Mandatory Tax Distribution. The Operating Company shall, to the extent that sufficient free cash flow is available, distribute to each Member on a quarterly basis the product of (i) such Member’s share of the Operating Company’s quarterly profits, and (ii) the highest marginal federal income tax rate plus five percent (5%). In the event the Operating Company’s free cash flow is insufficient to fund such distributions, the Operating Company shall make distributions of the free cash flow it has, in proportion to amounts that would otherwise be payable. Notwithstanding the foregoing, any distribution to a Common Member pursuant to this Section 11.4 shall be treated as a non-interest bearing advance of any distribution to which such Common Member might be entitled to receive pursuant to Sections 11.1 or 11.2 of this Agreement, which must be repaid to the extent such Common Members are not subsequently entitled to receive such distributions under Sections 11.1 or 11.2 of this Agreement. Any distributions to which Common Members become entitled to receive pursuant to Sections 11.1 or 11.2 above shall be withheld to repay any of the advances made pursuant to this Section 11.4.
Mandatory Tax Distribution. The Company shall make quarterly distributions of Available Cash in amounts such that, prior to April 15 of each calendar year, each Member has received distributions in aggregate amounts (for the current Fiscal Year and all prior Fiscal Years) which equal not less than the sum for the immediately preceding Fiscal Year and for all prior Fiscal Years of (a) the amount of Profits allocated to such Member for such Fiscal Years, reduced by the amount of Losses allocated to such Member for such Fiscal Years, multiplied by (b) 40%. The Company shall use its commercially reasonable efforts to cause such distributions to be made in a manner which permits such Member to use the proceeds of such distributions to make on a timely basis all required estimated payments of income taxes in respect of the Profits so allocated to such Member.
Mandatory Tax Distribution. To the extent that the Directors have determined that Available Cash exists and is available for distribution, not later than ten (10) days after the end of each fiscal quarter, and thirty (30) days after the end of each fiscal year, the Corporation shall make a distribution to each Shareholder equal to the estimated amount of Corporation income and gain to be allocated to the Shareholders for such fiscal year multiplied by the Highest Rate. All amounts withheld pursuant to the Code or any provisions of state or local income tax law with respect to any payment or distribution to the Shareholders from the Corporation shall be treated as amounts distributed pursuant to this agreement. The distribution to each Shareholder for the last fiscal quarter of each fiscal year shall be increased and/or decreased to account for the three (3) previous fiscal quarter distributions so that the total of the four (4) quarterly distributions shall be equal to the amount of Corporation income and gain allocated to the Shareholder for the fiscal year multiplied by the Highest Rate. The intent of this provision is to distribute sufficient Available Cash to each Shareholder in order to allow each Shareholder to cover such Shareholder’s estimated state and federal tax liability on a year-by-year basis.
Mandatory Tax Distribution. The Company shall make distributions of Available Cash in amounts from time to time such that, prior to April 15 of each calendar year, each Member has received distributions in aggregate amounts (for the current Fiscal Year and all prior Fiscal Years) which equal not less than the sum for the immediately preceding Fiscal Year and for all prior Fiscal Years of (a) the amount of Profits allocated to such Member for such Fiscal Years, reduced by the amount of Losses allocated to such Member for such Fiscal Years, multiplied by (b) 40%. The Company shall use its commercially reasonable efforts to cause such distributions to be made in a manner which permits such Member to use the proceeds of such distributions to make on a timely basis all required estimated payments of income taxes in respect of the Profits so allocated to such Member. For the avoidance of doubt, in all events, any distributions to be made under this Section 8.2 shall be made to the Members solely pro rata according to their Percentage Interests.
Mandatory Tax Distribution. The Operating Company shall, to the extent that sufficient free cash flow is available, distribute to each Member on a quarterly basis the product of (i) such Member’s share of the Operating Company’s quarterly profits, and (ii) the highest marginal federal income tax rate plus five percent (5%). In the event the Operating Company’s free cash flow is insufficient to fund such distributions, the Operating Company shall make distributions of the free cash flow it has, in proportion to amounts that would otherwise be payable.
Mandatory Tax Distribution
