Common use of Allocation of Net Profits and Net Losses Clause in Contracts

Allocation of Net Profits and Net Losses. Except as otherwise provided in this Article 4, after giving effect to the special allocations in Section 4.2, Section 4.3, Section 4.4, Section 4.5, Section 4.6 and Section 4.7 hereof, Net Profits and Net Losses for any Fiscal Year shall be allocated among the Partners so as to reduce, proportionately, the differences between their respective Partially Adjusted Capital Accounts and Target Capital Accounts for such Fiscal Year. No portion of the Net Profits for any Fiscal Year shall be allocated to a Partner whose Partially Adjusted Capital Account is greater than or equal to his Target Capital Account for such Fiscal Year. No portion of the Net Losses for any Fiscal Year shall be allocated to a Partner whose Partially Adjusted Capital Account is less than or equal to his Target Capital Account for such Fiscal Year.