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c. Upon the execution of an HRA Contract, Landform shall receive 20% of the total Incentive Compensation, EXCEPT that in no event shall the said 20% exceed the non - refundable (hard) earnest money or other down payment received by the HRA from the other party to the HRA Contract, i.e. buyer, lessee, or developer, except upon specific HRA authorization. In the event the earnest money is held in escrow by a title company or other fiducary until closing or termination of the HRA Contract, the HRA shall, assess the security of said earnest money to be released to the HRA upon closing or HRA Contract termination and after consultaion with its Legal Counsel make a dtermination on whether or not to authorize payment of the 20% to Landform. d. Upon closing of a land sale transaction between the HRA and a parcel developer, or tenant occupancy under a lease, Landform shall receive 60% of the total Incentive Compensation. e. Following project design, permitting and construction, and upon issuance of a Certificate of Occupancy by the City ,Landform shall receive a final payment of 20% of the total Incentive Compensation, subject to paragraph 9. below. In addition, for Phased Projects as defined in paragraph 5. below the 20% payment shall be paid at the time of occupancy of future phases. f. Example of the application of the above subparagraphs c. -e. of this paragraph 3.: An agreement is signed on a parcel of land for an office building valuated at $10m in June, 2011. There were three (3) advances totaling $30,000 previously. i. The Incentive Compensation is calculated at two percent (2 %) of $10m or $200,000. ii. The initial payment would be twenty percent (20 %) of the total or $40,000 minus the previous advances of $30,000 for a net payment of $10,000. iii. Closing occurs and the second payment of sixty percent (60 %) of the total Incentive Compensation becomes due in the amount of $120,000 minus subsequent draws (if any). iv. Upon certificate of occupancy for the office building, the final twenty percent (20 %) becomes due in the amount of $40,000. 4. Large Projects — In calculating the Incentive Compensation on developments with a total Development Capital Cost greater than $30 million in a single transaction, the following equation shall be used: a. The Incentive Compensation shall be two percent (2 %) of the total Development Capital Cost up to $30 million (standard agreement); b. Then, one percent (1.0 %) for Development Capital Costs from $30 million to $100 million; Ramsey -2011 DM Agreement 9