Common use of Development Fee for the Development Work Clause in Contracts

Development Fee for the Development Work. (a) For and in consideration of the services rendered by Developer with respect to the Development Work, Owner shall, subject to and in accordance with the terms and provisions of this Agreement and the Construction Loan, pay to Developer during each month of the Term, the Development Costs for the applicable month together with the applicable monthly installment of the Development Fee. The Development Fee shall be three percent (3%) of the total Development Budget (less the Development Fee, land acquisition costs and any financing fee or acquisition fee paid to Developer or its Affiliate). (b) The Development Fee shall be deemed earned and payable, subject to any lender requirements under the Construction Loan, as follows: thirty percent (30%) upon closing of the Construction Loan (the "30% Draw") with the balance paid in equal monthly installments over the remainder of the Development Period reflected in the Project Development Schedule, payable together with the Development Costs for the applicable month in accordance with the provisions of Section 7.2. Owner agrees to use commercially reasonable efforts to negotiate terms in the Construction Loan documents to reflect the payment schedule set forth in this Section 11.1(b). To the extent the Construction Loan provides for a different schedule for the funding and payment of the Development Fee, the payment provisions set forth herein shall be deemed automatically modified and amended to comply with the terms of the Construction Loan, including any modification to the timing of the payment of any unpaid amount of the Development Fee not disbursed through the Monthly Draws under the Construction Loan until Final Completion as provided for in the Construction Loan. Notwithstanding the foregoing, until the closing of the Construction Loan, Developer shall be entitled to take draws of the Development Fee in the following manner: 1. On a monthly basis, Developer shall be entitled to draw an amount equal to the full Development Fee divided by twenty-four (24) (the "Pre-Construction Loan Closing Draw"). 2. At such time as the Construction Loan closes, Developer shall be entitled to draw for the 30% Draw less an amount equal to the sum of all Pre-Construction Loan Closing Draws paid to Developer. 3. From and after the closing of the Construction Loan, the Developer shall be entitled to draw the remaining unpaid portion of the Development Fee in monthly installments over the course of the over the remainder of the Development Period reflected in the Project Development Schedule, payable together with the Development Costs for the applicable month in accordance with the provisions of Section 7.2. (c) The Development Fee shall not exceed the amount listed in the Development Budget annexed hereto as Exhibit D as the “Development Fee”, nor the amount listed in the final Development Budget approved by Owner at the time of the Construction Loan closing and commencement of construction, provided, however, that if there is material change in the scope of the Development Work, Developer and Owner shall negotiate in good faith to adjust, upward or downward, as applicable the Development Fee to reflect the increase or decrease in the Development Budget resulting from such change in scope.

Development Fee for the Development Work. (a) For and in consideration of the services rendered by Developer with respect to the Development Work, Owner shall, subject to and in accordance with the terms and provisions of this Agreement and the Construction Loan, pay to Developer during each month of the Term, the Development Costs for the applicable month together with the applicable monthly installment of the Development Fee. The Development Fee shall be three percent (3%) of the total Development Budget (less the Development Fee, land acquisition costs and any financing fee or acquisition fee paid to Developer or its Affiliate)$1,481,650. (b) The Development Fee shall be deemed earned and payable, subject to any lender Construction Lender requirements under the Construction Loan, as follows: thirty percent (30%) upon closing of the Construction Loan (the "30% Draw") with the balance paid in twenty two equal monthly installments over the remainder of the Development Period reflected in the Project Development Schedulebeginning with a November 2015 payment, payable together with the Development Costs for the applicable month in accordance with the provisions of Section 7.2. Owner agrees to use commercially reasonable efforts to negotiate terms in the Construction Loan documents to reflect the payment schedule set forth in this Section 11.1(b). To the extent the Construction Loan provides for a different schedule for the funding and payment of the Development Fee, the payment provisions set forth herein shall be deemed automatically modified and amended to comply with the terms of the Construction Loan, including any modification to the timing of the payment of any unpaid amount of the Development Fee not disbursed through the Monthly Draws under the Construction Loan until Final Completion as provided for in the Construction Loan. Notwithstanding the foregoing, until the closing of the Construction Loan, Developer shall be entitled to take draws of the Development Fee in the following manner: 1. On a monthly basis, Developer shall be entitled to draw an amount equal to the full Development Fee divided by twenty-four (24) (the "Pre-Construction Loan Closing Draw"). 2. At such time as the Construction Loan closes, Developer shall be entitled to draw for the 30% Draw less an amount equal to the sum of all Pre-Construction Loan Closing Draws paid to Developer. 3. From and after the closing of the Construction Loan, the Developer shall be entitled to draw the remaining unpaid portion of the Development Fee in monthly installments over the course of the over the remainder of the Development Period reflected in the Project Development Schedule, payable together with the Development Costs for the applicable month in accordance with the provisions of Section 7.2.; and (c) The Development Fee shall not exceed the amount listed in the Development Budget annexed hereto as Exhibit D as the “Development Fee”, nor the amount listed in the final Development Budget approved by Owner at the time of the Construction Loan closing and commencement of construction, provided, however, that if there is a material change in the scope of the Development Work, Developer and Owner shall negotiate in good faith to adjust, upward or downward, as applicable the Development Fee to reflect the increase or decrease in the Development Budget resulting from such change in scope.

Development Fee for the Development Work. (a) For and in consideration of the services rendered by Developer with respect to the Development Work, Owner shall, subject to and in accordance with the terms and provisions of this Agreement and the Construction Loan, pay to Developer during each month of the Term, the Development Costs for the applicable month together with the applicable monthly installment of the Development Fee. The Development Fee shall be three percent (3%) of the total Development Budget (less the Development Fee, land acquisition costs and any financing fee or acquisition fee paid to Developer or its Affiliate). (b) The Development Fee shall be deemed earned and payable, subject to any lender requirements under the Construction Loan, as follows: thirty percent (30%) upon closing of the Construction Loan (the "30% Draw") with the balance paid in equal monthly installments over the remainder of the Development Period reflected in the Project Development Schedule, payable together with the Development Costs for the applicable month in accordance with the provisions of Section 7.2. Owner agrees to use commercially reasonable efforts to negotiate terms in the Construction Loan documents to reflect the payment schedule set forth in this Section 11.1(b). To the extent the Construction Loan provides for a different schedule for the funding and payment of the Development Fee, the payment provisions set forth herein shall be deemed automatically modified and amended to comply with the terms of the Construction Loan, including any modification to the timing of the payment of any unpaid amount of the Development Fee not disbursed through the Monthly Draws under the Construction Loan until Final Completion as provided for in the Construction Loan. Notwithstanding the foregoing, until the closing of the Construction Loan, Developer shall be entitled to take draws of the Development Fee in the following manner: 1. On a monthly basis, Developer shall be entitled to draw an amount equal to the full Development Fee divided by twenty-four (24) (the "Pre-Construction Loan Closing Draw"). 2. At such time as the Construction Loan closes, Developer shall be entitled to draw for the 30% Draw less an amount equal to the sum of all Pre-Construction Loan Closing Draws paid to Developer. 3. From and after the closing of the Construction Loan, the Developer shall be entitled to draw the remaining unpaid portion of the Development Fee in monthly installments over the course of the over the remainder of the Development Period reflected in the Project Development Schedule, payable together with the Development Costs for the applicable month in accordance with the provisions of Section 7.2.; and (c) The Development Fee shall not exceed the amount listed in the Development Budget annexed hereto as Exhibit D as the “"Development Fee”'', nor the amount listed in the final Development Budget approved by Owner at the time of the Construction Loan its loan closing and commencement of construction, provided, however, that if there is material change in the scope of the Development Work, Developer and Owner shall negotiate in good faith to adjust, upward or downward, as applicable the Development Fee to reflect the increase or decrease in the Development Budget resulting from such change in scope.