Common use of Distributions from Operations Clause in Contracts

Distributions from Operations. At various times during a calendar year, the Fund will determine whether there is enough Available Cash From Operations for a distribution to Shareholders. The amount of Available Cash From Operations determined to be available, if any, will be distributed to the Shareholders. At all times, the Manager will be entitled to 15% and Investors will be entitled to 85% of the Available Cash From Operations distributed. Distributions of Available Cash From Dispositions Available Cash From Dispositions that the Fund decides to distribute will be paid as follows: o Before Investors have received total distributions (including distributions from Available Cash From Operations and Available Cash From Dispositions) equal to their Capital Contributions, 99% of Available Cash From Dispositions will be distributed to Investors and 1% to the Manager. o After Investors have received total distributions (including Available Cash From Operations and Available Cash From Dispositions) equal to their Capital Contributions, 85% of Available Cash From Dispositions will be distributed to Investors and 15% to the Manager. General Distribution Provisions Distributions to Investors under the foregoing provisions will be apportioned among them in proportion to their ownership of Investor Shares. The Manager has the sole discretion to determine the amount and frequency of any distributions; provided, however, that a distribution may not be made selectively to one Shareholder or group of Shareholders but must be made ratably to all Shareholders entitled to that type of distribution at that time. The Manager in its discretion nevertheless may credit select persons with a portion of its compensation from the Fund or distributions otherwise payable to the Manager. Because distributions, if any, will be dependent upon the earnings and financial condition of the Fund, its anticipated obligations, the Manager's discretion and other factors, there can be no assurance as to the frequency or amounts of any distributions that the Fund may make. Return of Capital Contributions If the Fund for any reason at any time does not find it necessary or appropriate to retain or expend all Capital Contributions, in its sole discretion it may return any or all of such excess Capital Contributions ratably to Investors. A return of Capital Contributions is not treated as a distribution. The Fund and the Manager will not be required to return any fees deducted from the original Capital Contribution or any costs and expenses incurred and paid by the Fund. The Investors will be notified of the source of the payment. Any such return of capital will decrease the Investors' Capital Contributions. Capital Accounts and Allocations The tax consequences of an investment in the Fund to a Shareholder in the event of dissolution depend on the Shareholder's capital account and on the allocations of profits and losses to that account. The Fund's taxable profits or losses are allocated among the Shareholders as described below and profits or losses are added to or subtracted from the Shareholders' capital accounts. The amounts allocated to each Shareholder will generally not be equal to the distributions the Shareholder receives until final liquidating distributions are made to Shareholders. Each Shareholder will have a capital account, which will have an initial balance equal to the Shareholder's Capital Contribution. Capital accounts will be adjusted in accordance with Regulations under Code Section 704. The capital account balance will be increased by any additional Capital Contributions by the Shareholder and by profits allocated to the Shareholder; it will be decreased by the amount of distributions to the Shareholder, returns of capital and by losses allocated to the Shareholder. Contributions of property by a Shareholder, if any, or distributions of property to a Shareholder, if any, are valued at fair market value, net of liabilities. The Fund does not currently anticipate that any contributions or distributions of property will be made. Certain additional adjustments to capital accounts will be made if necessary to account for the effects of non-recourse debt incurred by the Fund, if any, or contributions of property, if any, to the Fund. See Tax Aspects - Allocations. For any year, profits and losses are allocated in accordance with Articles 4 and 7 of the LLC Agreement. In general, profits and losses in any year are allocated 85% to Investors and 15% to the Manager. The primary exception to this treatment is that all items of expense, loss, deduction and credit attributable to the expenditure of Investor's Capital Contributions are allocated 99% to Investors and 1% to the Manager.

Distributions from Operations. At various times during a calendar year, the Fund will determine whether there is enough Available Cash From Operations for a distribution to Shareholders. The amount of Available Cash From Operations determined to be available, if any, excluding any amounts distributable as an Early Investment Incentive, will be distributed to the Shareholders. At all times, the Manager will be entitled to 15% and Investors will be entitled to 85% of the Available Cash From from Operations distributeddistributed (other than distributions attributable to the Early Investment Incentive). Distributions of Available Cash From Dispositions Capital Transactions Available Cash From Dispositions Capital Transactions that the Fund decides to distribute will be paid as follows: o Before Investors have received total distributions (including distributions from Available Cash From Operations and Available Cash From DispositionsCapital Transactions, but excluding distributions attributable to the Early Investment Incentive and distributions of Available Cash from Temporary Investments) equal to their Capital Contributions, 99% of Available Cash From Dispositions Capital Transactions will be distributed to Investors and 1% to the Manager. o After Investors have received total distributions (including Available Cash From Operations and Available Cash From DispositionsCapital transactions, but excluding distributions attributable to the Early Investment Incentive and distributions of Available Cash from Temporary Investments) equal to their Capital Contributions, 85% of Available Cash From Dispositions Capital Transactions will be distributed to Investors and 15% to the Manager. General Distribution Provisions Distributions After payment of the Early Investment Incentive, distributions to Investors under the foregoing provisions will be apportioned among them in proportion to their ownership of Investor Shares. The Manager has the sole discretion to determine the amount and frequency of any distributions; provided, however, that a distribution may not be made selectively to one Shareholder or group of Shareholders but must be made ratably to all Shareholders entitled to that type of distribution at that time. The Manager in its discretion nevertheless may credit select persons with a portion of its compensation from the Fund or distributions otherwise payable to the Manager. Because distributions, if any, will be dependent upon the earnings and financial condition of the Fund, its anticipated obligations, the Manager's discretion and other factors, there can be no assurance as to the frequency or amounts of any distributions that the Fund may make. Return of Capital Contributions If the Fund for any reason at any time does not find it necessary or appropriate to retain or expend all Capital Contributions, in its sole discretion it may return any or all of such excess Capital Contributions ratably to Investors. A return of Capital Contributions is not treated as a distribution. The Fund and the Manager will not be required to return any fees deducted from the original Capital Contribution or any costs and expenses incurred and paid by the Fund. The Investors will be notified of the source of the payment. Any such return of capital will decrease the Investors' Capital Contributions. Capital Accounts and Allocations The tax consequences of an investment in the Fund to a Shareholder in the event of dissolution depend on the Shareholder's capital account and on the allocations of profits and losses to that account. The Fund's taxable profits or losses are allocated among the Shareholders as described below and profits or losses are added to or subtracted from the Shareholders' capital accounts. The amounts allocated to each Shareholder will generally not be equal to the distributions the Shareholder receives until final liquidating distributions are made to Shareholders. Each Shareholder will have a capital account, which will have an initial balance equal to the Shareholder's Capital Contribution. Capital accounts will be adjusted in accordance with Regulations under Code Section 704. The capital account balance will be increased by any additional Capital Contributions by the Shareholder and by profits allocated to the Shareholder; it will be decreased by the amount of distributions to the Shareholder, returns of capital and by losses allocated to the Shareholder. Contributions of property by a Shareholder, if any, or distributions of property to a Shareholder, if any, are valued at fair market value, net of liabilities. The Fund does not currently anticipate that any contributions or distributions of property will be made. Certain additional adjustments to capital accounts will be made if necessary to account for the effects of non-recourse debt incurred by the Fund, if any, or contributions of property, if any, to the Fund. See Tax Aspects - Allocations. For any year, profits and losses are allocated in accordance with Articles 4 and 7 of the LLC Agreement. In general, profits and losses in any year are allocated 85% to Investors and 15% to the Manager. The primary exception to this treatment is that all items of expense, loss, deduction and credit attributable to the expenditure of Investor's Capital Contributions are allocated 99% to Investors and 1% to the Manager.