Non-Qualified Extensions Clause Samples
A Non-Qualified Extensions clause defines the conditions under which a contract may be extended beyond its original term without meeting certain predefined qualifications or criteria. Typically, this clause allows one or both parties to prolong the agreement for a specified period, even if performance benchmarks or other requirements have not been fully satisfied. For example, a service contract might be extended for an additional year regardless of whether all deliverables were completed on time. The core function of this clause is to provide flexibility in contract duration, ensuring that parties can continue their relationship when strict adherence to qualifications is impractical or unnecessary.
Non-Qualified Extensions. As provided in this Section 2.7.1, in the event the Qualification Conditions have not been satisfied on or prior to the Construction Qualification Date, Borrowers shall have the option (each, a “Non-Qualified Extension Option”) to extend the term of the Loan beyond the Non-Qualified Initial Maturity Date for two (2) successive terms (each, a “Non-Qualified Extension Term”) of one (1) year each (the Non-Qualified Initial Maturity Date following the exercise of each Non-Qualified Extension Option being the “Non-Qualified Extended Maturity Date”).