Annual Tax Distributions. For purposes of Section 7.2, the Annual Tax Distributions payable with respect to any Fiscal Year shall equal the amount which if a positive number is the lesser of the following calculations: (i) the product of the actual net federal and state income taxes by each member incurred on the Taxable Income of the Company in such Fiscal Year, and (ii) the actual net federal and state income taxes by each Member incurred on the cumulative positive or negative Taxable Income of the Company for all previous Fiscal Years of the Company and such Fiscal Year, it being the intent of this section that no Annual Tax Distribution shall be made with respect to Taxable Income which is, on a net basis, offset by negative Taxable Income in prior Fiscal Years.
Appears in 4 contracts
Samples: Participation and Operating Agreement (Ruby Tuesday of Bryant, Inc.), Participation and Operating Agreement (Ruby Tuesday of Bryant, Inc.), Participation And (Ruby Tuesday of Bryant, Inc.)
