Company Profits definition
Examples of Company Profits in a sentence
None of the provisions of this Agreement shall be for the benefit of or enforceable by any creditors of the Company or any of its Affiliates, and no creditor who makes a loan to the Company or any of its Affiliates may have or acquire (except pursuant to the terms of a separate agreement executed by the Company in favor of such creditor) at any time as a result of making the loan any direct or indirect interest in Company Profits, Losses, Distributions, capital or property other than as a secured creditor.
Litigation could require diversion of Company Profits to pay attorney’s fees or could tie up Company funds necessary for operation of the Company, impacting the profitability of the investment for all Members.
Except as otherwise provided in section 1.704-2 of the Treasury Regulations, and notwithstanding any other provision of this Section, if there is a net decrease in Company Minimum Gain during any Fiscal Year, each Member shall be specially allocated items of Company Profits for such Fiscal Year (and, if necessary, subsequent Fiscal Years) in an amount equal to such Member's share of the net decrease in Company Minimum Gain, determined in accordance with Treasury Regulation section 1.704-2(g).
The Regulatory Allocations may not be consistent with the manner in which the Members intend to divide Company Profits, Losses, and other similar items.
Each Company Profits Unit represents the right to a pro rata share of any distributions received by the Company in respect of the corresponding TJ Chemical Profits Units held by the Company in accordance with the Management LLC Agreement.
None of the provisions of this Agreement shall be for the benefit of or enforceable by any creditors of the Company or any of its Affiliates, and no creditor who makes a loan to the Company or any of its Affiliates may have or acquire at any time as a result of making the loan any direct or indirect interest in Company Profits, Losses, Distributions, capital or property, other than as a secured creditor.
By virtue of ownership of a Company Profits Unit, the Participant shall have no right or obligation to make any Capital Contribution to the Company at any time and shall have no rights to any capital contributed to the Company.
Each Company Profits Unit is intended to be a “profits interest” within the meaning of Rev.
Allocations pursuant to this Section 4.03(a) are solely for federal and, as applicable, state income tax purposes and shall not affect, or in any way be taken into account in computing, any Member’s Capital Account or any Member’s share of Company Profits, Company Losses, or any other Company items taken into account in computing the Member’s Capital Accounts or distributions pursuant to any provision of this Agreement.
For purposes of determining Company Profits, Company Losses, or any Company items of income, gain, loss, deduction, or credit allocable to any Allocation Period, such Company Profits, Company Losses, and any such other items shall be determined using such method(s) and/or convention(s) as may be permitted or required under the Code or Treasury Regulations, as determined by the Board of Managers.