Calculation of Second-Tier Management Compensation. In addition to the First-Tier Management Compensation, the Advisor shall receive second-tier management compensation for each month (the “Second-Tier Management Compensation”). 6.2.1 The Second-Tier Management Compensation shall be calculated by the Advisor and paid or refunded (as applicable) as follows: (1) At the end of each month during each fiscal year, the Advisor shall calculate the Tiered Percentage of the difference of (i) the Net Income for such month (or lesser portion thereof), minus (ii) the Threshold Return for such month (or lesser portion thereof) (the “Quarterly Second-Tier Amount”). If the Second-Tier Amount is a positive number, then at the end of each such month the Company shall pay the Advisor the Second-Tier 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 Second-Tier Amount”). If the aggregate of the Second-Tier Amounts received by the Advisor for such year (but not taking into account any prior years) is less than the Annual Second-Tier Amount, then the Company shall pay the Advisor such shortfall (the “Remaining Amount”). On the other hand, if the aggregate of the Second-Tier Amounts received by the Advisor during such year (but not taking into account any prior years) exceeds the Annual Second-Tier 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 Second-Tier Amounts received by the Advisor during such year.
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Samples: Advisory Agreement (CM REIT, Inc.), Advisory Agreement (CM REIT, Inc.), Advisory Agreement (CM REIT, Inc.)
Calculation of Second-Tier Management Compensation. In addition to the First-Tier Management Compensation, the Advisor shall receive second-tier management compensation for each month fiscal quarter (the “Second-Tier Management Compensation”).
6.2.1 The Second-Tier Management Compensation shall be calculated by the Advisor and paid or refunded (as applicable) as follows:
(1) At the end of each month 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 month quarter (or lesser portion thereof), minus (ii) the Threshold Return for such month quarter (or lesser portion thereof) (the “Quarterly Second-Tier Amount”). If the Quarterly Second-Tier Amount is a positive number, then at the end of each such month quarter the Company shall pay the Advisor the Quarterly Second-Tier 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 Second-Tier Amount”). If the aggregate of the Quarterly Second-Tier Amounts received by the Advisor for such year (but not taking into account any prior years) is less than the Annual Second-Tier Amount, then the Company shall pay the Advisor such shortfall (the “Remaining Amount”). On the other hand, if the aggregate of the Quarterly Second-Tier Amounts received by the Advisor during such year (but not taking into account any prior years) exceeds the Annual Second-Tier 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 Second-Tier Amounts received by the Advisor during such year.
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