Common use of Distributable Cash from Capital Transactions Clause in Contracts

Distributable Cash from Capital Transactions. The Manager may elect to reinvest some or all of the proceeds from a Capital Transaction. In the event the Manager elects not to reinvest Capital Transaction proceeds, Distributable Cash will be allocated in the following order: A. First, the Class A Members will be allocated (100%) of Distributable Cash until the Class A Members’ total Unreturned Capital Contributions is reduced to zero. B. Second, the Class B Members will be allocated a “Catch-Up Allocation,” whereby they are allocated 100% of Distributable Cash until the Class B Members have been allocated 20% all Distributable Cash allocated to date other than Distributable Cash allocated to Class A Members for return of Capital Contributions per Section 5.2(ii)(A). Note that this Catch-Up Allocation provision will not have any effect unless the Manager has previously reallocated Distributable Cash from Class B Members to Class A Members, as allowed by Section 5.2(b) below. C. Finally, the remaining Distributable Cash will be allocated eighty percent (80%) to the Class A Members and twenty percent (20%) to the Class B Members.