Qualified Performance Clause Samples
The Qualified Performance clause defines the standards or conditions under which a party’s performance under the contract is considered acceptable, even if it does not fully meet the original specifications. Typically, this clause allows for minor deviations or imperfections in the delivered goods or services, provided they do not materially affect the overall purpose or value of the contract. By setting clear boundaries for what constitutes acceptable performance, the clause helps prevent disputes over insignificant defects and ensures that parties are not penalized for trivial shortcomings.
Qualified Performance. Based Awards means Awards intended to qualify as “performance-based compensation” under Section 162(m) of the Code.
Qualified Performance. Notwithstanding Employee’s Continuous Service or Qualified Termination, as applicable, the vesting or forfeiture of the Incentive Award shall be preconditioned on the attainment of the Performance Target at a level that equal or exceeds the Threshold Achievement level for the applicable Performance Period (“Qualified Performance”) as described in Schedule I and determined pursuant to Section 5 below. If Qualified Performance is not attained, then the entire Incentive Award shall be forfeited regardless of whether Employee remains in Continuous Employment throughout the applicable Subject Restricted Period or incurs a Qualified Termination. For the avoidance of doubt, if Qualified Performance is attained at a level that does not equal or exceed the Target Achievement level as described in Schedule I and determined pursuant to Section 5 below, then vesting and payout of the Incentive Award will be limited to the portion of the Incentive Award based on the liner interpolation described in Schedule I.