Examples of New Restaurants in a sentence
Addition of New Restaurants to Royalty Pool On January 1 of each year (each, an “Adjustment Date”), an adjustment is made to add to the Royalty Pool new Boston Pizza Restaurants that opened (“New Restaurants”) and to remove any Boston Pizza Restaurants that permanently closed since January 1 of the previous year (“Closed Restaurants”).
After the New Restaurants have been part of the Royalty Pool for a full year, an audit of the Franchise Sales of these restaurants is performed, and the actual effective tax rate paid by the Fund is determined.
The calculation of Additional Entitlements is designed to be accretive to Unitholders as the expected increase in Franchise Sales from the New Restaurants added to the Royalty Pool less the decrease in Franchise Sales from the Closed Restaurants is valued at a 7.5% discount.
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”).
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.
Rather, on future Adjustment Dates, BPI would be required to make-up the Deficiency by first adding Net Royalty and Distributions in an amount equal to the Deficiency before receiving any further Additional Entitlements (i.e. BPI only receives Additional Entitlements in respect of the cumulative amount by which Royalty and Distributions from New Restaurants exceeds actual Royalty and Distributions lost from Closed Restaurants).
Adjustments to Royalty Pool The BP Canada Limited Partnership Agreement provides for adjustments to the distribution and exchange entitlements of the BP Canada GP Units based upon permanently closed Boston Pizza Restaurants and any Additional Restaurants, to reflect the additional Distribution Income payable by BP Canada LP to Holdings LP as a result of adding Net New Restaurants to the Royalty Pool on each Adjustment Date.
Terms not otherwise defined in this Note shall have the meanings specified in the Procedures for Resolving Disputes Relating to the Development of New Restaurants (the “ADR Procedures”) promulgated by EPL.
BPI receives 80% of the Additional Entitlements initially, with the balance received when the actual full year performance of the New Restaurants and the actual effective tax rate paid by the Fund are known with certainty (such balance of Fund Units in respect of the increased Royalty, the “Class B Holdback”, and in respect of the increased Distributions, the “Class 2 Holdback”, and collectively, the “Holdback”).
The Additional Entitlements are calculated at 92.5% of the estimated Royalty and Distributions expected to be generated by the New Restaurants less the actual Royalty and Distributions 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 Fund Unit price over a specified period.