Common use of Tax Amount Clause in Contracts

Tax Amount. The Company's "Tax Amount" for a Taxable Year shall be the federal, state, and local income taxes which would be payable by the Company if the Company were taxed for such Taxable Year at the highest marginal federal, state and local corporate income tax rate applicable to any Member on the Company's taxable income for the Taxable Year (computed as if the Company had elected to carry forward all loss and credit carryovers, taking into account the character of any loss and credit carry forward as a capital or ordinary loss). The amounts in respect of tax withholding on payments to or from the Company for which Members or Economic Owners (or owners directly or indirectly of such Members or Economic Owners) are credited under applicable tax law shall be credited against payments of the Tax Amount to such Members or Economic Owners. The Company's Tax Amount shall be determined initially by the Managing Member on the basis of figures set forth on IRS Form 1065 filed by the Company and the similar state or local forms filed by the Company but shall be subject to subsequent adjustment pursuant to audit, litigation, settlement, amended return, or the like.