Loading...
R-1228-3-94RESOLUTION NO. 1228-3-94(R) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, AUTHORIZING AND APPROVING A LOAN FROM THE TEXAS LEVERAGE FUND TO THE ALLEN ECONOMIC DEVELOPMENT CORPORATION, TO FUND DEBT CONSOLIDATION AND INFRASTRUCTURE IMPROVEMENTS TO THE ALLEN CENTRAL BUSINESS PARK; AUTHORIZING THE EXECUTION AND DELIVERY OF ALL NECESSARY LOAN AGREEMENTS AND OTHER RELATED INSTRUMENTS; APPROVING THE PROPOSED PROJECT IN CONCEPT AND EXPENDITURES TO BE FUNDED BY SAID LOAN; APPROVING CERTAIN RESOLUTIONS OF THE ALLEN ECONOMIC DEVELOPMENT CORPORATION; MAKING OTHER FINDINGS ANDPROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the Allen Economic Development Corporation was established by ordinance of the City Council subsequent to an election to impose and assess a one-half cent sales tax for economic development within the City of Allen; and WHEREAS, one of the purposes for which the Allen Economic Development Corporation was established is to provide for the creation of jobs in the City of Allen, Texas; and WHEREAS, the Allen Economic Development Corporation has actively recruited PHOTRONICS-Toppan Texas, Inc. to construct a facility in the Allen Central Business Park and providing approximately 140 new jobs to the Allen community; and WHEREAS, the Board of Directors of the Allen Economic Development Corporation has duly reviewed and approved infrastructure improvements to the PHOTRONICS site and refinancing of existing debt related to the Allen Central Business Park; and WHEREAS, the Texas Department of Commerce has developed the Texas Leverage Fund to assist in funding such projects; and WHEREAS, there has been presented to the City Council of the City of Allen, a loan document (Exhibit A) for their consideration, in form substantially similar to the "TDOC Loan Agreement" to be executed between the Allen Economic Development Corporation and the Texas Department of Commerce, pursuant to which the Texas Department of Commerce will lend from the Texas Leverage Fund to the Allen Economic Development Corporation an amount to be used to refinance debt of the Allen Economic Development Corporation and to make aesthetic and infrastructure improvements to the Allen Central Business Park; and WHEREAS, Section 25(f) of the Economic Development Corporation Act of 1979, Article 5190.6, Texas Revised Civil Statutes, as amended (the "Act"), requires that the governing body of the City of Allen approve the resolutions of the Allen Economic Development Corporation providing for the assumption of indebtedness no more than sixty days prior to the execution and delivery of the documents evidencing such evidence; and WHEREAS, it is deemed necessary and advisable that this resolution be adopted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS THAT: SECTION 1. There is hereby authorized and approved a loan in an amount not to exceed $2,851,842 from the Texas Leverage Fund to the Allen Economic Development Corporation for the purpose of project development in Allen, Texas. SECTION 2. The resolution of the Board of Directors of the Allen Economic Development Corporation authorizing and approving a loan from the Texas Leverage Fund and pledging sales tax money to the repayment of that loan from the Texas Leverage Fund, adopted by the Allen Economic Development Corporation on March 15, 1994, a copy of which is attached hereto as Exhibit B and made part hereof for all purposes, is hereby specifically approved. SECTION 3. The loan document attached hereto as Exhibit A has been considered and is in form substantially similar to the "TDOC Loan Agreement" to be executed between the Allen Economic Development Corporation and the Texas Department of Commerce. SECTION 4. The project and expenditures authorized and contemplated by the Allen Economic Development Corporation Board of Directors will be specified and detailed in the "TDOC Loan Agreement" are hereby in all things approved. SECTION 5. The Mayor and the City Secretary of the City of Allen and the other officers of the City of Allen are hereby authorized, jointly and severable, to execute and deliver the "TDOC Loan Agreement" and any and all other such instruments, certificates, documents, or papers necessary and advisable to carry out the intent and purposes of this resolution. SECTION 6. This resolution was approved by the City Council of the City of Allen, Collin County, Texas, on March 17, 1994, at which meeting a quorum was present and voting. SECTION 7. This resolution shall be effective from and after its date of passage. DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, ON THE 17TH DAY OF MARCH, 1994. ATTEST: J Jut Morrison, son, CMC, CITY SECRETARY Resolution No. 1228-3-94(R) Page 2 RESOLUTION NO. 1228-3-94(R) j TEXAS.DEPARTMENT OF COMMERCIE TAXABLID COMMERCIAL PAPER NOTES SERIES A LOAN. AGREEMENT between TEXAS DEPARTMENT OF COMMERCE, and Exhibit A m X(;INDI_IS'I'RI.AL DE SLOPMi NT CORPORATION] Dated as of XX, 199XX CERTAIN INDUSTRIAL 0EVI;I.OPMIJNT CORPORATION UNDERTHIS AGREEMENT HAVE BE E'N ASSIGNED TO, AND ARES 1.1 BJ IeJC'P1`0 A SIECtJRITY lNTI!REST IN FAVOR 01" '1141 '!'LXAS DEPARTMENT OF COMMI'sIZCI<;. INFORMATION )NCERNING SUC1.1 SI�CI°ltl'1'Y INTEIRI:ST MAY BE OBTAfNI,,I) F ROM 'I HE TI",XAS DEPAPTMEINT Of CC MN*jRC;1, AT 4l0 CAST 5'1'1-1 STREET, ;;ISD f I,(>ui1 . :a1.IS'I'IN. 1'I�XAti, 7 7()1. 1�("1'l;N'I'1C)N: TEXAS LLQ')"'RAGF, FUND. I -()A T AGR—ER ENT 'PHIS LOAN AGREE'JMENT made and (tiltered into as of* )LX, lyX\, by mid nc0. TEXAS DEPARTMENT OF (;(:)j,g171�1Z(;E. tan a�encv Of the 5(.ate (the rIC}111'L11ii:)1L 1, 1i1 �:` it 11011111'e111t 11mu-curial devC l()pment, fC))'jl(ll'iltl()11 (I:lle..'�[ltdtlstr'lal. 1. B) c>}llrlent l.`•�,rporAr.ion'! duly c•st.al)lished land created purtivarlt• t.o Section 4)(X7(A •r 13] of the Dow eiopltlellC Corporation Act. of I.979, Article 51.90.6. T(�xi1 Revised Civil tKtutes AunGt:xtuLl, as amended (the 'Act"l, created by or ort hplialf' of t:he City of XX, - WITNIJSSE'TH: WHEREAS, pursuant to a It1a5i.er resolution and a first strpplemelttal resolutiotl i:hcr er.G, rt;s emended, the Department has issued its Taxable Commercial Paper Notes, Series A Rale "Taxable Commercial Paper Notes"); WHIItEAS, a portion of tile oroceecis from tite issuance and saie of th.e 'Taxable f:(>"I'll 01-c 1,11 Duper `Totes are being 10alled to the Industrial Devplopment Corporation `tX [for tale Pur•pos(i of permit.tinlr the Industrial Development Corporation to relend such procc eds to the User] [or to purchase a participation interest in a loan made by [Name of Rilnkl,] (or purchasing ,in asset anti leasing such asset to the User] for the purpose of f liallcing the costs of a project within the meaning of the Act: ("the Project"); WHEItISAS, L)1i: fait}: of \,X ],as established, levied, is mllixl.tab-l.in-g acid collecting ern beh;tif of the Industrial I)evelopmerit Corporation t:he 1:Conornic. DOvelopment Sales and 1.: e Tax pursuant t:o Section 4XX lA or B] of the Act; 'NOW '1'I-IEPEIrUrtE. in consideration of the premises and the mutual covenants !:i relnitftcr Contained.. the parties herP.to cotenant, agree and 61r1d i:llentselves t1s follows: .A RTICLE 1 DEFINITIONS AND R.U�,1('()1\1STRUCTI0N Section 1.�. 1)cfiniiii>r15. In addition to the words and tcrills elsewhere defined i'1 L1115 �F')'('F111CI1L. t:he li)llowin ��ords 2nd terms as used llerein S1ia11 Have the f_nllowing mea11i11p 1,i11055 i:11C ii)ntext. O]' use clearly irldicai;H5 -mother nr diffel'er1L n1PE111111� or ini,(:nr.. "Act„ Illeans thF Ut'v(?10pille'rlt c:;or}lorltii)n Act. of 197f1, .15 amend(�d. Article :11i)U.f�. 'P('xt1s Revised c `ivil SLALMe5 annotated. 1�1'('e1111:11t `13i{Il I171?itll ti'15 Lr.�'In A_ 'eeiill'111• r'i'.11 i.I1e l.ie•partlllom ai-id 01p.ndl.lstl ial I)ov(.-1(.1pill i' I CoI'1)orat'.IU11 x111.1 %,11\' 111Oc11(,catio1?j.. It.r.rat:t(111sa11G 51.11)nI( n.)vnts 1'1.'tlr Il1irC:r' ail itlC(r1'!� {!1,_ir 1\'Il!1 t.i;c' jJi'r)\'I�er111; i:('rool i:no l)t` I1O :il':Nl'lIl_1!.:Uil 2211 "L'uslllc;s 1)rly 111c lns any day other l -hall a 5atunjay. �t 5uilci,ly :1 lc dal holiday •r :1 Cl:iv on which ballimil, Irlstltut.ions in the cities (it Nr!w 1',�ri,. ':,'w l'(,11:. of Dallas, Tees :uc au0mi'lccd (,1- 1)crmit-t.ed 1)Y it(w c)1• exCctlL)\v ()r(i(�i u! Ch(; 1'rr�sj(ietlt of the t.11ttod Stutes to clos(•. it.v lncans the (:iLv 01 (:ity ltc preser)trltivc MEtt111S any ogle of i:lle persons Lj1 L1re Lime (lcl5i}�nated t0 act011b(,half ••C this (�iLv by w-rit.t.en certificate flims}led to the Department and the Industrial Development, Corporation containing the specilllen signatures of such persons and sided on behalf of the City by ?L'(. "C0111PLr(Iller" nlealls the (::ompl.roller of Public Accounls 01' t]l(! C'ttitP. "Debt Service Coverage Patio" means the r�lt.io of (i) the sales and use tax receipts generr,t.etl I,y the levy 'slid collection of the Economic Development Stiles and l:se'1.'tlx levied by th(i (`ity for the benefit of t1le Industrial Development Cm-pol-ation, which sales :lli(1 tt"' tax 1'Cccipts shall be detei-mined lav Using t.11e lowest twelve (12) C-o11SeCUtivC liiolll.115 of such sales and use Lai: receipts of the cit lltcctl t18) months immediately prc,cedilig the date cif dete—i-mination, to GO the Scheduled maximum annual principal of and Milur,est on this Loan, plus the scheduled lllaxilnum annual principal Of crud irlterest. on any other debt ol• obligation existing 011 elle date of this Loan secured im whole ol• in pal.[. 1.)V and payable from. such Economic Development Sales and Use 'I't,x u11 a 1):lrity With t:J.lis Loan alld giving the holder thereof' all equal and 1-atable claim t•o t:lle l"Oe'etls of the Economic; Developinelit Sales and USE. Tax. in the event that an Dconolilic Duv,; lopiliellc Sales atld Use Tax has not hepii prevj(rtltily collected or has not been collect:cd for ;ll:. least (ligllteeil 0.8) Itlollths, then there shtlll be estiriat:ed by the Dupartment the l,colloinic Development Sales and Use Tax that May' have. been c:oilected Ov(r i.11at Period had such Economic Development Sales alid Use `l'ax been in place. 'Phe (%ove.l•age Ratio applicable to the loan shall be oalculated by i lie Depm.1,111(, it.. "T)ei'aujl 'Street <1(;urnal ]Carr ric ans a per a)1.nt1111 i'1 c,m i.iine floatin ' ba -c r:tt(� rl 1(-:;0ri;c:d in the Wall CO time :ls the* corporate base r:1tE of interest. plus three "Depart:relent" [I1(.nrls the 'Texas DeparC111ellt. of (1C.11111110 -Yee, IT! ,llrencv of the, Stine and any tc, 1 -he duti(,s thereof. "Depar•illlent. R'PI)1.•e.Sentnti.ve1' means ally o'lie of the DQ-1—ons at the tillle t.lc;si91MLed to :1(;(. oil behalf c)l' the Department by Nvl'ittell. certilicitte furnished to the Industrial T)avrjvu111ent COVI)OI-ation arid the Cjty colli-ailllll€{ the SnOcjrn1+I1 :;l ilattlrCS of Such 1)e1•somi :•1110 ;lcllled irrl be-llalf of the 1)e �ll•t.t11(� Polley Board of the f)i!lr:rrtnl(inr. err his desl�'nN(�,p ret by dw Chairperson of the 'E :(tnon);c D(•v('1c'r,Iltull,lild Usu T;1X n)�'r.ils (.11t1G (:el'ia'll SiICfi dllCt ll:;e Cax Int1v 101' l.11le h('110fli. (')( sl l) 111(l> ::C!'t;li (?�.� .1r.1_.11ll'l1i 'p01'C1t1Oil 11)ti(-r(•i111(r �' cr.1011 13 (1 the lt•}-},}; Civil� Dl'.('I(?(1I11(?111 t •I`P(;f:lii;t:. ...1 �',t 1��,(I, �`•.1'ii,�l r CABLE OF CONTENTS PAGE ARTICLE,1 DEFINI'T'IONS AND T;tiLES 0l,' (-',0NS'1'1WC,".rJON soct:ion ] .I. Definitions Section ]. 2. Rules of Constr.................................. L uci:ioil ................... 4 ARTICLE II SECURITY; ASSIGNMENT Section 2,1.. Security; • Assignment; Limited Obligations . . .......... . ARTICLE III REPRESENTATIONS Section 3.1, I~ i,epreseintations by the Department Section 3 .......... . . ..2. Representations by the Industrial Development 5 Corporation 7 Section 3.3. Representations by the City ..................... . . . 9 ARTICLI� IV , LOAN; PAYMENT PROVISIONS Scction 4.1. Loan of :Pc•ueeecis LI Section 4.2. Amounts Payable .......... . l_inconditional Obligations . . . . . . . . . . . . . ............. I1 11 �CCtiotl �•.¢. ` __ �'i'CPaylteills ' Section 4.5. Credits Against Payineilts 12 ................. 12 ARTICLE V EVENTS OF DEFAULT AND REMEDIES Section r5.1. Events of Default Defined12 Section 5.2. Reinedies oil Default ...... Sectiorl 5.3. No Remedy Exclusive 13 Section 5.4. Section 5.5. ...........................1.4 Agre(`mdnt to Pay A.ttorilcys' Fees and Expenses ....... Del)tIrtilient, Industrial 1.4 Develoum(mt C0>rpoi-tttion and Scction t:lie Cit �r to Give Notice uf* Default ........... I4 .5.6.t�011ditio"ns Prc,cederlf: to Lean ..... ARTICLE VI MISCELLANEOUS 5ecciotl (3.1. l�el�ortirlg .. . .. 14 , -c:r.io(1 (3.2. hicurporaLion by fi.eference ()f C(M11'-1iW11(!"t, I,ett('.1....... I 1.5 Section 6.3. De-partmem Lo Adrninisr•er die Loan ................ 1.5 Scctioa 6.4. Simultaneous Closing ........................... 1.5 Section 6.5. No Implied Waiver ..................... 16 Section 6.6. . Deparument Representative Section6,7. lndusLi irzl I7evelo Development Corporation Representative 16 16 Section 6.8. Notices , . , 16 Section 6.9. If Performance Date Not a Business Day17 ............. Section 6,10. Bindint Effect Section 6.11. ................. Severability 17 Section, 6.12. ... ..... , , , Enforeeinent of Agreements or Mortgages ............ 17 17 Section 6.13. Amendrr►ents, Changes and Modifications ............ 17 Section 6.14. Execud n in Counterparts ........................ 17 Section 6.15. Applieab! le Law 17 ................ SIGNATURES .............................................. 18 Exhibit A Description of the Project ........................... A-1 Exhibit 8 - List of Parity Debt: ............................... Exhibit C - Conunit111ent Letter ............................... C-1 f "Lvent of Default" sliall have the meazrling set Forth in Sectiozl d.l.. "Guidelines of the Department" Inearns r.he fru idelines of the Dcl)aI1:111ec1t relating to its Texas Economic Development Loan I l-ogranl as in effect oil the date hereof. "IIoldel'" nleali5 �� holder of the 'Taxable Commercial Paper Notes. "Induntr•ial Developrllelll• Col'p()raLiorl 1. e3presentative" 111('.tills anv 011e of the per•sorls at the time desigllatod to act on behalf of the Industrial Development Corporation by writterr certificate furnished to the Department and the City containing I) the sPecil11ei1 fiigllatures of such persons' and signed on behalf of i:lle Industrial eveloprner]t Corl)uratiori by its President or Vice President. "Largest Pour Year Sales Tax Decline" means a decline in the total sales tax receipts of the City calculated as follows: (HIGH - LOW) - 100 (HIGH) for the purposes of this Definition (i) "LOW' means the lowest sum receiof steles tax revenue Collected 1)y the' City for any calendar year (adjusted for changes in sales tax rates during- the four (4) year 1)eriod preceding the date of calculation, as determined frolll Ulu inust recent June 30 oi• December lie, as applicable, Ibr which sales tax data is Available, and (ii) "HIGH" shall mean the highest sum of sales tax revenue received collected for ally Calendar year (adjusted for changes in sales tax rates) during the four (4) year period preceding the date of calculation, as determined from the. zl]ost recent June 30 or December 31., as applicable, for which sales tax data is available and which occurred in a CRIelydar year preceding the calendar year in which the LOW occurred. "Loan atloll " means the loan i'rom 1 -he Departinont to Lhe Industrial Development (.�(?1'pUI'(itl()]] ]lla(le LI]1dU1' l�llls "Lorin Documents" means, collectively, this Agreement and the Note. "Note" meads the Prurrlissory Note of evert date herewith delivered pursuant to the Agreement. "Parity Debt" mealls clelJt (..Jl' Otllc'r obligations e%isring oil the date hereof secured ill wllulc or in part by and nayable fl -oil, the IJcollolnic Development Sales and Use 'Pax (�f the City un a parity with the Loan and LEM'rr19 the holder thereof' an equal and ratab)(-, cltJairrl to the proceeds of the Lcollolnic DHvelonii , it Sales and Use 'l.'tax. Per,otl" Means e11 Individual. it corporation. a partnership, an Issociat:ion, a trust. or ally Other 1?.IIt,tY Or orgal;izatioll, ir)cludirig a gov('1'l1111eilt; or political Jlludl�'I;ill11) C�1' MI itk�l'I1C.y UI' II1SL1'1111)(1 Gal1LV thereof. ('ol:cv lh(' l'()liC\ 110r11'ci Of lilt I. r t 1-31,0 Pct." ha till: meaning set t'c)l'tIl in Lhe recitals hereto and is fllrther described '.1 Exhjbi(. A 1)ercto. 12i1L1I]�T means LJII` long, Lerm �(�ner�11 r]bligatlon debt. rating assigned by a Rating i `' %I]y rofo1'ence Ill t1115 !�`�'1e('[nCl1L t0 file CaLlllg SLT'LICLUI'C Of UrIC 1ZFitjll !� it ill 1�r: 0rr:nled !„ g geIlcy include a r(4orence to the erlulvalenl. rat Ing (-)r ratings of the other Ivatmg Agencv I'�titiill; ;�ReIlc v" meal's 'Standard, & Poor'8 Corporation. Moody's Investors Scsrvlce and hitch Illvestors Service, Inc. '.State" ]Deal's tl]e State of Texas. "St>ztC Treasurer" means the Treasurer of the State. "Trustee" mCal]s the Trustee under a master resolutjon in respect to the )):Ptlrt.meilcs Taxable Commercial Paper Notes. "Underlying Loan Documents" means the Loan Agreement. of even date herewith, i:)(11 -Weer] the Industrial Deveiopm.er,t Corporation and the User and the Note 'Awreunder, 1X (the Participation Agl•eenlent of even date herewithl Between the Industrial Dc:vrllllJ[Ill?tll Corporation and [Nalllf of Railkl, the Tripartite Agreement of (well date herexvii.h among the lndustriai Dovelopment Corporation, [Name of Bankl and the tT5(�r. [and the Loan Agr•eelnellt. ()f even d�ite 11eI ewit)1 betweenNarne o Bankl ,md th(� User and the Note tl-lere.under. J "LSU" Means aii individtl£11. ti corporation. tl Partnership, of any ptller private, entity u:J!arljzed for Pt•ofit or not for profit, or a city. county, district, or any ()LheI1)O11t1Ct11 Subdiv15tor1, public entity, ()r a e11ci• of the State or federal government. veCt1C)J) -1.2. I't1.1)('.}' (if O1]til•I'Lli:I:iii17. 1'171ess rhe (mlir.ext cletll'Iv indicates to the 1';:)1'y. tIIF, 1.)11�)',`,'lJ),' 1'tlics Shall ppl\ ti) lh(. Cc717tit1't]('i.l il] Qt thi's ` � ` I i'lc (I11CIlt: Wards iJnl��)rt.in>;r Elle slnfrular numb(,r shall includp 11i(, pl-al nt.u]lher :1nd vice 111e t:able of c(]nt.ent.s. UiPt.iorl5 and headings hereln are solely for convenience l)f reference 011(N alld `1ha11 Illi rollStit-UtP ti Part of this AL -cement. nor .9hall they affect It:s 11)P..11)Jllt', or effect. • Words :;)' rile Inasculinc: pndor tiha11 be deemed: and consrrued to Include CG1'1'�'Ifl:I v (� Nvo1'Os of tllc f"Illlllltle Gild neuter genders. ai1Q %`Fords of the- ricutor (redder =.hall he dc� n7�d .:I,(1 );I�nStru(�d t.o illc)u(i(I ��orrelacivc V,")rds of the niasculine and 1r.minior (I]r1rI' JI', tills AS''1'(.!el110lll LO i),11'iICUI<ai'.�1'I,i, i �,i ('1:: ai,o refc—dices ni 1 CC.I()!:ti ul th!:; /\_ ARTICLE II SECURITY: ASSIGNMENT ;;t cLlon '._' J-. :.�(�curlLv: �ssIp11IT1enL: 1.1j111L(?Cl �)}711Jratlt�tl In order to secure the (fu( ,lncj t)11nctual (..bserw,tice, rand perforina11cC g1`the p_1y111Cni al]d all other oblil;atlorls -1 alar_ Indw;,.rjal 1)(:veloplllent.Corporlt.101) Lo elle f)(!pl,rcrtlerlr. rlc•reltnder. the Industrial JXtvcloPnlerlt. Cvr-nuracion llcrobv Pledges and assigns to rhe 1)epaart.nlent a lien on and ;(°curlLy ltltt;l'CSt 711 (a) the Economic 1)evelop111e11L Sales and I;se Tax authorized to be levl(�(1 by the voters of the City on behalf of the Industrial De'velop111?nt Corporation (,11 , - 1 `)XX to the extent necessary to Meet annually, so long a5 there are amounts due and owing under the Nate, the Debt Service Coverage I"at10 set, forth in Section �j.;0(i� hereof, also talking in -to account any Parity Debi: incurred after the date hereof 1 n accordance wi(.lt the terms hereof, but only to the extent suchL;conoinic Dev . opnlatIt Sales and Use Tax is collected, (-b) any and all prepayments, foreclosure proceeds, condenlilal,K)I1 and insurance awards, and any other money to which the Industrial 1)evelopmeni, Corporation is entitled pursuant to the Underlying Loan Documents, if <1ny, (c) all of the Industrial Deveiop,11ent Colpo.rzt.ion's right., title, and interest to a):e c)aliln for, collect, receive, and i ec:eipt for any lotitls, revenues, receipts, issui4s, and ;(rofits, alit' uther sums of money payable or receiv�ible by Ole Industrial Development Col•poratioil udder the Underlying -Loan Documents, if ally, or for the enforcement thereof, and to do any and all things which the Industrial Deveiopment Corporation is 01, ulny beconle entitled to do under the Underlying Loran Documents, if any, and I'd) ally and all Security heretofore or hereafter granted or )geld for the payment of the Note. XX[Add acknowledgements elf ,pecific security agreements, instruments, etc.] The lien rind Sr_-ctli•1Ly interest pledged and assigned pursuant to this Section 2.1 shall ill effc+ct SO krig a there ::ire an}� :.I11Cllli]i5 due and owing under the Note. The obligati(:,,1�i of the IndusLriall Development Corporation are st3¢cl a) limited o"`14 zitions hercunder and neither -,lie Note nor ally instrument. rabited to this x%KI'veluerlt lllay Adve a holder a right to deilland payment from Lax proceeds in exces9 j)f t.11csc� ccl)lectcd fl-olll tile ECollolm(. Developllleilt Sales and 1'Se .-Ix irrlp()se(l by - (CTJ i(11 'l'� l or 11-11 ()t tile 1�ct• (111 CI jll(' t lC1 C1C1'. ARTICLE Ill REPRESI: NTATI0NS �F(%1:1Ot1 . J . 1�CD1'P3f 111 1tJ(7j1S by I. Department. The, 1_)eparl'illent, I'Cpresents and �\'r"1, rani•." ii5 follows; (a) Th(, Depal'tlltunt i5 all agon(:y r.,f the State of T(�xas, an() has tale legal i)uwl�r and aut-horit." to entel' Into gllci UOPei- orin the agreeniellt5 and covenants ontits !)circ cnnrtlii:ed In 11:i: -s Agreelllelll, al:d )las duly 3Lit101'1zC(l l,llt E,:;ecutloll, delivery and ,)c rlc,r711c111Ce f Lill:• f��t'('E'Ille?11 alld h.ls duly approved this ���'1'l'f.•1llCtll :cc (t-ll1( !i i11;(J Ci : 1.• L111 :� j' , .'i:- J `.1'�11C:1'1V tyle.-: 1tiJ11 MAI it'll .I .. d Ci li..11lll it U' , .l 1; ll'l.V, '1 E' t 1' (•,.,I: :,11r:;lCi"'•� 1�'i ;.. r•, ..- .jn; ..-. ; ..tai tl r,ll!' .-L with 1 ill Departlllent is (i parte or ;Illy existing law, .Idmilli c:strative regulation, court. order or nnAr.Ilt decree to whiz(( the Ta< partment is ,subject, or by which It or t1I1v of its property is bound. !c) 'hhere 1S 110 :1C00�11, suit, proceeding, 111(lull•V Or Inve.Stlgarion, at law or in egl.lity, before or by ,i11y cOul•t, pul)lic board or body, pending or cllrear.ened against Or affeci;ing the Depa' "taunt or any 1f its officers. nor to the best knowledge' o the 1)(31MM,111e11L is (:here ;cny b Isis therefor, %'herein an unfavorable (i(�cisioll, ruling or ,�gl finding would nlat.ert. or* that would uld u�lv(�rsely trffect the transactions contemplatcid by this adversely affect, in any way, the validity or enforcetibility of this Agreerllerlt or any Other agTee111eI1t or instrument to which the llepartnlPnt is a party and that is to be used or contelllplated for use in the consummation of the transactions conte[ plated llerdby. (d) No further authorizations, consents or approvals of governmental bodies or agencies circ required in connection with the execution and delivery by the Departmtem; of this ,kgr(tenlent; nr in connection with the carrying out by the ;department of its obligations under this Agreement. , (e) This Agreemerli; is a legally valid and binding obligation of the Department amforceable against the Department in accordaIlce with Its terms. (f) There. is 110 pending or, to the knowledge of the undersigned official of the De11a1 talent, i:l1l'eaLc n( - A action Or proceeding before any court, governmental agency i)1' arbitrator citUr (i) i;0 1'CSLr:1111 Or enjOttl t}).P. 1Ssuance or delivery of the T,-ixahle (;()IllmI,(. ial Paper Notes, (ii). ill any way contesting or affecting the Authority for the Taxable Collime1-cial Paper Motes or the loan of the proceeds thereof "to 1;11(1 Industrial l)evelopment. COrporatiOtl ()I' the validity of this Aup—eemelit or (13.0 in any way contesting the FXistc IIc(j 01' pOwel•s of the Department with respect to matters relating to this Agreulnent. tgj Thr. I)ep�l'tll"t('1",i, h«5 r�t1l�7 approved the icnding of funds t.o tale 1 ndustri,Ii L)r_ vclul)rru�llt. (-o1'i)oratiOn; r10 ()th(!r �illthorizatlOn oI, approval or other act1oll by, and no notice to or filing with, any gOvernmental 0.110101'i'tV or regulatory body is i egtlired as a con dit.iuli to the performance by the Department of its c)hligat:ions tinder i his A.:P•cemeni.. (h) `('herr i* no default of 1;11e Department in the paynlellt of the principal of or interest ()rl ally of its lndcbt:edness for borrowed Ir;oney ar under uny mstrument (:,1. instruments yr a,N,'TeC11)eI1tS under and subject to which miv indebtedness for borrowed money ha l,u(in incurred Which does or could affect the validity and enf'Orc:(jal)ilit�r of the Lean liocLlnle.nLS or the t1k>ility of the Departlticnt to pel"fnl m its �bllgattar,s thereunder. lands (�ve11t h;is occul'I'ed and 1 cont111 im, under the nrovisions orally such itlStrl,tlleilt• or ;1(rl'CCt11t nL which or. v'!th I'lle I;Ipse of [tile or the ;giving c,f• nntice. Or bnt.}1, %vould eonsl.itut•c; such defi-MIr.. 1'11,, I) p(ir: ,cent. hits 1101. a:=sil;ncd ur }:,lc,_lgud i,nd .,Ii nOt ;I siort ur ;'led., it.:� illi[-rr;�.1. 1u lh,� 1��g)'ar'1tti�nt f•,r atl�' j1u)'pns�� <-,l:'1('r' tt;<in ,n �.Nc,irr• lho Taxable .i t h, 'I1C LeWLJ' of Credit alld RW1111bursement 1�geertt'apr Notes cinportaon of the 1a:a)lc (in)mercialtuc the onlc notes or other ohligatlorls ni the Deparr.111ent In any mann(:t' payzf�l, ft',illl Llle I'CVCIlIlC rc, be: de1.ivn(I f,rnl othis A,ginl -eeent, and except fol, Llle r,(\Elle lal I':,ppr Notand tholgllt(her n)lt•iiol)s, 1V C1Ut;s O1i;l)o ' have l,cen or \vlll be Issued i)n 1•110 basis (it' tlil� .�i I'eC lllellr Uther than note" i, l' other r.Oh�iil•lUnS Issued t0 ['CfLlnrl 01' ;'( lmallc(' "Lltst:lndin- 110tes Or ')1J11�EIL1Url;;. W The Depart111E:111, is nor, in defflult under anv of the provisions of the !aws of 1.11e 'Stn(.e. where any such default would affect the Issuance, validity of rllforce<Ibilit:y of, the'1'rlKable Conimercittl Paper Ncii;c�s or the transactlol)5 c011templated i))' t•h1S Agrec:111e11t.. Section pe )1.0scrltatiotls I , the Illdustl i li Devel0p111elii Lc„ p(,t atiOrl. The Industrial J.�evelopl11el1t Corporation represents, warrants and covenants tis follows: !zl) The Indusr1-i.-1l Dc,v(:lonm.enr. (.;ornorr3r.iotl i= a nonprofit industrial dPI of t'l 111t,1)L c:urnot at:ion, \{'ir.11in rhe meaning Of' Section OCK [A or BI Of the Act, has ..111 of the rights, 1)0wel-5, privileges, authority and funcrions given by the general laws Of elle .State t:O tlonProfiL corporations incorporated under the 'Texas Non -Profit Corporation Act,, as,�met)ded iAlticle +;9G-L.U1 cit. seq., Vernon's'l`(jxas GivilSt:atutes), Oxccpt as othc:rwl:;e provided in Section 23(*a) of the Act. and is authorized by the Act to ('xecute, and to umer into this Agreement and to undertake the, trar)5Elc eonti:Illplated herriu alld to carry our. its Obligations hereunder. tioIiS th) The I17dustri,11 Dev(:loprnenr. COrnorar.ion shall 1101; havP t:he power to )U1% or ()perat.e the Pr()lect as ti hLlsi jneSS as Other than, lessor, seller, ct,l tender or )U1'till3nt LU l•hP ri:yuirenlents of any trust agreement ecuring a crodit t;i£111SFiCt1OI1. Accordingly, Qik, lessee, pul ch�Iser, 0r horrower pul sutlnt to any lease, �)1j(' of loan ::,grecmc�llr. rclatlllg i(i thc� Project shall he considered to 1)e the Owner 0f't11e Project: for 110 ptu•po;es of th,) applicat.ioll Of an ., kid v aior,:.nl, s�ljes. a.ld use til-ViS or any other 11111)();ell In, t:llo ,tit:cltC 1:11' ill)\' !)O1'.t•tCill ;�u[)cltvj51n11 01 1•}1(? Sl:ll:e. (c) The Industrial DevNlLipnlerlt Corporar.toiI_1',13 all reclulsite Power, :lut.livrity :Ind 1eTai rilrht t:0 (Axecut.e and deliver the 1_.oar1 Documem5 ,Ind all 0i:11cr i11;it:YUI11P,n1.5 and ducunlents 1.0 he executed and dchvered l)v the Industrial Dovelopnlent C%orporacic)n }QUI' ll�-jilt tl7f'I'CtO, to perform and observe the provisions thereof and to c;1rr.Y c,ut the t1'F1l16i_iUioI15 contemplated 1)y t:lle Loan Documents. ,111 c cirnurrlte ,Ictfon (711 the? P`11't Of ',he h)dustr'101 Devciopmt'llt CUrpUratl,,,l \Vntc11 15 1'(?flLlll'(?(3 fUl' t11C i'.:iC:lLltl(711, delivr;'\ 1)(?r'for"I'[lice ami (l)sel'vaT1cp 1)>, rile !:t Cur )urar.ion c,f't.1 dustrial 1)e.velop111e11t i (c Lunn Documents has been duly £lutllorizcd. and effectively taken, and '7uch execion. deli\'Prv, performanc(? rind obser,vnt-mil 5v t:':r? industl'itll Dr.:veloPlllellt ut CoI'UOrfll•ioll do r,t_;r COI'ILl'iY\'l'fl� ;[Pp(LCaU1F' law or fin)' cOil:•raCi.l,ta 1 rostr1ct1011 f)Ill(l Ulllg Oil „r affectlll� 1.11(? cllQ-Stri-ml DowFioprllerlt t%nl'pO1':ll0rl rr(,�ti,nr• 'd) d '.'lie illi(:,.1'in! I)(vc lc mgr )]'(,•.. 1 •. .. 1 .!)(• .)!'11�t!'1111L'ii; '1.,t` .. t , the 11erili'1. ;:,, r,t.li 1I n .:� ,':'r'• r ..'1P ( 105, Or 1;t r•( 1(7;r1Ol1 l0 dic performance by Lim lndllstrlal1�('�'('•1()p111e11L (.;orporllt'iOil of its 0blig(U1 )1113 mideC �111v of the Loan 1'�<lcumellts. (c') This nf,rme tilenL ;md elle NOW are legally- v,llid and binding n�)111!tiliGllS �,( lhe, hidllsLrial I CV( lnt)111( I1C l corporation C'nforcv;ible ::r� i� inst the illllltit.l'l�il l_ v%1(!IUpnje11C t.�(1)'1)Q)'lltl(l11 Ill ac( -01 -dance \4'1111 01011' 1•QSUC'C t -IV(' (F) 'riwi—e is 110 default of' t:)lc Industrial Development C-oruoration in the p1ymcllt Of the principal of or lntel-est, oil a11y of its indebtedness for borrowed nlonev or tinder any i11ArunleJ.lt. or itlstrulnents or agree tllents tinder and subject to which alit' indebtedness for borrowed money has been incurred wllicll does or could affect, 1,11e validity and enforceability e)f the Loan Documents or the ability of the f ndu�;t•rial Developinellt; c;orporat•ion tt.: perform icy obligations thereunder, and no event 1)as ()CCUI rcd ati(i is continuing under Uic provisions of any such instrument or gag-repment Which. collstlt;uteti or, with the lapse of time or the giving of notice, or both, Would constitute such a default. (l;) ThCrc is no pelidIlIQ Or. ro the knowledge of the undt'•rsi�7jed officers the Industrial IDevelopIllerlt; (--,orporati011• th1'catened action or proceeding t)efore any court:, governmental agulicy or arbitrator Wto restrain or enjoin the 15suance or delivery or the Note or the collection of my Economic Development Sales �,lnd t se Tax revenue; pledged t•o pay for the Notre, (ii) in any way contesting or .iff*ecting the authc)rity fur the issuance of the Not(c or the validity of the Loan Doctinients, or (iii) ill ilr)y "t -ti' c0l)WSL-1119 the existence or powers of the Industrial D('yeIODinent Corporation. (1i) Ill connection with the atll.horization, issuance and deliv,e-ry of the Nota, the Industrial Development C01POI—ALion has complied with all proVi,sic>ns of the laws of i.h(- State, irlclliding the Act. (i) The Indusixi.11 1)2v'::li)nmc�nr. t.:orpor�ltican has 11ol. :lssiplecl or :: JCC11;T(?Cl ;111(1 "viii 110l :1s;j11;I1 c)1 nledgc ll 11)t,('r('5t 111 this A1,'7'(?(,'m(mt for ;ill`' purpose" 1.11?1ll 1-o :secure 1 Cit; NULP. (j) The lndustri�11 Deve1Upilleilt Corporation is no'v. in def;Itllt under arty dhe provisions of the laws (.)f' the `�t<1Li�. cyllere ally such default �tiouid affect the u,eiii . valitlitY cit c�nfbreeal)i.liry of the l� ote or the transaction colltemplawd uy this ��grrr�111C'•tll•. •' (k) The Project arid the costs thereof are authorized bt' Section 41X (A Jr 131 of the Act. and the Protect is «ltllin 11(� tatlidelitles of the Depart.tncn:. (1) l --poll ITC( 1Ipt of the procc.- ds of the Economic Devpdop,llenr Sales Tax Unposed under 'Sectioll l\. lA lir 13J (if the Act from t.ho City the lillatltill'1:51 l.)f?l'f?litUlll(?IlL t,Il)'tjC,1 i1t1U11 wtil d-llvur :iuch Pl-()cP(!dS to pity till_' Loan directly, U ill(' t::�tellt• .:t1Cfl I)roccCd:> ,,1't' 1)'(C`'i•ij It; t'Clll'(' i.11('. 1",(7111). :11i tlll'(?Cl"'d 1w 1he fill) i'he 111ciust.rial Devolopm(mint Corporation will not incur additional t.• Debt, tiubst,yuunt tothe date lrc,reof' unless (1) it 'S'ItiSfics tale Debt Service liaii<, 12(p) hereof at t:he time such clPht. 1s incurred, !.airing into zccr,unt such Parity Debt, and 00 t11e Clty has not exuerienced a Four Year dale,; " ` 1 �Lx Decline tri' ulore than 104-r,. t11? The Not:c _oast"it.utc5 the only obligat.lon tit' Lhe Industrial 1)e� e lrrptt)ent" C"•orl;c,rl,Liun l]:lyable On a parity 1'1-()Illt:he revenues to he derived from this � ret�mcnt Qx0opc for the Parit"v Debt set: forth on Exhibit 13 hereto. (o) The executioll and clulivury of the. documents Contemplated 1C1 hereunder do 1t violate any J)rovision of anyinstrument or agreement to which the Industrial Dc velol)illonr. Corporation is a party or by which ii: is 1)ound. (1)1 The Dent Service Coverage Ratio of the Jrldustrial Development Corporation iS 110 less than -ts of the time of ('losing of this i.ra.nsaction. i(1) The Industrial DevrJt>pI11c I1t CorporJition will Vivo the Department :=%0* days prior vv) t.t.cr1 notice in the event that it pledges the I-conornic Development Sales and Use 'J'a.�c "'Ith respect to any Ptlrit}, Debt. Section ._',.3. I,ep)usentatiol)s LY-0—leCity. The Citv represents, %warrants, and Covenants as follows: (a) T1)r 1111111X:ipal k orpuratiun duly created and c�xistin�r under the lag's of the 'State anal is authorized to execute this Agreement: and to make the 1'('pl'PSP.J11"ttt%1o1]5 Fi)lCl warrallLies contaiIl ed h.er'elll. t (b) The City hiss all requisite power• authority and legal right: to make '.he rc:nrt��t:ltt.ations and warranties In Lhis Agreement and all other inst:rul11ents and t:GCLU]]r )jL� 6t1 130 P`ccLltetJ and dolivered by tale Citpursuam thCret:cr, 10 perform and �)bsol'yt' 1.1:tC pl'C)� IS1UnS 1.11t?1'Cof i111d to cilrry out 1 -he, transactions contelllplated by Ole Loral] 1)ocutnents. All corporate action on the part of the CW—which is rPqu)reci for the execution, do li.vi:r.v, el farnttlllce and observance i.)y the Industrial Development Corporation of' the. Loan Docurtletlts I,, -Is peen duly authorized trod effectivoly taken. (c) 'ne City has duly approved Sections 3.3, 5.1(b), 5.1(c) and 5.5 hert,of Emu such provisions of this Agl•eelnent when delivered will he Al legally valid and l;inding. t_rl,ligation of the Cit -,Y onfor'ccahlo against the City in accordance with its terms. (d) there is no default of the City in the payment of the prirlcipal of t?1' 111t(?1'C=t. 011 AM, :1f its 111ciehtPdness fol' borroNved money or under P711}' 111Ct.1'Llrlleilt Or ;n;t.rumc t:ts or :t- umencs udder and subject to wilted anv lndehtocim-is for borrowed 111011(•v hit -5 1)(Ie►1 irtcurrct.l which does o)• could affect. [Ile force�thility cif 11115 .'�1,►'(`�!:it�111. tit 1;1t� 1,111111ty of tho (_.11:`,' lc, perfirn-! its +ll)11P_.1'_1!r11F tilt -1'('1111U('!'. :111rI n0 �•�:•:it 1)�tg ,.,,:rU1'1't°t1 �t!i,:1 !; r: t)Il[1111.i111( 11!7cIC I' 111C' r`;''"'•'1S1r)!1�h '1"�' Sll(:1 111.;L1'Ulll(?ill of %v[till t-h(� !,Inst' rat C,:n,:, (,!- t -h,, y!'. !), nl !lul!C(', Or both C, 1:tttc• tt ! lofau!L W ko) There is 11() pr,ndillg or. to the knowledge of tllc l.lndersigtled �lfficials of the City, threatened act'ioll of proceeding before iinv court, hovhrr]nlelltal agency rJr �u bil.rat:e�r ti) tc, rc st.r lin Or erlioin I.11e c�pilectiun of the J�conottltc Development S<�les olid Use `I.`� pcllsuanl, 1.0 Section �1XX 1A or l3] of the �1ci;, Cr t�I) in .lay way contesting or �affee.t.illt; the attt.hu"ILy for Ole issuance c)I the 10- A t. the tali a of the Loan 1�OC1I111eI1L5, l.h,' ll'vv of tale l�Collolmc I)evrlopment S:lies and t_:. e Fax ur In ally IVLIV contesting 011 cxistplice or powers of t.11e city. (0 Tho Cli;y is not in default, under arty of the provisions of the laws e>f the State, whFru till- such default would Affect the transactions contemplated by this Ap-eement. (g) The City htjs duly vuteci upon and approved, and, from and after the date hereof, will levy, maintain and collect the I�conomic Development Sales rind Use Tax pursuant to SectloIl 4XX LA or 13] of the Act for the purpose of paying and providing security for the payment, of principal of, interest on and other costs of the Loan made hereunder. The City will not reduce the rate of or decrease the duration ;)f such Tax If -tile I-u5t,lt thereof would be it violation of SectloIl ;3.1(i) 11cr1eof, also talclli. illt0 account, till), Purity Debt incurred after the date hereof in accordance with i,hc� terms hereof, but wily to the extent such Economic Development ,Sales and rise `Pax in collected. (11) Upon the receipt of the proceeds of the Economic Development Sales and Us(' Tax imposed under Section. 4.XX [A or I3] of the Act from the Comptroller, Corporation. 1,11F City shall deliver such proceeds to the lndust;l'ial Developlllent (i) The De1;t, Service Coverage Ratio of t}le Jndustrial !nevelopment Corportltioll is nu less than as of the tulle Of c10S)ng of* this transaction. As of the date hereof, t.l1e]ung-terns t;erlertll obligation rating, as determined by Mood-""; Investors Service. is at: least. Baa. or all equivalent rating as determined by any 'r,l]eI' Ilationally 1•C:cO,mzod nitltlh (j) Thi, City 1.1a5 levied the Economic Develcrl)llient ,Sales and Use Tax fur the benefit of the Industrial Developlllent Corporation either generally or for the :,peci]c purpose Of L110 t:railsacLions contemplated hereby and After such Tax was authorized by a lllajorit,y of the (luillfied voters of the City voting at an (-,lection called And held for that- I)til-Pose'lot 1(;," diad thirty (.'Jo) days from the (late hcretlf. Such `I' 1x S tn]nosed on th(, rc ceipcs from ',he sate at rc,tail of taxable items within t:hc- -ity tit Lh(- rate approved spy Lhu vor.ers. Tile rage is equal to XX percent (Xcl a). The combined rate. of all sales ane} usF t:Lxes, irlcludin. the Economic Dove iopment Sales <lnd Ilse Tax Inde'- s( ctiun 4XX [A or 13) of the tact.. imposed by the Cit}'- and est her political ubdl� inir�Ils of thts state; havitlr; tt rrI ol-v in the City docs not oxceed percent. (k) 1'ht (:`.it has nor experienced a 1' our Yr--ar ah -s Tmx Decline u1' Inure l l]tll: 1 nor. A Mac, c, IV I.JOAN. PAYMJ NT PROVISIONS Sect,lon 4.1. L()an of PI•c)ceeds. The DCsmirtment ;(Tees. Ul)oil 1.110 L01'IT15 and c:nn(li6011s cc,nt:tiued in this Afp-eelTletlt, Lo lent XX llc-,ll;lr's `, I ),�vc Ic,l)mc�nt (_-:(,r pC,1• t lun w � X) 1.0 1.110 lndustl•ia) hick I'eP1'CSCr1LS a PorLlon (,: t 110 t)roceeds rec�lved by the l�c,ptiri meat IrrJ111 Lhe tie car' the 'T ux,u�le Lu111111ercl(il 1'(cper i� oLes. The loan shall 1Je :n;lde ],y depositing L1le I�r-ucPeds Ofthe Taxable Collinlercial Paper Notes into Che X.X AccoLrtlt at XX. [Name of 13ailltl XXIwire 'I'rllrlsfer Instructions] specified by the I r)dustrial Doveloplllent Corporation. Such proceeds shell be disbursed to or on behalf 0'" the Irlclustrial Development Corpor.ltioll (as provided in the c•ommiLmont letter oi'the I�r11HI'l•IIlellt, dated : X, 19XX), The industrial Development Corporation's obligation Lu repay tale loan Shall be evidenced by the Note. Section 4.2. Amounts Payable. The Industrial Dovelopment Corporation hereby llfn'ees to pliy the Note and repay the loaIl by making the following paylllellts: (a) Unless otherwise khrected by the Depllrrment in Nvl•i.t:illg, the lndustrial Development Corporation Ghall pay or ciluse to be paid to the `Trustee in nnmeciiatcly �ivccilat)le funds for the account of tile Department held by the State Treasurer on nr be fore: arty date that any pt1y111ent of interest, principal and any other amount that is required to be mode in respect of the Note, until elle principal, interest and any of;}ler anlUUILL on. the Note shall have been ful!y paid or provision for the i-iaNment thereof shall have been made. U is underst-ood and agreed that; the Note and all payments payable by the Industrial Development (Dorporat:ion hereunder are assigned by the Department to the Trustee for the benefit of the Holders and the Bank. The Industrial 15',�vejopnleilt (_t.ol por atiorl co11se11L5 t•u such -ISSIgnment.. The Dep,,lrtment. hereby directs the Ir)clLlstrial D0VQluP)11CllL C 01•pO1.1Ition and Ole, ln(iustriiil Development, Corporation ]lcreb.v- agrees to p,-ly ti, t.ile Trustee at the principal col-pol':ite L; ust office o1, Lhe'. `Trustee .i: IM71)C:r �)Lti a r.V,11.)Ie l',\' OW 1-I1dUSL.1.1i11 l)l'!t',oj()nlll(?llt'. t.'ornor•tlti()ll PU1'tili::lllt: to ) 1;1)e Note rtn(t Olis slll�sccr.ion Jn the rverrt. Ole Industrial Deve]opnlent Corporat.iorl shah fail to make ..Illy c)1' the: Pilyiuc nts rc quired In this Oect:ion '1.2, the item or installment ,3o in default :l -tall Dear irlt.e.re:;L at the Default RAte and continue as an obligation of the Industrial Development Coo-poi-,tt•iun unr.il the artlottr,t• in default shall 1)<:ve been fully paid. (h) Frurn and Ifter elle d(iclaration of an Event of Default liereunder, lilt 1ndllsr•r1a1 Dcvrloptnent C_ornorar.ion till}ill Pay fi-Om Sources pledged :is security licr•eunder and may p(jv froill Other funds lovalk, :IvllilablP therefor the r(-1tion1Ib1P fees ,rtd c xl)r1:til-, c,[' t Departnlertt. and 1t.s CoUT)sQ], and all ,Lher ;lnlount. which mrl� lie pa.vable 1-o t.l)c and i.ts counsNl tlnd(:r l..� :1ij7'r�emenr., r.uch fees and ::pensa ti, he paid wlt('11 due and p:avablc! I)v Lhe hiclusti .- l Di-velonrl1VW. (:01-pol-rl. o 1;rCCll,/ tc, Ole ))C;iit]'ll,lt nl }111c1 Its coullsoi 1,01' Lmcil' ,i-CCUlilll` ��C('11,11 •i , hI](_tIl(.IlLlt11;1) (-)1))I�''i�!n ti ('}) Ii - 1 l))C II1dL1Sl •131 '\'•I -I)1,1,_.._ ( a�__.l�_. 1. ,;1�_. Inll 0 . ,-;r,it,i,l, .. 11:,,1:•,, ;�. ,t1:11)r•�I1 � ','r• •, 1 :,1) A)ai, 1,0 ;lJaUIULP alld Ul10011d1tional, The 111du:31.1-lal Devolopnj(`-Ilt%t�01'pOrat1011 shall I)1ly 911 such lnlounts \vit•11out, abatement, dimillut.ioll or dedumon twilether lnr Cases or otherwise) t'i�s1'dlecA (1f any (•<1ust� or circum>t:9ncc \\-11&LSOCv(!r including, \\"IG11nUt llulit Minn, any tiefensP. t. off. 1 1Cc,ul)rrlent, nr counterclaim 1.;1at 111e Industa'lal Development urpor,ll.li 11 111:1v Ilaw! 01, ,t sOrG _t�rltn:;t. t,lr' 1)('r1 IrtallCnC. t1lt, Trustee or am, other I`11e oblignLlolls of Lhc, lticlusr•rlfll lilnit:ed ol,lDi;velopmellt. Corporation hereundc,r are special igations tlturc;of, rind neither Clic Note 01- anv instrument r(�iated to this X1,'1 eP111t I1( may give a holder a 1.lgllt to demand pav111ent from tax proceeds In excess of those collected frons t•lle Economic Development Sales and Use Tax Imposed by Section CU [A or 131 of the Act and pledged h(,reunder. Section 4.4. Y rc:oavtllelits. Tyle Industria) Development Corporation 111av prepay all or any Part of the amounts uire� re q ,� to be paid by it Lllldcr Section 4.2 and shall use the ),1'uceeds of colldemnati.on. awards, foreclosure Proceeds, hisurance 1myments or ut.her 1/1011eys rl(,l. reirl.vesLed in the collateral to) preta(ly Ua1d ullPrtnciPal amounts required to i)c dcr this �1nn•Pemcnt:. • Section 4.5. Credits Against ..Pjl3nljents. To the extent: that princip,rl of or Interest: on (,r anv other amount on the. Note shrill be. paid, there shall 1)e credited <�grllnsr. paytllcnts required by Section 4. 2, an <rnlount equal to the principal of or interest. on the Note so paid, 'If the J)rillcipal of and interest on or any other atnoullt on the Note shall have been paid sufficiently tl at, pa3rment of the Note shall have occurred ill accordflllee with this Af,*1-eerllent, then the obligations of the Industrial so Devt)(JI)Inent. Corporation pursuant Lc: Section X1.2, ipfacto, shall be deeme(i to have )c't;tl paid in full, and (Am J."dUstr)91 Developl-llellt Corporation's oblivntlons udder Section 4.2 and this Ag1'eelllellt shall :)c' dischrlrged. -' ARTICLE, \% I; (d) 1110 1ndu,Lrial Deveioprncnt (_'orporrltion ::hall (i) apply for or r�)nsenL t() thenp�,oinl.11)i 111. of 01 Ll<C taking of t)OSse55ion by h1 1'eceiver, Custodian ,1, 101" .,cyue51.r, Uor, I muse. liquidator OI' s hilar of i ibAd ()f Me Industrial Dovciopi tori. C(-)rP(-)'aLi0t, of Al of it slll)ManlAal part of ms prnpprtn (11) adIniL in WTItinK 1L:: mal" da; , .or be "neraih, unable. LO piny ILS debts as suc!1 (Jel)t.s become. due, It!) n11k�' (i (tl�ral :,ssif,7iimnl. fur Lhe Uenmlr c l 1tS CI't,U1L(l1'ti. (1V1 ('O111111enCe cl c)luntar� I'(tsi< un(iur We F doral bank)-rlutcy (.,ode tas now or hereafter )ll effect), (y) Cile a pet)tion meeking w take advallt.age of any other federal or state 111w relating to !):llllcruptcy, illsuiv(-llc'y, reorganization arrangemenr., winding -tip or composition. or acijuti(.lnent of debts, IN f:.lil to controvert in a timely or appropriate manner, or icquicsce i)1 %%'I-ILJ ng t.0 �1ny petition .sled against the Industrial Development C >i polli'•ion in 111 111VU1L1I1L111'j` case u;:lder said Federal i3alllcruptcy (_;ode, or (vii) take M' cr)1'pora(.e actio). for the purpose of effecting any of t11e foregoing; (e) A proceeding or case shall be commenced, without th.e application or consent of the industrial Development Corporation, in any court of competent jurisdiction. seeking -:i) t:lle liquidation, reorganization, arrangement, dissoltltioll, ;hiding -L11; (-,r composit.iun or ildjtlstment of debts of the industrial DFv(,1op711e11t (.'orporati.on. ;iii tile ilnpointnlellt of a trustee, receiver, custodian. assignee, scquestr•at:or, liquidator of sin.ilar official of the Industrial Development. Corporation ur of all or ally substantial. part of its Assets, or (iii) similar relief in respect of the Industrial Devclopn1e11C Corporation under all law relrlt.il.g to bankruptcy, insolvency, 1'ec)1' 'allizatlon, arraigeiiient,, winding -up or composition or adjustment. of debts and such proceeding or case shrill. continue undismissed, or an order, judgment or decree ill)provillg or ordering any of the foregoing Shall be entered and continue unstayed and in effect, for a period of c)() days from the commencement of such proceeding or case or nho date of such oriil: r. judynent or decree, or all order for relies' against the Industrial Development Cor)')„ratiun shall be entered in all involuntary case undct-,,.said Federal Bankruptcy Code: (f) With 1'P51)et;t. to r.ny Parir.y Debt. an QVe))t• of default: under the :h8tr:.:ment. g•1vhli', rji,ll iO �:ucil 1'arlt:v Debt. WC1,1011 5.2. Itcmedles i n Del u v ' Upon the occul'1'C.I1ce )U1 an Evum of Default under this Agreement.. the Department, it's successors and assigns, May take any one (')I. 1110re o;' 1:110 ft)lloWing remedial ste-ps: (U) By writ.tell 11oLic(-! (IU -Clare all payments hereunder inimediaLCly due ;111d payable. ""'herelipull the sallle shell b0conle immediately clue alld 1)aya1)fC witl101it : re.,5cnt- lelll., (1c111Find. i)rutest• or any of lel' notice what-soever, inctuding any notice of ult.entlOn Lo acce](Jr11 e or -Illy noLice of acceleration• all of which are hereby expressly waived fn' rile lrldusl.rial Developmen-, C(-)rporat.ion. "'Wever other =001 at law or in ec lAy ear r]C -0--3i1ry or desirable to t"Icct. tile rtmounrs payable• pursuant hereto t.htl y )1 ndue� and pe]'If�I'illAn(:e 2uld observance, of a!1V )11^_itill)11. ;Tr�llli'I:1. Iii W)l-1'?1 aiv Qj i}1l'. .ill.'-ISC1'ial Mmlopment Anon ni )Il :der lll� :� reenlcnt. i:l :,;e mforcrinl•I1( :x t}h)' :"omedws nr(It;l' M in An :;,•r_tPat 52. thy' ;jl) rllm I'XC), .'7 ni (•;�I�i,' :„1.!li. 'ii %•.'ll )lit Ij1111Latioll. legal, ClccOullt.ing mid advertising fees and expenses, as additionai anloullts 17avfll)1<' by l.i7e I1ldust1.lal DevciopnicnI, Corpo-li'1t1on Lhell due and n\vinl;. ,�hctlun 0.3. No Reme(IvIixCILi51v('• No remedy llere)n cr)nferred u Poll or i' `tiQl'Nr_'C1 tC, l lle� 1�t:1);.trllll( Ilt l 177L(?Ildc-d to he S' <C1l1Sl\'f Ill idly w her:1v'11jill)le remedy 1' f'1'171CC11e5. 1)1_(L (",(:Ii rind every su,"ll 1'('lI1C(i\' til),ltl 1)(? Cul' 1L11aL]\'(` x11)11 s17t111 1)e 111 ;1dd)i.lon to ('vC1'\' ,/Lill',' re'mepy gly(?11 Under t -n15 A9:re(-lm('.nt or nuw ur ilereal•L(�1' existlllI +1L 1.1\x' or 117 equity o)• by Sultute. No delay n1' 011115S1on LU eXel'C1Se any right r �� ght or power r(C:crowe u r -; an Tvellt. ()f Default under Lills Agreerllellt shall Impair any such right 1)r power pt' shall 1:,,, cl„15t"lled 1.o he a waiver Lhereof, but anv such right kind power )nay 1)c exFrciscd f'rnlll t.irne to timP. and as oft:erl as may be deemed expedi.ellt, Section 5.4. LL& eemenL to P:ly Attorllevs' Tees aIld Expenses. tlpoil the occtli'rclice of till I✓velli• of' Default under this Agreement, in the absence of t•Ile i'ault of t:he Departan(I.It,, if the Departluent employs attorneys or incurs other expenses for the collect:ian of a111uuIltS payable llereundPr or for rile enforcement; of the performance or �1?ser� ince f7f tiny cov(;1ianL5 Ul' tlhTl'e(' 11e11t:5 oil the part of the Industrial Development ( `<�rpvration ilcrcin contained. whc,th(,r or not• suit is commenced, I -Ile Industrial De-velopm(,111. Corporation clgrrees Lll.ilt It will oil demaIld therefor pay to the Department of ally conibirlatioll thereof, as the case may be, the reasonable fees of such attorneys and such other 1(,asuilal.)le expenses .o incurred by the Department. Section 5.5. Dep_ gr•Llllellt, I11dust.rial Development, Corporation and the City to i_rive Notice of Deffitilt. The Department.. the Industrial Development Corporation and the City Severally covellant that. they will, at their own respective expense, promptly 7ve to Bach f�l.her �(11(l Lu t•he Trustee, "'l-ittcn jlotice of any Event of Default under this Ag-reemelit of wlli(:11 Lhev shall hav,• actual knowledge or written notice, but the Depari:nl(-,11t•. Indu5lrlal Deveiopmellt t_ orpol'at•ioll and the City shall not - be liable for failing to glVe such tlutice. SCt.ii)11 :J.6. %c,1ldlri()I1S I�l'P((?'�C?lll. t.o Loan. Till: follclwilly event.5 shall be 1_U11l1iLi1'.i,17S 1:,1'(_:CisL1('ltl• l•(., tlli' 9 W'1'110 LOall i Cre-Under !.i) that all opinion of c!lllllsel c�:, L17G 1,i(Ju5t.riuj Dev+.lopIlleilt Corllnl•at.loll he. delivered 111 forin and substance acceptable 10 the D(,pL�rtmenr.; (,iij Lh(� ,Idence of voter alld city council approval of (_hc- I�C1i11.Vi1tiG De.v(�lopin(?Ilt Sales an.d _'se Tax Milder Section 4XX LA or 13? of the Act. 1)e ve)1 \which is ,1ucUpi.�Ible to the De )ai'uncnt•: and thatthe chief financial officer (' Lhe City di:livr r a ctirtificate acceptable to the Department that, the Debt Scrvice 1,`ovl�ragc Ratjo has been 1IleL. ARTICLE VI MIS, LLQ NEOUS �rct.ir)1t 6.1. Ke 7urt1_)11Z. Ill corin('.Crinn with the Loall hc,rellli,icr. the industrial I�e \ PIOJ,11+1 ltt• (_ UrUo1',1G1o11 X11::111 provide LO th(? Department. w'Itlllll 1iir:'e11 ( 1.3) da)" MI—Pl. (ll1.11ij 'v .`8 (()1' l' ('1)I'llai'y !O (11)1 II1J a ;.(: �r':•. �. Ian' :i; zmci '\')('11Si :i) (!) �;;.lCll'C•CI'l\' a\ iT1C'lll `111111 1'l':,01'; i1,C:li(li:l�; rill' .1111't (�UL�:i.:l.. !11:_ _'il :::_ Llllcli•I'�\'li��� ,�r �� .� Vii, � �' lll,.._..;tl�i,,. I)(",,�i ;'•1 ,lit, ;" .1•i,n 1 -, , 1 1:.,''.1• -mc Dcvel,;p,nellt• 5all�s ftlltl (J60'Tat, and iii) quarterly reports on rile R�tttngs, l�conorttic 1)('vciopinenr. Sale, and L;,L Tax r0vellues and the Debt Service t_;(wer•age RaLlo of the (~i(:v also taking into account all I )ccordaiic;u'lty Deht incurred after the date hcr(!()f in e. with (,h�• t(?rrlls ller(!oi. D()rcl(19L 1J\!_I,CCC]'Once, r)f t'.olllillltrtl('Ilt• Lc LLeI'. ,`)l1S Loan is Corp j- to that cel1,,t:ollluuunenl; Letter !;;sued VO 1.110 lndusLrial Development ref'e) ,lice I n l;y the Dupart,1ne11L under date of XX, lgzKX, wluch is incorporated b reference herein. .1 copy of said comlllitnl0nt letter is annexed as Exhibit C. The terms wid Conditions of Said Cummimilel1L lotto!' shall TIM M01-90 111 this AgreetllerlL but shall f.11e exeCllt•iOn 'and delivel'y Of this Agi-co !lent, mid c()Iltlllue t full force and effect. p be and remain 111 Section Ei•,'i. DFl;,lrt:me111. tp Adn�i111srer t.}le Loan. Except as (and only to the extent that) this Agi,eement pr' the c�nlnlitllletlt letter of the Depart.111ent auto the ht rete) as Exhibit. xed (_; shall P,xpl'essiv provide to the contral�, the llepartrrtent shall administer' the 1,ut1n. In this connection. the. Industrial Development. Uorporatipn will ulovtri(, to the Deparrillellt copies oC the closing O1 t11l'ilderl�'In.�r LoanLoanllocunlcnts. if,any, at the 1S l,2'�it)5rictlnll. The Depart:.11ellt, from and iiftel' the Cleclal'aC1OI1 OI aTl !vent of Default, may pursue aupropriate remedies avaiial)le t:p for iit with due dill encP. I';xceptits obligation co use due care, t.I10 Depart:Illent shall incur no liability for rely ttctioll which the Del)ai•tment shall take or omit to take in connection \vitll the Loan unless '�ucll act or oltlissiOli sltal.l involve willful I1lisconduct oil the part: 01' the 1)eptll tlnellt. W't11Utlt li'llltill9f i:he generality of the foregoing: tl. Consultation with C oun,.el• The Depa1•tment play consult: with legal counsel tillcludill f,1(meral counsel -for the Department), independent cnrr•ifi0d public accouni.ant.s and experts selected by the Department. The Depart•mhni• shall not be liable for any action taken Or omitted to he taken upon the advice nf• such counsel, accounts 01 ('xperts. her l`nI'1.ICs. The DPI-mrun)e t• sha11 Il(.�1 i)t' r(,yputt5il;le for t.11c Pel'1pr111a11C(: (.)1' uU5Y.1'vt cc ; ill �1' Ally Of th t.ernl.s, covenants oI' COndit OI)s of the Lo(;n DoCLllilent5 ()1' th0 Lnderlyin Ll; .n Uocu,nellt: , ]f a11v, v. -qtly party LI1PrPtU other them dw! Depaml)-,(�tlt. CAction in lit liatl(:e of I)octilllellt.s. The I)eprlrtillent shall illcur no liability For havil)& tjctcd or utIULLed tel <:tCL upon anv 11or.ice. C011S0I11, certificate. or other llsrru)r,Pnl yr %Vlliting (including any telegram. cable or tele:,) ertaimm, collatrr,,l (")1' to anv v CA' the of ilii! I�pat1 1)ocurllents ltrleluding, I;tlt IlOt• ll)]I11LPd to':' anynlll t* lI1tV) which i., belicved i -)v the nepartmeilt to be genuine and to have been SlUr1Pd or ;enL )v the t)t'opl�,- parr\- S:�Ctic�u 6.4. `itt !alta!!( nub (:I(lsiL 19It }1111! !, x condition 11:: tl:e r1:_I:,it1 nC lltl' i'2111`aC!'71)S (:u 11C•rI111"IIaLCIt 1)\' :1115 A!fre!'lllc;i ! that L)p I'IOtilIlt; rlt '!le llliderly-:11c- 11(-t.A lire' 1nC1Ust•rlal Illy Section 6.5. ��i�; tlllf)lied Wgivcrr. In the event any provision of this;Ilr;1 cement ouid he breaciud l.;y (it.hcr party ;u;d thereafter• waived by the other party, such "'i11vi'r shall he liulit.r,d to (,he particular breach 50 walved and shrill 1101; he deemed to ;trly 0('11e1- ;)'_e lcb LhereuIWO1r or hol-emider. �cct:ioll 6.6. Ilet;lrt.lu, 111 lZ('1)1'C'SQI?C:,1,IV(�, VV11C[1C VC'I' LII1dC1' til .. I)I'Ov)clolls of t111S Al-�repmellt the mpruvai Of the Depa_'tlllerlt Is required or the llepartnlcllt Is required :o t:llce :;()llle r,ct.iun at the request (if tho l.ildustrlai Dove iopillent C:orpol•ation, such approv;ll shall be made or such action ;hall be unken by the Departmeli.t Representative; 'llru t.lic: I ndust.rlal Development Corporation and the (:i_ty shall be aUI hori7cd to rely Ml .111,' Such 1pprova) of- actioll. Section 6.7. Itidlr t.rir�l �)evelc�lnlent Corporation Representative. Whenever under the provisions of this Agl-eement the approval of the Industrial Development C'uruurutioll is regWred or the Industrial Developnlent Corporation is required to take �omc ,actiOn tit the r(:quest of the Dopal•tlllent, such approval shall be made or such :lctle>n shall be taken by the Irlciusta•i:li Dove loument Corporation Representative; and ;.11r. i?r:P,irrnlr.nl: 5(,;111 1„! aurhorlac;d 1:.o 1'01%1 on ani, oueh approval oh acl.ioI1. Scciior; (�.,5. �lotices. I,xce1)t: tis otherwise provided herein, it 511,111 be sufficient ?Cr,'1CC of �,TlVlllf U1 filly W.Aic(?, request., Complaint, demand or other paper if the salne Shall be duly mailed 1)y registered or certified mail, postage prepaid, addressed as set furLll l,clle \v to the Department, the Industrial, Dovelopment Corporation, the City or to any other Gerson S,;L forth therein. The Department, Industrial Development addi-eCrpration, ar,d tl1(, Cit} by ►loticP Enver( hereunder may designate' any different addl'essF l•(:) „'f11Ch �t.li)5e'(lue1lt 'Wt.ic:?S. C-01-rlficat.es or other Communications shall be ::Ct1L. 1 cJt]pllcalc cc,IJ,' of eac11 ])[)C1Ce. cort:iflcate of other• communication given hcrcund�,r by ,-,rte MFIM,� to another small also be Lo each of the other §§rhos listed herein. To til(; Dcpartmeilt: Tex;.is I'[ vCtra ,-, Fund 1 l','<;:S I pparunrl nt of t 7oll m(irc(.t 410 East: 51,11 Street.. 3rd Floor 78 701 With Ll Uirpl•r.or. Business Finance Texaa Department. of Co111111crcc 410 EaSt JLh Street. Ad Floor Au.;un. "1'unm 78701 To the Industr ul DevelopHle", Orporatlon: \X 1,t; hw­a it ectlr,ll ti.y Jf 1'e`_ r('ol`lllnnce l:lat:c N��L 13uGlneti�_ i)a if the du(� date for ally ;l:tt�nll�nt h�rc�llncler r_,r If the last date lil •- r peri•ormal,ce o; any rlct. (,r thc, ('x(�rclsinp" of ,Ilv 1'l; Jlt, ,i;; pl'Oy1Ct(`d ill this ��l;rcenlent.. shall not :10 1-11,n(rss l7av, ].hen ,;(Icll of .1C, p(ey ol'nled r,t' (I1 117 C: 11CSL SIICCI?C'.C1111g I',Uslne.5 I�,1�' t;.10 Bindina hffecL.-l'Ills iuurc' to Lhe i)cll( of and •;hall i i)iuding uiloli the Departt]](-'M. the Industr't,1i Develonnlent C%oruorrlLioli. the t -,its wlth rc;I,(�ct t(] Sectiol]s �. 5.1(I�) - c'•ltci all .�.,� (, r.11is A,��reemenL and their res eiOp e successors olid assigns. No 1ssignmem of thiti Ap-co er1t. l -)y file Industrial DeveJopnlent (;nrporat.ion shall relieve the Industrirli Devclopnlellt Corporation of its c,bli�Yations llereunder. Secl.lc,11 fi. i 1. Severability. Ill the event any prove;ion of this/1 g1 c�elllent shall be hold invalid of unenforceable f) =hall not. lnvalidate or render unenforcoiblt. eI illy or-lieretent p)-ovi5ion llcr•eof. 5'lch holding ect.lon 6. i?. I�1]fm Cc]nellt• ()f &M-ceinents or 'vtorT� a>?es. "Phis Agl cement shall ire 1'c1r the henc'1'it of the Industri:ll Development Corporation. In the event of a default in t.hc payment of the principal of or the illt:erest on L11P. 1�OtC' 02' 111 t}1(? perform rlice of <�n5 agreement contained herein or in any related inst-rument. such pa ment and performance m,lv be (',,forced by mandamus ())- by the rl;)po 111t,1110"t Of a receiver in equity %vith powe,1' Lc) charge and collect rents. Purchase l)aynlellts a )lv 1. 1 lasr' pric(� pav111ell t5, and loan apply he revenues ('7'()111 the J'roject. in rlccclydance with this A�1eelnenL. (.hc �:ot.c (q`- instrulllellt. FIs tl]B ca,,e nla`.' be. �-� (In file cv(�rlt of default in the a �lnetlt of c: Ino.rilo-aU. t. ,! dle violaL]c)tl (,{ `i_1� rl�`I CC111(111t COl)talned 111 the n101'tVa e r: 1 �oC, r o SCcurQ Hie Note or rind sold andel' lirOC-Peding , ;age may }lE? foreclosed ,,s in ccluity Or ill anti ni.11er manner ne�y (:lr hereafter ;)(�rn fitted i;v h1w .any trustee under ::llch lllol•Ltle nl• the llod�(nlr of t:he Note secured I)('c(,mv the nul'C'MIsr�r ::,t - �lnv i'orecir>�urc jai(? �;th(' ilia-}lt,sl; ')fielder ll�r('lwl' J i 0 l;(' ,:1C1L1CleC1 111 an.v 1'r�latCCl mortha e doCUn'.C;)l.j tiectltin t> is>. ;')lncridtllc'nts, (_ })tlllges rtlld \1oc'ific ` ta('ll�'['I'',' i>i 11 , T L1C1115. �Ul segtiellt TO t.}1 P. l( 1� 't•1' "'led pl'lor LU pLiVl)1('lll. of the N,_,LC, (,1Tp(:Tl,.7Cly •-tl ? , -ii1S Agrcelll( let' may not, be nc lj.?..d, cnaljUed. noduled. altered or Terinin, 1_�d except, 111 W1'1t1I1(r si ded Tr, t}lj !�7(�eillP.11i Sect on 1; , - �_,::t'.c_i,[.(C�r; lt1 (�Ol'IjCr•1'U�11'LS. i -ii:: '� ,,�� , , �. .-ttlr'Il IM -i il(: executed in cclut:tc,�'n :'.s. , Lich Of wllicll �hr111 be an ;Irl�rina. ;nc 1 i of ',�.11ich ~hall collstit.ute `''ll'ir 1.11LS '.,. i;. .?C .i,l 11•_ i�l''.l'Ilf } )v and 111 .h la's:_ O1' Hle IN WITNESS WI-TEREOI<, the De-partment, the Industrial I�evelop111ent (colli na nos and the City liave-caused this A[,I'eeme».t to be executed in their respective le nl names and their respective corpo"at:e soals are to be hereunto affi�ced, and the Si,�ntlt:ures of duly authorized- pe1•sotls t:o be ;iLtested, all as cif the date first above written. TE )(AS DEPAIJ',nJENT OF (;UMME, 1- (UIL By:__ Name Title: A'T'TEST: Cathy Bonner Executive Director X.X UNDUSTRI.AL DEVELOPM �N't' SEAL] CORPORATION] A'T'TEST: FSEALI ATTEST: By:____ Name: Title: The etecutiori of this Agree»ent by the City of XX, Texas. indicates aqreeniuut, and consent to Sections �.3, �►, l_(l�) �. I_(c;) and .5 of this Agreement only. THE CITY OF XX, TEXAS� 133,:__ Name: Title: EXHIBIT A DESCRIPTION O1: THE PROJECT 1'he Uep:zrtznczit will providC J)urcial funding for the crontion of The Dopartnlczlt \.vlll loan XX to'thc -KX to l)c used for eligible crusts of this project as 17epapgi•teillent. de rtd ill the deb «rlli�l� Yl6v tzzeet the requirements detailed ill elle Guidetines of the The terms of the loan are as follows; Term: XX Interest; IZaate: x; Payments: 1X Collateral: x Princlp;11 ."\mount PROMISSORY NOTE AFTERTHE ENDORSEMENT OF THIS NOTE A5 HEREON PROVIDED, THIS NOTE MAY NOT BE ASSIGNED, PLEDGED, ENDORSED Olt OTHERWISE TRANSFERRED, EXCI,PT TO BANI OI' AMERICA TEXAS, N.A., 300 CRESCLNT COI1R`P. SUITE850, DALLAS, TEX,%S, 75201., AS "TRUSTEE". FOR, V A1,U RI CEIVI;D, the undersigned. NY (tlir, "Itliiustrl;ll Dc:vrlvpmc;ilt. t:orporatioll'), ;t corpol"Mon organized and exlsting under t11e laws of the State of `Texas Find Section 4-U (A or 13) of t:he Development Corporation Act of 1979, Article 5190.6, Texas Revised Civil Statutes Annotated, as amended. )hereby promises to pay 1-0 the Texas Deparr.inent of Ca111111erce, an agency of the State Of Texas (the (_)epartnleni•') in "lle day (-Tr other immediately available funds the princip:ll surd of Sxx, together \','1011 illwregt on the unpaid p principal bal;lnce thereof from the date 11017e0fUilt11 fu11v and finally paid, together with all other amounts on this Note or the �.lebf c:vidi:ucc u llerebv ;i.0"Ist the; holder hereof. This Notts shrill bear 1r)terl,st. at a rate per annum equLtl Lt; the floating prime or base rate published ill the Wall Stt'cet. <Tournal 1rc)jn time to tinge 1.the "Wall Street Journal Prime Rate"), which rate shalrl be effective from and after the date of publication thereof(, plus flercentl; provided that cc the event at ,:jly t.ilne the sum of the discount rate and letter of credit fees paid 1)v the I)rptirtlnent oil anv of itis Taxable Commercial Paper Notes Series A is greater than the 1.11(2r' Flppl.ical ie Wali Street. Journal Prime R.titef, plus ____ 1�ercentJ, this Note 5hai1 Dear interest flL r� fate rJtiuiv�llellr. t.0 such sum until Such rate is less than the 1''�'ali Street Jr,urnal I'rirr.c iutte(, plus percent,l at which time this Note Shall recommence hearing interest ac. die Wall Street Journal Prime. Rate(, 1)lus-_ 1)elccrlt). This Note shall be paid in accUrdance with the debt service schedule "ttached hereto or such additional debt 6ervice schedules as maybe provided by the Department, to ;imurtize the re111lall-ling principal balance in accordance with the original term as a result of a Gliant;e in the interesc rate or t.o reflect an unscheduled principal payment;. 1)rovlded, however, that !ll Cverlc shall the a g-r•egate of the interest hereon, plus ;my (Aher ;S;T10UIlty Chir"fled uv r.Ullr•cted in conlleCt1011 herewith or wllh f..he, konn A` , , -j-'eement, 'A'11lCh are dee1,?ra under the :.aws of the Statc of i'exa.� anti the t 1nited Mates t:!t dn''m horeol perniiCtlila t:he ch.tr_-17'. T inn ,'.t-,11CctjljF,, I?she-1. nonu,�_: ,...�` ,nLel i•til r�Le hc�l'�otl (llertln;lftrr rete L t'ed iu ;is "/\ppilc•;,!;1,� i,;1w 1 ,.1I11OU11L. of InTere' \ F�� 5t. hien ctluId t- ;r,\\ fully chair t d }, `rr�tltl Widel ApllilCr.')i, l ,t\v, l\'i}1111 herein or 111 f ne 1.,om! to lh( tFTI r;Unt Ol L:lkr,n o, :his • `; Oi .lit' 1?i:-!?:;;11111:. �l'.ilr'L:i:L .' I nlr'1r`.i \•.;11�'ll, � .`dCr lmve he(m rolh.cte<i ' F`1 ,l (",:1. ..'."11 L!1(' r'\:Cf:Sr' (�orPoI'll tioll. All indebtedness rvidet;ced hereby which under. An !ic cleemcd "interest" shilll, to t;he extent, l)(rmitaed 1) , }lroraL('d <tlluc tLed, :,nd Surcad tllrou hotr (lie lull , P able 1-,;w would be Journnl Prinle J;ate I lus /1PI)lic.�hle 1,:1w ire alnort:lzed• t•c) the t•erllls hereof•(,P perce•)tj Or imY hip]ler lntere.;L r,,i.(� (.n h� p lici p1u sua11L xceedti I he t1l,tximuln 1n1O1-tnt. �,f illterc'�L .('r ich coui(i he } 144 Cuil ' :'hartled udder Appllc:ji)le L�lt4', dlerl d),lt j)C11�LtUl1 WI11C11 CallrlUL l:lwhl � � - he defen•ed until such time a5 such portiotl clot he lawfully } t(1 the contrary Ilot.witllst•anciin 1l� he (-llargfed shall lau Lull}' chart,Ted. .�,tl�rthir)g herein irlr•eretit which , and subject- to Applicable J1,-lw, the rnax1r11uiT1 Amount cl)ar�,ed ]ler•c�unde,' is [ ,� tllc lesser- of til Lha m:l. eflectivc interest rate" allowable under , lrt.icle "71 X th Vessorl's /1n , �L�1LULes, :iS ar11eI1dCd curre lid r 1]Gtdt•CcJ hilllln7 "11CL ntly l,a✓� ( 0r (ii) `cas C. -v11 (-he Act, i.he tnaximu111 antlual int.erc.:t rater ) Pursuant to Section r� r,) , or nlorc in the State Iiursua i - rerty r ; g1 UJ`(h)(�) c]f tablished for 1)usiness loans of $250,000 Strlr.utcs, .1S 1111)ended lcle )()69.1.04, Vertmrl's Annotate :env r1n1Oun1: of' interest colleeLFd or receivcrd }),, r }lx,)5 Civil )�epartnlc�nt of (;01nm(�rcc pursuant tO ttli:, :merest \Nfhich COUld be l:Iwfu]ly chartrc� Note ]n excesti of the 111tlx]mum amou It ex a1' r>1 (_'o1T1rT1erCr' he either ret't111ded t•o the 11) 0i' the o ticln 0 ' t-hQ P )'(;Safi 1)c� )•� • . to 1IM' 8111OLITIL of Prlrlclpal owtnhr ti> the Tex .. r. �lr tment. eloprn(.nt (=aI'porllLlclrl or cr(dited t -he provisions of this NQtr, and Shall i111lT1(3 2S Dep`1I'tmerlt of COMITlerce 1:hcreaft(,r collecter and ik)1( h(.reundc d]atc`ly 1)e deemed reformed andethct,t� 01: nts (execution ofany no I and tllcreunder rc; y C1UCut11Cnt. SO .1S to cont 1 ,' dt1CCd, wiLhOtIL t}TC' n(:CCStiILV of the t)ernlit the rccOvery Of t.ho fullest ,lrnounlC Tr, with of AI�P1� 1bfl�:rL}!w1 hut. so AS to t•hcreundcr. lel (.under 1lnd TlI111SSU11' \i(%te 1� lSSUPC. ;lere�vir.h (the Loan Are(, })ur5u�int Lo the Loan A� cement of e�vo.tl d;ltP �T J11CIlt') _xect,tcd and delivered 1)�, l_>epartn;et;(• a!I(1 the 1tldustrial ) )eve]. , and h(� . :Made Lllrri uncle tweed the r and LO e`,• 1 , (-)t (.'orporation In Corlsid(iz -011 Of the ]()all ldr_tice Lhc ot)Jiz 8t1011S of the Jlldustrial i)(ve]0Pnlent ';orporatiorl ser. fori.h in Section 4.2 thereot' This J'romissorN, `T - ('Ondltions of the Loa," ��vt(� Is entl:led 1.,) the heneflt'S C)f I 1 lrreeltlent. r � 111d is suhiect. t.o the t-��rl)orat101) to make (.Ile � he c.)nli ations of the lndt]st'rial I ,110Pn1cnt 1-mconditional without '111 d(��ylrlc nt= required hereunder }1�I]] he ahs( reason o ally Y f tlsc Or right. ()f set-off, Counterclaim UI rCCC,t-1pll)er)tlh� f } dcf.lult by the Dep:�rtmer,t under the Loan A�Tee111ent or under a i. 'eF nlellt Letweµn the IT16ustrial Developinc nt Corporation and the )�c. art lnen } ;)1 atly 111dP.htedIlCSS c' >r liability nv other C ��_ RL d11� tittle Owln� P L or Out. err, ,raL101c by the, Dc to the Industrial Develo • _ Il�irtnlc'nt• Or for ani- i,Lrler reason. pn-lent T}lc 9 -'LIOMS Of dl.' Industrial DNvr , �.1.1IL�•(1 u1,li , (,` ti . �;)nlept (�or )Or:lLlou hereunder xrc s11;•,•1<li ;Vol,e (!1• at1V 111tiL111i11f• � :r�'�'[(ll'f1t lllilti' _,'vc, tl l,•,,. :� 11o:d(_r rivht. t'> d(!1;!,(nd })a�rment fr(1 r,t rclrcted to l.his (1)Ilc'l Leel F1'r),11 l:?(° 1`c<,11Un11! I)lt\'(.J Ill t A pI'0CPOdti I1! 1„`1•„�ti rt XX [A or 11 (1 a O1)111Cnt 5 1�r'ti!;11i1r1�(( �)`✓ 1 f t' an(i �;ir.(i(r ,: }:( reundcr 1.i'.,';;,,li 1,�1 -h1, l�i'1�1 1.'_ ��-���� •�� .`,',i1n11 ;).l i,;� i:i,_' ' ;11.;;�(�• •)t r1:tV 1.'�r'.rl :1.1',`••1?, „i, � _ De r� 1 ), i(i( � 111 I \ ,.,�•,�r.„ •�� -111_: 1' This PromissIory ��i�Lc' )s a contract mnde under ;ind sliall be construed in cordance with and governed 1)), the laws of the State of Tex.as. JN WITNESS WHEREOIP, X):: has caused this Promissory, Note. to be duly executed, attested and delivered as of 'XX, 19,XX. (SEAL) ATTEST: By: Name: Title: Authorized Officer Tllc 'Texas Depart -nem (-f Commerce hereby assigns and endorses without recourse the foregoing Promissory Note to the 'Trustee. TEXAS DEPARTMENT OF COMMERCE Bv: Name: Cathy Bonner Tittle: Executive Director RESOLUTION NO. 1228-3-94(R) Exhibit B RESOLUTION NO. T?n000I -03-94 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ALLEN ECONOMIC DEVELOPMENT CORPORATION AUTHORIZING AND APPROVING A LOAN FROM THE TEXAS LEVERAGE FUND, TO BE USED TO REFINANCE THE EXISTING DEBT OF THE AEDC AND TO MARE IMPROVEMENTS TO THE BETHANY INDUSTRIAL PARR, PLEDGING SALES TAX REVENUE FOR THE REPAYMENT OF SUCH LOAN. WHEREAS, the Allen Economic Development Corporation (AEDC) was established pursuant to Section 4A of the Development Corporation Act of 1979, as amended (the "Act") and by ordinance of the City Council subsequent to an election to impose a one-half of a cent sales tax for economic development within the City of Allen; and WHEREAS, the AEDC is charged with improving economic opportunities and quality of life for all citizens of Allen; and WHEREAS, this financing is necessary to the AEDC for development of the Allen Central Business Park; and WHEREAS, this financing is necessary to the AEDC to make improvements to the Allen Central Business Park; and WHEREAS, the Texas Department of Commerce has developed the Texas Leverage Fund to assist in funding with projects; and WHEREAS, the AEDC has been presented with a loan document (Exhibit A) for their consideration, in form substantially similar to the "TDOC Loan Agreement" to be executed between the AEDC and the Texas Department of Commerce, certain sections of which are to be agreed upon and consented to by the Allen City Council, pursuant to which the Texas Department of Commerce will lend from the Texas Leverage Fund to the AEDC an amount to be used to refinance debt of the AEDC and to make aesthetic and infrastructure improvements to the Allen Central Business Park; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE ALLEN ECONOMIC DEVELOPMENT CORPORATION: 1. to authorize and approve a loan in the amount of $2,851,842 from the Texas Leverage Fund to be used by the AEDC to consolidate debt and to finance improvements to the Allen Central Business Park; and RESOLUTION NO. 1228-3-94(R) 2. that the loan agreement (Exhibit A) prepared by the Texas Department of Commerce is approved in form and substance as proposed to the Board on this 15th day of March at the Regular Board of Directors Meeting and the President is hereby authorized and directed, for and on behalf of the AEDC to execute this agreement, and the Secretary is authorized and directed, for and on behalf of the AEDC, to attest the agreement which is in form and substance similar to the Texas Department of Commerce Loan Agreement; and 3. to pledge, pursuant to the Texas Department of Commerce Loan Agreement to be executed by the AEDC and approved by the Allen City Council, the one-half cent sales tax for economic development in favor of the Texas Department of Commerce to repay the loan evidenced by the Texas Department of Commerce Loan Agreement: DULY PASSED AND APPROVED BY THE BOARD OF DIRECTORS OF THE ALLEN ECONOMIC DEVELOPMENT CORPORATION ON THE 15TH DAY OF MARCH, 1994. ATTEST: i Brazeal, SEC Y APPROVED: Vern Lahart, PRESIDENT Resolution No. EDOOOI-03-94