Common use of Asset Management Fee Clause in Contracts

Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company hereunder an amount equal to one percent per annum of the Average Invested Assets of the Company (the "Asset Management Fee") calculated as set forth below. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or Loans, on the basis of one-twelfth of one percent of the Average Invested Assets for the preceding month, computed as a daily average. One-half of the Asset Management Fee calculated with respect to each month shall be payable monthly on the last day of such month, or the first business day following the last day of such month. One-half of the Asset Management Fee calculated with respect to each month shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarter. Payment of this fee for any quarter shall be payable only if the Shareholders have received a Preferred Return. Any portion of the Asset Management Fee not paid due to the Company's failure to pay the Preferred Return shall be paid by the Company, to the extent it is not restricted by the 2%/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid the Preferred Return. If at the end of any fiscal quarter, the Company's Operating Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months, payment of the Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such payment. For purposes of calculating the value per share of restricted stock given for payment of the Asset Management Fee, the price per share shall be: (i) the net asset value per share as determined by the most recent appraisal performed by an independent third party or, if an appraisal has not yet been performed, (ii) $10 per share. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.

Asset Management Fee. The Company shall pay to the Advisor Manager as compensation for the advisory services rendered to the Company hereunder an amount equal to one percent per annum of the Average Adjusted Invested Assets of the Company (the "Asset Management Fee") calculated as set forth below. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or Loansand the Manager execute this Agreement, on the basis of one-twelfth of one percent of the Average Adjusted Invested Assets for the preceding that month, computed as a daily average. The Asset Management Fee shall be prorated for the number of days during the month that the Company owns an Investment Asset. One-half of the Asset Management Fee calculated with respect to each month shall an Investment Asset will be payable monthly paid on the last day of such month, or the first business day following of each month beginning on the last first business day of such monthafter the month in which the Investment Asset was acquired or originated. OneThe remaining one-half of the Asset Management Fee calculated with respect shall be subordinated to each month the extent described below and shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarterquarterly. Payment of this fee The subordinated Asset Management Fee for any quarter shall be payable only if the Shareholders have received a Preferred ReturnReturn has been met through the end of the applicable quarter. Any portion of the subordinated Asset Management Fee not paid due to the Company's failure to pay meet the Preferred Return shall be paid by the Company, to the extent it is not restricted by the 2%/25Two Percent/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid met the Preferred Return. If at the end of any fiscal quarter, the Company's Operating Expenses exceed the 2%/25Two Percent/25% Guidelines over the immediately preceding 12 months, payment of the subordinated Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such payment. For purposes of calculating the value per share of restricted stock given for payment of the Asset Management Fee, the price per share shall be: (i) the net asset value per share as determined by the most recent appraisal performed by an independent third party or, if an appraisal has not yet been performed, (ii) $10 per shareconsistent with Section 13. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.

Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company hereunder an amount equal to one percent per annum of the Average Adjusted Invested Assets of the Company (the "“Asset Management Fee"”) calculated as set forth below. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or LoansInvestment Assets, on the basis of one-twelfth of one percent of the Average Adjusted Invested Assets for the preceding that month, computed as a daily average. The Asset Management Fee shall be prorated for the number of days during the month that the Company owns an Investment Asset. One-half of the Asset Management Fee calculated with respect to each month shall a Property or Loan will be payable monthly paid on the last day of such month, or the first business day following of each month, beginning on the last first business day of such monthafter the month in which the Investment Asset was acquired or originated. OneThe remaining one-half of the Asset Management Fee calculated with respect shall be subordinated to each month the extent described below and shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarterquarterly. Payment of this fee The subordinated Asset Management Fee for any quarter shall be payable only if the Shareholders have received a Preferred ReturnReturn has been met through the end of the applicable quarter. Any portion of the subordinated Asset Management Fee not paid due to the Company's ’s failure to pay meet the Preferred Return shall be paid by the Company, to the extent it is not restricted by the 2%/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid met the Preferred Return. If at the end of any fiscal quarter, the Company's ’s Operating Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months, payment of the subordinated Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such paymentconsistent with Section 13. For purposes of calculating the value per share of restricted stock given for payment of the Asset Management Fee, the price per share shall be: (i) the net asset value per share as determined by the most recent appraisal performed by an independent third party at the time such Asset Management Fee was earned or, if an appraisal has not yet been performedmade and accepted by the Company, (ii) $10 per share. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.

Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company hereunder an amount equal to one percent per annum of the Average Adjusted Invested Assets of the Company (the "Asset Management FeeASSET MANAGEMENT FEE") calculated as set forth below. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or LoansInvestment Assets, on the basis of one-twelfth of one percent of the Average Adjusted Invested Assets for the preceding that month, computed as a daily average. One-half of the Asset Management Fee calculated with respect to each month shall be payable monthly on the last day of such month, or the first business day following the last day of such month. One-half of the such Asset Management Fee calculated with respect shall be subordinated to each month the extent described below and shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarterquarterly. Payment of this fee The subordinated Asset Management Fee for any quarter shall be payable only if the Shareholders have received a Preferred ReturnReturn has been met through the end of the applicable quarter. Any portion of the subordinated Asset Management Fee not paid due to the Company's failure to pay meet the Preferred Return shall be paid by the Company, to the extent it is not restricted by the 2%/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid met the Preferred Return. If at the end of any fiscal quarter, the Company's Operating Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months, payment of the subordinated Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such paymentconsistent with Section 13. For purposes of calculating the value per share of restricted stock given for payment of the Asset Management Fee, the price per share shall be: (i) the net asset value per share as determined by the most recent appraisal performed by an independent third party at the time such Asset Management Fee was earned or, if an appraisal has not yet been performedmade and accepted by the Company, (ii) $10 per share. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.

Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company hereunder an amount equal to one percent per annum of the Average Invested Assets of the Company (the "Asset Management Fee") calculated as set forth below. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or Loans, on the basis of one-twelfth of one half percent of the Average Invested Assets for the preceding month, computed as a daily average. One-half of the Asset Management Fee calculated with respect to each month shall be payable monthly on the last day of such month, or the first business day following the last day of such month. One-half of the Asset Management Fee calculated with respect to each month shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarter. Payment of this fee for any quarter shall be payable only if the Shareholders have received a Preferred Return. Any portion of the Asset Management Performance Fee not paid due to the Company's failure to pay the Preferred Return shall be paid by the Company, to the extent it is not restricted by the 2%/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid the Preferred Return. If at the end of any fiscal quarter, the Company's Operating Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months, payment of the Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such payment. For purposes of calculating the value per share of restricted stock given for payment of the Asset Management Fee, the price per share shall be: (i) the net asset value per share as determined by the most recent appraisal performed by an independent third party or, if an appraisal has not yet been performed, (ii) $10 per share. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.

Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company hereunder an amount equal to one percent per annum of the Average Adjusted Invested Assets of the Company (the "Asset Management Fee") calculated as set forth below. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or LoansInvestment Assets, on the basis of one-twelfth of one percent of the Average Adjusted Invested Assets for the preceding that month, computed as a daily average. The Asset Management Fee shall be prorated for the number of days during the month that the Company owns an Investment Asset. One-half of the Asset Management Fee calculated with respect to each month shall a Property or Loan will be payable monthly paid on the last day of such month, or the first business day following of each month, beginning on the last first business day of such monthafter the month in which the Investment Asset was acquired or originated. OneThe remaining one-half of the Asset Management Fee calculated with respect shall be subordinated to each month the extent described below and shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarterquarterly. Payment of this fee The subordinated Asset Management Fee for any quarter shall be payable only if the Shareholders have received a Preferred ReturnReturn has been met through the end of the applicable quarter. Any portion of the subordinated Asset Management Fee not paid due to the Company's failure to pay meet the Preferred Return shall be paid by the Company, to the extent it is not restricted by the 2%/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid met the Preferred Return. If at the end of any fiscal quarter, the Company's Operating Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months, payment of the subordinated Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such paymentconsistent with Section 13. For purposes of calculating the value per share of restricted stock given for payment of the Asset Management Fee, the price per share shall be: (i) the net asset value per share as determined by the most recent appraisal performed by an independent third party at the time such Asset Management Fee was earned or, if an appraisal has not yet been performedmade and accepted by the Company, (ii) $10 per share. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.

Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company hereunder an amount equal to one half percent per annum of the Average Invested Assets of the Company (the "Asset Management Fee") calculated as set forth below. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or Loans, on the basis of one-twelfth of one half percent of the Average Invested Assets for the preceding month, computed as a daily average. One-half of the The Asset Management Fee calculated with respect to each month shall be payable monthly on the last day of such month, or the first business day following the last day of such month. One-half of the Asset Management Fee calculated with respect to each month shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarter. Payment of this fee for any quarter shall be payable only if the Shareholders have received a Preferred Return. Any portion of the Asset Management Fee not paid due to the Company's failure to pay the Preferred Return shall be paid by the Company, to the extent it is not restricted by the 2%/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid the Preferred Return. If at the end of any fiscal quarter, the Company's Operating Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months, payment of the Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such payment. For purposes of calculating the value per share of restricted stock given for payment of the Asset Management Fee, the price per share shall be: (i) the net asset value per share as determined by the most recent appraisal performed by an independent third party or, if an appraisal has not yet been performed, (ii) $10 per share. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.

Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company hereunder an amount equal to one percent per annum of the Average Adjusted Invested Assets of the Company (the "Asset Management Fee") calculated as set forth below. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or LoansInvestment Assets, on the basis of one-twelfth of one percent of the Average Adjusted Invested Assets for the preceding that month, computed as a daily average. One-half of the Asset Management Fee calculated with respect to each month shall be payable monthly on the last day of such month, or the first business day following the last day of such month. One-half of the such Asset Management Fee calculated with respect shall be subordinated to each month the extent described below and shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarterquarterly. Payment of this fee The subordinated Asset Management Fee for any quarter shall be payable only if the Shareholders have received a Preferred ReturnReturn has been met through the end of the applicable quarter. Any portion of the subordinated Asset Management Fee not paid due to the Company's failure to pay meet the Preferred Return shall be paid by the Company, to the extent it is not restricted by the 2%/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid met the Preferred Return. If at the end of any fiscal quarter, the Company's Operating Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months, payment of the subordinated Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such paymentconsistent with Section 13. For purposes of calculating the value per share of restricted stock given for payment of the Asset Management Fee, the price per share shall be: (i) the net asset value per share as determined by the most recent appraisal performed by an independent third party at the time such Asset Management Fee was earned or, if an appraisal has not yet been performedmade and accepted by the Company, (ii) $10 per share. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.

Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company hereunder an amount equal to one percent per annum of the Average Adjusted Invested Assets of the Company (the "Asset Management Fee") calculated as set forth below. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or LoansInvestment Assets, on the basis of one-twelfth of one percent of the Average Adjusted Invested Assets for the preceding that month, computed as a daily average. The Asset Management Fee shall be prorated for the number of days during the month that the Company owns an Investment Asset. One-half of the Asset Management Fee calculated with respect to each month shall an Investment Asset will be payable monthly paid on the last day of such month, or the first business day following of each month, beginning on the last first business day of such monthafter the month in which the Investment Asset was acquired or originated. OneThe remaining one-half of the Asset Management Fee calculated with respect shall be subordinated to each month the extent described below and shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarterquarterly. Payment of this fee The subordinated Asset Management Fee for any quarter shall be payable only if the Shareholders have received a Preferred ReturnReturn has been met through the end of the applicable quarter. Any portion of the subordinated Asset Management Fee not paid due to the Company's failure to pay meet the Preferred Return shall be paid by the Company, to the extent it is not restricted by the 2%/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid met the Preferred Return. If at the end of any fiscal quarter, the Company's Operating Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months, payment of the subordinated Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such paymentconsistent with Section 13. For purposes of calculating the value per share of restricted stock given for payment of the Asset Management Fee, the price per share shall be: (i) the net asset value per share as determined by the most recent appraisal performed by an independent third party at the time such Asset Management Fee was earned or, if an appraisal has not yet been performedmade and accepted by the Company, (ii) $10 per share. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.

Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company hereunder an amount equal to one percent per annum of the Average Adjusted Invested Assets of the Company (the "Asset Management Fee") calculated as set forth below. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or LoansInvestment Assets, on the basis of one-twelfth of one percent of the Average Adjusted Invested Assets for the preceding that month, computed as a daily average. One-half of the Asset Management Fee calculated with respect to each month shall be payable monthly on the last day of such month, or the first business day following the last day of such month. One-half of the such Asset Management Fee calculated with respect shall be subordinated to each month the extent described below and shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarterquarterly. Payment of this fee The subordinated Asset Management Fee for any quarter shall be payable only if the Shareholders have received a Preferred ReturnCompany has generated cash flow from operations in the aggregate of no less than 7% of Gross Offering Proceeds for the period beginning with the Initial Closing Date and ending on the last day of the most recently completed fiscal quarter. Any portion of the subordinated Asset Management Fee not paid due to the Company's failure to pay meet the Preferred Return foregoing threshold shall be paid by the Company, to the extent it is not restricted by the 2%/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid met the Preferred Returnforegoing threshold. If at the end of any fiscal quarter, the Company's Operating Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months, payment of the subordinated Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such paymentconsistent with Section 13. For purposes of calculating the value per share of restricted stock given for payment of the Asset Management Fee, the price per share shall be: (i) the net asset value per share as determined by the most recent appraisal performed by an independent third party at the time such Asset Management Fee was earned or, if an appraisal has not yet been performedmade and accepted by the Company, (ii) $10 per share. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.

Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company hereunder an amount equal to one percent .5% per annum of the Average Invested Assets of the Company (the "Asset Management Fee") calculated as set forth below. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or Loans, on the basis of one-twelfth of one percent .5% of the Average Invested Assets for during the preceding previous month, computed as a daily average. One-half of the The Asset Management Fee calculated with respect to each month shall be payable monthly on the last day of such month, or the first business day following the last day of such month. One-half of the Asset Management Fee calculated with respect to each month shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarter. Payment of this fee for any quarter shall be payable only if the Shareholders have received a Preferred Return. Any portion of the Asset Management Fee not paid due to the Company's failure to pay the Preferred Return shall be paid by the Company, to the extent it is not restricted by the 2%/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid the Preferred Return. If at the end of any fiscal quarter, the Company's Operating Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months, payment of the Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such payment. For purposes of calculating determining the value per share of restricted stock given for payment amount of the Asset Management Fee, the price per share shall Average Invested Assets will be: , in any particular month, (i) for all months during the net asset period from inception of the Company through December 31, 1998, the average of the aggregate book value per share of the assets of the Company invested, directly or indirectly, in equity interests, in Properties and in Loans secured by real estate, before reserves for depreciation or bad debts or other similar non-cash reserves, all as determined by shown on the most recent appraisal performed by an independent third party or, if an appraisal has not yet been performed, books of the Company on each day of such month and (ii) $10 per sharefor all months beginning after December 31, 1998, the estimated value of all of the Properties determined in accordance with the most recently conducted Valuation, plus the principal balance of all Loans. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.

Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company hereunder an amount equal to one percent per annum of the Average Adjusted Invested Assets of the Company (the "Asset Management FeeASSET MANAGEMENT FEE") calculated as set forth below. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or LoansInvestment Assets, on the basis of one-twelfth of one percent of the Average Adjusted Invested Assets for the preceding that month, computed as a daily average. One-half of the Asset Management Fee calculated with respect to each month shall be payable monthly on the last day of such month, or the first business day following the last day of such month. One-half of the such Asset Management Fee calculated with respect shall be subordinated to each month the extent described below and shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarterquarterly. Payment of this fee The subordinated Asset Management Fee for any quarter shall be payable only if the Shareholders have received a Preferred ReturnCompany has generated cash flow from operations in the aggregate of no less than 7% of Gross Offering Proceeds for the period beginning with the Initial Closing Date and ending on the last day of the most recently completed fiscal quarter. Any portion of the subordinated Asset Management Fee not paid due to the Company's failure to pay meet the Preferred Return foregoing threshold shall be paid by the Company, to the extent it is not restricted by the 2%/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid met the Preferred Returnforegoing threshold. If at the end of any fiscal quarter, the Company's Operating Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months, payment of the subordinated Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such paymentconsistent with Section 13. For purposes of calculating the value per share of restricted stock given for payment of the Asset Management Fee, the price per share shall be: (i) the net asset value per share as determined by the most recent appraisal performed by an independent third party at the time such Asset Management Fee was earned or, if an appraisal has not yet been performedmade and accepted by the Company, (ii) $10 per share. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.

Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company hereunder an amount equal to one percent per annum of the Average Adjusted Invested Assets of the Company (the "“Asset Management Fee"”) calculated as set forth below. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or LoansInvestment Assets, on the basis of one-twelfth of one percent of the Average Adjusted Invested Assets for the preceding that month, computed as a daily average. The Asset Management Fee shall be prorated for the number of days during the month that the Company owns an Investment Asset. One-half of the Asset Management Fee calculated with respect to each month shall an Investment Asset will be payable monthly paid on the last day of such month, or the first business day following of each month, beginning on the last first business day of such monthafter the month in which the Investment Asset was acquired or originated. OneThe remaining one-half of the Asset Management Fee calculated with respect shall be subordinated to each month the extent described below and shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarterquarterly. Payment of this fee The subordinated Asset Management Fee for any quarter shall be payable only if the Shareholders have received a Preferred ReturnCompany has generated cash flow from operations in the aggregate of no less than 7% of Gross Offering Proceeds for the period beginning with the Initial Closing Date and ending on the last day of the most recently completed fiscal quarter. Any portion of the subordinated Asset Management Fee not paid due to the Company's ’s failure to pay meet the Preferred Return foregoing threshold shall be paid by the Company, to the extent it is not restricted by the 2%/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid met the Preferred Returnforegoing threshold. If at the end of any fiscal quarter, the Company's ’s Operating Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months, payment of the subordinated Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such paymentconsistent with Section 13. For purposes of calculating the value per share of restricted stock given for payment of the Asset Management Fee, the price per share shall be: (i) the net asset value per share as determined by the most recent appraisal performed by an independent third party at the time such Asset Management Fee was earned or, if an appraisal has not yet been performedmade and accepted by the Company, (ii) $10 per share. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.

Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company hereunder an amount equal to one percent .5% per annum of the Average Invested Assets of the Company (the "Asset Management Fee") calculated as set forth below. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or Loans, on the basis of one-twelfth of one percent .5% of the Average Invested Assets for during the preceding previous month, computed as a daily average. One-half of the The Asset Management Fee calculated with respect to each month shall be payable monthly on the last day of such month, or the first business day following the last day of such month. One-half of the Asset Management Fee calculated with respect to each month shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarter. Payment of this fee for any quarter shall be payable only if the Shareholders have received a Preferred Return. Any portion of the Asset Management Fee not paid due to the Company's failure to pay the Preferred Return shall be paid by the Company, to the extent it is not restricted by the 2%/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid the Preferred Return. If at the end of any fiscal quarter, the Company's Operating Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months, payment of the Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such payment. For purposes of calculating determining the value per share of restricted stock given for payment amount of the Asset Management Fee, the price per share shall Average Invested Assets will be: , in any particular month, (i) for all months during the net asset period from inception of the Company through December 31, 2002, the average of the aggregate book value per share of the assets of the Company invested, directly or indirectly, in equity interests, in Properties and in Loans secured by real estate, before reserves for depreciation or bad debts or other similar non-cash reserves, all as determined by shown on the most recent appraisal performed by an independent third party or, if an appraisal has not yet been performed, books of the Company on each day of such month and (ii) $10 per sharefor all months beginning after December 31, 2002, the estimated value of all of the Properties determined in accordance with the most recently conducted Valuation, plus the principal balance of all Loans. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.

Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company hereunder an amount equal to one percent per annum of the Average Adjusted Invested Assets of the Company (the "Asset Management Fee") calculated as set forth below. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or LoansInvestment Assets, on the basis of one-twelfth of one percent of the Average Adjusted Invested Assets for the preceding that month, computed as a daily average. The Asset Management Fee shall be prorated for the number of days during the month that the Company owns an Investment Asset. One-half of the Asset Management Fee calculated with respect to each month shall an Investment Asset will be payable monthly paid on the last day of such month, or the first business day following of each month, beginning on the last first business day of such monthafter the month in which the Investment Asset was acquired or originated. OneThe remaining one-half of the Asset Management Fee calculated with respect shall be subordinated to each month the extent described below and shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarterquarterly. Payment of this fee The subordinated Asset Management Fee for any quarter shall be payable only if the Shareholders have received a Preferred ReturnCompany has generated cash flow from operations in the aggregate of no less than 7% of Gross Offering Proceeds for the period beginning with the Initial Closing Date and ending on the last day of the most recently completed fiscal quarter. Any portion of the subordinated Asset Management Fee not paid due to the Company's failure to pay meet the Preferred Return foregoing threshold shall be paid by the Company, to the extent it is not restricted by the 2%/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid met the Preferred Returnforegoing threshold. If at the end of any fiscal quarter, the Company's Operating Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months, payment of the subordinated Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such paymentconsistent with Section 13. For purposes of calculating the value per share of restricted stock given for payment of the Asset Management Fee, the price per share shall be: (i) the net asset value per share as determined by the most recent appraisal performed by an independent third party at the time such Asset Management Fee was earned or, if an appraisal has not yet been performedmade and accepted by the Company, (ii) $10 per share. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.

Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company hereunder an amount equal to one percent per annum of the Average Adjusted Invested Assets of the Company (the "Asset Management ASSET MANAGEMENT Fee") calculated as set forth below. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or LoansInvestment Assets, on the basis of one-twelfth of one percent of the Average Adjusted Invested Assets for the preceding that month, computed as a daily average. One-half of the Asset Management Fee calculated with respect to each month shall be payable monthly on the last day of such month, or the first business day following the last day of such month. One-half of the such Asset Management Fee calculated with respect shall be subordinated to each month the extent described below and shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarterquarterly. Payment of this fee The subordinated Asset Management Fee for any quarter shall be payable only if the Shareholders have received a Preferred ReturnReturn has been met through the end of the applicable quarter. Any portion of the subordinated Asset Management Fee not paid due to the Company's failure to pay meet the Preferred Return shall be paid by the Company, to the extent it is not restricted by the 2%/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid met the Preferred Return. If at the end of any fiscal quarter, the Company's Operating Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months, payment of the subordinated Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such paymentconsistent with Section 13. For purposes of calculating the value per share of restricted stock given for payment of the Asset Management Fee, the price per share shall be: (i) the net asset value per share as determined by the most recent appraisal performed by an independent third party at the time such Asset Management Fee was earned or, if an appraisal has not yet been performedmade and accepted by the Company, (ii) $10 per share. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.

Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company hereunder an amount equal to one half of one percent per annum of the Average Invested Assets of the Company (the "Asset Management Fee") calculated as set forth below. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or Loans, on the basis of one-twelfth of one half of one percent of the Average Invested Assets for the preceding month, computed as a daily average. One-half of the The Asset Management Fee calculated with respect to each month shall be payable monthly on the last day of such month, or the first business day following the last day of such month. One-half of the Asset Management Fee calculated with respect to each month shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarter. Payment of this fee for any quarter shall be payable only if the Shareholders have received a Preferred Return. Any portion of the Asset Management Fee not paid due to the Company's failure to pay the Preferred Return shall be paid by the Company, to the extent it is not restricted by the 2%/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid the Preferred Return. If at the end of any fiscal quarter, the Company's Operating Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months, payment of the Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such payment. For purposes of calculating the value per share of restricted stock given for payment of the Asset Management Fee, the price per share shall be: (i) the net asset value per share as determined by the most recent appraisal performed by an independent third party or, if an appraisal has not yet been performed, (ii) $10 per share. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.

Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company hereunder an amount equal to one percent .5% per annum of the Average Invested Assets of the Company (the "Asset Management Fee") calculated as set forth below. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or Loans, on the basis of one-twelfth of one percent .5% of the Average Invested Assets for during the preceding previous month, computed as a daily average. One-half of the The Asset Management Fee calculated with respect to each month shall be payable monthly on the last day of such month, or the first business day following the last day of such month. One-half of the Asset Management Fee calculated with respect to each month shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarter. Payment of this fee for any quarter shall be payable only if the Shareholders have received a Preferred Return. Any portion of the Asset Management Fee not paid due to the Company's failure to pay the Preferred Return shall be paid by the Company, to the extent it is not restricted by the 2%/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid the Preferred Return. If at the end of any fiscal quarter, the Company's Operating Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months, payment of the Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such payment. For purposes of calculating determining the value per share of restricted stock given for payment amount of the Asset Management Fee, the price per share shall Average Invested Assets will be: (i) , in any particular month, the net asset estimated value per share as of all of the Properties determined by in accordance with the most recent appraisal performed by an independent third party orrecently conducted Valuation, if an appraisal has not yet been performed, (ii) $10 per shareplus the principal balance of all Loans. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.

Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company hereunder an amount equal to one half percent per annum of the Average Invested Assets of the Company (the "Asset Management Fee") calculated as set forth below. The Asset Management Fee is payable in cash or restricted stock at the option of the Advisor. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or Loans, on the basis of one-twelfth of one half percent of the Average Invested Assets for the preceding month, computed as a daily average. One-half of the The Asset Management Fee calculated with respect to each month shall be payable monthly on the last day of such month, or the first business day following the last day of such month. One-half of the Asset Management Fee calculated with respect to each month shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarter. Payment of this fee for any quarter shall be payable only if the Shareholders have received a Preferred Return. Any portion of the Asset Management Fee not paid due to the Company's failure to pay the Preferred Return shall be paid by the Company, to the extent it is not restricted by the 2%/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid the Preferred Return. If at the end of any fiscal quarter, the Company's Operating Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months, payment of the Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such payment. For purposes of calculating the value per share of restricted stock given for payment of the Asset Management Fee, the price per share shall be: (i) the net asset value per share as determined by the most recent appraisal performed by an independent third party or, if an appraisal has not yet been performed, (ii) $10 per share. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.

Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company hereunder an amount equal to one percent per annum of the Average Adjusted Invested Assets of the Company (the "“Asset Management Fee"”) calculated as set forth below. The Asset Management Fee will be calculated monthly, beginning with the month in which the Company first makes an investment in Properties or LoansInvestment Assets, on the basis of one-twelfth of one percent of the Average Adjusted Invested Assets for the preceding that month, computed as a daily average. One-half of the Asset Management Fee calculated with respect to each month shall be payable monthly on the last day of such month, or the first business day following the last day of such month. One-half of the such Asset Management Fee calculated with respect shall be subordinated to each month the extent described below and shall be payable on a quarterly basis on the last day of the first month of the immediately following fiscal quarterquarterly. Payment of this fee The subordinated Asset Management Fee for any quarter shall be payable only if the Shareholders have received a Preferred ReturnCompany has generated cash flow from operations in the aggregate of no less than 7% of Gross Offering Proceeds for the period beginning with the Initial Closing Date and ending on the last day of the most recently completed fiscal quarter. Any portion of the subordinated Asset Management Fee not paid due to the Company's ’s failure to pay meet the Preferred Return foregoing threshold shall be paid by the Company, to the extent it is not restricted by the 2%/25% Guidelines as described below, at the end of the next fiscal quarter through which the Company has paid met the Preferred Returnforegoing threshold. If at the end of any fiscal quarter, the Company's ’s Operating Expenses exceed the 2%/25% Guidelines over the immediately preceding 12 months, payment of the subordinated Asset Management Fee will be withheld to the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any portion of the Asset Management Fee not paid due to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal quarter to the extent such payment would not cause the Company to fail to satisfy the 2%/25% Guidelines if such payment were to be included in the Company's Operating Expenses for the 12 months preceding such paymentconsistent with Section 13. For purposes of calculating the value per share of restricted stock given for payment of the Asset Management Fee, the price per share shall be: (i) the net asset value per share as determined by the most recent appraisal performed by an independent third party at the time such Asset Management Fee was earned or, if an appraisal has not yet been performedmade and accepted by the Company, (ii) $10 per share. Any part of the Asset Management Fee that has been subordinated pursuant to this subsection (a) shall not be deemed earned until such time as payable hereunder.