Performance Compensation Clause Clause Samples

Performance Compensation Clause. (1) If the audited financial indicators of CSFCTECH Technology and UC71 in any year of 2020, 2021 and 2022 fail to meet the provisions of Article 5.2 of this Agreement, the transferee has the right to delay or refuse to pay the remaining transfer consideration, and extend the lock-in period mentioned in Article 5.3 of this Agreement for one year. (2) If the audited financial indicators of CSFCTECH Technology and UC71 in any year of 2020, 2021 and 2022 fail to meet 51% of the total amount of the three years agreed in Article 5.2 of this Agreement, the transferee has the right to obtain performance compensation. The form of compensation is share compensation, that is, the transferors agree that the transferee will buy back the shares of the transferee acquired by transferor 1 and transferor 2 according to Article 4 of this Agreement at a price of 0.001 USD / share. The amount of compensation is calculated as follows: [( promised amount of net profit of performance * 0.51 - amount of actual profit) / promised amount of net profit of performance * 0.51] * 2 * the number of shares paid by the transferee. If the number of all shares held by the transferors is lower than the compensation shares calculated by the above formula, the difference shall be made up by the transferors and the actual controller of the target company in cash. The unit price of the difference shares shall be calculated based on the weighted average price of the share consideration paid by the transferors due to this Agreement.