Common use of Allocation of Net Profit and Net Loss Clause in Contracts

Allocation of Net Profit and Net Loss. Subject to the other provisions of this Article IV, for purposes of adjusting the Capital Accounts of the Members, the Net Profit, Net Loss, and other items of income, gain, loss, credit, and deduction shall be allocated with respect to each taxable year (or portion thereof) as follows: (i) Net Profit and similar items for any taxable year shall be allocated as follows: (1) first, to the Members in proportion to, and to the extent of, the excess of prior allocations of Net Loss under Section 4.2(a)(ii)(4) over prior allocations of Net Profit under this Section 4.2(a)(i)(1) for the then-current taxable year and all prior taxable years; (2) second, to the Members in proportion to, and to the extent of, the excess of prior allocations of Net Loss under Section 4.2(a)(ii)(3) over prior allocations of Net Profit under this Section 4.2(a)(i)(2) for the then-current taxable year and all prior taxable years; (3) third, to the Members in proportion to, and to the extent of, the excess of prior allocations of Net Loss under Section 4.2(a)(ii)(2) over prior allocations of Net Profit under this Section 4.2(a)(i)(3) for the then-current taxable year and all prior taxable years; and (4) fourth, to the Members in proportion to their relative Membership Units. (ii) Net Loss and similar items for any taxable year shall be allocated proportionally among the Members as follows: (1) first, to all Members in proportion to, and to the extent of, the excess of prior allocations of Net Profit under Section 4.2(a)(i)(4) over prior allocations of Net Loss under this Section 4.2(a)(ii)(1) for the then-current taxable year and all prior taxable years; (2) second, to the Members in proportion to their relative Membership Units until the Capital Account of any Member is reduced to zero; (3) third, to the Members in proportion to, and to the extent of, their positive Capital Account balances; and (4) fourth, to the Members in proportion to their relative Membership Units.

Allocation of Net Profit and Net Loss. Subject to the other provisions of this Article IV, IV for purposes of adjusting the Capital Accounts of the Members, the Net Profit, Net Loss, and other items of income, gain, loss, credit, and deduction shall be allocated with respect to each taxable year (or portion thereof) as follows: (i) Net Profit and similar items for any taxable year shall be allocated as follows: (1) first, to the Members in proportion to, and to the extent of, the excess of prior allocations of Net Loss under Section 4.2(a)(ii)(4) over prior allocations of Net Profit under this Section 4.2(a)(i)(1) for the then-current taxable year and all prior taxable years; (2) second, to the Members in proportion to, and to the extent of, the excess of prior allocations of Net Loss under Section 4.2(a)(ii)(3) over prior allocations of Net Profit under this Section 4.2(a)(i)(2) for the then-current taxable year and all prior taxable years; (3) third, to the Members in proportion to, and to the extent of, the excess of prior allocations of Net Loss under Section 4.2(a)(ii)(2) over prior allocations of Net Profit under this Section 4.2(a)(i)(3) for the then-current taxable year and all prior taxable years; and (4) fourth, to the Members in proportion to their relative Membership UnitsPercentage Interests. (ii) Net Loss and similar items for any taxable year shall be allocated proportionally among the Members as follows: (1) first, to all Members in proportion to, and to the extent of, the excess of prior allocations of Net Profit under Section 4.2(a)(i)(4) over prior allocations of Net Loss under this Section 4.2(a)(ii)(1) for the then-current taxable year and all prior taxable years; (2) second, to the Members in proportion to their relative Membership Units Percentage Interests until the Capital Account of any Member is reduced to zero; (3) third, to the Members in proportion to, and to the extent of, their positive Capital Account balances; and (4) fourth, to the Members in proportion to their relative Membership UnitsPercentage Interests.