Common use of Preferred Return Clause in Contracts

Preferred Return. Subject to the further terms of the Agreement, until the time each Class A Member’s initial capital contribution is returned in full in accordance with Section 4.2 below as a result of the sale of the Company’s real property or disposition of Loans, the Manager may, in the Manager’s sole and reasonable discretion, distribute to each Class A Member, on a quarterly basis, an amount of cash necessary to provide each Class A Member with a pre-tax non-cumulative annual return of seven and a half percent (7.5%) (non-compounding) on the outstanding amount of each such Class A Member’s initial capital contribution. Distributions are expected to commence payments during the first quarter after the first anniversary date of the first Subscription Agreement accepted by the Company.

Preferred Return. Subject to the further terms of the Agreement, until the time each Class A Member’s initial capital contribution is returned in full in accordance with Section 4.2 below as a result of the sale of the Company’s real property or disposition of Loans, the Manager may, in the Manager’s sole and reasonable discretion, distribute to each Class A Member, on a quarterly basis, an amount of cash necessary to provide each Class A Member with a pre-tax non-cumulative annual return of seven eight and a half percent (7.58.5%) (non-compounding) on the outstanding amount of each such Class A Member’s initial capital contribution. Distributions are expected to commence payments during the first quarter after the first anniversary date of the first Subscription Agreement accepted by the Company.

Preferred Return. Subject to the further terms of the Agreement, until the time each Class A Member’s initial capital contribution is returned in full in accordance with Section 4.2 below as a result of the sale of the Company’s real property or disposition of Loans, the Manager may, in the Manager’s sole and reasonable discretion, distribute to each Class A Member, on a quarterly basis, an amount of cash necessary to provide each Class A Member with a pre-tax non-cumulative annual return of seven and a half eight percent (7.58%) (non-compoundingsimple interest) on the outstanding amount of each such Class A Member’s initial capital contribution. Distributions are expected to will commence payments during the first quarter after the first anniversary date of the first Subscription Agreement accepted by the Company.