Catch-Up Provision Sample Clauses
A Catch-Up Provision is a contractual clause designed to allow a party, often an investor or beneficiary, to receive additional benefits or payments to bring them in line with a predetermined entitlement or benchmark. In practice, this provision is commonly used in investment funds or profit-sharing arrangements, where, after certain thresholds or preferred returns are met by one party, the other party is allowed to "catch up" by receiving a larger share of subsequent distributions until parity is achieved. The core function of a Catch-Up Provision is to ensure fairness and balance in the allocation of returns or benefits, addressing potential disparities that may arise during the distribution process.
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Catch-Up Provision. If, after applying the above provisions, the number of units actually under lease on December 1st of the immediately prior calendar year exceeds the Baseline Renewal Number for the new calendar year, then the Baseline Renewal Number for the new calendar year shall become the number of units actually under lease on December 1st of the immediately prior calendar year; provided, however, that the Baseline Renewal Number shall never go above the sum total of the Renewal Unit Numbers for all prior years, not to exceed 2600 units.
Catch-Up Provision. If the Target EBITDA is not met in a given Fiscal Year (each such year, a “Missed Year”), the unvested portion of the Ordinary Performance Units eligible to vest in the Missed Year (the “Missed Units”) will remain eligible to vest in one or more subsequent Fiscal Years, as described in this Section (2)(b)(i)(D). If the vested portion of the Ordinary Performance Units in a Fiscal Year (including the portion of the Fiscal Year during which the Sale of the Partnership occurs) following any Missed Year exceeds the vested portion of the Ordinary Performance Units in any prior Missed Year(s) (such subsequent year, a “Made Year”), the Missed Units will vest such that the total vested percentage of Ordinary Performance Units attributable to the Missed Year shall equal the vested percentage of Ordinary Performance Units attributable to the Made Year. By way of example, if 12.5% of the Ordinary Performance Units vest in the year ending December 31, 2018 and 25% of the Ordinary Performance Units vest in the year ending December 31, 2019, the Ordinary Performance Units attributable to the December 31, 2018 year will be fully vested.
Catch-Up Provision. Notwithstanding anything to the contrary in Section 1(c)(i) above, if as of the end of any month that the Working Capital Loan Coverage Ratio is less than 1.0 to 1.0, and if as of such date of determination no Event of Default has occurred and is continuing, then Borrowers may, without penalty, delay prepaying the Loans as required by Section 1(c)(i) above for up to 30 days after the date on which the related Borrowing Base Certificate was or should have been delivered. If as of the end of such 30-day period the Borrowing Base has not increased in a sufficient amount to restore compliance with the Working Capital Loan Coverage Ratio, then pursuant to Section 1(c)(i) above Borrowers shall immediately prepay, in cash, outstanding principal of Working Capital Loans in an amount necessary to restore compliance with the Working Capital Loan Coverage Ratio as of the end of the most recent month-end. Such mandatory principal prepayments shall be applied to the most remote installments of such Loans so that the dollar amounts of previously scheduled monthly payments remains unchanged and the outstanding Loans are repaid sooner.