Common use of Changes in Interests Clause in Contracts

Changes in Interests. If the respective interests of the Partners in the Partnership change during any Fiscal Year, then the amount of all items to be allocated, credited or charged to the Partners for such entire Fiscal Year (other than items of gain or loss from a sale of all or substantially all of the Partnership's assets, which shall be allocated under the interim closing of the books method) shall be allocated to the portion of such Fiscal Year which precedes the date of each such change and to the portion of the Fiscal Year which occurs on and after the date of each such change, in proportion to the number of days in each such portion, and the amounts of the items so allocated to each such portion shall be allocated, credited or charged to each of the Partners in proportion to their respective interests during each such portion of the Fiscal Year in question. Notwithstanding the foregoing, the Managing General Partner may elect to use the closing of the books method or any other method allowed by the Treasury Regulations in the event that a new Partner is admitted to the Partnership or an existing Partner is redeemed during a Fiscal Year.