Common use of Change in Membership Shares Clause in Contracts

Change in Membership Shares. If there is a change in the number of Membership Shares held by any Member during any year, allocations among the Members shall be made pro rata in accordance with the number of Membership Shares held by each Member from time to time during such year in accordance with Section 706 of the Code using the closing-of-the-books method, except that depreciation, amortization and similar items shall be deemed to accrue ratably on a daily basis over the entire year if the corresponding asset is owned by the Company for the entire year, and over the portion of a year after such asset is acquired by the Company if such asset is acquired during the year.

Change in Membership Shares. If there is a change in the number of Membership Shares held by any Member during any year, allocations among the Members of the relevant Membership Share class shall be made pro rata in accordance with the number of Membership Shares of the relevant class held by each Member from time to time during such year in accordance with Section 706 of the Code using the closing-of-the-books method, except that depreciation, amortization and similar items shall be deemed to accrue ratably on a daily basis over the entire year if the corresponding asset is owned by the Company for the entire year, and over the portion of a year after such asset is acquired by the Company if such asset is acquired during the year.