Award clause: Copy, customise, and use instantly
Introduction
An award clause outlines the terms under which an award, typically in the form of compensation or recognition, is granted to an individual or entity. This clause is often found in contracts related to performance-based bonuses, settlements, or the outcome of arbitration or legal proceedings. It specifies the criteria, amount, and conditions under which the award will be given, helping to clarify expectations for both parties.
Below are templates for award clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard award clause
This variation applies to a general award for performance or achievements.
[Party Name] agrees to grant an award to [Recipient Name] in recognition of their outstanding performance. The award shall be in the form of [amount or type of award] and will be provided upon the completion of [specific criteria or project]. The recipient will be notified of the award within [X] days of fulfilling the required conditions.
Award clause with bonus payment
This variation applies to an award in the form of a bonus payment.
[Party Name] agrees to provide a bonus payment of [$X] to [Recipient Name] upon the successful completion of [specific task, project, or goal]. The bonus will be paid within [X] days of the completion of the task, contingent upon [Recipient Name] meeting the agreed-upon performance targets.
Award clause with arbitration decision
This variation applies when an award is granted based on the outcome of arbitration.
[Party Name] agrees that, in the event of a dispute, the award granted by the arbitration panel will be binding. The award may include monetary compensation, legal fees, or other remedies as determined by the arbitrator. The final decision will be provided to both parties within [X] days of the arbitration hearing.
Award clause with settlement clause
This variation applies when an award is granted as part of a settlement agreement.
[Party Name] agrees to provide [Recipient Name] with a settlement award of [$X] in full and final settlement of all claims related to [dispute or issue]. The settlement award will be paid within [X] days of signing the settlement agreement and will resolve any outstanding issues between the parties.
Award clause with equity grant
This variation applies when the award is granted in the form of equity.
[Party Name] agrees to grant [Recipient Name] [X] number of shares of stock in the company as an award for exceptional performance. The shares will be issued at the current market value as of the date of the award and will be subject to the terms of the company's equity compensation plan.
Award clause with recognition ceremony
This variation applies when an award includes a public recognition element.
[Party Name] agrees to present [Recipient Name] with an award during the annual recognition ceremony. The award will include a plaque and a certificate of achievement, acknowledging [Recipient Name]'s contributions to [specific project or achievement]. The ceremony will take place on [date] at [location].
Award clause with conditional performance criteria
This variation applies when the award is contingent upon meeting certain performance criteria.
[Party Name] agrees to grant an award to [Recipient Name] in the amount of [$X] upon meeting the following performance criteria: [list specific goals or performance benchmarks]. If the criteria are met within [timeframe], the award will be paid in full within [X] days.
Award clause with payment in installments
This variation applies when the award is paid in multiple installments.
[Party Name] agrees to grant an award to [Recipient Name] of [$X], payable in [X] installments over the course of [time period]. The first installment will be paid within [X] days, with subsequent payments made every [X] months, contingent upon continued satisfactory performance.
Award clause with non-monetary award
This variation applies when the award is non-monetary, such as a trip or gift.
[Party Name] agrees to grant [Recipient Name] a non-monetary award in the form of a [gift, trip, or experience] valued at [$X]. The award will be provided upon completion of [specific task or achievement], and the recipient will be given the opportunity to select their preferred award from a list of options.
Award clause with dispute resolution
This variation applies when the award is linked to resolving a dispute.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] in settlement of the dispute concerning [issue]. The award is contingent upon both parties agreeing to the terms of this settlement and will be paid within [X] days of finalizing the agreement.
Award clause with milestone payment
This variation applies when the award is tied to project milestones.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] upon the successful completion of [milestone, e.g., project phase or deliverable]. The award will be payable within [X] days of [Recipient Name] submitting the final report or deliverable related to the milestone.
Award clause with termination rights
This variation applies when the award is tied to contract termination.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] in the event of the termination of the contract by [Lender/Other Party] for reasons other than breach. The award will be paid within [X] days of the effective date of termination and will be in addition to any other termination benefits.
Award clause with performance review clause
This variation applies when the award is based on a performance review.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] based on the outcome of their annual performance review. If the performance review results in a rating of [outstanding/exceptional], the award will be granted and paid within [X] days of the review completion.
Award clause with specific achievement recognition
This variation applies when the award is for a specific achievement or accomplishment.
[Party Name] agrees to award [Recipient Name] [$X] in recognition of their exceptional achievement in [specific task, goal, or project]. The award will be presented at a formal ceremony, and [Recipient Name] will be publicly acknowledged for their contributions.
Award clause with incentive program
This variation applies when the award is part of an incentive program.
[Party Name] agrees to include [Recipient Name] in the incentive program, offering an award of [$X] upon meeting the established criteria of the program. These criteria may include achieving sales targets, meeting production goals, or other performance metrics.
Award clause with contribution-based recognition
This variation applies when the award is based on individual or team contributions.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] in recognition of their significant contributions to [project or initiative]. The award will be presented upon successful completion of [specific task] and will recognize both individual and team efforts.
Award clause with no contest
This variation applies when the award is provided without contest.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] without the requirement of competition or contest. The award will be provided based on [Recipient Name]'s consistent performance in [area], as determined by the company's leadership team.
Award clause with eligibility requirement
This variation applies when the award is contingent on meeting eligibility requirements.
[Party Name] agrees to grant an award of [$X] to employees who meet the eligibility criteria for the annual bonus, including [requirements such as tenure, performance, or achievement]. The award will be distributed based on the final determination of eligibility by [date].
Award clause with agreement to participation
This variation applies when the award is based on agreeing to participate in a program.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] upon completing participation in the [program or initiative]. The award is contingent upon meeting the participation requirements as set forth in the program guidelines, and the recipient will receive the award once the program is completed.
Award clause with voluntary participation
This variation applies when the award is based on voluntary participation.
[Party Name] agrees to offer an award of [$X] to [Recipient Name] for voluntarily participating in [voluntary program or initiative]. The award will be granted based on completion of the program, and [Recipient Name] will be notified within [X] days of program conclusion.
Award clause with award for improvement
This variation applies when the award is given for improving performance.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] for demonstrating significant improvement in [performance area] over the course of [time period]. The award will be based on objective metrics of improvement and will be awarded upon completion of the review period.
Award clause with cumulative achievement
This variation applies when the award is granted for cumulative achievements.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] in recognition of cumulative achievements over [X] years. The award will be provided upon reaching the milestone and will acknowledge [Recipient Name]'s overall contributions during the period.
Award clause with matching contributions
This variation applies when the award matches contributions made.
[Party Name] agrees to match [Recipient Name]’s contributions to [charitable organization or cause] up to [$X] as an award for their efforts. The matching amount will be paid directly to the organization or cause, and the evidence of the contribution will be submitted to [Lender Name].
Award clause with a fixed amount
This variation applies when the award is a fixed amount.
[Party Name] agrees to grant an award of a fixed amount of [$X] to [Recipient Name] for achieving [specific goal or milestone]. The award is a one-time fixed amount and will be paid upon verification of the achievement.
Award clause with payment after tax consideration
This variation applies when the award is paid after taxes are considered.
[Party Name] agrees to grant an award of [$X] to [Recipient Name], with the final payment adjusted for taxes as required by law. The net award, after tax deductions, will be provided to [Recipient Name] within [X] days of the award decision.
Award clause with milestone achievement
This variation applies when the award is tied to achieving a milestone.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] upon achieving the following milestone: [specific milestone or project goal]. The award will be presented within [X] days of verification of the milestone achievement.
Award clause with participation incentive
This variation applies when the award is an incentive for participation.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] for participating in the [program, competition, or event]. The award will be provided after the recipient completes the program or event, and the amount will be paid within [X] days of completion.
Award clause with long-term service recognition
This variation applies when the award is for long-term service.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] in recognition of [X] years of continuous service with the company. The award will be presented at the annual service recognition event and will be payable within [X] days.
Award clause with contractual performance
This variation applies when the award is tied to performance under a contract.
[Party Name] agrees to provide an award to [Recipient Name] of [$X] for successfully completing the contractual obligations outlined in [specific contract]. The award will be paid within [X] days after the contract terms have been fulfilled and verified.
Award clause with competitive performance
This variation applies when the award is based on competitive performance.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] for securing first place in the [specific competition or challenge]. The award will be granted immediately after the competition results are confirmed.
Award clause with team achievement
This variation applies when the award is given for team-based achievements.
[Party Name] agrees to provide an award of [$X] to the team led by [Recipient Name] for successfully completing [team project or initiative]. The award will be distributed equally among team members within [X] days of project completion.
Award clause with objective metrics
This variation applies when the award is based on meeting specific, objective metrics.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] based on meeting or exceeding the following performance metrics: [list of metrics]. The award will be paid after the review of performance results at the end of the evaluation period.
Award clause with goal-oriented incentive
This variation applies when the award is tied to achieving specific goals.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] upon the successful completion of the following goals: [specific goals]. The award will be issued once the goals are validated by the company within [X] days of goal completion.
Award clause with project completion
This variation applies when the award is granted for completing a specific project.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] for completing the [specific project] on time and within budget. The award will be issued within [X] days of project delivery and final acceptance by the company.
Award clause with targeted sales achievement
This variation applies when the award is based on meeting sales targets.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] upon achieving [specific sales target], as outlined in the sales incentive plan. The award will be paid within [X] days of meeting the target, with verification from the sales department.
Award clause with legal settlement
This variation applies when the award is part of a legal settlement.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] in full settlement of all claims arising from [dispute or legal matter]. The award will be paid within [X] days of finalizing the settlement agreement.
Award clause with bonus program
This variation applies when the award is part of a bonus program.
[Party Name] agrees to provide a bonus award of [$X] to [Recipient Name] for achieving [specific performance outcome]. The bonus will be paid within [X] days as part of the company’s annual bonus program.
Award clause with external recognition
This variation applies when the award is linked to external recognition.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] in recognition of their receipt of an external award, such as [name of award]. The award will be presented within [X] days of the external recognition being awarded.
Award clause with subject-to-approval condition
This variation applies when the award is subject to approval.
[Party Name] agrees to grant an award of [$X] to [Recipient Name], contingent upon the approval of [specific body, committee, or individual]. The award will be paid within [X] days after receiving the necessary approval.
Award clause with eligibility criteria
This variation applies when the award is contingent upon meeting specific eligibility criteria.
[Party Name] agrees to provide an award of [$X] to eligible participants who meet the following criteria: [list of eligibility criteria]. The award will be provided within [X] days of confirming eligibility at the end of the program or event.
Award clause with milestone payment adjustments
This variation applies when the award is paid based on achieving various milestones.
[Party Name] agrees to provide an award of [$X], paid in installments upon the completion of each milestone outlined in the project plan. The first installment will be paid upon completion of [milestone], and subsequent payments will be made upon completion of the remaining milestones.
Award clause with a performance-based increase
This variation applies when the award amount increases based on performance.
[Party Name] agrees to grant an initial award of [$X] to [Recipient Name], with the amount subject to increase based on performance. If [Recipient Name] exceeds the specified targets, the award may be increased by up to [$Y], depending on the degree of performance over the baseline.
Award clause with no claim condition
This variation applies when the award is contingent upon not making claims.
[Party Name] agrees to grant an award of [$X] to [Recipient Name], contingent upon [Recipient Name] agreeing not to make any claims or demands in connection with [specific action or event]. The award will be paid within [X] days of receiving the signed agreement.
Award clause with non-compete condition
This variation applies when the award is tied to compliance with a non-compete agreement.
[Party Name] agrees to grant an award of [$X] to [Recipient Name], subject to the recipient’s compliance with the terms of the non-compete agreement. If [Recipient Name] breaches the agreement, the award will be forfeited and no payment will be made.
Award clause with outcome-based reward
This variation applies when the award is based on a specific outcome.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] upon achieving a specified outcome in [specific task or project]. The outcome must be verified by [Party Name] within [X] days to confirm the recipient’s eligibility for the award.
Award clause with project contribution clause
This variation applies when the award is based on contributions to a project.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] for their exceptional contributions to [specific project]. The award will be presented at the project’s completion, subject to final evaluation of [Recipient Name]’s contributions to the project.
Award clause with annual performance review
This variation applies when the award is based on annual performance reviews.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] as part of their annual performance review. The award will be granted based on the outcome of the performance review, which will evaluate [Recipient Name]’s achievements and contributions during the review period.
Award clause with external certification
This variation applies when the award is contingent upon external certification.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] upon receiving certification from [certifying organization]. The award will be paid once the recipient has successfully completed the certification process and provided proof of certification.
Award clause with retention incentive
This variation applies when the award is a retention incentive.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] as a retention incentive. The award will be paid upon [Recipient Name] completing [X] years of service with the company, with the award being paid in full at the end of the retention period.
Award clause with one-time achievement reward
This variation applies when the award is granted for a one-time achievement.
[Party Name] agrees to grant a one-time award of [$X] to [Recipient Name] for achieving [specific one-time achievement]. The award will be paid within [X] days of the achievement being verified by [Party Name].
Award clause with project goal bonus
This variation applies when the award is a bonus for achieving a project goal.
[Party Name] agrees to provide a bonus award of [$X] to [Recipient Name] for successfully meeting or exceeding the specific project goals outlined in [Project Name]. The award will be paid within [X] days after the completion of the project and final evaluation.
Award clause with team-based incentive
This variation applies when the award is given to a team.
[Party Name] agrees to provide an award of [$X] to the team of [employees or individuals] led by [Recipient Name] for achieving the team goal of [specific achievement]. The award will be divided equally among team members and paid within [X] days of the goal being met.
Award clause with unexpected performance recognition
This variation applies when the award is given for unexpected performance.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] for unexpectedly exceeding expectations in [specific task or project]. The award is granted in recognition of exceptional performance that was not initially anticipated.
Award clause with outcome-based bonus
This variation applies when the award is given for achieving specific outcomes.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] for achieving the specified outcomes outlined in [specific agreement]. The award will be paid within [X] days of verification of the successful outcome completion.
Award clause with performance improvement reward
This variation applies when the award is given for improvement in performance.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] for demonstrating a significant improvement in performance as measured by [specific performance metrics]. The award will be presented following a performance review period of [X] months.
Award clause with compliance achievement
This variation applies when the award is based on achieving compliance with certain standards.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] for achieving full compliance with [specific regulation, policy, or standard]. The award will be paid upon verification of compliance by [relevant authority or internal review team].
Award clause with exemplary conduct reward
This variation applies when the award is based on exemplary conduct.
[Party Name] agrees to award [$X] to [Recipient Name] for exhibiting exemplary conduct in accordance with the company’s values and ethical standards. The award will be granted at the next quarterly meeting upon approval by senior management.
Award clause with milestone completion bonus
This variation applies when the award is linked to completing a specific milestone.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] for the successful completion of [specific milestone], as outlined in [specific project or agreement]. The award will be paid within [X] days of the milestone’s completion.
Award clause with strategic initiative success reward
This variation applies when the award is tied to the success of a strategic initiative.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] for the successful completion and implementation of a strategic initiative outlined in [specific strategy document]. The award will be paid upon successful execution and final reporting.
Award clause with customer satisfaction achievement
This variation applies when the award is based on customer satisfaction metrics.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] for achieving an exceptional customer satisfaction score, measured by [specific method, e.g., survey results or customer feedback]. The award will be presented after the completion of the customer satisfaction review period.
Award clause with innovative solution reward
This variation applies when the award is based on innovation.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] for developing and implementing an innovative solution that improved [specific process or outcome]. The award will be paid following a review of the solution’s impact and effectiveness.
Award clause with team collaboration recognition
This variation applies when the award is given to a team for collaboration.
[Party Name] agrees to provide an award of [$X] to the team for exceptional collaboration and teamwork during [specific project or task]. The award will be divided equally among team members and distributed at the project’s conclusion.
Award clause with annual goal accomplishment
This variation applies when the award is granted for meeting annual goals.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] for successfully achieving the set annual goals as specified in the performance review. The award will be presented at the end of the fiscal year.
Award clause with leadership excellence recognition
This variation applies when the award is given for leadership excellence.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] for demonstrating outstanding leadership skills in [specific team, project, or initiative]. The award will be presented at the annual leadership conference.
Award clause with sustainable initiative achievement
This variation applies when the award is tied to sustainable initiatives.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] for achieving measurable results in sustainability initiatives, such as [specific sustainability goals]. The award will be granted upon meeting the sustainability targets outlined in [specific plan or initiative].
Award clause with performance-based commission
This variation applies when the award is given as a performance-based commission.
[Party Name] agrees to grant a commission award of [$X] to [Recipient Name] for achieving [specific sales or business performance target]. The commission will be paid based on the agreed-upon percentage of performance exceeding the target.
Award clause with employee recognition
This variation applies when the award is for employee recognition.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] in recognition of their exceptional contributions to the company. The award will be presented during the annual employee recognition event.
Award clause with volunteer contribution recognition
This variation applies when the award is granted for volunteer contributions.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] for their dedication and contributions to the community through volunteer efforts. The award will be presented at the volunteer appreciation ceremony.
Award clause with settlement-based reward
This variation applies when the award is part of a settlement.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] as part of the settlement for [specific dispute or legal matter]. The award will be paid within [X] days following the finalization of the settlement agreement.
Award clause with sales achievement recognition
This variation applies when the award is based on sales performance.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] for achieving the highest sales figures in [specific period]. The award will be paid upon the close of the quarterly sales cycle.
Award clause with project efficiency recognition
This variation applies when the award is based on the efficiency of completing a project.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] for completing [specific project] ahead of schedule and under budget. The award will be paid within [X] days of the project's successful conclusion.
Award clause with conflict resolution success
This variation applies when the award is given for resolving conflicts.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] for successfully resolving conflicts related to [specific matter or project]. The award will be granted upon the successful resolution and after feedback from involved parties.
Award clause with employee development success
This variation applies when the award is tied to employee development initiatives.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] for successfully completing an employee development program. The award will be paid within [X] days following the completion and certification of the program.
Award clause with social responsibility contribution
This variation applies when the award is based on social responsibility initiatives.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] for their contributions to the company's corporate social responsibility (CSR) initiatives. The award will be granted after the successful completion of the CSR project.
Award clause with risk management achievement
This variation applies when the award is given for managing risks effectively.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] for demonstrating exceptional skill in managing risks associated with [specific project or operation]. The award will be paid upon completion of the risk assessment and management review.
Award clause with cost-saving achievement
This variation applies when the award is granted for achieving cost savings.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] for identifying and implementing cost-saving measures that resulted in savings of [$Y]. The award will be provided within [X] days of the cost savings being verified.
Award clause with strategic goal attainment
This variation applies when the award is given for achieving strategic goals.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] for successfully meeting or exceeding the strategic goals outlined in the company’s strategic plan. The award will be presented after an internal review of goal achievement.
Award clause with operational efficiency recognition
This variation applies when the award is tied to operational efficiency.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] for increasing operational efficiency through process improvements or cost reductions. The award will be paid after a comprehensive review of operational improvements.
Award clause with external partnership success
This variation applies when the award is given for successful external partnerships.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] for the successful establishment and management of a key partnership with [external party]. The award will be paid within [X] days after the partnership is formalized and fully operational.
Award clause with diversity and inclusion achievement
This variation applies when the award is tied to diversity and inclusion efforts.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] for promoting and achieving significant diversity and inclusion goals within the company. The award will be presented at the annual diversity and inclusion conference.
Award clause with risk mitigation reward
This variation applies when the award is given for mitigating risks.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] for successfully identifying and mitigating significant risks in [specific project or operation]. The award will be paid after the effectiveness of the risk mitigation strategy is confirmed.
Award clause with timely delivery recognition
This variation applies when the award is tied to the timely delivery of projects or tasks.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] for delivering [specific project or task] on time, ahead of schedule, or under budget. The award will be presented within [X] days following the delivery of the project or task.
Award clause with high performance in innovation
This variation applies when the award is for high performance in innovation.
[Party Name] agrees to grant an award of [$X] to [Recipient Name] for creating or implementing an innovative solution that significantly contributed to [specific outcome]. The award will be provided after the impact of the innovation is assessed and confirmed.
Award clause with exemplary customer feedback
This variation applies when the award is based on customer feedback.
[Party Name] agrees to provide an award of [$X] to [Recipient Name] in recognition of receiving exceptional customer feedback for their work on [specific task or service]. The award will be presented upon the receipt of positive customer surveys or reviews.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.