Corrective Allocation. Subject to the provisions of Sections 3.02, 3.03, 3.04, and 3.05 of this Appendix (the “Regulatory Allocations”), but notwithstanding any other provision of the Agreement, in the event that any Regulatory Allocation is made pursuant to this Appendix for any taxable year, the Manager shall make such offsetting special allocations in whatever manner they determine appropriate so that, after such offsetting allocations are made, each Member’s Capital Account balance is, to the extent possible, equal to the Capital Account balance such Member would have had if the Regulatory Allocations were not part of this Agreement and all Company items were allocated pursuant to Section 4.1. In exercising its discretion under this Section 3.06 of the Appendix, the Manager may take into account future Regulatory Allocations under Sections 3.04(a) and (b) of this Appendix that, although not yet made, are likely to offset other Regulatory Allocations previously made under Sections 3.02 and 3.03 of this Appendix, respectively.
Appears in 5 contracts
Samples: Operating Agreement, Operating Agreement, Operating Agreement
