Quarterly Preferred Distributions Sample Clauses

Quarterly Preferred Distributions. On each Preferred Distribution Payment Date, the LLC shall distribute to the Preferred Members (the “Quarterly Distribution”) (i) cumulative distributions accruing on a daily basis at the Preferred Rate on the Preferred Unreturned Capital Contribution of such Preferred Unit from time to time, payable, at the option of the LLC, (1) in cash, or, (2) to the extent not paid in cash, payable by automatically increasing the Preferred Unreturned Capital Contribution on such Preferred Units (and, in each case, reducing the Preferred Unpaid Yield for such Quarterly Distribution accordingly), reduced by (ii) any amount treated as an advance of such Quarterly Distribution pursuant to Section 4.1(b); provided, however, that any election to pay in cash the Quarterly Distribution with respect to any Preferred Distribution Payment Date shall be made with no less than 10 days’ notice. Distributions will be calculated on the basis of actual days elapsed over a year of 360 days consisting of 12 30-day months. For the avoidance of doubt, the LLC may elect to pay such Quarterly Distributions in part in cash and in part in kind, in each case at the applicable Preferred Rate; provided that any such election shall be subject to the notice requirement in the immediately preceding sentence and shall specify the amounts to be paid in cash or in kind, as applicable; provided, further, that following any such election, if the LLC shall fail to pay all or any portion of the amount specified in such notice to be paid in cash, such amount shall automatically be paid in kind pursuant to clause (i)(2) above. The “Preferred Rate,” with respect to each period for which Quarterly Distributions have accrued with respect to each Preferred Unit, shall mean a per annum rate of distributions for such period as follows, whether or not such distributions have been declared and whether or not there are profits, surplus or other funds legally available for the payment of distributions: Periods To the extent the Quarterly Distribution is paid in kind: To the extent the Quarterly Distribution is paid in cash (including in the form of advance pursuant to Section 4.1(b)): Commencing on the Closing Date until the third (3rd) anniversary of the Closing Date LIBO Rate plus 8.00% LIBO Rate plus 7.50% On or following the third (3rd) anniversary of the Closing Date until the fourth (4th) anniversary of the Closing Date LIBO Rate plus 8.50% LIBO Rate plus 8.00% On or following the fourth (4th) anniversary of th...