Common use of Allocations of Net Profit Clause in Contracts

Allocations of Net Profit. The Net Profit of the Company for any relevant fiscal period shall be allocated and credited to the Capital Accounts of the Members as follows: (a) If the aggregate amounts previously charged to the Capital Account of any Member with respect to Net Losses and unrealized losses allocated under Section 4.3 exceed the aggregate amounts previously credited to the Capital Account of such Member with respect to Net Profit, income or gain allocated pursuant to Section 5.7.2, and unrealized gains allocated under Section 4.3, then Net Profit shall be allocated (i) first, in proportion to the deficit Capital Account balance of each Member with a deficit until all such deficits balances are eliminated and (ii) thereafter, successively to each Class A Member in proportion to such Member’s share of any remaining excess of such charges over credits in respect of such Member’s Class A Units until the excess is eliminated and then to each Class B Member in proportion to such Member’s share of any remaining excess of such charges over credits in respect of such Member’s Class B Units until the excess is eliminated; and (b) Thereafter, the balance of such Net Profit shall be allocated to the Class B Members pro rata in accordance with Percentage Interests.