Allocation of Net Losses. Net Losses for each fiscal period of the Company shall be allocated to the Members: (a) first, to those Members whose Adjusted Capital Accounts are in excess of the sum of their Adjusted Capital Contributions and their Unpaid Preferred Returns, among them in accordance with the ratio of these excesses, until all of these excesses have been eliminated. (b) second, to those Members whose Adjusted Capital Accounts are in excess of their Adjusted Capital Contributions, among them in accordance with the ratio of these excesses, until all of these excesses have been eliminated; and (c) third, to those Members whose Adjusted Capital Accounts are greater than zero, among them in accordance with the ratio of their positive Adjusted Capital Account balances, until no Member has a positive Adjusted Capital Account.
Appears in 3 contracts
Sources: Limited Liability Company Agreement (Global Clean Energy Holdings, Inc.), Limited Liability Company Agreement (Global Clean Energy Holdings, Inc.), Limited Liability Company Agreement (Global Clean Energy Holdings, Inc.)