Common use of Distribution for Taxes Clause in Contracts

Distribution for Taxes. To the extent the Members determine the Company has Available Cash in any period with respect to which taxes or estimated taxes are due, the Company shall promptly declare and make cash distributions pursuant hereto to the Members to allow the federal income tax (including, without limitation, estimated tax payments) attributable to the Company’s taxable income allocable to the Members to be paid by such Members when due (each, a “Due Date”). To satisfy this requirement, the Company shall pay on or before thirty (30) days prior to each Due Date (any such payment a “Tax Distribution”), an amount equal to the product of (i) the Company’s positive taxable income attributed to its Members during the relevant period multiplied by (ii) the highest applicable federal income tax rate for individuals for the fiscal year in which the relevant period falls. Tax Distributions shall be made to the Members in proportion to the taxable income allocated to them in the relevant period. Any distribution made pursuant to this Section 7.2 shall be treated as an advance on any distributions made pursuant to Section 7.1 and Section 16.2(b).

Distribution for Taxes. To the extent the Members determine the Company has Available Cash in any period with respect to which taxes or estimated taxes are due, the Company shall promptly declare and make cash distributions pursuant hereto to the Members to allow the federal income tax (including, without limitation, estimated tax payments) attributable to the Company’s taxable income allocable to the Members to be paid by such Members when due (each, a “Due Date”). To satisfy this requirement, the Company shall pay on or before thirty (30) days prior to each Due Date (any such payment a “Tax Distribution”), an amount equal to the product of (i) the Company’s positive taxable income attributed to its Members during the relevant period multiplied by (ii) the highest applicable federal income tax rate for individuals for the fiscal year in which the relevant period falls. Tax Distributions shall be made to the Members in proportion to the taxable income allocated to them in the relevant period. Any distribution made pursuant to this Section 7.2 shall be treated as an advance on any distributions made pursuant to Section 7.1 and Section 16.2(b).) ..