06-27-16 Meeting of the La Porte Development Corporation Board of Directors

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LPDC Board of Directors for a date no later than forty-five (45) days after receipt of proof of such sales tax revenue data. Upon verification of same, for qualification of pro rata payment, as reflected by formal vote of the LPDC Board of Directors that Recipient has satisfied the requirements of this paragraph, LPDC will then remit a pro rata share of the proposed payment for that year an amount as applicable, to Recipient within a period not to exceed thirty (30) days. ARTICLE II All funds received as herein provided shall be solely for the purpose of reimbursing Recipient in the consolidation of its business operations at its La Porte site, and Recipient further acknowledges that the incentive grant provided for herein is tied to a project of the LPDC for the creation and retention of primary jobs, and that Recipient’s proposed expansion at its La Porte site will be suitable for the development, retention, or expansion of manufacturing and industrial facilities, as authorized by Texas Local Government Code chapters 501 and 505. ARTICLE III Disbursement and/or retention of the cash incentive identified in Article I of this Agreement shall be made as follows: A. Disbursement shall be made to Recipient, subject to the satisfaction of the conditions precedent or conditions subsequent contained within Article I of this Agreement. B. LPDC’s obligation to Recipient shall not exceed $230,000.00, nor shall LPDC be obligated to reimburse Recipient for requests delivered to LPDC after the termination of this Agreement. ARTICLE IV Recipient understands that the funds paid to Recipient by the LPDC are derived from tax revenues collected under Texas Local Government Code 505.252, and that LPDC has estimated the tax revenues to be collected during the term of this Agreement. Recipient further understands, acknowledges, and agrees that if the tax revenue actually collected is less than 90% of the estimated tax revenues to be collected in any fiscal year during the term of this Agreement, LPDC will be under no obligation to provide funding to Recipient for any payment or payments during or after the fiscal year for which there is a revenue shortfall. Upon execution of the Agreement, funds will be placed in a City of La Porte designated commitment account for purposes of this Agreement. ARTICLE V In the event of any default by Recipient hereunder, including, but not limited to, use of the funds provided herein for purposes other than those stated in Article I of this Agreement, LPDC may cease all future payments hereunder and terminate this 8 16