Common use of Interim Allocations Due to Percentage Interest Adjustment Clause in Contracts

Interim Allocations Due to Percentage Interest Adjustment. If a Percentage Interest is the subject of a Transfer or is changed pursuant to the terms of this Agreement during any Fiscal Year, the amount of Net Income and Net Loss to be allocated to the Members for such entire Fiscal Year in accordance with their respective Percentage Interests shall be allocated to the portion of such Fiscal Year which precedes the date of such Transfer or change (and if there shall have been a prior Transfer or change in such Fiscal Year, which commences on the date of such prior Transfer or change) and to the portion of such Fiscal Year which occurs on and after the date of such Transfer or change (and if there shall be a subsequent Transfer or change in such Fiscal Year, which precedes the date of such subsequent Transfer or change), in proportion to the number of days in each such portion (or, in the case of a Transfer, in accordance with an interim closing of the books at the election and the expense of the parties to the Transfer), and the amounts of the items so allocated to each such portion shall be credited or charged to the Members in proportion to their respective Percentage Interest during each such portion of the Fiscal Year in question. Such allocation shall be made without regard to the date, amount or receipt of any distributions that may have been made with respect to the transferred Percentage Interest.

Interim Allocations Due to Percentage Interest Adjustment. If a Percentage Interest Unit is the subject of a Transfer Transfer, or is changed the Members’ Series Sharing Percentages change pursuant to the terms of this Agreement during any Fiscal Allocation Year, the amount of Net Income and Net Loss to be allocated to the Members for such entire Fiscal Allocation Year in accordance with their respective Percentage Interests shall be allocated to the portion of such Fiscal Allocation Year which precedes the date of such Transfer or change (and if there shall have been a prior Transfer or change in such Fiscal Allocation Year, which commences on the date of such prior Transfer or change) and to the portion of such Fiscal Allocation Year which occurs on and after the date of such Transfer or change (and if there shall be a subsequent Transfer or change in such Fiscal Allocation Year, which precedes the date of such subsequent Transfer or change), in proportion to the number of days in each such portion (or, in the case of a Transfer, in accordance with an interim closing of the books at using the election and the expense of the parties semi-monthly convention pursuant to the Transferproposed Treasury Regulations Section 1.706-4(e)(2), and the amounts of the items so allocated to each such portion shall be credited or charged to the Members in proportion to their respective Percentage Interest accordance with Section 5.03(b) as in effect during each such portion of the Fiscal Allocation Year in question. Such allocation shall be made without regard to the date, amount or receipt of any distributions that may have been made with respect to the transferred Percentage InterestTransferred Unit.