Allocation of Net Profits and Net Loss Clause Samples

The "Allocation of Net Profits and Net Loss" clause defines how a business’s profits and losses are distributed among its owners or partners. Typically, this clause specifies the proportion or method by which each party receives a share of the net profits or is responsible for net losses, often based on ownership percentages or another agreed formula. By clearly outlining these allocations, the clause ensures transparency and fairness in financial distributions, preventing disputes and misunderstandings regarding each party’s financial rights and obligations.
Allocation of Net Profits and Net Loss. Subject to Sections 3.04, 3.05, 3.06, 3.07, 3.08, 3.09 and 3.10 hereof, Net Profits and Net Loss for a Fiscal Year shall be determined and allocated to the Owners as follows:
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Allocation of Net Profits and Net Loss. Subject to any special allocations required by Sections 7.6 and 7.7, Net Profits or Net Loss shall be allocated among the Members to be shared by them on a pro rata basis in accordance with their Membership Percentages.
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Allocation of Net Profits and Net Loss. Subject to Section 4.3, Net Profits and Net Loss shall be allocated among the Members as follows: (a) Each Member’s Percentage Interest in all items of Net Loss shall be allocated to such Member. (b) Each Member’s Percentage Interest in all items of Net Profits shall be allocated to such Member (i) first to offset any Net Loss allocated under Section 4.1(a) and (ii) thereafter until such Member has been allocated an amount sufficient to give such Member its Priority Return. (c) A Member’s share of Net Profits which have not been allocated under Section 4.1(b) shall be allocated to the Manager until the cumulative amount of all Net Profits allocated to the Manager (ignoring Net Profits allocated to the Manager by virtue of its Capital Contributions, if any) is equal to twenty-five percent (25%) of the Net Profits allocated to such Member under Section 4.1(b)(ii). (d) Any portion of a Member’s Percentage Interest of Net Profits remaining to be allocated (after application of Section 4.1(b) and (c)) shall be allocated twenty percent (20%) to the Manager and eighty percent (80%) to such Member.
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Allocation of Net Profits and Net Loss. (a) Net Profits and Net Losses for each Accounting Period from the operations of the Partnership shall be determined in accordance with the method of accounting and books and records of the Partnership. Except as provided in Sections 3.06(b), (c) and (d) and 3.07, Net Profits and Net Losses attributable to each Accounting Period shall be allocated among the Partners as follows: (i) First, each Partner shall preliminarily be allocated Net Profits and Net Losses during the Accounting Period, pro rata in accordance with their Partnership Percentages for such Accounting Period; and (ii) Second, notwithstanding Section 3.06(a)(i), at the end of each Fiscal Year, after giving effect to the allocations provided for in Section 3.06(a)(i), 20% of the amount, if any, by which Net Profits for each Accounting Period in such Fiscal Year exceed Net Losses for each Accounting Period in such Fiscal Year shall be reallocated to the General Partner. (b) Notwithstanding anything to the contrary contained herein, items of income, gain, loss and deduction with respect to an adjustment to the Partners' Capital Accounts pursuant to Section 3.04(b) to reflect a revaluation of the property of the Partnership shall be allocated among the Partners so as to take account of the adjustments to the Partner's Capital Accounts as required in Treasury Regulation Sections 1.704-1(b)(2)(iv)(f) and 1.704-1(b)(2)(iv)(g), as currently in effect. (c) In accordance with Code Sections 704(b), 704(c) and the Regulations thereunder, income, gain, loss and deduction with respect to (i) any property contributed to the capital of the Partnership, and (ii) all property owned by the Partnership on each Adjustment Date, shall, solely for tax purposes, be allocated among the Partners so as to take account of any variation between the adjusted basis of such property to the Partnership for federal income tax purposes and its value on, as the case may be, the date of contribution or the Adjustment Date. (d) For income tax purposes, allocations of income or loss (and items thereof) shall be made in accordance with the foregoing allocations of income and loss for financial purposes. (e) As between a Partner who has transferred all or part of its interest in the Partnership and its transferee, all items of income, gain, deduction and loss, for any year shall be apportioned on the basis of the number of days in each such year that each was the holder of such interest (making adjustments necessary to comply with t...
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Allocation of Net Profits and Net Loss. Except as required by Code Section 704(c) (dealing with contributed property), and after giving effect to the special allocations and limitations set forth in Section 4.1(b) and in Sections 4.2 and 4.3: (a) Net Profits for any Fiscal Year shall be allocated in the following order and ‘ priority: (i) First, to the Partners in an amount equal to the excess, if any, of (i) the cumulative Net Loss allocated pursuant to Section 4.1(b) for all prior Fiscal Years, over (ii) the cumulative Net Profits allocated pursuant to this Section 4.1(a) for all prior Fiscal Years; provided, however, such allocation among the Partners shall be in such amounts as will proportionately reduce such respective excess amounts of the various Partners. (ii) The balance, if any, to the Partners to be allocated among them in proportion to their respective Percentage Interests. (b) Net Loss for any Fiscal Year shall be allocated as set forth in Section 4.1(b)(i), subject to the limitation in Section 4.1(b)(ii). (i) Net Loss for any Fiscal Year shall be allocated among the Partners in proportion to their respective Percentage Interests. (ii) No Net Loss (or item of loss or deduction) shall be allocated to a Partner if such allocation would cause the Partner to have an Adjusted Capital Account Deficit, as hereinafter defined, at the end of any Fiscal Year. Such Net Loss (or item of loss or deduction) shall be allocated among the Partners whose Adjusted Capital Account, as hereinafter defined, balances are positive in proportion to such positive balances to the extent necessary to reduce the balances of such other Partners’ positive Adjusted Capital Accounts balances to zero, it being the intention of the Partners that no Partner’s Adjusted Capital Account balance shall fall below zero while any other Partner’s Adjusted Capital Account has a positive balance. In the event no Partner has a positive Adjusted Capital Account balance, such Net Loss (or item of loss or deduction) shall be allocated in accordance with Section 5.1(b)(i) unless otherwise required by Code Section 704(b) and the Treasury Regulations thereunder.
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Allocation of Net Profits and Net Loss. (a) Net Profits and Net Losses for each Accounting Period from the operations of the Partnership shall be determined in accordance with the method of accounting and books and records of the Partnership. Except as provided in Sections 3.06(b), (c) and
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Related to Allocation of Net Profits and Net Loss

  • Allocation of Net Profits and Net Losses As of the last day of each Fiscal Period, any Net Profits or Net Losses for the Fiscal Period shall be allocated among and credited to or debited against the Capital Accounts of the Members in accordance with their respective Investment Percentages for such Fiscal Period.

  • Allocation of Net Income and Net Loss Net Income or Net Loss of the Partnership shall be determined as of the end of each calendar year and as of the end of any interim period extending through the day immediately preceding any (i) disproportionate Capital Contribution, (ii) disproportionate distribution, (iii) Transfer of a Partnership Interest in accordance with the terms of this Agreement, or (iv) Withdrawal Event. If a calendar year includes an interim period, the determination of Net Income or Net Loss for the period extending through the last day of the calendar year shall include only that period of less than twelve (12) months occurring from the day immediately following the last day of the latest interim period during the calendar year and extending through the last day of the calendar year. For all purposes, including income tax purposes, Net Income, if any, of the Partnership for each calendar year or interim period shall be allocated among the Partners in proportion to their respective Partnership Percentages for the calendar year or interim period. In the event of a Net Loss for a particular calendar year or interim period, then, for such calendar year or interim period, the Net Loss for such calendar year or interim period shall be allocated among the Partners in proportion to their respective Partnership Percentages for the calendar year or interim period.

  • Allocations of Net Profits and Net Losses Except as otherwise set forth herein, Net Profits and Net Losses shall be allocated for each Fiscal Year to the Members in proportion to their respective Capital Accounts.

  • Allocation of Profits and Losses The Company’s profits and losses shall be allocated to the Member.

  • Allocations of Net Income and Net Loss Except as otherwise provided in this Agreement, after giving effect to the special allocations in subparagraph 1(c) and paragraph 2, Net Income, Net Loss and, to the extent necessary, individual items of income, gain, loss or deduction, of the Partnership for each fiscal year or other applicable period of the Partnership shall be allocated among the General Partner and Limited Partners in accordance with their respective Percentage Interests.