Eli Lilly 2003 Annual Report Download - page 91

PROXY STATEMENT
89
b. Company Bonus Calculation. Except as described in Section 5.6(c) below, a Participant’s Company Bonus will
equal the product of the Company Performance Bonus Multiple and the Participant’s Bonus Target and the
Participant’s Earnings.
c. Adjustment for Performance Multiplier, if Applicable. Notwithstanding anything herein to the contrary, all eli-
gible management employees (except Lilly Executive Offi cers), United States employees and other employees
as may be designated from time to time by the Committee are subject to individual performance multipliers.
For all such Participants subject to an individual performance multiplier, the amount calculated in Section
5.5(b) above will be adjusted based on the Participant’s performance rating at the end of the Applicable Year
as described below. For each such Participant, the performance rating will be determined by the Partici-
pant’s supervision.
1. Exemplary Performance. If the Participant receives an exemplary or equivalent performance rating (us-
ing the applicable performance rating system then in effect for the Participant), the amount calculated
in Section 5.6(b) will be multiplied by an amount determined by the Committee, not to exceed 1.5, to
obtain the Participant’s actual Company Bonus.
2. Satisfactory Performance. If the Participant receives a satisfactory or equivalent performance rating
(using the applicable performance rating system then in effect for the Participant), the amount calcu-
lated in Section 5.6(b) will be multiplied by 1.0 so that the Participant’s actual Company Bonus will equal
the amount calculated in Section 5.6(b) above.
3. Unsatisfactory Performance. If the Participant receives a year-end unsatisfactory or equivalent perfor-
mance rating (using the applicable performance rating system then in effect for the Participant), the
amount calculated in Section 5.6(b) will be multiplied by 0.0 so that the Participant’s actual Company
Bonus will equal $0.00.
In the event that a Participant does not receive a year-end performance rating, but is eligible for a Company Bonus,
the amount calculated in Section 5.6(b) will be multiplied by 1.0 so that the Participant’s actual Company Bonus will
be the amount calculated in Section 5.6(b) above.
5.7 Conditions on Company Bonus. Payment of any Company Bonus is neither guaranteed nor automatic. A Partici-
pant’s Company Bonus is not considered to be any form of compensation, wages, or benefi ts, unless and until paid.
5.8 Required Employment. Except as provided below in this Section 5.8 or as otherwise designated by the Commit-
tee, if a Participant is not employed by the Company on the last day of the Applicable Year, or is otherwise not an
Eligible Employee on that date, the Participant is not entitled to any Company Bonus payment under this Plan for
that Applicable Year.
a. Leaves of Absence. A Participant who, on the last day of the Applicable Year, is on approved leave of absence
under the Family and Medical Leave Act of 1993, military leave under the Uniformed Services Employment
and Reemployment Rights Act, or such other approved leave of absence will be considered to be an Eligible
Employee on that date for purposes of this Plan.
b. Transfer. An employee who is a Participant in this Plan for a portion of the Applicable Year and then trans-
fers to a position within the Company in which he is ineligible to participate in this Plan, but who remains
employed by the Company on the last day of the Applicable Year, will be treated as satisfying the last-day-
of-Applicable Year requirement for purposes of this Plan. In that event, his Company Bonus will be based on
his Participant Earnings for the portion of the Applicable Year in which the employee was a Participant in the
Plan.
c. Retirement, Disability or Death. A Participant who was an Eligible Employee for some portion of the Appli-
cable Year and then takes Retirement, becomes and remains Disabled through the end of the Applicable Year,
or dies during the Applicable Year will be considered to satisfy the last-day-of-Applicable-Year requirement
described in this Section 5.8 for purposes of this Plan.
d. Notice of Resignation. In addition, a Participant who submits a notice of resignation from employment with the
Company prior to the end of the Applicable Year and whose effective date of resignation is two (2) weeks or
less from the date of notice of resignation will be considered employed by the Company for purposes of this
Plan until the end of his specifi ed notice period.
5.9 New Participants. If an Eligible Employee began participation in the Plan during an Applicable Year and is
eligible for a Company Bonus, his Company Bonus will be based on Participant Earnings earned after the employee
became a Participant. An Eligible Employee who became assigned to a position eligible for a Company Bonus at