Common use of Performance Threshold Clause in Contracts

Performance Threshold. (a) For purposes of this Agreement, the “Performance Threshold” for any year shall be satisfied if the ROE (xx defined below) for that year is greater than the 5 Yr Avg Cost of LT Debt (as defined below) for that year. (b) The “ROE” xxr any year shall be calculated by dividing the Company’s Adjusted Net Income (as defined below) for the year by the Average Equity (as defined below) for the year. Subject to adjustment in accordance with Section 2.2(c) below, the Company’s “Adjusted Net Income” for any year shall be equal to the Company’s net income attributable to common shareholders for the year, as set forth in the audited consolidated statement of income of the Company and its subsidiaries for the year. Subject to adjustment in accordance with Section 2.2(c) below, “Average Equity” for any year shall mean the average of the Company’s total common stock equity as of the last day of the year and the Company’s total common stock equity as of the last day of the prior year, in each case as set forth on the audited consolidated balance sheet of the Company and its subsidiaries as of the applicable date. (c) The following adjustments shall be made in the calculation of ROE, xx applicable:

Performance Threshold. (a) For purposes of this Agreement, the “Performance Threshold” for any year shall be satisfied if the ROE XXX (xx as defined below) for that year is greater than the 5 Yr Avg Cost of LT Debt (as defined below) for that year. (b) The “ROEXXX” xxr for any year shall be calculated by dividing the Company’s Adjusted Net Income (as defined below) for the year by the Average Equity (as defined below) for the year. Subject to adjustment in accordance with Section 2.2(c) below, the Company’s “Adjusted Net Income” for any year shall be equal to the Company’s net income attributable to common shareholders for the year, as set forth in the audited consolidated statement of income of the Company and its subsidiaries for the year. Subject to adjustment in accordance with Section 2.2(c) below, “Average Equity” for any year shall mean the average of the Company’s total common stock equity as of the last day of the year and the Company’s total common stock equity as of the last day of the prior year, in each case as set forth on the audited consolidated balance sheet of the Company and its subsidiaries as of the applicable date. (c) The following adjustments shall be made in the calculation of ROEXXX, xx if applicable: