Common use of Definition of Profit and Loss Clause in Contracts

Definition of Profit and Loss. Profit" and "Loss" and any items of income, gain, expense, or loss referred to in this Agreement shall be determined in accordance with federal income tax accounting principles, as modified by Regulations section 1.704-1(b)(2)(iv), except that Profit and Loss shall not include items allocable pursuant to Section 5.4, 5.5, or 5.6 hereof. All allocations of income, Profit, gain, Loss, and expense (and all items contained therein) for federal income tax purposes shall be identical to all allocations of such items set forth in this Article V, except as otherwise required by section 704(c) of the Code and Regulations section 1.704-1(b)(4).