Common use of Cumulative Return Clause in Contracts

Cumulative Return. Commencing on the Determination Date and continuing thereafter, the Company shall pay as a cumulative (but not compounded) return on investment, the Targeted Cumulative Distribution Amount before applying any Net Proceeds of Sale toward reductions of Adjusted Capital Contributions. For Limited Members that acquire their Units after the Determination Date, this cumulative (but not compounded) return on Adjusted Capital Contributions will be applied commencing on the first day of the calendar quarter following the date on which such Unit is initially held by the Limited Member.