THEATER CASH FLOW

THEATER CASH FLOW. The earnings before income taxes, depreciation and amortization from any particular theater (or in the case of the Royal George, from the entire theater complex), calculated in accordance with generally accepted accounting principles, applied on a consistent basis, and before deduction of the incentive fee applicable to that theater or theater complex. Notwithstanding the above, in the case of any capital expenditures with respect to any particular theatre made during the term of this... Agreement, Theatre Cash Flow will be determined after deduction of the cost of the depreciation of such capital expenditure as calculated for book purposes in accordance with generally accepted accounting principles consistently applied. Furthermore, Theater Cash Flow for each Theater will also include all profits and losses made by the Owner (or any one or more of its corporate affiliates) in its capacity as the "producer" or "financier" of any play appearing in such Theater, calculated as follows; First, 100% of cash flow paid to the Owner and/or such one or more affiliates will be applied against the Owner's investment in such play, until such investment has been fully recouped. Thereafter, 100% of cash flow paid to Owner and/or such one or more affiliates will be treated as Theater Cash Flow. In the event that the Owner and/or such one or more affiliates, at the time of the closing of the play, has not recouped its investment, such loss will be deducted from Theater Cash flow for the year in which such show closes. View More