Common use of Priority Return Clause in Contracts

Priority Return. As of any date, an aggregate amount equal to a 6% cumulative, non-compounded, annual return on Invested Capital, prorated for any partial year. For purposes of calculating the Priority Return for any calendar year or portion thereof, the Company will use the daily weighted average amount of Invested Capital for such period. Notwithstanding the foregoing, the Priority Return of 6% will be effective only upon approval by the Company’s stockholders of an amendment to the Company’s articles of incorporation wherein the Priority Return is changed from 8% to 6%. Until the approval of such amendment by the stockholders, the Priority Return will be 8%.

Appears in 2 contracts

Sources: Advisory Agreement (Global Growth Trust, Inc.), Advisory Agreement (CNL Macquarie Global Growth Trust, Inc.)