Common use of Recapture Items Clause in Contracts

Recapture Items. In the event that the Company has taxable income that is characterized as ordinary income under the recapture provisions of the Code, each Economic Interest Holder's distributive share of taxable gain or loss from the sale of Company assets (to the extent possible) shall include a proportionate share of this recapture income equal to that Economic Interest Holder's share of prior cumulative depreciation deductions with respect to the assets which gave rise to the recapture income.

Recapture Items. In the event that the Company has taxable income that is characterized as ordinary income under the recapture provisions of the Code, each Economic Interest HolderMember's distributive share of taxable gain or loss from the sale of Company assets (to the extent possible) shall include a proportionate share of this recapture income equal to that Economic Interest HolderMember's share of prior cumulative depreciation deductions with respect to the assets which gave rise to the recapture income.