Examples of Distribution Income in a sentence
Distribution Income is income received by the Fund from the Fund’s indirect investment in Boston Pizza Canada Limited Partnership completed in May 2015.
Top-Line Fund / Increases in Franchise Sales The Fund effectively has the right to receive from BPI and BP Canada LP an amount equal to 5.5% of Franchise Sales (4.0% of which is payable via the Royalty and 1.5% of which is payable as Distribution Income on the Class 1 LP Units and Class 2 LP Units), less the pro rata portion payable to BPI in respect of its retained interest in the Fund.
Both Royalty and Distribution Income of the Fund are based on Franchise Sales of Boston Pizza Restaurants in the Royalty Pool and are not determined by the profitability of BPI, BP Canada LP or Boston Pizza Restaurants in the Royalty Pool.
In addition, the Fund and BPI created a new financial covenant that requires BPI and BP Canada LP to pay the Fund each quarter until December 31, 2022 a minimum amount of Royalty and Distribution Income.
In return for adding new Royalty and Distribution Income from the New Restaurants after subtracting the Royalty and Distribution Income that is lost from the Closed Restaurants2 (such difference, “Net Royalty and Distribution Income”), BPI receives the right to indirectly acquire additional Units (in respect of the Royalty, “Class B Additional Entitlements” and in respect of Distribution Income, “Class 2 Additional Entitlements”, and collectively, “Additional Entitlements”).
Hardwoods Distribution Income Fund (the “Fund”) is an unincorporated, open ended, limited purpose trust established under the laws of the Province of British Columbia on January 30, 2004 by a Declaration of Trust.
BPI’s right to increase the Fund’s Franchise Sales Participation upon the applicable Exchange Condition being satisfied is designed to be accretive to Unitholders as the additional Distribution Income that Holdings LP will receive from BP Canada LP thereafter is valued at a 7.5% discount.
The Additional Entitlements are calculated at 92.5% of the estimated Royalty and Distribution Income expected to be generated by the New Restaurants less the actual Royalty and Distribution Income lost from the Closed Restaurants, multiplied by one minus the effective tax rate estimated to be paid by the Fund, divided by the yield of the Fund, divided by the weighted average Unit price over a specified period.
In view of individual nature of tax consequences, each unit holder is advised to consult his / her own professional financial / tax advisor.Dividend Distribution/ Income Distribution cum Capital Withdrawal ProcedureIn accordance with SEBI Circular no.
See the “Operating Results” section of this MD&A for a detailed discussion of each of Royalty income, Distribution Income, administrative expenses and income taxes.