Deficit Restoration Obligation. In the event a Protected Partner has elected to enter into a DRO, the Partnership will maintain an amount of indebtedness of the Partnership that would be considered “recourse” indebtedness of the Partnership at least equal to the sum of the “DRO Amounts” (as defined in the Partnership Agreement) of all Protected Partners (plus, the DRO Amounts, if any, of other partners in the Partnership). The DRO entered into by the Protected Partner pursuant to this Agreement shall be presumed for purposes of this Agreement, to cause the Protected Partner to be allocated an amount of liabilities equal to the DRO Amount of such Protected Partner for purposes of Sections 465 and 752 of the Code.
Appears in 5 contracts
Samples: Tax Protection Agreement (Empire State Realty Trust, Inc.), Tax Protection Agreement (Empire State Realty OP, L.P.), Tax Protection Agreement (Empire State Realty OP, L.P.)
Deficit Restoration Obligation. In the event a Protected Partner has elected to enter into a DRO, the Partnership will maintain an amount of indebtedness of the Partnership that would be considered “recourse” indebtedness of the Partnership at least equal to or greater than the sum of the “DRO Amounts” (as defined in the Partnership Agreement) of all Protected Partners (plus, the DRO Amounts, if any, of other partners in the Partnership). The DRO entered into by the Protected Partner pursuant to this Agreement deficit restoration obligation shall be presumed for purposes of this Agreement, to cause the Protected Partner to be allocated an amount of liabilities equal to the DRO Amount of such Protected Partner for purposes of Sections 465 and 752 of the Code.
Appears in 3 contracts
Samples: Tax Protection Agreement, Form of Tax Protection Agreement (DLC Realty Trust, Inc.), Form of Tax Protection Agreement (DLC Realty Trust, Inc.)
