Common use of Subordinated Incentive Fee Clause in Contracts

Subordinated Incentive Fee. At such time, if any, as Listing occurs, the Advisor shall be paid the Subordinated Incentive Fee in an amount equal to 10% of the amount by which (i) the market value of the Company (as defined below) plus the total Distributions made to Stockholders from the Company’s inception until the date of Listing exceeds (ii) the sum of (a) their Invested Capital and (b) the total Distributions required to be made to the Stockholders in order to pay the Stockholders’ 8% Return from inception through the date the market value is determined. For purposes of calculating the Subordinated Incentive Fee, the market value of the Company shall be the average closing price or average of bid and asked price, as the case may be, over a period of 30 days during which the shares are traded with such period beginning 180 days after Listing. The Subordinated Incentive Fee will be reduced by the amount of any prior payment to the Advisor of a deferred, subordinated share of net sales proceeds from sales of assets of the Company. In no event shall the Company pay the Advisor both the Subordinated Incentive Fee and the Performance Fee.

Subordinated Incentive Fee. At such time, if any, as Listing occursUpon Listing, the Advisor or its assignees shall be paid entitled to the Subordinated Incentive Fee in an amount equal to 1015.0% of the amount by which (i) the market value of the Company (as defined below) plus the total Distributions made to Stockholders from the Company’s inception until the date of Listing exceeds (ii) the sum of (a) their Invested Capital and (b) the total Distributions required to be made to the Stockholders in order to pay the Stockholders’ 8% Return from inception through the date the market value is determined. For purposes of calculating the Subordinated Incentive Feeoutstanding Shares, the market value of the Company shall be measured by taking the average closing price or the average of the bid and asked price, as the case may be, over a period of 30 days during which the shares Shares are traded traded, with such period beginning 180 days after ListingListing (the “Market Value”), plus the total of all Distributions paid to Stockholders (excluding any stock dividends and Distributions paid on Shares that have been redeemed by the Company) from the Company’s inception until the date that Market Value is determined, exceeds (ii) the sum of (A) 100% of Invested Capital and (B) the total Distributions required to be paid to the Stockholders as of the date Market Value is determined in order to pay the Stockholders’ 7% Return from inception through the date Market Value is determined. The Company shall have the option to pay such fee in the form of cash, Shares, a promissory note or any combination of the foregoing. The Subordinated Incentive Fee will be reduced by the amount of any prior payment to the Advisor or its assignees of a deferred, subordinated share Subordinated Share of net sales proceeds from sales of assets of the CompanyCash Flows. In no the event shall the Company pay the Advisor both the Subordinated Incentive Fee and is paid to the Performance FeeAdvisor or its assignees following Listing, no additional Subordinated Share of Cash Flows will be paid to the Advisor.