Common use of Determination of Tax Amount Clause in Contracts

Determination of Tax Amount. For purposes of Section 4.1(a)(iv), the "Tax Amount" of a Member holding a Common Interest means, the sum of such Member's tax liabilities for all previous Fiscal Years, determined in accordance with, and subject to, the following: (i) The tax liability of a Member holding a Common Interest for any Fiscal Year shall be the greater of such Member's Regular Tax Liability or its AMT Liability for such Fiscal Year. (ii) The "Regular Tax Liability" of a Member holding a Common Interest for any Fiscal Year shall be determined separately for ordinary income and each character of capital gain income to which separate federal income tax rates may apply, and for each such type of income shall be computed as the product of (A) the excess of (1) the aggregate amount of taxable income (if any) allocated to such Member with respect to its Common Interest in such Fiscal Year over (2) the aggregate amount of taxable losses (if any) allocated to such Member with respect to its Common Interest for all prior Fiscal Years since the beginning of the Company and not previously taken into account for purposes of computing such Member's Tax Amount, and (B) the highest marginal combined federal, state, and local tax rate (taking into count the provisions of Code Section 68) imposed on an individual resident in New York City for income of such type.

Determination of Tax Amount. For purposes of Section 4.1(a)(iv), the --------------------------- "Tax Amount" of a Member holding a Common Interest means, the sum of such Member's tax liabilities for all previous Fiscal Years, determined in accordance with, and subject to, the following: (i) The tax liability of a Member holding a Common Interest for any Fiscal Year shall be the greater of such Member's Regular Tax Liability or its AMT Liability for such Fiscal Year. (ii) The "Regular Tax Liability" of a Member holding a Common Interest for any Fiscal Year shall be determined separately for ordinary income and each character of capital gain income to which separate federal income tax rates may apply, and for each such type of income shall be computed as the product of (A) the excess of (1) the aggregate amount of taxable income (if any) allocated to such Member with respect to its Common Interest in such Fiscal Year over (2) the aggregate amount of taxable losses (if any) allocated to such Member with respect to its Common Interest for all prior Fiscal Years since the beginning of the Company and not previously taken into account for purposes of computing such Member's Tax Amount, and (B) the highest marginal combined federal, state, and local tax rate (taking into count the provisions of Code Section 68) imposed on an individual resident in New York City for income of such type.