Example ContractsClausesnegative commitmentsVariants
Negative Commitments
Negative Commitments contract clause examples

If the Company’s reported financial or operating results become subject to a material negative restatement, the Executive Resources Committee may determine that all or a portion of the bonus or bonus units granted to a grantee during the three year period prior to such material restatement, where such grantee was an Executive Officer during all or any portion of such three year period, would not have been granted if the Company’s results as originally published had been equal to the Company’s results as subsequently restated (the “restatement forfeiture bonus or bonus units”). In such event, at the company’s discretion, the restatement bonus or bonus units are forfeited and the company shall make no payment with respect to such restatement forfeiture bonus or bonus units.

Notwithstanding any payment with respect to a cash bonus or bonus units to a grantee, if the Company’s financial results become subject to a material negative restatement, the Executive Resources Committee may determine that all or a portion of such cash bonus or payment with respect to bonus units received by a grantee during the five year period prior to such material restatement, where such cash bonus or bonus units were granted during a calendar year in which such grantee was an Executive Officer, or where such cash payment was received during a calendar year in which such grantee was an Executive Officer, would not have been granted or payable if the Company’s Results as originally published had been equal to the Company’s results as subsequently restated (the “restatement claw back amount”). The Company, at its discretion, may require such grantee to pay to the Company a cash amount equal to the restatement claw back amount.

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