Company: OXLCZ
Filing Date: 2025-02-21
Form Type: 424B2
Source: 0001213900-25-015823
Chunk: 103

Company: Oxford Lane Capital Corp.
Filing Date: 2025-02-21
Form: 424B2
Chunk 103
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 gains. Pre -incentivefee net investment income, expressed as a rate of return on the value of our net assets at the end of the immediately preceding calendar quarter, is compared to a hurdle of 1.75% per quarter (7.00% annualized). For such purposes, our quarterly rate of return is determined by dividing our pre -incentivenet investment income by our reported net assets as of the prior period end. Our net investment income used to calculate this part of the incentive fee is also included in the amount of our gross assets used to calculate the 2.00% base management fee. We pay Oxford Lane Management an incentive fee with respect to our pre -incentivefee net investment income in each calendar quarter as follows: •no incentive fee in any calendar quarter in which our pre -incentivefee net investment income does not exceed the hurdle of 1.75%; •100% of our pre -incentivefee net investment income with respect to that portion of such pre -incentivefee net investment income, if any, that exceeds the hurdle but is less than 2.1875% in any calendar quarter (8.75% annualized). We refer to this portion of our pre -incentivefee net investment income (which exceeds 32 Table of Contents the hurdle but is less than 2.1875%) as the “catch -up.” The “catch -up” is meant to provide Oxford Lane Management with 20% of our pre -incentivefee net investment income as if a hurdle did not apply if this net investment income exceeds 2.1875% in any calendar quarter; and •20% of the amount of our pre -incentivefee net investment income, if any, that exceeds 2.1875% in any calendar quarter (8.75% annualized) is payable to Oxford Lane Management (once the hurdle is reached and the catch -upis achieved, 20% of all pre -incentivefee investment income thereafter is allocated to Oxford Lane Management). The following is a graphical representation of the calculation of the income -relatedportion of the incentive fee: Quarterly Incentive Fee Based on Net Investment Income Pre-incentive fee net investment income
(expressed as a percentage of the value of net assets) Percentage of pre-incentive fee net investment income allocated to the Oxford Lane Management These calculations are appropriately pro -ratedfor any period of less than three months and adjusted for any share issuances