Common use of Allocation of Profit Clause in Contracts

Allocation of Profit. Profit (as defined in Section 6.5, below) for each taxable year shall be allocated as follows: (a) First, in the event that Loss has been previously allocated to the Members pursuant to Section 6.2(b) for any prior period, then Profit shall be allocated to the Members to offset such Loss; and (b) Second, the balance of any Profit then remaining shall be allocated to the Members in proportion to their respective Percentage Interests.