Common use of Performance Compensation Clause in Contracts

Performance Compensation. Executive will receive ten percent (10%) of the Company's annual profits, payable within four (4) months of the end of each of the Company's fiscal years ending within the term of this Agreement. For the purposes of this Agreement "Profits" shall be an amount equal to the Company's net income before income taxes for the employment year in question, determined in accordance with generally accepted accounting principles plus any amounts deducted by the Company during the relevant year for depreciation of property and equipment or interest expense, less any nonrecurring or infrequent items (e.g. sale of property or equipment) which increased net income before income taxes, plus any nonrecurring or infrequent items which increased net income before income taxes.