Distribution of Net Income Clause Samples
The "Distribution of Net Income" clause defines how the net profits of a business or partnership are allocated among its members or stakeholders. Typically, this clause outlines the method for calculating net income—such as deducting expenses from gross revenue—and specifies the timing and proportion of distributions to each party, which may be based on ownership percentages or another agreed formula. Its core practical function is to ensure transparency and fairness in profit sharing, thereby reducing disputes and clarifying expectations regarding financial returns.
Distribution of Net Income. A. All Net Income, if any, of the Partnership for each calendar year shall be distributed in the following order of priority:
(i) Each Limited Partner shall be paid at least annually (with respect to such Limited Partner's Capital Contribution), from time to time, a total amount of cash equal to the product of Net Income times a percentage, calculated annually, which shall equal the product of the following three factors: (a) one-fourth of one percent (.0025) multiplied by (b) the quotient of $1,900,000 divided by the sum of the General Partners' Adjusted Capital Contributions multiplied by (c) the quotient of the total Capital Contribution of the respective Limited Partner divided by $25,000. This calculation of percentage of participation shall be made at the end of each calendar year and used in distributing Net Income earned during the following year. Notwithstanding the foregoing, for the year 1987 each Limited Partner shall be paid (with respect to such Limited Partner's Capital Contribution) a total amount of cash equal to the product of Net Income times a percentage which shall equal the product of the following three factors: (a) one-fourth of one percent (.0025) multiplied by (b) the quotient of $1,900,000 divided by $24,251,182 multiplied by (c) the quotient of the total Capital Contribution of the respective Limited Partner divided by $25,000.
(ii) Each Class I Subordinated Limited Partner shall be paid within 30 days after the end of each calendar quarter (on a non-cumulative basis) an amount of cash equal to 25% of the product of (a) the one year Constant Maturity Treasury Rate as currently disclosed in the Federal Reserve Statistical Released H.15 (the "Treasury Rate") plus 150 basis points times (b) the current Capital Contribution of the Class I Subordinated Limited Partner. The applicable Treasury ▇▇▇▇ Rate shall be the Treasury ▇▇▇▇ Rate as stated for the week ended just prior to or on the last business day of the preceding calendar year; provided however that no such payment shall be made to any Class I Subordinated Limited Partner if for the prior calendar quarter the Partnership did not have Net Income sufficient to pay the full amount due all Class I Subordinated Limited Partners pursuant to this Section 8.1A(ii). If any payment is not made, as herein above provided, the Partnership shall never be required to make such missed payment in the future. No payment made pursuant to this Section 8.1A(ii) shall be considered a guaranteed pay...
Distribution of Net Income. Initial distribution of net income will occur within six (6) months of receipt of proceeds from marketing and/or commercialization of intellectual property. Subsequent distribution will be made semi-annually on or about June 1 and December 1 each year. If an infringement suit or claim of patent or copyright invalidity is brought against the University, external intermediary, and/or Creator during the life of the patent or copyright, the net income distribution attributable to that patent or copyright may be halted during the pendency of the suit, and adjusted accordingly for expenses from defending such suits or claims, and for any settlement or judgment.
Distribution of Net Income. (a) The Board of Governors shall determine annually what part of the Fund's net income shall be placed to reserve and what part, if any, shall be distributed.
(b) If any distribution is made, there shall first be distributed a two percent non-cumulative payment to each member on the amount by which seventy-five percent of its quota exceeded the Fund's average holdings of its currency during that year. The balance shall be paid to all members in proportion to their quotas. Payments to each member shall be made in its own currency.
Distribution of Net Income. An amount equal to 50% of the Distributable Net Income (as hereinafter defined) shall be distributed to each party from time to time, as determined by the Management Committee. "Distributable Net Income" for any period shall mean the excess, if any, of (i) the net income (computed without regard to any deduction for depreciation of Venture assets) for such period over (ii) the aggregate net losses for all prior periods to the extent not offset against net income for prior periods in computing "Distributable Net Income" for such prior periods.
Distribution of Net Income. Client shall cause the Net Income of the Proposed Project to be distributed as follows: First, until the first $3,000,000.00 of the EB‐5 Financing is returned to the EB‐5 investors, 80% of the cash will be returned to the EB‐5 investors and 20% to owners of the Owner Entity. Second, after the first $3,000,000.00 of the EB‐5 Financing is returned to the EB‐5 investors and until the entire amount of the EB‐5 Financing has been returned to the EB‐5 investors, 70% of the cash will be returned to the EB‐5 investors and 30% to owners of the Owner Entity. Third, after the entire amount of the EB‐5 Financing has been returned to the EB‐5 investors, 100% of the cash will be returned to owners of the Owner Entity.
Distribution of Net Income. Article 36 After approval of the annual report, the net income of the Bank shall be distributed at the discretion of the Council of the Bank and may be added to the reserve capital or used for other purposes.
Article 37 The procedure for admission of new members and withdrawal from the Bank is defined in Articles VII and IX of the Agreement.
Distribution of Net Income. While the Surviving Settlor is living, the Trustees shall pay to or use and apply for the benefit of the Surviving Settlor all of the net income (including all income received or accrued subsequent to the Deceased Settlor’s death with respect to property passing into the SURVIVOR’S TRUST), in monthly or other convenient installments, but not less frequently than annually.
Distribution of Net Income. The Trustee shall distribute the Trust’s net income in accordance with the terms of the Trust Deed unless all Unitholders, by prior unanimous resolution, otherwise agree. OR 9 Distribution of Net Income at Year-End The Unitholders agree that at 30 June each year, each Unitholder shall be presently entitled to a share of the Trust’s net income as follows (unless otherwise agreed unanimously in writing by the Unitholders): each Unitholder shall (after provision has been made for the payment of costs of the Trust by the Unitholders in equal shares or as otherwise agreed between the Unitholders in writing) be entitled to receive such proportion of the balance of the net income of the Trust as has been generated by each respective Unitholder’s Representative; and
Distribution of Net Income. Distribution to Owner will be net of Agent's commissions, advertising and/or other authorized expenses, as well as Hawaii State General Excise Tax to which Agent will pay on behalf of Owner, if so instructed in writing, as long as Agent is holding sufficient funds in the Owner’s account. Such net income will be disbursed to the Owner by the 15th day of each month unless Owner instructs payment on a later date, or Tenant fails to pay rent on time. Any deposits made after the 15th will be reflected in the following month.
Distribution of Net Income. AGENT shall deduct reimbursements for authorized expenditures (as detailed in the Disbursements & Expenses Addenda) and AGENT's fees from gross rental income received. Deductions shall be made as necessary to maintain the required reserves of $500.00 plus additional funds to cover one month’s worth of expenses in the trust account at all times to meet contingency requirements. To the extent that there are amounts available for distribution AGENT is authorized and shall deposit distributions of income to OWNER's account via secured EFT (Electrical Funds Transfer) or ACH (Automatic Clearing House) to a US bank account which shall be provided by OWNER. For long term rentals, net proceeds of rents collected shall be disbursed to OWNER BY ACH between the FITHTENTH and TWENTYFIFTH of the same month, and BY CHECK between the FIRST and SEVENTH of the next month (after month period ends). For short term rentals, net proceeds will be disbursed to the OWNER for the calendar month prior between the FIFTH and TWELTH of the next month.