Incentive Threshold Event definition
Examples of Incentive Threshold Event in a sentence
The “Second Incentive Threshold Event” shall occur as of a Distribution Date if (A) the aggregate distributions made to the Private Owner pursuant to Section 6.6(b)(ii) as of such Distribution Date is equal to or greater than the product of two and one-half (2.5) and the Incentive Threshold Base Amount, and (B) the Incentive Threshold as of such Distribution Date (determined based on the Threshold Increase Amount for the Second Incentive Threshold Event) is equal to zero.
Following the occurrence of the First Incentive Threshold Event and prior to the occurrence of the Second Incentive Threshold Event as described in Section 6.6(b)(iii), the Private Owner shall own thirty-five percent (35%) of the issued and outstanding LLC Interests and the Initial Member shall own sixty-five percent (65%) of such LLC Interests.
For the avoidance of doubt, the effects of any of this Section 4.6(h) and Section 4.6(g) above shall be disregarded for purposes of calculations with respect to the First Incentive Threshold Event and the Second Incentive Threshold Event.
The “First Incentive Threshold Event” shall occur as of a Distribution Date if (A) the aggregate distributions made to the Private Owner pursuant to Section 6.6(b)(ii) as of such Distribution Date is equal to or greater than the product of two (2.0) and the Incentive Threshold Base Amount, and (B) the Incentive Threshold as of such Distribution Date (determined based on the Threshold Increase Amount for the First Incentive Threshold Event) is equal to zero.
Following the occurrence of the Second Incentive Threshold Event, the Private Owner shall own thirty percent (30%) of the issued and outstanding LLC Interests and the Initial Member shall own seventy percent (70%) of such LLC Interests.
For the avoidance of doubt, the effects of any of this Section 4.6(h) and Section 4.6(g) above shall be disregarded for purposes of calculations with respect to the Incentive Threshold Event.
For the avoidance of doubt, distributions to the Members occurring on the Distribution Date on which the Incentive Threshold Event occurs shall, (x) with respect to all distributions up to the amount required for reaching such Incentive Threshold Event, be allocated without regard to the occurrence of such Incentive Threshold Event, and (y) with respect to all remaining distributions on such Distribution Date, be allocated taking into account the occurrence of such Incentive Threshold Event.
Following the occurrence of the Incentive Threshold Event, the Private Owner shall own a thirty percent (30%) limited liability company interest in the Company and the Initial Member shall own a seventy percent (70%) limited liability company interest in the Company.
Following the occurrence of the Incentive Threshold Event, the Private Owner shall own a 40% limited liability company interest in the Company and the Initial Member shall own a 60% limited liability company interest in the Company.
Such Capital Contributions to fund the Working Capital Reserve Account on the Closing Date shall not affect the relative percentage LLC Interests of the Initial Member and the Private Owner (which will only change upon the occurrence of the Incentive Threshold Event).