Common use of Basic Allocations Clause in Contracts

Basic Allocations. (a) For so long as the Company is a DRE, Net Profits and Net Losses of the Company for any fiscal period shall be allocated to the Member; at all other times, they shall be allocated among the Members in such proportions and in such amounts as may be necessary so that following such allocations, the Adjusted Capital Account balance of each Member equals such Member’s then Target Balance. (b) If the amount of Net Profits or Net Losses allocable to the Members pursuant to Section 6.1(a) for a period is insufficient to allow the Adjusted Capital Account balance of each Member to equal such Member’s Target Balance, such Net Profits or Net Losses shall be allocated among the Members in such a manner as to decrease the differences between the Members’ respective Adjusted Capital Account balances and their respective Target Balances in proportion to such differences. (c) Allocations of Net Profits and Net Losses provided for in this Section 6.1 shall generally be made as of the end of the fiscal year of the Company; provided, however, that allocations of items of Net Profits and Net Losses described in clause (vi) of the definition of "Net Profits" and "Net Losses" shall be made at the time deemed realized as described in the definition of "Capital Account."