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and any transferee of Developer's acquiring an interest in the Property or Improvements to
<br /> execute an instrument, in a form acceptable to the City, acknowledging the validity of the lien of
<br /> the Assessments and subjecting the Holder's lien or the transferee's interest to the lien of the
<br /> Assessments. In addition, the Developer will upon request by the City execute such other
<br /> documents as the City may from time to time reasonably request to continue the perfection of the
<br /> lien of the Assessments as a first lien on the Property.. Payment of the principal amount of the
<br /> Assessments shall be deferred but shall be due and payable on 1, 2006, unless
<br /> accelerated pursuant to Section 9.2 or unless satisfied as provided in Section 3.8(e), except as the
<br /> payment obligation may be reduced pursuant to Section 3.8(b) and (c). No interest shall accrue
<br /> with respect to the Assessments until 1, 2006, or the date that the Assessments
<br /> may be accelerated pursuant to Section 9.2, but if the Developer fails to pay any amount that is
<br /> owed on 1, 2006, or on the date that the Assessments are declared due and
<br /> payable in accordance with Section 9.2, the unpaid balance shall accrue interest from such date
<br /> until paid at the prime rate of interest in effect on the date the Assessments are due as announced
<br /> by Norwest Bank Hastings.
<br /> (b) The amount of the Assessments to be paid by the Developer to the City on
<br /> 1, 2006, shall be reduced by an amount referred to herein as the "Construction
<br /> Credit". The Construction Credit shall be equal to the market value of the Improvements,
<br /> exclusive of the value of the Property, for real property tax purposes, on the January 2nd prior to
<br /> the date the Assessments are due, divided by 10. For example, if the value of the Improvements,
<br /> exclusive of land value, on January 2, 2006, is $160,000.00 the amount of the Construction
<br /> Credit available on 1, 2006, would be $16,000.00. No Construction Credit
<br /> shall be available to reduce the Assessments unless the Developer has completed, to the
<br /> satisfaction of the City, all aspects of the Improvements, including, without limitation, any site
<br /> improvements shown on the approved Construction Plans.
<br /> (c) The amount of the Assessments to be paid by the Developer to the City on
<br /> 2006, shall be further reduced by an amount referred to herein as the "Jobs
<br /> Credit". Prior to closing on the conveyance of the Property to the Developer the Developer shall
<br /> furnish to the City payroll records in such form as the City may require documenting the wages
<br /> paid by the Developer or Forpak, Inc., in the twelve month period preceding the closing. The
<br /> City shall determine such total wage amount for such twelve month period and such amount
<br /> shall be referred to as the "Existing Payroll". The Jobs Credit shall be equal to the annual
<br /> payroll, in excess of the Existing Payroll, in the twelve (12)month period immediately preceding
<br /> the date that the Assessments are due of the Developer's (or Forpak, Inc.'s as described in
<br /> Section 8.1(b)) operations on the Property, divided by 27,000, with the result then being
<br /> multiplied by $5,400.00. For example, if the annual payroll of the Developer or Forpak, Inc., for
<br /> the twelve (12)month period in excess of the Existing Payroll is $200,000.00 the amount of the
<br /> Jobs Credit (($200,000.00/27,000) x $5,400.00) shall be $40,000.00. For purposes of
<br /> determining the Developer's annual payroll, only gross wages paid to employees shall be
<br /> considered. A maximum of$50,000 of the aggregate gross wages paid to all employees who are
<br /> also owners of any interest in Forpak, Inc., may be included in the gross wages paid by
<br /> Developer or Forpak, Inc. No Jobs Credit shall be available to reduce the Assessments unless the
<br /> Developer has completed, to the satisfaction of the City, all aspects of the Improvements,
<br /> including, without limitation, any site improvements shown on the approved Construction Plans.
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