria.

Formulation. The Annual Performance Bonus will be determined from Employer's earnings before state and federal taxes ("Before Tax Earnings"). The Board shall each year during the term of this Agreement establish a Performance Bonus Criteria (herein so called) which shall be Employer's budgeted Before Tax Earnings for that year and which shall not be less than the Performance Bonus Criteria for the immediately preceding year. (a) If Before Tax Earnings are less than 80% of Performance Bonus Criteria, Employee shall earn no Annual Performance Bonus. If Before Tax Earnings are equal to at least 80% of the Performance Bonus Criteria, Employee shall earn an 6 Annual Performance Bonus as determined under Paragraphs 5(B)(1)(b), (c) and (d) below, as applicable. (b) If Before Tax Earnings are 80%-99% of the Performance Criteria, Employee shall earn an Annual Performance Bonus in an amount ranging between 25% and 48.75 % of Employee's Base Salary, determined on a prorated basis. For example, if Before Tax Earnings are 92% of the Performance Bonus Criteria, Employee shall earn an Annual Performance Bonus equal to 40% of Employee's Base Salary. (c) If Before Tax Earnings are 100%-119% of the Performance Criteria, Employee shall earn an Annual Performance Bonus in an amount ranging between 50% and 97.5% of Employee's Base Salary, determined on a prorated basis. For example, if Before Tax Earnings are 110% of the Performance Criteria, Employee shall earn an Annual Performance Bonus equal to 75% of Employee's Base Salary. (d) If Before Tax Earnings are 120% or greater of the Performance Bonus Criteria, Employee shall earn an Annual Performance Bonus equal to 100% of Employee's Base Salary, plus an additional 2% of Employee's Base Salary for each 1% above 120% of the Performance Bonus Criteria.