Profit Sharing Compensation Clause Samples
The Profit Sharing Compensation clause defines how profits generated from a business activity or partnership will be distributed among the involved parties. Typically, this clause outlines the specific percentage or formula used to allocate profits, the timing of distributions, and any conditions that must be met before sharing occurs. Its core practical function is to ensure transparency and fairness in the division of earnings, thereby preventing disputes and aligning the interests of all parties involved.
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Profit Sharing Compensation. Paragraph 3(d) is deleted and the following language is substituted: “In addition to the MIP and the Holiday Plan, you shall be eligible to receive additional performance-based cash compensation on an annual basis based on a share of the earnings generated by the Company’s Blizzard Entertainment business. Your profit sharing compensation (a “Profit Share Bonus”) will be based on a share of the “Profit Sharing Pool” that is created pursuant to the Blizzard Entertainment Profit Sharing Plan as in effect from time to time (the “Profit Sharing Plan”); provided, however, that all references under the Profit Sharing Plan to “Vivendi Games” or “Vivendi Universal Games” shall be replaced with “the Company”. Your Profit Share Bonus shall entitle you to six percent (6%) of the Profit Sharing Pool (if any) that is generated under the Profit Sharing Plan; provided, however, that the Committee may, in its sole discretion and at any time, exercise negative discretion with respect to your Profit Share Bonus to reduce the amount of your actual annual percentage interest in the Profit Sharing Pool to not less than three and one-half percent (3.5%). You understand that, except for your guaranteed minimum 3.5% participation in the Profit Sharing Pool under the Profit Sharing Plan, your actual bonus amount under the Profit Sharing Plan is dependent upon the amount of such Profit Sharing Pool being established thereunder, if any. If no amounts are generated under the Profit Sharing Pool with respect to any performance year (i.e., due to lack of earnings for the Blizzard Entertainment business as determined under the Profit Sharing Plan) you shall not be entitled to receive any Profit Share Bonus for such year. To the extent that any portion of your Profit Share Bonus is equal to or less than the limit on the amount of “Senior Executive Plan Bonuses” which may be paid to you pursuant to the Company’s 2008 Incentive Plan (or any successor plan thereto that is approved by the Company’s shareholders) (the “Incentive Plan”) for that year, that portion is intended to constitute a “Senior Executive Plan Bonus” within the meaning of the Incentive Plan and will be subject to the terms and conditions set forth under the Incentive Plan (and any amount of such Profit Share Bonus that exceeds that limit is not intended to constitute a “Senior Executive Plan Bonus”). Notwithstanding the timing of payments under the Profit Sharing Plan for other participants thereunder, your Profit Share Bon...
Profit Sharing Compensation. In addition to the MIP and the Holiday Plan, you shall continue to participate in the Blizzard Entertainment Profit Sharing Plan as in effect from time to time (the “Profit Sharing Plan”) in conformity with the applicable terms and provisions of the Profit Sharing Plan; provided that in all events you shall remain entitled to receive not less than three and one-half percent (3.5%) of the “Profit Sharing Pool” (as currently defined and determined within the Profit Sharing Plan). Any bonus earned under the Profit Sharing Plan (a “Profit Share Bonus”) shall be determined by the Chief Executive Officer of the Company in accordance with the terms and conditions of the Profit Sharing Plan; provided that all references therein to “Vivendi Games” or “Vivendi Universal Games” shall be replaced with the Company. You understand that except for your guaranteed percentage participation of the Profit Sharing Pool under the Profit Sharing Plan, your actual bonus amount under the Profit Sharing Plan is dependent upon the amount of such Profit Sharing Pool being established thereunder, if any.
Profit Sharing Compensation. The Borrowers will not pay any profit sharing bonus to any employee (except commission sales persons) and shall not, except with the prior written consent of the Lender, increase the compensation of the Chief Executive Officer, any director, or beneficial owner (directly or indirectly) of the Borrowers' capital stock, or of the spouse or any other member of the family of the Chief Executive Officer, any director or owner over the rate prevailing on the date of the execution of this Agreement or as otherwise provided herein. As used herein, the term "compensation" shall include all salaries, bonuses, stock options, directors' fees, commissions, retainer, regular drawing accounts and other personal services. Nothing contained in this provision shall be deemed to prohibit the Borrowers from filling any vacancy in any office or position through promotion, new employment, or otherwise at the rate of compensation for such officer or position in effect at the date of the Closing of this Agreement.
Profit Sharing Compensation. Paragraph 3(d) of the Employment Agreement is hereby amended to read as follows: