Performance Pricing Sample Clauses
The Performance Pricing clause establishes a mechanism by which the price or fees paid under a contract are adjusted based on the achievement of specific performance metrics or targets. In practice, this means that if a party meets or exceeds agreed-upon benchmarks—such as delivery times, quality standards, or cost savings—the compensation may increase, while failure to meet these targets could result in reduced payments. This clause incentivizes high performance and aligns the interests of both parties by directly linking payment to measurable outcomes, thereby encouraging efficiency and accountability.
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Performance Pricing. Senior Leverage Ratio < 1.00 Prime plus 1.00% Senior Leverage Ratio > 1.00 but less than 2.00 Prime plus 1.75%
Performance Pricing. The margin applicable to the Prime Rate (the “Prime Rate Margin”) and the margin applicable to the LIBOR Rate (the “LIBOR Rate Margin”) shall be adjusted quarterly and shall he applied on and after the first day of each such fiscal quarter as follows: for any fiscal quarter, as of the first day of each such fiscal quarter: (i) if the Borrower’s EBITDA minus Capital Expenditures for the immediately preceding fiscal quarter is less than Five Million Dollars ($5,000,000), then the Prime Rate Margin for such fiscal quarter shall be 1.50% and the LIBOR Rate Margin for such fiscal quarter shall be 3.75%, and (ii) if the Borrower’s EBITDA minus Capital Expenditures for the immediately preceding fiscal quarter is greater than or equal to Five Million Dollars ($5,000,000), then the Prime Rate Margin for such fiscal quarter shall be 1.00% and the LIBOR Rate Margin for such fiscal quarter shall be 3.25%. Performance Pricing in effect as of January 1, 2009 will be in accordance with clause (i) hereof.”
V. The Loan Modification Agreement shall be amended by deleting the following, appearing in Section 2.5(d) thereof, in its entirety:
Performance Pricing. The Prime Rate Margin and the LIBOR Rate Margin shall be determined as follows: for any fiscal quarter, as of the first day of each such fiscal quarter: (i) if the Leverage Ratio for the immediately preceding four (4) fiscal quarters is less than 1.00:1.00, then the Prime Rate Margin for such fiscal quarter shall be -0.25% and the LIBOR Rate Margin for such fiscal quarter shall be 2.75%, and (ii) if the Leverage Ratio for the immediately preceding four (4) fiscal quarters is equal to or greater than 1.00:1.00, then the Prime Rate Margin for such fiscal quarter shall be 0.25% and the LIBOR Rate Margin for such fiscal quarter shall be 3.25%. The Prime Rate Margin and the LIBOR Rate Margin shall be adjusted quarterly and shall be applied on and after the first day of each such fiscal quarter.” and inserting in lieu thereof the following:
Performance Pricing. Each of the Prime Rate Margin and the LIBOR Rate Margin shall be adjusted quarterly and shall be applied on and after the first day of each such fiscal quarter as follows: for any fiscal quarter, as of the first day of each such fiscal quarter: (i) if the Total Funded Debt Ratio for the immediately preceding fiscal quarter is less than 1.50:1.00, then the Prime Rate Margin for such fiscal quarter shall be 0.00% and the LIBOR Rate Margin for such fiscal quarter shall be 2.25%, and (ii) if the Total Funded Debt Ratio for the immediately preceding fiscal quarter is equal to or greater than 1.50:1.00, then the Prime Rate Margin for such fiscal quarter shall be 0.50% and the LIBOR Rate Margin for such fiscal quarter shall be 2.75%.
Performance Pricing. The Applicable Margin for LIBOR Loans and the Applicable Margin for Base Rate Loans, for any fiscal quarter, shall be the applicable rate per annum set forth in the table below opposite the Total Leverage Ratio determined as of the last day of the immediately preceding fiscal quarter. Pricing Level Total Leverage Ratio Applicable Margin for LIBOR Loans (bps) Applicable Margin for Base Rate Loans 1 Less than 1.00 to 1.00 125.0 25.0 2 Greater than or equal to 1.00 to 1.00 but less than 1.50 to 1.00 150.0 50.0 3 Greater than or equal to 1.50 175.0 75.0 Pricing Level 1 shall apply until delivery of the compliance certificate for the fiscal quarter during which the Funding Date occurs. CALCULATION OF INTEREST AND FEES: Other than calculations in respect of Base Rate Loans (which shall be made on the basis of actual number of days elapsed in a 365/366 day year), all calculations of interest and fees shall be made on the basis of actual number of days elapsed in a 360 day year. COST AND YIELD PROTECTION: Customary for transactions and facilities of this type, substantially in compliance with the Documentation Principles, including, without limitation, in respect of breakage or redeployment costs incurred in connection with prepayments, changes in capital adequacy and capital requirements or their interpretation, changes in circumstances or law (it being acknowledged that (x) the ▇▇▇▇-▇▇▇▇▇ ▇▇▇▇ Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “change in law”, regardless of the date enacted, adopted or issued), illegality, unavailability, reserves without proration or offset and payments free and clear of withholding or other taxes.
Performance Pricing. Notwithstanding anything to the contrary contained herein or in the Loan Agreement, the Funded Debt to Tangible Net Worth Ratio shall be deemed to be greater than 3:50:1 for the purpose of determining the pricing for the LIBOR Base Rate Option, the Base Rate Option and the Commitment Fee until such time as Borrowers have complied with all of the reporting requirements and covenants described herein and in the Loan Agreement (including delivery of the Delayed Financial Statements), and so long as no Event of Default or Unmatured Event of Default has occurred and is continuing under the Loan Documents.
Performance Pricing. The LIBOR and Alternate Base Rate margins for the Revolving Credit Facility and the Tranche A Term Loan Facility will be subject to performance pricing step- downs commencing twelve months from closing , based upon the Borrower's Funded Debt to EBITDA, to be mutually agreed upon.
Performance Pricing. The interest rate will be adjusted based on the advance rate against inventory on Borrower's most recent Borrower's Certificate submitted to Lender. If Advance Rate is 50.00%, a rate of Prime plus 0.25% and/or LIBOR plus 3.00%; if Advance Rate is 45.00%, a rate of Prime even and/or LIBOR plus 2.75%; if Advance Rate of 40.00%, a rate of Prime even and/or LIBOR plus 2.50%; if Advance Rate of 35.00%, a rate of Prime even and/or LIBOR 2.00%.
Performance Pricing. Leverage Ratio (Section 2.3) Required: Less than or equal to 1.00:1.00 3.25 % 1.00 % Greater than 1.00:1.00 3.75 % 1.50 % Actual:
Performance Pricing. Each of the Prime Rate Margin and the LIBOR Rate Margin shall be adjusted quarterly and shall be applied on and after the first day of each such fiscal quarter as follows: for any fiscal quarter, as of the first day of each such fiscal quarter: (i) if the Total Funded Debt Ratio for the immediately preceding fiscal quarter is less than 1.50:1.00, then the Prime Rate Margin for such fiscal quarter shall be 1.00% and the LIBOR Rate Margin for such fiscal quarter shall be 3.25%, and (ii) if the Total Funded Debt Ratio for the immediately preceding fiscal quarter is equal to or greater than 1.50:1.00, then the Prime Rate Margin for such fiscal quarter shall be 1.50% and the LIBOR Rate Margin for such fiscal quarter shall be 3.75%; provided, however, that for the fiscal quarter beginning on April 1, 2009 and thereafter, for any fiscal quarter in which Borrower maintains Liquidity equal to or greater than $20,000,000 for the entire fiscal quarter, the above-listed Prime Rate Margins and LIBOR Margins shall each be reduced by 0.50%."
III. The Loan Modification Agreement shall be amended by deleting the following, appearing in Section 6.2(a)(i) thereof, in its entirety:
(i) as soon as available, and in any event within thirty (30) days after the end of each month, and upon each request for a Credit Extension, a Transaction Report together with such supporting information as Bank may reasonably request;" and inserting in lieu thereof the following:
(i) as soon as available, and in any event within fifteen (15) days after the end of each month, and upon each request for a Credit Extension, a Transaction Report together with such supporting information as Bank may reasonably request;"
IV. The Loan Modification Agreement shall be amended by deleting the following, appearing in Section 6.2(a)(ii) thereof, in its entirety: