Common use of Allocation of Net Profits Clause in Contracts

Allocation of Net Profits. After application of Sections 4.03 and 4.04, Net Profits for each Fiscal Year shall be allocated among the Members in the following order and priority: (a) first, to the Members, in proportion to and to the extent of the amounts necessary to cause the cumulative allocations of Net Profits to each Member under this Section 4.02 (a) for the current and all prior Fiscal Years to equal the cumulative allocations of Net Losses to such Member pursuant to Section 4.01(c) hereof; (b) second, to the Members, pro rata in accordance with each Member’s Percentage Interest, until the balance of each Member’s Capital Account (as of the last day of such Fiscal Year, but adjusted to reflect any Net Profits for such Fiscal Year allocated to such Member pursuant to Section 4.01 and Section 4.03 and 4.04 hereof) equals such Member’s 12% IRR Amount (as of the last day of such Fiscal Year); (c) fourth, subject to Section 4.04(b), 50% to ▇▇▇▇▇▇ and 50% to the Members, pro rata, in proportion to their respective Percentage Interests. For purposes of determining the amount of Net Profits to be allocated pursuant to Section 4.02(b) for any Fiscal Year, the Capital Account of each Member shall be increased by such Member’s share of “partnership minimum gain” as of the last day of such Fiscal Year, determined pursuant to Section 1.704-2(g)(1) of the Regulations, and by such Member’s share of “partner nonrecourse debt minimum gain” as of the last day of such Fiscal Year, determined pursuant to Section 1.704-2(i)(5) of the Regulations.

Allocation of Net Profits. After application of Sections 4.03 and 4.04, Net Profits for each Fiscal Year shall be allocated among the Members in the following order and priority: (a) first, to the Members, in proportion to and to the extent of the amounts necessary to cause the cumulative allocations of Net Profits to each Member under this Section 4.02 (a4.02(a) for the current and all prior Fiscal Years to equal the cumulative allocations of Net Losses to such Member pursuant to Section 4.01(c) hereof; (b) second, to the Members, pro rata in accordance with each Member’s Percentage Interest, until the balance of each Member’s Capital Account (as of the last day of such Fiscal Year, but adjusted to reflect any Net Profits for such Fiscal Year allocated to such Member pursuant to Section 4.01 and Section 4.03 and 4.04 hereof) equals such Member’s 12% IRR Amount (as of the last day of such Fiscal Year); (c) fourth, subject to Section 4.04(b), 50% to ▇▇▇▇▇▇ and 50% to the Members, pro rata, in proportion to their respective Percentage Interests. For purposes of determining the amount of Net Profits to be allocated pursuant to Section 4.02(b) for any Fiscal Year, the Capital Account of each Member shall be increased by such Member’s share of “partnership minimum gain” as of the last day of such Fiscal Year, determined pursuant to Section 1.704-2(g)(1) of the Regulations, and by such Member’s share of “partner nonrecourse debt minimum gain” as of the last day of such Fiscal Year, determined pursuant to Section 1.704-2(i)(5) of the Regulations.

Allocation of Net Profits. After application of Sections 4.03 and 4.04, Net Profits for each Fiscal Year shall be allocated among the Members in the following order and priority: (a) first, to the Members, in proportion to and to the extent of the amounts necessary to cause the cumulative allocations of Net Profits to each Member under this Section 4.02 (a4.02(a) for the current and all prior Fiscal Years to equal the cumulative allocations of Net Losses to such Member pursuant to Section 4.01(c) hereof; (b) second, to the Members, pro rata in accordance with each Member’s Percentage Interest, Paladin until the balance of each MemberPaladin’s Capital Account (as of the last day of such Fiscal Year, but adjusted to reflect any Net Profits for such Fiscal Year allocated to such Member Paladin pursuant to Section 4.01 4.02(a) and Section Sections 4.03 and 4.04 hereof) equals such Memberthe sum of (i) Paladin’s 1215% IRR Amount (as of the last day of such Fiscal Year), (ii) Paladin’s Unrecovered Shortfall Contribution Account, (iii) Paladin’s Shortfall Contribution Bonus, and (iv) Paladin’s Unpaid Shortfall Contribution Return; (c) fourththird, subject to Section 4.04(b), 50100% to ▇▇▇▇▇▇ and 50% to the Members, pro rata, in proportion to their respective Percentage Interests▇. For purposes of determining the amount of Net Profits to be allocated pursuant to Section 4.02(b) for any Fiscal Year, the Capital Account of each Member shall be increased by such Member’s share of “partnership minimum gain” as of the last day of such Fiscal Year, determined pursuant to Section 1.704-2(g)(1) of the Regulations, and by such Member’s share of “partner nonrecourse debt minimum gain” as of the last day of such Fiscal Year, determined pursuant to Section 1.704-2(i)(5) of the Regulations.