Earnings Threshold Clause Samples

Earnings Threshold. The parties hereby establish a five-year cumulative earnings before long-term interest and income tax ("EBIT") threshold * (the "Threshold"). In the event that the actual five-year cumulative EBIT of the Facilities is greater than the Threshold, the amount over the Threshold shall be distributed equally between the parties. If the actual five-year cumulative EBIT is below the Threshold, Cargill shall pay TAI the difference between the Threshold and the actual five-year cumulative EBIT, less all absorbed losses as described herein. TAI shall absorb fifty percent (50%) of each individual year's loss where the EBIT for the individual year is less than zero. In no event shall the sum of TAI's absorbed losses exceed the total actual five-year cumulative EBIT shortfall from the Threshold. If this Agreement is terminated before the expiration of the Initial Term, or before the expiration of the then current term, the Threshold shall be adjusted on a prorated basis. By way of example, if this Agreement is terminated 3 years 3 months into the Initial Term, the Threshold would be adjusted from * to * .

Earnings Threshold. (a) Except as otherwise agreed in writing by the parties, the parties hereby establish a five (5) year cumulative EBT earnings before taxes (“EBT”) threshold of NINETEEN MILLION AND NO/100 DOLLARS ($19,000,000.00), THREE MILLION EIGHT HUNDRED THOUSAND AND NO/100 DOLLARS ($3,800,000.00) in each Contract Year, as defined in Section 3.2 below (the Threshold”) for the Term of this Agreement, which shall be distributed among the parties following the end of each Contract Year as set forth in Section 3.1(b) and following the end of the Term as set forth in Section 3.1(c). If this Agreement is terminated before the expiration of the Term, the Threshold shall be adjusted on a prorated basis. By way of example, if this Agreement is terminated three years three months into the Term, the Threshold would be adjusted from NINETEEN MILLION AND NO/100 DOLLARS ($19,000,000.00) to TWELVE MILLION THREE HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($12,350,000.00), and the distribution schedule set forth in Section 3.1(b) shall be adjusted accordingly. (b) Pursuant to Section 3.1(a), distribution payments, if any, between Cargill and TAI shall be made at the end of each Contract Year as set forth in this Section 3.1(b). In the event that the annual EBT of the Facilities is greater than THREE MILLION EIGHT HUNDRED THOUSAND AND NO/100 DOLLARS ($3,800,000.00) per Contract Year, any amount in excess of THREE MILLION EIGHT HUNDRED THOUSAND AND NO/100 DOLLARS ($3,800,000.00) shall be distributed equally between the parties. In the event that the actual annual EBT of the Facilities is less than -TWO MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500, 000.00) per Contract Year, Cargill will pay TAI fifty percent (50%) of any shortfall between the actual annual EBT and TWO MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500,000.00), if any, up to a maximum total of FOUR HUNDRED THOUSAND DOLLARS ($400,000.00) per Contract Year. At the end of each Contract Year, TAI shall provide to Cargill an estimate of EBT for the then completed Contract Year by the end of the third business day in June. Payment due to Cargill or TAI shall be made by wire transfer on or before June 30th of each year. (c) At the end of each Contract Year, the parties will conduct a true-up of the distributions and payments for the Contract Years of the Term to date to ensure that any excess over the Threshold of the actual cumulative EBT of the Facilities is shared equally by the parties. Alternatively, if the actual cumulative EB...

Earnings Threshold. The Committee shall annually set earnings thresholds based upon a comparison of actual earnings of the Company for a Plan Year to (i) its forecasted earnings for that Plan Year and (ii) the amount of dividends paid during the Plan Year. No Incentive Awards shall be made by the Committee if 8 Company earnings (adjusted for Extraordinary Items) in a Plan Year are below the threshold levels established for that year. The earnings thresholds for each Plan Year shall be set forth in the Appendix of Annual Performance Criteria.

Earnings Threshold. The restrictive covenants set forth in Sections 7.2(a) and (b) shall apply only in the event that Contractor’s earnings per year from the Company exceed $250,000.00 or the then applicable adjusted earnings threshold established pursuant to RCW 49.62.040, as reported on IRS Form 1099-MISC. For purposes of this Section 7.6, Contractor’s annualized earnings shall be determined as of the date enforcement of the restrictive covenants is sought.

Earnings Threshold. The restrictions contained in Paragraph 2(A)(a) and the Non-Competition Payment described in Paragraph 2(B), and the Non-Solicitation/Interference with Customers and Non-Solicitation/Interference with Suppliers clauses contained in Paragraphs 5 and 6, shall apply and be enforceable only if, at the time of termination of employment with the Company, Employee had been earning: (i) with respect to Paragraph 2 restrictions, an amount of Annualized Cash Compensation equivalent to or greater than the threshold amount to qualify as a Highly Compensated Worker, as the terms Annualized Cash Compensation, Highly Compensated Worker, and Threshold Amount for Highly Compensated Workers are defined in Colorado Revised Statutes Section 8-2-113 or any equivalent Colorado statutory provision that may be in effect at the time of Employee’s termination of employment with the Company; and/or (ii) with respect to Paragraphs 5 and 6 restrictions, 60% of the amount set forth immediately above in paragraph (a)(i) of this Colorado portion of the Appendix.

Earnings Threshold in terms of the BCEA, the earnings threshold is determined from time to time and published in the Government Gazette and regulates that employees earning in excess of the noted threshold, are excluded from Sections 9, 10, 11, 12, 14, 15, 16, 17(2) and 18(3) of the BCEA.

Earnings Threshold. The restrictions contained in Paragraph 2(A)(a) and the Non-Competition Payment described in Paragraph 2(B), and the Non-Solicitation/Interference with Customers and Non-Solicitation/Interference with Suppliers clauses contained in Paragraphs 5 and 6, shall apply and be enforceable only if, at the time of termination of employment with the Company, Employee had been earning: LP CORPORATION By: ______________________________ Its: _______________________________ Date: _____________________________ EMPLOYEE Print Name: _________________________ Signature: _________________________ Date: ________________________________ ________________________________________ (i) with respect to Paragraph 2 restrictions, an amount of Annualized Cash Compensation equivalent to or greater than the threshold amount to qualify as a Highly Compensated Worker, as the terms Annualized Cash Compensation, Highly Compensated Worker, and Threshold Amount for Highly Compensated Workers are defined in Colorado Revised Statutes Section 8-2-113 or any equivalent Colorado statutory provision that may be in effect at the time of Employee’s termination of employment with the Company; and/or (ii) with respect to Paragraphs 5 and 6 restrictions, 60% of the amount set forth immediately above in paragraph (a)(i) of this Colorado portion of the Appendix.

Earnings Threshold