Common use of Contractor Fee Clause in Contracts

Contractor Fee. As consideration for supervision and contracting services provided to the Partnership, the Partnership shall pay the General Partner a contractor fee in an amount equal to the lesser of (A) $30,000 or (B) eight (8%) percent of the cost of the additional construction work required to be performed with respect to the Apartment Complex ("Contractor Fee"), which shall be paid by the Partnership pursuant to a note ("Contractor Note") in substantially the form annexed to the Contribution Agreement as Exhibit T to be executed on the date hereof. If any or all of the Contractor Note remains unpaid at the end of the Compliance Period, the General Partner shall be obligated to contribute such unpaid amount to the Partnership for payment thereof. If, in any fiscal year of the Partnership, the Partnership's payments ("Contractor Note Payments") in reduction of the Contractor Note (including principal and unpaid interest thereon) are less than the depreciable portion of such fee for such year then the full amount of such depreciable portion shall be taken into income for Federal income tax purposes by the General Partner in such year; in all other cases the actual amount of the Contractor Note Payments made during such year shall be taken into income for Federal income tax purposes by the General Partner upon receipt thereof. Upon request, the General Partner will submit to the Special Limited Partner such evidence as may be required for the Special Limited Partner to confirm that, for Federal income tax purposes, the Contractor Fee was taken into income as aforesaid.