Common use of Incentive Allocation Clause in Contracts

Incentive Allocation. (i) Subject to Sections 5.03(b) and 5.03(c)(iv), at the end of each Fiscal Year, the Partnership shall reallocate from each Capital Account of each Limited Partner to the Capital Account of the General Partner an amount (the "Incentive Allocation") equal to the result of the Incentive Allocation Rate multiplied by the amount of the Net Capital Appreciation allocated to such Capital Account of such Limited Partner for such Fiscal Year after reduction by an amount equal to the amount of the Management Fee debited to such Capital Account pursuant to Section 4.08 for such Fiscal Year; provided, however, that the Net Capital Appreciation upon which the calculation of the Incentive Allocation is based shall be reduced to the extent of any balance in such Capital Account's Loss Recovery Account. The amount of the balance in the Loss Recovery Account at the time of calculating the Incentive Allocation shall be the amount existing immediately prior to its reduction pursuant to the second clause of the second sentence of Section 5.03(c)(ii). In the sole discretion of the General Partner, the Incentive Allocation may be waived, reduced or calculated differently with respect to any Limited Partner. The Incentive Allocation, if any, will be calculated at (A) the end of each Fiscal Year,