Common use of Restatement of Capital Accounts Clause in Contracts

Restatement of Capital Accounts. If any additional Capital Contributions are made to the Company, upon agreement of Members holding seventy-five percent (75%) of all Units, the Capital Accounts of the Members may be restated to reflect the Members' interests in Company assets. Any such restatement shall reflect such increases or decreases in the Capital Accounts of the Members as would reflect the manner in which income, gains, losses, etc., would be allocated if there were a taxable disposition of all Company property for its fair market value on the date of such Capital Contributions.

Restatement of Capital Accounts. If any additional Capital Contributions are made to the Company, upon agreement of the Members holding seventy-five percent (75%) of all Units, the Capital Accounts of the Members may be restated to reflect the Members' interests in Company assets. Any such restatement shall reflect such increases or decreases in the Capital Accounts of the Members as would reflect the manner in which income, gains, losses, etc., would be allocated if there were a taxable disposition of all Company property for its fair market value on the date of such Capital Contributions.