02/22/11 Special - Laserfiche WebLink

Home

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 Incentive Compensation 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 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%) of the Incentive Compensation becomes due in the amount of $40,000. 4. Large Developments — In calculating the Incentive Compensation on developments with a total DCC 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 DCC up to $30 million (standard agreement); b. Then, one percent (1.0%) for DCC in excess of $30 million up to $100 million; c. Then, one half percent (0.5%) for DCC in excess of $100 million up to $150 million; d. Then, one quarter per cent (0.25%)for DCC in excess of $150 million. Example for paragraphs 4. a.-d. above: An HRA contract is signed for a development with an estimated DCC of $180,000,000. The Incentive Compensation shall be calculated as follows: i. 2.0% of $30m = $600,000 ii. 1.0% of $70m = $700,000 iii. 0.5% of $50m = $250,000 iv. 0.25% of $30m = $75,000 v. Total Incentive Compensation = $1,625,000 5. Phased Developments — In calculating the Incentive Compensation on developments where occupancy is anticipated to be phased over a period greater than 24 months from closing of the transaction (phased start), a discount to the Incentive Compensation will be applied. a. Phase 1. For the purposes of this paragraph 5, if the land for the entire development is purchased at closing, the entire land value shall be reflected in phase 1 of the development. The Incentive Compensation for Phase 1 of the development shall be paid at the Page 13