Common use of Confirmation Bonus Clause in Contracts

Confirmation Bonus. In addition, the Executive shall be entitled to receive a one-time confirmation bonus (the "Confirmation Bonus"), upon (i) the entry of a confirmation order of a plan of reorganization, provided that the sole conditions to the Effective Date of the confirmed plan are tied to the performance of a person or entity other than the Company, the Executive, an employee or agent of the Company (the "Company Group"); (ii) the date such a plan of reorganization becomes effective, if the sole conditions to the Effective Date of the confirmed plan are tied to the performance by any member of the Company Group; or (iii) the date upon which the Company Group performs all the conditions to the Effective Date of the confirmed plan that are in its control, if the conditions to the Effective Date of the confirmed plan are tied both to the performance of the Company Group and to the performance of any person or entity who is not a member of the Company Group (each such date of payment under clause (i), (ii) and (iii) above shall hereinafter be referred to as a "Satisfaction Date"); provided, in each case, that the Bankruptcy Court determines that the Company has demonstrated the capacity to finance the Company's seasonal working capital requirements in the form of an asset based working capital facility that contains market advance rates and market collateral eligibility parameters; provided, further, that in order to demonstrate such capacity, the plan of reorganization need not provide for the obtaining of such facility. The amount payable as a Confirmation Bonus shall be based on when the Satisfaction Date occurs, as set forth in the Schedule attached hereto as Appendix B. The Confirmation Bonus shall be paid in a cash lump sum on the Effective Date. Notwithstanding the foregoing, no Confirmation Bonus shall be payable if the Satisfaction Date occurs after September 30, 1998.