Common use of Tax Distributions to Special Limited Partner Clause in Contracts

Tax Distributions to Special Limited Partner. Notwithstanding the other provisions of this Section 4, the General Partner may distribute cash to the Special Limited Partner at such times as the General Partner determines in its discretion to enable the beneficial owners of the Special Limited Partner to timely pay U.S. federal, state, and local taxes allocated to the Special Limited Partner in respect of its right to receive the Participation Allocation (a “Tax Distribution”). The amount of each Tax Distribution will be calculated as an amount equal to the excess, if any, of (i) the aggregate amount of Profits allocated to the Special Limited Partner as a result of its entitlement to receive the Participation Allocation for all prior Fiscal Periods multiplied by the Tax Rate, over (ii) the cumulative Participation Allocation previously made to the Special Limited Partner and distributions pursuant to this Section 4.3 for such Fiscal Period and all previous Fiscal Periods in respect of such Limited Partner. The “Tax Rate” for this purpose shall be the highest effective income tax rate applicable to individuals residing in Atlanta, Georgia, taking into account the character (such as capital gains and ordinary income) of the taxable income so allocated and any deduction to which the Special Limited Partner or its owners are entitled pursuant to Section 199A of the Code. The amount of any such Tax Distribution shall be determined by the General Partner. Tax Distributions made to the Special Limited Partner shall be credited against subsequent Participation Allocation otherwise to be received by the Special Limited Partner under this Section 4.