Common use of LONG TERM BONUS PROGRAM Clause in Contracts

LONG TERM BONUS PROGRAM. a) A Long term bonus program will be implemented upon completion of the probationary period for all Employees and will be paid out annually. b) The program is based on phantom shares determined by dividing the Employee’s base salary by the annual average share value. Each year the Employee’s phantom account is credited with the number of shares the Employee’s base salary is able to purchase. For example: c) If the Employee earned $20,000 base salary, and using a hypothetical average share value for the year of $5.25, the Employee would receive 3,809.52 phantom shares. And if the gain in share value that year was $.15, the Employee would receive $571.43. d) As the Employee’s phantom shares accumulate, it is entirely conceivable that in three years the Employee’s phantom share account could hold over 11,000 shares. The longer the Employee is with the Employer, the more attractive this plan becomes. e) The Employer may determine a cap to be placed on the number of shares all Employees can hold in a phantom account. f) Bonus plans in effect prior to the signing date of this Agreement are replaced by the foregoing. g) An Employee who leaves the employment of the Employer for any reasons will receive pro-rated bonus pay based on the Employee’s entitlement above.