Common use of Capital Accounts Allocations Clause in Contracts

Capital Accounts Allocations. 3.1 A capital account (a “Capital Account”) shall be maintained for each Member in accordance with the regulations under the INTERNAL REVENUE CODE of 1986, as amended (the “Code”). 3.1.1 The Capital Account of each Member shall be increased by (i) the amount of cash contributed to the Company by such Member, (ii) the Book Basis of any assets contributed by such Member to the Company, and (iii) the amount of profits allocated to such Member pursuant to this Section III (including gross items allocated to such Member, as necessary). 3.1.2 The Capital Account of each Member shall be decreased by (i) the amount of all cash distributions to such Member, (ii) the Book Basis of any property distributed to such Member by the Company (net of liabilities that the Member is considered to assume, or take property subject to), (iii) the amount of losses allocated to such Member pursuant to this Section III (including gross items allocated to such Member, as necessary). 3.2 No Member shall be required to restore any negative balance in its Capital Account.

Capital Accounts Allocations. 3.1 A capital account (a “"Capital Account”") shall be maintained for each Member in accordance with the regulations under the INTERNAL REVENUE CODE Internal Revenue Code of 1986, as amended (the “"Code”"). 3.1.1 The Capital Account of each Member shall be increased by (i) the amount of cash contributed to the Company by such Member, (ii) the Book Basis of any assets contributed by such Member to the Company, and (iii) the amount of profits allocated to such Member pursuant to this Section III (including gross items allocated to such Member, as necessary). 3.1.2 The Capital Account of each Member shall be decreased by (i) the amount of all cash distributions to such Member, (ii) the Book Basis of any property distributed to such Member by the Company (net of liabilities that the Member is considered to assume, or take property subject to), (iii) the amount of losses allocated to such Member pursuant to this Section III (including gross items allocated to such Member, as necessary). 3.2 No Member shall be required to restore any negative balance in its Capital Account.