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1213ManagementIncentiveEquityPotentialadverseandothertaxeectsresultingromtheuseoablockerstructurecanbeaddressedthroughvariousmea-suressuchascapitalizingtheblockerpartiallywithdebtrequiringexitsbysaleotheblockersstockandcreativeuseoamortizationinsidetheblocker.Principalinstrumentsusedormanagementincentiveequitypoolsincludeoptionsrestrictedstocksometimesacquiredwiththeproceedsoloansromthecompanyproftsinterestsandvariousormsophantomequitysometimesincombination.Timevestedequityinmanagementincentivepoolstypicallyvestsoverthreetofveyearswithmatterssuchastheinter-valsorvestingannualquarterlyormonthlysometimeswithinitialcliperiodstreatmentonsalenoaccelerationpartialaccelerationsocalleddoubletriggeraccelerationullaccelerationtreatmentovestedandunvestedawardsonterminationoemploymentlossounvestedsharespartialaccelerationorullaccelerationonafringwithoutcauseoraresignationorgoodreasonandcallprovisionsallsubjectsoleverageinnegotiationsandthecustomarypracticesotherelevantsponsor.Treatmentoincentiveequitythatissubjecttoperormancevestingonterminationotherelationshipcanalsobeasubjectonegotiationalthoughattainmentotherelevantperormancehurdlesisarequirementthatisalwaysapplicable.Manyperormancevestingarrangementsarestructuredsuchthatmanagementenjoyssuccessivelyhigherequitystakesasthesponsorsreturnrisese.g.10generallyata2xreturn15ata3xreturnetc.Thedetailsowaterallprovisionsinperormancevestingarrangementsareimportante.g.asponsorwillnotwanttoshareequitybasedon2xreturnisomeothatreturnisheldinescroworsubjecttoacontingencyorisintheormoilliquidsecuritiesthatcoulddeclineinvalue.Thedetailsowaterallprovisionsthatrelatetoincentiveequityarealsoimportantrommanagementsperspective.Forexamplemanagementtypicallyseekstoassurethatincentiveequitypaysoutwheneverthesponsorsbenchmarkreturniscrystalizedevenithisoccurssubsequenttoaliquidityeventandseekstoassurethattheullvalueotheirshareswillbepaidromincrementalproceedsoncethesponsorsbenchmarkreturnisrealizedbeoresharingincrementalvalueabovethebenchmark.Possiblechangestotaxlawsrelatingtoproftsinterestsinconnectionwiththelargernationaldebateoverbudgetandtaxpolicycouldundamentallyaectthestructuresomanagementincentiveequityarrangements.obseRvatIonscontInuedGoodwinProcterRolloverSurvey