Common use of Annual Compensation Clause in Contracts

Annual Compensation. For purposes of this Section 4, the term "Annual Compensation" means an amount equal to the Executive's annual base salary at the rate in effect on the date on which the Executive received or gave written notice of his termination, plus the sum of (i) an amount equal to the average of the Executive's two most recent annual bonuses, if any, received under the Company's Incentive Compensation Plan prior to the notice of termination, (ii) the Executive's annual car allowance, if any, and (iii) an amount determined by the Company from time to time in its sole discretion to be equal to the average annual cost for Company employees of obtaining medical, dental and vision insurance under COBRA, which amount is hereby initially determined to be $5,000 for 1997. In the event that the Executive's bonus for one of the two calendar years preceding the calendar year in which the Executive receives or gives written notice of termination was a prorated bonus due to Executive having worked a partial year, solely for purposes of calculating Annual Compensation, the Executive's prorated bonus will be recalculated to reflect the bonus the Executive would have received had the Executive worked for the entire year.

Annual Compensation. For purposes of this Section 4, the term "Annual Compensation" means an amount equal to the Executive's annual base salary at the rate in effect on the date on which the Executive received or gave written notice of his her termination, plus the sum of (i) an amount equal to the average of the Executive's two most recent annual bonuses, if any, received under the Company's Incentive Compensation Plan prior to the notice of termination, (ii) the Executive's annual car allowance, if any, and (iii) an amount determined by the Company from time to time in its sole discretion to be equal to the average annual cost for Company employees of obtaining medical, dental and vision insurance under COBRA, which amount is hereby initially determined to be $5,000 for 1997. In the event that the Executive's bonus for one of the two calendar years preceding the calendar year in which the Executive receives or gives written notice of termination was a prorated bonus due to Executive having worked a partial year, solely for purposes of calculating Annual Compensation, the Executive's prorated bonus will be recalculated to reflect the bonus the Executive would have received had the Executive worked for the entire year.