Common use of Performance Discount Clause in Contracts

Performance Discount. As used in this Section 2.2(b) only "previous calendar quarter" shall refer to the first two (2) months of the previous calendar quarter and the last month of the next preceding calendar quarter. For each performance standard set forth in Exhibit B ("Performance Standard") that was met or exceeded by Nova Factor in the previous calendar quarter, the relevant additional discount amount shall be added to the Base Discount for the current calendar quarter, up to a maximum of * percentage * (*%). For each incentive standard set forth in Exhibit B ("Incentive Standard") that was met or exceeded by Nova Factor in the previous calendar quarter, the relevant additional discount amount shall be added to the base * Omitted information is the subject of a request for confidential treatment pursuant to Rule 406 under the Securities Act of 1933 and has been filed separately with the Securities Exchange Commission. Discount for the current calendar quarter, up to a maximum of * percentage * (*%), for a maximum total addition under this Section 2.2 (b) of * percentage * (*%) in the aggregate. For each Performance Standard set forth in Exhibit B that Nova Factor failed to meet in the previous calendar quarter, the relevant discount amount for a failure to meet such standard shall be deducted from the Base Discount for the current calendar quarter, up to a maximum deduction of * percentage * (*%) ("Reduced Performance Standard"). For each Incentive Standard set forth in Exhibit B that Nova Factor failed to meet in the previous calendar quarter, the relevant discount amount for a failure to meet such standard shall be deducted from the Base Discount for the current calendar quarter, up to a maximum deduction of * percentage * (*%), for a maximum total deduction under this Section 2.2(b) of * percentage * (*%) in the aggregate. The maximum combined Base Discount, additional Performance Standard discount and additional Incentive Standard discount shall not exceed *% in any calendar quarter through December 31, 1998, and shall not exceed *% in any calendar quarter from January 1, 1999 through termination or expiration of this Agreement.