GORDON & WILLIAMS, INC. 1A - 2005

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"Tax Increment Revenues" means all taxes allocated to, and paid into a special fund of the Agency for the Project Area pursuant to Article 6 of Chapter 6 of the Law and Section 16 of Article XVI of the Constitution of the State of California, and as provided in the redevelopment plan for the Project Area, including all payments and reimbursements, if any, to the Agency specifically attributable to ad valorem taxes lost by reason of tax exemptions and tax rate limitations, but excluding any amounts required to be paid to other taxing agencies pursuant to section 33401 of the Law and any amounts required to be used to improve the communities supply of low or moderate income housing pursuant to Section 33334.2 of the Law. Section 2. Reimbursement; Other Payments. Subject to pledges of Tax Increment Revenues heretofore or hereafter made by the Agency (this Agreement being subordinate to any such pledge), the Agency and the City agree that, to the extent necessary but only to the extent available, and not in excess of the amounts specified in Exhibit A attached hereto and incorporated herein, in any Fiscal Year, Tax Increment Revenues shall be used and applied to repay the City such portion of all current or previously unreimbursed Lease Payments made by the City to the Authority under the Lease Agreement. In addition, the Agency may apply other legally available moneys to make repayments hereunder. This Reimbursement Agreement may be amended from time to time by the parties hereto for any purpose and with any effect whatsoever. If, in any year, there are insufficient Tax Increment Revenues for the Agency to fully reimburse the City for Lease Payments made in such year, such deficiency shall be carried forward to each succeeding year until the Agency has sufficient Tax Increment Revenues to make up all Carried over amounts. Available Tax Increment Revenues shall first be used to reimburse the City for current year Lease Payments then for carried over amounts. Section 3. Default by Agency. If the Agency has available Tax Increment and shall fail to repay the City or shall fail to pay any other payment required to be paid hereunder at the time specified herein, and such failure shall continue for a period of ten (10) days, then the City or, if applicable, any assignee, shall be entitled to exercise any and all remedies available pursuant to law. Section 4. Remedies Not Exclusive. No remedy herein conferred upon the City shall be exclusive of any other remedy and each and every remedy shall cumulative and shall be in addition to every other remedy given hereunder or hereafter conferred on the City. -3-