Common use of Priority Allocation Clause in Contracts

Priority Allocation. If the amount of cash distributed (except cash distributed pursuant to Section 15.3) with respect to a class or series of LP Units is disproportionately greater (on a per LP Unit basis) than the amount of cash distributed with respect to the Common Units (on a per LP Unit basis), then before the allocation of Net Income or Net Loss, as the case may be, between the Limited Partners and the General Partner pursuant to the other provisions of this Section 5.1, (a) first, each Limited Partner holding LP Units with respect to which such disproportionately greater cash distribution was made shall be allocated gross income in an amount equal to the product of (X) the amount by which the distribution with respect to such class or series of LP Units exceeds (on a per LP Unit basis) the distribution on the Common Units and (Y) the number of LP Units of such class or series held by such Limited Partner receiving the disproportionately greater distribution, (b) the General Partner shall be allocated gross income in an amount equal to 1.01% of the gross income allocated pursuant to the immediately preceding clause (a) and (c) the Net Income or Net Loss otherwise allocable to the Partners under the other provisions of this Agreement shall be recomputed by excluding the gross income allocated pursuant to the immediately preceding clauses (a) and (b);