Common use of Performance Based Compensation Clause in Contracts

Performance Based Compensation. If the Compensation is “performance-based compensation based on services performed over a period of at least 12 months” (within the meaning of Code §409A(a)(4)(B)(iii)), the enrollment period must end at least six months before the end of the performance period.

Performance Based Compensation. If the Compensation is “performance-based compensation based on services performed over a period of at least 12 months” (within the meaning of Code §Section 409A(a)(4)(B)(iii)), the enrollment period must end at least six months before the end of the performance period.