Compliance with Section 704(b) of the Code. As they relate to the maintenance of Capital Accounts, the provisions of this Article are intended, shall be construed, and if necessary, modified to cause the allocations of Net Profits, Net Losses, income, gain and credit pursuant to Article VIII to have substantial economic effect under the regulations promulgated under Section 704(b) of the Code, in light of any distributions made to the Members and Economic Interest Owners and the Capital Contributions made pursuant to this Article.
Compliance with Section 704(b) of the Code. The provisions of this Article as they relate to the maintenance of Capital Accounts are intended, and shall be construed, and, if necessary, modified to cause the allocations of profits, losses, income, gain and credit pursuant to Article V to have substantial economic effect under the Treasury Regulations promulgated under Section 704(b) of the Code, in light of the distributions made pursuant to Articles V and XI and the contributions made pursuant to Article IV. Notwithstanding anything herein to the contrary, this Agreement shall not be construed as creating a deficit restoration obligation or otherwise personally obligate any Member or Transferee to make a contribution in excess of the initial contribution or additional contribution agreed to by a Majority in Interest of the Members of the Company.
Compliance with Section 704(b) of the Code. The allocation provisions contained in this Article IX are intended to comply with Section 704(b) of the Code and the Treasury Regulations promulgated thereunder, and shall be interpreted and applied in a manner consistent therewith.
Compliance with Section 704(b) of the Code. The provisions of this Agreement as they relate to the maintenance of Capital Accounts are intended, and shall be construed, and, if necessary, modified to cause the allocations of profits, losses, income, gains and credits pursuant to this Agreement to have substantial economic effect under the Regulations promulgated under §704(b) of the Code, in view of the distributions and capital contributions made pursuant to this Agreement.
Compliance with Section 704(b) of the Code. The provisions of this Article VIII as they relate to the maintenance of Capital Accounts are intended, and shall be construed, and, if necessary, modified to cause the allocations of profits, losses, income, gain and credit pursuant to Article X to have substantial economic effect under the Regulations promulgated under Section 704(b) of the code, in light of the distributions made pursuant to this Article VIII. Notwithstanding anything herein to the contrary, this Agreement shall not be construed as creating a deficit restoration obligation or otherwise personally obligate any Member or Shareholder to make a Capital Contribution in excess of the Initial Capital Contribution.
Compliance with Section 704(b) of the Code. The provisions of this Agreement and Exhibit A attached hereto, as they relate to the maintenance of Capital Accounts and the allocation of Profits and Losses, are intended, and shall be construed, and, if necessary, modified, to cause the allocations of Profits, Losses, income, gain and credit pursuant to Article IX to have substantial economic effect under the Treasury Regulations promulgated under Section 704(b) of the Code, in light of the Distributions made pursuant to Article IX and the Capital Contributions made or deemed made pursuant to this Article VIII. Notwithstanding anything herein to the contrary, this Agreement shall not be construed as creating a deficit restoration obligation or otherwise personally obligating any Member to make a Capital Contribution in excess of the initial Capital Contribution, as set forth in the first sentence of Section 8.2, made by that Member.
Compliance with Section 704(b) of the Code. The provisions of this Article 4 as they relate to the maintenance of Capital Accounts are intended, and shall be construed, and, if necessary, modified, to cause the allocations of Net Profits, Net Losses, and other items of income, gain, loss, deduction and credit pursuant to Article 5 to be respected under the Regulations promulgated under § 704(b) of the Code, in light of the Distributions made pursuant to Article 5 and the Capital Contributions made pursuant to this Article 4.52 In the event the Members shall determine that it is prudent to modify the manner in which Capital Accounts are computed in order to comply with the Allocation Rules, the Members hereby agree that they will not unreasonably withhold their consent to any modification that is reasonably required to so comply, provided that such modification is not likely materially to affect the amounts distributable to any Member.53 52 This provision is intended to facilitate compliance with the Treasury Regulations if the law changes or tax advisors to the LLC believe that a change is appropriate.
Compliance with Section 704(b) of the Code. The provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Regulations section 1.704-1(b), and shall be interpreted and applied in a manner consistent with such Regulations. In the event the Management Committee determines that it is prudent to modify the manner in which the Capital Accounts are computed in order to comply with such Regulations, the Management Committee may make such modification, provided that it is not likely to have a material effect on the amounts distributable to any Member upon dissolution of the Company. The Management Committee also shall (i) make any adjustments that are necessary or appropriate to maintain equality between the Capital Accounts of the Members and the amount of the Company capital reflected on the Company’s balance sheet, as computed for book purposes in accordance with Regulations section 1.704-1(b)(2)(iv)(g) and (ii) make any appropriate modifications in unanticipated events might otherwise cause this Agreement not to comply with the Regulations.
Compliance with Section 704(b) of the Code. The foregoing provisions and the other provisions of this Operating Agreement relating to the maintenance of capital accounts are intended to comply with Section 704(b) of the Internal Revenue Code of 1986, as amended and applicable Treasury Regulations promulgated thereunder and shall be interpreted and applied in a manner consistent therewith. If, in the opinion of the Company’s accountants, the manner in which capital accounts are to be maintained pursuant to this Operating Agreement should be modified in order to comply with Section 704(b) of the Code and the Regulations thereunder, then notwithstanding anything to the contrary contained in the preceding provisions of this Article IV, the method in which the capital accounts are maintained shall be so modified provided, however, that any change in the manner of maintaining capital accounts shall not materially alter the economic agreement between or among the Members.
Compliance with Section 704(b) of the Code. The provisions of this Section 3.01 as they relate to the maintenance of Capital Accounts are intended, and shall be construed, and, if necessary, modified to cause the allocations of profits, losses, income, gain and credit to have substantial economic effect under the Regulations promulgated under Section 704(b) of the Code, in light of any distributions and Contributions made. Notwithstanding anything herein to the contrary, this Operating Agreement shall not be construed as creating a deficit restoration obligation or otherwise personally obligate any Member or Assignee to make a Contribution in excess of the Initial Contribution and any additional Contribution of the Member.
