Performance bonus clause samples

(a)Quarterly Performance Bonus. Subject to the provisions of this Plan, each Participant shall be eligible to earn a Quarterly Performance Bonus as of the end of each Quarter. Subject to the provisions of this Section 6, the actual amount payable with respect to a given Quarter (the “Quarterly Performance Bonus”) is equal to the Quarterly Performance Bonus Amount as calculated pursuant to the chart below and adjusted, upwards or downwards, by the amount of a True-Up or True-Down, as defined and described below.

3.Quarterly Performance Bonus.Your Quarterly Target Bonus amount in respect of each Quarter is $___________.

(a)The First Performance Bonus.If Employee remains in the continuous employ of the Company or an Affiliate through December 31, 2018 (the “First Vesting Date”), the Employee will earn and the Company will pay to Employee $1,610,000 (the “First Performance Bonus Award”) multiplied by the Performance Bonus Funding Percentage (as defined in Section 1(c)) based on the fiscal year beginning on January 1, 2018 and ending on December 31, 2018 (the “First Performance Bonus”).Payment of any earned First Performance Bonus shall be made in accordance with the Company’s normal payroll practices and procedures on or before April 1, 2019, but in no event later than December 31, 2019, subject to the provisions below.

3.1Eligibility for Corporate Performance Bonus. For the calendar year, the Corporate Performance Bonus will be determined pursuant to this section for each eligible Employee. For the calendar year, the performance bonus for each eligible Employee who is not assigned to the corporate office or at a non‑site location will have certain regional performance factors weighted into the Corporate Performance Bonus as stated in Appendix B.Each operating site shall develop its own critical performance indicators for this purpose.

3.6Determination of the Corporate Performance Bonus.The Corporate Performance Bonus for each eligible Employee is the product of the Aggregate Payout Percentage, times the Employee’s Target Performance Level, times the Employee’s Bonus Eligible Earnings.

3.7Terminated Eligible Employees. Terminated Eligible Employees shall be eligible to receive a Corporate Performance Bonus.This bonus will be calculated according to Section III of this program, and pro-rated for the portion of the calendar year that Employee maintained employment with a Participating Employer.

Performance Bonus. You shall be entitled to a performance bonus of up to $275,000.00 (the “Performance Bonus”), payable according to the terms outlined below, subject to your continued employment through March 31, 2019 (the “Vesting Date”) subject to certain exceptions as provided in Sections 2 and 4 of this Agreement.

2. Special Performance Bonus. Subject to Section4, if the Company’s EBITDA (as determined by the Board in good faith) exceeds $500million for any two consecutive fiscal years that commence on or after January 2019, the Employee shall be paid a cash bonus of $2million (the “Special Performance Bonus”), subject to the Employee’s continued employment through the last day of the second such fiscal year. Such bonus shall be payable at the same time as the annual bonuses for such second fiscal year, and in all events in the calendar year in which such fiscal year ends. For the avoidance of doubt, (i)only one Special Performance Bonus may be paid hereunder, (ii)if the Additional RSUs described in Section4 are granted, no Special Performance Bonus shall be paid hereunder, and (iii)if the Additional RSUs are not granted pursuant to Section4 (i.e., because a Qualified Public Offering does not occur by 30 days following the last day of the Company’s 2020 fiscal year), this Section2 shall continue in effect.

3.5 Annual Performance Bonus. Executive will be eligible for a bonus payment for each fiscal year of the Company (the “Annual Performance Bonus”), with a target bonus of one hundred twenty-five percent (125%) of Executive’s annualized Base Salary for the applicable fiscal year, based on the achievement of specific performance criteria established by the Board in consultation with Executive. The annual bonus earned by Executive shall be paid to Executive in no event later than the later of (i)the 15th day of the third month following the end of the Executive’s taxable year in which such annual bonus is earned or (ii)the 15th day of the third month following the end of the Company’s taxable year in which such bonus is earned. Executive must be actively employed at Petco at the time the bonus is paid in order to be eligible to receive the payment, except as provided in Sections 4.1(b) or 4.1(c).

2.2Performance Bonus. Executive will be eligible to earn a performance bonus of up to 50% of Executive’s Base Salary (the “Performance Bonus”) based upon such corporate objectives and personal performance criteria as are established by the Compensation Committee of the Board of Directors (the “Committee”). The achievement of and amount of the Performance Bonus as measured by the foregoing criteria shall be determined by the Committee in its sole and absolute discretion.Executive must remain an active employee through the end of any given Performance Bonus determination period.No Performance Bonus will be paid later than March 15 of the year following the year in which the Performance Bonus was earned.

2.2Performance Bonus.For each full calendar year during the Executive’s employment, Executive will be eligible to earn a performance bonus of up to 50% of the Executive’s Base Salary (the “Performance Bonus”) based upon the following criteria: (i) attainment of corporate objective(s) according to the milestones as determined by the Compensation Committee of the Board of Directors (the “Committee”) and communicated to the Executive in writing; and (ii) attainment of personal performance objectives according to the milestones as determined by the Chief Executive Officer in consultation with the Committee and communicated to the Executive in writing. The achievement of and amount of the Performance Bonus as measured by the foregoing criterion shall be determined by the Committee in its sole and absolute discretion.For the 2018 partial year period, the Performance Bonus as will be paid on a pro-rata basis to the extent that it is determined by the Committee to have been earned based on the criteria as previously established by the Committee.Any subsequent year Performance Bonus criteria will be determined by the Committee and shall supersede any prior criteria.Executive must remain an active employee through and including the end of any given Performance Bonus determination period and any such bonus will be paid on or before February 15 of the year following the year in which the Executive’s right to such amount became vested.Executive will not be eligible for, and will not earn, any Performance Bonus (including any prorated amounts) if Executive’s employment terminates for any reason before the end of the calendar year, except as expressly contemplated in in this Agreement.

2.2Performance Bonus.Due to the particular duties of Executive at the Company, Executive shall be eligible to receive a performance bonus of up to 57% of Employee’s Base Salary (the “Performance Bonus”) based upon the following criterion:(i) attainment of the corporate objective(s) and milestone(s) as established by the Board or the Compensation Committee of the Board (the “Committee”) and communicated to Executive in writing; and (ii) attainment of personal performance objective(s) and milestone(s) as determined by the Chief Executive Officer in consultation with the Board or the Committee and communicated to Executive in writing.The achievement of and amount of the Performance Bonus shall be determined by the Board or the Committee in its sole and absolute discretion.Any subsequent year Performance Bonus criteria will be determined by the Board or the Committee and shall be communicated to Executive in writing and shall supersede any prior criteria.Executive must remain an active employee through the end of any given Performance Bonus determination period, and any such bonus will be paid on or before February 15 of the year following the year in which the Executive’s right to such amount became vested.The Board or the Committee may grant the pro rata payment of the Performance Bonus under certain circumstances in its sole and absolute discretion.Executive will not be eligible for, and will not earn, any Performance Bonus (including any prorated amounts) if Executive’s employment terminates for any reason before the end of the calendar year, except as expressly contemplated by this Agreement.

(b)Annual Performance Bonus.For each calendar year during the Term, the Executive shall be eligible to earn a cash performance bonus (each, an “Annual Performance Bonus”) as determined by the Board or the Compensation Committee.The Board or Compensation Committee’s determination of the Executive’s eligibility for an Annual Performance Bonus shall be discretionary after considering the Executive’s achievement of enumerated performance milestones which shall be determined by the Board or the Compensation Committee at the beginning of each calendar year. The Executive’s target Annual Performance Bonus for calendar year 2019 and each calendar year thereafter shall be 55% of his Base Salary.Except as otherwise provided herein, to earn an Annual Performance Bonus for any particular calendar year during the Term, the Executive must be employed by the Company on the day such Annual Performance Bonus is paid, which shall be no later than February 15th of the calendar year immediately following the calendar year to which it pertains.

For senior executive levels a part of the compensation is in the form of stock incentives and the other part is in cash, in the form of fixed pay & performance bonus. The stock incentives and performance bonus together constitute about 60 to 75% of executive’s compensation.

(b) Annual Performance Bonus. Executive shall be eligible to receive an annual cash bonus (the “Annual Performance Bonus”), with the target amount of such Annual Performance Bonus equal to fifty percent (50%) of Executive’s Base Salary (the “Target Performance Bonus”) in the year to which the Annual Performance Bonus relates; provided that the actual amount of the Annual Performance Bonus may be greater or less than the Target Performance Bonus. The Annual Performance Bonus shall be based on performance and achievement of Company goals and objectives as defined by the Board or Compensation Committee. The amount of the Annual Performance Bonus shall be determined by the Board or Compensation Committee in its sole discretion, and shall be paid to Executive no later than March 15th of the calendar year immediately following the calendar year in which it was earned. Except as provided in Section4, Executive must be employed by the Company on the date that the Annual Performance Bonus is paid to Executive in order to be eligible for, and to be deemed as having earned, such Annual Performance Bonus. The Company shall deduct from the Annual Performance Bonus all amounts required to be deducted or withheld under applicable law or under any employee benefit plan in which Executive participates.

On August 28, 2020, in reliance on applicable exemption from the securities laws registration requirements and subject to the Company shareholders’ approval for purposes of compliance with the Nasdaq Rule 5635(c), the compensation committee of the Board awarded to Oleg Firer, the Chief Executive Officer of the Company, 119,361 restricted shares of the Company common stock as performance bonus. Such restricted shares will be not issued and will be deemed forfeited if such shareholders’ approval is not obtained until March 31, 2021.

On May7, 2009, Mr.Abbott entered into an employment agreement that provides for his employment as President and Chief Executive Officer effective June1, 2009 through December31, 2011. Mr.Abbott’s employment agreement provides that the term will automatically renew for one year periods if neither party provides notice to the other by June30 of the last year of the term. Annual base salary and annual performance bonus target percentage are considered for an increase annually in March. The Company’s Compensation Committee has determined that criteria for this annual performance bonus shall be the same as that established for the senior management team. (See details pertaining to annual performance bonus above under the heading “Compensation Discussion and Analysis—Elements of Executive Compensation Packages—Annual Performance Bonus.”) If Mr.Abbott is terminated without cause, the Company must pay the net present value of his base salary for twelve(12)months and a pro rata portion of his bonus through the date his job duties end, for the calendar year in which termination occurs; vested ERISA benefits; and any amounts required by the terms of his LTIP Agreements. Mr.Abbott’s employment agreement has been amended as follows: (1)on May11, 2010 to extend the term of his employment until December31, 2012 and to increase Mr.Abbott’s annual salary to $687,000, (2)on March1, 2012 to increase his annual salary to $767,000 and increase the target of his annual performance bonus to 70% and (3)on February12, 2015 to extend the term of his employment until December31, 2016. Effective March2016, Mr.Abbott’s salary is $937,500, annual performance bonus target is 80% and LTIP target is 85%.

On January1, 2014, the Company entered into an employment agreement with Edward Georger that provided for his employment as Executive Vice President, Advertising Sales and Digital Media through December31, 2015. The employment agreement provided for an annual base salary of $569,387. In addition to the salary, Mr.Georger received an annual performance bonus determined by the Compensation Committee conditioned on the Company’s achievement of certain financial goals. (See details pertaining to annual performance bonus above under heading “Compensation Discussion and Analysis—Elements of Executive Compensation Packages—Annual Performance Bonus.”) Annual base salary and annual performance bonus target percentage were considered for an increase in Marchof each year of the term of employment. Effective March2016, Mr.Georger’s salary is $619,166, annual performance bonus target is 65% and LTIP target is 65%.

On August8, 2006, the Company entered into an employment agreement with Mr.Stanford that provided for his employment as Executive Vice President and General Counsel, which was amended on January29, 2008 and May3, 2010. On January1, 2012, the Company entered into a new employment agreement with Mr.Stanford which replaced the employment agreement described above. The new employment agreement extended the term of his employment through December31, 2013, which was extended again through December31, 2015 by an amendment dated January1, 2014. Mr.Stanford was entitled to receive a bonus each year of no less than 30% of his base salary, conditioned on the Company’s achievement of certain financial goals. (See details pertaining to annual performance bonus above under heading “Compensation Discussion and Analysis—Elements of Executive Compensation Packages—Annual Performance Bonus.”) Annual base salary and annual performance bonus target percentage were considered for an increase annually in Marchof each year of the term of employment. Effective March2016, Mr.Stanford’s salary is $588,350, annual performance bonus target is 40% and LTIP target is 40%.

On January1, 2012, the Company and Ms.Vicary entered into an employment agreement that provided for her employment as Executive Vice President, Programming with a term through December31, 2013. The employment agreement provided for an annual base salary of $300,000. In addition to the salary, Ms.Vicary will receive an annual performance bonus determined by the Compensation Committee conditioned on the Company’s achievement of certain financial goals. (See details pertaining to annual performance bonus above under heading “Compensation Discussion and Analysis—Elements of Executive Compensation Packages—Annual Performance Bonus.”) Ms.Vicary’s employment agreement was amended as of January1, 2014 to extend the term through December31, 2016, increase her annual base salary to $450,000 and to change her title to Executive Vice President, Programming and Network Publicity. Annual base salary and annual performance bonus target percentage are considered for an increase in Marchof each year of the term of employment. Effective March2016, Ms.Vicary’s salary is $481,572, annual performance bonus target is 40% and LTIP target is 50%.

Target pay mix is established for senior executive levels with a greater proportion of pay in the form of stock incentives and performance bonus. For most of our Executive Leaders, about half of their total rewards are targeted to be delivered in the form of stock incentives, when supported by Company performance.

When setting the Employee’s performance objectives, the Committee, after consultation with the Employee, shall specify the level or levels of performance required to be attained with respect to each objective to receive payment of a performance bonus. Effective for calendar year 2019 and thereafter, the aggregate target performance bonus that may be earned when all of the Employee’s performance objectives are achieved shall be not less than Three Million and Four Hundred Thousand Dollars ($3,400,000.00) (the “Target Bonus”) for the calendar year to which the bonus relates; provided, that if the Amendment Effective Date occurs during calendar year 2019 or thereafter, the Target Bonus shall be prorated for such calendar year (e.g., if the Amendment Effective Date occurs on July1, 2019, the Target Bonus for 2019 would be $1,700,000.00).