Oklahoma City accepted a $3.8 million settlement Tuesday to cover its expenses from the New Orleans Hornets' temporary relocation and its share of the team's revenues from a successful first season in the city.

The offer, approved unanimously by the mayor and the City Council, was included in an amendment to the team's temporary-relocation agreement. It also includes terms for the team's second season in Oklahoma City and an option for a third season, a contingency for the team in case it cannot return to New Orleans as planned in 2007-08.