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Example for paragraph 5.a.i through v. above: A sale occurs for <br />an apartment project consisting of six buildings. Two are to be <br />constructed immediately; two are anticipated to begin 36 months <br />later, and the last two the year after. The DCC for each phase is <br />roughly $20m ($18m in building and $2m in land). Both the Phased <br />Developments (Article IV, B, 5) and the Large Developments <br />(Article IV, B, 4) discounts shall apply. <br />i. First phase Incentive Compensation shall be the full two <br />percent (2%) of the $24m (Phase 1 plus total land costs) or <br />$480,000. <br />ii. Phase 2. $18m for building only, is discounted 20% or <br />$3.6m for a total value of $14.4m. For the purposes of <br />Incentive Compensation for this section one-half of that <br />value or $7.2m is realized. For $6m of this value the full two <br />percent (2%) applies for a total Incentive Compensation of <br />$120,000, for the remaining $1.2m (now over $30m value) <br />one percent (1%) applies or $12,000, for a total fee of <br />$132,000, with $72,000 deferred as outlined in paragraph <br />b.i. above. <br />iii. Phase 3, $18m for building only, is discounted 40% or <br />$7.2m for a total value of $10.8m. For the purposes of <br />Incentive Compensation for this section one-half of that <br />value or $5.4m is realized. The Incentive Compensation of <br />one percent (1%) applies for a total Incentive Compensation <br />of $54,000 with $54,000 deferred as outlined in paragraph <br />b.i. above. <br />iv. The total Incentive Compensation, subject to the 20/60/20 <br />split as outlined in paragraph 3.b. through e. above would be . <br />$666,000 with $126,000 deferred as outlined in paragraph <br />b.i. above. <br />6. Prior Projects. Incentive Compensation shall be due on any <br />development deals located within the Project that close or break ground <br />after April 1, 2010. In the event of the termination of this Agreement, <br />regardless of cause, any incentive compensation on active deals, as <br />defined in paragraph 7. (Hot List) a. through f. below, that have been <br />declared prior to termination shall become payable in full at the time of it's <br />eventual execution of HRA Contracts, land sale transaction, and issuance <br />of certificate of occupancy. <br />Page 15 <br />