Common use of ALLOCATIONS TO CONFORM TO TARGET CAPITAL ACCOUNTS Clause in Contracts

ALLOCATIONS TO CONFORM TO TARGET CAPITAL ACCOUNTS. If the Capital Account of a Partner at the end of any fiscal year as determined by the application of Articles I and III differs from that Partner's Target Capital Account, the allocations provided for in Article I of this Appendix shall be modified so that each Partner's Capital Account shall equal its Target Capital Account. Modification pursuant to the preceding sentence shall be subject to the requirements that (i) the ceiling rule as set forth in Code Section 1.704-1(c)(2) as it may be applied by the Internal Revenue Service will not be violated and (ii) the provisions of Article III of this Appendix may not be violated. Subject to the foregoing, the modifications required hereunder shall be made by first reallocating Net Income or Net Loss, as the case may be, and then reallocating Gain or Net Loss from a Capital Transaction, as the case may be, and then by reallocating Depreciation.

ALLOCATIONS TO CONFORM TO TARGET CAPITAL ACCOUNTS. If the Capital Account of a Partner at the end of any fiscal year Fiscal Year as determined by the application of Articles I and III differs from that Partner's Target Capital Account, the allocations provided for in Article I of this Appendix shall be modified so that each Partner's Capital Account shall equal its Target Capital Account. Modification pursuant to the preceding sentence shall be subject to the requirements that (i) the ceiling rule as set forth in Code Section 1.704-1(c)(2) as it may be applied by the Internal Revenue Service will not be violated and (ii) the provisions of Article III of this Appendix may not be violated. Subject to the foregoing, the modifications required hereunder shall be made by first reallocating Net Income or Net Loss, as the case may be, and then reallocating Gain or Net Loss from a Capital Transaction, as the case may be, and then by reallocating Depreciation.

ALLOCATIONS TO CONFORM TO TARGET CAPITAL ACCOUNTS. If the Capital Account of a Partner Venturer at the end of any fiscal year as determined by the application of Articles Article I and III differs from that PartnerVenturer's Target Capital Account, the allocations provided for in Article I of this Appendix shall be modified so that each PartnerVenturer's Capital Account shall equal its Target Capital Account. Modification pursuant to the preceding sentence shall be subject to the requirements that (i) the ceiling rule as set forth in Code Section 1.704-1(c)(21(a)(2) as it may be applied by the Internal Revenue Service will not be violated and (ii) the provisions of Article III of this Appendix may not be violated. Subject to the foregoing, the modifications required hereunder shall be made by first reallocating Net Income or Net Loss, as the case may be, and then reallocating Gain or Net Loss from a Capital Transaction, as the case may be, Transaction and then next by reallocating DepreciationDepreciation and then, if necessary, by reallocating Items of Net Income and Net Loss but the allocation of Non-recourse Deductions in Article I shall not be modified.