Common use of Net Loss Clause in Contracts

Net Loss. After all allocations have been made pursuant to Section 5.3 and 5.4, Net Loss for any period shall be allocated as follows: (a) first, to the Members to the extent of and in proportion to the positive balances in their Capital Accounts; and (b) thereafter, to the Members in proportion to their respective Percentage Interests. (c) Notwithstanding any other provision of this Section 5.2, Net Loss shall not be allocated to a Member to the extent such allocation would create or increase a deficit in such Member’s Adjusted Capital Account Balance, but shall instead be allocated to any other Member or Members with a positive Adjusted Capital Account Balance, to the extent of and in proportion to such positive balances, until the Adjusted Capital Account Balance of each Member has been reduced to zero.

Net Loss. After all allocations have been made pursuant to Section 5.3 and 5.4, 5.4 Net Loss for any period shall be allocated as follows: (a) first, to the Members to the extent of and in proportion to the positive balances in their Capital Accounts; and (b) thereafter, to the Members in proportion to their respective Percentage Interests. (c) Notwithstanding any other provision of this Section 5.2, Net Loss shall not be allocated to a Member to the extent such allocation would create or increase a deficit in such Member’s Adjusted Capital Account Balance, but shall instead be allocated to any other Member or Members with a positive Adjusted Capital Account Balance, to the extent of and in proportion to such positive balances, until the Adjusted Capital Account Balance of each Member has been reduced to zero.