Common use of Distribution, Reconciliation and Adjustment of Owner Proceeds Clause in Contracts

Distribution, Reconciliation and Adjustment of Owner Proceeds. All revenues from all Containers managed by Manager, other than Indemnification Proceeds, will be paid by obligors (or in the case of payment by checks or drafts, will be promptly deposited by Manager) into one or more bank accounts maintained by Manager in Manager’s name (provided that Owner shall be treated, for U.S. tax and other purposes, as the owner of all such amounts that are the property of Owner), in accordance with the following procedures: (a) At the end of each week, based on its records of cash receipts and disbursements, Manager will calculate the Owner Proceeds for such week (“Pre-Adjustment Owner Proceeds”), all of which Pre-Adjustment Owner Proceeds shall be subject to adjustment (based on actual cash receipts and disbursements during such month) when Manager closes its books for the month in which such week occurs. (b) Subject to the last sentence of Section 5.1, Manager shall, no later than seven (7) days after the last Business Day of each week, deposit into the Owner Bank Account an amount equal to the Pre-Adjustment Owner Proceeds for such week , net of expenses (other than Operating Expenses), if any, to be reimbursed to Manager pursuant to Section 6.2. (c) In the last week of each calendar month the Manager will deduct from the Pre-Adjustment Owner Proceeds to be deposited into the Owner Bank Account an amount equal to the actual Management Fee earned in the prior month as an estimate of the Management Fee (“Estimated Management Fee”) for such calendar month. (d) When the Manager closes its books for a calendar month (such closure to be completed within a reasonable time not to exceed thirty (30) days (the “Monthly Adjustment Period”)), it will make a final determination of the Owner Proceeds and the actual Management Fee. If (a) the Pre-Adjustment Owner Proceeds less the Estimated Management Fee for such month is less than (b) the Owner Proceeds less the actual Management Fee for such month, Manager will pay the difference to Owner within a reasonable period and in any event within the Monthly Adjustment Period. If (a) the Pre-Adjustment Owner Proceeds less the Estimated Management Fee for such month is more than (b) the Owner Proceeds less the actual Management Fee for such month, then Manager will deduct the difference from future payments to be made to Owner.

Distribution, Reconciliation and Adjustment of Owner Proceeds. All revenues from Manager will distribute all Containers managed by Manager, other than Indemnification Proceeds, will be paid by obligors (or amounts in the case of payment by checks or drafts, will be promptly deposited by Manager) into one or more bank accounts maintained by Manager in Manager’s name (provided that Owner shall be treated, for U.S. tax Master Account and other purposes, as the owner of all such amounts Finance Lease Proceeds Account that are the property of Owner), Owner in accordance with the following procedures: (a) At After the end of each week, based on its records of cash receipts and disbursements, Manager will calculate the amount of Owner Proceeds for such week (“Pre-Adjustment Owner Proceeds”), all of which Pre-Adjustment Owner Proceeds shall will be subject to adjustment (based on actual cash receipts and disbursements during such month) when Manager closes its books for the month in which such week occurs. (b) Subject to the last sentence of Section 5.1, Manager shall5.5, no later than seven (7) days after the last Business Day day of each week, Manager shall deposit into the Owner Bank Trust Account an amount equal to the Pre-Adjustment Owner Proceeds for such week week, net of expenses (other than Operating Expenses), if any, to be reimbursed to Manager pursuant to Section 6.25.4 (each such deposit, an “Owner Distribution”). (c) In For the last week of each calendar month the Owner Distribution attributable to any month, Manager will deduct from the Pre-Adjustment Owner Proceeds to be deposited into the Owner Bank Trust Account an amount amount, as an estimate (the “Estimated Manager Fee”) of the Manager Fee for such calendar month, equal to the actual Management Manager Fee earned in for the prior month; provided that, for the first month as an estimate after the date of this Agreement, the Management Estimated Manager Fee (“Estimated Management Fee”) for such calendar monthshall be estimated by Manager in good faith. (d) When the After Manager closes its books for a calendar month (such closure to be completed within a reasonable time not to exceed thirty (30) days (the “Monthly Adjustment Period”))month, it will make a final determination of the Owner Proceeds and the actual Management FeeManager Fee for such month. If (ai) the difference of the Pre-Adjustment Owner Proceeds less minus the Estimated Management Manager Fee for such month is less than (bii) the difference of the Owner Proceeds less minus the actual Management Manager Fee for such month, Manager will pay the difference to Owner within a reasonable period and in any event within the Monthly Adjustment PeriodOwner. If (aA) the difference of the Pre-Adjustment Owner Proceeds less minus the Estimated Management Manager Fee for such month is more than (bB) the difference of the Owner Proceeds less minus the actual Management Manager Fee for such month, then Manager will deduct the difference from future payments to be made to Owner. Payments of any such differences to be made under this Section 5.2 shall be made by Manager within ten (10) days after the close of Manager’s accounting records for each month.