Meaning

A key aspiration behind alliance agreements is that-where business-as-usual performance is not sufficient-this contractual model is better at overcoming extreme challenges and achieving breakthrough results or gamebreaking performance. Most alliance agreements include bonuses for breakthrough performance and, in some cases, there are penalties for failing to meet stated goals.

However, the obligation to achieve such results and performance, and the contractual mechanisms for assessing and enforcing this obligation, must be carefully considered, and included in the alliance agreement. A number of issues need to be considered.