For purposes of complying with Section 409A, the parties hereto intend that the portion of the Annual Bonus that exceed the Minimum Annual Bonus shall constitute performance-based compensation (as described in Treas.
Formula Bonus: For each Bonus Period that begins on or after November 2000 during the Term of Employment, the Executive shall be paid an annual formula bonus (the "Formula Bonus") during the Term of Employment equal to the greater of (i) the Minimum Annual Bonus, or (ii) the bonus determined pursuant to a formula (the "Formula") established by the Board at the beginning of each Bonus Period that commences during the Term of Employment.
The Company shall pay the Executive an annual bonus (the Annual Bonus) for each calendar year ending during the Term of Employment in an amount that will be determined by the Board based on the Executives performance; provided, however, that the Annual Bonus for each such calendar year shall be no less than the Minimum Annual Bonus.
Executive shall be entitled to receive a minimum annual cash bonus payment equal to $150,000 per year with respect to each of the first two years of Executive's employment with the Company (each such payment, a "Minimum Annual Bonus Payment"), The Company shall use its reasonable efforts to pay such Minimum Annual Bonus Payment to Executive within 75 days of each of December 31, 2015 and December 31, 2016 and such payment will be paid at the same time as bonuses to other employees.
With respect to each fiscal year of the Parent ending during the Term, Employee shall be eligible to receive an annual incentive bonus (the Incentive Bonus) in an amount equal to 100% of his Base Salary, subject to the achievement of performance goals established by the Compensation Committee in its sole discretion; provided, however, that the Employee will at least receive 40% of the Incentive Bonus during each applicable fiscal year (the Minimum Annual Bonus).