Common use of Revenue Allocation Clause in Contracts

Revenue Allocation. All revenue derived from the operation and exploitation of the partnership or partnership assets and properties shall first be applied to the ongoing business obligations of the partnership, as may be reasonably determined by the Partners. Next, the Partners shall determine if sufficient revenues exist for the Partners to take draws for their respective capital accounts prior to retiring the partnership capital obligations, then all revenues derived by the partnership shall be applied to the payment of any and all capital advanced to the partnership, by the Partners or others, plus interest. All revenue derived by the partnership in excess of the partnership obligations, draws, paid in capital and interest, shall be deemed "net profits".