Common use of Allocation of Net Profits Clause in Contracts

Allocation of Net Profits. For each fiscal year, the Net Profits of the Company shall be allocated as follows: (a) First, to the Members to the extent of, and in proportion to, the amount by which the aggregate Net Losses allocated to the Members pursuant to Section 7.2(b) exceeds the aggregate Net Profits previously allocated to the Members pursuant to this Section 7.1(a); (b) Second, to the Members to the extent of, and in proportion to, the amount of their respective Effective Date Unreturned Capital until the aggregate amount of Net Profits allocated to each Member under this Section 7.1(b) for all fiscal years equals the Effective Date Unreturned Capital for such Member; and (c) Thereafter, to the Members in proportion to their respective Percentage Interests.

Allocation of Net Profits. For each fiscal year, the Net Profits of ------------------------- the Company shall be allocated as follows: (a) First, to the Members to the extent of, and in proportion to, the amount by which the aggregate Net Losses allocated to the Members pursuant to Section 7.2(b) exceeds the aggregate Net Profits previously allocated to the Members pursuant to this Section 7.1(a); (b) Second, to the Members to the extent of, and in proportion to, the amount of their respective Effective Date Unreturned Capital until the aggregate amount of Net Profits allocated to each Member under this Section 7.1(b) for all fiscal years equals the Effective Date Unreturned Capital for such Member; and (c) Thereafter, to the Members in proportion to their respective Percentage Interests.