Common use of Distribution of Operating Profit Clause in Contracts

Distribution of Operating Profit. In each Fiscal Year, Operating Profit shall be distributed to Owner and Management Company in accordance with the following priorities: A. Owner shall first receive an amount equal to the lesser of: (i) Owner's Priority; or (ii) Operating Profit. B. Management Company shall next receive the Base Management Fee; provided, however, that if, in any Fiscal Year the Base Management Fee exceeds Net Operating Profit, such Base Management Fee shall be deferred to the extent of such excess and such deferred sums shall become "Deferred Contingent Base Fees". C. Management Company shall next receive an amount equal to the Deferred Contingent Base Fees to the extent that Net Operating Profit is otherwise sufficient for such purposes. D. Management Company shall next receive an amount equal to the Incentive Management Fee. E. Owner shall receive all Operating Profit remaining after the distributions made pursuant to the preceding subparagraphs of this Section 5.2.

Distribution of Operating Profit. In each Fiscal Year, Operating Profit shall be distributed to Owner and Management Company in accordance with the following priorities: A. Owner shall first receive an amount equal to the lesser of: (i) Owner's Priority; or (ii) Operating Profit.. September 13, 1993 64 B. Management Company shall next receive the Base Management Fee; provided, however, that if, in any Fiscal Year the Base Management Fee exceeds Net Operating Profit, such Base Management Fee shall be deferred to the extent of such excess and such deferred sums shall become "Deferred Contingent Base Fees". C. Management Company shall next receive an amount equal to the Deferred Contingent Base Fees to the extent that Net Operating Profit is otherwise sufficient for such purposes. D. Management Company shall next receive an amount equal to the Incentive Management Fee. E. Owner shall receive all Operating Profit remaining after the distributions made pursuant to the preceding subparagraphs of this Section 5.25.