An annual cash bonus plan designed to comply with the requirements for qualified performance-based compensation under Section 162(m) of the Internal Revenue Code. Although this exception has generally been eliminated, it continues to apply to certain plans that meet the requirements of a transition rule under the Tax Cuts and Jobs Act. For an annual cash bonus plan that is not designed to comply with the performance-based compensation exception and is a better starting point for new plans, see Standard Document, Annual Cash Bonus Plan (Not Designed to Comply with Section 162(m)'s Performance-Based Compensation Exception). This Standard Document has integrated notes with important explanations and drafting tips.