Common use of Special Adjustments Clause in Contracts

Special Adjustments. The Gross Asset Values of Company assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such assets pursuant to IRC Section 734(b) or IRC Section 743(b), but only to the extent that such adjustments are required to be taken into account in determining Capital Accounts pursuant to Regulations Section 1.704-1(b)(2)(iv)(m) and subparagraph 2.4 of this Exhibit "A"; provided, however, that Gross Asset Values shall not be adjusted pursuant to this subparagraph 1.2.2.4 to the extent the Manager determines that an adjustment pursuant to subparagraph 1.2.2.2 of this Exhibit "A" is necessary or appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to this subparagraph 1.2.2.4. If the Gross Asset Value of an asset has been determined or adjusted pursuant to subparagraphs 1.2.2.1 or 1.2.2.2 of this Exhibit "A" or this subparagraph 1.2.2.4, such Gross Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing "Profits" and "Losses" (as defined below).