Common use of Section 704(c) Method Clause in Contracts

Section 704(c) Method. The Operating Partnership shall use the “traditional method” described in Treas. Reg. § 1.704-3(b) with respect to the assets of SCP III, with no “curative allocation” of income or gain to offset any “shortfall” in depreciation that results by reason of the use of the “traditional method,” following any “Book-Up Event” (i.e., a subsequent issuance of OP Units (as defined in the Operating Partnership Agreement), an in-kind contribution of property to the Operating Partnership in exchange for OP Units, or a redemption of OP Units).

Section 704(c) Method. The Operating Partnership shall use the “traditional method” described in Treas. Reg. § 1.704-3(b) with respect to the assets of SCP IIISCP, with no “curative allocation” of income or gain to offset any “shortfall” in depreciation that results by reason of the use of the “traditional method,” following any “Book-Up Event” (i.e., a subsequent issuance of OP Units (as defined in the Operating Partnership Agreement), an in-kind contribution of property to the Operating Partnership in exchange for OP Units, or a redemption of OP Units).