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6.2. Allocations of Profits and Losses. <br /> (a) Except as provided in Sections 6.3, 6.4, 6.5 and 6.6 <br /> below, (i) Profits for any year shall be allocated 99 percent to <br /> the Limited Partners in proportion to their Percentage Interests <br /> and one percent to the General Partner; provided, however, that <br /> any interest imputed to the Partnership with respect to the <br /> Investor Notes shall be specially allocated to the Partners that <br /> contributed the Investor Notes; and (ii) Losses attributable to <br /> nonrecourse deductions shall be allocated 99 percent to the <br /> Limited Partners in proportion to their Percentage Interests and <br /> one percent to the General Partner; all other Losses shall be <br /> allocated to the extent allowable under Section 704(b) of the <br /> Code, 99 percent to the Limited Partners in proportion to their <br /> Percentage Interests, with the balance of the Losses allocated to <br /> the General Partner. <br /> (b) Allocation of specific items shall in any event be in <br /> the manner necessary to assure compliance with Treasury <br /> Regulations Section 1.704 -1(b). <br /> (c) When Partnership interests are assigned or acquired from <br /> the Partnership, Profits and Losses will be allocated to the new <br /> holder of a Partnership interest from and after the date he is <br /> deemed to hold the interest, taking into account the convention <br /> used by the Partnership and Sections 10.3 and 10.5 of this <br /> Agreement. Such convention initially shall be the semi monthly <br /> convention, using the interim closing of the books method, in <br /> which event Partnership interests held on the 15th day of the <br /> month are deemed held as of the first day of the month in which <br /> -20- <br />