Allocation of Gains Clause Samples

The Allocation of Gains clause defines how profits or financial gains resulting from a transaction or investment are distributed among the parties involved. Typically, this clause outlines the specific percentages or formulas used to divide gains, and may address timing, conditions, or adjustments based on performance or contributions. Its core practical function is to ensure transparency and prevent disputes by clearly specifying each party’s share of the gains, thereby allocating financial benefits in accordance with the agreed terms.
Allocation of Gains. Any net gains shall be allocated as follows: (i) First, net gains shall be allocated to each Partner with a deficit Capital Account, in the same ratio as the deficit in such Partner’s Capital Account bears to the aggregate of all such deficits, until all such deficits are reduced to zero; (ii) Next, to each Limited Partner, to the extent his Capital Account, after the allocation described in Subsection 7.2(a) (1) above, is less than his Capital Investment (the “Capital Investment Deficit”), in the same proportions as the Capital Investment Deficit in each Limited Partner’s Capital Account bears to the aggregate Capital Investment Deficits of all such Limited Partners, until the Capital Investment Deficits of all Limited Partners are reduced to zero; (iii) Next, to the General Partner, to the extent of its Capital Investment Deficit; and (iv) The balance, if any, to the Limited Partners and to the General Partner in proportion to their ownership of Partnership Interests.
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Allocation of Gains and Losses from a Capital Transaction. All gains and losses from a Capital Transaction shall be allocated in the following manner: A. All gains shall be allocated as follows: (i) First, an amount equal to the amount distributed in Section 6.3(d) shall be allocated as follows: (a) 5% to Meridian Associates '87; (b) the balance shall be allocated in equal shares to ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇, ▇▇., ▇▇▇▇ ▇.▇▇▇▇▇▇▇ and ▇▇▇▇▇ ▇. ▇▇▇▇▇▇; (ii) Second, after the allocation pursuant to Section 6.4(A)(i) and after the distribution in Section 6.3(d), gains shall be allocated among the Partners with negative o0068 PAGE 304 balances in their Capital Accounts in proportion to such balances until the Capital Account of each Partner is increased to zero; (iii) Third, to each Partner who has received or will receive a distribution out of the proceeds of such Capital Transaction pursuant to Section 6.3(e), an amount of gain equal to the excess of the distribution over the positive balances in the Capital Accounts of the Partners (determined after the allocation in this Section 6.4 (A)(ii)), in proportion to the respective amounts of such excess; and (iv) Fourth, gain in excess of amounts allocated under subsections (i), (ii) and (iii) above shall be allocated to the Partners in accordance with their Partnership Interests as set forth on Schedule I. B. All losses shall be allocated as follows: (i) First, an amount of loss equal to the amount by which the aggregate amount of the Capital Accounts for all Partners exceeds the total capital contributions of all Partners shall be allocated in the ratio that each Partner's individual excess balance in his Capital Account bears to the aggregate excess balances of all Partners; (ii) Second, the remainder of the loss shall be allocated among the Partners with positive Capital Accounts, after giving effect to allocations under Section 6.4B (i), by allocating an amount of loss to each such Partner which bears the same ratio to the total loss to be allocated under this, Section 6.4B (ii) as the positive Capital Account of such Partner bears to the sum of the positive Capital Accounts of all Partners; and (iii) Third, the amount of loss that remains after the allocations under the preceding subsections (i) and (ii) shall be allocated to the Partners in accordance with their respective Partnership Interests as set forth on Schedule I.
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Allocation of Gains. (a) Gain realized upon the sale or other disposition of property by the Partnership, including deemed sales described in clause (b) of the definition of “Net Profits” and “Net Losses” set forth in Article 1, shall be allocated in the following order: (i) There shall first be allocated to those Partners, if any, who have deficit balances in their Capital Accounts immediately prior to such sale or other disposition an amount of such gain equal to the aggregate amount of such deficit balances, which amount shall be allocated in the same proportion as such deficit balances; and (ii) There shall next be allocated to each of the Partners gain in such amounts and proportions as are necessary so that the positive Capital Account balances of the Partners reflect, as closely as possible, the amounts to which they would be entitled if all of the assets of the Partnership were distributed to the Partners pursuant to Section 5.1. (b) If the Partnership shall realize, upon a sale or other disposition, gain which does not constitute long-term capital gain and to which the provisions of Section 1231 of the Code do not apply, the foregoing provisions of this Section 6.2 shall be successively applied to (i) such gain, (ii) gain which is subject to the provisions of Section 1231 of the Code and (iii) long-term capital gain.
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Allocation of Gains. (a) Gain realized upon the sale or other disposition of property by the Partnership, including deemed sales described in clause (b) of the definition of "Net Profits" and "Net Losses" set forth in Article 1, shall be allocated in the following order:
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Related to Allocation of Gains

  • Allocation of Net Income and Net Loss Net Income or Net Loss of the Partnership shall be determined as of the end of each calendar year and as of the end of any interim period extending through the day immediately preceding any (i) disproportionate Capital Contribution, (ii) disproportionate distribution, (iii) Transfer of a Partnership Interest in accordance with the terms of this Agreement, or (iv) Withdrawal Event. If a calendar year includes an interim period, the determination of Net Income or Net Loss for the period extending through the last day of the calendar year shall include only that period of less than twelve (12) months occurring from the day immediately following the last day of the latest interim period during the calendar year and extending through the last day of the calendar year. For all purposes, including income tax purposes, Net Income, if any, of the Partnership for each calendar year or interim period shall be allocated among the Partners in proportion to their respective Partnership Percentages for the calendar year or interim period. In the event of a Net Loss for a particular calendar year or interim period, then, for such calendar year or interim period, the Net Loss for such calendar year or interim period shall be allocated among the Partners in proportion to their respective Partnership Percentages for the calendar year or interim period.

  • Allocation of Net Profits and Net Losses As of the last day of each Fiscal Period, any Net Profits or Net Losses for the Fiscal Period shall be allocated among and credited to or debited against the Capital Accounts of the Members in accordance with their respective Investment Percentages for such Fiscal Period.

  • Allocation of Profits and Losses The Company’s profits and losses shall be allocated to the Member.

  • Limitation on Allocation of Net Loss To the extent that any allocation of Net Loss would cause or increase an Adjusted Capital Account Deficit as to any Holder, such allocation of Net Loss shall be reallocated (x) first, among the other Holders of Partnership Common Units in accordance with their respective Percentage Interests with respect to Partnership Common Units and (y) thereafter, among the Holders of other classes of Partnership Units as determined by the General Partner, subject to the limitations of this Section 6.4.A(vi).

  • Allocation of Profits and Losses Distributions Profits/Losses. For financial accounting and tax purposes, the Company's net profits or net losses shall be determined on an annual basis and shall be allocated to the Members in proportion to each Member's relative capital interest in the Company as set forth in Schedule 2 as amended from time to time in accordance with U.S. Department of the Treasury Regulation 1.704-1.