Common use of Distribution of Profits Clause in Contracts

Distribution of Profits. 7.1. The Net Cash From Operations (as defined in Section 7.2) of the Partnership shall be distributed to the Partners in accordance with their respective Partnership Interests at such regular time or times as the Partners acting in accordance with Section 8 shall determine; provided that no distribution of Net Cash From Operations shall be made at any time when any Installment of Purchase Price (as defined in Section 19) shall be due and owing but unpaid. 7.2. As used in this Section 7, the term "Net Cash From Operations" means, with respect to any period in time: 7.2.1. The taxable income of the Partnership for federal income tax purposes as shown on the books of the Partnership for such period, increased by: (a) the depreciation and amortization deductions taken in computing such taxable income, and (b) any non-taxable income or receipts of the Partnership for such period, reduced by: (i) payments made during such period of principal of any indebtedness of the Partnership for borrowed money, and (ii) such expenditures and reserves for capital improvements or replacements, repairs, other anticipated expenses and working capital needs as the Partners, acting in accordance with Section 8, shall deem reasonably necessary for the conduct of the business; 7.2.2. Any other funds (including without limitation amounts earlier set aside for reserves but no longer deemed necessary for such purpose) deemed available for the distribution by the Partners acting in accordance with Section 8. 7.3. In addition to regular distributions made pursuant to Section 7.1, upon any sale, transfer or other disposition of any capital asset of the Partnership (hereinafter referred to as a "Disposition"), the proceeds of such Disposition net of selling or other expenses and the repayment of indebtedness secured by the asset subject to the Disposition (the "Net Proceeds") shall be retained by the Partnership or be distributed to the Partners in proportion to their respective Partnership Interests, all as the Partners acting in accordance with Section 8 shall determine.

Appears in 4 contracts

Samples: General Partnership Agreement, General Partnership Agreement, General Partnership Agreement

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Distribution of Profits. 7.1. The Net Cash From Operations (as defined in Section 7.2) of the Partnership shall be distributed to the Partners in accordance with their respective Partnership Interests at such regular time or times as the Partners acting in accordance with Section 8 shall determine; provided that no distribution of Net Cash From Operations shall be made at any time when any Installment of Purchase Price (as defined in Section 19) shall be due and owing but unpaid. 7.2. As used in this Section 7, the term "Net Cash From Operations" means, with respect to any period in time: 7.2.1. The taxable income of the Partnership for federal income tax purposes as shown on the books of the Partnership for such period, increased by: (a) the depreciation and amortization deductions taken in computing such taxable income, and (b) any non-taxable income or receipts of the Partnership for such period, reduced by: (i) payments made during such period of principal of any indebtedness of the Partnership for borrowed money, and (ii) such expenditures and reserves for capital improvements or replacements, repairs, other anticipated expenses and working capital needs as the Partners, acting in accordance with Section 8, shall deem reasonably necessary for the conduct of the business;; plus: 7.2.2. Any other funds (including without limitation amounts earlier set aside for reserves but no longer deemed necessary for such purpose) deemed available for the distribution by the Partners acting in accordance with Section 8. 7.3. In addition to regular distributions made pursuant to Section 7.1, upon any sale, transfer or other disposition of any capital asset of the Partnership (hereinafter referred to as a "Disposition"), the proceeds of such Disposition net of selling or other expenses and the repayment of indebtedness secured by the asset subject to the Disposition (the "Net Proceeds") shall be retained by the Partnership or be distributed to the Partners in proportion to their respective Partnership Interests, all as the Partners acting in accordance with Section 8 shall determine.

Appears in 1 contract

Samples: General Partnership Agreement

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