Common use of Annual Service Charge Clause in Contracts

Annual Service Charge. In consideration of the exemption from taxation for the Improvements and Land, during the Exemption Term, the Entity shall pay to the Township an Annual Service Charge calculated as the greater of the AGR Calculation, the XXX Calculation or the Total Pledged and Unpledged Calculation, as follows: (a) The annual gross revenue calculation (the “AGR Calculation”) for any given year shall be calculated as follows: i. Stage One: From the Annual Service Charge Start Date until the tenth (10th) anniversary of the Annual Service Charge Start Date, the AGR Calculation shall be 10.5% of AGR; ii. Stage Two: From the first day after the tenth (10th) anniversary of the Annual Service Charge Start Date until the twentieth (20th) anniversary of the Annual Service Charge Start Date, the AGR Calculation shall be 11.5% of AGR; iii. Stage Three: From the first day after the twentieth (20th) anniversary of the Annual Service Charge Start Date until the thirtieth (30th) anniversary of the Annual Service Charge Start Date, the AGR Calculation shall be 12.5% of AGR. (b) The taxes otherwise due calculation (the “XXX Calculation”) for any given year shall be calculated as follows: i. Stage One: From the Annual Service Charge Start Date until the fifteenth (15th) anniversary of the Annual Service Charge Start Date, the XXX Calculation shall be 0% of the amount of the taxes otherwise due on the value of the Property and the Improvements; ii. Stage Two: From the first day after the fifteenth (15th) anniversary of the Annual Service Charge Start Date until the twentieth (20th) anniversary of the Annual Service Charge Start Date, the XXX Calculation shall be 20% of the amount of the taxes otherwise due on the value of the Property and the Improvements; iii. Stage Three: From the first day after the twentieth (20th) anniversary of the Annual Service Charge Start Date until the twenty-sixth (26th) anniversary of the Annual Service Charge Start Date, the XXX Calculation shall be 40% of the amount of the taxes otherwise due on the value of the Property and the Improvements; iv. Stage Four: From the first day after the twenty-sixth (26th) anniversary of the Annual Service Charge Start Date until the twenty-ninth (29th) anniversary of the Annual Service Charge Start Date, the XXX Calculation shall be 60% of the amount of the taxes otherwise due on the value of the Property and the Improvements; v. Stage Four: From the first day after the twenty-ninth (29th) anniversary of the Annual Service Charge Start Date until the thirtieth (30th) anniversary of the Annual Service Charge Start Date, the XXX Calculation shall be 80% of the amount of the taxes otherwise due on the value of the Property and the Improvements. (c) The Total Pledged and Unpledged Calculation for any given year shall be as set forth in the “Total” column on Exhibit 8, attached hereto. In the event that the Entity fails to timely pay any installment of the Annual Service Charge, the amount past due shall bear the highest rate of interest permitted under applicable State law in the case of unpaid taxes or tax liens until paid. The Annual Service Charge received shall first be allocated to payment of the Unpledged Annual Service Charge for any given year, second to payment of the Pledged Annual Service Charge, and any remainder shall be remitted to the Township, except as provided herein in the event of a partial payment. In the event of a partial payment of the Annual Service Charge, which results in a partial allocation of funds to the Pledged Annual Service Charge, the Bondholder is entitled to recoup any deficiency, with no interest accrued, out of a future payment of the Annual Service Charge where the Annual Service Charge paid exceeds the Total Pledged and Unpledged Calculation amount for any given year. The amount permitted to be recouped by the Bondholder shall be calculated as: Annual Service Charge paid minus Total Pledged and Unpledged Calculation equals excess amount able to be recouped by the Bondholder in the event of a previous partial allocation to the Pledged Annual Service Charge. In no event, shall the amount recouped by the Bondholder exceed the Pledged Annual Service charge due and owing to that date.

Annual Service Charge. In consideration of the exemption from taxation for the Improvements and Land, during the Exemption Term, the Entity shall pay to the Township an Annual Service Charge calculated as the greater of the AGR Calculation, the XXX Calculation or the Total Pledged and Unpledged CalculationAnnual Service Charge, as follows: (a) The annual gross revenue calculation (the “AGR Calculation”) for any given year shall be calculated as follows: i. Stage One: From the Annual Service Charge Start Date until the tenth (10th) anniversary of the Annual Service Charge Start Date, the AGR Calculation shall be 10.5% of AGR; ii. Stage Two: From the first day after the tenth (10th) anniversary of the Annual Service Charge Start Date until the twentieth (20th) anniversary of the Annual Service Charge Start Date, the AGR Calculation shall be 11.5% of AGR; iii. Stage Three: From the first day after the twentieth (20th) anniversary of the Annual Service Charge Start Date until the thirtieth (30th) anniversary of the Annual Service Charge Start Date, the AGR Calculation shall be 12.5% of AGR. (b) The taxes otherwise due calculation (the “XXX Calculation”) for any given year shall be calculated as follows: i. Stage One: From the Annual Service Charge Start Date until the fifteenth (15th) anniversary of the Annual Service Charge Start Date, the XXX Calculation shall be 0% of the amount of the taxes otherwise due on the value of the Property and the Improvements; ii. Stage Two: From the first day after the fifteenth (15th) anniversary of the Annual Service Charge Start Date until the twentieth (20th) anniversary of the Annual Service Charge Start Date, the XXX Calculation shall be 20% of the amount of the taxes otherwise due on the value of the Property and the Improvements; iii. Stage Three: From the first day after the twentieth (20th) anniversary of the Annual Service Charge Start Date until the twenty-sixth (26th) anniversary of the Annual Service Charge Start Date, the XXX Calculation shall be 40% of the amount of the taxes otherwise due on the value of the Property and the Improvements; iv. Stage Four: From the first day after the twenty-sixth (26th) anniversary of the Annual Service Charge Start Date until the twenty-ninth (29th) anniversary of the Annual Service Charge Start Date, the XXX Calculation shall be 60% of the amount of the taxes otherwise due on the value of the Property and the Improvements; v. Stage Four: From the first day after the twenty-ninth (29th) anniversary of the Annual Service Charge Start Date until the thirtieth (30th) anniversary of the Annual Service Charge Start Date, the XXX Calculation shall be 80% of the amount of the taxes otherwise due on the value of the Property and the Improvements. (c) The Total Pledged and Unpledged Calculation for any given year shall be as set forth in the “Total” column on Exhibit 8, attached hereto. In the event that the Entity fails to timely pay any installment of the Annual Service Charge, the amount past due shall bear the highest rate of interest permitted under applicable State law in the case of unpaid taxes or tax liens until paid. The Annual Service Charge received shall first be allocated to payment of the Unpledged Annual Service Charge for any given year, second to payment of the Pledged Annual Service Charge, and any remainder shall be remitted to the Township, except as provided herein in the event of a partial payment. In the event of a partial payment of the Annual Service Charge, which results in a partial allocation of funds to the Pledged Annual Service Charge, the Bondholder is entitled to recoup any deficiency, with no interest accrued, out of a future payment of the Annual Service Charge where the Annual Service Charge paid exceeds the Total Pledged and Unpledged Calculation amount for any given year. The amount permitted to be recouped by the Bondholder shall be calculated as: Annual Service Charge paid minus Total Pledged and Unpledged Calculation equals excess amount able to be recouped by the Bondholder in the event of a previous partial allocation to the Pledged Annual Service Charge. In no event, shall the amount recouped by the Bondholder exceed the Pledged Annual Service charge due and owing to that date.

Annual Service Charge. In consideration of the City granting the Entity the exemption from taxation for the Improvements and Landset forth in Section 4.1 of this Agreement, during the Exemption Term, the Entity shall pay to the Township an City the Annual Service Charge. The Annual Service Charge calculated as (prior to the Land Tax Credit) shall be the greater of the AGR Calculation, the XXX Calculation or the Total Pledged and Unpledged Calculation, as follows: of: (a) The annual gross revenue calculation the Minimum Annual Service Charge plus the Pledged Annual Service Charge; (b) the Pledged Annual Service Charge plus the Unpledged Annual Service Charge (the “AGR CalculationFloor Annual Service Charge”); (c) for any given year shall be calculated as follows: i. Stage One: From the Minimum Municipal Share plus the Land Tax Credit plus the Pledged Annual Service Charge Start (provided that if such amount exceeds the Floor Annual Service Charge, the Minimum Municipal Share shall be decreased by forty percent (40%) of the amount by which the amount calculated in this Section 4.2(c) exceeds the amount in Section 4.2(b)); (d) an amount equal to (i) ten percent (10%) of Annual Gross Revenues from the ASC Commencement Date until through and including December 31st of the tenth fifth (10th5th) anniversary of the December 31st immediately following the ASC Commencement Date and (ii) eighteen percent (18%) of Annual Service Charge Start Date, Gross Revenues from the AGR Calculation shall be 10.5% of AGR; ii. Stage Two: From the first day after the tenth fifth (10th5th) anniversary of the Annual Service Charge Start December 31st immediately following the ASC Commencement Date until the expiration or termination of this Agreement; or (e) an amount equal to (i) zero percent (0%) of OAT from the ASC Commencement Date through and including December 31st of the twentieth (20th) anniversary of the Annual Service Charge Start December 31st immediately following the ASC Commencement Date, the AGR Calculation shall be 11.5% ; (ii) twenty percent (20%) of AGR; iii. Stage Three: From the first day after OAT from the twentieth (20th) anniversary of the Annual Service Charge Start Date until December 31st immediately following the thirtieth (30th) anniversary of the Annual Service Charge Start Date, the AGR Calculation shall be 12.5% of AGR. (b) The taxes otherwise due calculation (the “XXX Calculation”) for any given year shall be calculated as follows: i. Stage One: From the Annual Service Charge Start Date until the fifteenth (15th) anniversary of the Annual Service Charge Start Date, the XXX Calculation shall be 0% of the amount of the taxes otherwise due on the value of the Property and the Improvements; ii. Stage Two: From the first day after the fifteenth (15th) anniversary of the Annual Service Charge Start Date until the twentieth (20th) anniversary of the Annual Service Charge Start Date, the XXX Calculation shall be 20% of the amount of the taxes otherwise due on the value of the Property and the Improvements; iii. Stage Three: From the first day after the twentieth (20th) anniversary of the Annual Service Charge Start ASC Commencement Date until the twenty-sixth first (26th21st) anniversary of the Annual Service Charge Start December 31st immediately following the ASC Commencement Date, the XXX Calculation shall be ; (iii) forty percent (40% %) of the amount of the taxes otherwise due on the value of the Property and the Improvements; iv. Stage Four: From the first day after OAT from the twenty-sixth first (26th21st) anniversary of the Annual Service Charge Start December 31st immediately following the ASC Commencement Date until the twenty-ninth fourth (29th24th) anniversary of the Annual Service Charge Start December 31st immediately following the ASC Commencement Date, the XXX Calculation shall be 60% of the amount of the taxes otherwise due on the value of the Property and the Improvements; v. Stage Four: From the first day after the twenty-ninth (29th) anniversary of the Annual Service Charge Start Date until the thirtieth (30th) anniversary of the Annual Service Charge Start Date, the XXX Calculation shall be 80% of the amount of the taxes otherwise due on the value of the Property and the Improvements. (c) The Total Pledged and Unpledged Calculation for any given year shall be as set forth in the “Total” column on Exhibit 8, attached hereto. In the event that the Entity fails to timely pay any installment of the Annual Service Charge, the amount past due shall bear the highest rate of interest permitted under applicable State law in the case of unpaid taxes or tax liens until paid. The Annual Service Charge received shall first be allocated to payment of the Unpledged Annual Service Charge for any given year, second to payment of the Pledged Annual Service Charge, and any remainder shall be remitted to the Township, except as provided herein in the event of a partial payment. In the event of a partial payment of the Annual Service Charge, which results in a partial allocation of funds to the Pledged Annual Service Charge, the Bondholder is entitled to recoup any deficiency, with no interest accrued, out of a future payment of the Annual Service Charge where the Annual Service Charge paid exceeds the Total Pledged and Unpledged Calculation amount for any given year. The amount permitted to be recouped by the Bondholder shall be calculated as: Annual Service Charge paid minus Total Pledged and Unpledged Calculation equals excess amount able to be recouped by the Bondholder in the event of a previous partial allocation to the Pledged Annual Service Charge. In no event, shall the amount recouped by the Bondholder exceed the Pledged Annual Service charge due and owing to that date.