Final Ratio Sample Clauses
The Final Ratio clause defines the definitive proportion or percentage used to allocate amounts, benefits, or liabilities between parties at the conclusion of a contract or transaction. In practice, this clause specifies how the final distribution is calculated, often based on agreed metrics such as contributions, performance, or other relevant factors determined at the end of the contractual period. Its core function is to ensure a clear and fair method for dividing outcomes, thereby preventing disputes and providing certainty regarding each party’s share.
Final Ratio. It is intended that the allocation provisions of this Article 9 shall result in final positive Capital Account balances of the Shareholders under Section 12.3 which are equal to each Shareholder's Percentage Interests (the "Final Ratio"). To the extent that such final positive Capital Account balances are not in the Final Ratio, Net Income, Net Loss and items thereof, as computed for book purposes, shall be allocated among the Shareholders so as to result in final positive Capital Account balances which are in the Final Ratio. This Section 9.6.(c) shall control notwithstanding any reallocation of income, loss, or items thereof, as computed for book purposes, by the Internal Revenue Service or any other taxing authority.
Final Ratio. It is intended that the allocation provisions of this Article 9 shall result in final positive Capital Account balances of the Shareholders under Section 12.3 hereof which are initially equal to each Shareholder's Adjusted Contribution and are then in proportion to the Shareholders' respective Percentage Interests (the "Final Ratio"). To the extent that such final positive Capital Account balances are not in the Final Ratio, income and loss of the Partnership for the current year and future years, as computed for book purposes, shall be allocated among the Shareholders so as to result in final positive Capital Account balances which are in the Final Ratio. This Section 9.6.(c) shall control notwithstanding any reallocation of income, loss, or items thereof, as computed for book purposes, by the Internal Revenue Service or any other taxing authority.