Resolution No. 04-06 EDA (Approved)

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(a) 90 percent of the Tax Increment attributable to the Development Property and paid to the Authority by Anoka County in the six months preceding the Payment Date, (b) less the amounts needed to pay principal and interest then due on any outstanding TIF Bonds, and (c) less the amounts needed to pay principal and interest then due on the Interfund Loan until such date as the conditions for parity described in Section 3.6(b) of the Agreement are met. From and after such date, the Tax Increment remaining on any Payment Date after application of clauses (a) and (b) is pledged to this Note and the Interfund Loan on a parity basis. The Authority shall have no obligation to pay principal of and interest on this Note on each Payment Date from any source other than Available Tax Increment and the failure of the Authority to pay the entire amount of principal or interest on this Note on any Payment Date shall not constitute a default hereunder as long as the Authority pays principal and interest hereon to the extent of Available Tax Increment. The Authority shall have no obligation to pay unpaid balance of principal or accrued interest that may remain after the final Payment on February 1, 2023, except from Available Tax Increment attributable to property taxes paid in 2022 or prior years or from Available Tax Increment received by the Authority after February 1, 2023, but attributable to the payment of delinquent property taxes payable in 2022 or prior years. 4. Optional Prepayment. The principal sum and all accrued interest payable under this Note is prepayable in whole or in part at any time by the Authority without premium or penalty. In addition, the Note will be deemed to be prepaid to the extent and in the manner described in Section 3.6(d) of the Agreement. 5. Default. Upon an Event of Default by the Developer under the Agreement, the Authority may exercise the remedies with respect to this Note described in Section 9.2 of the Agreement, the terms of which are incorporated herein by reference. 6. Nature of Obligation. This Note is one of an issue in the total principal amount of $1,000,000 all issued to aid in financing certain public development costs and administrative costs of a Project undertaken by the Authority pursuant to Minnesota Statutes, Sections 469.124 through 469.134, and is issued pursuant to an authorizing resolution (the “Resolution”) duly adopted by the Authority on December 20, 2004 pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.179. This Note is a limited obligation of the Authority which is payable solely from Available Tax Increment pledged to the payment hereof under the Resolution. This Note shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of and interest on this Note or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of and interest on this Note or other costs incident hereto. 7. Registration and Transfer. This Note is issuable only as a fully registered note without coupons. As provided in the Resolution, and subject to certain limitations set forth therein, this Note is transferable upon the books of the Authority kept for that purpose at the principal office of the Authority’s Executive Director, by the Owner hereof in person or by such Owner’s attorney