Laserfiche WebLink
deten iined in accordance with Section 1.704- 1(b)(4)(iv)(e) of the Regulations. This Section 7 is <br />intenc ed to comply with the minimum gain chargeback requirement in such section of the <br />Regal itions and shall be interpreted consistently therewith. "Partnership Minimum Gain" shall <br />be co nputed in the manner described in Section 1.704- 2(d)(1) of the Regulations. "Adjusted <br />Defic Capital Account Balance" shall mean the deficit capital account balance of a Partner, if <br />any, s of the end of the relevant fiscal year of the Partnership, after giving effect to the <br />follo in g: (A) credit to such capital account any amounts the Partner is obligated to restore <br />purse t to the penultimate sentences of Sections 1.704- 2(g)(1) and 1.704- 2(i)(5) of the <br />Regul tions; and (B) debit to such capital account the items described in Sections 1.704 - <br />1(b)(2 (ii)(d)(4), (5) and (6) of the Regulations. <br />Section 8. Notwithstanding any provision of the foregoing Partnership Agreement to the <br />con , to the extent the payment of any expenditure by the Partnership is. treated as a <br />distrib ation to a Partner for federal income tax purposes, there will be a gross income allocation <br />to sue Partner in the amount of such distribution. <br />Section 9. Notwithstanding any provision of the foregoing Partnership Agreement to the <br />contra , if items of income or gain to be allocated include income or gain treated as ordinary <br />incom for federal income tax purposes because it is attributable to the recapture of depreciation <br />under 3ection 1245 or 1250 of the Code, such income or gain, to the extent treated as ordinary <br />incom , shall be allocated to and reported by the Partners in proportion to their then respective <br />cu mul five allocations of depreciation. <br />Section 10. Notwithstanding any provision of the foregoing Partnership Agreement to the <br />contrai y, except as provided in Section 7 of this Exhibit B above, in the event any Partner <br />unexpectedly receives any adjustments, allocations, or distributions described in Sections 1.704 - <br />l(b)(2 : (ii)(d)(4), (5) or (6) of the Regulations and any such adjustments, allocations, or <br />distrib tions cause or increase a Partner's Adjusted Deficit Capital Account Balance, then items <br />of Parl nership income and gain shall be specially allocated to such Partner in an amount and <br />manse sufficient to eliminate the Adjusted Deficit Capital Account Balance in the Partner's <br />capital account created by such adjustments, allocations, or distributions as quickly as possible. <br />Any sr ecial allocations of items of income or gain pursuant to this Section 10 shall be taken into <br />accoun L in computing subsequent allocations of other net profits, net losses and items thereof <br />pursum, it to the foregoing Partnership Agreement (including the exhibits attached thereto), so that <br />the net amount of any items so specially allocated pursuant to this Section 10 and the other net <br />profits net losses and all other items allocated to the Partner pursuant to the Partnership <br />Agreer ient, to the extent possible, be equal to the net amount that would have been allocated to <br />the Par ner had such unexpected adjustments, allocations or distributions not occurred. <br />Section 11. Except as provided in Section 7 above, in the event a Partner has an Adjusted <br />Deficit Capital Account Balance at the end of any Partnership fiscal year which is in excess of <br />the sun i of (i) the amount the Partner is obligated to restore pursuant to any provision of this <br />Agreen ient, and (ii) the amount the Partner is deemed to be obligated to restore pursuant to the <br />penultimate sentences of Sections 1.704- 2(g)(1) and 1.704- 2(i)(5) of the Regulations, such <br />18 <br />