Performance Termination Threshold definition
Performance Termination Threshold shall have the meaning ascribed thereto in Schedule 1.
Performance Termination Threshold means an amount equal to eighty percent (80%) of Owner’s Priority.
Performance Termination Threshold means the amount per full year specified in Schedule 1 attached hereto.
Examples of Performance Termination Threshold in a sentence
Operating Profit for each such Fiscal Year is less than the Performance Termination Threshold for such Fiscal Year; provided that, for purposes of this Section 2.02.A.1. only, Operating Profit shall be computed without deducting any Impositions.
Base Fee – 3% of Total Revenue Incentive Management Fee – 20% of Proceeds after Owner’s Priority 12% of Purchase Price Owner will have the right to terminate the management agreement if in any year (after the first “stub” year) the following occurs: (a) Gross Operating Profit is less than the Performance Termination Threshold AND (b) the RevPAR Index is less than 100%.
Manager shall have the right to cure the Performance Termination Threshold within 60 days of the end of the measurement period if failed at it’s option.
It is understood that the word "burden", as used in the preceding sentence, shall encompass not only additional work to be performed by Submanager, but also the adverse effect on the achievement of the Performance Termination Threshold which would be caused by requiring increased services to be provided to the Hotel by third parties and by paying from Gross Revenues any other expenses incurred by Submanager in meeting such additional obligations.
It is understood that the word "burden", as used in the preceding sentence, shall encompass not only additional work to be performed by Manager, but also the adverse effect on the achievement of the Performance Termination Threshold which would be caused by requiring increased services to be provided to the Hotel by third parties and by paying from Gross Revenues any other expenses incurred by Manager and/or Marriott in meeting such additional obligations.
More Definitions of Performance Termination Threshold
Performance Termination Threshold means an amount equal to eighty percent (80%) of the Initial Investment.
Performance Termination Threshold means, with respect to each Fiscal Year, an amount equal to ninety percent (90%) of the Owner’s Priority for such Fiscal Year.
Performance Termination Threshold means the average Operating Profit over the Performance Termination Period; provided, however, that for the purpose of calculating the Performance Termination Threshold, the following adjustments shall be made in calculating the average Operating Profit over the Performance Termination Period: (i) so-called one-time charges in connection with its take-over of the Hotel shall not be included as Deductions, and (ii) costs that would have been incurred during the first six (6) months of the Performance Termination Period had the Hotel been operating in accordance with System Standards (i.e. costs of guest complementaries such as newspapers, front desk staffing and other similar recurring operating costs to the extent not incurred during such six first (6) month period) and management fees in a deemed amount equal to the Base Management Fee (in lieu of any actual management fees) shall be included in Deductions. Within sixty (60) days after the end of the Performance Termination Period, Submanager shall deliver to Primary Manager a statement of the Performance Termination Threshold, and therein shall describe any adjustments made pursuant to subsections (i) and/or (ii) above. Any adjustments made pursuant to subsection (ii) shall be made in good faith by Submanager and shall reflect the costs reasonably incurred at similar hotels managed by Submanager. Commencing as of first day of the fourth (4th) full Fiscal Year during the Term, and for each Fiscal Year thereafter, the Performance Termination Threshold (as originally calculated) applicable to such year shall be adjusted by adding (or subtracting) thereto (or therefrom) an amount equal to the product of (i) 75% of the percentage change in the GDP Deflator from the Effective Date to the date of adjustment, times (ii) the Performance Termination Threshold (as originally calculated).
Performance Termination Threshold means the average Operating Profit over the Performance Termination Period; provided, however, that for the purpose of calculating the Performance Termination Threshold, the following adjustments shall be made in calculating the average Operating Profit over the Performance Termination Period: (i) so-called one-time charges in connection with Manager's or Marriott's take-over of the Hotel shall not be included as Deductions, and (ii) costs that would have been incurred during the first six (6) months of the Performance Termination Period had the Hotel been operating in accordance with System Standards (i.e. costs of guest complementaries such as newspapers, front desk staffing and other similar recurring operating costs to the extent not incurred during such six first (6) month period) shall be included in Deductions. Within sixty (60) days after the end of the Performance Termination Period, Manager shall deliver to Lessee a statement prepared by Marriott of the Performance Termination Threshold, and therein shall describe any adjustments made pursuant to subsections (i) and/or (ii) above. Any adjustments made pursuant to subsection (ii) shall be made in good faith by Marriott as set forth in the Submanagement Agreement and shall reflect the costs reasonably incurred at similar hotels managed by Marriott. Commencing as of first day of the fourth (4th) full Fiscal Year during the Term, and for each Fiscal Year thereafter, the Performance Termination Threshold (as originally calculated) applicable to such year shall be adjusted by adding (or subtracting) thereto (or therefrom) an amount equal to the product of (i) 75% of the percentage change in the GDP Deflator from the Effective Date to the date of adjustment, times (ii) the Performance Termination Threshold (as originally calculated).
Performance Termination Threshold means, with respect to each full --------------------------------- Fiscal Year during the Term of this Agreement, the dollar amount set forth on Exhibit "A-l", plus eight percent (8%) of any Additional Invested Capital expended by Owner pursuant to clause (ii) of the definition of Priority Basis; provided, however, that the aforesaid dollar amount shall be adjusted, as of the tenth (l0th) anniversary of the Effective Date, in an amount equal to seventy- five percent (75%) of the percentage change in the GDP Deflator between the Effective Date and the tenth (l0th) anniversary of the Effective Date; provided that, in no event will the Performance Termination Threshold be lower than it is as of the Effective Date; and provided further, that in calculating the aforesaid change in the GDP Deflator during such period of time, both (i) the two (2) years having the highest annual rates of change in the GDP Deflator during such period, and (ii) the two (2) years having the lowest annual rates of change in the GDP Deflator during such period, shall be ignored, and such percentage change in the GDP Deflator between the Effective Date and the tenth (l0th) anniversary of the Effective Date shall be recalculated, for purposes of this Agreement, using as the rate of change in the GDP Deflator for each of such four (4) excluded years (i.e., those years described in clauses (i) and (ii), above) the average annual rate of change in the GDP Deflator during the non- excluded years; and provided further that, to the extent that certain portions of the Performance Termination Threshold, as of immediately prior to such tenth (l0th) anniversary adjustment, reflect expenditures which qualify as Additional Invested Capital, the aforesaid GDP Deflator adjustment shall be calculated with respect to such portions by using, as the base, not the GDP Deflator as of the Effective Date, but rather the GDP Deflator as of either the date of such expenditure or if construction is involved) the date on which the items in question were substantially completed.
Performance Termination Threshold means an amount equal to One Million Nine Hundred Thirty-Eight Thousand Dollars ($1,938,000) per full Fiscal Year (prorated for any partial Fiscal Year).
Performance Termination Threshold shall have the meaning, with respect to each Property, given such term in the Management Agreement for such Property.