Exhibit 20-2 gives the percentages

Exhibit 20-2 gives the percentages of standard line items that are needed to yield the required additional management fee of $322,000.If the incentive fee is calculated as a percentage of Income Before Fixed Charges, it would have to be 6.2 percent of the line item in order to yield the required $312,000. If the calculation is made using Income After Debt Service, the necessary percentage would be 17.8 percent.From an owner's viewpoint, the incentive fee should be calculated as far down the income statement as possible. For example, any payment from the Income After Debt Service line erodes only the return on equity rather than funds available for operating expenses, fixed charges, and debt service. A similar result can be achieved by calculating the incentive portion of the management fee using an item before debt service, but paying it only if there are sufficient funds to cover debt service, which is known as subordinating the incentive fee to debt service.