Common use of Distributions and Allocations in Respect of a Transferred Interest Clause in Contracts

Distributions and Allocations in Respect of a Transferred Interest. If any Member Transfers any part of his, her or its Interest during any accounting period in compliance with the provisions of this Article XIII, Company income, gain, deductions and losses attributable to such Interest for the respective period shall be divided and allocated between the transferor and the transferee by taking into account their varying interests during the appropriate accounting period in accordance with Code section 706(d), using the daily proration method. All Company distributions on or before the effective date of such Transfer shall be made to the transferor, and all such Company distributions thereafter shall be made to the transferee. Solely for purposes of making Company tax allocations and distributions, the Company shall recognize a Transfer on the day following the day of Transfer. Neither the Company nor the Board of Managers shall incur any liability for making Company allocations and distributions in accordance with the provisions of this Section 14.9, whether or not the Board of Managers or the Company have knowledge of any Transfer of any Interest or part thereof where the transferee is not admitted as a Substitute Member.

Distributions and Allocations in Respect of a Transferred Interest. If any Member Transfers any part of his, her or its Interest during any accounting period in compliance with the provisions of this Article XIII, Company income, gain, deductions and losses attributable to such Interest for the respective period shall be divided and allocated between the transferor and the transferee by taking into account their varying interests during the appropriate accounting period in accordance with Code section 706(d), using the daily proration method. All Company distributions on or before the effective date of such Transfer shall be made to the transferor, and all such Company distributions thereafter shall be made to the transferee. Solely for purposes of making Company tax allocations and distributions, the Company shall recognize a Transfer on the day following the day of Transfer. Neither the Company nor the Board of Managers shall incur any liability for making Company allocations and distributions in accordance with the provisions of this Section 14.914.7, whether or not the Board of Managers or the Company have knowledge of any Transfer of any Interest or part thereof where the transferee is not admitted as a Substitute Member.