Preferred Return Sample Clauses


Preferred Return. With respect to a Plant or Licensee Plant (other than the Demonstration Plant), the applicable Licensee or sublicensee, as the case may be, will pay Licensor an annual preferred return payment (Preferred Return) calculated on an annual basis as follows: (a) free cash flow before taxes accruing during such year (calculated as EBITDA minus scheduled principal and interest debt payments for such period actually paid, determined in accordance with U.S. GAAP) [***] of the outstanding balance of such Licensee’s or sublicensee’s unrecovered invested capital in such Licensee Plant or Plant, as the case may be, MULTIPLIED BY (b) [***]. In the event a Licensee acts as sales representative pursuant to Section 2.1 with respect to a Plant, such Licensee will be entitled to receive [***] of any such amount received by Licensor by any third party with respect thereto.


Preferred Return. The Class A Units shall accrue the Preferred Return on the Class A Unreturned Capital Contributions. Preferred Returns shall accrue from the date of this Agreement. The Company shall endeavor to distribute the full amount distributable pursuant to Section 8.2(b) quarterly commencing at the end of the fifth (5th) fiscal quarter after the signing of this Agreement out of funds legally available for distribution.

Preferred Return. The term “Preferred Return” means, with respect to each Member, an amount calculated like interest and accrued on the balance standing from time to time in such Member’s Unrecovered Contribution Account at a simple interest rate equal to nine percent (9%) per annum, non-compounded, and determined on a cumulative basis. For financial and income tax reporting purposes, neither accrual nor payment of the Preferred Return shall be an expense of the Company nor be treated as a guaranteed payment under Section 707(c) of the Code.

Preferred Return. For the avoidance of doubt, the Class A Interests shall accrue the Preference Amount until the Equalization Date, after which time the Preference Amount shall no longer accrue.

Preferred Return. First, to the Partners in the ratio of their relative Preferred Return Accounts until each Partner’s Preferred Return Account has been reduced to zero;

Preferred Return – means the amount accrued for each taxable year (or portion thereof) of the Company commencing on the Effective Date by applying the Prime Rate, as in effect from time to time, to the sum of (i) the Unrecovered Unmatched Pre-Licensing Costs and (ii) the Unrecovered Preferred Return.

Preferred Return. Borrowers shall accrue and be obligated to pay a fee equal to fifteen (15%) percent of the Initial Loan Commitment (the “Preferred Return Fee”), and in the event of any increase in the Loan Commitment amount, as provided in Section 1.2.1 hereof, on the date of such increase, fifteen (15%) percent of such increased Loan Commitment amount.The Preferred Return Fee shall be payable, if at all, only out of the Net Profits from Events, and not as additional interest on the Loan. Each Lender and Sheldon Finkel (“SF”) shall be entitled to one-third (1/3) (the “Pro-Rata Portion”) of the Preferred Return FeeNotwithstanding anything herein or in any Loan Documents to the contrary, the Preferred Return Fee shall not be paid in the event there exist net losses with respect to Events(“Net Loss”) or the Advances are not repaid in full upon the termination of the Loan. For purposes hereof, ”net profit” and “Net Loss” shall be determined by the Parent‘s CFO in accordance with GAAP.


Preferred Return of a Preferred Member means a cumulative preferential rate of return in an amount equal to twelve percent (12%) per annum (compounded annually on January 1 of each year), prorated for fractional periods, on the amount of that Member s Adjusted Capital Contribution. The Preferred Return shall be computed on the basis of a computational year of 360 days comprised of equal months of 30 days each. Contributions shall not bear the Preferred Return for the day on which funds are contributed to the Company; however, funds distributed to Members that reduce a Member s Adjusted Capital Contribution shall bear the Preferred Return for the day on which those funds are distributed to the Member.

Preferred Return. Each holder of one or more Series A Units shall be entitled to receive when, as, and if declared by the Managers out of funds at the time legally available therefor, a quarterly cash payment equal to a percentage of the Liquidation Preference, which percentage shall be twenty five (25) basis points higher than the London Bank Inter-Bank Offer Rate ("LIBOR") for one (1) year (or its successor index rate) in effect on the last day of the calendar month for which the preferred return is approved (“Preferred Return” or “Preferred Payment”). Preferred Returns are payable quarterly in arrears on the 30th day of each April, July, October and January, except that if any such date is on a Saturday, Sunday or a legal holiday, then such payment shall be payable on the next day that is not a Saturday, Sunday or legal holiday. Preferred Returns shall accrue and be cumulative from the date of first issuance of the Series A Units and will be payable to holders of record as they appear on the books of the Company on such record dates as are fixed by the Managers. No interest shall be payable with respect to any Preferred Returns on the Series A Units which may be in arrears.

Preferred Return. A Cumulative Return of 7% computed from the Initial Closing Date through the date as of which the Preferred Return is being calculated.