Common use of Limitation on Expenses Clause in Contracts

Limitation on Expenses. (a) If the aggregate Operating Expenses of the Company under this Agreement and the Advisory Agreement during the 12-month period ending on the last day of any fiscal quarter of the Company exceed the greater of (i) two percent of the Average Invested Assets during the same 12-month period or (ii) 25% of the Adjusted Net Income of the Company during the same 12-month period, then subject to paragraph (b) of this Section 13, such excess amount shall be the sole responsibility of the Manager and the Company shall not be liable for payment therefor.