ADDITIONAL MEMBER LOANS Clause Samples

ADDITIONAL MEMBER LOANS. In addition to the Member loans permitted by SECTION 10.2, in the event that the initial Capital Contributions required to be made pursuant to SECTION 3.2B are not reasonably adequate for the operations of the Company consistent with the projections set forth on EXHIBIT D, AAi agrees to arrange for, or if necessary provide, loans to finance operations during the remaining period of such projections. Any such loans provided by AAi shall bear interest at an annual rate of interest equal to its cost of funds and shall be upon such other terms and conditions (including interest, fees, etc.) as the Company and AAi shall determine, including without limitation that such loans may be secured by a security interest in any or all assets of the Company. In the event that AAi makes a loan pursuant to this SECTION 3.3, the principal amount of such loan and any interest and other amounts accrued thereon shall be repaid in its entirety prior to the making of any distributions to any Member other than the a minimum distribution of Cash Flow equal to the Tax Distribution as provided in the second sentence of SECTION 5. 1. In the event that AAi arranges for its Lender to make loans directly to the Company, the Company shall provide any necessary guarantees or cross-collateralization of AAi's loan from the Lender, or may be required by the Lender.