First Tier Profits Clause Samples
The 'First Tier Profits' clause defines how initial profits from a business venture or investment are allocated among parties before any further distributions are made. Typically, this clause specifies that a certain percentage or amount of profits is distributed to a designated party or group until a threshold is reached, after which additional profits may be shared differently. By clearly outlining the priority and method of distributing early profits, this clause ensures transparency and helps prevent disputes over initial returns.
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First Tier Profits. First, to the General Partner to the extent of the amount by which the aggregate cumulative Net Losses for the current and all prior fiscal years of the Partnership allocated to such Partner throughout the term hereof pursuant to Section 4.01(c) exceeds the aggregate cumulative Net Profits for the current and all prior fiscal years of the Partnership allocated to such Partner throughout the term hereof pursuant to this Section 4.02(a);
First Tier Profits. First, to the Members in proportion to, and to the extent of, the negative balance, if any, standing in each such Member’s Capital Account at the end of such Fiscal Year (or part thereof); and
First Tier Profits. First, to the Members in proportion to, and to the extent of, the excess, if any, of (i) any Net Losses previously allocated to the Members pursuant to Sections 4.01(b) through 4.01(c) for the current and all prior fiscal years of the Company (such Net Profits to be allocated in the reverse order in which such Net Losses were allocated pursuant to Sections 4.01(b) through 4.01(c) for the current and all prior fiscal years of the Company), less (ii) any Net Profits previously allocated to the Members pursuant to this Section 4.02(a) for the current and all prior fiscal years of the Company;