Examples of Preferential Return in a sentence
The Preferential Return will be paid out of cash available for distribution, on a quarterly basis, but only until the Unitholders' principal investment is returned in full.
A Preferential Return Account shall be maintained for each Preferred Unit Holder in accordance with this provision.
Accrued but unpaid Management Fees for any period shall be deferred without interest and shall be payable in subsequent periods from any funds available to the Owner after payment of all other costs and expenses of the Owner (other than the Preferential Return), including any reserves then determined by Proinvest to no longer be necessary to be retained by the Owner.
As provided in the LLC Agreement, the allocation to Proinvest would be an allocation of twenty-five percent (25%) of net income, after Investor Members have received allocations equal to all prior losses, the cumulative Preferential Return, and all unreturned capital contributions.
Each Preferred Unit Holder’s Preferential Return Account, as determined and adjusted pursuant to this Section 3.8, shall be separate and distinct from each Preferred Unit Holder’s Capital Account and will be maintained pursuant to this Section 3.8 solely for the purpose of determining the amount of cash to be distributed to each Preferred Unit Holder and the priority of such distributions pursuant to Section 5.2(b) hereinbelow.
As provided in the LLC Agreement, the distributions to Proinvest would include distributions of twenty-five percent (25%) of distributions after the Investor Members have received distributions equal to the cumulative Preferential Return and all unreturned capital contributions.
On December 27, 2006, Ellis filed an incident report at the Indianola Police Department, claiming he was assaulted by unknown assailants at the Double Quick store on October 7.2 According to Ellis, he suffered a head injury from the attack which left him with memory loss.
Such results have been criticized as too harsh tothe non-exclusive licensees in comparison with the transferee who knew or should have known the existence of non-exclusive license through due diligence before the transfer.
In the event distributions (other than Tax Distributions) are not made in any quarter, the Preferential Return payable in that quarter (2%) will accrue to the next quarter, such that the Company will pay current and accrued preferred returns out of cash available for distribution before making any other distribution, except Tax Distributions.
The Preferred Unit Holders shall be automatically redeemed when and to the extent that distributions are made by the Company pursuant to Section 5.2(a) and Section 5.2(b) of this Agreement, and the Preferred Units shall no longer be deemed to be outstanding as of the date on which each Preferred Unit Holder’s Preferential Return Account has been reduced to zero and there is no accrued but unpaid Priority Return due to any Preferred Unit Holder.