Common use of Obligation to Pay Incentive Bonus Clause in Contracts

Obligation to Pay Incentive Bonus. Employee shall be eligible to receive as additional compensation, 30 days after the day the Board of Directors approves interim financial statements for the last-ended Fiscal Quarter, a payment equal to two and one- half percent (2.5%) of the Company's pre-tax net income for the last-ended Fiscal Quarter for each Fiscal Quarter during the term beginning after December- 31, 1997 (the "Incentive Bonus"). It is the intention of the parties that Employee's right to receive Incentive Bonus payments shall be offset by ail equal percentage of pre-tax net losses, if any, realized from time to time. In the event of a pre-tax net loss for a Fiscal Quarter, there shall be set up ail offset amount equal to two and one-half percent (2.5%) of such net loss, which amount shall be deducted from, or offset against the entirely of, the next Incentive Bonus payment to which Employee becomes eligible. Likewise, if there are consecutive loss Fiscal Quarters, the offset amounts shall accumulate and Employee shall not be entitled to receive a further Incentive Bonus payment until the entire accumulated loss amounts have been offset against amounts carried in subsequent profitable Fiscal Quarters. It is also the intention of the parties that Employee shall receive the benefit of, or suffer the detriment resulting from, any adjustment to the pre-tax net profit or loss as reported in the final audited financial statements for each Fiscal Quarter subject to the provisions of this Section 6. Any additions to, or subtraction from, any Incentive Bonus payment made on the basis of interim financial statements shall be taken into account and used to adjust, as appropriate, the next Incentive Bonus payment which Employee shall become entitled to receive. Notwithstanding any such adjustment or subsequent net loss Fiscal Quarter, in no event shall Employee be obligated to return to the Company any amount which lie shall have received in good faith pursuant to the terms of this Subsection 6.1, it being expressly understood and agreed that all such amounts may only be used to offset future I incentive Bonus payment obligations arising hereunder.

Obligation to Pay Incentive Bonus. Employee shall be eligible to receive as additional compensation, 30 days after the day the Board of Directors approves interim financial statements for the last-ended Fiscal Quarter, a payment equal to two and one- half five percent (2.55%) of the Company's pre-tax net income for the last-last- ended Fiscal Quarter for each Fiscal Quarter during the term beginning be after December- December 31, 1997 1996 (the "Incentive Bonus"). It is the intention of the parties that Employee's right to receive Incentive Bonus payments shall be offset by ail an equal percentage of pre-tax net losses, if any, realized from time to time. In the event of a pre-tax net loss for a Fiscal Quarter, there shall be set up ail an offset amount equal to two and one-half five percent (2.55%) of such net loss, which amount shall be deducted from, or offset against the entirely entirety of, the next Incentive Bonus payment to which Employee becomes eligible. Likewise, if there are consecutive loss Fiscal Quarters, the offset amounts shall accumulate and Employee shall not be entitled to receive a further Incentive Bonus payment until the entire accumulated loss amounts have been offset against amounts carried earned in subsequent profitable Fiscal Quarters. It is also the intention of the parties that Employee shall receive the benefit of, or suffer the detriment resulting from, any adjustment to the pre-tax net profit or loss as reported in the final audited financial statements for each Fiscal Quarter subject to the provisions of this Section 6. Any additions to, or subtraction from, any Incentive Bonus payment made on the basis of interim financial statements shall be taken into account and used to adjust, as appropriate, the next Incentive Bonus payment which Employee shall become entitled to receive. Notwithstanding any such adjustment or subsequent net loss Fiscal Quarter, in no event shall Employee be obligated to return to the Company any amount which lie he shall have received in good faith pursuant to the terms of this Subsection 6.16. 1, it being expressly understood and agreed that all such amounts may only be used to offset future I incentive Incentive Bonus payment obligations arising hereunder.