Common use of FEES TO MEMBERS OR AFFILIATES Clause in Contracts

FEES TO MEMBERS OR AFFILIATES. In the event that any fees, interest, or other amounts paid to any Member or any affiliate thereof pursuant to this Agreement or any other agreement between the Company and any Member or affiliate thereof providing for the payment of such amount, and deducted by the Company in reliance on Section 707(a) and/or 707(c) of the Code, are disallowed as deductions to the Company on its federal income tax return and are treated as Company distributions, then: (a) the Operating Profits or Operating Loss, as the case may be, for the fiscal year in which such fees, interest, or other amounts were paid shall be increased or decreased, as the case may be, by the amount of such fees, interest, or other amounts that are treated as Company distributions; and (b) there shall be allocated to the Member to which (or to whose Affiliate) such fees, interest, or other amounts were paid, prior to the allocations pursuant to SECTION 2.09(b), an amount of gross income for the fiscal year equal to the amount of such fees, interest, or other amounts that are treated as Company distributions.