Common use of Performance Fees Clause in Contracts

Performance Fees. The Company will also pay a Performance Fee (the “Performance Fee”) equal to its pro rata share, according to the amount of Income relative to the amount of Aggregate Income, of the sum of (a) 10% of the Aggregate Income, until such time as the annual return for such Fiscal Year-end over the Aggregate Outperformance Threshold is equal (after taking into account the payment of such current period Performance Fee) to a 10% annual return (such annual return measured as the Aggregate Income over the Aggregate Outperformance Threshold) (the “Base Performance Fee”) plus (b) 25% of the Excess Income, if any, calculated and payable as of each Fiscal Year-end and the date on which this Agreement is terminated and not renewed; provided, however, that the Performance Fee for any Fiscal Year shall not exceed the Company’s pro rata share, according to the amount of Income relative to the amount of Aggregate Income, of 17.5% of the Aggregate Income for such Fiscal Year. The Performance Fee will be paid in accordance with Section 4 of this Fee Schedule. If, after consultation with the Board of Directors, the Investment Manager determines to separately account for any illiquid investments in a so called “side pocket” (e.g. mezzanine and originated loans), the Performance Fee on such investments will be calculated and paid on the realized gain (as part of the calculation of Aggregate Income), if any, on such investments upon disposition.