Common use of No Excess Deficit Clause in Contracts

No Excess Deficit. To the extent that any Class B Member has or would have, as a result of an allocation of Loss (or item thereof), an Adjusted Capital Account Deficit, such amount of Loss (or item thereof) shall be allocated to the other Class B Members in accordance with Section 9.2(a), but in a manner which will not produce an Adjusted Capital Account Deficit as to such Class B Members. To the extent such allocation would result in all Class B Members having Adjusted Capital Account Deficits, such Loss shall be allocated to the Class B Members in the manner required by the Regulations under Section 704 of the Code. Where the Company is entitled to select an allocation method under such Regulations, the method shall be selected by the Directors.

No Excess Deficit. To the extent that any Class B Member has ----------------- or would have, as a result of an allocation of Loss (or item thereof), an Adjusted Capital Account Deficit, such amount of Loss (or item thereof) shall be allocated to the other Class B Members in accordance with Section 9.2(a8.02(a), but in a manner which will not produce an Adjusted Capital Account Deficit as to such Class B Members. To the extent such allocation would result in all Class B Members having Adjusted Capital Account Deficits, such Loss shall be allocated to the Class B Members in the manner required by the Regulations under Section 704 of the Code. Where the Company is entitled to select an allocation method under such Regulations, the method shall be selected by the DirectorsManaging Member.