Common use of Change in Membership Units Clause in Contracts

Change in Membership Units. If there is a change in the number of Membership Units held by any Member during any year, allocations among the Members shall be made pro rata in accordance with the number of Membership Units 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 Units. If there is a change in the number of Membership Units held by any Member during any fiscal year, allocations of Income and Loss among the Members shall be made pro rata in accordance with the number and class of Membership Units 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 fiscal year if the corresponding asset is owned by the Company for the entire fiscal year, and over the portion of a year after such asset is acquired by the Company if such asset is acquired during the fiscal year.