Common use of Profits Losses and Distribution Clause in Contracts

Profits Losses and Distribution. PROFITS/LOSSES. For accounting and tax purposes, the Company's net profits or net losses will be determined annually. As provided in Section 6.03, below, profits and losses will be allocated to the Member in accordance with Treasury Regulation 1.704-1. DISTRIBUTIONS. Pursuant to Sections 18-2025, 18-2026, and 18-2030 of the Act, the Member may determine to distribute available funds annually or as the Member sees fit, provided that there remains sufficient funds to cover any debts or liabilities of the Company about which the Member knows or has reason to know or expect. “Available funds” means the Company’s net cash available after expenses, working capital, and liabilities, as determined by the Member. Distributions in liquidation of the Company or in liquidation of a Member's interest must be made in accordance with the positive capital account balances pursuant to Treasury Regulation 1.704-1(b)(2)(ii)(b)(2). To the extent the Member has a negative capital account balance, there will be a qualified income offset, as set forth in Treasury Regulation 1.704-1(b)(2)(ii)(d).

Profits Losses and Distribution. PROFITS/LOSSES. For accounting and tax purposes, the Company's net profits or net losses will be determined annually. As provided in Section 6.03, below, profits and losses will be allocated to the Member in accordance with Treasury Regulation 1.704-1. DISTRIBUTIONS. Pursuant to Sections 1847-2025, 1834A-405 and 47-2026, and 18-2030 34A-406 of the Act, the Member may determine to distribute available funds annually or as the Member sees fit, provided that there remains sufficient funds to cover any debts or liabilities of the Company about which the Member knows or has reason to know or expect. “Available funds” means the Company’s net cash available after expenses, working capital, and liabilities, as determined by the Member. Distributions in liquidation of the Company or in liquidation of a Member's interest must be made in accordance with the positive capital account balances pursuant to Treasury Regulation 1.704-1(b)(2)(ii)(b)(2). To the extent the Member has a negative capital account balance, there will be a qualified income offset, as set forth in Treasury Regulation 1.704-1(b)(2)(ii)(d).