Common use of The Management Fee Clause in Contracts

The Management Fee. As full compensation for the services rendered to the Partnership hereunder and the expenses borne by the Company hereunder, during the period ending four (4) years after the Initial Closing Date (the "Initial Payment Period"), the Partnership shall pay the Company a management fee equal to 2% per annum of the aggregate Capital Commitments of all Partners. The management fee shall be paid semi-annually in advance commencing on the Initial Closing Date of the Partnership and continuing on the first days of each February and August thereafter until termination of this Contract. Subsequent to the end of the Initial Payment Period, the management fee will be equal to 1% per annum of the aggregate Capital Commitments of all Partners. In addition the management fee will be reduced by one-half during any period in which the Partnership is in a Continuity Mode as provided in Section 6.4 of the Agreement and to the extent that the Partnership is placed in a Continuity Mode during any period with respect to which the management fee has already been paid, such reduction shall be reflected as a credit against the management fee to be paid in the following semi-annual period.