Common use of Bonus Fee Clause in Contracts

Bonus Fee. (a) If the Bonus Fee Conditions are satisfied, then the Hotel Manager is entitled to receive the Bonus Fee, being an amount calculated as follows: A = (B - C) x D where: A is the amount of the Bonus Fee for the Financial Year; B is the Net Income for the Financial Year; C is Preferred Return; and D is 15% per annum. (b) The Bonus Fee rewards the Hotel Manager each Financial Year based on the financial performance of the Hotel. The Bonus Fee is calculated based on the financial statements for the Company each Financial Year. Subject to Item 4 of this Schedule, the Bonus Fee must be calculated and (if applicable) paid within 30 days of the completion of the financial statements or on termination under clause 14.1. (c) The Hotel Manager’s entitlement to the Bonus Fee is conditional upon the following criteria being satisfied: (i) The calculation of the Bonus Fee results in a positive number. (ii) The Investors being entitled to receive the Preferred Return. (iii) Payment by the Company of Base Rent under the terms of the Lease. (iv) The Hotel Manager not being in breach of this Agreement. (d) For the purposes of Item 2 of this Schedule 2, the following terms are defined:

Bonus Fee. (a) If the Bonus Fee Conditions are satisfied, then the Hotel Manager is entitled to receive the Bonus Fee, being an amount calculated as follows: A = (B - – C) x D where: A is the amount of the Bonus Fee for the Financial Year; B is the Net Income for the Financial Year; C is Preferred Return; and D is 15% per annum. (b) The Bonus Fee rewards the Hotel Manager each Financial Year based on the financial performance of the Hotel. The Bonus Fee is calculated based on the financial statements for the Company each Financial Year. Subject to Item 4 of this Schedule, the Bonus Fee must be calculated and (if applicable) paid within 30 days of the completion of the financial statements or on termination under clause 14.1. (c) The Hotel Manager’s entitlement to the Bonus Fee is conditional upon the following criteria being satisfied: (i) The calculation of the Bonus Fee results in a positive number. (ii) The Investors being entitled to receive the Preferred Return. (iii) Payment by the Company of Base Rent under the terms of the Lease. (iv) The Hotel Manager not being in breach of this Agreement. (d) For the purposes of Item 2 of this Schedule 2, the following terms are defined: