EFTA00310572Set 9
2002-03-0146p22,726w
Capital Accounts 21
Sec. 4.04 Allocation of PCA Net Capital Appreciation or Depreciation;
Incentive Allocation 22
Sec. 4.05 Amendment of Incentive Allocation 27
Sec. 4.06 Side-Pocket Accounts; Side-Pocket ... each fiscal year, the excess, if any, of (i) the aggregate
Incentive Allocations made with respect to such Primary Capital Account since the first
day of the Lock-Up Period ... which such fiscal year is included (adjusted for any
Clawbacks) over (ii) the total Incentive Allocations to which the General Partner would
be entitled with respect to the aggregate
https://www.justice.gov/epstein/files/DataSet%209/EFTA00310572.pdf
EFTA01108276Set 9
2003-07-0153p25,836w
deemed to be separate for
purposes of calculating such Limited Partner's Incentive
Allocation (as defined below).
For example, in the event that an existing Limited Partner
makes an additional ... Limited Partner's two capital accounts will be combined
for purposes of determining the Incentive Allocation from
that Limited Partner. Thus, losses from one of the capital
accounts ... Treatment Claimed under FOIA DBZSECPR-0002913044
by Fried Frank Harris Shriver & Jacobson LLP
EFTA01108284
INCENTIVE ALLOCATION: Generally, at the end of each fiscal year of the Partnership,
the General Partner
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year shall be
reallocated to the Capital Account of the General Partner (the "Full Incentive Allocation"
and together with the Reduced Incentive Allocation, as defined below, the "Incentive
Allocation ... Partner, in its sole discretion, may elect to reduce, waive or
calculate differently the Incentive Allocation with respect to certain Limited Partners.
(ii) A Limited Partner's Capital Account shall ... subject to a
reduced Incentive Allocation (the "Reduced Incentive Allocation") in respect of Net
Increase allocated thereto for any fiscal year at the beginning of which an unrecovered
balance exists
https://www.justice.gov/epstein/files/DataSet%2010/EFTA01384611.pdf
EFTA00295614Set 9
2012-12-3152p16,979w
Allocation ofnet income:
General Partner incentive allocation (4,152) 4,152
Net increase in partners' capital resulting from
operations 1,242,981 75,564 1,318,545
PARTNERS' CAPITAL — December ... each limited partner's capital account, as applicable.
The General Partner earns an incentive allocation of net profits, as defined in the Amended and Restated
Limited Partnership Agreement, equal ... capital contributions made on or after April 1, 2009, the General Partner earns an
incentive allocation equal to 20% of net profits. Each limited partner's capital account is subject
https://www.justice.gov/epstein/files/DataSet%209/EFTA00295614.pdf
EFTA00310618Set 9
1999-01-0458p26,346w
withdraw at the end of
each fiscal year an amount equal to any Incentive
Allocations made to its capital account and profits thereon
(as described below). Notwithstanding the foregoing ... increased or decreased, is referred to
as "Net Increase" or "Net Decrease," respectively.
INCENTIVE
ALLOCATION Overview. At the end of each fiscal year of the Partnership ... will be reallocated to
the Capital Account of the General Partner (such amount,
the "Incentive Allocation").
High water Mark. The Partnership will maintain a
memorandum loss recovery account for each
https://www.justice.gov/epstein/files/DataSet%209/EFTA00310618.pdf
EFTA01118864Set 9
46p21,591w
Loss Recovery Account multiplied by (y) a
fraction, the numerator of which is the Incentive Allocation rate for the I ass Class, and the
denominator of which is the Incentive ... date which does not
correspond with the fiscal year-end of the Partnership, the Incentive Allocation rate for such
interests for the fiscal year in which the conversion was made ... shall be the time-weighted average
of the Incentive Allocation rate applicable to the Class of Interests converted and the Incentive
Allocation rate applied to the new Class of Interests
https://www.justice.gov/epstein/files/DataSet%209/EFTA01118864.pdf
EFTA00672561Set 9
2011-12-163p1,189w
state
EFTA00672561
tax partnership or limited liability company (the "General Partner"), receives an incentive
allocation from the hedge fund, consisting of capital gain income or other investment or
trading income ... Incentive Allocation"). The splitting of the management of hedge
funds between two separate legal entities was undertaken in part because UBT has
historically been imposed on management fees earned ... York City, but usually not on
Incentive Allocations. Such tax treatment of the Incentive Allocation was approved in a
statutory amendment to the UBT law more than 15 years
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values, it may be greater than if such compensation
were based solely on cost.
Incentive Allocation
The General Partner will receive the performance-based Incentive Allocation in connection
with ... management of the Partnership. The Incentive Allocation is not the product of an arm's-
length negotiation with any third party, and, because the Incentive Allocation is calculated ... greater
than if such compensation were based solely on realized gains.
The Incentive Allocation may give rise to potential conflicts of interest, including, but not
limited to, the following:
Allocation
https://www.justice.gov/epstein/files/DataSet%2010/EFTA01384683.pdf
EFTA00236813Set 9
2014-06-3040p17,269w
oasts of the Millennium Master Fund and (ii) a 20% incentive allocation :18% for Millennium
Strategic Capital; payable to Millennium Management LLC. Since the Millennium Master Fund ... Fund level.
Post-1997 figures for the Millennium feeder funds are net of the incentive allocation to Millennium Management, costs of Millennium feeder funds, and their pro rata share ... applicable to dividend income and certain other interest income from V.S. sources. The incentive allocation is generally allocated at the end of
the year. However, to calculate net monthly returns
https://www.justice.gov/epstein/files/DataSet%209/EFTA00236813.pdf
Capital Account for such fiscal year (or
such other date as of which the Incentive Allocation is
calculated) over the Management Fee debited to such
Limited Partner's Capital Account ... such year will be
reallocated to the General Partner (the "Full Incentive
Allocation," and together with the Reduced Incentive
Allocation, as defined below, the "Incentive Allocation").
The General Partner ... sole discretion, may reduce, waive
or calculate differently the Incentive Allocation with respect
to certain Limited Partners (and has done so on occasion),
including, without limitation, Limited Partners that
https://www.justice.gov/epstein/files/DataSet%2010/EFTA01384627.pdf
EFTA01118475Set 9
2007-09-2513p6,538w
special limited partner of
HSEMF and receives a portion of the incentive allocation from the HSEMF. HCM, as
the Administrative Manager to the HSE Funds, provides certain administrative support
services ... expenses are included in Other expenses in the accompanying consolidated statement of
operations and incentive allocation. The Master Fund also bears the cost of professional fees and
administrative expenses, which ... limited
partner capital accounts are reflected in the accompanying consolidated statement of operations and
incentive allocation as minority interest expense.
HCM/Z Account
In January 2004, the Trading Manager engaged
https://www.justice.gov/epstein/files/DataSet%209/EFTA01118475.pdf
EFTA00803405Set 9
2017-03-3043p16,141w
differ from the rights attributable to other investors in terms of, among other things,
incentive allocation, management fee, withdrawal rights (including different withdrawal dates and
notice periods), minimum and additional ... addition, Honeycomb or its affiliates will
be entitled to performance-based compensation (i.e., Incentive Allocation) at the end of each fiscal
year in an amount ... such fiscal year).
Any unrealized net capital appreciation upon which the calculation of the Incentive Allocation is
based will be reduced to the extent of any unrecovered balance remaining
https://www.justice.gov/epstein/files/DataSet%209/EFTA00803405.pdf