The cash bonus payable to executive officers will be calculated quarterly. The amount of bonus payable with respect to each quarter is the “Quarterly Bonus.” The Quarterly Bonus will be equal to (1)the Quarterly Bonus Amount at Target applicable to such executive officer as set forth in the first table below, multiplied by (2)the percentage applicable to the combination of revenue and operating margin achieved by the Company in each quarter set forth in the second table further below (the “Quarterly Achievement Percentage”).For purposes of the Cash Bonus Plan, calculations of operating margin will be on a non-GAAP basis applied consistently with past practice, with such changes as may be approved by the Audit Committee of the Company’s Board of Directors as circumstances arise.
During fiscal year 2019, Mr.Horn was eligible to receive two forms of short-term cash incentive compensation, a volume override bonus and a quarterly bonus. The volume override bonus is paid on a monthly basis, subject to Mr. Horns continued employment through the entire applicable month, and is calculated as 0.6 basis points of the adjusted gross loan amount involved in each in-house loan closing, which is defined as company closed and funded residential mortgage loans in the applicable month that are not unfunded, plus certain loans closed under the Companys direct lending channel. The quarterly bonus is calculated as 0.95% of the total adjusted regional contribution, which is defined as the total region income, marketing income and operation center contributions, minus region expense, acquisition payouts and corporate costs, and is paid in quarterly draws, subject to Mr. Horns continued employment through the entire applicable quarter, equal to 75% of the cumulative year-to-date calculated bonus amount, for each of the first three calendar quarters, plus a final payment for the fourth quarter equal to 100% of the calculated bonus amount not previously paid in the fiscal year. For fiscal year 2019, Mr.Horn received an aggregate volume override bonus of $887,465, based on the aggregate adjusted gross loan amount involved in in-house closings of $14,791,075,172, and cumulative quarterly bonuses of $1,032,744, based on the total adjusted regional contribution of $108,709,876.
III. Quarterly Bonus. Employee is eligible to receive a Quarterly Bonus per the Regional Contribution Report as prepared by the Companys Finance Department.
Because Quarterly Bonus is considered, among other things, a retention incentive, the employee must be employed through the entire calendar quarter to be eligible to earn a Quarterly Bonus. If the employee is eligible to earn a Quarterly Bonus, it will be paid when earned as defined in this Exhibit A.
VI. Leaves of Absence. During unpaid leaves of absences of any nature, Employee will not be eligible to earn any Volume Override or Quarterly Bonus. However, any Volume Override or Quarterly Bonus earned prior to the start of the unpaid leave of absence will be paid in accordance with this Exhibit.
(2) Income and Expenses related to the new branches added to the Region during the year will be excluded from the Quarterly Bonus Calculation for the first two (2)full months of operation if they are negative. After two full months of operation, the cumulative profit (loss) will be included in the cumulative calculation of the Quarterly Bonus. This does not apply to satellite branches.
(1)In addition to the Mr. Julia’s Base Salary, he shall be entitled to a quarterly bonus (the "Quarterly Bonus") of at least 1% of Gross Revenue (as defined under generally accepted accounting principles) for each completed fiscal quarter, so long as Gross Revenue meets or exceeds seventy-five (75%) percent of managements stated goal. The Quarterly Bonus shall be paid no later than fourteen (14) days from Company's filing of the form 10-Q, either in cash, common stock or stock options, at the election of Mr. Julia. Should his Employment Agreement be terminated prior to the end of any fiscal year for any reason other than that provided in the Agreement, a pro rata portion of the Quarterly Bonus shall be paid within 30 days of such termination. For each subsequent calendar year, the Company's Board of Directors, will confirm a new revenue goal for the upcoming year for the purpose of calculating the Quarterly Bonus. In the event that the Company is acquired through a board of directors approved (i) change in control of at least 50% of the outstanding voting stock or (ii) the sale of all or substantially all of the assets, Mr. Julia shall be entitled to receive a payment in-kind equal to three (3%) percent of the consideration paid in connection with said transaction. He also received a signing bonus of options to purchase 25 million shares, exercisable at $.15 per share, over a term of 10 years.
4.6Quarterly Bonus.The Company shall pay a quarterly bonus of $10,000 (the “Quarterly Bonus”) payable in the first payroll cycle in January, April, July, and October of each year, with the first Quarterly Bonus to be paid in Executive’s April 3, 2020 paycheck.In order to be eligible to receive such Quarterly Bonus, Executive must be employed by the Company on the last date of the prior calendar quarter (e.g. as of March 31, 2020 for the payment to be made on April 3, 2020).
Qualified Quarterly Bonus. Qualified Quarterly Bonus of a Key Executive shall mean the Key Executives quarterly cash bonus which may be payable to the Key Executive under such bonus or incentive compensation plan(s) of the Company which may be designated from time to time by the Administrator.