Common use of Distributions for Tax Liabilities Clause in Contracts

Distributions for Tax Liabilities. Except for distributions or redemptions approved in writing by Lender, declare or pay any dividend on, or make any other distribution with respect to (whether by reduction of capital or otherwise), any of its membership units or make any advances or loans to members. Lender consents to annual distributions to the members of each Borrower sums sufficient to pay each such members’ state and federal tax liability, directly related to said members’ ownership interest in the respective Borrower.

Distributions for Tax Liabilities. Except for distributions or redemptions approved in writing by Lender, declare or pay any dividend on, or make any other distribution with respect to (whether by reduction of capital or otherwise), any of its membership units or make any advances or loans to members. Lender consents to annual quarterly distributions to the members of each Borrower of sums sufficient to pay each such members’ state and federal tax liability, directly related to said members’ ownership interest in the respective Borrower.Borrower (“Permitted Tax Distributions”). STINGRAY PRESSURE PUMPING, LLC PAGE 21 LOAN AND SECURITY AGREEMENT