Profits Interest. The Incentive Units and the Corresponding Incentive Units are intended to constitute a “profits interest” for all U.S. federal income tax purposes. A profits interest is granted in connection with the performance of services and is a right to receive distributions funded solely by the profits of the Company and Management LLC, respectively, which are generated after the grant. As such, the Board of Management LLC shall, if necessary, limit distributions and allocations of profits to the Participant so that such distributions and allocations do not exceed the available profits in respect of such Participant’s related profits interest.
Appears in 4 contracts
Samples: Employment Agreement (Oak Street Health, Inc.), Employment Agreement (Oak Street Health, Inc.), Incentive Unit Award and Contribution Agreement (Oak Street Health, Inc.)
