Common use of Establishment of Reserves Clause in Contracts

Establishment of Reserves. Notwithstanding anything to the contrary in SECTION 9.1 hereof, the board of managers may retain an amount of cash it deems reasonably necessary to satisfy the obligations of the Company on an annual net operating basis including, without limitation, debt payments, legal fees and expenses, audit costs and unforeseen contingencies. Other Company funds that the board of managers determines are not needed for Company reserves or operations shall be distributed to the Members from time to time in the board of managers' sole and absolute discretion in accordance with SECTION 9.1 hereof.