Distributions on Preferred Units. (a) From and after the date hereof, except as provided in Section 6.01(c), each outstanding Preferred Unit shall receive distributions in-kind in the form of additional Preferred Units (“PIK Units”) on the Face Value at the Distribution Rate (each such distribution, a “PIK Distribution”) on the last day of each quarter. PIK Distributions shall accrue and be cumulative and shall be computed on the basis of a 360-day year comprised of four quarters of 90 days each. Such distributions shall be payable, whether or not declared by the Board, in accordance with this Section 6.01 to the Preferred Members as they appear on Schedule A. Any such PIK Distributions shall (without duplication) increase the aggregate Face Value of the Preferred Units.
(b) On the Conversion Date, any accrued but unpaid distributions on the Preferred Units shall be paid in the form of PIK Units to the Preferred Members as they appear on the Schedule A at the close of business on the Conversion Date for the pro rata portion of such quarter.
(c) Following the date that the Project has actually produced and loaded for sale to un-Affiliated third party commercial customers an amount of LNG in any single consecutive [***] day period equal to at least [***] MMBtu, the Company, upon declaration by the Board, shall have the right, at its option, to elect to cause all or any portion of any PIK Distributions to be issued on any Quarterly Distribution Date occurring after such date to be instead paid for in cash (and, for the avoidance of doubt, such cash payment shall be in lieu of the increase in Face Value that would otherwise have occurred at the end of each quarter).
Distributions on Preferred Units. (a) Each outstanding Preferred Unit shall be entitled to receive distributions either (i) if so declared by the Managing Member, from Available Cash at the Distribution Rate, or (ii) if the Managing Member does not declare a distribution from Available Cash, in the form of an increase in the Face Value at the Distribution Rate as of the last day of the respective quarter (each such distribution pursuant to clause (ii), an “Accrued Distribution”); provided, that, for each full quarter ending on or after the quarter in which the Commercial Operation Date occurs, the applicable rate for Accrued Distributions shall be at a rate per annum equal to 1% per annum above the Distribution Rate.
(b) Distributions shall accrue and be cumulative and shall be computed on the basis of a 360-day year comprised of four quarters of 90 days each. Accrued Distributions shall accrue and increase the Face Value of each outstanding Preferred Unit, whether or not declared by the Managing Member, in accordance with this Section 6.01.
Distributions on Preferred Units. No distributions shall be made with respect to any Class or series of Preferred Units except as permitted under the Unit Designation related to such Class or series of Preferred Units. For the avoidance of doubt, and without limitation of the foregoing, no distributions pursuant to this Section 4.01, including Tax Distributions, shall be made with respect to any Class or series of Preferred Units (unless the applicable Unit Designation expressly provides otherwise in a provision that explicitly refers to Section 4.01).
Distributions on Preferred Units. (a) The holders of record of Preferred Units shall be entitled to receive distributions in cash at the "Distribution Rate" (as determined in Paragraph 16.3(b)), multiplied by the Liquidation Value (as defined in Paragraph 16.4) of a Preferred Unit, which shall be payable quarterly on the last day of March, June, September and December of each year (each such date being referred to as a "Distribution Date") commencing on December 31, 1998. Distributions on the Preferred Units shall be cumulative. The amount of distributions accrued on a Preferred Unit at any Distribution Date shall be the amount of unpaid distributions accumulated thereon to and including the Distribution Date, and the amount of any unpaid distributions at any date other than a Distribution Date shall be calculated as the amount of any unpaid distribution accumulated to and including the last preceding Distribution Date, plus an amount calculated at the Distribution Rate for the period after such last preceding Distribution Date to and including the date or dates as of which the calculation is made. Except as set forth in this Paragraph 16.3(a), no other distributions (other than in the event of liquidation, dissolution or winding up of the Company) shall be made in respect of the Preferred Units.
(b) From the date of issuance of the Preferred Units to and including September 30, 2001, the Distribution Rate shall be a percentage equal to 25 basis points below the 24-mxxxx Xxxxxx Xxxxxx xxxasury note yield as shown in The Wall Street Journal on the second business day preceding such date of issuance. Effective October 1, 2001, the Distribution Rate shall be a percentage equal to the highest safe harbor rate provided for in Regulations Section 1.707-4.
(c) Notwithstanding any provision to the contrary which may be contained herein (including without limitation the provisions of ARTICLE IV captioned "DISTRIBUTIONS"), no distributions, whether in cash, property, securities or other
Distributions on Preferred Units. The Company may, in its sole discretion, make distributions to the Member(s) holding Preferred Units with respect to such Units from time to time. Such distribution shall be in the amounts as the Company may in its discretion determine, but in no event shall distributions to a Member holding Preferred Units exceed eight percent (8%) of the Preferred Capital each year. For the foregoing purpose, if there has been a redemption or retraction of Preferred Units during the year under this Agreement, the amount of outstanding Preferred Capital shall be determined on a weighted average basis. Distributions to the Preferred Member shall not be made or calculated on a cumulative basis.
Distributions on Preferred Units
