CASH BONUS FISCAL 2000. For the Corporation's fiscal year 2000, Employee shall receive an incentive bonus, the amount of which is the sum of the following sections (i) through (vi):
CASH BONUS FISCAL 2000. For the Corporation's fiscal 2000, Employee shall receive an incentive bonus based on the "adjusted net pre-tax income" for said fiscal year. For the purposes of this subsection, "adjusted net pre-tax income" shall mean the pre-tax income as reported to the Securities and Exchange Commission on Form 10-K excluding as expenses all dividends paid by the Corporation to the holders of any class of its preferred stock, as well as all interest paid by the Corporation in connection with any funds borrowed for the redemption of 675,000 shares of preferred stock at $2.49 per share or $1,680,750 on August 28, 1989 and any future redemptions of preferred stock, and also excluding (i) any gains or losses resulting from the sale, conversion or other disposition of capital assets; (ii) accruals made in accordance with general accepted accounting principles to recognize the costs associated with the permanent closure of an operation and the carrying costs prior to the sale of the assets of that operation; (iii) gain or loss resulting from non-operational litigation; and (iv) charges or credits resulting from the adoption of a change in accounting principle. Employee shall receive a fractional share of the adjusted net pre-tax income calculated as follows: X = (.0325 + .0195 {Y}) x Z where X equals the bonus earned, Y equals the adjusted net pre-tax income expressed in millions of dollars rounded to three decimal places, and Z equals the adjusted net pre-tax income. Example: Reported income before income tax $1,525,169 Add back: Interest on borrowing for Preferred stock redemption 201,500 Deduct: Gain on sale of building {156,000} --------- Adjusted pre-tax income $1,570,369 then: X = (.0325 + (.0195 x 1.570)) x $1,570,369 X = (.0325 + .0306) x $1,570,369 X = .0631 x $1,570,369 X = $99,090
