-6- (the IHCL Restated Agreement). That agreement allocated 99 percent of the net losses of IHCL to Dondi and the other 1 percent to THEI as the general partner. After a period of approximately 5 years, the net losses were to be allocated to the partners on a pro rata basis. The income of IHCL was allocated to the partners, Dondi and THEI, in the same ratio as net losses. The allocation was to continue until such time as IHCL's cumulative income equaled IHCL's cumulative losses; thereafter, IHCL's income would be allocated to the partners pro rata and in proportion to earlier distributions. In contrast to the allocations of income, section 5 of the IHCL Restated Agreement made the following provisions for actual distributions: 5.1 Distribution of Cash Available for Distribution. Cash Available for Distribution, as defined in Section 17, when distributed from time to time, shall be distributed to the Partners as follows: 5.1.1. First, upon the release of the letters of credit by the lender as referred to in subsection 4.3.5(a), then to the General Partner up to the amount to which the General Partner is entitled under Section 4.3.5(a). 5.1.2. Second, to the repayment of any Special Loans, pro rata, up to the full amount of the total principal amount of such Special Loans, plus accrued but unpaid interest thereon. 5.1.3. Thereafter, any remaining sum shall be distributed to the Partners, pro rata.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011