Common use of Net Profits and Net Losses Clause in Contracts

Net Profits and Net Losses. (a) The Net Profits and Net Losses of the Company for purposes of determining allocations to the Capital Accounts of the Members shall be determined in the same manner as set forth in the definition of “Net Profits” and “Net Losses” in Section 1.01 of the Agreement. (b) For purposes of Section 2.02(a), in the event that the book value of any item of Company property differs from its tax adjusted basis, the amount of book depreciation, depletion, or amortization for a period with respect to such property shall be computed so as to bear the same relationship to the book value of such property as the depreciation, depletion, or amortization computed for tax purposes with respect to such property for such period bears to the adjusted tax basis of such property. If the adjusted tax basis of such property is zero, the depreciation, depletion, or amortization with respect to such property shall be computed by using any reasonable method selected by the Company.

Net Profits and Net Losses. (a) The Net Profits and Net Losses of the Company Member Newco for purposes of determining allocations to the Capital Accounts of the Members shall be determined in the same manner as set forth in the definition of “"Net Profits” " and “"Net Losses” " in Section 1.01 of the Agreement. (b) For purposes of Section 2.02(a), in the event that the book value of any item of Company Member Newco property differs from its tax adjusted basis, the amount of book depreciation, depletion, or amortization for a period with respect to such property shall be computed so as to bear the same relationship to the book value of such property as the depreciation, depletion, or amortization computed for tax purposes with respect to such property for such period bears to the adjusted tax basis of such property. If the adjusted tax basis of such property is zero, the depreciation, depletion, or amortization with respect to such property shall be computed by using any reasonable method selected by the CompanyMember Newco.