Common use of Calculation of Incentive Management Compensation Clause in Contracts

Calculation of Incentive Management Compensation. In addition to the Base Management Compensation, the Advisor shall receive incentive management compensation for each fiscal quarter (the "Incentive Management Compensation"). 6.2.1 The Incentive Management Compensation shall be calculated by the Advisor and paid or refunded (as applicable) as follows: (1) At the end of each of the first three fiscal quarters during each fiscal year, the Advisor shall calculate the Tiered Percentage of the difference of (i) the Net Income for such quarter (or lesser portion thereof), minus (ii) the Threshold Return for such quarter (or lesser portion thereof) (the "Quarterly Incentive Amount"). If the Quarterly Incentive Amount is a positive number, then at the end of each such quarter the Company shall pay the Advisor the Quarterly Incentive Amount. (2) At the end of each fiscal year and upon any termination of this Agreement, the Advisor shall calculate the Tiered Percentage of the difference of (i) the Net Income for such year (or lesser portion thereof), minus (ii) the Threshold Return for such year (or lesser portion thereof) (the "Annual Incentive Amount"). If the aggregate of the Quarterly Incentive Amounts received by the Advisor for such year (but not taking into account any prior years) is less than the Annual Incentive Amount, then the Company shall pay the Advisor such shortfall (the "Remaining Amount"). On the other hand, if the aggregate of the Quarterly Incentive Amounts received by the Advisor during such year (but not taking into account any prior years) exceeds the Annual Incentive Amount, then the Advisor shall pay the Company such excess (the "Advisor Refund"). The Advisor Refund for any particular year shall not exceed the aggregate of the Quarterly Incentive Amounts received by the Advisor during such year.

Calculation of Incentive Management Compensation. In addition to the Base Management Compensation, the Advisor Manager shall receive incentive management compensation for each fiscal quarter (the "“Incentive Management Compensation"”). 6.2.1 The Incentive Management Compensation shall be calculated by the Advisor Manager and paid or refunded (as applicable) as follows: (1) At the end of each of the first three fiscal quarters during each fiscal year, the Advisor Manager shall calculate the Tiered Percentage of the difference of (i) the Net Income for such quarter (or lesser portion thereof), minus (ii) the Threshold Return for such quarter (or lesser portion thereof) (the "“Quarterly Incentive Amount"”). If the Quarterly Incentive Amount is a positive number, then at the end of each such quarter the Company shall pay the Advisor Manager the Quarterly Incentive Amount. (2) At the end of each fiscal year and upon any termination of this Agreement, the Advisor Manager shall calculate the Tiered Percentage of the difference of (i) the Net Income for such year (or lesser portion thereof), minus (ii) the Threshold Return for such year (or lesser portion thereof) (the "“Annual Incentive Amount"”). If the aggregate of the Quarterly Incentive Amounts received by the Advisor Manager for such year (but not taking into account any prior years) is less than the Annual Incentive Amount, then the Company shall pay the Advisor Manager such shortfall (the "“Remaining Amount"”). On the other hand, if the aggregate of the Quarterly Incentive Amounts received by the Advisor Manager during such year (but not taking into account any prior years) exceeds the Annual Incentive Amount, then the Advisor Manager shall pay the Company such excess (the "Advisor “Manager Refund"”). The Advisor Manager Refund for any particular year shall not exceed the aggregate of the Quarterly Incentive Amounts received by the Advisor Manager during such year.