ÿWPCÞ …# VUNa %¯ 0(µw@Ý4 1 0l@ 0D¬ 0Jð 0T: 0^Ž 0hì 0rT 0|Æ 0†B 0È 1uX U,Í 0dù U,]U>‰B)ÇDCð AM3U*€ªìýoìlv~XvÓÖ D3© BÜ 0@ù AO9ƈ 0DN D/’ BÁ˜HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPTÀäÌÀÀÌÀä0 (ÖÃ9 Z ‹6Times New Roman RegularX($¡¡ ©Uª « ¬ ­ ®¯£°±Ó€½z!3|x½((3üÝ$¤¤Ý ƒ!ÝÝ  Ýà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô  ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)< Œ 9p`(ModernP ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(Monaco< Œ 9p`(&Times New Roman% Line 7 d 7Border 1dd€-!Cþÿ << Gÿÿ< Œ 9p`(Arial øÝ ƒ!ÝÔ€ÔÔ€ÔÝ  ÝÔ€#ÔÔ€#ÔÓ  ÓÔ YYY ÔFILEDÔ€#XÔÌÌò òSeptember€4,€1996ÌÌCecil€Crowson,€Jr.ÌÔ€#ôÔAppellate€Court€Clerkó ó ¹Ý ƒ!ÝÔ€ÔÔ€ÔÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝRobertsðð€employment€was€terminated€in€March€1992.€Ì óÝ ƒ!ÝÔ€ÔÔ€ÔÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝThe€record€reflects€that€Robertsðð€gross€earnings€with€NSA€in€1990€were€$682,807.76€andÏ$546,598.60€in€1991.€Ì âÝ ƒ!ÝÔ€ÔÔ€ÔÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝRoberts€does€not€take€issue€with€the€amount€of€compensation€received€after€September€30,Ï1991.ÌPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'@Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑMonacoÑÑ ÑÒ  BA Op Monaco ÒÒ  BA Op Monaco Ò++++'ÿÿdxd d("ÿÿ$££Ò  ÒÒ  Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€ÔÓ&€X„d&ÓÑ#€Xd#ÑÔ€ÔÝ  ÝÑ\R AØ'\ÑÓ` Ü` p”XÓÑ\R AØ'\Ñà@ àò òIN€THE€COURT€OF€APPEALS€OF€TENNESSEE,€WESTERN€SECTIONÌà@ àAT€JACKSONÌà@ à_______________________________________________________ÌÌó óà à)ò òÌDODSON€ROBERTS,ó óà à)à àShelby€Equity€Ìà à)à àNo.€102980„1€R.D.Ì€€€€€Plaintiff/Appellee.à à)Ìà à)ÌÙ€€ÙÙ€€ÙßL€"$!;+'h|ŠÑ` Å `€€LßVS.à à)à àC.€A.€NO.€02A01„9506„CH„00134Ìà à)Ìò òNATIONAL€SAFETY€ASSOCIATES,ó óà à)Ìò òINC.ó ó,à à)Ìà à)Ì€€€€€Defendant/Appellant.à à)Ìà à)ÌÓÓ_____________________________________________________________________________ÌÓÓFrom€the€Chancery€Court€of€Shelby€County€at€Memphis.Ìò òÓ` Ü` ˜XÓHonorable€Neal€Small,€ChancellorÌÌÌÌEugene€J.€Posdestaó ó,ÌBAKER,€DONELSON,€BEARMAN€,€Memphis,€TennesseeÌAttorney€for€Defendant/Appellant.ÌÌÌÌò òHarold€G.€Walter,ó ó€Memphis,€TennesseeÌAttorney€for€Plaintiff/Appellee.ÌÌÌÌÌÌOPINION€FILED:ÌÌò òAFFIRMED€AND€REMANDEDÌÌÌÌÌà àà àà àà àà àà àFARMER,€J.ÌÌÌÌHIGHERS,€J.ó ó:€(Concurs)Ìò òLILLARD,€J.ó ó:€(Concurs)ÌÌÓ` Ü` p”XÓÌÌÌÌÌÌÌÌÌÌÓÓÓ  ÓÓ` Ü` ˜XÓà àThis€is€an€action€by€Appellee,€Dodson€Roberts€(Roberts),€to€recover€theÏcompensation€allegedly€due€him€from€his€former€employer,€the€appellant,€National€SafetyÏAssociates,€Inc.€(NSA).€€Ìà àNSA€hired€Roberts€in€August€1987€to€head€up€its€foreign€sales€division.€€NSAÏmanufactures€a€line€of€environmental€products€primarily€for€residential€use€and,€prior€to€RobertsððÏemploy€was,€for€the€most€part,€not€involved€in€the€international€market.€€There€is€no€writtenÏemployment€contract€between€the€parties.€€They€agree€that€the€method€of€computing€RobertsððÏearned€compensation€changed€yearly€due€to€the€startup€nature€of€the€business€and€the€initialÏdifficulty€in€monitoring€profitability.€€As€explained€by€NSAððs€secretary/treasurer,€Frank€Swords:ÌÌÓÓà8 à[I]t€is€generally€felt€that€it€is€desirable€for€someone€in€a€position€likeÏ[Roberts]€.€.€.€to€have€their€compensation€at€least€partially€based€onÏthe€profitability€of€the€enterprise€they€are€operating.€€Since€weÏstarted€from€ground€zero,€we€didnððt€have€any€track€record€.€.€.€as€toÏwhat€profits€were€likely€to€be.€€So,€in€the€beginning€.€.€.€theÏincentive€portion€of€the€package€was€based€entirely€on€sales€but€.€.€.Ïwe€had€to€ultimately€get€to€a€place€where€the€incentive€would€beÏbased€about€half€on€sales€and€.€.€.€half€on€profitability€and€itÏprobably€wouldnððt€be€proper€to€make€a€change€from€the€total€basedÏon€sales€structure€[in]€the€beginning€in€one€fell€swoop.€€So,€it€took,Ï.€.€.€about€four€years€to€get€there€and€I€think€that€is€where€we€wereÏwith€the€final€package.€€ÌÌÌÌÓÓà àAccording€to€Roberts,€the€change€in€his€compensation€took€place€at€the€beginningÏof€each€fiscal€year.€€Normally€there€were€prior€negotiations€between€the€parties€regarding€anyÏchanges€for€the€upcoming€fiscal€year.€€There€were,€however,€no€formal€contracts€memorializingÏthe€changes,€only€ð ðmemorandumsðð€given€Roberts€outlining€the€changes.ÌÌà àNSA€operates€under€a€fiscal€year€beginning€May€1.€€For€fiscal€year€May€1,€1990€toÏApril€30,€1991,€the€last€full€fiscal€year€of€Robertsðð€employ,× ƒ% ××  ×€his€compensation€was€comprised€ofÏthree€parts:€€a€base€salary€of€$40,000€annually,€a€sales€commission€representing€a€certainÏpercentage€of€foreign€sales€and€a€bonus€equal€to€a€minimum€75%€of€the€sales€commission€to€aÏmaximum€125%.€€At€the€start€of€the€fiscal€year€beginning€May€1,€1991,€Robertsðð€employmentÏcontinued€without€any€defined€change,€or€ð ðmemorandumðð€by€NSA€detailing€any€changes€to€hisÏcurrent€compensation€plan.€€Roberts,€however,€was€made€aware€that€his€current€package€wouldÏchange.€€Five€months€into€the€fiscal€year,€on€September€30,€1991,€Roberts€received€the€followingÏmemorandum€from€NSA:€ÌÌÓÓà8 àThis€is€to€confirm€our€agreement€concerning€your€compensationÏarrangement€for€fiscal€year€ending€April€30,€1992.ÌÌà8 àà à1.€€For€the€first€quarter€of€the€year€(May€1,€1991€until€JulyÏ31st)€you€will€be€paid€on€the€same€basis€as€fiscal€year€ending€AprilÏ30,€1991.ÌÌà8 àà à2.€€Beginning€August€1,€1991€you€will€be€paid€at€an€annualÏrate€of€$100,000.ÌÌà8 àà à3.€€Provided€financial€statement€sales€of€Canada,€UK,€andÏGermany€combined€are€$100,000,000€you€will€receive€a€bonusÏequal€to€your€salary.ÌÌà8 àà à4.€€Provided€sales€are€$100,000,000€and€profit€for€the€threeÏcountries€is€10%€after€tax,€you€will€receive€an€additional€bonusÏequal€to€your€annual€salary.× ƒ& ××  ×€€ÌÌÌÌÓÓà àSometime€between€September€27€and€September€30,€Roberts€received€a€paycheckÏfrom€NSA€in€an€amount€representing€his€sales€commission€for€the€first€quarter€(May,€June€andÏJuly)€of€fiscal€year€beginning€May€1,€1991€and€an€adjustment€of€his€annual€salary,€as€reflected€inÏthe€memo,€to€$1,925€weekly,€retroactive€to€August€1,€1991.€€Roberts€retained€the€check€andÍcontinued€in€NSAððs€employ,€receiving€the€salary€outlined€above€until€his€termination.ÌÌà àIn€his€complaint,€Roberts€alleges€that€he€never€agreed€to€any€retroactive€reduction€ofÏhis€compensation.× ƒ' ××  ×€€He€seeks€recovery€of€a€bonus€payment€or€ð ðprofit€incentive,ðð€as€he€refers€to€it,Ïfor€the€first€five€months€of€fiscal€year€ending€April€30,€1992€and€also€claims€entitlement€to€a€salesÏcommission€for€the€months€of€August€and€September€1991,€all€in€accordance€with€the€precedingÏfiscal€yearððs€compensation€package.€€NSA€denies€that€Roberts€is€entitled€to€any€additionalÏcompensation.€After€hearing€the€evidence,€the€trial€court€refused€to€enforce€a€retroactive€applicationÏof€the€September€30,€1991€memo€and€ordered€that€NSA€be€credited€for€the€sums€paid€RobertsÏrepresenting€the€retroactive€adjustment€to€his€annual€salary.€€Roberts€was€awarded€a€judgment€forÏ$230,073.50,€representing€his€ð ðprofit€incentiveðð€for€May€through€September,€1991€and€his€salesÏcommission€for€August€and€September€1991.€ÌÌà àNSA€has€appealed,€presenting€the€following€issues€for€our€consideration:ÌÌÓÓà8 àà à1.€€Whether€the€trial€court€erred€in€refusing€to€enforce€theÏcontract€agreed€upon€by€the€parties.ÌÌà8 àà à2.€€Whether€the€trial€court€erred€in€awarding€appellant€interimÏpayments€of€an€annual€bonus€for€the€first€five€months€of€the€fiscalÏyear€ending€April€30,€1992.ÌÌÌÌÓÓà àWe€consider€first€the€trial€courtððs€alleged€error€in€failing€to€retroactively€apply€theÏterms€of€the€September€30,€1991€memo,€which€was€undisputedly€followed€by€the€parties€from€thatÏdate€forward.€€NSA€argues€that€the€trial€court€failed€to€enforce€the€agreement€of€the€parties€asÏwritten€and€in€so€doing€ordered€the€parties€to€ð ðundoðð€their€actions€taken€after€the€agreement€wasÏreached€and€consistent€therewith.€€NSA€relies€to€a€great€extent€on€the€fact€that€Roberts€accepted€payÍin€an€amount€representing€the€retroactive€salary€adjustment€and€continued€thereafter€in€NSAððsÏemploy.€€Thus,€it€is€asserted€that€Roberts€accepted€the€benefit€of€the€offer€and€a€binding€contractÏresulted.ÌÌà àThe€following€evidence€was€presented€on€the€issue:€Roberts€testified€that€he€firstÏsaw€the€September€30,€1991€memo€on€that€date€and€that€approximately€a€week€earlier€there€wereÏdiscussions€with€NSA€regarding€a€change€in€his€compensation€package.€€He€denied€that€there€wereÏany€discussions€that€the€change€would€apply€retroactively.€€Roberts€was€questioned:ÌÌÓÓà8 àQ.à àWas€there€any€discussion€of€when€this€compensationÏpackage€was€to€begin?ÌÌà8 àA.à àNot€that€I€recall,€no.€€In€fact,€I€went€back€to€him€after€theÏmeeting€and€said€what€about€my€previous€earnings?€€Up€to€that€time,ÏI€had€really€not€earned€anything.€€And€he€said€he€would€look€into€itÏand€then€in€that€memo€there€was€the€thing€about€the€first€quarter€andÏI€got€a€check€about€that€time€too.ÌÌà8 àQ.à àBut€you€did€ask€him€about€„„ÌÌà8 àA.à àAbout,€you€know,€what€I€had€earned.€€I€felt€I€had€earned€myÏcommissions€up€to€that€point€because€they€hadnððt€changed.€€Here€IÏwas€five€months€into€a€fiscal€year€in€which€I€had€basically€beenÏoperating€in€good€faith,€and€I€thought€I€had€earned€what€I€earned€.€.Ï.€.ÌÌÌÌÓÓà àSometime€around€September€27,€Roberts€received€a€document€from€NSAÏconcerning€his€ð ð[c]ommission€sale€for€5„1„91€through€7„1„91,ðð€which€also€detailed€the€retroactiveÏapplication€of€an€increase€in€his€weekly€salary€to€8„1„91.€€Roberts€was€asked€whether€he€believedÏhimself€entitled€to€ð ðanything€additionalðð€after€receipt€of€the€document€and€the€paycheck€whichÏaccompanied€it,€to€which€he€replied,€ð ð[y]es,€I€thought€I€was€due€what€I€should€have€been€paid€forÏthose€first€five€months€of€the€fiscal€year€at€the€very€least.ðð€€Roberts€declared€that€at€the€time€heÏreceived€the€memo,€he€was€ð ðhalfway€through€a€fiscal€yearðð€and€ð ðhad€already€earned€a€certainÏamount€of€money.ðð€€ÌÌà àRoberts€admitted€cashing€the€paycheck€which€included€the€retroactive€salaryÏadjustment,€stating€ð ðI€accepted€[it]€because€.€.€.€I€was€owed€more€than€that.ðð€€He€continued,€ð ðIÏeither€accept€this€and€take€it€to€the€bank€or€I€could€hit€the€street€was€my€feeling.ðð€€He€furtherÏcommented,€ð ðI€needed€a€job.€€I€didnððt€have€another€one.€€I€needed€the€health€insurance.ððÌÌà àNSAððs€president,€Jay€Martin€testified€that€there€were€ð ðon€going€discussionsðð€withÏRoberts€regarding€a€change€in€his€compensation€package€both€prior€to€and€after€the€end€of€fiscalÏyear€1991.€€Martin€stated€that€the€delay€in€implementing€the€change€was€due€to€NSAððs€need€for€theÏyear€end€profit€figures€of€fiscal€year€1991€before€a€suitable€compensation€package€for€the€nextÏfiscal€year€could€be€determined.€€Swords€testified€that€the€discussions€with€Roberts€culminated€inÏthe€September€30,€1991€memo.€€He€said€that€there€were€discussions€before€May€1,€1991€but€that€atÏthat€time€they€did€not€have€the€ð ðfinal€details.ðð€€ÌÌà àSwords€was€further€questioned:ÌÌÓÓà8 àà àTHE€COURT:€But€there€was€no€coming€together€on€whenÏare€we€going€to€do€this€and€it€being€these€percentages€and€on€aÏcertain€date?ÌÌà8 àà àTHE€WITNESS:€No,€sir,€I€mean,€we€didnððt€have€theÏpercentages€lined€out.€.€.€.€ÌÌà8 àà à.€.€.€.ÌÌà8 àà àTHE€COURT:€€.€.€.€.€€When€was€it€agreed€to€or€when€was€itÏjust€said€we€are€going€to€start€from€today€and€do€it€differently?ÌÌà8 àà àTHE€WITNESS:€Again,€it€was€discussed€that€it€was€goingÏto€be€changed,€a€change€was€going€to€be€made€prior€to€4/30/91.€€ÌÌÌÌÓÓà àThe€trial€court€ruled€from€the€bench€as€follows:ÌÌÓÓà8 àà àIt€is€true€that€a€contract€can€be€bound€by€part€performance€orÏcan€be€ratified€by€the€party€being€charged.€€The€court€feels€in€thisÏcase,€however,€that€in€order€to€enforce€.€.€.€the€memo€datedÍSeptember€30,€1991,€the€court€would€have€to€enforce€itÏretroactively.ÌÌà8 àà à.€.€.€.ÌÌà8 àà àThe€point€is,€though,€that€they€had€an€understanding€andÏagreement€that€they€had€been€operating€on€for€some€time.€€There€hadÏbeen€by€the€testimony€of€.€.€.€Mr.€Swordsðð€.€.€.€that€there€had€neverÏbe€[sic]€a€time€when€these€parties€even€sat€down€and€agreed€that,€.€.Ï.€as€of€the€first€of€the€month€or€any€certain€date€we€are€going€toÏchange€this€arrangement€and€it€will€be€based€from€that€point€forwardÏon€this€.€.€.€.€€Nothing€until€September€30,€1991.€€There€had€beenÏsome€indication€that€the€plan€would€be€changed,€but€I€donððt€thinkÏthat€was€sufficient.€€That€is€little€more€than€perhaps€negotiations€toÏchange€the€deal€somewhat.ÌÌà8 àà àThe€court€feels€that€there€was€no€definite€change,€no€meetingÏof€the€minds€of€the€parties€on€the€change€at€least€until€the€SeptemberÏ30,€1991€memo€in€which€[NSA]€notified€Mr.€Roberts€that€this€isÏgoing€to€be€the€deal.€It€is€the€courtððs€finding€that€that€was€a€way€ofÏsaying€we€are€going€to€change€the€deal€as€of€today.€€ÌÌÌÌÓÓà àIt€is€well€settled€that€a€binding€contract€must€result€from€a€meeting€of€the€minds,€beÏbased€upon€sufficient€consideration€and€be€sufficiently€definite€to€be€enforced.€€òòò òPeoples€Bank€v.ÏConAgra€Poultry€Co.óóó ó,€832€S.W.2d€550,€553€(Tenn.€App.€1991).€€In€addition,€a€modification€ofÏan€existing€contract€cannot€be€accomplished€by€the€unilateral€actions€of€one€of€the€parties.€€ThereÏmust€be€the€same€mutuality€of€assent€and€meeting€of€the€minds€as€required€to€make€a€contract.€ÏNew€negotiations€cannot€affect€a€completed€contract€unless€they€result€in€a€new€agreement.€Ïòòò òBalderacchi€v.€Ruthóóó ó,€256€S.W.2d€390,€392€(Tenn.€App.€1952).ÌÌà àOur€review€of€this€matter€is€in€accord€with€Rule€13(d)€T.R.A.P.,€which€providesÏfor€a€òòò òde€novoóóó ó€review€upon€the€record,€accompanied€by€a€presumption€of€correctness€of€the€trialÏcourtððs€findings€of€fact€unless€the€evidence€preponderates€otherwise.€€òòò òSee,€e.g.,€Presley€v.€Bennettóóó ó,Ï860€S.W.2d€857,€859€(Tenn.€1993).€€It€is€clear€that€the€parties€to€this€action€never€operated€under€aÏwritten€employment€agreement.€€Roberts€was€simply€informed€prior€to€the€end€of€the€fiscal€yearÏthat€his€compensation€package€for€the€upcoming€fiscal€year€would€likely€change.€€TheÏuncontroverted€testimony€of€Roberts€is€that€such€change€was€always€enacted,€prior€to€the€year€inÍdispute,€at€the€beginning€of€the€new€fiscal€year.€€The€change€was€documented€in€memoranda€whichÏaccompanied€Robertsðð€paycheck€and€accepted€when€Roberts€continued€working€with€the€company.€ÏFor€the€fiscal€year€in€dispute,€however,€the€changes€were€for€the€first€time€not€implemented€at€theÏbeginning€of€the€fiscal€year,€but€five€months€into€it.€€Roberts€testified€that€prior€to€the€SeptemberÏ30,€1991€memo,€the€parties€had€never€discussed€a€retroactive€application€of€his€salary€adjustment.€ÏNor€do€we€find€the€testimonies€of€Martin€and€Swords€to€suggest€a€ð ðmeeting€of€the€mindsðð€by€theÏparties€on€this€issue.€€Their€testimonies€confirm€that€although€there€were€several€ð ðdiscussionsððÏbetween€the€parties€regarding€Robertsðð€salary€adjustment,€there€was€never€any€agreement€that€itÏwould€apply€retroactively.€€ÌÌà àWe€believe€that€it€is€clear€that€the€parties€in€this€case€failed€to€reach€any€agreementÏconcerning€the€retroactive€effect€of€Robertsðð€new€compensation€package,€unless€it€can€be€said€thatÏRobertsðð€retention€of€the€paycheck€representing€the€retroactive€pay€constituted€an€acceptance€ofÏsuch.€€Roberts€testified€that€he€kept€the€check€because€he€believed€he€was€entitled€to€at€least€thatÏmuch€and€more€and€because€he€needed€the€job.€€We€hold€that€under€the€present€circumstances,ÏRobertsðð€acceptance€of€the€paycheck€as€a€portion€of€his€earned€compensation€did€not€constitute€anÏacceptance€of€a€retroactive€pay€adjustment,€which€had€the€overall€effect€of€reducing€his€salary.€€AnÏemployeeððs€receipt€of€a€portion€of€the€compensation€due€him€ð ðdoes€not€necessarily€mean€that€thereÏis€a€waiver€of€the€additional€amount€due.ðð€€òòò òFreeman€v.€Kingóóó ó,€662€S.W.2d€479,€481€(Ark.€Ct.ÏApp.€1984).€€The€question€of€waiver€is€usually€one€of€fact.€€òòò òFreemanóóó ó,€662€S.W.2d€at€481.€€AsÏfact€finder,€the€trial€judge€failed€to€find€that€Roberts€waived€his€right€to€seek€additionalÏcompensation€by€accepting€the€check.€€We€find€no€error€in€this€regard€and,€therefore,€conclude€thatÏthe€parties€failed€to€agree€that€Robertsðð€new€compensation€package€would€be€applied€retroactively.ÌÌà àAs€we€have€determined€that€the€September€30€memo€does€not€apply€to€retroactivelyÏalter€Robertsðð€compensation,€we€hold€him€entitled€to€the€same€pay€structure€as€the€preceding€fiscalÏyear.€€The€second€issue€before€us€is,€thus,€whether€such€compensation€plan€included€an€interimÍbonus€payment.€€NSA€argues€that€the€third€component€of€Robertsðð€compensation€package€for€fiscalÏyear€1991€was€an€ð ðannualðð€bonus€ð ðbased€upon€certain€year„end€profitability€calculations.ðð€€NSAÏpoints€to€the€fact€that€on€a€memorandum€detailing€ð ðDodsonððs€Commission€Structureðð€for€May€1,Ï1990€to€April€30,€1991,€the€bonus€given€is€identified€as€ð ðannual.ðð€€NSA€further€asserts€that€anyÏdeviation€from€its€payment€of€such€bonus€other€than€at€the€fiscal€yearððs€end€was€due€to€RobertsððÏrequest,€during€fiscal€year€1991,€for€certain€ð ðadvancesðð€against€such€annual€bonus€and€does€notÏoperate€to€change€the€nature€of€that€bonus.ÌÌà àSwords€testified€that€it€ð ðwas€intendedðð€that€the€bonus€be€paid€on€an€annual€basis.€ÏHe€corroborated€Martinððs€testimony€that€the€interim€advances€made€Roberts€on€his€year€end€bonusÏduring€fiscal€year€1991€were€due€to€Robertsðð€stated€need€and€request€for€the€funds€to€enable€him€toÏpurchase€property.€€Roberts€denies€this,€stating:€€ÌÌÓÓà8 àà àI€went€to€Mr.€Martin€and€we€talked€about€it€several€times€andÏhis€comment€was€a€man€ought€to€get€his€money€when€he€gets€it€andÏit€was€not€specifically€to€buy€my€sisterððs€farm.€€You€have€to€realizeÏthat€my€income€had€been€cut€tremendously€in€this€change,€myÏmonthly€income.ÌÌÌÌÓÓà àRoberts€testified€that€for€fiscal€year€1991,€he€received€an€interim€€bonus€paymentÏrepresenting€the€first€two€quarters.€€He€denied€that€this€payment€was€an€ð ðadvance,ðð€noting€that€heÏpaid€income€tax€on€it.€€He€further€stated€that€his€profit€incentive€ð ðwas€paid€usually€quarterly€.€.€.€.ðð€ÏRoberts€said€that€he€never€discussed€with€NSA€that€the€bonus€was€to€be€an€annual€one.€€ÌÌà àThe€parties€do€not€dispute€that€for€fiscal€year€1991,€Robertsðð€bonus€payment€couldÏnever€be€less€than€75%€of€his€sales€commission.€€Roberts€explained,€ð ðthat€is€why€[the€bonus]€wasÏpaid€on€a€continual€basis€because€there€was€never€any€chance€of€me€having€to€return€any€of€it.ðð€ÏMartin€was€asked,€ð ð[s]o€even€if€the€company€lost€money€on€[its]€sales,€[Roberts]€would€still€beÏentitled€to€this€.€.€.€bonus€.€.€.€of€75€percent;€is€that€correct?ðð,€to€which€he€replied,€ð ð[t]hatððsÍcorrect.ðð€€Swords€testified€that€the€interim€bonus€payments€to€Roberts€in€fiscal€year€1991€wereÏcalculated€at€75%€because€NSA€knew€that€he€would€earn€at€least€that€amount.€€The€parties€alsoÏagree€that€Robertsðð€sales€commission€was€paid€on€a€monthly€basis€and€that€the€sales€booked€eachÏmonth€could€not€subsequently€come€off€the€books.ÌÌà àSwords€acknowledged€that€NSAððs€year€end€profit€figures€were€not€necessary€toÏdetermine€the€minimum€percentage€of€commission€due€Roberts.€€He€was€questioned,€ð ðyou€didnððtÏneed€the€final€year„end€figures,€profit€figures€which€I€understand€take€a€while€to€get€.€.€.€in€.€.€.€toÏknow€that€[Roberts]€would€be€entitled€to€a€minimum€commission€of€[75]€percent,ðð€to€which€heÏresponded,€ð ð[t]hatððs€correct.ðð€€Swords€commented€that€the€year€end€profit€figures€were€useful€inÏdetermining€whether€Roberts€was€entitled€to€more€than€the€minimum€75%.€€He€was€further€asked:€ÌÌÓÓà8 àà àTHE€COURT:€€€€.€.€.€.€€€In€other€words,€the€75€percent€ofÏcommissions€was€paid€as€a€profit€incentive€regardless€of€the€amountÏof€profit?ÌÌà8 àà àTHE€WITNESS:€You€could€look€at€it€that€way.€€This€wasÏreally€some€of€the€money€that€had€been€previously€paid€as€salesÏcommissions€and€you€see€that€part€of€it€is€contingent.€€Seventy„fiveÏpercent€of€it€was€going€to€be€paid€regardless.€€But€if€he€could€attain€aÏhigher€profit€percentage,€he€could€get€100€percent€and€if€he€couldÏattain€a€still€higher€profit€percentage,€he€could€attain€125€percent.€€ÌÌÌÌÓÓà àWe€find€the€record€to€clearly€establish€that€in€fiscal€year€1991,€Roberts€was€entitledÏto€a€bonus€or€ð ðprofit€incentiveðð€payment€equal€to€no€less€than€75%€of€his€sales€commission.€€TheÏlatter€was€calculated€monthly€and€once€determined,€could€not€later€change€because€those€sales€didÏnot€come€off€the€books.€€Thus,€the€amount€of€bonus€due€Roberts€at€any€given€time€was€readilyÏcalculable€as€it€could€never€be€less€than€75%€of€his€sales€commission.€€Indeed,€Swords€testifiedÏthat€the€year€end€profit€figures€were€not€necessary€to€determine€the€minimum€percentage€ofÏcommission€due€Roberts,€but€only€the€maximum.€€It€is€important€to€note€here€that€Roberts€does€notÏseek€an€amount€representing€his€bonus€or€ð ðprofit€incentiveðð€payment€in€excess€of€the€75%Ïminimum.€€ÌÌà àRegardless€of€whether€the€bonus€is€identified€as€ð ðannualðð€or€otherwise,€it€wasÏcertainly€paid€to€Roberts€on€less€than€an€annual€basis.€€Moreover,€these€payments€were€clearlyÏbased€on€the€75%€minimum,€of€which€Roberts€was€assured,€and€which,€according€to€Swords,Ïwas€to€be€paid€him€ð ðregardless.ðð€€The€record€does,€however,€establish€that€there€were€certain€otherÏpayments€to€Roberts€that€were€not€tied€to€the€75%€figure.€€The€proof€shows€that€these€were€treatedÏas€true€advances€by€NSA,€requiring€a€deduction€from€his€actual€bonus€payments.€€RobertsÏdistinguished€between€the€two€by€pointing€out€that€the€two€interim€bonus€payments€received€byÏhim€in€fiscal€year€1991€were€included€on€his€W„2€form.€€He€further€clarified€that€these€paymentsÏwere€included€on€his€W„2€in€the€calendar€year€paid,€not€the€fiscal€year.€€Based€upon€the€foregoing,Ïwe€find€the€evidence€to€preponderate€in€favor€of€the€trial€courtððs€ruling€that€Roberts€is€entitled€to€beÏcompensated€in€an€amount€representing€his€minimum€bonus€or€incentive€payment€(75%€of€hisÏsales€commission)€for€the€months€of€May€through€September,€1991€(in€addition€to€his€actual€salesÏcommission€for€August€„€September€1991).ÌÌà àThe€judgment€of€the€trial€court€is€affirmed€and€this€cause€remanded€for€any€furtherÏproceedings€deemed€necessary.€€Costs€are€assessed€against€National€Safety€Associates,€Inc.,€forÏwhich€execution€may€issue€if€necessary.ÌÌÓÓÓ` Ü` È“XÓà à________________________________Ìà àFARMER,€J.ÌÌÌÌ______________________________ÌHIGHERS,€J.€(Concurs)ÌÌÌÌ______________________________ÌLILLARD,€J.€(Concurs)Ì