Interim Bonuses. All Bonuses after the First Bonus but before --------------- the "Final Bonus," as such term is defined below (the "Interim Bonuses"), shall be determined using the same formula for the determination of the First Bonus, provided, however, that on each occasion "D" shall equal $30,000 minus the aggregate values of "D" in the determination of the First Bonus and all Interim Bonuses, if any.
Interim Bonuses. For achieving an increase of 25% in net sales for the three months ending December 31, 2000 over the three-month period ending September 30, 2000, the Company shall award B.R. options to purchase 100,000 shares of common stock of the Company at an exercise price of $0.25 per share, such options to be exercised on or before December 31, 2003. For achieving an increase of 50% in net sales for the three months ending March 31, 2001 over the three-month period ending September 30, 2000, the Company shall award B.R. options to purchase 100,000 shares of common stock of the Company at an exercise price of $0.25 per share, such options to be exercised on or before March 31, 2004. REVENUE-BASED AWARDS: --------------------- Upon achieving the following net sales levels of the Company for the periods indicated below, the Company shall award B.R. options to purchase shares of common stock of the Company at an exercise price of $0.25 per share as set forth below, such options to be exercised on or before the indicated expiration date: CUMULATIVE NET NUMBER OF EXPIRATION PERIOD SALES DURING PERIOD OPTIONS DATE ------ ------------------- ------- ---- Quarter ending 6/30/2001 $1,875,000 150,000 3/31/2005 Six months ending 9/30/2001 $4,500,000 300,000* 3/31/2005 Nine months ending 12/31/2001 $9,000,000 450,000* 3/31/2005 Twelve months ending 3/31/2002 $15,000,000 600,000* 3/31/2005 Contract year beginning 4/1/2002 and ending 3/31/2003 $30,000,000 300,000 3/31/2006 Contract year beginning 4/1/2003 and ending 3/31/2004 $40,000,000 300,000 3/31/2007 Contract year beginning 4/1/2004 and ending 3/31/2005 $60,000,000 300,000 3/31/2008 Contract year beginning 4/1/2005 and ending 3/31/2006 $80,000,000 300,000 3/31/2009 ------ *Less the number of options awarded in one or more prior quarters in the contract year beginning April 1, 2001. In the event that the net sales of the Company for any of the applicable contract years exceeds the foregoing threshold net sales amounts, the amount of such excess shall be carried forward and credited to the net sales of the subsequent contract year for the purposes of determining whether the threshold net sales for the subsequent contract year have been achieved.
