Common use of Termination Bonus Clause in Contracts

Termination Bonus. If an Employee's employment terminates by reason of death, disability, retirement or termination by the Corporation other than under Section 17(b) hereof, the Corporation shall pay to such Employee in consideration of his/her prior services to the Corporation a termination bonus equal to 100% of such Employee's share of the aggregate retained earnings for all completed fiscal years of the Corporation during which such Employee was a Shareholder prior to the date of termination. If an Employee's employment terminates for any other reason, the Corporation shall pay to such Employee in consideration of his/her prior services to the Corporation a termination bonus equal to 50% of such Employee's share of the aggregate retained earnings for all completed fiscal years of the Corporation during which such Employee was a Shareholder prior to the termination date. Each Employee's share of the retained earnings of the Corporation shall be equal to the excess if any of the total of such Employee's share of the increase in retained earnings (net of taxes and dividends declared by the Board of Directors) of the Corporation for each fiscal year in which the Corporation had such an increase in retained earnings and such Employee was a Shareholder over the total of such Employee's share of any decrease in retained earnings (whether such decrease is a result of losses, taxes or dividends declared by the Board of Directors) of the Corporation for each fiscal year in which the Corporation experienced such a decrease in retained earnings and such Employee was a Shareholder. Promptly after each fiscal year of the Corporation, the Board of Directors shall determine each Employee's share of such increase or decrease in retained earnings for such fiscal year in the same manner it determines bonuses for Employees who are Shareholders. The Board of Directors shall report the determination thereof and the cumulative effect of such determination on all prior determinations to the Employee no later than three months following the end of each fiscal year. In the event the Corporation's increase or decrease in retained earnings for any fiscal year is adjusted after the Board of Director's initial determination of any Employee's share and before payment thereof, the Board of Directors may redetermine such Employee's share of the increase or decrease in retained earnings for the fiscal year of the adjustment in a reasonable manner to take into account such adjustment. The Board of Directors shall maintain a record of the allocations under this paragraph for purposes of determining each Employee's right to a termination bonus. The termination bonus shall be paid in cash or such other manner as mutually agreed upon between the Corporation and the Employee. The payment shall be made during the year of termination provided that the total payments required to be made in respect of the termination of all Employees who are Shareholders during any fiscal year shall not exceed in the aggregate an amount equal to 10% of the Corporation's income before tax for the fiscal year immediately preceding that in which the payments are required to be made plus 10% of all compensation paid to all Employees who are Shareholders by the Corporation during the fiscal year immediately preceding that in which the payments are required to be made. If, as a result of the foregoing limitation, payments cannot be made in full as provided, then all payments required shall be reduced proportionately and the term during which such payments are to be made shall be thereby extended until such time as the total amount owing has been paid.

Termination Bonus. If an Employee's employment terminates by reason of death, disability, retirement or termination by the Corporation other than under Section 17(b) hereof, the Corporation shall pay to such Employee in consideration of his/her his prior services to the Corporation a termination bonus equal to 100% of such Employee's share of the aggregate retained earnings for all completed fiscal years of the Corporation during which such Employee was a Shareholder prior to the date of termination. If an Employee's employment terminates for any other reason, the Corporation shall pay to such Employee in consideration of his/her his prior services to the Corporation a termination bonus equal to 50% of such Employee's share of the aggregate retained earnings for all completed fiscal years of the Corporation during which such Employee was a Shareholder prior to the termination date. Each Employee's share of the retained earnings of the Corporation shall be equal to the excess if any of the total of such Employee's share of the increase in retained earnings (net of taxes and dividends declared by the Board of Directors) of the Corporation for each fiscal year in which the Corporation had such an increase in retained earnings and such Employee was a Shareholder over the total of such Employee's share of any decrease in retained earnings (whether such decrease is a result of losses, taxes or dividends declared by the Board of Directors) of the Corporation for each fiscal year in which the Corporation experienced such a decrease in retained earnings and such Employee was a Shareholder. Promptly after each fiscal year of the Corporation, the Board of Directors shall determine each Employee's share of such increase or decrease in retained earnings for such fiscal year in the same manner it determines bonuses for Employees who are Shareholders. The Board of Directors shall report the determination thereof and the cumulative effect of such determination on all prior determinations to the Employee no later than three months following the end of each fiscal year. In the event the Corporation's increase or decrease in retained earnings for any fiscal year is adjusted after the Board of Director's initial determination of any Employee's share and before payment thereof, the Board of Directors may redetermine re-determine such Employee's share of the increase or decrease in retained earnings for the fiscal year of the adjustment in a reasonable manner to take into account such adjustment. The Board of Directors shall maintain a record of the allocations under this paragraph for purposes of determining each Employee's right to a termination bonus. The termination bonus shall be paid in cash or such other manner as mutually agreed upon between the Corporation and the Employee. The payment shall be made during the year of termination provided that the total payments required to be made in respect of the termination of all Employees who are Shareholders during any fiscal year shall not exceed in the aggregate an amount equal to 10% of the Corporation's income before tax for the fiscal year immediately preceding that in which the payments are required to be made plus 10% of all compensation paid to all Employees who are Shareholders by the Corporation during the fiscal year immediately preceding that in which the payments are required to be made. If, as a result of the foregoing limitation, payments cannot be made in full as provided, then all payments required shall be reduced proportionately and the term during which such payments are to be made shall be thereby extended until such time as the total amount owing has been paid.

Termination Bonus. If an Employee's employment terminates by reason of death, disability, retirement or termination by the Corporation other than under Section 17(b) hereof, the Corporation shall pay to such Employee in consideration of his/her his prior services to the Corporation a termination bonus equal to 100% of such Employee's share of the aggregate retained earnings for all completed fiscal years of the Corporation during which such Employee was a Shareholder prior to the date of termination. If an Employee's employment terminates for any other reason, the Corporation shall pay to such Employee in consideration of his/her his prior services to the Corporation a termination bonus equal to 50% of such Employee's share of the aggregate retained earnings for all completed fiscal years of the Corporation during which such Employee was a Shareholder prior to the termination date. Each Employee's share of the retained earnings of the Corporation shall be equal to the excess if any of the total of such Employee's share of the increase in retained earnings (net of taxes and dividends declared by the Board of Directors) of the Corporation for each fiscal year in which the Corporation had such an increase in retained earnings and such Employee was a Shareholder over the total of such Employee's share of any decrease in retained earnings (whether such decrease is a result of losses, taxes or dividends declared by the Board of Directors) of the Corporation for each fiscal year in which the Corporation experienced such a decrease in retained earnings and such Employee was a Shareholder. Promptly after each fiscal year of the Corporation, the Board of Directors shall determine each Employee's share of such increase or decrease in retained earnings for such fiscal year in the same manner it determines bonuses for Employees who are Shareholders. The Board of Directors shall report the determination thereof and the cumulative effect of such determination on all prior determinations to the Employee no later than three months following the end of each fiscal year. In the event the Corporation's increase or decrease in retained earnings for any fiscal year is adjusted after the Board of Director's initial determination of any Employee's share and before payment thereof, the Board of Directors may redetermine such Employee's share of the increase or decrease in retained earnings for the fiscal year of the adjustment in a reasonable manner to take into account such adjustment. The Board of Directors shall maintain a record of the allocations under this paragraph for purposes of determining each Employee's right to a termination bonus. The termination bonus shall be paid in cash or such other manner as mutually agreed upon between the Corporation and the Employee. The payment shall be made during the year of termination provided that the total payments required to be made in respect of the termination of all Employees who are Shareholders during any fiscal year shall not exceed in the aggregate an amount equal to 10% of the Corporation's income before tax for the fiscal year immediately preceding that in which the payments are required to be made plus 10% of all compensation paid to all Employees who are Shareholders by the Corporation during the fiscal year immediately preceding that in which the payments are required to be made. If, as a result of the foregoing limitation, payments cannot be made in full as provided, then all payments required shall be reduced proportionately and the term during which such payments are to be made shall be thereby extended until such time as the total amount owing has been paid.