Compensation Threshold Sample Clauses
A Compensation Threshold clause sets a minimum amount or level that must be reached before compensation or payment obligations are triggered under a contract. For example, in indemnity or insurance agreements, this clause may require that losses or damages exceed a specified dollar amount before the responsible party is required to pay. Its core practical function is to prevent minor or trivial claims from resulting in compensation, thereby reducing administrative burden and focusing resources on more significant issues.
Compensation Threshold. During the preceding Plan Year (or in the case of a short Plan Year, the immediately preceding 12 month period) the Employee had Compensation in excess of $80,000 (as adjusted for the relevant year by the Commissioner of Internal Revenue at the same time and in the same manner as under Code §415(d), except that the base period is the calendar quarter ending September 30, 1996) and, if the Employer under its Adoption Agreement makes the top-paid group election, was part of the top-paid 20% group of Employees (based on Compensation for the preceding Plan Year).