Base Salary and Annual Incentive Compensation. Subject to the conditions set forth in Sections 3, 4, 8 and 10(c) hereof, the Company shall continue to pay the Executive (subject to any applicable payroll or other taxes required to be withheld) for a period (the "Continuation Period") terminating on the earlier of (x) [twenty-four (24)/thirty-six (36)] months following the date of the Change in Control, (y) the date on which the Executive reaches normal retirement age under the Retirement Plan, or (z) such date on which any of the contingencies under Section 10(c) shall occur, as follows:
Base Salary and Annual Incentive Compensation. Subject to the conditions set forth in Sections 3, 4, 8 and 10(c) hereof, the Company shall continue to pay the Executive (subject to any applicable payroll or other taxes required to be withheld) for a period (the "Continuation Period") [commencing on the Date of Termination and] terminating on the earlier of (x) [twenty-four (24)/thirty-six (36)] months following the date of the [Change in Control/Date of Termination], (y) the date on which the Executive reaches normal retirement age under the Retirement Plan, or (z) such date on which any of the contingencies under Section 10(c) shall occur, as follows:
Base Salary and Annual Incentive Compensation. During the Term, the Executive shall: (i) receive a base salary at an annualized rate of $600,000 (such annualized amount, the “Base Salary”), payable in accordance with the Company’s regular payroll practice for its senior executives, as in effect from time to time and (ii) continue to participate in the Company’s annual management incentive plan referenced in Section 4(b) of the Employment Agreement (the “AIP”), with a target annual incentive bonus opportunity for the 2017 fiscal year equal to 100% of Base Salary. For the avoidance of doubt, all references in the Existing Agreements to the Executive’s Base Salary and annual incentive bonus award shall, effective as of the Effective Date, be deemed to refer to the Base Salary and annual incentive opportunity described in this Section 3(a) above. For the further avoidance of doubt, the Executive’s annual cash incentive bonus award under the AIP for the Company’s 2016 fiscal year shall be determined in the ordinary course, consistent with the determination and payment of such bonuses for senior executives of the Company. Any annual incentive awards payable to the Executive shall be paid at the time the Company normally pays such bonuses to its senior executives in accordance with the terms of the AIP, but in no event later than March 15 of the calendar year following the calendar year in which such cash bonuses are earned.
