Common use of Nonliquidating Distributions Clause in Contracts

Nonliquidating Distributions. 6.1.1 Subject to section 6.3, the Company and Members agree that for each fiscal year, the Company shall distribute sufficient cash to the Members (pro rata, in accordance with the number of each Member’s Shares) for the Members to timely pay when due (whether in estimated tax payments or with a final tax return, as applicable) all federal, state, and local income taxes resulting from the income of the Company being taxed to the Members due to the partnership tax status of the Company (Tax Distributions). The Company’s obligation to make the Tax Distributions shall be deemed to be a liability of the Company and shall be properly reserved for by the Manager before making any other nonliquidating distributions. For this purpose, the Members will be deemed to pay tax at the highest marginal corporate income tax rate. 6.1.2 Subject also to section 6.3, additional distributions may be made to the Members (pro rata, in accordance with each Member’s respective Shares) in the amounts or forms and at the times determined by the Manager or otherwise by the Members.

Nonliquidating Distributions. 6.1.1 3.1.1 Subject to section 6.33.3, the Company and Members agree that for each fiscal year, the Company shall distribute sufficient cash to the Members (pro rata, in accordance with the number of each Member’s Shares) for the Members to timely pay when due (whether in estimated tax payments or with a final tax return, as applicable) all federal, state, state and local income taxes resulting from the income of the Company being taxed to the Members due to the partnership tax status of the Company (Tax Distributions). The Company’s obligation to make the Tax Distributions shall be deemed to be a liability of the Company and shall be properly reserved for by the Manager Company before making any other nonliquidating distributions. For this purpose, the Members will be deemed to pay tax at the highest marginal corporate income tax rate. 6.1.2 3.1.2 Subject also to section 6.33.3, additional distributions may be made to the Members (pro rata, in accordance with each Membermember’s respective Shares) in the amounts or forms and at the times determined by the Manager or otherwise by the Members.

Nonliquidating Distributions. 6.1.1 Subject to section 6.3, the Company and Members agree that for each fiscal year, the Company shall distribute sufficient cash to the Members (pro rata, in accordance with the number of each Member’s Shares) for the Members to timely pay when due (whether in estimated tax payments or with a final tax return, as applicable) all federal, state, and local income taxes resulting from the income of the Company being taxed to the Members due to the partnership tax status of the Company (Tax Distributions). The Company’s obligation to make the Tax Distributions shall be deemed to be a liability of the Company and shall be properly reserved for by the Manager Company before making any other nonliquidating distributions. For this purpose, the Members will be deemed to pay tax at the highest marginal corporate income tax rate. 6.1.2 Subject also to section 6.3, additional distributions may be made to the Members (pro rata, in accordance with each Member’s respective Shares) in the amounts or forms and at the times determined by the Manager or otherwise by the Members.