Common use of Subordinated Disposition Fee Clause in Contracts

Subordinated Disposition Fee. i. If the Advisor or one of its Affiliates provides a substantial amount of services (as determined by a majority of the Independent Directors) in connection with the Sale of one or more Investments, the Fund shall pay to the Advisor or such Affiliate a “Subordinated Disposition Fee” equal to the lesser of (A) one-half of a Competitive Real Estate Commission, and (B) 3.0% of the proceeds of the Sale of such Investment. The Subordinated Disposition Fee will be payable only if the following condition (the “Subordination Condition”) has been satisfied as of the date of payment: the Stockholders must have received Dividends in an amount equal to their Remaining Capital plus their 8% Return. To the extent that Subordinated Disposition Fees are not payable by the Fund at the time of the Sale of an Investment because the Subordination Condition has not been satisfied, any unpaid fees will be paid at such time as the Subordination Condition has been satisfied. The Subordinated Disposition Fee may be paid in addition to real estate commissions paid to non-Affiliates in connection with any Sale of an Investment; provided that the total real estate commissions paid to all Persons by the Fund shall not exceed an amount equal to the lesser of (X) 6.0% of the proceeds of the Sale of such Investment, and (Y) the Competitive Real Estate Commission with respect to the Sale of such Investment.

Subordinated Disposition Fee. i. If the Advisor or one of its Affiliates Manager provides a substantial amount of services (as determined by a majority in the sale of the Independent Directors) in connection with the Sale of one or more Investmentsan Investment, the Fund Manager shall pay be entitled to receive a subordinated disposition fee (the Advisor or such Affiliate a “"Subordinated Disposition Fee” ") at the time of such disposition, in an amount equal to the lesser of (A1) one-half 50% of a the Competitive Real Estate Commission, Commission (if applicable) and (B2) 3.0% of the proceeds Contract Sales Price of the Sale Investment; provided, however, that the Subordinated Disposition Fee in respect of such Investments that are Loans shall equal 1.0% of the equity capital invested by CPA: 17 in the Investment. The total real estate commissions and Subordinated Disposition Fee will be payable only if the following condition (the “Subordination Condition”) has been satisfied as of the date of paymentFees CPA: the Stockholders must have received Dividends in 17 pays to all Persons shall not exceed an amount equal to their Remaining Capital plus their 8the lesser of: (1) 6% Returnof the Contract Sales Price of the Investment or (2) the Competitive Real Estate Commission. Payment of Subordinated Disposition Fees and accrued interest thereon, will be subordinated to the Preferred Return and only paid if the Preferred Return of 5% has been achieved through the end of the prior fiscal quarter. To the extent that Subordinated Disposition Fees are not payable by paid on a current basis due to the Fund at foregoing limitation, the time of the Sale of an Investment because the Subordination Condition has not been satisfied, any unpaid fees will be due and paid at such time as the Subordination Condition limitation has been satisfied, together with interest from the time of disposition of the Investment to which they relate, at the rate of 5%. The Subordinated Disposition Fee Manager shall present to the Independent Directors such information as they may be paid in addition reasonably request to real estate commissions paid to non-Affiliates review the level of services provided by the Manager in connection with any Sale a disposition and the basis for the calculation of an Investment; provided that the total real estate commissions paid amount of the Subordinated Disposition Fees on a quarterly basis. No payment of Subordinated Disposition Fees shall be made prior to all Persons review and approval of such information by the Fund shall not exceed an amount equal to the lesser of (X) 6.0% of the proceeds of the Sale of such Investment, and (Y) the Competitive Real Estate Commission with respect to the Sale of such InvestmentIndependent Directors.