Common use of Allocations of Net Profits and Net Losses and Distributions Clause in Contracts

Allocations of Net Profits and Net Losses and Distributions. 6.1 Allocations of Net Profit and Net Loss. A. Net Loss. Net Loss shall be allocated to the Members in proportion to their Percentage Interests. Notwithstanding the previous sentence, loss allocations to a Member shall be made only to the extent that such loss allocations will not create a deficit Capital Account balance for that Member in excess of an amount, if any, equal to such Member’s share of Company Minimum Gain that would be realized on a foreclosure of the Company’s property. Any loss not allocated to a Member because of the foregoing provision shall be allocated to the other Members (to the extent the other Members are not limited in respect of the allocation of losses under this Section ▇.▇▇). Any loss reallocated under this Section ▇.▇▇ shall be taken into account in computing subsequent allocations of income and losses pursuant to this Article VI, so that the net amount of any item so allocated and the income and losses allocated to each Member pursuant to this Article VI, to the extent possible, shall be equal to the net amount that would have been allocated to each such Member pursuant to this Article VI if no reallocation of losses had occurred under this Section ▇.▇▇. B. Net Profit. Net Profit shall be allocated to the Members in proportion to their Percentage Interests.

Allocations of Net Profits and Net Losses and Distributions. 6.1 Allocations of Net Profit and Net Loss. A. (a) Net Loss. Net Loss shall will be allocated to the Members in proportion to their Percentage Interests. Notwithstanding the previous sentence, loss allocations to a Member shall will be made only to the extent that such loss allocations will not create a deficit Capital Account balance for that Member in excess of an amount, if any, equal to such Member’s share of Company Minimum Gain that would be realized on a foreclosure of the Company’s property. Any loss not allocated to a Member because of the foregoing provision shall will be allocated to the other Members (to the extent the other Members are not limited in respect of the allocation of losses under this Section ▇.▇▇6.1(a). Any loss reallocated under this Section ▇.▇▇ shall 6.1(a) will be taken into account in computing subsequent allocations of income and losses pursuant to this Article VI6, so that the net amount of any item so allocated and the income and losses allocated to each Member pursuant to this Article VI6, to the extent possible, shall will be equal to the net amount that would have been allocated to each such Member pursuant to this Article VI 6 if no reallocation of losses had occurred under this Section ▇.▇▇6.1(a). B. (b) Net Profit. Net Profit shall will be allocated to the Members in proportion to their Percentage Interests.