Common use of WITHHOLDING AND COMPANY TAXES Clause in Contracts

WITHHOLDING AND COMPANY TAXES. (a) The Company in its discretion may withhold and pay any taxes with respect to any Member, and any such taxes may be withheld from any distribution otherwise payable to such Member. If no sufficiently large distribution is imminent, the Board may require the relevant Member promptly to reimburse the Company for the amount of any such tax payable by the Company on behalf of such Member and, if such tax has already been paid by the Company, interest thereon at a floating rate of interest equal to Prime plus two percent (2%) per annum, or such other commercially reasonable rate as determined by the Board in its discretion, from the date of such tax payment until but not including the date such amount is reimbursed by such Member. No such reimbursement will be considered a capital contribution for purposes of this Agreement, nor shall any requirement that any such reimbursement be paid be considered a capital call.

WITHHOLDING AND COMPANY TAXES. (a) The Company in its discretion may withhold and pay any taxes with respect to any Member, and any such taxes may be withheld from any distribution otherwise payable to such Member. If no sufficiently large distribution is imminent, the Board Managing Member may require the relevant Member promptly to reimburse the Company for the amount of any such tax payable by the Company on behalf of such Member and, if such tax has already been paid by the Company, interest thereon at a floating rate of interest equal to Prime plus two percent (2%) per annum, or such other commercially reasonable rate as determined by the Board Managing Member in its discretion, from the date of such tax payment until but not including the date such amount is reimbursed by such Member. No such reimbursement will be considered a capital contribution Capital Contribution for purposes of this Agreement, nor shall any requirement that any such reimbursement be paid be considered a capital callDrawdown.