REIMBURSEMENT TO THE ADVISOR. The reimbursement of the REIT Operating Expenses is subject to the following: unless a majority of the Independent Directors shall have made a finding that, based upon such unusual and non-recurring factors which they deem sufficient, a higher level of expenses is justified, the Company shall not reimburse the Advisor at the end of any fiscal quarter for REIT Operating Expenses that, in the four consecutive fiscal quarters then ended (the “Expense Year”) exceed the greater of 2% of Average Invested Assets or 25% of Net Income (the “2%/25% Guidelines”) for such year. Within 60 days after the end of any fiscal quarter of the Company for which total REIT Operating Expenses for the Expense Year exceed the 2%/25% Guidelines and the Independent Directors do not make such a finding, the Advisor shall reimburse the Company the amount by which the total REIT Operating Expenses paid or incurred by the Company exceeded the 2%/25% Guidelines.
Appears in 6 contracts
Samples: Advisory Agreement (Orange REIT, Inc.), Advisory Agreement (Orange REIT, Inc.), Advisory Agreement (Orange Hospitality, INC)
