Common use of Guaranteed Payment Clause in Contracts

Guaranteed Payment. (a) The Company shall make a Guaranteed Payment to the Managing Member, within the meaning of Section 707(c) of the Code, for the use of capital contributed to the Company by the Managing Member, in an amount equal to One Million Dollars ($1,000,000) per annum, for the period between the date hereof and the fifth anniversary hereof for a total of Five Million Dollars ($5,000,000). (b) If any Guaranteed Payment is not paid on the due date thereof (other than by reason of the Managing Member's failure to cause the Company to pay it notwithstanding the availability of sufficient funds therefor), the amount of such Guaranteed Payment shall accrue interest at the prime rate of interest charged by Bank of America, N.A. to its most creditworthy customers, compounded annually, from the due date thereof to the date same is actually paid. (c) All payments required under this Section 3.8 shall be made in dollars by wire transfer of federal funds to an account designated by the Managing Member or by certified or official bank check or checks in New York Clearing House or similar next day funds payable to the order of the Managing Member. (d) If the Managing Member shall cease to be the Managing Member under this Agreement, then, from and after the date of such cessation, the Guaranteed Payment shall cease accruing to the Managing Member hereunder.

Guaranteed Payment. (a) The Company shall make a Guaranteed Payment to the Managing MemberMem ber, within the meaning of Section 707(c) of the Code, for the use of capital contributed to the Company by the Managing Member, in an amount equal to One Million Dollars ($1,000,000) per annum, for the period between the date hereof and the fifth anniversary hereof for a total of Five Million Dollars ($5,000,000). (b) If any Guaranteed Payment is not paid on the due date thereof (other than by reason of the Managing Member's failure to cause the Company to pay it notwithstanding the availability of sufficient funds therefor), the amount of such Guaranteed Payment shall accrue interest at the prime rate of interest charged by Bank of America, N.A. to its most creditworthy customers, compounded annually, from the due date thereof to the date same is actually paid. (c) All payments required under this Section 3.8 shall be made in dollars by wire transfer of federal funds to an account designated by the Managing Member or by certified or official bank check or checks in New York Clearing House or similar next day funds payable to the order of the Managing Member. (d) If the Managing Member shall cease to be the Managing Member under this Agreement, then, from and after the date of such cessation, the Guaranteed Payment shall cease accruing to the Managing Member hereunder.