Value Creation Bonus Clause Samples

A value-creation-bonus clause establishes a financial incentive for a party, typically management or key employees, based on the achievement of specific value-enhancing milestones or targets. This clause outlines the criteria for measuring value creation, such as increased company valuation, revenue growth, or successful completion of a merger or acquisition, and details the calculation and timing of bonus payments. Its core function is to align the interests of stakeholders by motivating performance that directly contributes to the overall growth and success of the business.
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Value Creation Bonus. On a date to be determined by Elastic during the period beginning on January 1, 2000 and ending on January 31, 2000, Elastic shall pay those END Employees listed on Exhibit E a bonus equal to the first payout that such employee receives under the Bonus Plan, if such employee becomes an Elastic Employee and is employed by Elastic on the date such bonus is paid. The amount of all such bonuses shall be determined by NNI, and NNI shall reimburse Elastic for all such bonuses paid by Elastic to Elastic Employees.
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Value Creation Bonus. Within five days following the Agreement Date, the Company will pay the Executive, as a bonus for his contributions prior to the Agreement Date and creation of Company value, a cash bonus in the amount of $750,000.
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Value Creation Bonus. The Executive shall be eligible to receive a cash bonus in an amount equal to $2,600,000 (the “Value Creation Bonus”), contingent upon the achievement of the target integration objectives described in Exhibit A to this Agreement (the “Integration Goals”). The achievement of the Integration Goals shall be determined by the Compensation Committee, in good faith. At such time as the Executive has determined that the Integration Goals have been achieved, he shall provide written notice of such achievement to the CEO and the Compensation Committee, together with internal tracking and reporting data measured by the Executive Integration Committee that support such achievement (the “Executive VCB Notice”). If the Compensation Committee determines that the Integration Goals have been achieved, the Compensation Committee shall provide written certification of the achievement of the Integration Goals within fifteen (15) business days after receipt of the Executive VCB Notice. If the Compensation Committee determines that the Integration Goals have not been achieved, the Compensation Committee will provide written notice to the Executive within fifteen (15) business days of receipt of the Executive VCB Notice of its determination and an explanation and reasonable support for the Compensation Committee’s position. If the Compensation Committee determines that the Integration Goals have not been achieved, then the Compensation Committee and the Executive shall work in good faith over the thirty (30) day period following the Compensation Committee’s written certification that the Integration Goals have not been achieved to resolve the discrepancies in their conclusions, and the Executive shall not seek to enforce his right to the Value Creation Bonus under Section 8.7(b) until after the expiration of such thirty (30) day period. The Value Creation Bonus shall be paid in a single cash lump sum within thirty (30) days following the date of the Compensation Committee’s written certification that the Integration Goals have been achieved (the “VCB Effective Date”). Subject to the provisions of Section 5 hereof, the Bonus shall be payable only if the Executive is employed by the Company on the VCB Effective Date.
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Related to Value Creation Bonus

  • Retention Bonus (a) Subject to Sections 2(b), 2(c) and 2(d) below and your continued employment through the Determination Date (as defined below), you will be eligible to receive a Retention Bonus equal to the annual bonus you would have been eligible to receive under the Company’s Annual Incentive Plan based on the Company’s actual performance for 2023, as determined by the Compensation Committee of the Board of Directors (the “Committee”) following the completion of 2023, had you been a participant in the Annual Incentive Plan with a target bonus opportunity of up to 40% of your base salary (such amount as determined by the Committee, the “Retention Bonus”), which determination shall occur between January 1, 2024 and March 15, 2024 (the date of such determination, the “Determination Date”). The Retention Bonus, if any, will be paid in cash in a lump sum between January 1, 2025 and March 15, 2025. You will continue to be considered an employee of the Company for purposes of this letter agreement if you are on a Company- approved leave of absence. (b) In the event of a Change in Control during 2024, subject to your continued employment through the earlier of: (1) the Determination Date; or (2) the date of the Change in Control, you will be eligible to receive your Retention Bonus in cash in a lump sum within 10 days following the date of the Change in Control. (c) In the event of your Involuntary Termination (as defined in the Employment Agreement) on or after the Determination Date but on or prior to the date you have received the Retention Bonus, you will be eligible to receive your Retention Bonus in cash in a lump sum within 10 days following the effective date of your Release (as defined below). As a condition to your receipt of the Retention Bonus pursuant to this Section 2(c), you shall execute and not revoke a general release of all claims in favor of the Company and its affiliates (the “Release”) in the form attached to the Employment Agreement as Exhibit A. In the event the Release does not become effective within the 55-day period following the date of your Involuntary Termination, you shall not be entitled to the Retention Bonus. (d) If your employment terminates prior to the Determination Date for any reason, then this letter agreement will terminate, and you will forfeit any right you may have to receive the Retention Bonus.

  • Transaction Bonus In addition, in the event of a transaction involving a Change in Control, in a transaction approved by the Company’s Board of Directors, which transaction results in the receipt by the Company’s stockholders of consideration with a value representing, in the sole judgment of the Board of Directors, a significant premium over the average of the closing prices per share of the Company’s common stock as quoted on the Nasdaq National Market for 20 trading days ending one day prior to the public announcement of such transaction (a “Change in Control Transaction”), Executive shall be paid a Transaction Bonus at the closing of such a transaction in the amount equal to one (1) times 50% of Executive’s Base Salary in effect immediately preceding the closing of such a transaction. Executive shall also be paid said Transaction Bonus if the Company enters into a transaction approved by the Board of Directors which is not a Change in Control Transaction, but which, nonetheless, involves a significant change in the ownership of the Company or the composition of the Board of Directors of the Company, and which results in significant additional value for the Company’s stockholders, as determined by the Board of Directors in its sole discretion and as specifically designated a significant event by the Board of Directors (a “Significant Event”). In the event Executive receives a Transaction Bonus, no Achievement Bonus will be paid to Executive in the year in which such Transaction Bonus is paid. If the Company enters into a transaction which is a Change in Control Transaction, then all of the Executive’s stock options received before the date of the transaction shall become exercisable in full and all of the shares of the common stock of the Company awarded to Executive under the Company’s 1997 Stock Incentive Plan (or any subsequent plan) shall become fully vested. If the Company enters into a transaction which is not a Change in Control Transaction but which is a Significant Event, then the Board of Directors may, in its sole discretion, determine that all, or a portion, of the Executive’s stock options received before the effective date of the transaction shall become exercisable in full and all, or a portion, of the shares of the common stock of the Company awarded to Executive under the Company’s 1997 Stock Incentive Plan (or any subsequent plan) shall become fully vested.

  • Incentive Bonus During the Term, Employee shall be eligible to receive an incentive bonus up to the amount, based upon the criteria, and payable in such amount, at such times as are specified in Exhibit A attached hereto. The manner of payment, and form of consideration, if any, shall be determined by the Compensation Committee of the Board, in its sole and absolute discretion, and such determination shall be binding and final. To the extent that such bonus is to be determined in light of financial performance during a specified fiscal period and this Agreement commences on a date after the start of such fiscal period, any bonus payable in respect of such fiscal period's results may be prorated. In addition, if the period of Employee's employment hereunder expires before the end of a fiscal period, and if Employee is eligible to receive a bonus at such time (such eligibility being subject to the restrictions set forth in Section 6 below), any bonus payable in respect of such fiscal period's results may be prorated.

  • Performance Bonus The Executive shall be eligible to receive an annual performance bonus, payable within sixty (60) days after the end of the fiscal year of the Employer, in an amount not to exceed twenty-five percent (25%) of the Executive's Base Salary for the applicable year. The amount, if any, shall be determined by the Board, or the appropriate committee thereof, and shall generally be based on a combination of organization-wide and individual performance criteria.

  • Vacation Bonus Employees shall receive one day's base pay (or adjusted earnings) for each year of service beyond twenty-five (25) years, to a maximum of ten (10) days’ pay.