Common use of Allocation of Net Loss Clause in Contracts

Allocation of Net Loss. Losses for each fiscal year shall be allocated among the Members as follows: 5.2.1 First, to the FCE Entity to the extent of the Priority Return allocated to the FCE Entity under Section 5.1.5 to the extent not previously distributed; 5.2.2 Second, to the FCE Entity an amount of loss equal to the FCE Entity’s Unreturned Capital; 5.2.3 Third, to the Members, to the extent of any Preferred Return allocated to the Members under Section 5.1.6 to the extent not previously distributed; 5.2.4 Fourth, to the Members, to the extent of their respective positive Capital Account balances; and 5.2.5 Last, to the Members in accordance with their respective Company Percentages.