Common use of Minimum Distribution Clause in Contracts

Minimum Distribution. Notwithstanding Section 9.01 and to the extent there are funds available, if Net Profit is allocated to the Investors under Article 8 for any Taxable Period, the Directors shall endeavor, within ninety (90) days following the close of the Taxable Period for which the Net Profit is allocated, to make a distribution out of Cash and Securities Available for Distribution to all Investors and the Investment Manager that, when added to all other distributions made to such Investors during such Taxable Period (exclusive of distributions under this Section 9.02 for the previous Taxable Periods), will be in an amount sufficient to meet the federal and state tax liability of each Investor, calculated for purposes of this Section 9.02 as if such Investor were taxable on the Net Profit allocated for the Taxable Period at the highest combined federal and California income tax rates applicable to individuals, assuming that California income taxes are deductible for federal income tax purposes, and taking into account any special rates that apply to ordinary income and capital gains included in Fund taxable income for the Taxable Period. To the extent that the Investment Managers or their principals may be expected to make estimated tax payment for any period other than a Taxable Period, the capital Net Profit fee for such period shall be estimated as required by the IRC, and the Minimum Distribution, calculated in the same manner as above, shall be paid to the Investment Manager sufficiently in advance that Investment Managers could make such estimated tax payments.