Recapture Items. Notwithstanding any other provisions of this Agreement, if the Company realizes gain from the sale or other disposition of any asset owned by the Company or any pass through Entity in which the Company holds an interest which is required to be treated as ordinary income under the depreciation recapture provisions of the Code (“Recapture Income”), then any such gain shall be allocated to the Members, even though such allocation is not in accordance with the Company Interests at the time the gain is realized. Any portion of the gain realized as a result of the event is allocated in accordance with Company Interests or in accordance with Section 6.4 hereof, if applicable.
Appears in 2 contracts
Sources: Operating Agreement, Operating Agreement