Acquisition Fee; Financing Fee Sample Clauses
The Acquisition Fee and Financing Fee clause defines the charges payable to a party, typically a manager or sponsor, for their role in acquiring an asset and arranging its financing. In practice, the acquisition fee is usually a percentage of the purchase price of the asset, while the financing fee is calculated based on the amount of debt or financing secured for the transaction. This clause ensures that compensation for these specific services is clearly outlined, preventing disputes over payment and clarifying the costs associated with the acquisition and financing processes.
Acquisition Fee; Financing Fee. Upon the acquisition of any Approved Qualified Property by the Partnership or by an SP Subsidiary (including any Approved Qualified Property contributed in whole or in part by LXP to the Partnership), pursuant to this Section 3.6, each Fund Partner shall pay the Managing General Partner or the Asset Manager an acquisition fee (the "ACQUISITION FEE") equal to the amount of such Fund Partner's Percentage Interest multiplied by the following sum:
(1) the amount up to $10 million of the purchase price of such acquired Approved Qualified Property multiplied by (2) 0.90% plus
(1) the amount from $10 million to $20 million of the purchase price of such acquired Approved Qualified Property multiplied by (2) 0.75% plus
Acquisition Fee; Financing Fee. Upon the acquisition of any Approved Qualified Property by the Partnership or by an SP Subsidiary pursuant to this Section 3.6 (excluding, however, any Approved Qualified Property contributed in whole or in part by Federal or its Affiliate at any time while Federal or any Approved Federal Party is the Managing General Partner hereunder), the Partnership shall pay to the Managing General Partner an acquisition fee (the “Acquisition Fee”) equal to the sum of the following:
(i) (x) the amount up to $20 million of the gross purchase price of such acquired Approved Qualified Property multiplied by (y) 0.80% plus
(ii) (x) the amount from $20 million up to $30 million of the gross purchase price of such acquired Approved Qualified Property multiplied by (2) 0.65% plus
(iii) the amount over $30 million of the gross purchase price of such acquired Approved Qualified Property multiplied by (2) 0.50%. For example, if the purchase price of such acquired Approved Qualified Property were $25 million, the Acquisition Fee payable by the Partnership to the Managing General Partner would equal $192,500 (i.e., [.80% x $20,000,000 = $160,000] + [.65% x $5,000,000 = $32,500]), and if the purchase price of such Approved Qualified Property were $40,000,000, the Acquisition Fee payable by the Partnership to the Managing General Partner would equal $275,000 (i.e., [.80% x $20,000,000 = $160,000] + [.65% x 10,000,000 = $65,000] + [.50% x $10,000,000 = $50,000]). Upon the financing or refinancing of any Approved Qualified Property, the Partnership or SP Subsidiary shall pay to the Managing General Partner a fee (the “Financing Fee”) equal to the product of (A) .25% multiplied by (B) the aggregate principal balance advanced by the lender of such financing. For example, if the principal advanced in connection with a financing for such Approved Qualified Property were $25 million, the Financing Fee payable by the Partnership to the Managing General Partner would equal $62,500 (i.e., .25% x $25,000,000). It is understood and agreed by the Partners that the Financing Fee is payable in addition to any commitment or other financing fees charged by Third Parties in connection with the financing or refinancing of an Approved Qualified Property.