Catch-up Distributions Sample Clauses
A Catch-Up Distributions clause defines a mechanism in investment agreements, particularly in private equity or partnership contexts, that allows one party—often the general partner—to receive a larger share of distributions after limited partners have received a predetermined return. Typically, once the limited partners have received their preferred return, the general partner is entitled to a catch-up phase where they receive most or all of the subsequent distributions until their agreed-upon share of profits is reached. This clause ensures that profit sharing aligns with the intended economic arrangement, incentivizing the general partner while maintaining fairness for all parties.
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Catch-up Distributions. Second, to the Class B Members, pro-rata in accordance with their Class B Membership Interests until such time as the Class B Members have received aggregate distributions under this Section 6.1.2 equal to the Catch-Up Distribution.
Catch-up Distributions. The Members acknowledge that, because of the timing of distributions and Capital Contributions, Return Threshold 1, Return Threshold 2 or Return Threshold 3 could have been satisfied as of a particular date but such threshold may no longer be satisfied as of a subsequent date. As such, if (i) immediately before any new distribution is made pursuant to Section 5.1(a) or (ii) immediately before the final distribution is made pursuant to Section 9.2(c)(iii), the amounts previously distributed to the holders of Class A Units in respect of the associated Class A Units are insufficient to meet (x) Return Threshold 1, if distributions have previously been made to Class B Members pursuant to Section 5.1(a)(ii), (y) Return Threshold 2, if distributions have previously been made to Class B Members pursuant to Section 5.1(a)(iii) or (z) Return Threshold 3, if distributions have previously been made to Class B Members pursuant to Section 5.1(a)(iv), then the Company shall distribute to the Class A Members (in proportion to their Class Sharing Percentage of Class A Units), the amount of distributions that would otherwise be payable to the Class B Members with respect to their Class B Units pursuant to Section 5.1(a) to the extent necessary (and only to the extent necessary) to cause such Return Threshold 1, Return Threshold 2 or Return Threshold 3, as applicable, to be met; provided, however, that the aggregate amount of distributions that are reallocated to the Class A Members pursuant to clause (i) above shall be limited to the amount of such new distribution that would otherwise be distributed to the Class B Members with respect to their Class B Units pursuant to Section 5.1(a).