Qualified Affiliate Sample Clauses

The "Qualified Affiliate" clause defines which affiliated entities of a party are eligible to participate in or benefit from the agreement. Typically, this clause sets specific criteria—such as ownership thresholds, control requirements, or compliance with certain standards—that an affiliate must meet to be considered "qualified." For example, only subsidiaries wholly owned by the contracting party or those not engaged in competing businesses may be included. The core function of this clause is to ensure that only appropriate and vetted affiliates are granted rights or obligations under the contract, thereby managing risk and maintaining the integrity of the agreement's intended scope.