Common use of Subordinated Performance Fee Clause in Contracts

Subordinated Performance Fee. The Company may pay an Annual Subordinated Performance Fee to the Advisor calculated on the basis of the total return to Stockholders, payable monthly in arrears in any year in which the Company’s total return on Stockholders’ capital contributions exceeds six percent (6%) per annum. In such year, the Advisor will be paid fifteen percent (15%) of the excess total return, not to exceed ten percent (10%) of the aggregate total return for such year. This fee will only be payable upon the sale of assets or other event which results in the Company’s total return on Stockholders’ Capital contributions exceeding six percent (6%) per annum.