can you please show work and give a reasonable answer.
The language below is taken directly from a partnership agreement for a hotel project. Members" are the members of a limited liability company formed to invest in this hotel. "Manager" is the person who put this deal together. This section deals with how they will make distributions of cash to the parties who are in this investment. 6.05(a) says that they will first get back their investment. This includes the manager because he is also an investor. So, for example, if the initial investments were $12 Million by investors and $500,000 by the manager, they will first get back these original investments. 6,05(b) says that th return For example this might be a Lusing **g paragraph, the in $30,000 UZO ULIC HIVestment). my 6.05( ca. restmep cash This continues nvestment. mvestors So notice that the manager, who put the deal together, selected the site, designed the hotel and oversaw construction, and manages the property, gets an increasing share of cash as the deal generates a higher IRR. EXPLAIN WHY THIS WOULD BE DONE - WHY WOULD INVESTORS GO FOR THIS?? 6.05 Distributions of Distributable Cash by the Company. Subject to applicable law and any limitations contained elsewhere in this Agreement, the Manager may elect from time to time to distribute Distributable Cash to the Members, which distributions shall be in the following order of priority: (a) To the Members in proportion to their unreturned Capital Contributions until each Member has recovered his, her or its Capital Contributions; To the Members which five percent E ternal rate The language below is taken directly from a partnership agreement for a hotel project. Members" are the members of a limited liability company formed to invest in this hotel. "Manager" is the person who put this deal together. This section deals with how they will make distributions of cash to the parties who are in this investment. 6.05(a) says that they will first get back their investment. This includes the manager because he is also an investor. So, for example, if the initial investments were $12 Million by investors and $500,000 by the manager, they will first get back these original investments. 6,05(b) says that th return For example this might be a Lusing **g paragraph, the in $30,000 UZO ULIC HIVestment). my 6.05( ca. restmep cash This continues nvestment. mvestors So notice that the manager, who put the deal together, selected the site, designed the hotel and oversaw construction, and manages the property, gets an increasing share of cash as the deal generates a higher IRR. EXPLAIN WHY THIS WOULD BE DONE - WHY WOULD INVESTORS GO FOR THIS?? 6.05 Distributions of Distributable Cash by the Company. Subject to applicable law and any limitations contained elsewhere in this Agreement, the Manager may elect from time to time to distribute Distributable Cash to the Members, which distributions shall be in the following order of priority: (a) To the Members in proportion to their unreturned Capital Contributions until each Member has recovered his, her or its Capital Contributions; To the Members which five percent E ternal rate
