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ARTICLE IV ASSESSMENT AGREEMENT AND TAXES Section 4.1 Execution of Assessment Agreement. The Developer shall agree to, and with the City shall execute, simultaneously with the execution and delivery of this Agreement, an Assessment Agreement pursuant to the provisions of Minnesota Statutes, Section 469.177, Subdivision 8, specifying the Assessor's Minimum Market Value for the Development Property and the Project for calculation of real property taxes. Specifically, the Developer shall agree to a market value for the Development Property, the Project and the Phase I Public Improvements which will result in a market value as of January 2, 2010 of not less than $19,000,000.00 until the Assessment Agreement Termination Date (the "Assessor's Minimum Market Value "). Nothing in the Assessment Agreement shall limit the discretion of the assessor to assign a market value to the Development Property, the Project and the Phase I Public Improvements in excess of such Assessor's Minimum Market Value nor prohibit the Developer from seeking through the exercise of legal or administrative remedies a reduction in such market value for property tax purposes, provided however, that the Developer shall not seek a reduction of such market value below the Assessor's Minimum Market Value for any year's assessment so long as the Assessment Agreement shall remain in effect for that year's assessment. The Assessment Agreement shall remain in effect until the Assessment Agreement Termination Date. The Assessment Agreement shall be certified by the Assessor for the County as provided in Minnesota Statutes, Section 469.177, Subdivision 8, upon a finding by the Assessor that the Assessor's Minimum Market Value represents a reasonable estimate based upon the plans and specifications for the Project and the Phase I Public Improvements to be constructed on the Development Property and the Easement Property and the market value previously assigned to the Development Property. Pursuant to Minnesota Statutes, Section 469.177, Subdivision 8, the Assessment Agreement shall be filed for record in the office of the county recorder or registrar of titles of Ramsey County, and such filing shall constitute notice to any subsequent encumbrancer or purchaser of the Development Property (or part thereof), whether voluntary or involuntary, and such Assessment Agreement shall be binding and enforceable in its entirety against any such subsequent purchaser or encumbrancer, including the holder of any mortgage on the Development Property. Section 4.2 Tax Increment Shortfall Guaranty. (1) If as of August 1, 2010 or February 1, 2011 the Tax Increments received by the City in the prior 6 months are less than $35,201 (or such lesser amount equal to 110% of the actual payments required to be made under the Bonds) for the Development Property or as of any February 1 or August 1, commencing August 1, 2011 to and including February 1, 2026, the Tax Increments received by the City in the prior 6 months are less than $83,833 or such lesser amount equal_ to 110% of the actual required to be made under the Bonds) for the Development Property, the Developer will upon fifteen (15) days written notice from the City to the Developer pay to the City an amount equal to the deficiency. The Developer hereby unconditionally guarantees payment of all such sums (the "Guaranty "). (2) The Developer hereby expressly waives presentment, demand, notice of nonpayment, protest and notice of protest on any obligation and also acceptance of this 2139197v6 Doc,/ 2561638 \ 9 15