Common use of Distribution of AE&P Clause in Contracts

Distribution of AE&P. Pursuant to paragraph (b)(3)(i) of this section, the portion of the distribution that is sourced from AE&P is equal to the lesser of: The product of the qualified distribution and the AE&P ratio ($150 × 0.33, or $50), and X’s AE&P imme- diately before the qualified distribu- tion ($70). Therefore, $50 is sourced from AE&P. Pursuant to paragraph (b)(3)(ii) of this section, after the dis- tribution, X’s AE&P is reduced by $50 to $20. Pursuant to paragraph (b)(3)(iii) of this section, the $50 distribution is characterized as a dividend.

Distribution of AE&P. Pursuant to paragraph (b)(3)(i) of this section, the portion of the distribution that is sourced from AE&P is equal to the lesser of: The the product of the qualified distribution and the AE&P ratio ($150 90 × 0.33, or $5030), and X’s AE&P imme- diately before the qualified distribu- tion ($70100). Therefore, $50 30 is sourced from AE&P. Pursuant to paragraph (b)(3)(ii) of this section, after the dis- tribution, X’s AE&P is reduced by $50 30 to $2070. Pursuant to paragraph (b)(3)(iii) of this section, the $50 30 distribution is characterized as a dividend.

Distribution of AE&P. Pursuant to paragraph (b)(3)(i) of this section, the portion of the distribution that is sourced from AE&P is equal to the lesser of: The the product of the qualified distribution and the AE&P ratio ($150 500 × 0.330.75, or $50375), and X’s AE&P imme- diately before the qualified distribu- tion ($70580). Therefore, $50 375 is sourced from AE&P. Pursuant to paragraph (b)(3)(ii) of this section, after the dis- tribution, X’s AE&P is reduced by $50 375 to $20205. Pursuant to paragraph (b)(3)(iii) of this section, the $50 distribution 375 dis- tribution is characterized as a dividenddivi- dend.

Distribution of AE&P. Pursuant to paragraph (b)(3)(i) of this section, the portion of the distribution that is sourced from AE&P is equal to the lesser of: The product of the qualified distribution and the AE&P ratio ($150 100 × 0.330.5, or $50), and X’s AE&P imme- diately immediately before the qualified distribu- tion distribution ($70100). Therefore, $50 is sourced from AE&P. Pursuant to paragraph (b)(3)(ii) of this section, after the dis- tributiondistribution, X’s AE&P is reduced by $50 to $2050. Pursuant Pursu- ant to paragraph (b)(3)(iii) of this sectionsec- tion, the $50 distribution is characterized character- ized as a dividend.

Distribution of AE&P. Pursuant to paragraph (b)(3)(i) of this section, the portion of the distribution that is sourced from AE&P is equal to the lesser of: The product of the qualified distribution and the AE&P ratio ($150 100 × 0.330.5, or $50), and X’s AE&P imme- diately immediately before the qualified distribu- tion distribution ($7025). Therefore, $50 25 is sourced from AE&P. Pursuant to paragraph (b)(3)(ii) of this section, after the dis- tributiondistribution, X’s AE&P is reduced by $50 25 to $200. Pursuant to paragraph (b)(3)(iii) of this section, $25 of the $50 distribution is characterized as a dividend.

Distribution of AE&P. Pursuant to paragraph (b)(3)(i) of this section, the portion of the distribution that is sourced from AE&P is equal to the lesser of: The product of the qualified distribution and the AE&P ratio ($150 200 × 0.330.5, or $50100), and X’s AE&P imme- diately before the qualified distribu- tion ($7050). Therefore, $50 is sourced from AE&P. Pursuant to paragraph (b)(3)(ii) of this section, after the dis- tribution, X’s AE&P is reduced by $50 to $200. Pursuant to paragraph (b)(3)(iii) of this section, the $50 distribution is characterized as a dividend.