Cumulative Adjusted EBITDA Clause Samples
The 'Cumulative Adjusted EBITDA' clause defines how the total adjusted earnings before interest, taxes, depreciation, and amortization are calculated over a specified period, typically for the purposes of financial covenants or performance targets in agreements. This clause outlines the method for aggregating adjusted EBITDA figures from multiple reporting periods, often specifying adjustments for non-recurring items or extraordinary expenses to present a normalized measure of profitability. Its core practical function is to provide a consistent and fair metric for evaluating a company's financial performance over time, which is crucial for determining compliance with financial obligations or triggering certain contractual rights.
Cumulative Adjusted EBITDA. The Cumulative Adjusted EBITDA attainment level shall be determined as follows: Threshold Level: $____ Target Level: $____ Maximum Level: $____ Cumulative Adjusted EBITDA shall be weighted eighty percent (80%) in the calculation of the Final Value and shall contribute to the Final Value as follows: Threshold $____ 50% $40 Target $____ 100% $80 Maximum $____ 200% $160 Relative TSR. The Total Shareholder Return of the Company and of the Comparison Companies shall be calculated and certified by the Committee. The percentile ranking of the Company’s Total Shareholder Return as compared to the Total Shareholder Return of each Comparison Company shall determine the Final Value for relative TSR as follows: Threshold Level: 30th Percentile Target Level: 50th Percentile Maximum Level: Above 90th Percentile If, during the Performance Period, any Comparison Company declares bankruptcy or initiates (or becomes subject to) a similar proceeding as a debtor due to insolvency, then, for the purposes of ranking the Comparison Companies and the Company, such Comparison Company shall be ranked last. If, during the Performance Period, any Comparison Company is party to a merger, acquisition Exhibit 10.1 Page 8 or disposition and such event, in the Committee’s determination, has significantly altered the Comparison Company, then the Committee may in its discretion remove the Comparison Company from the relative TSR calculation; provided, however, that no additional company shall be substituted. Regardless of the actual Final Value determined in accordance with this Schedule I, if the Company’s Total Shareholder Return during the Performance Period is negative, the relative TSR shall not exceed the target level. Relative TSR shall be weighted twenty percent (20%) in the calculation of the Final Value and shall contribute to the Final Value as follows: Threshold 30th percentile 50% $10 Target 50th percentile 100% $20 Maximum Above 90th percentile 200% $40
Cumulative Adjusted EBITDA. Maintain at all times, to be tested as of the last day of each calendar quarter, Adjusted EBITDA, measured cumulatively from and after April 1, 2014, of at least (i) $250,000.00 as of and for the period ending December 31, 2014, (ii) ($1,500,000.00) as of and for the period ending March 31, 2015 and (iii) ($2,000,000.00) as of and for the period ending June 30, 2015.
Cumulative Adjusted EBITDA. The Cumulative Adjusted EBITDA attainment level shall be determined as follows: Threshold Level: $____ million Target Level: $____ million Maximum Level: $____ million Cumulative Adjusted EBITDA shall be weighted seventy percent (70%) in the calculation of the Final Value and shall contribute to the Final Value as follows: Threshold $____ million 50% $35 Target $____ million 100% $70 Maximum $____ million 200% $140