Common use of Adjustments of Capital Accounts Clause in Contracts

Adjustments of Capital Accounts. The Capital Accounts of the Members may at the discretion of the Managing Member, be adjusted in accordance with Regulation section 1.704-1(b)(2)(iv)(f), and thereafter maintained in accordance with Regulation section 1.704-1(b)(2)(iv)(g), to reflect the fair market value of Company property whenever an interest in the Company is relinquished to the Company, whenever an Additional Member is admitted to the Company and the amount of capital contributed by such Member upon its admission is more than de minimis and reflects changes in the value of Company assets, and upon a liquidation of the Company, and shall be adjusted in accordance with Regulation section 1.704-1(b)(2)(iv)(e) in the case of a distribution of more than a de minimis amount of property (other than cash).