Contingent Performance Shares Sample Clauses

The Contingent Performance Shares clause defines the conditions under which additional shares may be issued to certain parties based on the achievement of specified performance targets. Typically, this clause outlines the performance metrics—such as revenue milestones, EBITDA thresholds, or other financial or operational goals—that must be met within a set timeframe for the shares to vest or be distributed. By tying share issuance to measurable outcomes, this clause incentivizes performance and aligns the interests of management or key stakeholders with the overall success of the company, while also protecting existing shareholders from unnecessary dilution if targets are not met.
Contingent Performance Shares. (a) As soon as practicable after the Company’s independent auditors have certified the Company’s financial statements for the Award Year, the Committee shall determine for purposes of this Agreement the Company’s (1) Shareholder Value and (2) earnings growth (“EG”) as of the end of the Award Year. The Shareholder Value and EG shall be determined by the Committee in accordance with the terms of the Plan and this Agreement based on financial results reported to shareholders in the Company’s annual reports and shall be subject to adjustment by the Committee for extraordinary events during the Award Year. The Committee shall promptly notify the Grantee of its determination. (b) The Grantee may earn up to 960 Contingent Performance Shares for each Award Year (the “Annual Award”) of the Award Period, as follows: (1) The performance measured for Shareholder Value will be the value of $10,000 invested in the Company stock compared to a Utility Index. If the Company’s performance exceeds the Utility Index, the Grantee will be eligible for the Annual Award. If the value of $10,000 invested for each Award Year does not exceed the Utility Index for the respective Award Year, the Grantee shall not earn any Contingent Performance Shares under this Paragraph (b)(1). (c) The Grantee may earn up to 6,720 Contingent Performance Shares at the end of the Award Period (the “Three-Year Award”) as follows, subject to the restrictions specified in Section 3(a), and further described in Section 2(c)(2) below: (1) The performance measured for earnings growth will be based upon the Company’s Delmarva propane distribution operation generating at least the target level of earnings, before interest expense and income taxes (“target EBIT”), over the Award Period. If the Delmarva propane distribution operation achieves the target EBIT, the Grantee will be eligible for the Three-Year Award. If the target EBIT in the Company’s Delmarva propane distribution operation is not achieved for the Award Period, the Grantee will not be eligible to any Contingent Performance Shares under this Paragraph (c)(1). (2) If the Grantee is eligible to receive the Three-Year Award, but has received Forfeitable Performance Shares for 2006 and/or 2007, the number of Contingent Performance Shares awarded at the end of the Award Period shall equal 6,720 less any Forfeitable Performance Shares received. (d) Contingent Performance Shares that are earned by the Grantee pursuant to this Section 2 shall be issued pro...
View SourceView Similar (15)

Related to Contingent Performance Shares

  • Performance Share Awards On the Performance Share Vesting Date next following the Executive's date of death, the number of Performance Shares that shall become Vested Performance Shares shall be determined by multiplying (a) that number of shares of Company Common Stock subject to the Performance Share Agreement that would have become Vested Performance Shares had no such termination occurred; provided, however, in no case shall the number of Performance Shares that become Vested Performance Shares exceed 100% of the Target Number of Performance Shares set forth in the Performance Share Agreement, by (b) the ratio of the number of full months of the Executive's employment with the Company during the Performance Period (as defined in the Performance Share Agreement) to the number of full months contained in the Performance Period. Vested Common Shares shall be issued in settlement of such Vested Performance Shares on the Settlement Date next following the Executive’s date of death.

  • Performance Share Units The Committee may, in its discretion, grant to Executive performance share units subject to performance vesting conditions (collectively, the “Performance Units”), which shall be subject to restrictions on their sale as set forth in the Plan and an associated Performance Unit Grant Letter.

  • Performance Shares Each Performance Share is a bookkeeping entry that records the equivalent of one Share. Upon the vesting of the Performance Shares as provided in Section 2, the vested Performance Shares will be settled as provided in Section 3.

  • Performance Units Subject to the limitations set forth in paragraph (c) hereof, the Committee may in its discretion grant Performance Units to any Eligible Person and shall evidence such grant in an Award Agreement that is delivered to the Participant which sets forth the terms and conditions of the Award.

  • Performance Share Award If your Award includes a Performance Share Award, and you voluntarily terminate your employment prior to the end of the Performance Period, you will forfeit your entire Performance Share Award.