Common use of ALLOCATION OF NET PROFITS AND LOSSES Clause in Contracts

ALLOCATION OF NET PROFITS AND LOSSES. The net profits of the Partnership shall be allocated to, and any net losses suffered by the Partnership shall be borne by, the Partners in proportion to their respective Partnership interests. In addition, any capital gains or losses on sales of any Partnership assets shall be allocated to or borne by the Partners in proportion to their respective Partnership interests. The initial Partnership interest of each Partner is as set forth in this Section, and a Partner's Partnership interest may only be increased or decreased by a transfer of a Partnership interest or a transfer of a portion of a Partnership interest as provided in this Agreement. USCC 49 % USCMC 51 % Total 100 %