R2006-94 APPROVING REDEVELOPMENT AGREEMENT WITH IP PLAZA LLC

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. . ., . . , �� =� 1Z � PG � � � ,� Cutler, 111 West Monroe Street, Chicago, Illinois, or other nationally-recognized bond counsel acceptable to the City, that such notes, as issued, in form and substance, are in full compliance with all federal and state requirements for issuance of municipal debt, including but not limited to all applicable provisions of the United States Internal Revenue Code, and that such notes are in full compliance with all of the provisions of this Agreement, including but not limited to all limitations on the amount of reimbursement due, including interest thereon, and that such will not impair the City's ability to issue other debt. (c) Notes issued pursuant to the provision hereof may be assigned by the Developer to any of its lenders as collateral, but may not be assigned or sold thereafter by said lender or to any other person, firm, or corporation except for lenders parent lending institution. 6. The City shall also reimburse Developer for interest costs incurred by Developer � on funds bonowed in connection with the redevelopment of the property, the undertaking of the Project and the construction of the property. SUCH REIMBURSEMENT OBLIGATION SHALL BE A LIMITED OBLIGATION OF THE CITY PAYABLE ONLY FROM TAX INCREMENT AVAILABLE FOR SUCH PURPOSE UNDER THE PROVISIONS OF THIS AGREEMENT. If, in any year during the term of this Agreement, Developer is not reimbursed " for all Interest Costs of which Developer is entitled to reimbursement as a result of an insufficient amount of Tax Increment being available in the Special Tax Allocation Fund for said year, said unreimbursed Interest Costs shall be paid from the Tax Increment deposited in the Special Tax Allocation Fund in the following year (and if necessary, in subsequent years) and the obligation to reimburse Developer for previously unreimbursed Interest Costs shall continue in effect and accrue until paid ar the term of the TIF District and receipt by the City of increment, whichever occurs i frst. Developer shall provide the Crty wrth such evidence of payment of interest costs as the City shall reasonably require to enable the City to reimburse Developer therefor as herein provided. Reimbursement of Interest Costs to Developer shall be subject to the limitations set forth in the Act and this Agreement. 7. Monies disbursed from the Special Ta.x Allocation Fund to reimburse Developer for Redevelopment Project Costs as set forth in Section 4 above shall be deemed applied in the following order: (a) First, to Interest Costs eligible for reimbursement under this Agreement, subject to the limitations contained in the Act and this Agreement; provided, however, that if in any year during the term of the Agreement the Developer is not fully reimbursed for all Interest Costs Developer has incurred which are eligible for reimbursement under the Act, Developer shall first be deemed to be reimbursed in any subsequent year for unreimbursed Interest Costs having accrued from previous years and shall then be deemed to be reimbursed for eligible Interest Costs for the then cunent year. (b) Second, to pay principal and interest obligations due on outstanding Notes, as and in the manner provided in Section 5 above. Page 9 of 29