Rule Clarification - D Weapons and Look Out Sir

Skytyrant vs Imperial Knight

So there was a confusion yesterday over D Weapons and Look Out Sir. I was playing the Skytyrant Swarm and Pat charged in his Imperial Knight. 

The question: When the Tyranid player chooses to do Look Out Sir, do the extra wounds caused by the Imperial Knight's D Weapon carry over? 

Referring to the rules in question as found in the main rulebook:

Last sentence: Multiple Wounds do not carry over

Highlighted bit

The confusion arise when you read the section on Look Out Sir:

Keyword: Wound

The rest of the rule for Look Out Sir

After the game we sat down and discussed how it works and finally settled on this:

1. I roll to hit with a D weapon against an Independent Character
2. I hit and I roll on the Destroyer Weapon Attack Table for the effect, rolls of 1 are discarded
3. Independent Character then transfers the packet of damage to another model within 6 inches. The model that takes the Look Out Sir for the Independent Character takes the full amount of damage from that packet; extra wounds are not transferred.

Hope this helps everyone out there!