Required IRR definition

Required IRR means an amount equal to a twelve percent (12%) per annum return on Invested Capital (as allocated to Phase I pursuant to Section 1.5, above) from the time of the applicable investment of each component of Invested Capital, which amount shall be reduced by (and at the time that) (i) any “Base Rent” is actually received from EA under the Lease or any other net income is received as to Phase I, or (ii) that any other fees, costs or expenses are reimbursed to Playa or a Playa Affiliate by EA under the Lease or any other reimbursements are received by Playa or a Playa Affiliate as to Phase I.

Split View

AI-Powered Contracts

Draft, Review & Redline at the Speed of AI

Get StartedSchedule a Demo

Required IRR means an Internal Rate of Return equal to twenty percent (20%) per annum.

Required IRR means the amount actually received in cash in respect of the Notes, as of any date of determination, which would provide the Investors with an internal rate of return on the Notes of not less than 16.0% per annum compounded quarterly; provided, that for purposes of the calculation of Required IRR, (v) payments of non-default rate cash interest shall be taken into account, and interest paid at the Default Rate shall be disregarded, (w) Penalty Interest paid pursuant to Section 2.5(b) shall be disregarded, (x) payments pursuant to Section 10.2 or 10.3 shall be disregarded, (y) interest payments paid in cash shall be deemed paid on the date actually paid in cash (i.e. on the applicable Interest Payment Date if paid on such date) and (z) all payments (other than cash interest payments) shall be deemed paid on such date of determination.

Examples of Required IRR in a sentence

• If the effective date of a Divestiture Event occurs after the First Calendar Quarter of Calendar Year 2006, then to calculate the Termination Payment, the “Month End Required IRR Balance” (as defined below) will be calculated for each calendar month, beginning with April 2006, through the month in which PharmaBio receives the Termination Payment.

• The amount of the Termination Payment will be equal to the “Month End Required IRR Balance” of the month in which the effective date of the Divestiture Event occurs.

• However, if such Month End Required IRR Balance is zero or a negative amount, then the Termination Payment will be zero dollars (US$0).

• The purchase price of the Property (“Purchase Price”) shall mean an amount equal to the greater of: (X) the amount that would result in the Required IRR (as hereinafter defined), and (Y) an amount equal to one hundred and fifty percent (150%) of the Lease Consideration (as hereinafter defined).

• Such recalculation shall increase or decrease, as applicable, the Incremental Fee in order to provide Gatherer cost recovery including the Required IRR in respect of such Additional System-wide Facilities over the remaining Term; provided that, once Gatherer has achieved a return of all Discretionary Additional Capital spent on the Additional System-wide Facilities, plus the Required IRR, the Incremental Fee shall be reduced to the actual annual operating expenses for the Additional System-wide Facilities.