Hurdle Condition definition
Examples of Hurdle Condition in a sentence
Notwithstanding Sections 3.1(b)(iii) and 3.1(b)(iv) above, if, after receipt of all Distributions pursuant to previous clauses of Sections 3.1(b) above, the IRR Hurdle Condition has then not yet been satisfied, then all further Distributions shall be made in accordance with the percentages set out in Section 3.1(b)(ii) until such time as the IRR Hurdle Condition has been satisfied, at which point the Distributions shall then be made in accordance with Section 3.1(b)(iii) or 3.1(b)(iv), as applicable.
For avoidance of doubt, once the IRR Hurdle Condition is first satisfied, it shall be deemed satisfied for all purposes at all times thereafter.
First Vesting Tranche 1/3 -3.0% -1.5% 0.5% December 31, 2021 Second Vesting Tranche 1/3 -1.0% 0.5% 2.0% December 31, 2022 Third Vesting Tranche 1/3 0.5% 2.0% 3.5% December 31, 2023 The Revenue Hurdle Condition will be satisfied at the Threshold, Target, or Maximum level if the Company’s revenue for the fiscal year that ends on the applicable Vesting Date increases by the percentage set forth in the table above over the Company’s revenue for the immediate prior fiscal year.
However, if the Net Return due under its Performance Fee is insufficient to satisfy the Hurdle Condition and provide the Fund Manager with the full amount due under its Performance Fee, then the Fund Manager will receive a lesser amount equal to all Return Amounts in excess of what is returned to the Investor to satisfy the Hurdle Condition, plus VAT thereon.