Hurdle Clause Samples
A Hurdle clause sets a minimum threshold that must be met before certain benefits, such as profit sharing or performance fees, are distributed. In investment agreements, for example, a hurdle rate may require that investors receive a specified minimum return before fund managers are entitled to a share of profits. This mechanism ensures that managers or other parties are only rewarded after basic expectations are met, aligning interests and protecting parties from underperformance.
Hurdle. The Fund’s Hurdle is set forth in Schedule B. Benchmark. The Fund’s initial Benchmark is set forth in Schedule B. If the Trustees determine that another appropriate index of securities prices should be substituted as the Benchmark, the Trustees may determine, with the consent of the Manager, to use such other appropriate index of securities prices for purposes of this Schedule C (the “Replacement Benchmark”) without shareholder approval, unless shareholder approval of the change is otherwise required by applicable law. Any Replacement Benchmark will be applied prospectively to determine the amount of the Performance Adjustment. The Benchmark will continue to be used to determine the amount of the Performance Adjustment for that part of the Performance Period prior to the effective date of the Replacement Benchmark.
Hurdle. The Hurdle is defined as total return of 1 month LIBOR for the Calculation Period + (235 basis points/12)* starting net asset value of the Managed Account assets as of the first day of the Calculation Period. The Hurdle is a USD amount and shall be calculated separately for each Managed Account that falls under this Schedule I-C. In the event of contributions to or withdrawals from the Managed Account assets, the Hurdle shall be pro-rated with respect to the Managed Account assets held for less than a full calendar month. Note: The total return of 1 month LIBOR can be obtained using the Bloomberg Ticker LUS1.
Hurdle. The Hurdle for any period is the average monthly change in CPI Urban Consumers Index (as reported by the U.S Bureau of Labor Statistics in the month in which the Performance Based Fee for such period is calculated and paid) in the 36 months ending in the month containing the end date of the period, multiplied by 12, with the result of the calculation rounded to the nearest tenth of a percent, plus the Spread. The Fund and the Manager may determine this method for calculating the Hurdle has become unsatisfactory, in which case it may be amended in accordance with section 11 of the Agreement.
Hurdle. The Company will be eligible to drawdown funds from tranches two and three of the MDC Commitment only if MDC has earned a minimum annualized rate of return of 35% per annum on its funded investment. MDC's annualized rate of return will be calculated on a quarterly basis using an IRR calculation. The IRR calculation will be based on cash outflows equal to MDC's initial and follow-on investments in the Company and an ending cash inflow equal to the "MDC Equity Value" upon liquidation of its investment in the Company. The "MDC Equity Value" will be calculated by multiplying MDC's fully diluted ownership (assuming full conversion of convertible securities that MDC has funded, excluding the warrants related to the remaining MDC Commitment) of the Company (at the end of each fiscal year) by the "Total Equity Value of the Company". The Total Equity Value of the Company will be calculated by multiplying the Company's Annualized EBITDA (as defined below) by five (5.0) and subtracting the net debt (total indebtedness less cash and cash equivalents) on the Company's balance sheet. For fiscal 2001, the Company's Annualized EBITDA shall be $3.582 million (or the board approved budgeted EBITDA for fiscal 2001) plus any positive EBITDA variance to budget for the year to date period or less any negative EBITDA variance -- to budget for the year to date period. For fiscal 2002 and any subsequent fiscal year, the Company's Annualized EBITDA shall be the Company's actual EBITDA calculated on a last twelve months trailing basis.
Hurdle. The Hurdle for any period is the average monthly change in CPI Urban Consumers Index (as reported by the U.S Bureau of Labor Statistics in the month in which the Performance Based Fee for such period is calculated and paid) in the 36 months ending in the month containing the end date of the period, multiplied by 12, with the result of the calculation rounded to the nearest tenth of a percent, plus the Spread. The Fund and the Manager may determine this method for calculating the Hurdle has become unsatisfactory, in which case it may be amended in accordance with section 11 of the Agreement. Mission Value Schedule I
Hurdle. The Hurdle shall be a blended rate, calculated pro-rata over the same 36 month period to which each Performance Based Fee relates. With respect to any portion of the 36 month period falling prior to the Amendment Date, the hurdle is the average monthly change in CPI Urban Consumers Index (as reported by the U.S. Bureau of Labor Statistics) over that period, multiplied by 12, with the result of the calculation rounded to the nearest tenth of a percent, plus 4.00%. With respect to any portion of the 36 month period falling after the Amendment Date, if (a) Mission Value Assets are less than or equal to $500,000,000, then the Hurdle is 4.5% or (b)if Mission Value Assets are greater than $500,000,000, then the Hurdle is 5.5%.
Hurdle. If no Performance Based Fee was paid with respect to the Managed Assets for any previous Calculation Period, then the Hurdle shall be an amount equal to the product of (A) the net asset value of the Managed Assets as of the first day of the first Calculation Period multiplied by (B) a fraction, (1) the numerator of which is equal to the ▇▇▇▇▇▇▇ 3000 Total Return Index as of the close of business on the last day of the Calculation Period and (2) the denominator of which is equal to the ▇▇▇▇▇▇▇ 3000 Index as of the close of business on the first day of the first Calculation Period. If a Performance Based Fee was paid with respect to the Managed Assets for a previous Calculation Period, then an amount equal to the product of (A) the net asset value of such Managed Assets as of the first day of the Calculation Period immediately following the most recent Calculation Period for which a Performance Based Fee was paid out of the Managed Assets multiplied by (B) a fraction, (1) the numerator of which is equal to the ▇▇▇▇▇▇▇ 3000 Total Return Index as of the close of business on the last day of the current Calculation Period and (2) the denominator of which is equal to the ▇▇▇▇▇▇▇ 3000 Total Return Index as of the close of the most recent Calculation Period for which a Performance Based Fee was paid out of the Managed Assets. In the event of a partial withdrawal, the Hurdle will be reduced pro-rata and, with respect to the Legacy Assets, the net asset value of the Managed Assets and the R3000 Index shall be adjusted as appropriate. Note: The ▇▇▇▇▇▇▇ 3000 Total Return Index can be accessed via Bloomberg screen RU30INTR Index.