Net Profits. After application of Sections 4.02 and 4.03, Net Profits for each Fiscal Year shall be allocated among the Members in the following order and priority: (i) first, to the Members, in proportion to and to the extent of the amounts necessary to cause the cumulative allocations of Net Profits to each Member under this Section 4.01(a)(i) for the current and all prior Fiscal Years to equal the cumulative allocations of Net Losses to such Member pursuant to Section 4.01(b)(iv) hereof; (ii) second, to Paladin, until the balance of Paladin’s Capital Account (as of the last day of such Fiscal Year, but adjusted to reflect any Net Profits for such Fiscal Year allocated to Paladin pursuant to Section 4.01(a)(i) and Section 4.02 and 4.03 hereof) equals Paladin’s 12% IRR Amount (as of the last day of such Fiscal Year); (iii) third, to the Xxxxxxx Members, in proportion to and to the extent of the amounts that would cause the balances of each of the Xxxxxxx Members’ Capital Accounts (as of the last day of such Fiscal Year, but adjusted to reflect any Net Profits for such Fiscal Year allocated to such Xxxxxxx Member pursuant to Section 4.01(a)(i) and Section 4.02 and 4.03 hereof) to equal such Xxxxxxx Member’s 12% IRR Amount (as of the last day of such Fiscal Year); (iv) fourth, subject to Section 4.03(b), 50% to Paladin, and 50% to the Lippert Members, pro rata, in proportion to their respective Percentage Interests. For purposes of determining the amount of Net Profits to be allocated pursuant to Section 4.01(a)(ii) and (iii) for any Fiscal Year, the Capital Account of each Member shall be increased by such Member’s share of “partnership minimum gain” as of the last day of such Fiscal Year, determined pursuant to Section 1.704-2(g)(1) of the Regulations, and by such Member’s share of “partner nonrecourse debt minimum gain” as of the last day of such Fiscal Year, determined pursuant to Section 1.704-2(i)(5) of the Regulations.
Appears in 3 contracts
Samples: Operating Agreement (Paladin Realty Income Properties Inc), Operating Agreement (Paladin Realty Income Properties Inc), Operating Agreement (Paladin Realty Income Properties Inc)
Net Profits. After application of Sections 4.02 and 4.03, Net Profits for each Fiscal Year shall be allocated among the Members in the following order and priority:
(i) first, to the Members, in proportion to and to the extent of the amounts necessary to cause the cumulative allocations of Net Profits to each Member under this Section 4.01(a)(i) for the current and all prior Fiscal Years to equal the cumulative allocations of Net Losses to such Member pursuant to Section 4.01(b)(iv) hereof;
(ii) second, to Paladin, until the balance of Paladin’s Capital Account (as of the last day of such Fiscal Year, but adjusted to reflect any Net Profits for such Fiscal Year allocated to Paladin pursuant to Section 4.01(a)(i) and Section 4.02 and 4.03 hereof) equals Paladin’s 12% IRR Amount (as of the last day of such Fiscal Year);
(iii) third, to Xxxxxxx until the Xxxxxxx Members, in proportion to and to the extent balance of the amounts that would cause the balances of each of the Xxxxxxx Members’ Xxxxxxx’x Capital Accounts Account (as of the last day of such Fiscal Year, but adjusted to reflect any Net Profits for such Fiscal Year allocated to such Xxxxxxx Member pursuant to Section 4.01(a)(i) and Section 4.02 and 4.03 hereof) to equal such Xxxxxxx Member’s equals Xxxxxxx’x 12% IRR Amount (as of the last day of such Fiscal Year);
(iv) fourth, subject to Section 4.03(b), 50% to Paladin, and 50% to the Lippert Members, pro rata, Members in proportion to their respective Percentage Interests. For purposes of determining the amount of Net Profits to be allocated pursuant to Section 4.01(a)(ii) and (iii) for any Fiscal Year, the Capital Account of each Member shall be increased by such Member’s share of “partnership minimum gain” as of the last day of such Fiscal Year, determined pursuant to Section 1.704-2(g)(1) of the Regulations, and by such Member’s share of “partner nonrecourse debt minimum gain” as of the last day of such Fiscal Year, determined pursuant to Section 1.704-2(i)(5) of the Regulations.
Appears in 2 contracts
Samples: Operating Agreement, Operating Agreement (Paladin Realty Income Properties Inc)
Net Profits. After application of Sections 4.02 and 4.03, Net Profits for each Fiscal Year shall be allocated among the Members in the following order and priority:
(i) first, to the Members, in proportion to and to the extent of the amounts necessary to cause the cumulative allocations of Net Profits to each Member under this Section 4.01(a)(i) for the current and all prior Fiscal Years to equal the cumulative allocations of Net Losses to such Member pursuant to Section 4.01(b)(iv) hereof;
(ii) second, to Paladinthe Members, in accordance with their Percentage Interests, until the balance of each of the Members’ Capital Accounts (as of the last day of such Fiscal Year, but adjusted to reflect any allocations for such Fiscal Year to such Member pursuant to Section 4.01(a)(i) and Sections 4.02 and 4.03 hereof) is equal to an amount which, if distributed to such Member on the last day of the Fiscal Year and added to all other actual distributions to such Member in the current and all prior Fiscal Years, would cause such Member to achieve an IRR equal to 12%;
(iii) third, subject to Section 4.03(b), 80% to Paladin and 20% to DFP until the balance of Paladin’s Capital Account (as of the last day of such Fiscal Year, but adjusted to reflect any Net Profits allocations for such Fiscal Year allocated to Paladin pursuant to Section 4.01(a)(i4.01(a)(i)–(ii) and Section Sections 4.02 and 4.03 hereof) equals Paladin’s 12% IRR Amount (as of is equal to an amount which, if distributed to Paladin on the last day of such the Fiscal Year);
(iii) thirdYear and added to all other actual distributions to Paladin in prior Fiscal Years, to the Xxxxxxx Members, in proportion to and to the extent of the amounts that would cause the balances of each of the Xxxxxxx Members’ Capital Accounts (as of the last day of such Fiscal Year, but adjusted Paladin to reflect any Net Profits for such Fiscal Year allocated achieve an IRR equal to such Xxxxxxx Member pursuant to Section 4.01(a)(i) and Section 4.02 and 4.03 hereof) to equal such Xxxxxxx Member’s 12% IRR Amount (as of the last day of such Fiscal Year);15%; and
(iv) fourthfinally, subject to Section 4.03(b), 50% to Paladin, and 50% to the Lippert Members, pro rata, in proportion to their respective Percentage InterestsDFP. For purposes of determining the amount of Net Profits to be allocated pursuant to Section 4.01(a)(ii) and (iii) for any Fiscal Year, the Capital Account of each Member shall be increased by such Member’s share of “partnership minimum gain” as of the last day of such Fiscal Year, determined pursuant to Section 1.704-2(g)(1) of the Treasury Regulations, and by such Member’s share of “partner nonrecourse debt minimum gain” as of the last day of such Fiscal Year, determined pursuant to Section 1.704-2(i)(5) of the Treasury Regulations.
Appears in 1 contract
Samples: Operating Agreement (Paladin Realty Income Properties Inc)
Net Profits. After application of Sections 4.02 and 4.03, Net Profits for each Fiscal Year shall be allocated among the Members in the following order and priority:
(i) first, to the Members, in proportion to and to the extent of the amounts necessary to cause the cumulative allocations balances of Net Profits to each Member under this Section 4.01(a)(i) for of the current and all prior Fiscal Years to equal the cumulative allocations of Net Losses to such Member pursuant to Section 4.01(b)(iv) hereof;
(ii) second, to Paladin, until the balance of Paladin’s Members’ Capital Account Accounts (as of the last day of such Fiscal Year, but adjusted to reflect any Net Profits items of income, gain, loss or deduction for such Fiscal Year allocated to Paladin such Member pursuant to Section 4.01(a)(i) and Section 4.02 and 4.03 hereof) equals Paladin’s 12% IRR Amount to equal zero (as of the last day of such Fiscal Year);
(iiiii) thirdsecond, to the Xxxxxxx Members, in proportion to and to the extent of the amounts that would necessary to cause the balances of each of the Xxxxxxx Members’ Capital Accounts (as of the last day of such Fiscal Year, but adjusted to reflect any Net Profits for such Fiscal Year allocated to such Xxxxxxx Member pursuant to Section 4.01(a)(i) and any items of income, gain, loss or deduction for such Fiscal Year allocated to such Member pursuant to Section 4.02 and 4.03 hereof) to equal such Xxxxxxx Member’s 12Unrecovered Contribution Account (as of the last day of such Fiscal Year);
(iii) third, to the Members, in proportion to and to the extent of the amounts that would cause the balances of each of the Members’ Capital Accounts (as of the last day of such Fiscal Year, but adjusted to reflect any Net Profits for such Fiscal Year allocated to such Member pursuant to Section 4.01(a)(i) and (ii) and any items of income, gain, loss or deduction for such Fiscal Year allocated to such Member pursuant to Section 4.02 and 4.03 hereof) to equal such Member’s 15% IRR Amount (as of the last day of such Fiscal Year);
(iv) fourth, subject fifty percent (50%) to Section 4.03(b), Paladin and fifty percent (50% to Paladin, and 50% %) to the Lippert Northview Members, pro ratarata in accordance with their respective Percentage Invests, or if a Cash Flow Bonus Forfeiture Event exists, to the Members pro rata in proportion to accordance with their respective Percentage Interests. For purposes of determining , until the amount of Net Profits to be allocated pursuant to Section 4.01(a)(ii) and (iii) for any Fiscal Year, the Capital Account balance of each Member shall be increased by such Member’s share of “partnership minimum gain” the Members’ Capital Accounts (as of the last day of such Fiscal Year, determined but adjusted to reflect any Net Profits for such Fiscal Year allocated to such Members pursuant to Section 1.704-2(g)(14.01(a)(i) through (iii) and any items of the Regulationsincome, gain, loss or deduction for such Fiscal Year allocated to such Member pursuant to Section 4.02 and by 4.03 hereof) equal or exceed such Member’s share of “partner nonrecourse debt minimum gain” 18% IRR Amount (as of the last day of such Fiscal Year, determined pursuant to Section 1.704-2(i)(5) of the Regulations.);
Appears in 1 contract
Samples: Operating Agreement (Paladin Realty Income Properties Inc)
Net Profits. After application of Sections 4.02 and 4.03, Net Profits for each Fiscal Year shall be allocated among the Members in the following order and priority:
(i) first, to the Members, in proportion to and to the extent of the amounts necessary to cause the cumulative allocations of Net Profits to each Member under this Section 4.01(a)(i) for the current and all prior Fiscal Years to equal the cumulative allocations of Net Losses to such Member pursuant to Section 4.01(b)(iv) hereof;
(ii) second, to Paladin, until the balance of Paladin’s Capital Account (as of the last day of such Fiscal Year, but adjusted to reflect any Net Profits for such Fiscal Year allocated to Paladin pursuant to Section 4.01(a)(i) and Section 4.02 and 4.03 hereof) equals Paladin’s 12% IRR Amount (as of the last day of such Fiscal Year);
(iii) third, to the Xxxxxxx Members, in proportion to and to the extent of the amounts that would cause the balances of each of the Xxxxxxx Members’ Capital Accounts (as of the last day of such Fiscal Year, but adjusted to reflect any Net Profits for such Fiscal Year allocated to such Xxxxxxx Member pursuant to Section 4.01(a)(i) and Section 4.02 and 4.03 hereof) to equal an amount which, if distributed to such Xxxxxxx Member’s 12Members and added to all other actual distributions to the Members, would cause Paladin to receive a 15% IRR Amount on all Capital Contributions made by Paladin and ERES to receive a 15% IRR on all Class A Capital Contributions made by ERES;
(iii) third, to the Members, in proportion to and to the extent of the excess of (A) the cumulative amounts distributed to each Member pursuant to Section 5.02(c) for the current and all prior Fiscal Years, over (B) the cumulative amounts allocated to each Member pursuant to this Section 4.01(a)(iii) for the current and all prior Fiscal Years;
(iv) fourth, to ERES, until its Capital Account (as of the last day of such Fiscal Year);, but adjusted to reflect any Net Profits for such Fiscal Year allocated to ERES pursuant to Section 4.01(a)(i)-(iii) and Section 4.02 and 4.03 hereof) is equal to an amount which, if distributed to ERES and added to all other actual distributions to ERES, would cause it to achieve a 15% IRR on all Class B Capital Contributions made by ERES; and
(ivv) fourthfinally, subject to Section 4.03(b), 5030% to Paladin, and 5070% to the Lippert Members, pro rata, in proportion to their respective Percentage InterestsERES. For purposes of determining the amount of Net Profits to be allocated pursuant to Section 4.01(a)(ii) and (iii) for any Fiscal Year, the Capital Account of each Member shall be increased by such Member’s share of “partnership minimum gain” as of the last day of such Fiscal Year, determined pursuant to Section 1.704-2(g)(1) of the Regulations, and by such Member’s share of “partner nonrecourse debt minimum gain” as of the last day of such Fiscal Year, determined pursuant to Section 1.704-2(i)(5) of the Regulations.
Appears in 1 contract
Samples: Operating Agreement (Paladin Realty Income Properties Inc)