- 89 -
SECTION IV
Profit, Loss and Distributions
4.1. Distributions of Cash Flow and Allocations
of Profit or Loss Other than Capital Transactions.
4.1.1. Profit or Loss other than from a
Capital Transaction. After giving effect to the
special allocations [for purposes of subchapter K of
the Internal Revenue Code] set forth in Section 4.3,
for any taxable year of the Company, Profit or Loss
(other than Profit or Loss resulting from a Capital
Transaction, which Profit or Loss shall be allocated in
accordance with the provisions of Section 4.2.1. and
4.2.2.) shall be allocated to the Interest Holders in
proportion to their Percentages.
4.1.2. Distributions of Cash Flow. Cash
Flow for each taxable year of the Company shall be
distributed to the Interest Holders in proportion to
their Percentages no later than seventy-five (75) days
after the end of the taxable year.
4.2. Distribution of Capital Proceeds and
Allocation of Profit or Loss from Capital Transactions.
4.2.1. Profit. After giving effect to the
special allocations [for purposes of subchapter K of
the Internal Revenue Code] set forth in Section 4.3,
Profit from a Capital Transaction shall be allocated as
follows:
4.2.1.1. If one or more Interest
Holders has a Negative Capital Account, to those
Interest Holders, in proportion to their Negative
Capital Accounts, until all of those Negative Capital
Accounts have been reduced to zero.
4.2.1.2. Any Profit not allocated
pursuant to Section 4.2.1.1 shall be allocated to the
Interest Holders in proportion to, and to the extent
of, the amounts distributable to them pursuant to
Section 4.2.3.4.1. and 4.2.3.4.3
4.2.1.3. Any Profit in excess of the
foregoing allocation shall be allocated to the Interest
Holders in proportion to their Percentages.
Page: Previous 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 Next
Last modified: March 27, 2008