R2006-157 AUTHORIZING REDEVELOPMENT AGREEMENT AND NOTE

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Book : 3758 Page : 113 gi-ound floors of the Black's Property building shall not be used as a warehouse or storage facility by the Developer, its successors and assigns. ' RE OPTION TO PURCHASE I 4C. DEVELOPER S EXPENSES TO AC UI Q Developer has expended the sum of twenty-five hundred dollars ($2,500.00) to acquire an option to purchase the old Kay's Merchandise properry (as described in Exhibit C-2 hereto) from the current owner(s) thereof in order to assign said option to the Municipality to enable the Municipality to acquire said property in furtherance of the Municipality's obligations pursuant to this Agreement. Within fourteen (14) days after the mutual execution of this Agreement, the Municipality shall reimburse Developer the sum of twenty-five hundred dollars ($2,500.00) for the expense to acquire the option. 5. LIMITED OBLIGATION The Municipality's obligations under this Agreement to pay debt service on any Note and/or to pay or reimburse the Developer for Eligible Redevelopment Project Costs is a special and limited obligation, to be paid solely from funds on deposit in the Special Account of the Fund, and not otherwise. Any such obligation does not now and shall never constitute an indebtedness of the Municipality within the meaning of any constitutional or statutory provision and shall not constitute or give rise to a pecuniary liabiliry of the Municipality or a charge or lien against the Municipaliry's general credit, funds, taxing power or otherwise, a condition precedent to the Municipality's execution hereof and to which the Developer hereby irrevocably assents. 6. EVENTS OF DEFAULT AND REMEDIES Material failure or delay by either the Municipality or Developer to timely perform any term or provision of this Agreement shall constitute an "event of default" under this Agreement. The party who so fails or delays must, upon receipt of written notice of the existence of such event of default, immediately commence to cure, correct or remedy such event of default and thereafter proceed with diligence to cure such event of default. The party claiming such event of default shall give written notice of the claimed event of default to the other party specifying the event of default complained o£ Except as required to protect against immediate, irreparable hann, the party asserting an event of default may not institute proceedings against the other parry unril thirty (30) days after having given such notice. If such event of default is cured within such thirty (30) day period, the event of default shall not be deemed to constitute a "default" under this Agreement. If the event of default is one which cannot reasonably be cured within a thirty (30) day period, upon request and with appropriate showings the cure period shall be extended for such time as is reasonably necessary for the curing of the same, so long as there is diligent proceeding to cure such event of default. If such event of default is cured within such extended period, the event shall not be deemed to constitute a default under this Agreement. However, an event of default not cured as provided above shall constitute a default under this Agreement. Except as otherwise expressly provided in this Agreement, any failure or delay by either party in asserting any of its rights or remedies as to any event of default or default shall not operate as a waiver of any such event of default or default of any rights or reinedies it may have as a result of such event of default RDLLC 20060926 v I 1 5