Common use of Minimum Distributions Clause in Contracts

Minimum Distributions. Notwithstanding the foregoing, if any Member is allocated income which exceeds, on a cumulative basis, the amount of losses previously allocated to such Member for tax purposes (the “Excess Income Allocation”), then the Company shall distribute amounts in accordance with Membership Interests so that each Memer receives at least the “Minimum Distribution”. The Minimum Distribution is the amount, if any, by which (i) the Excess Income Allocation multiplied by the combined maximum federal and state income tax rates applicable to such Member (reduced to reflect the maximum federal tax benefit from the deduction of state income taxes), exceeds (ii) the amount previously distributed to such Member with respect to the Fiscal Year for which such taxes are payable.