Common use of Discretionary and Performance Incentive Bonuses Clause in Contracts

Discretionary and Performance Incentive Bonuses. During the term of this Agreement, Employee shall be entitled to participate in an equitable manner with all other executive employees of the Company in such discretionary bonuses as may be authorized, declared and paid by the Compensation Committee to its executive employees. The Company will adopt an incentive bonus plan providing for the payment of annual performance incentive bonuses to Employee and other executive officers based upon the increase in the Company's operating profit or other appropriate performance objectives. The incentive bonus arrangement will provide Employee with an opportunity to earn additional incentive compensation in an amount up to THREE PERCENT (3%) of the annual increase in the Company's net income before taxes as reported in the Company's audited annual financial statement (for fiscal year 1999, net income shall be determined on a pro forma basis). No other compensation provided for in this Agreement shall be deemed a substitute for Employee's right to participate in such bonuses.