Common use of Application of Section 8 Clause in Contracts

Application of Section 8. 3. The special allocations provided in Section 8.3 are intended to comply with the provisions of Regulation Section 1.704-2 and are to be interpreted and applied to accomplish that result; provided, however, that to the extent possible, the special allocations shall be taken into account in allocating items of income, gain, loss, and deduction among the Members in such a manner that the net amount of the allocations to each Member shall be the same as such Member’s distributive shares of Profit and Losses would have been had the events requiring the special allocations not occurred. The Members shall have reasonable discretion to apply the provisions of Section 8.3 in whatever order is likely to minimize the economic distortions that otherwise might result from the application of the special allocation provisions; provided, however, that the Members shall apply the special allocations in the order set forth in Section 8.3 to the extent that doing so does not have a material adverse effect on the Members.

Application of Section 8. 3. The special allocations provided in Section 8.3 are intended to comply with the provisions of Regulation Section 1.704-2 1.704 -2 and are to be interpreted and applied to accomplish that result; provided, however, that to the extent possible, the special allocations shall be taken into account in allocating items of income, gain, loss, and deduction among the Members in such a manner that the net amount of the allocations to each Member shall be the same as such Member’s distributive shares of Profit and Losses would have been had the events requiring the special allocations not occurred. The Members shall have reasonable discretion to apply the provisions of Section 8.3 in whatever order is likely to minimize the economic distortions that otherwise might result from the application of the special allocation provisions; provided, however, that the Members shall apply the special allocations in the order set forth in Section 8.3 to the extent that doing so does not have a material adverse effect on the Members.