Limitation on Allocation of Net Loss. Notwithstanding any other provision in Section 5.1 or Section 5.2, Net Loss and individual items of loss or deduction may not be allocated to a Member to the extent that the allocation would result in a deficit balance in the Member’s Adjusted Capital Account as of the end of any Fiscal Year (or other applicable period). Any such items in excess of this limitations will be allocated in the manner determined by Manager in the Manager’s discretion.
Appears in 2 contracts
Sources: Limited Liability Company Operating Agreement, Limited Liability Company Operating Agreement