Common use of Transfer of Capital Accounts Clause in Contracts

Transfer of Capital Accounts. Upon the Transfer (other than by encumbering) of all or a part of the Units including Preferred Units, the Company shall transfer the balance of the transferring Member’s Capital Account attributable to the Transferred Units to the successor of such Member. Adjusting of a priority of distributions or any special allocation of income, gain or deduction shall not constitute a Transfer for purposes of this Agreement.