Common use of Transition Fee Clause in Contracts

Transition Fee. For duties performed by the Property Manager in reviewing and abstracting an Owner Subsidiary’s leases and contracts, preparing ledgers, creating a database of such Owner Subsidiary’s tenants and vendors, establishing Property bank account(s), and similar necessary, preliminary functions, the Property Manager shall pay itself from the applicable Operating Account a one-time fee (the “Transition Fee”) in the amount shown on Schedule A attached hereto and incorporated herein by this reference. The Transition Fee shall be paid within thirty (30) days after execution of an Investment Property Management Agreement with respect to a particular Property by all parties thereto or within thirty (30) days after receipt of all leases and other documents necessary to perform a full set up of any Property, whichever is later. The Transition Fee shall be based on the number of tenants with active leases in such Property, including those tenants whose lease term and/or rental have not yet commenced, but who have executed leases with the applicable Owner Subsidiary, as of the Commencement Date of the applicable Investment Property Management Agreement.