Compensation Related Matters Sample Clauses
The COMPENSATION/RELATED MATTERS clause defines the terms and conditions under which payment and other financial benefits are provided to a party, typically in an employment or service agreement. It outlines specifics such as salary, bonuses, commissions, expense reimbursements, and any additional benefits or allowances that may be applicable. By clearly detailing the structure and timing of compensation, this clause ensures both parties understand their financial obligations and entitlements, thereby reducing the risk of disputes over payment and related matters.
Compensation Related Matters. (a) Employee shall receive salary for his services at the rate of $100,000 per annum, subject to increases by the Board of Directors of the Company, from time to time, payable in accordance with the Company's normal payroll procedures for executive employees.
(b) At the discretion of the Board of Directors of the company, the Employee shall be eligible to receive an annual bonus.
3.2 The Company shall reimburse the Employee for all reasonable expenses incurred by him in connection with the business of the Company, provided Employee shall submit supporting documentation for such expenses consistent with the Company's policies.
3.3 Employee shall be eligible, to the extent he qualifies, for participation in any health or other group insurance plan of the Company and shall also be entitled to participate in any employee benefit programs of the Company for its key employees or for its employees generally, including without limitation, any stock option or purchase plan and any profit-sharing or pension plan. The Company shall provide the Employee and his immediate family members with Blue Cross/Blue Shield or equivalent and major medical coverage.
3.4 Employee shall be entitled to a five (5) week paid vacation per year during the Term, to be taken at such times as are consistent with the needs of the Company and the convenience of the Employee. Such vacation period may be extended beyond five weeks if consistent with Company policy.
3.5 The Company shall provide, maintain and insure an automobile for Employee's use (the "Automobile").
(a) In the event the Employee's employment by the Company is terminated for "cause" pursuant to Section 2.1(c) hereof, or because the Employee voluntarily leaves the employ of the Company without Good Reason or on account of a "Change in Control" as set forth in Section 3.6(b) below, the Employee shall be entitled to the compensation provided for by Section 3.1 only up until the date of termination of his employment.
(b) In the event the Employee leaves the employment of the Company (A) for Good Reason, as defined below, or (B) on account of a Change in Control (as defined in Section 4 hereof), then the Employee shall be entitled to receive the compensation and benefits (but only to the extent legally allowable) provided for in Sections 3.1, 3.3 and 3.5 hereof, for the balance of the Term; provided, however, that if such termination occurs at a time when there is less than two years left in the Term, the compensation and benefits ...
Compensation Related Matters. 3.1 The Employee shall be compensated for his services hereunder as follows:
(a) Upon execution of this Employment Agreement, the Employee shall receive, under the Company's 1996 Stock Option Plan, five year options to purchase 750,000 shares of the Company's common stock, par value $.001 per share (the "Common Stock"), which options shall vest as to 150,000 upon the date of grant and as to 150,000 on each of the next four anniversary dates hereof. The option exercise price per share shall be the fair market value of the Common Stock on the date hereof. Said options shall be deemed "incentive" stock options to the maximum extent permitted by the Internal Revenue Code of 1986, as amended.
(b) A base salary at the rate of $125,000 per annum payable in accordance with the Company's normal payroll procedures for executive employees; provided, however, that on December 1 of each year during an Additional Term, commencing December 1, 1997, the base salary shall be adjusted for a cost of living increase based on the Consumer Price Index for New York City for the twelve month period immediately preceding such December 1 date. The Employee shall also be entitled to additional increases in base salary as may be determined from time to time by the Board of Directors or any compensation committee appointed by the Board of Directors.
(i) A bonus equal to a percentage of the Pre-tax Profits of the Company, for each one year period constituting the Term and each Additional Term during which Employee is employed by the Company under this Agreement, as follows: Pre-Tax Profits Bonus --------------- ----- $150,000-$500,000 6% $500,001-$1,000,000 12% $1,000,001-$6,000,000 15% over $6,000,000 18%
(ii) Such bonus shall be paid no later than four months after the end of the applicable Term or Additional Term. At the option of the Employee, and subject to compliance with relevant securities and other laws, the bonus payable in Section 3.1(c)(i) above shall be paid in restricted shares of the Common Stock, based upon the fair market value of the Common Stock on the last day of the applicable Term or Additional Term.
Compensation Related Matters
Compensation Related Matters