OPA: Grimshaw House - City of Anaheim

and Option Prices are charged (but only to the extent the Extra and Option Prices for such Extras and
Options are included in the Total Sales Price for such Housing Units), field labor, field supervision,
bonuses paid to field superintendents (provided such bonuses are normal in the residential
construction industry and are fairly allocated among the various projects on which the superintendent
has worked), automobile and payroll additives related to field labor or supervision, field office
expenses such as rental, depreciation, furnishings or utilities, insurance for work in process of
completed products (course of construction), temporary power, tool or equipment rentals, property
taxes and current assessments for the Project, guard services, trash disposal or community
maintenance expenses or assessments, and legal expenses directly related to the entitlement,
development, and construction of the Project and specifically excluding utility hook up fees and
other charges and fees, and deposits which Developer expects to have and are actually refunded or
reimbursed, all as more particularly described in Exhibit "2". Exhibit "2" lists examples of Direct
and Indirect Costs and is not intended to be all inclusive. The cost of work on the Project and on
land other than the Project shall be fairly allocated for purposes of calculating Actual Construction
Costs among the Site served by such improvements.
E. Overhead. Three and one-half percent (31/2%)] of the Base Price per Housing
Unit in the Project for all overhead in connection with the development of the Project as
contemplated herein and in the Agreement, which shall include all costs other than those set forth
elsewhere in this Section including, but not limited to: salaries and payroll additives of Developer's
home and branch office executives, officers, department heads and staff in directing, administering
and supervising such development; the services of the purchasing department, sales manager and
marketing support staff in the home and branch offices; all employee bonuses (excluding bonuses
paid to field superintendents as described in Paragraph 1.D above); general legal and accounting
fees; and the operating expenses of Developer's home and branch office such as rent, utilities,
insurance, stationery, office machines and other office related expenses, and all costs set forth in
Paragraph 1.N below.
F. Warranty. For each Housing Unit within the Project, the Warranty Actual
Construction Cost shall be one percent (1%) of the Base Price for each Housing Unit (the
"Warranty Actual Construction Cost").
G. Land Acquisition. The Base Purchase Price paid by Developer for the Site
pursuant to the Agreement including, without limitation, all interest paid thereon to the Agency with
respect to the Site.
H. Accounting. The fee or charge of a certified public accountant who prepares
Developer's Additional Purchase Price report (defined below) to determine Additional Purchase
Price due Agency pursuant to the Agreement to a maximum of Ten Thousand Dollars ($10,000.00)
for the Project.
I. Buyer Upgrade Costs. Developer's costs for the purchase and installation of
Buyer upgrades, including an amount equal to ten percent (10%) of revenue received for the sale of
Buyer upgrades as an overhead cost for Developer's design center and other options administration,
shall be an allowable Actual Construction Cost.
Attachment No. 12 - Page 4