Other Profit Sample Clauses
The 'Other Profit' clause defines how additional profits, beyond those explicitly outlined elsewhere in the agreement, are to be handled between the parties. Typically, this clause clarifies whether such profits—arising from unexpected sources, ancillary activities, or side agreements related to the main contract—are to be shared, retained by one party, or distributed according to a specific formula. By addressing these potential earnings, the clause ensures transparency and prevents disputes over unanticipated financial gains, thereby allocating rights and expectations regarding extra profits that may arise during the course of the business relationship.
Other Profit. All items of Profit that are not otherwise allocated in this Section 3.2 shall be allocated to the Members in proportion to their respective Percentage Interests.
Other Profit. All Profit for any Fiscal Year not allocated pursuant to Section 7.01 (a), (b) and (c) shall be allocated as follows:
(i) First, to the extent that the allocation under Section 7.01 (b)(i) and (c)(i) shall not have offset all allocations of Default Losses to the Other Owners, to the Other Owners to the extent of and in the same proportion as such Default Losses which were not so offset were allocated;
(ii) Second, all income resulting from recoveries on defaulted Related Owner Notes shall be allocated to the Related Owner of such Notes to the extent the Related Owner was previously allocated Loss under Section 7.02(a) with respect to such Related Owner Notes; and
(iii) Third, to the Owners in proportion to their Sharing Ratios.
Other Profit. All items of Profit that are not otherwise allocated in this Section 3.2 shall be allocated to the Members in proportion to their respective Interests. For purposes of this Section 3.2, any costs that are funded by a Capital Contribution from a Member shall be treated as contributed by that Member. Any cost that is not funded by a Capital Contribution from a Member shall be treated as contributed by the Members in proportion to their Interests at the time that the cost is incurred by the Company.