Common use of Developer Compensation Clause in Contracts

Developer Compensation. a. As compensation for the services to be rendered by Developer pursuant to the terms of this Agreement, Owner shall pay to Developer a development fee equal to NINE HUNDRED FORTY EIGHT THOUSAND AND NO/100 DOLLARS ($948,000.00) (the “Development Fee”), which shall be payable by wire transfer or other immediately available funds as follows: 1. An amount equal to 25% of the Development Fee (TWO HUNDRED THIRTY THOUSAND AND NO/100 DOLLARS $237,000.00) shall be paid to Developer upon commencement of construction of the Project; 2. Following the commencement of construction of the Project, an amount equal to 50% of the Development Fee (FOUR HUNDRED SEVENTY FOUR THOUSAND AND NO/100 DOLLARS $474,000.00) shall be paid to Developer in equal monthly installments over a seventeen (17) month period; and 3. An amount equal to 25% of the Development Fee (TWO HUNDRED THIRTY THOUSAND AND NO/100 DOLLARS $237,000.00) shall be paid to Developer upon completion of the Project (as determined by the certified document of the architect or design professional) and the Project achieving, through lease-up, a Debt Service Coverage Ratio (as that term is defined in that certain Construction Loan Agreement by and between Fifth Third Bank and the Owner) of 1.20 to 1.00 (collectively, the “Stabilization”). Notwithstanding anything to the contrary contained herein, (a) if the Owner’s construction lender does not permit the aforesaid fees to be paid as draws under the construction loan, then such amounts shall accrue as provided in the JV’s Operating Agreement, or (b) if the Owner causes the Property to undergo a Capital Event prior to Stabilization, or any other termination event under Paragraph 4, the Owner shall, within thirty (30) days after such Capital Event, or other termination event, pay, pro-rata to the amount of development constructed as of the date of the Capital Event or other termination event, any outstanding, unpaid portion of the Development Fee which has not been paid to Developer. b. Owner shall also reimburse Developer for commercially reasonable out-of-pocket costs and expenses incurred by Developer for travel, administration, meals, etc., according to the approved Total Project Budget, subject to the draw schedule imposed and/or approved by the Owner and its construction lender. In the event any amounts payable hereunder to Developer are not delivered to Developer when due and payable, interest shall accrue on such outstanding amount at eight percent (8%) per annum from the date following the date such amount was due and payable.

Developer Compensation. a. As compensation for the services to be rendered by Developer pursuant to the terms of this Agreement, Owner shall pay to Developer a development fee equal to NINE HUNDRED FORTY EIGHT THOUSAND AND NO/100 DOLLARS ($948,000.00) (the “Development Fee”), which shall be payable by wire transfer or other immediately available funds as follows: 1. An amount equal to 25% of the Development Fee (TWO HUNDRED THIRTY THOUSAND AND NO/100 DOLLARS $237,000.00) shall be paid to Developer upon commencement of construction of the Project; 2. Following the commencement of construction of the Project, an amount equal to 50% of the Development Fee (FOUR HUNDRED SEVENTY FOUR THOUSAND AND NO/100 DOLLARS $474,000.00) shall be paid to Developer in equal monthly installments over a seventeen (17) month period; and 3. An amount equal to 25% of the Development Fee (TWO HUNDRED THIRTY THOUSAND AND NO/100 DOLLARS $237,000.00) shall be paid to Developer upon completion of the Project (as determined by the certified document of the architect or design professional) and the Project achieving, through lease-up, a Debt Service Coverage Ratio (as that term is defined in that certain Construction Loan Agreement by and between Fifth Third Bank and the Owner) of 1.20 to 1.00 (collectively, the “Stabilization”). Notwithstanding anything to the contrary contained herein, (a) if the Owner’s 's construction lender does not permit the aforesaid fees to be paid as draws under the construction loan, then such amounts shall accrue as provided in the JV’s 's Operating Agreement, or (b) if the Owner causes the Property to undergo a Capital Event prior to Stabilization, or any other termination event under Paragraph 4, the Owner shall, within thirty (30) days after such Capital Event, or other termination event, pay, pro-rata to the amount of development constructed as of the date of the Capital Event or other termination event, any outstanding, unpaid portion of the Development Fee which has not been paid to Developer. b. Owner shall also reimburse Developer for commercially reasonable out-of-pocket costs and expenses incurred by Developer for travel, administration, meals, etc., according to the approved Total Project Budget, subject to the draw schedule imposed and/or approved by the Owner and its construction lender. In fu the event any amounts payable hereunder to Developer are not delivered to Developer when due and payable, interest shall accrue on such outstanding amount at eight percent (8%) per annum from the date following the date such amount was due and payable.