{"component": "clause", "props": {"groups": [{"samples": [{"hash": "5dCVKv1bv7G", "uri": "/contracts/5dCVKv1bv7G#forfeiture-allocations", "label": "Agreement of Limited Partnership (FrontView REIT, Inc.)", "score": 35.7652282715, "published": true}, {"hash": "305b5J3ZOdv", "uri": "/contracts/305b5J3ZOdv#forfeiture-allocations", "label": "Agreement of Limited Partnership (FrontView REIT, Inc.)", "score": 35.6885681152, "published": true}, {"hash": "bVvLQrkklqw", "uri": "/contracts/bVvLQrkklqw#forfeiture-allocations", "label": "Limited Partnership Agreement (Pillarstone Capital Reit)", "score": 27.9486656189, "published": true}], "snippet": "Upon a forfeiture of any unvested Partnership Interest by any Partner, gross items of income, gain, loss or deduction shall be allocated to such Partner if and to the extent required by final Treasury Regulations promulgated after the date hereof (or, if final Treasury Regulations have not yet been promulgated, to the extent determined by the General Partner, in its sole discretion, as necessary) to ensure that allocations made with respect to all unvested Partnership Interests are recognized under Code Section 704(b).", "size": 32, "snippet_links": [{"key": "allocated-to", "type": "definition", "offset": [127, 139]}, {"key": "to-the-extent", "type": "clause", "offset": [160, 173]}, {"key": "required-by", "type": "definition", "offset": [174, 185]}, {"key": "treasury-regulations", "type": "definition", "offset": [192, 212]}, {"key": "date-hereof", "type": "clause", "offset": [235, 246]}, {"key": "by-the-general-partner", "type": "clause", "offset": [338, 360]}, {"key": "sole-discretion", "type": "definition", "offset": [369, 384]}, {"key": "to-ensure", "type": "clause", "offset": [400, 409]}, {"key": "with-respect-to", "type": "clause", "offset": [432, 447]}, {"key": "partnership-interests", "type": "definition", "offset": [461, 482]}, {"key": "code-section", "type": "definition", "offset": [504, 516]}], "hash": "f4fb42aa2740022b033a75601d56310e", "id": 2}, {"samples": [{"hash": "hUIcqENzsU9", "uri": "/contracts/hUIcqENzsU9#forfeiture-allocations", "label": "Limited Partnership Agreement (Nexpoint Diversified Real Estate Trust)", "score": 37.2436676025, "published": true}, {"hash": "cVeaVPsqi3h", "uri": "/contracts/cVeaVPsqi3h#forfeiture-allocations", "label": "Limited Partnership Agreement (NexPoint Real Estate Finance, Inc.)", "score": 36.8412055969, "published": true}, {"hash": "fW5moeWCIRN", "uri": "/contracts/fW5moeWCIRN#forfeiture-allocations", "label": "Limited Partnership Agreement (Nexpoint Diversified Real Estate Trust)", "score": 36.2908973694, "published": true}], "snippet": "(1) Subject to Section 1.I(2) of this Exhibit B, if any holder forfeits (or has repurchased at less than fair market value) all or a portion of such holder\u2019s Partnership Units, the Partnership shall make forfeiture allocations to such holder in the manner and to the extent required by proposed Regulations Section 1.704-1(b)(4)(xii) (as such proposed Regulations may be amended or modified, including upon the issuance of temporary or final Treasury Regulations).\n(2) If a Profits LTIP Unit holder forfeits any Profits LTIP Units to which Liquidating Gain has previously be allocated pursuant to Section 1.H of this Exhibit B, (i) the portion of such holders Capital Account attributable to such Liquidating Gain allocated to such forfeited Profits LTIP Units shall be re-allocated to such holder\u2019s remaining Profits LTIP Units that were outstanding on the date of the initial allocation of such Liquidating Gain to the extent necessary to cause such holders Economic Capital Account Balance attributable to each such Profits LTIP Unit to equal the Company Common Unit Economic Balance, and (ii) forfeiture allocations shall be made pursuant to Section 1.I(1) of this Exhibit B with respect to the amount of any such Liquidating Gain not re-allocated pursuant to clause (i) above (and the Capital Account attributable to the forfeited Profits LTIP Units that is not so reallocated or reduced to zero through forfeiture allocations shall be reduced to zero).", "size": 14, "snippet_links": [{"key": "subject-to-section", "type": "clause", "offset": [4, 22]}, {"key": "exhibit-b", "type": "definition", "offset": [38, 47]}, {"key": "fair-market-value", "type": "clause", "offset": [105, 122]}, {"key": "a-portion", "type": "definition", "offset": [131, 140]}, {"key": "partnership-units", "type": "definition", "offset": [158, 175]}, {"key": "the-partnership", "type": "definition", "offset": [177, 192]}, {"key": "to-the-extent", "type": "clause", "offset": [260, 273]}, {"key": "required-by", "type": "definition", "offset": [274, 285]}, {"key": "proposed-regulations", "type": "definition", "offset": [286, 306]}, {"key": "the-issuance", "type": "clause", "offset": [407, 419]}, {"key": "treasury-regulations", "type": "definition", "offset": [442, 462]}, {"key": "unit-holder", "type": "definition", "offset": [487, 498]}, {"key": "ltip-units", "type": "clause", "offset": [520, 530]}, {"key": "liquidating-gain", "type": "definition", "offset": [540, 556]}, {"key": "pursuant-to-section", "type": "definition", "offset": [585, 604]}, {"key": "allocated-to", "type": "definition", "offset": [714, 726]}, {"key": "date-of", "type": "clause", "offset": [858, 865]}, {"key": "allocation-of", "type": "clause", "offset": [878, 891]}, {"key": "economic-capital-account-balance", "type": "definition", "offset": [960, 992]}, {"key": "company-common-unit-economic-balance", "type": "definition", "offset": [1050, 1086]}, {"key": "made-pursuant-to", "type": "clause", "offset": [1129, 1145]}, {"key": "with-respect-to", "type": "clause", "offset": [1179, 1194]}, {"key": "pursuant-to-clause", "type": "clause", "offset": [1252, 1270]}, {"key": "the-capital", "type": "clause", "offset": [1286, 1297]}, {"key": "to-zero", "type": "definition", "offset": [1393, 1400]}], "hash": "fb08116cadd65ef9381b6017c3d3e6d0", "id": 3}, {"samples": [{"hash": "agZLQ5JmRi4", "uri": "/contracts/agZLQ5JmRi4#forfeiture-allocations", "label": "Limited Partnership Agreement (NexPoint Real Estate Finance, Inc.)", "score": 32.6878852844, "published": true}, {"hash": "8wy5gzA381R", "uri": "/contracts/8wy5gzA381R#forfeiture-allocations", "label": "Limited Partnership Agreement (NexPoint Real Estate Finance, Inc.)", "score": 32.6878852844, "published": true}, {"hash": "7NgUMlrEMgM", "uri": "/contracts/7NgUMlrEMgM#forfeiture-allocations", "label": "Limited Partnership Agreement (NexPoint Real Estate Finance, Inc.)", "score": 32.6878852844, "published": true}], "snippet": "(1) If any holder forfeits (or has repurchased at less than fair market value) all or a portion of such holder\u2019s Partnership Units, the Partnership shall make forfeiture allocations to such holder in the manner and to the extent required by proposed Regulations Section 1.704-1(b)(4)(xii) (as such proposed Regulations may be amended or modified, including upon the issuance of temporary or final Treasury Regulations).", "size": 10, "snippet_links": [{"key": "fair-market-value", "type": "clause", "offset": [60, 77]}, {"key": "a-portion", "type": "definition", "offset": [86, 95]}, {"key": "partnership-units", "type": "definition", "offset": [113, 130]}, {"key": "the-partnership", "type": "definition", "offset": [132, 147]}, {"key": "to-the-extent", "type": "clause", "offset": [215, 228]}, {"key": "required-by", "type": "definition", "offset": [229, 240]}, {"key": "proposed-regulations", "type": "definition", "offset": [241, 261]}, {"key": "the-issuance", "type": "clause", "offset": [362, 374]}, {"key": "treasury-regulations", "type": "definition", "offset": [397, 417]}], "hash": "e753f10fe102d0571a9e24ab7aeb3245", "id": 4}, {"samples": [{"hash": "lm50aGih7DU", "uri": "/contracts/lm50aGih7DU#forfeiture-allocations", "label": "Limited Liability Company Agreement (loanDepot, Inc.)", "score": 26.8234081268, "published": true}, {"hash": "GhSwc0tH7e", "uri": "/contracts/GhSwc0tH7e#forfeiture-allocations", "label": "Limited Liability Company Agreement (loanDepot, Inc.)", "score": 26.8234081268, "published": true}], "snippet": "The Parties acknowledge that allocations like those described in Proposed Treasury Regulation Section 1.704-1(b)(4)(xii)(c) (\u201cForfeiture Allocations\u201d) may result from the allocations of Profits provided for in this Agreement. For the avoidance of doubt, the Board is entitled to make Forfeiture Allocations and, once required by applicable final or temporary guidance, allocations of Profits and Losses will be made in accordance with Proposed Treasury Regulation Section 1.704-1(b)(4)(xii)(c) or any successor provision or guidance or any applicable Internal Revenue Service guidance with respect to safe harbor elections.", "size": 6, "snippet_links": [{"key": "the-parties-acknowledge", "type": "clause", "offset": [0, 23]}, {"key": "proposed-treasury-regulation", "type": "definition", "offset": [65, 93]}, {"key": "in-this-agreement", "type": "clause", "offset": [207, 224]}, {"key": "for-the-avoidance-of-doubt", "type": "clause", "offset": [226, 252]}, {"key": "the-board", "type": "clause", "offset": [254, 263]}, {"key": "required-by", "type": "definition", "offset": [317, 328]}, {"key": "or-temporary", "type": "definition", "offset": [346, 358]}, {"key": "allocations-of-profits-and-losses", "type": "clause", "offset": [369, 402]}, {"key": "in-accordance-with", "type": "definition", "offset": [416, 434]}, {"key": "successor-provision", "type": "clause", "offset": [501, 520]}, {"key": "internal-revenue-service", "type": "definition", "offset": [551, 575]}, {"key": "with-respect-to", "type": "clause", "offset": [585, 600]}, {"key": "safe-harbor", "type": "definition", "offset": [601, 612]}], "hash": "d2eb5e4047845a7af08c1ee374c90bb6", "id": 5}, {"samples": [{"hash": "e78Pv53ZN4h", "uri": "/contracts/e78Pv53ZN4h#forfeiture-allocations", "label": "Limited Partnership Agreement (Lineage, Inc.)", "score": 35.5653648376, "published": true}, {"hash": "hs6K7XsnvjI", "uri": "/contracts/hs6K7XsnvjI#forfeiture-allocations", "label": "Limited Partnership Agreement (Lineage, Inc.)", "score": 35.5379867554, "published": true}, {"hash": "j3z4ygJYqIv", "uri": "/contracts/j3z4ygJYqIv#forfeiture-allocations", "label": "Limited Partnership Agreement (Orion Office REIT Inc.)", "score": 32.7563323975, "published": true}], "snippet": "Upon a forfeiture of any Unvested LTIP Units by any Partner, gross items of income, gain, loss or deduction shall be allocated to such Partner if and to the extent required by final Regulations promulgated after the Effective Date to ensure that allocations made with respect to all unvested Partnership Interests are recognized under Code Section 704(b).", "size": 78, "snippet_links": [{"key": "unvested-ltip-units", "type": "definition", "offset": [25, 44]}, {"key": "allocated-to", "type": "definition", "offset": [117, 129]}, {"key": "to-the-extent", "type": "clause", "offset": [150, 163]}, {"key": "required-by", "type": "definition", "offset": [164, 175]}, {"key": "final-regulations", "type": "definition", "offset": [176, 193]}, {"key": "after-the-effective-date", "type": "clause", "offset": [206, 230]}, {"key": "to-ensure", "type": "clause", "offset": [231, 240]}, {"key": "with-respect-to", "type": "clause", "offset": [263, 278]}, {"key": "partnership-interests", "type": "definition", "offset": [292, 313]}, {"key": "code-section", "type": "definition", "offset": [335, 347]}], "hash": "32cf4f3f58dbb9e1349daaaf28755ea5", "id": 1}, {"samples": [{"hash": "eLTV3MwbmRV", "uri": "/contracts/eLTV3MwbmRV#forfeiture-allocations", "label": "Operating Agreement (Broadstone Net Lease, Inc.)", "score": 31.7214241028, "published": true}, {"hash": "3KLpYZjTEOk", "uri": "/contracts/3KLpYZjTEOk#forfeiture-allocations", "label": "Operating Agreement (Broadstone Net Lease, Inc.)", "score": 31.6940460205, "published": true}], "snippet": "Upon a forfeiture of any unvested Membership Interest by any Member, gross items of income, gain, loss or deduction shall be allocated to such Member if and to the extent required by final Treasury Regulations promulgated after the date hereof (or, if final Treasury Regulations have not yet been promulgated, to the extent determined by the Managing Member, in its sole discretion, as necessary) to ensure that allocations made with respect to all unvested Membership Interests are recognized under Code Section 704(b).", "size": 4, "snippet_links": [{"key": "allocated-to", "type": "definition", "offset": [125, 137]}, {"key": "to-the-extent", "type": "clause", "offset": [157, 170]}, {"key": "required-by", "type": "definition", "offset": [171, 182]}, {"key": "treasury-regulations", "type": "definition", "offset": [189, 209]}, {"key": "date-hereof", "type": "clause", "offset": [232, 243]}, {"key": "the-managing-member", "type": "definition", "offset": [338, 357]}, {"key": "sole-discretion", "type": "definition", "offset": [366, 381]}, {"key": "to-ensure", "type": "clause", "offset": [397, 406]}, {"key": "with-respect-to", "type": "clause", "offset": [429, 444]}, {"key": "membership-interests", "type": "clause", "offset": [458, 478]}, {"key": "code-section", "type": "definition", "offset": [500, 512]}], "hash": "f1629f733625d3172d5043cec1f899d2", "id": 8}, {"samples": [{"hash": "1oACTG6KANw", "uri": "/contracts/1oACTG6KANw#forfeiture-allocations", "label": "Limited Liability Company Agreement (Phoenix Energy One, LLC)", "score": 36.247089386, "published": true}, {"hash": "lY3uOxCqsfx", "uri": "/contracts/lY3uOxCqsfx#forfeiture-allocations", "label": "Limited Liability Company Agreement (Phoenix Capital Group Holdings, LLC)", "score": 35.9952087402, "published": true}], "snippet": "If any Member forfeits (or has repurchased at less than Fair Market Value) all or a portion of such Member\u2019s Units, the Company shall make forfeiture allocations to such holder in the manner and to the extent required by Proposed Treasury Regulations Section 1.704-1(b)(4)(xii)(c) (as such Proposed Treasury Regulations may be amended or modified, including upon the issuance of temporary or final Treasury Regulations).", "size": 3, "snippet_links": [{"key": "fair-market-value", "type": "clause", "offset": [56, 73]}, {"key": "a-portion", "type": "definition", "offset": [82, 91]}, {"key": "the-company-shall", "type": "clause", "offset": [116, 133]}, {"key": "to-the-extent", "type": "clause", "offset": [195, 208]}, {"key": "required-by", "type": "definition", "offset": [209, 220]}, {"key": "proposed-treasury-regulations", "type": "definition", "offset": [221, 250]}, {"key": "the-issuance", "type": "clause", "offset": [363, 375]}], "hash": "87b2ae2c72d670f0fb9c6022d1421d0a", "id": 10}, {"samples": [{"hash": "lbSMPEWUlbi", "uri": "/contracts/lbSMPEWUlbi#forfeiture-allocations", "label": "Operating Agreement (Lazard Group LLC)", "score": 34.3305969238, "published": true}, {"hash": "hTFlzrLzqE8", "uri": "/contracts/hTFlzrLzqE8#forfeiture-allocations", "label": "Operating Agreement (Lazard LTD)", "score": 34.3305969238, "published": true}, {"hash": "AW1HIeCC68", "uri": "/contracts/AW1HIeCC68#forfeiture-allocations", "label": "Operating Agreement (Lazard LTD)", "score": 30.0951404572, "published": true}], "snippet": "If any Member is required to irrevocably return any amount previously received as a distribution or is required to forfeit any PIPR Units pursuant to Section 4.03(c)(iv), the Company shall allocate Loss (or items of loss or deduction) to such Member in an amount equal to the returned distribution or the PIPR Capital allocable to such forfeited PIPR Units to reverse prior allocations of Profit to such Member, as applicable.", "size": 3, "snippet_links": [{"key": "a-distribution", "type": "clause", "offset": [82, 96]}, {"key": "pursuant-to-section", "type": "definition", "offset": [138, 157]}, {"key": "the-company-shall", "type": "clause", "offset": [171, 188]}, {"key": "equal-to", "type": "definition", "offset": [263, 271]}, {"key": "allocations-of-profit", "type": "clause", "offset": [374, 395]}], "hash": "87a5f29c6ec746243022a9adb31482c6", "id": 9}, {"samples": [{"hash": "lXe6GFHRXOq", "uri": "/contracts/lXe6GFHRXOq#forfeiture-allocations", "label": "Limited Liability Company Agreement (Learn SPAC HoldCo, Inc.)", "score": 35.5598907471, "published": true}, {"hash": "bpTVtDcBXdw", "uri": "/contracts/bpTVtDcBXdw#forfeiture-allocations", "label": "Class D Preferred Unit Purchase Agreement (Learn SPAC HoldCo, Inc.)", "score": 35.0670776367, "published": true}], "snippet": "If any unvested Class C Unit is forfeited, the LLC shall make forfeiture allocations with respect to such Unit in accordance with Proposed Regulation \u00a71.704-1(b)(4)(xii) or such other official guidance as shall be applicable.", "size": 5, "snippet_links": [{"key": "class-c-unit", "type": "definition", "offset": [16, 28]}, {"key": "the-llc", "type": "clause", "offset": [43, 50]}, {"key": "with-respect-to", "type": "clause", "offset": [85, 100]}, {"key": "such-unit", "type": "definition", "offset": [101, 110]}, {"key": "in-accordance-with", "type": "definition", "offset": [111, 129]}, {"key": "proposed-regulation", "type": "definition", "offset": [130, 149]}, {"key": "other-official", "type": "definition", "offset": [178, 192]}], "hash": "701f0476d507d55ea6be69cf5f13fda5", "id": 7}, {"samples": [{"hash": "cW0LIvu9eHl", "uri": "/contracts/cW0LIvu9eHl#forfeiture-allocations", "label": "Operating Agreement (Day One Biopharmaceuticals Holding Co LLC)", "score": 32.3374404907, "published": true}, {"hash": "3CSxaiDvdv3", "uri": "/contracts/3CSxaiDvdv3#forfeiture-allocations", "label": "Operating Agreement (Day One Biopharmaceuticals Holding Co LLC)", "score": 32.2114982605, "published": true}, {"hash": "80APCUpTH0k", "uri": "/contracts/80APCUpTH0k#forfeiture-allocations", "label": "Operating Agreement (Arvinas Holding Company, LLC)", "score": 29.7008895874, "published": true}], "snippet": "If allocations have been made to a Capital Account of an Incentive Member with respect to the Incentive Member\u2019s Unvested Incentive Shares and any portion of such Unvested Incentive Shares is forfeited or the ownership thereof does not completely vest in accordance with the instrument under which the Unvested Incentive Shares were issued, then the \u201cforfeiture allocations\u201d described in Proposed Treasury Regulations Sections 1.704-1(b)(4)(xii)(c) and 1.704-1(b)(4)(xii)(d), or as otherwise provided in the Proposed Rules, may be made to the Incentive Member\u2019s Capital Account in the manner described therein so that allocations of the LLC\u2019s net income, net loss and separate items thereof have economic effect as required by Section 704(b) of the Code.", "size": 5, "snippet_links": [{"key": "capital-account", "type": "definition", "offset": [35, 50]}, {"key": "incentive-member", "type": "definition", "offset": [57, 73]}, {"key": "with-respect-to", "type": "clause", "offset": [74, 89]}, {"key": "the-incentive", "type": "clause", "offset": [90, 103]}, {"key": "unvested-incentive-shares", "type": "definition", "offset": [113, 138]}, {"key": "in-accordance-with", "type": "definition", "offset": [252, 270]}, {"key": "the-instrument", "type": "clause", "offset": [271, 285]}, {"key": "proposed-treasury-regulations", "type": "definition", "offset": [388, 417]}, {"key": "proposed-rules", "type": "definition", "offset": [508, 522]}, {"key": "the-llc", "type": "clause", "offset": [633, 640]}, {"key": "net-income", "type": "clause", "offset": [643, 653]}, {"key": "net-loss", "type": "clause", "offset": [655, 663]}, {"key": "economic-effect", "type": "definition", "offset": [696, 711]}, {"key": "as-required-by", "type": "clause", "offset": [712, 726]}, {"key": "the-code", "type": "clause", "offset": [745, 753]}], "hash": "b327f7a9a1f93dcfb2b7faff35b0cd55", "id": 6}], "next_curs": "Cl8SWWoVc35sYXdpbnNpZGVyY29udHJhY3RzcjsLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2Ih9mb3JmZWl0dXJlLWFsbG9jYXRpb25zIzAwMDAwMDBhDKIBAmVuGAAgAA==", "clause": {"children": [["", ""], ["in-general", "In General"], ["meetings-by-any-form-of-communication", "Meetings by any Form of Communication"], ["written-consent-to-action-in-lieu-of-actual-meetings", "Written Consent to Action in Lieu of Actual Meetings"], ["notice", "Notice"]], "size": 181, "parents": [["allocations", "Allocations"], ["general-provisions", "General Provisions"], ["regulatory-allocations", "Regulatory Allocations"], ["special-allocation-rules", "Special Allocation Rules"], ["regulatory-allocation-provisions", "Regulatory Allocation Provisions"]], "title": "Forfeiture Allocations", "id": "forfeiture-allocations", "related": [["forfeiture-allocation", "FORFEITURE ALLOCATION", "FORFEITURE ALLOCATION"], ["tax-allocations", "Tax Allocations", "Tax Allocations"], ["other-allocations", "Other Allocations", "Other Allocations"], ["corrective-allocations", "Corrective Allocations", "Corrective Allocations"], ["forfeitures", "Forfeitures", "Forfeitures"]], "related_snippets": [], "updated": "2026-04-23T05:56:45+00:00", "also_ask": ["What key triggers should be defined to ensure enforceable forfeiture allocations?", "How can forfeiture allocation provisions be structured to maximize leverage in negotiations?", "What are the most common legal pitfalls or fatal flaws in drafting forfeiture allocation clauses?", "How do forfeiture allocation standards differ across relevant jurisdictions or under different governing laws?", "What evidence or documentation is essential to support enforceability of forfeiture allocations in court?"], "drafting_tip": "Specify the conditions triggering forfeiture to prevent disputes; detail allocation methods to ensure transparency; define beneficiary rights to avoid ambiguity.", "explanation": "The Forfeiture Allocations clause defines how assets, funds, or interests are distributed when a party forfeits their rights under an agreement. Typically, this clause outlines the specific conditions that trigger forfeiture\u2014such as breach of contract or failure to meet obligations\u2014and details how the forfeited assets are reallocated among the remaining parties or returned to the original owner. Its core practical function is to provide a clear and predetermined process for handling forfeited interests, thereby reducing disputes and ensuring fairness in the event of non-compliance."}, "json": true, "cursor": ""}}