Executive Bonus Agreement

Company: [Company Name] · Executive: [Name] · Position: [Title] · Date: [Date]

1. Bonus Opportunity

Executive is eligible for an annual bonus with a target of [%] of base salary, [ranging from 0% to a maximum of [%] based on performance], subject to the terms below.

2. Performance Metrics

Bonus is based on: [Company financial performance (e.g. revenue, EBITDA targets), individual performance goals, or a combination], weighted as follows: [Company metrics: [%], Individual metrics: [%]].

3. Determination and Approval

Actual bonus achievement is determined by [the Board/Compensation Committee] following the close of the [fiscal year], based on results against the metrics above.

4. Payment Timing

Approved bonuses are paid by [Date, e.g. March 15 following the applicable year, consistent with IRC Section 409A short-term deferral timing], less applicable withholdings.

5. Proration

[State whether a partial-year bonus is paid if Executive's employment starts or ends mid-year — commonly prorated for a new hire, and forfeited or prorated depending on the reason for departure.]

6. Discretion

[Company Name]'s Board/Compensation Committee retains discretion to adjust bonus payouts based on factors not fully captured by the formula metrics, including individual conduct and overall company performance.

7. No Guarantee

This bonus opportunity does not guarantee any specific payment amount and does not modify Executive's at-will employment status.

Company: ______________________ Date: ____________ Executive: ______________________ Date: ____________

*Paying an annual bonus by the following March 15 (Section 4) isn't an arbitrary date — it's the specific deadline under IRC Section 409A's "short-term deferral" exception that lets a bonus avoid being treated as deferred compensation subject to much stricter tax timing rules.*