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Attachment A allow a Development Fee exceeding 8%, any such amount shall be paid one-half (1/2) to the City and one-half (1/2) to the Redeveloper. The Development Fee shall be paid to the Redeveloper upon completion of the Minimum Improvements. (b) Pro Forma Review. Before commencement of construction, the City and the Redeveloper shall mutually agree in writing on a final development pro forma allowing for 8 percent net profit to the Redeveloper (the "Pro Forma") based on total development costs, including the net effective cost of the Redevelopment Property at $1.00 and excluding any Development Fee. The Pro Forma must be in substantially the form of the preliminary pro forma attached as Schedule F, and net profit will be calculated substantially as described in that schedule. Within 60 days after substantial completion of the Minimum Improvements, the Redeveloper shall submit cost and revenue analysis prepared by an accountant to the City's financial advisor in the form of the final Pro Forma and prepared in accordance with generally accepted accounting principles. The Redeveloper agrees to provide to the City's consultant any background documentation related to the financial data, upon request. If the City has reason to believe that the cost and revenue analysis is inaccurate, the City may retain an accountant to audit the submitted Pro Forma. In the event the audit demonstrates a discrepancy of more than 3°/o, the cost of the audit shall be paid by the Redeveloper and shall not be a cost of the Redevelopment subtracted when computing the Redeveloper's Development Fee. Section 3.9. Business Subsidv. The parties agree and understand that the financial assistance described in this Agreement does not constitute a business subsidy within the meaning of the Business Subsidy Act, because the assistance provided is for housing. The Redeveloper releases and waives any claim against the City, and the governing body members, officers, agents, servants and employees thereof arising from application of the Business Subsidy Act to this Agreement, including without limitation any claim that the City failed to comply with the Business Subsidy Act with respect to this Agreement. Section 3.10. Pavment of Administrative Costs. The Redeveloper agrees that it will pay, within 15 days after written notice from the City, the reasonable costs of consultants and attorneys retained by the City in connection with the negotiation in preparation of this Agreement and the implementation of this Agreement and other incidental agreements and documents related to the development contemplated hereunder, which cost shall be included in the total development costs for purposes of determination of the amount of the Redeveloper's Development Fee. The City will provide written reports describing the costs accrued under this Section upon request from the Redeveloper, but not more often than intervals of 45 days. Any amount deposited by the Redeveloper upon filing its application for tax increment financing with the City will be credited to the Redeveloper's obligation under this Section. Upon termination of this Agreement in accordance with its terms, the Redeveloper remains obligated under this section for costs incurred through the Termination Date. (The remainder of this page is intentionally left blank.) 10 7174856v3