Common use of General Allocation Rules Clause in Contracts

General Allocation Rules. After giving effect to the special allocations set forth in Section 4 of this Exhibit B, all Net Profit and Net Loss (and to the extent necessary, as set forth in clauses (A) and (B) of this Section 3, items of gross income, gain, expense and loss) of the Company shall be allocated to the Members as follows: A. Net Loss shall be allocated among the Members so as to reduce, proportionately, the differences between their respective Partially Adjusted Capital Accounts and Target Capital Accounts for such year; provided, however, that no portion of the Net Loss for any taxable year shall be allocated to a Member whose Target Capital Account is greater than or equal to its Partially Adjusted Capital Account for such taxable year; and B. Net Profit shall be allocated among the Members so as to reduce, proportionately, the differences between their respective Target Capital Accounts and Partially Adjusted Capital Accounts for such year; provided, however, that no portion of the Net Profit for any taxable year shall be allocated to a Member whose Target Capital Account is less than or equal to its Partially Adjusted Capital Account for such taxable year.