Common use of Performance Hurdle Clause in Contracts

Performance Hurdle. The “Performance Hurdle” shall be achieved only if total returns to common shareholders equal or exceed [ ]% per annum on a cumulative compounded basis (“Total Return”). Total Return shall be measured annually in accordance with the books and records of the Company at the end of the respective first quarter financial reporting periods of each calendar year coinciding with the applicable Performance Vesting Date (i.e., March 31st of each respective calendar year). Total Return, expressed as a percentage and stated on an annual basis, shall equal the quotient resulting from dividing (A) the sum of (i) total cumulative dividends on Common Stock declared by the Company and having a Common Stock shareholder of record date starting from [ ] and continuing through and including the Performance Vesting Date, plus (ii) the simple average (i.e., the arithmetic mean) of the trading day closing prices (as listed on the New York Stock Exchange) for the Common Stock during the period commencing March 24 of the applicable year, through and including March 31 of the applicable year (the “Performance Vesting Date Share Price”), less (iii) the Base Share Price (as defined below) by (B) the Base Share Price. Solely for purposes of calculating such Total Return, the “Base Share Price” per share of Common Stock shall be equal to the simple average (i.e., the arithmetic mean) of the trading day closing prices (as listed on the New York Stock Exchange) for the Common Stock during the period commencing March 24, 200[ ], through and including March 31, 200[ ] (the “Base Share Price”).