Estate of Anna Mirowski, Deceased, Ginat W. Mirowski and Ariella Rosengard, Personal Representatives - Page 32




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          approval of all the members of MFV.                                         
               Pursuant to section 4.1.1 of MFV’s operating agreement,26              
          profit or loss (other than profit or loss derived from a capital            
          transaction) for any taxable year was to be allocated to MFV’s              
          interest holders in proportion to their respective percentage               
          interests in MFV.                                                           
               Pursuant to section 4.1.2 of MFV’s operating agreement, MFV            
          was required to make within 75 days after the end of each taxable           
          year distributions to MFV’s interest holders of MFV’s cash flow27           
          for the taxable year in proportion to such members’ respective              
          percentage interests in MFV.                                                
               Pursuant to section 4.2.1 and section 4.2.2 of MFV’s operat-           
          ing agreement,28 profit or loss from a capital transaction was to           


               26Section 4.1 of MFV’s operating agreement is titled “Dis-             
          tributions of Cash Flow and Allocations of Profit or Loss Other             
          than Capital Transactions.”                                                 
               27The term “Cash Flow” is defined in section I of MFV’s                
          operating agreement to mean:                                                
               all cash funds derived from operations of the Company                  
               (including interest received on reserves), without                     
               reduction for any non-cash charges, but less cash funds                
               used to pay current operating expenses and to pay or                   
               establish reasonable reserves for future expenses, debt                
               payments, capital improvements or replacements as                      
               determined in the sole discretion of the General Man-                  
               ager.  Cash Flow shall not include Capital Proceeds but                
               shall be increased by the reduction of any reserve                     
               previously established.                                                
               28Section 4.2 of MFV’s operating agreement is titled “Dis-             
          tribution of Capital Proceeds and Allocation of Profit or Loss              
                                                             (continued...)           





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Last modified: March 27, 2008