Common use of Payments to the Managing General Partner Clause in Contracts

Payments to the Managing General Partner. The Capital Account of the Managing General Partner shall be reduced by payments to it pursuant to §4.04(a)(2) only to the extent of the Managing General Partner’s distributive share of any Partnership deduction, loss, or other downward Capital Account adjustment resulting from the payments. Also, in the event, and to the extent, that the Managing General Partner is treated under the Code as having been transferred an interest in the Partnership in connection with the performance of services for the Partnership (whether before or after the formation of the Partnership): (i) any resulting compensation income shall be allocated 100% to the Managing General Partner; (ii) any associated increase in Capital Accounts shall be credited 100% to the Managing General Partner; and (iii) any associated deduction to which the Partnership is entitled shall be allocated 100% to the Managing General Partner.

Payments to the Managing General Partner. The Capital Account of the Managing General Partner shall be reduced by payments to it pursuant to §4.04(a)(2ss.4.04(a)(2) only to the extent of the Managing General Partner’s 's distributive share of any Partnership deduction, loss, or other downward Capital Account adjustment resulting from the payments. Also, in the event, and to the extent, that the Managing General Partner is treated under the Code as having been transferred an interest in the Partnership in connection with the performance of services for the Partnership (whether before or after the formation of the Partnership): (i) any resulting compensation income shall be allocated 100% to the Managing General Partner; (ii) any associated increase in Capital Accounts shall be credited 100% to the Managing General Partner; and (iii) any associated deduction to which the Partnership is entitled shall be allocated 100% to the Managing General Partner.