Common use of Minimum Distribution Clause in Contracts

Minimum Distribution. With respect to any taxable year of the Company in which Members are allocated taxable income for federal income tax, the Company shall attempt to distribute to the Members, within 90 days after the close of that taxable year, amounts sufficient to cover the federal, state and local income tax liability of each Member. Nothing herein shall require the Company to borrow money or reduce its cash flow so as to restrict its ability to operate the day-to-day activities of the business in order to make such distributions.