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CITY OF LAKE ELSINORESPECIAL MEETING AGENDA

Oversight Board

LAKE-ELSINORE,ORG(951)674-3124 PHONE

CULTURAL CENTER183 N. I\¡AIN STREETLAKE ELSINORE. CA

92530

DAVE OSTER, CHAIR

GENIE KELLEY, VICE CHAIR

GEORGE LANDON, BOARD MEMBER

NANCY LASSEY, BOARD MEMBER

IVIICHAEL WILLIAMS, BOARD MEMBER

BRIAN TISDALE BOARD MEMBER

PHIL WlLLIAMS, BOARD MEMBER

Tuesday, May 26, 2015 at 3:45 P'M.

The agenda is posted 72 hours prior to each meeting outside of the Lake Elsinore City Hall

locateã at 1 30 South Main Street and is available at each meeting. The agenda and

related reports are also available at the Lake Elsinore City Clerk's Office on the Friday prior

to the Oversight Board meeting and are available on the City's website at www.lake-elsinore.orq. Any writing distributed within 72 hours of the meeting will be made available

to the publtc at the time it is distributed to the Oversight Board. ln compliance with the

Americans with Disabilities Act, any person with a disability who requires a modification or

accommodation ìn order to padicipate in a meetìng should contact the Lake Elsinore City

clerk's office at (951) 674-3124 Ext.269, at least 48 hours before the meeting to make

reasonable arrangements to ensure accessibility.

CALL TO ORDER - 3:45 P.M.

PLEDGE OF ALLEGIANCE

ROLL CALL

PRESENTATIONS- None

PUBLIC COMMENTS - NON AGENDIZED ITEMS- 3 MINUTES(ptease read & complete a form Request to Address the Oversight Board pr¡orto the start of the Overs¡ght Board meeting and subm¡t ¡t to the Clerk The

Cha¡rperson or Clerk w¡ll call on you to speak when your ¡tem ¡s called )

CONSENT CALENDAR

1. Approval of Minutes

Recommendation: lt is recommended that the Oversight Board approve the

m¡nutes of February 24,2015.

Oversight Board Agenda Page 2 of 2Regular Meeting of May 26,2O15

2. lnvestment Reports - Januarv 2015, Februarv 2015 & March 2015

Recommendation: That the Oversight Board receive and file the lnvestment Reportsu mma ries.

3. Warrant Lists

Recommendation: That the Oversight Boar receive and file the Warrant lists.

BUSINESS ITEMS

4. lssuance and Sale of Subordinated Tax Allocation no Bonds Bv theof the

and Authorizino Certain Other Actions ln Connection Therewith

Recommendation: lt is recommended that the Oversight Board approve and adopt:RESOLUTION NO. OB-2015-OO2 RESOLUTION OF THE OVËRSIGHT BOARD TOTHE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITYOF LAKE ELSINORE APPROVING THE ISSUANCE AND SALE OF

SUBORDINATED TAX ALLOCATION REFUNDING BONDS BY THE SUCCESSORAGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF LAKEELSINORE AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTIONTHEREWITH.

5. Exchanqe Agreement With Civic Partners

Recommendation: lt is recommended that the Oversight Board approve and adopt:RESOLUTION NO. OB-2015-OO3 RESOLUTION OF THE OVERSIGHT BOARD TOTHE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITYOF LAKE ELSINORE APPROVING THE EXCHANGE AGREEMENT BETWEENTHE SUCCESSOR AGENCY AND CIVIC PARTNERS-ELSINORE, LLC

STAFF COMMENTS

BOARD MEMBER COMMENTS

ADJOURNMENT

The next regular quarterly Oversight Board meeting will be held on Tuesday, June 9, 2015,at 3:45 p.m. at the Cultural Center located at 183 N. Main Street, Lake Elsinore, CA 92530

AFFIDAVIT OF POSTING

l, Virginia J. Bloom, the Clerk of the Oversight Board, do hereby affirm that a copy of theforegoing agenda was posted at City Hall 72 hours in advance of this meeting

Virginia J. Bloom, Clerk of the Oversight Board

TO:

FROM:

DATE:

SUBJECT:

OVERSIGHT BOARD TO THESUCCESSOR AGENCY OF THE REDEVELOPMENT

AGENCY OF THE CITY OF LAKE ELSINORE

CHAIRMAN OSTER ANDMEMBERS OF THE OVERSIGHT BOARD

BARBARA LEIBOLD, SUCCESSOR AGENCY COUNSEL

MAY 26, 2015

APPROVAL OF MINUTE(S)

Recom mendation

It is recommended that the Oversight Board approve the m¡nutes of:

a. Oversight Board Regular Meet¡ng February 24,2015

D¡scussion

The following Oversight Board Meeting Minute(s) are submitted for approval

a. Oversight Board Regular Meeting February 24,2015

Prepared by Virginia BloomCity Clerk/Oversight Board Secretary

Page 1

(lf ll' t.il.

Ltì r(t LSIf l()l{tGity of Lake Elsinore

Meeting Minutes

Oversight BoardDAVE OSTER, CHAIR

GENIE KELLEY, VICE CHAIR

GEORGE LANDON, BOARD MEMBERNÁNCYLASSEy, BOARD MEMBER

MICHAEL WILLIAMS, BOARD MEMBERBRIAN TISDALE, BOARD MEMBERPHIL WILLIAMS, BOARD MEMBER

LAKE.ELSINORE ORG(951) 674-3124 PHONECULTURAL CENTER183 N. [,1AIN STREETLAKE ELSINORE, CA

92530

Tuesday, February 24, 20'15 3:45 PM Cultural Center

CALL TO ORDER

Cha¡r Oster called the meeting to order at 3:48 p.m.

PLEDGE OF ALLEGIANCE

Board Member Tisdale led the pledage of allegiance.

ROLL CALL

PRESENT: Board Member T¡sdale, Board Member Lassey, Board Member Landon, Board

l\¡ember lvl. W¡ll¡ams and Chair OsterABSENT: Board Member P. Williams and Vice-Chaìr Kelley

Also present: Executive Director Yates, Successor Agency Legal Counsel Leibold, Board

Clerk Bloom, and Adm¡nistrat¡ve Services Director Simpson.

PRESENTATIONS - None

PUBLIC COMMENTS - None

CONSENT CALENDAR ITEM(S)

1r lD# 14-470 ADDroval of Minutes

Attachmenls: OB SR- A0provinq Minutes 9-23-2014

OB l\,4inutes of g-23-2014

It ¡s recommended that the Overs¡ght Board approve the minutes of the Regular

Meet¡ng of Septembet 23,2014.

Cityof Lake Els¡nore

Oversight Board Meet¡ng M¡nutes Fehruary 24,2015

2l lD# 14-471 Warrant Lists

Attachments: OB SR- Waffant Lists 022415

Warrant List Atlachment 022415

That the Oversight Board rece¡ve and f¡le the attached Warrant l¡sts

3) lD# 14-472 lnvestment Report - Auqust 2014. SeptembeÌ 2014. October 2014.

November 2014 & December 2014

Attachments: OB SR- lnvestment Report 022415

lnvestment Reooft Attachment 0224 1 5

That the Overs¡ght Board rece¡ve and f¡le the attached fnvestment Report

Summaries'

l\,4otion by Board Member Tlsdale, seconded by Board l\4ember Williams, to approve the

Consent Calendar, passed by unanimous vote as follows:

AYES : Board Member Tisdale, Board Member Wlliams, Board lvlember LasseyBoard Member Landon, and Chair Oster

NOES : NoneABSENT: Board Member P. Williams and Vice-Chair Kelley

ABSTAIN: None

BUSINESS ITEM(S)

4l lD# 14-473 Recoqnized Obliqation Pavment Schedule (ROPS 15-164) For Julv1. 2015 Throuqh December 31. 2015

Attachments: oB Staff Reoort - AdoÞtion of Julv - December 2015 ROPS 15-164

OB Reso #2015-001 Re ROPS 15-164 022415

Lake Elsinore ROPS 15-164 Dvs

It is recommended that the Overs:ght Board approve and adoptl

Resolution No. OB-2015-001 A RESOLUTION OF THE OVERSIGHT BOARD TO

THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY

OF LAKE ELSINORE APPROVING THE RECOGNIZED OBLIGATION PAYMENT

SCHEDULE (ROPS 15.164) FOR JULY 1, 20',15 THROUGH DECEMBER 31,2015

SUBJECT TO APPROVAL THEREOF BY THE SUCCESSOR AGENCY.

City of Lake Elsinore

Oversight Board Meet¡ng M¡nutes Fett Jary 24,20'15

Adminsitrative Services Director S¡mpson presented the report to the Board He announced

that the ROPS needed to be approved and submitted to the Department of Finance by March

3.2015.

Motion by Board l\4ember Landon, seconded by Board Member T¡sdale, to approve

Resolution No. OB-2015-001 , passed by unanimous vote as follows:

AYES

N OESABSENTABSTAIN

Board lVlember Landon, Board Member Tisdale, Board l\4ember Lassey,

Board Member M. Will¡ams, and Chair OsterNoneBoard Member P. Williams and Vice-Chair KelleyNone

STAFF COMMENTS

Successor Agency Legal Counsel Leibold announced that staff would be submitted the

approved ROPS and Resolutions to the Department of Finance by l\ilarch 3, 2015 She also

stated that there may be a need to schedule a Special Meet¡ng piror to the next quarterly

meeting to address outstanding property issues and that the Board Members would be

contacted at a later date in that regard.

BOARD MEMBER GOMMENTS - None

ADJOURNMENT

Chair Oster adjourned the meeting at 3:55 p.m. to the next regular quarterly Overs¡ght Board

meeting to be held on Tuesday, June 9, 2015, at 3:45 p.m. atthe Cultural Center, 183 N.

l\ilain Street, Lake Elsinore, CA 92530.

Dave Oster, Chair

Virginia J. Bloom, Board Clerk

City of Lake Elsinore

TO

FROM:

DATE:

SUBJECT:

OVERSIGHT BOARD OF THESUCCESSOR AGENCY OF THE REDEVELOPMENT




MAY 26, 2015

Investment Report - Januarv 2015, Februarv 2015 & March 2015

Attached are the lnvestment Report Summaries of Pooled Cash and lnvestments of the

Successor Agency for January 2015, February 2015 and March 2015 Note that thoughsuch accounts include housing funds, all housing funds are held by the C¡ty as

Successor Housing Agency.

Prepared by: Barbara LeìboÌd, Successor Agency Counsel

Recom mendation:

That the oversight Board receive and file the attached lnvestment Report summaries.

Discussion:

Attachments:

lnvestment Report Summaries - January 2015February 2015March 2015

Page 1

C]ITY OI]

LAI(E LSINOREI)iì.Ë^M [XrRIMr,-

TO:

REPORT TO SUCCESSOR AGENCY OF THEREDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE

HONORABLE AGENCY CHAIRMANAND MEMBERS OF THE SUCCESSOR AGENCY

FROM GRANT M, YATESEXECUTIVE DIRECTOR

DATE: FEBRUARY 24,2015

SUBJECT: SUCCESSOR INVESTMENT REPORT-JANAURY20l5

Recom mendation

staff recommends that the Members of the successor Agency of the RedevelopmentAgency of the city of Lake Elsinore receive and file the lnvestment Report for January

Discussion

The lnvestment Report is a listing of all funds invested for the Successor Agency of theRedevelopment Agency of the city of Lake Elsinore as of the date shown on the report.

Prepared By: Nancy L. LasseyFinance Administrator

Approved By:

Approved By: Grant M. YatesExecutive Dìrector

¡lbyMa

David BFinance nager

lnvestment Report for Janu ary 2O15Attachments

SUCCESSOR AGENCY OF THE

REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE

INVESTMENT REPORT OF POOLED CASH AND INVESIMENTS

AS OF JANUARY 3I,20'I5

ACTIVE ACCOUNTS

Bank of America - Successor Agency General

TotalActive Accounts

INVESTI\¡ENTSSuccessor

Successor Local Agency lnvestment Fund

Successor CAIVIP Pool AccountSuccessor U.S. freasury Bond / NolesSuccessor FederalAgency Bond / NotesSuccessor Corporate Notes

Sub-total lnvestments

Unreaìized Gain/ (Loss) at 6-30-14 (LAIF SUC)

Unrealized Gain/ (Loss) at 6-30-14 (CAMP SUC)

Total Unrealized Gain/ (Loss) at 6-30-14 per GASB 31

Total lnvestments

Cashier Drawers #1 & #2City of Lake Elsinore Petty Cash Fund

TOTAL POOLED CASH AND INVESTI\iIENTS

DEPOSITS OUTS-|ANG BOOKBANKBALANCE IN TRANSIT CHECKS BALANCÊ

$ 5,021 ,942 $ $ (51,71r) $ 4,970,231

5021 942 - t51.711\ 4.97A 231

1 ,888,37713,535

2,162,343'1,554,663'1,418,196

1,888,37713,535

2,162,3431,554,6631 ,418,'196

7,037,114

3,236

7,O37,114

3,236

7 ,044j32

j_ _$____$]J]l) _$lÂ!!Éqq-

000000

7,018 7 018

7,044,132

$ 074

_$l2p1l,!9q_

I certify that this report accurately reflects all pooled investments and it is in conformity with the investment policy as approved

by the Members of Successor Agency of the Redevelopment Agency on November 12, 2013. A copy of thispolicyis

available in the office of the City Clerk. The pooled rnvestments shown above provide sufficient cash f low 'ìquid

ity to meet

the next six months estimated expenditures.

Jason P. Slmpson February 18,2015

Director of Administrative Servìces Date

lnterest Rate

0.262%



LOCAL AGENCY INVESTMENT FUND

TRANSACTION SUMMARYFOR THE MONTH ENDING JANUARY 31, 2OI5

Purchase Date

Daìly

Net lncrease/Decrease

$ (1,997,430)

l\4aturitv Rate

24-Hour

Beqinnino Balance

$ 3,885,807 $

Endinq Balance

1,888,377



POOLED CASH AND INVESTMENTS BY FUND

AS OF JANUARY 31, 2015

FUND NAME

Area I

Area ll

Area lll

Housing

Stadium Trust Fund

Total Pooled Cash & lnvestments

* Amount due from Successor Agency Hous¡ng Fund held by the City

2,839,368

6,062,4181,600,438

458,980

1,053,'159

12,014,363

TO:

CITY OI:

LAKE LSINODRL^M ll,11-lìl,Ml,*

REPORT TO SUCCESSOR AGENCY OF THÈREDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE

HONORABLE AGENCY CHAIRMANAND MEMBERS OF THE SUCCESSOR AGENCY

FROM GRANT M. YATESEXECUTIVE DIRECTOR

DATE: MARCH 24,2015

SUBJECT: SUCCESSOR INVESTMENT REPORT - FEBRUARY 2015

Recom mendation

staff recommends that the Members of the successor Agency of the RedevelopmentAgency of the city of Lake EIsìnore receive and file the lnvestment Report for February2015.

Discussion

The lnvestment Report is a listing of all funds invested for the Successor Agency of theRedevelopment Agency of the city of Lake Elsinore as of the date shown on the repoft.

Prepared By: Nancy L. LasseyFinance Administrator

Approved By: David BilbyF¡nance Manager

Approved By: Grant M. YatesExecutive Director

Attachments: Investment Report for February 2015



INVESTMENT REPORT OF POOLED CASH AND INVESTMENTS

AS OF FEBRUARY 28, 2OI5

ACTIVE ACCOUNTS

Bank of America - Successor Agency General

TotalActive Accounts

INVES]-I\TlENTS

Successor:Successor Local Agency lnvestment FundSuccessor CAIVIP Pool AccountSuccessor LJ S. Treasury Bond / NotesSuccessor FederalAgency Bond / Notes

Successor Corporate NotesSuccessor Certificate of DePosit

Sub'total lnvestments

Unrealized Gain/ (Loss) at 6-30-14 (LAIF SUC)

Unrealized Gaìn/ (Loss) at 6-30-14 (CAN¡P SUC)

Total Unrealízed Gain/ (Loss) at 6-30-14 per GASB 31

Totâl lnvestments

Cashier Draweß #1 & #2City of Lake Elsinore Petty Cash Fund

TOTAL POOLED CASH AND INVESTI\¡ENTS

BANK DEPOSITSBALANCE IN TRANSII

OUTSTANG.CHECKS

BOOKBAL,ANCE

$ '1,547,5851,604,557 $ $ (56,972)

1,604,557

1,888,37722,017

2,174,07 5

1,454,6931,418,196

100 000

1 ,AAa,37722,017

2,170,0751,454,6931 ,4'1 8, 196

100,000

7,053,357

3,783

7 ,018

7,060 376

_$__gÉgzpql_

0.000.00

_$__gÉqzp9l-

7 ,053,357

3,236

7,018

7,060,376

_q_______q,qø93 _$------------ -$---lþ9pz?r

I certify that this report accurately reflects all pooled investments and rt is in conformity with the investment policy as approved

by the l\¡embers of successor Agency of the Redevelopment Agency on November 12, 2013. Acopyof thispolicyis

available in the office of the City Clerk. The pooled investments shown above provide sufficient cash flow liquidity to meet


.lason P simoson f\,4alch 16,2015

Director of Administrative Services Daie

lnterest Rate

0.266%


REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORELOCAL AGENGY INVESTMENT FUND

TRANSAGTION SUMMARYFOR THE MONTH ENDING FEBRUARY 28, 2015

Purchase Date

Daily


Maturitv Rate

24-Hour

Beqinninq Balance

$ 1,888,377 $

Endino Balance

I ,888,377




AS OF FEBRUARY 28,2015

FUND NAME

Area I

Area ll

Area lll

Housing

Stadium Trust Fund

Total Pooled Cash & lnvestments

* Amount due from Successor Agency Housing Fund held by the city

AMOUNT

$ 1 ,394,5974,748,423I ,005,127

458,980

1,000,834

$ 8.607.961

CIl'Y OF

LAKE LSINORED nl:^M tlxl RIM Iì.

REPORT TO SUCCESSOR AGENCY OF THEREDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE

TO: HONORABLE AGENCY CHAIRMANAND MEMBERS OF THE SUCCESSOR A,GENCY

FROM: GRANT M. YATESEXECUTIVE DIRECTOR

DATE: APRIL 28, 2015

SUBJECT: SUCCESSoR INVESTMENT REPORT - MARCH 20ls

Recom mendation

Staff recommends that the Members of the Successor Agency of the RedevelopmentAgency of the city of Lake Elsinore receive and file the lnvestment Report for March 2015.

Discussion

The lnvestment Report ¡s a list¡ng of all funds invested for the Successor Agency of theRedevelopment Agency of the City of Lake Elsinore as of the date shown on the report

Prepared By: Nancy L. LasseYFinance Administrator

Approved By: Jason P. SimpsonDirector of Administrative Services

Approved By: Grant M. YatesExecutive Director

Attachments: lnvestment Report for March 2015



INVESTMENT REPORT OF POOLED CASH AND INVESTMENTS

AS OF MARCH 3I,20'I5

BANKBALANCE

DEPOSITSIN ÏRANSIT

OUTSTANG,CHECKS BALANCEACTIVE ACCOUNTS

Bank of America - Successor Agency Gene.al

Total Active Accounts

INVESTI\,IENTSSuccessor:

Successor Local Agency lnvestment FundSuccessor CAI\,4P Pool AccountSuccessor U.S. Treasury Bond / NotesSuccessor Municipal Bond / NotesSuccessor FederalAgency Bond / NotesSuccessor Corporate NotesSuccessor Cedificate of Deposit

Sub-total lnvestments

Unrealized Gain/ (Loss) at 6-30-14 (LAIF SUC)

Unrealized Gain/ (Loss) at 6-30-14 (CAMP SUC)

Total Unrealized Gain/ (Loss) at 6-30-14 per GASB 31

Total lnvestments

Cashier Drawers #1 & #2City of Lake Elsinore Petty Cash Fund

TOTAL POOLED CASH AND INVESTMFN'I-S

$122,139$$(51,711)$70,428

-1?,.139

-------------.- t51l^1t ?0,4n

BOOK

1 ,888 37716 969

2,250 06530,084

1,353,5941,418,196

100,000

1,888,37716,969

2,250,06530,084

1,353,5941,418,196

100,000

7,057,2457,057,285

3,236

7 ,064,344

7,018

7,0t34,304

7.O1A

$ 7,186,443 _$_-_________- _q-iþ-ull.L -L--ll3!lu-0.000.00

_9-LJ3!-J32

I certify that this report accurately refJects all pooled investments and it is in conformity with the investment policy as approved

by the Members of Successor Agency ofthe Redevelopment Agency on November l2, 2013. A copy of this policy is

available in the office of the City Clerk. The pooled investments shown above prov¡de suff¡cient cash flow Iiquidity to meet


.lason P SimÞsonDirector of Administrative Services

April 15,2015Date

lnterest Rate

O 278Vo

Beqinnino Balance



LOCAL AGENCY INVESTMENT FUNDTRANSACTION SUMMARY

FOR THE MONTH ENDING MARCH 31, 2OI5

Purchase Date

Daily


MaturitV Rate

24-Hout

$ 1,888,377 $

Endinq Balance

1,888,377




AS OF MARCH 3I,2015

FUND NAI\4E

Area I

Area ll

Area lllStad¡um Trust Fund

AMOUNT

$ 1 ,441 ,97 4

3,898,076

1,002,276

792,406

Total Pooled Cash & lnvestments $ 7,134,732

TO

FROM:

DATE:

SUBJECT:




JASON SIMPSON, ADMINISTRATIVE SERVICES DIRECTOR

MAY 26, 2015

lssuance and Sale of Subordinated Tax Allocation RefundinqBonds Bv The Successor Agency of The RedevelopmentAqencv of The Citv Of Lake Elsinore and Authorizinq CertaínOther Actions ln Connection Therewith

Recomm endation

It is recommended that the Oversight Board approve and adopt:

RESOLUTION NO. OB-2015-OO2 RESOLUTION OF THE OVERSIGHT BOARD TOTHE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF

LAKE ELSINORE APPROVING THE ISSUANCE AND SALE OF SUBORDINATEDTAX ALLOCATION REFUNDING BONDS BY THE SUCCESSOR AGENCY TO THEREDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE ANDAUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH,

Backqround

ln 2011, the Lake Elsinore Public Financing Authority issued the $5'550,000 TaxAllocation Revenue Bonds (Launch Ramp Project), 2011 Series A (the "Launch Ramp

Bonds"), of which $4,155,000 is currently outstanding, and the Local Agency RevenueBonds (Summerly Project), 201 1 Series A (the "Summerly Bonds"), of which $4,945'000is currenfly outstanding. collectively, the Launch Ramp Bonds and summerly Bonds will

be referred to here¡n as the "2011 Bonds."

The successor Agency of the Redevelopment Agency of the city of Lake Elsinore (the"successor Agency") assumed responsibility of all debt management with respect to theFormer Redevelopment Agency in 2012. Under AB 1484 and the California Health and

Safety Code Section 34177.5(a), the Successor Agency may refinance outstandingbonds, with approval from the Oversight Board and the California Department ofFinance (DoF), provided that the total interest cost, principal amount, and final maturity

on the refunding bonds do not exceed that of the prior (outstanding) bonds. ln otherwords, there must be debt service savings created by the refinanc¡ng

Page 'l

Refunding of the Tax Allocation Revenue Bonds (Launch Ramp Project)' 201 1 Series ARefunding of the Local Agency Revenue Bonds (Summerly Project), 201 1 Ser¡es Arúay 26, 2015Page 2

By Resolution adopted on May 12, 2015, the Successor Agency authorized theissuance and sale of subordinated tax allocation refunding bonds and approved the

form of an ¡ndenture of trust, bond purchase agreement, escrow agreements and

related documents. ln accordance with AB 1484 and the California Health and Safety

code section 34177.5(a), the proposed issuance and sale of the subordinated bonds isnow being presented to the Oversight Board for approval and will thereafter be

submitted to the DoF. Approval from the DoF ìs expected around mid-July.

Discussion

The proposed Subordinate Tax Allocation Refunding Bonds, Series 20'15 (the "201 5

Bonds") is estimated to have a par amount of $7.6 million with a final matur¡ty of 2038,

which is the same as the final maturity as the Summerly Bonds (the Launch RampBonds mature in 2021). The current maturities of the Launch Ramp and SummerlyBonds would not be extended and no new debt would be issued.

The final interest rate structure will be determined when the 2015 Bonds are priced and

sold. The pricing date would be targeted for mid-July, assuming that the refunding is still

economically viable. The bond clos¡ng is expected to occur in mid-August and the 2011

Bonds will be redeemed on September 1 , 2016. The 2015 Bonds will be issued on asubordinate basis to the successor Agency's other outstanding bonds. However the2015 Bonds w¡ll be secured by a pledge and l¡en on tax increment revenues from all 3of the successor Agency',s Project Areas, where the refunded bonds were just securedby single project areas.

Based on current market conditions, the refinancing would result in debt service savlngsof approximately $2.1 million. However, the total level of savìngs will depend upon

market conditions at the time of sale. Estimated annual savings wlll become availableafter the payment of enforceable obl¡gations as approved on the Recognized Obl¡gationPayment schedule ('RoPS') and will be distributed among var¡ous taxing entities such

as Riverside County, school districts, and the C¡ty.

The table below highlights the identified savings based on current market conditions.

.2O15,Bonds

Net PresentPresent Value S Refu

$700,0008%

Avo. Savinos Throuqh 2021 (Matur¡tv of Launch Ramp Bonds) $180,000Avq. Savinqs Throuqh 2038 (Maturity of Summerly Bonds) $60,000Total Debt Service Savinqs $2.1 million

*Projected sav¡ngs are based on cunent ¡nterest rctes assum¡ng the 2015 Bonds have an "4" underlying

ratiig and are solci w¡th "AA" bond ¡nsurance. Ihese rafes are subject to change based on narketcond¡t¡ons at the time of sale.

Page 2

Refunding of the Tax Allocation Revenue Bonds (Launch Ramp Project), 201 1 Series ARefunding of the Local Agency Revenue Bonds (Summerly Project), 201 1 Series AMay 26,2015Page 3

Documents to be Approved

Approval of the Resolut¡on author¡zing the successor Agency's execut¡on of certainbond documents, authorizing and directing the sale of the proposed 2015 Bonds and

authorizing and direct¡ng certain actions with respect thereto w¡ll authorize the executionof the following documents.

lndenture of Trust - This document contains the terms of the 20'15 Bonds,

including payment and redemption provisions, definition and pledge of revenuesto pay the 2015 Bonds, Rights and Duties of the Trustee, remedìes upon a

default in the payment of the 201 5 Bonds, and final discharge of the 2015 Bondsand other reìated matters.

Bond Purchase Agreement - This document contains the obligation of the

underwriter to accept and pay for the 2015 Bonds, provided that all of thecovenants and representations of the Successor Agency are met and certainother condìtions excusing performance by the underwriter do not exist.

Escrow Agreements - Agreements by and between the Successor Agency andthe pr¡or trustees to provide for the payoff of the 201'l Bonds.

Fiscal lmÞact

As illustrated on the previous page, an estimated $700,000 in net present value savingsand $2.1 million in total debt service savings will be generated by refinancing the 2011

Bonds. savings would be distr¡buted among various taxing entities, one of which will be

the city. The level of sav¡ngs will depend upon market conditions at the time of sale.

The 2015 Bonds would not be an obligation of the City, but rather the SuccessorAgency. Debt Service on the 2015 Bonds will be supported by tax revenues collected by

the County and deposited into the Successor Agency's Redevelopment Property Tax

Trust Fund. costs (related to time spent on the refund¡ng) of the successor Agency can

be recovered through the proceeds ofthe 2015 Bonds at the time of issuance

Recommendation

Adopt a Resolution authorizing the Successor Agency to ¡ssue the 2015 Bonds in the

aggregate principal amount not-to-exceed $10 million and the execution and delivery ofbond financing documents.

Prepared by: Jason SimPsonDirector of Administrative Services

Grant YatesCity Manager/Executive Dtrector

Approved by

Page 3

Refunding of the Tax Allocation Revenue Bonds (Launch Ramp Project), 201 I Series ARefunding of the Local Agency Revenue Bonds (Summerly Project), 201 1 Series AMay 26, 2015Page 4

Attachments:1. Resolution No. OB-2015-0022. Indenture of Trust3. Bond Purchase Contract4. 2O11 Summerly Project Bonds Escrow Agreement5. 2011 Launch Ramp Project Bonds Escrow Agreement

Page 4

RESOLUTION NO. OB-2015-002

A RESOLUTION OF THE OVERSIGHT BOARD TO THESUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCYOF THE CITY OF LAKE ELSINORE APPROVING THEISSUANCE AND SALE OF SUBORDINATED TAX ALLOCATIONREFUNDING BONDS BY THE SUCCESSOR AGENCY TO THEREDEVELOPMENT AGENCY OF THE CITY OF LAKEELSINORE AND AUTHORIZING CERTAIN OTHER ACTIONS IN

CONNECTION THEREWITH

WHEREAS, the Redevelopment Agency of the City of Lake Elsinore (the

"Former Agency") was a publ¡c body, corporate and politic, duly created, establishedand authorized to transact business and exercise its powers under and pursuant to theprovisions of the Community Redevelopment Law (Part 1 of D¡v¡sion 24 (commencing

with Section 33000) of the Health and safety code of the state of california) (the

"LaW'), and the powers of the Former Agency included the power to issue Bonds for anyof its corporate purposes; and

WHEREAS, the Former Agency previously entered into that certain Project AreaNo. I Loan Agreement with the Lake Elsinore Public Financing Authority (the "Authority")

dated as of January 1, 201I pursuant to which the Authority loaned the proceeds of itsLake Elsinore Public Financing Authority Tax Allocation Revenue Bonds (Launch RampProject), 2011 Ser¡es A, to the Former Agency (the "Launch Ramp Project Loan") and

the Former Agency pledged its tax increment revenues from Project Area I as thesecuríty for the repayment of the Launch Ramp Project Loan (the "Launch Ramp ProjectLoan Obligation"); and

WHEREAS, the Former Agency previously issued its $3,260,000 initial

aggregate principal amount Redevelopment Agency of the City of Lake ElsinoreSubordinate Tax Allocation Bonds (Project Area No. ll) Serìes 2011 (the "Project Area ll

Agency Bonds") and its $1,350,000 inìtial aggregate principal amount RedevelopmentAgency of the City of Lake Elsinore Subordinate Tax Allocation Bonds (Project AreaNo. lll) Series 2011 (the "Project Area lll Agency Bonds"; and, together with the ProjectArea ll Bonds, the "summerly Project Agency Bonds"); which were purchased by theAuthority using proceeds of its Lake Elsinore Public Financing Authority Local AgencyRevenue Bonds (Summerly Project), 2011 Serìes A; and

WHEREAS, the Summerìy Project Agency Bonds and the Launch Ramp ProjectLoan Obtigation are referred to collectively in this Resolution as the "Refunded

Obligations"; and

WHEREAS, on June 28, 2011, the Californ¡a Legislature adopted ABxl 26 (the"Dissolution Act") and ABxl 27 (the "OpGin Bill"); and

OVERSIGHT BOARD RESOLUTION NO. OB.2O15.OO2-Page 2

WHEREAS, the California Supreme Coud subsequently upheld the provisions ofthe Dissolution Act and invalidated the opt-in B¡ll resulting in ihe Former Agency beingdissolved as of February 1,2012, and

WHEREAS, the powers, assets and obligations of the Former Agency were

transferred on February 1, 2012 to the Successor Agency to the RedevelopmentAgency of the City of Lake Elsinore (the "Successor Agency"); and

WHEREAS, on or about June 27, 2012, A81484 was adopted as a trailer bìll inconnection with the 2012-13 California Budget; and

WHEREAS, California Health and Safety Code Section 34177 5(a) authorizes

Successor agencies to refund outstanding bonds or other indebtedness to be refundedprovided that (ì) the total interest cost to matur¡ty on the refunding bonds or other

indebtedness plus the princìpal amount of the refunding bonds or other indebtedness

shall not exceed the total remaining ¡nterest cost to maturity on the bonds or otherindebtedness to be refunded plus the remaining principal of the bonds or other

indebtedness to be refunded, and (ii) the pr¡ncipal amount of the refunding bonds orother indebtedness shall not exceed the amount required to defease the refundedbonds or other indebtedness, to establish cusiomary debt service reserves, and to pay

related costs of issuance; and

WHEREAS, the Successor Agency des¡res to issue its Successor Agency to the

Redevelopment Agency of the city of Lake Elsinore subordinated Tax AllocationRefunding Bonds, Series 2015 (the "2015 Bonds") for the purpose of refunding the

Refunded Obligations and to achìeve debt service sav¡ngs; and

WHEREAS, the Successor Agency has previously approved all matters relating

to the issuance and sale of the 2015 Bonds; and

WHEREAS, the Oversight Board desires to approve all matters relating to the

rssuance and sale of the 201 5 Bonds as required by sections 34177 .5(f) and 34180 ofthe Health and Safety Code of the State of California.

NOW, THEREFORE, THE OVERSIGHT BOARD TO THE SUCCESSORAGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINOREDOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section l. Each of the foregoing recitals is true and correct

Section 2. The issuance by the Successor Agency to the RedevelopmentAgency of the City of Lake Elsinore of the 2015 Bonds in an aggregate pr¡ncipal amountnot to exceed $10,000,000 for the purpose of achieving debt service savings inaccordance with Health & Safety Code Section 34177.5(a)(1) and the pledge ofproperty tax revenues to the 2015 Bonds pursuant to the lndenture approved by

Section 2 of the Successor Agency Resolution (as authorized by California Health and

Safety Code Section 34177.5(a) and (g)) are hereby approved as provided for in the

lndenture. The 2015 Bonds may be issued as a single issue, or from time to time in

OVERSIGHT BOARD RESOLUTION NO. OB-2015-OO2-Page 3

separate series, as the Successor Agency shall determine The approval of the

issuance of the 2015 Bonds by the successor Agency and the oversìght Board shall

constitute the approval of each and every separate series of 2015 Bonds, without the

need for any further approval from the Oversight Board

section 3. The Chairman of the oversight Board and the other officers and

members of staff having responsibility for the affairs of the successor Agency to the

Redevelopment Agency of the city of Lake Els¡nore are hereby authorized to execute

such documents and certificates necessary to assist the successor Agency in the

¡ssuance of the Bonds.

Section 4. This Resolution shall take effect immediately upon its adoption

PASSED, APPROVED AND ADOPTED at a special meeting of the Oversight

Board to the successor Agency of the Redevelopment Agency of the city of Lake

EIsinore, heÌd this 26th day of May, 2015.

Dave Oster, Chairperson,Oversight Board to the Successor Agency ofthe Redevelopment Agency of the City of LakeE lsinore

ATTEST

Virginia J. Bloom, Secretary

Sîradling Yoccn Corlson <ç R(uÍhDrnli tl 5/5/Ì 5

INDEN'TURE OF TIITIST

f)âted às of August 1,2015

by and betrveen the

SUCCESSOIì,{GENCY TO TI{D IìEDì'VìILOPMENT AGDNCYOF THE CITY OF LAKtr ELSINOIìü

MUFG UNION BANK, N.A.,as Trustce

Rclatirrg to

ÍìSucccssor Agency to the Redeveloprnent Agency of the Cily o1'Lake Blsinot'e

Suboldin¿ted Tax Allocation Refunding llonds, Series 2015

and

I)O( S()( /1?0,1256v4/100590-000I

TAIìLII OF CONTI'NTS

ARllCll,lì IDì]TERMINATION S : DEFINI.I.ION S

Findings:rrrd I)etu ln ìrrat ions....DcfinitiolsRulcs of Constructio11......................

ARI-ICLE IIAUTHORIZA'IION A.ND TE]ìMS

Â ul llolizltir¡n ol l0l5 Bontis.....'lelms of 20 l 5 Bonds..................Iì ederrrpt iorr ol20l 5 Bonds....l:on n oi'20 i 5 Bortds..................l:xtcttlirl ol Bortd¡...,..,.,.....I ralrslr:l ol' ßoDdslrxclrargc of |Jortds.............lìcgistration ol' Ilonds.............I crrrporary Borrd¡ ...,..............Ilouds Mutilâ1ed. Lost. Destfoyed or Stolcn...............lìouk-l:rtly Syslertr.................Applicability of Provisions 10 Additional Bonds........

AIìTICLE IIIDEPOSIT AND APPLICA I'lON; ,/\DDI'IION^L Dìrlll'

Is.trarrce of BorrdsApplication ofProceeds of Sale and Cellain Other'.A.niounts.....Costs of lssuallcc Iulld....................Rc.ct vcdlrir¡âr)cc of Parily Dctrt....................lssLrrncc of Strbol dilralc Detnl

lssuancc of SenioÌ l)ebt to Refirnd Existing Bonds.....................

¿.RTIC]-E IVSIICURI'IY OF BONDS: FLOW OF FUNDS

Security of Bonds; Eqì-ìal Secùritl,...Special Furd; Deposit ol'Pledged Tax Revenues ..

DcPosit of Alrrorrrls by lnrstee......Rcbatc fulld........Plovisiols ReÌating to 2015 lnsLrance PoJicyPl ovisions ReÌâting to 201 5 Reselve Policy ...

ARTICT,IJ VO ll lIìì COVEN^.NTS OF 1'H[1 SUC--C]ISSOIì AGlrrNClY

I'agc

Seclion I .01

Section I .02Section L03

,., ,,,. J

....... 3

.....16

Section 2.01

Section 2.02Seotion 2.03Scclion 2.04Scction 2.05Scction 2.06Section 2.07Sectiou 2.08Scction 2.09Scction 2.l0Section 2.I I

Scctron 2. l2

. t6...,.,. l6....... ) 7

....... 19

....... 1 9

20202021

?1

2l23

Section 3.0lSection 3.02Seclion 3.03Seclion 3.04Sect ion 3.05

Seclion 3.06Seclion 3.07

23

2323

247424z4

Section 4.01

Section 4.02Seclion 4.03Section 4.04Seclion 4.05Secl ion 4.06

......75

......25

......25............................. 28............................. 30.............................30

Section 5.0l l)uuctLral Payment

I)(.t(lSO( /l 70425(rv4/200590-000 I

30

Section 5.02Section 5.03Section 5.04Section 5.05Seclion 5.0(r

Scction 5.07Section 5.08Section 5.09Section 5.10Section 5.11

Section 5.12Section 5.13Seclion 5.l4

Limitation on Atiditlonal Indcbtedress; Agâinst llncunlllranccs ..

Fxlcns ion ofl'a¡ rt,.tt1 ..........l'a¡ rrent o f C la irrrs...........................Boolts and Accouuts; lìinancial Slatenìents...........Plotectior olSeculity aud Ilighls o1'C)wncrs

Payuleuls o1'Taxes ancl Othel Chalgcs.....lrratiurr of Lea.cd Plopo t¡Dispo.iriorr of Plopelty..........Maintenance of Pledged Tax Iìevenues.....Tax Covcnanls....Continuing lJiselosurc...........Compliance with tlìe Dissolution Act....f ultlrcr AssLrrenccs ..................,.,...........

AIìTICLE VI'fllll l-RUSTE,E,

Duties. Illrnrünities and Liabillties ofTluslee ...

Melger oI Consolidatìr.'rr,.....Liabili¡ ol I 1rrstcc..........................lìight 1o Rely or'ì Docunlerts ancl Opinions .......Preservatiou and Inspectiou of I)ocumettts .......Compensation and lndelnnifioatiorl...................Deposit and Investme¡rt of Moneys in Fuuds....Accoulting Records and Fiuancial Slateurenls .

Olher Tlansacliorrs willr A gency

ARTIC]LE VIIMODIFICATI ON OIì AMENDMENI' O!''I'HI S INDENTU RE

Amendrnent Wilh And'Witlrout Consenl o1Ownets................Ellect oî Supplernental Indentul e ....

Endorselnent ol Replacerneut of llonds.A.lìel Amcudmcnt.....

^rìrcndnìcnl by Mutrnl Consc 1...............

Opiniorr of Corrrrscl.........................Copy of Supplemental lndentute to S&P and Moody's...........

Section 6.0lScction 6.02Section 6.03Section 6.04SecLion 6.05Section 6.06Section 6.07Section 6.08Section 6.09

Sectiou 7.01

Sectior 7.02Seclion 7.03Section 7.04Section 7.05Section 7.06

Section 8.01

Section 8.02Section 8.03Seotiou 8.04Seclion 8.05Seotion 8.06Section 8.07Seclion 8.08

...,.,41

......42............... ...., ,.,..... 42... .... .. ........... .... .... 42............................ 42.......................,.... 42

AIì'I'ICI-E VIIIEVENI'S OF DEFAULI'AND REMEDIES OF OWNI]IìS

Eveuts of DefaLrlt and AcceÌelatiou ol'MatLuities.....Application of Funds Upon Aooelelation ..................Power ol' T[rìstee to Control Pt oceedings..................Limitatìon on Owner''s Right to Sue..,.....Non-Waivc1 ........Actions by -ltustee as Attot ney-itr-Fact..,,..Rcniedies Not Exclr¡sive....l)etell¡ination of Pcrceutage olBondowttels........

,......,..43..........44.,....,.,.45..........45..........45..........46..........46,..,...,..46

DOC,SO('/l 7042-s(^,4/200590-000 l

Scction 9.01

Scction 9.02Section 9.03Section 9.04Seclion 9.05Section 9.06Section 9.07Section 9.08Sectior 9.09Scctior 9.10Section 9.I ISection 9.I 2

......46

......47

......41

......48

...... 4 8

...,..49

......49

......49

......49

... ... 5 0

... ... 5 0

...... 5 0

ÂR]'IC]I,Li IXMI SCELLAN IJOU S

lìcnefirs I irnitcd to l'altiesSL¡ccessol is Dcened Included in All Refelcuccs to Predecessol ......

I )isclrulge ol' IndcntulcExecutiou of Documcnts aud Proof of Ownclship by (Jwners.......,..,

Dirqrralilìed llortds ..................Wlivcl of I'cr':,¡ral L ia bililv.............Dcstrucliolr of Crncellcd 8onds..................Noticcs................Pallial Invalid ityUnclaimed Moucys........,.,..Ilxecution in CouDtelparts ..

Coverning Law...................

EXI.ìIBIT A FORM OF 2OI5 I]OND,,.. ...,..4-l

DO('SO( / I 7{)4256v4/200590-000 I

INDENTUIìE OF TIìUST

THIS INDENTIJRE OF ]lìUS1- (this "lndertule") is made and cnterecl into and cla(ed as of

^rìglÌsr l. 2015. by and berwccn the stlcclESSOIl AGIINCY TO Tlll,i IìII)EVEI.OPMENT

^GENCY OF l'Hli Cll-Y OF LAI(li IìI.,SINORE. a public entity duly exisling u¡der the l¡ws of lhe

S1a1e of Califolnia (the "Successot Agency" or "Agency"), as Successol' Agency to the

Iìedeveìopnrent Agclcy ol'the City of Lake Elsinolc (thc "Irol trlel Agellcy") ancl MUF'G UNIONBANI(, N.4., a uational lranking association olganized and existirg uudet the laws of tlle United

States of Amelica, as tlustee (the "Ttustec"):

WITN]ISSBTTI:

WHìIIìEAS, prior to its dissolution (as desclitred below). the Iìolmer Agency was a publicbod¡r, colporate and politic, duly establisherl and authotized to tlansact Lrusiuess and exelcise powets

under and pulsuaut to the ¡rrovisions of the Clornmunity Redevcìopureut ì,aw oI the Stale ofCalifo|nia. constitutilìg Part I of Division 24 ol'thc Ileâl1h alld Safely Codc ofthe State (as antended.

the "Law"), incJuding the llower to issuc bonds and jltcLtl c{ebt lol any of i1s corporÍìte PUlposes;

\ryHìtIìBAS. a Redcvelopnrelt Plan lol the Rancho Laguna l{edevelopment Ploject AreaNo. I (the "Project A|ea I") ofthe lìotnrer Agettcy was adopted on Scptenber'30. 1980, pursualìt to

Ordinauce No. 607. as subscqueutly anrendcd in conrpliance rvitlr all lequilemeuts oi the Law, aud

all lequiletne ts of law lor âud precederìt to the adoplion and appfoval ofthe Redevelopmellt Plan, as

aurended. have beeu duly compliecl with;

WHEIìEAS. a Rcdeveloprnenl Plan for'the Rancho Lagu a Reclevelopment Pfoject AIcaNo. ll (the "Ploject Area ll") of the Fotnret Ageucy rvas adopted on JLrly lJ. 1983, pulsuant toOlcliuance No. 671. as subsequently anrended in com¡rliance with all lequilements of the Law. attd

all requirentents of law lot aud plecedent to the âdoption and approval ofthe Redeveloprrent Plan. as

allended, have been duly complied rvith;

WHEREAS. a lledevelopment Plan îol the Rancho Laguna Redevclopme ut Pl o.ject AreâNo. Ill (the "Ploject Area III"I ancl. together with the Pro.iect Alea I attd Ploject Alea Il, the "l'rolectAteâs") ofthc Formet Agency rvas aclo¡:rted on September'8. 1 987. pLrlsLrant to (frclinance No. 815. as

subseqùeutly amended iu compliance with all lequìrements of'the Law. and all lequiletreuts of law

fol and precedent to the adoption and a¡:rploval of the Iìedevelopnrenf Plan. as allended. llave been

duly complied wìth;

WHEIìEAS. the Formel Agency ¡rreviously erteled into that certajn Plo.iect AreâNo. I Loan

Agleemcnt wlth the Lahe Elsinole Public Financing ,Atìlhorily (thc "Authority") tlated as ofJanuary l. 2011 pLrlsuant to which the Aì-Ìthot ity loaued the ploceeds of its 2011 L,aunch Rantp

P|oject Bonds (delined below) to the lìorltrel Agency (lhe "Launch Raurll Projeot L,oaì") and the

Forrrer Agcncy pledged i1s tax ircrerÌel'ìl l'cverlucs lìtm Ploject Alca I as the security fòr the

lepaynrent ofthe l.,trunch Raup Projeol Loân (thc "l,aunch Iìamp Plo.jecl Loal Obligatioll");

WHERìIAS, the Fo|mel Agency prcviously issLred ils $3,2ó0,000 jnitiâl âggregale p[incipalamount Redevclopirìent

^gel'ìcy ol'the Clity of Lahe lllsinole Suboldinate 'fax Allocation Bonds

(Ploject Alea No. ll) Series 2011 (1he "Pro.jeo1 Area II Agenc¡, Bonds") and ils $1,350.000 initialâggregate plincipal anrount Redcvelopnìent A,gcrlcy o1'the City of Lahc.Elsiuole SLrboltlinale Tax

l)o(lSO( / I 70425(^,4/200590-000 I

Allocation Bonds (Plo.ject .A.tea No. lll) Serics 20) I (1he "Pro.iect Alea III Agency llonc{s"; ¿rtld.

together wjth the Proiect A.reâ Il Agency Bonds, the "Stttlltlerly Pr.o.iecl Agency Bonds"), whichwcr.c pur.chased by the Authorily using ploceeds of its 201 I Sumnclly Plojecl lìonds (defined

below);

\ryI-lEIìEAS, by irrplenrentation of' Calilolnia Assenrbly Bill Xl 26. which amcnclecl

plovisiorrs o1 the Law. and the Calilonria SLrplenre Cloull's decision in Califõrnia Rcdet,eklntenllss¿cittlit¡¡ .r. Mctlosoulos, the lìolnter Agettcy was dissolved ou Iìebtuaty 1,20)2 itt accotdance

with Califollia Assentbly BilJ X1 26 apploved by the Govelnor ofthe Stâte ofClalifolnia on Julle 28,

2011 (as amencled. the "Dissolution Act"), ancl on Feblùary 1. 2012, the Succcssol Agency. irr

âccol.dânce with ancl putsu¿ìnl to tlte Disso[rtion Ac1, assurìed tlìe duties and obligations of the

For¡er Agency as provided in thc DissolLrtion Act, inoJuding. without lilritatiolt. the obligations ol'thc Fornlel Agency under the Existing Bonds (as defined herein) and the relâted documents to whichthe Folrlel Agency was a pal ty;

WI{DREAS, Section 34177.5(aXl) of the Califo¡nia I'lealth and Salè1y Code autholizes the

Successor. ^gency

to under'lake ploceedings fol the telinding of outstalding botttls aud otiret

obligations of the Former Agency. sub.jecl to thc conditions precedent colltâilled ilt said

Section 34177.5;

WIIIDREAS. said Section 34177.5 also autlrorizes tlle Successol' Agency 10 issue bol'lds

p¡rsuaut 10 Article 11 (coumencing with Scction 53580) of fìhapter'3 of Patl 1 of Divisiotl 2 ofTitlc 5 of the Goven]r'ì]ent Code (thc "Relìnding [,aw") lol the purpose of achieving debt scrvice

savings within the pârametels set lorth in said Section 34117 .5.

WHEREAS. in oldel to plovide moneys to refuncl lhe Rcfunded Obligalìons (as defined

lre¡ein) fol tlre purpose of ploviding debt selvioe sâvings il'ì accoldanoe with Sectiotì 34177.5(a)(1).

the Successol' Agency has detcrtnìned to issue its Successor Agency to the Redevelopment Agencyofthe Cit¡' of Lake Iilsinore Sui:oltlirated Tax Allocation Refunding llouds, Series 2015 (the "2015Bonds");

WIiBIIEAS, thc 2015 llonds will be issued pulsuant 10 and jn accolclance wilh tlieprovisiorrs of Section 34171.5(a)(11 of the Câlifornìa llealth and Safety Code. the Lâw and the

Reiunding L,aw¡

WHIIIìDAS, the 2015 Bonds, and any adclìtiorraÌ Pality Debt. will be payable l'r'om Pledged'Iax Revenues (as defined heleiu), and the plcdge of Pledged Tax Revetlues to the payment of the

principal of aud interesl on the 2015 llonds will, as ap¡rlicable, l¡e on a basis sttboldinate to the

Succcssol' Agency's pledge ol specific tax inclerìreut leveurres 10 tl'ìe rcpayment of the Existi gBouds that retraiÍl outstânditrg aftel the issuancc of the 2015 Bonds, fas well as paymettts rcquiteduuder the Priol Agleerucnts. the l-lousing F und Loans, the Pass-'l'hlough Agleemellts alld the setìiot'

Statutory Pass-'l-lrtough Anountslt

WI'IDRDAS. in ol del to plovicle lòr' thc autlrelticalion and dclìvery of the 201 5 Bottds, toestablìsh and declale the terms âud oonclitions npon which the 2015 Bonds ale to be issuecl alld

securcd and to secure tlte pâl'¡lerìt of the plincipal thereof'ancl intelest ald redelrptioll prentitrm (ifa¡y) thereon. tlte Succcssor Agency anc{ the lìïstcc have duly authorized the execution and delivcryof this lldenture; and

zI)OCSOC/ l 704 25(rv4/200590-000l

\ryHtrR.nAS, the Successor Agelcy has detelrìined lhal all acts artl ploceediugs lequiled by

law necessar'¡, to lrahc tìte 2015 Bonds when cxecuted try the Successol Agency. and authellticaled

ancl delivelecl by thc Trustee. the valid. binding and lcgal s¡recial obligations ol'the Successot'

Agency. and to constitute this lndcnlure a legal. valici and binding agreelrellt fot the t¡scs altd

purposcs helein set folth in accorclarlce with ìts telms. lravc bcen dol'ìe or lal(en:

NOW, 'IIIDREFOIÌE, 1'I{IS INDENTURE WITNESSETH. that in ordet to sectìre tlìe

payment of the plincipal of and the interest ¿ìud tedemption ptetniutn (if any) on all the Bonds,

including the 2015 Bonds. issued and OUtslanding undel this lndeutLrte, according to their tetlot. aud

to secule the performarce and obselvance of all the covenants and collditions therein and heteirt set

for.th. and to declale the lenlts and contlitions upou and sub.iect to rvhioh the Bonds. including tlte

2015 llonds. are to be issLrecl and lcceived. and in consicietation of the ptenrises atrd of thc urutttal

covelìarìts helein containcd and of the purchase and acceptance of the Bonds. including fhe 2015

Bolds, try the Owners theleol and lor othet valuable consider-atiolls. thc leceipl of rvhich is hcreby

achnorvledgetl. the Successor Ägency and the Trustce do her-eby covenar'ìt and agree with oltc

anothcr', fo¡ the benefit of fhe les¡reclive Owners fiom tiine to tilÌre of lhe Bouds, ìncluding tlte 2015

Bonds. as lollows:

A]ì1'ICLE I

DETIIIìMINATI ONS; DEFINITIONS

Seclion 1.01 Findings atrd l)cte rminations. The Successor Agency has Ieviewed ¡llptoceedirrgs heretofore laken and, as â result of such review, hereby finds altd delerntines that allthings, conditions a:rd acts lequircd by law lo exist. happen ot be petforured plecedelìt to and jn

couneclioll u'ith the issualce of thc 201 5 Bonds do exis1, have hapPened alìd have lreen pefot med itt

due tinre. folnr aud lnânlleL as rcquirecl by law, and the Successor Agency is now cluly enlpoweted,pulsuâut to each aud evely lequirement of law. to issue the 2015 Ilonds iu the manner aud fornr

plovided in this I udenture.

Scction 1.02 l)elinilions. lJnless the oorìlext othel\.vise requiles. the te|tns defined ill this

Scctiou 1.02 shall, lol alJ pur'¡roses oithjs Indenture, of any SLrp¡rlenrental lndentule, and of auy

cer'(ificatc, opinior oI othel docur¡ent hereiu mentioned. have lhe nreatlitlgs helein specified.

"Authorily" lncals the Lalte Elsinore Public Firancing ^uthority,

a joilt porvets agettcy

lolnred prrrsuanl to Califolnja Govellìnìellt Code Scctions 6500 el seq., ill which the City and

Successor Agency ate memlrels,

"Bontls" lìeans the 2015 Boncls attd atty Parity Debt issued âs lrollds ptìlsuant to â

Supplementâl Indenture.

"Iìond Counscl" rleans (a) Stlacllilg Yocca Carlson & Rauth, a Professional Colpotatiott. or(b) any othel attontey or fil nt of attomeys appoìnted by ol accepta ble to the Successor Agcncy, o1'

nationally-r'ecognized cxpclience in the issuance of obligations tl'ìe irìterest on which is excludal¡le

fi orr gloss income for federal iucome tax pul'poses ulldel the Codc.

"Bond Ycar" nreans each twelve (12) month peliod cxlctttling ftrtnt Septertttret l in otre

cale¡dal year to Septenber' I ofthe succeeding calencìat year'. both dates iuclusive; provided that the

3

I)O( SO( /l 704256v4/2r)0590-000 l

filst Boncl Year with rcspcct 10 the Bonds shall oommence on thc Closing Date and end ott

Septenrber l, 2015.

"lìusincss l)ay" mcans any day. other thalì a Satulday ol Sttnday ot a day on whichcontnercial banlts in New Yorl.. Ncrv Yolk, ol an¡, othel city ot cities whele thc Principal ColporateTlusl Office ofthc lì Ltstee is localcd ale requilecl ol autholizecl by law to close ot a day on which the

lìeclelal Reselve Systenr is closed.

"Cily" nieans the Cily of Lai<e Illsinot e.

"Closing l)ate" means the date ol which a selies ofllonds is deliveled by tlte Successor'

Agency to the oliginal pulchasel lhcleofì The Closing Date with tespect to lhc 20I5 Bonds isAugust _, 201 5.

"Continuing Disclosure Certificate" Dreâns tl'ìâl certain Clortinuing Disclosu|e Ce|tificate,with rcspect to the 2015 flonds, executed by the Successol Agency, as orìginally execuled and as itnay lre anrended l'r'om timc to tiure in accoldance wilh the terlns thercol

"Costs of Issuancc" ueans all itens of expense ditectly ol indilectly payable Lry or'

leinrbulsable 1o the Succcssol Agency rclatirg to the aulhorizatiou, issuauoe, sale and delively ofthcIìonds. including but not Iimited 1o plinting expelses. bond insurance and sutely bond ¡rrenriums. ilaly. r'ât¡l'ìg agency fèes, filing and lccolding fees, initial fees and ohalges and filst aunual

atlulinistlative fec of the 'lìustee and fees ard expel'ìses of its counsel, fèes. chalges ancl

disburserrel'ìls of attonleys, financial advisols, accounting lìrms, consultauts and olhet ptoiessionaJs.

fees and charges for'¡rrepalalion. execution and safekeeping ofthe Bonds. adnìin¡slrâtive costs oftheSuccessol Agency aud the City inculrcd in connection with the ìssuance of the llonds. expenscs ofthe undet wliters of the llonds. the fees and expenses oi counscl to the uudet wt itels ol the Bonds, aud

âny othel cost. charge or fee in conncction with the original issuanoe ofthe llollds.

"Cosfs of Issuancc Fund" ureans the lund by that name established and held by the 'lì us1ee

pìrrslìalìl to Sectior 3,03.

"County" treans the Cìounty of Iìivelsìde.

"Deb1 Scrvice Furrd" nlealìs the fund try thal nalne established and held by the Trusteepulsuâr'ìt to Section 4.03.

"Dclcasance Obligalions" lneans any of thc lollowilg which. at the tine of invcstllleut, ale

legâl il]vestlÌeuts undel the laws of the State fbr the mone¡rs ploposed to be invested lherein and alcin corrpliancc with the Successol Agency's ¡uvestlì.ìent poJicies then in el'flect (plovided that tbe

lìUslee shall be entitled to lely upon auy investureut directiou fiolr the Successol Agcncy as

conolusive celtification to the 'lluslee tl'ìat ilÌvestrrellls desclibed thctein ale legal and ale inconrpliance rvìth thc Successol Agency's investnìeul policies then in eflèct), bLtt only to thc cxtent

the same ar-e acquited at Fair Malliet Valtle:

(a) C-ash:

(1,) IìedeÍal SccUlities. includirg direcl obligations of the Tleasury whiclr have

been shipped Lry the'lìeasuly ilsclf, CA'l S, TIGRS anci sitnilat sect¡r'ilies:

4DO( SO('/l 704251¡v4/2rn590-0f)0 I

(c) 'l'l'ìe interest corlpollent of lìesolLrtion Funding Cor'¡:rotation stlips which have

been stlipped by lecÌuest 10 the Fcderal Reserve Bank of New Yor]r in booh-enlly fotm¡

(d) I)r'e-refundcd mLrnicipal boltds raled "Aaa" by Moocly's and "ÂÂA" by S&l',provided thâ(. if (hc issue is tated only by S&P (i.c., thele is tlo Moociy's râting). thell lhe llrc-lefìlncletl nrunicitrtal bonds nust havc lreen ple-r'efuuded with cash, dilect U.S. ot U.S. gLralanlccd

obligations. ol AÂA latcd pre-rel-unded mulricipâls; al'ìd

(e) Bouds. debentutes, tìotes or otÌrel' evidence of indeì:tedness issued orgualanteed by âny ofthc following I'edela) agencies and plovided sLtch obligations ale backed by the

full laith ancj cledit ofthe United States of Aurelica (stripped seculilies are only ¡rclmittcd iÎ they

have bccn stlipperì by tire agency itsell): (i)tiitect obligations ol fttlly gualanleed ceftificâtes o1'

beneficial owuelship of the U.S. IlxporFlurport Banh; (ii) certificates of beneficial owuctshi¡t of the

lìalmels l lontc Adnt iristlation; (iii) paLticipation certificates ofthe Gelelal Setvices Adut inisll ation I

(iv) Irederal Financing Ilanli bonds and debentules: (v) gualanteed Title Xl lìnarlcings of thc U.S.

Mar.itinte Administlatio¡I and (vi) plo.ject noles. local âutholity bonds, nerv corrnrunities clebentt¡tes

and L.l.S. pLrblic housing noles and bonds of the U,S. Depal tlrcllt of llousing atld lJtballDevelopment.

"Dc¡rartrncnt oflìinancc" means the Depârtrìrellt o1 Finance ofthe Stâte of Calilornia.

"Dcpositoly" means (a)initially. DTC. and (b) any other Sectllities Deposiloly acting as

Depositoly pùrsuant to Section 2.I 1 .

"Depository Systenr Partici¡rant" nreans any palticipant in the Depositoly's booh-ent|ysystcr'ì.ì.

"I)issolution Act" meaus Calif'onlia Asseurbly llill X1 26 apploved by the Govetttot of the

State of Calìfotnia on June 28. 201l. as it has heletofore lreeu anlended and as it may heleaftel be

anrended.

"DTC" meaus'fhe Depository'Itust Cotnpany, New Yoll<, New Yolh. antl ils sl-lccessols allcl

assigns.

"Evcnt of Default" lreans any oithe eveuts described ill Seotion 8.01.

"Existing Bontls" uleans:

(i) Arrthority's 1995 SeriesA Tax Allooation RevenLrc Bolds in the o|iginalprincipal âmount of $13,345.0001 Autholity's (1995 SeriesA Refunding) 2010 Ser'ìes u in thc

or iginal pr incipal amount ol'$10,855,000;

(ii) Aulhority's 1999 Se|iesA 'lax Allocalion Revenue lloncls in the oliginalplincipal anounl of Xj33.450.0001 Autholity's (1999 SeriesA Refundirrg) 2010 SeliesC in lhe

oliginal plincipaJ anounr ol' $29,43 5.000:

(iii) Autho|ily's 1999 Se|ies B 'fax Allocation Revenue Ilords in the oliginalplincipal anount o1' $580,000 (fully matuled);.1

t)(X SO( /l 704256v4/200590-000l

(iv) Authority's 1999 Scries C 'Iax Âllocation Iìevclue Iloncls in the originalpr'ìnoipaì aurount of !ì14.180,0001 ALì1hoti1y's (1999 SeriesC Rcfundìng) 2010 SeliesÂ in the

oligina I principal amount ol$15.435,000:

l(v) Arìthority's 1999 SeliesD lax Allocation Revcnuc Boncls in the origlnalprinci pal arrourl of' $3 -3

0.000 (ful ly niatuted) ll

l(vi) the Lalie ljlsinole Recreatio Authority's 1997 SericsA Rcvcuue l]ouds(Public Facilities Ploject) in lhe orìginal principal amount of$14.680,000 (with the uudetstaudingthat Agetìcy's otrligations wilh respect to said bond issue alise out ol the Atrendecl al'ìd Restâted

Reinrbulscmcnt Agreements between Agenoy and City dated as ol' .luly I . 2000, lbr Plo.iecl Are a ì.Ploject Âr'ea II and Ploiect Area lll)l andl

(vii) any refundiug bonds or obligations issued to relund Existing Bottds in

Sections (i) thlough (vi) hereol ol lefunding Lronds thereoi if such lefulding borcls ale issL¡ed on a

Iieu senior to the lien ofthe Bonds and rreel the tequitenreltts ofSection 34177.5 oîrhc l,âw.

"Ilair Marhct Valuc" ¡leans lhe pr'ìce at which a willing buyct woulcl ptrlchase the

itìvcs1menl i-r'om a wilJing seller in a bona fide. allr's length tlallsaction (detetninetì âs 01'the date

the conlract to pulchasc ol sell the investr'ì.ìeÍìt becoures binding) if the investmerrt is ttaclecl on an

estat¡lished seculilies nrarhet (within the rneaning ol'Section 1273 o1 the Cìodc) and, othe¡wise. the

teln "!'ail Malltet Value" lreaus the acquisition ptice in a bona fide atnr's length tlarìsaclion (as

lelèrenced above) if (i) the iuvestnìenl is a certificate of de¡rosil that is acquircd ju aocordânce witllapplicable legulations under the Code. (ii)the irìveslment is au agtcetrert with specificallynegotialecl withdlawal or reirlvestlrent provisions and a specifically ncgotiated ir)terest râte (1or

exarl¡lle. a guaranteed investlrellt contract, a lorwâld supply contlact ol othcl investlleltt âgleenlent)that is âcquired in accoldance with applicable regulatiotrs under thc Code, (iii) the investurent is a

Llnited Slates Tleasury Security--Sta1e and Local Govelnment Series that is aoc¡uìr'ed iu accoldancewith applicable legulations of the United States Buleau of Public Debt. or (iv) aly comtlingledinveslnìenl fi-lud in which the Successol Agency and related pattìes do no1 own rÌìore thân a len

percenl (I00¿) bcncficial itterest therein if the retùln paid by the lund is rvitÌroLrt tegald 1o lhe soutcco1' the investl'ìlcr'ìt.

"Federal Securities" meaus any dilect. noncallable genelal obligalions ol1he Urìited States

of Autetica (including obligatious issued ol held in book-ently lotnr on the books ofthe Depattureutofthc Treasuly ofthe tJniled States of Aurelica and CAI-S and'Ì-GRS). ol obligations lhe payment ofplincipal of and intelest on whicÌl are dilectly or indireotly guar-anteed by the tJnitcd States ol'Anrc¡ica.

"Fiscrl Yeal'" ureaus a¡ry twelve¡ronth peliotl beginning on July J iu auy yeat atld

exlencling to tÌte next succeeding Juue 30. lroth dales inc]usive. or any other lwelve rronlh period

selected and designated by the Succcssol Agency to tlìe Trustee in wliting as ils o11ìcial fiscal ycarperiocl.

"Formcr Agency" ntcans the now dissolved Ileclevelopnrenl Â.genc¡, of thc Crt¡, of Lahellls inole.

"lftlusing Funtl L,oans" ureans

6ll()('S( )('/l 70425(rv4l200590-000 I

"Intlcnturc" rreans this lndentule of Tlust by and bctween the Successor Agertoy and the'l'¡Ìstee, âs oligiually enleled iuto ol as it may be amended ot sup¡rleuettted [r¡, any Srrpplerrental

Inclentule elllered into ptìrsuant 1o the ¡trovisions heteof.

"lndc¡rendcnf Accountâ1t1" nleaus âny accoulttânl ot film of sttclt accoùnlan[s cluly liccnsed

or.rcgistelerl or entitlcd to placlice as such undel the laws of the Sfatc. âppoinled by the Successot'

Agency, aucl u,ho. or each of whottt:

(a) is in Îacl independent and not uudel domination ofthe Successol Agelìcy orthe Cìit¡,t

(b) does not have any substautial intelesl. tiilect or ìnclilect. rvith the Successor'

Agency ol the City: ald

(c) is not coulìected with the Stìcccssot Ageucy ol thc City as an ollìcel ot'

err¡tloyee ofthe Successol Agcncy ol the Clity, bu1 who may Lre tegulatly retained to lral(e reports to

the Successor Agency ol the Cìity.

"lndc¡re[denl Rctlcvclo¡rrncnt Consultant" Ineâl]s âny cousultant ol lìrnl of stlch

consr¡llants âppo¡nted by the Successol Agcucy, and rvho, or each of whom:

(a) is.judged by the SLrccessol Agency to have ex¡relience in mattels |elating tothc colleclion of Plcdged I'ax Revenues or olherwise with les¡rect 1o thc fiuancing of redevcloltmentpro.jects;

(b) is in fact independenl and uot undel domination of the Successot Ageucy orthe Cìilyl

(c) does not have any substantial intercst. direct or ¡ndirect, with the Sr,rccessol

Agenc¡, ol the CitY; and

(d) is not connectcd with the Successo| Agency o| the Cit¡, as an officcl ol'

em¡tloyee ol'lhe Successol Agency or the City. but who nay be tegulatly Ietained 1o utal(e reports to

tl'ìe Successor Agency ol the City.

"luformation Seruices" means, ìn accoldance wilh then cuttcrt guidelines of'the Scctltitiesancl ììxchange Conrmission. such selvjces providing infolrration with respect to the redemption ôl'

bouds as the Srìccessor Ageucy rrav designate iu a Wlitter lìequest ofthe Successor Âgency filedw¡th the lì ustee.

"Iusurer" means the 2015 lnsurel and, as applicable, lhe ptovidel ol'a urttnicipal lroud or'

firancial gua|anly jnsur'¿nce policy with respect to Parity Debt.

"I¡tcrcst AccouÌrt" means the account lry tl'ìat r]an'ìc cstatrlished and held by the 'lìtrslee

llursrrânl to Scction 4.03(a).

"Intcrcst Payrneul l)âfe" nleâtls eaoh Malch I ancl Scpterllbel l, courmcncìng lMatch 1,

2016i. fol so long ns any ofthe Bonds temain Outslaudiug hetcuuclct.

7I)O( S(ì( /l 7042-s6v4/200590-000 I

"Law" nreans the Cìot]]nrunily Redevc)opment Law oll the Statc, constitutiug Palt J ofDivision24 o1 the llealtlt and Salè1y Code of the State. ancl the acts arrenclatoly tlteleof alld

supplemental thcreto (including the Dissolution Acl).

"Maxinrunr Aunr¡al Dcbl Scnicc" u'ìeaus, as ol1hc cìate of calcLrlalion. the Iargest anìoull1

lol the cullent ol any future Boud Year payable on thc 2015 llonds ot an¡, Patily Debl in such IlondYear'. For'¡tur'trtoses of sucÌt calculalion. tlre allounl of intercston anylJonclsot olhet Pality DcLrtthat

is payable fiom the ploceeds ofsuch Bonds ol Pality Debl that is set aside solely lot such putpose

shall uot be included iu the calcLrlation of Maximunr Ännual Debt Service, ancl thele also shall be

cxcluded paytreuls with respect to the 201 5 Bonds oI any Pal'il,v Debt 1o the exteut thiìt anrounts due

witlr respect to the 2015 Bonds ot sr.rch Parity Debt ale ¡rlepaid of othelwise disohalged inaccordance with this Indentu|e or the relevallt PaIity Debt lDstrunlenl.

"Moody,s" rleans Moody's Iuvestot s Scrvice and its successors.

"Nornincc" means (a) initialÌy. Cede & Co., as nomiuee of DTCI. and (tr) any othel nonrtnee

ofthc f)epository designated prìrsuanl 10 Section 2.1 l(a).

"Oufstanding" when usecl as of'any parficular litrre with Iefelcncc 1o llonds. treans (sub-ject

lo the plovisions of'Section 9.05) all Bonds except:

(a) Bor'ìds 1lìeletofote canceled by the lìtìstcc ot strtleudeted to the Tltìslee for

and

cance llat¡onl

(lr) l3onds paid or deemed to have bccn paicl wilhin the nteattiug of Sectìorl 9.03:

(c) Bonds in licu ol or in substitntjo¡r for which othel Bouds shall have been

aul)rorized, executed, issued and delivered by the Successot Agelcy pt¡lstìant hereto.

"Oversight Boârd" lÌrealls the Ovcrsight Iloald of the Successor Agertcy established

pursuant to the Sectiou 34179 ofthe Dissolt¡tion Act,

"C)wner" or "Bondowncr" neans. with respect to al'ì)/ Bond. the pelstill in rvhose nanre the

ownership of such Bond sltall be legistcled on the Registl ation Boohs.

"Parity Debt" n]eaÍìs alry additional bonds. loars. advallces or indebtedness issued or'

inculled by the Successot' Agency on a parity with the 2015 Boltds lltrlsuallt to Section 3.05.

"Parity Dcbt Instrumcnt" rrìeal'ìs lesolutjou. iuclentLne ollrusl, sttpplenental indeutule ofhùst. loau agreei]ìetlt. tlìis1 âgleemelìt ol other iustlument autholizing lhe issuauce of any Parityl)ebl.

"l)articipatiug Underrvliter" has the meanilg ¿rsclibed thercto iu tlrc Cìontiuuiug DisclosuleCcrtificate.

"I'ass-Tlrrough Agl'cemcnts" neans the fbllowing agleemcnts cntered into Lrctwee¡ tlte

Folnter Agency and varions taxing agencies with respecl to lhe aliocalion and tlansfèr' ol'cerlainRcvcnues ft'om Pro.jecl Alea I. Plo.iect Area ll ancl Ploiect Atea III:

8ì.)O( SO(l/ I 704256v4/100590-000 I

(i) tl'ìe Dccember 27, 198. Anlendcd Agteelletlt by atld anlottg the City. thc

Agency aud the lllsinole Valley Municipal Walel Distl ict for l)ro.iecl ^reas

I and Il;

(ii) the January 10, l9fl4, Clooperativc agreenlenl by atld auroltg the City, the

Agelcy and the lìjvelside Counl, Irlood Conllol and Waler Clonsclvatior Dis1licl fot Pto.ject Areas I

and ll:

(iii) the Febtuaty28, )984. Agt'eetlent by attd auroug the City. the Agency ând

the ljlsinore Water Dislrict I'ot Ploject Atea III

(iv) the Feblualy 28, 1984. Cooperatìou Agrecll.ìent by atrd atlrotlg the City, the

Agency and the County of Rivelsidc fol Plo.iect Alea ll,

(v) the Aplil I 1 . 1 984, Coopclaliou Agl een'ìent by aud among tlte City, tlteAgency and the Elsinole Valley Cemetcly Distlicl fol Plo.iect A.r-ea ll;

(vi) the April I l . 1 984. C-'oope t atiorl Agl eeme nt try aucf anrong the City. the

Agcncy and the Lahe Elsinole lìeclcatiott atld Parii Distlicl lol Plo.ject Alea Il.

(vìi) the Juuc 14. 1987. Coo¡tetalion ^glecmcllt

by ancl amotlg thc City. the

Agcncy and the M1. San Jacinto Community Collcgc Distr'¡cl fol Pfo.jecl Area Ilì;

(v;ii) the June 14, 1987. Cooper'âtion Agreemcllt [ry ald anlong the City. the

Agency and the Ëlsinole Unron High School Jlistlict 1'ol Ploject Alea llll

(ix) the Juue 14. 1981, Coopetation Agreentelll lry aud aulotrg the Ci1y. the

Ägency and the Lake Elsinole School Dist'ict lor Plojcct Alea Ìll:

(x) the June 14, 1987, Coopetation Agleerìlellt by and auoug the City. the

Age ncy and the Riverside Counly Offioe ol llducation 1òr' Plo.iecl Alea lll;

(xi) the June I4. I988. C-'oopetation Agl ee nretrl by atld auroug the City, tlte

Agenoy and the Elsirore Iìecreation and Par'lt District lor PIo.iect Alea lll;

(xii) the Junc 14. 1988. Amendecl Coopelation Agleemenl by and among the City,the A.gency and the Elsinorc VaÌley Municipal Water Distl ict fbl Plo.ject Âr'ea Ill;

(xiii) the June 14. 1988, Cooperation Agteetlletlt by atld aurong the Ci1y, the

Agency and the Elsinore Water Distict fol Plo.iect Alca lìll

(xiv) thc Juue21. l98c), Coopetation Agreeurenl lry aud at oug the City. thc

Agency and the Riverside Couuty Flood Control ¿urcl Water ClonseÌvâtion District lol Plo.ieot

Är'ea IIII and

(xv) the Januar'¡, 23. 1990. Cìooperation Agleenent by ard arnottg the City. the

Agcncy and the Counly ol'Rivelside lor Proiect Area llì. as said agtecmcnt was anrerded on ot al¡ottt

Fcbluary 8, 1 994.

"Pcl.mitted Iuvestments" rre¿ìrìs ar'ìy ol'the 1'ollorving which, at the litre of invcsllltetìt. âre

legâl ¡rìvestu]euts uucler the laws ofthe Slate for the nroneys ¡rtoposed 10 []e il'ìvested theleitl and are

9l)(l( SO( /l 7{)425(^,4/200,590-0001

il contpliance with the Successol Agency's investnlcut policies then in ellect (plovided that theTrustee sÌrall be entitled to |ely upon âny ir]veslnleut dileotion fiour the Successol Agency as

conclusive cer'lification to the 'lìustec that ilveslmenls descliLrcd thclcjn are legal and ate iltcompliance wìtit the Successol Agcrcy's investuleut policics then in cffect), but only to the extent

the sanre ale acquired a1 Fair Malkel Value:

(a) Iiedelal Secut ities;

(b) Bonds. debenlulcs. uotes ot othel evidence of ìndebtedness jssued ot'

guâr'ânteed by any oltlre following ledelal agencies and plovided sr"rch obligations ale ì:ached by thefull laith and c|edit of thc Llnited Slates of Amelica (stLipped secu|ities a|e only peflìritted jf theyÌrave been shipped by the agcncy itself): (i) clireot obligatiols ot lully guatantced cetlificates ofbeneficial ownelship ol the U.S. Ilxporl-lmport BanJr; (ii) oertificâtes oI beneficial ownership of theFarmers Honre Adniin istlationt (iii) I'ederal lìousing Administlation debellturesl (iv) participationccl tificates of tbe Gerelal Selviccs Administlation; (r,) Feclelal lrinancing Bank bonds and

debentules; (vi) gualanteed moltgagc-baclied troncls or guarantccd pass-thloLrgh obligalions of GinnieMae (fornielly kuown as the Govelun'ìert Nalionâl Mortgâge Association)l (vii) gualanteecl Title XIfinancings of the U.S. Malilime Âdministlatior; and (viii) plojecl notes, local autÌìorily bonds, newconn.ruuities debentules ancl U,S. 1;ublic housilg notes aud bonds of the U.S. Depaltment o1'lloLtsirrgaurl Urban Devclo¡rmeut;

(o) l3onds, dcbentules. notes ol othcr evjdenoe of ildebledness issued ot'

gualanteed by any of the f'oilowing non-full fàith and cledil LJ.S. govelnment agencies (stlippedsecurities only as stlipped by the agelcy itseil): (i) scniol debt obligations ollhe Federal l-lome LoauBank Systern; (ii) participation certifìcates and scnior debt obligations of the Fedetal I'lome LoanMortgâge Corpolation; (iii) nioltgaged-baclied secul ities and senior dcbt obligatious of Fannie Mae;(iv) seniol debt obligalions of Sallie Mae (folnelly hnown as llre Student Loan MarketiugAssocialion); (v) obligations of the Resolution funding Corporationi aud (vi) consolidated systeni-wide bonds and rotes olthe Falm Clredit Systenl;

(,J) Moncy tnar'Ìiet firnds registeled uucler the Fedelal lnvestmelìt Cornpar'ìy Actof 1940. whose shales are regìstelecl under'1he Fcdelal Seculities Act of 1933. and haviug a rating byS&P of at least A.A.Am-G, AAAm or'ÂAm, ancl a lating try Moody's ol'Âaa, Aal ol Aa2. includingsuch lunds lol whjch tl'ìc lìustee, its allìliates or. subsitliar'ìes provide investnent advisory or other'

nlaÍìageu'ìelrt selvices ol f'ol rvhich the Trustee o;. an aÎfilìate of the Trustee selves as investlnentâdrìinislrâtor, shaleholdel selvicìng agent. and/or cuslodian or subcustodial'ì, nolwitltstanding tltat (i) the

Trlìstee or an alfiliate 01'the frustce leceives fèes fioul lunds lol selvices tendeled. (ii) the 'Dustee

oollects lees fol selviccs leldered ¡rulsuant to this Indentule, which fees are separate lrom the leesreceived fiorl such funds. and (iii) selvices ¡rerlolmed fbl such hrnds aDd pln.sllant to this Ìndentule rnay

at tiDres duplicate those p|ovided to such fìrnds by the Tlustee or ân affilìate 01'lhe 'l'rustee:

(e) Celtificates ol- deposìt (including those of the Tmstec, its parent alld its

alfiliates) secured at all lines by collatelal dcsoljbecl in (a) or (b) above ol by collateral that may be

used by a national bank for pulposes of satisfyilg its obligations 1o collatetalize putsuant to federallaw, which have a matulity uot greatel lhan onc yeiu lì'om the dale ol invcstment and whjch are

issLred by conrmercial banlis, savilgs and loan associ¿ttions or l'ì1ulual saviugs bauks;

(f) Certilìcâtes ofdeposit. savings accounts. clcposit accounts or l.rìol]ey lllalketdeposits (inclLrding those ol the lìustee and its affiliates). bLrt only to tlìe exteut that the amount

t0ì)O( SO( / l704256v4/200590-0001

being ìnvested in such cc|ti1ìcates of deposit. savings accor-ruts. clePosit acoouìrts ot uone¡, uratli.et

dcposits ale lully insuled by FDIC, including BIIì ancl S.AIFT

(g) lnvestmctìt âgreenlenls, including gua|anlced investnÌeut conttacts. lotwa|clpulchase agreenents. r'eselve hlncl ltut âgleenlenls ancl collatelalized invcslmert âgreenìents wilh an

en1i1y rated "Aa" or bettel by Moocly's alcl "ÂA" ol beltel by S&P, ol unconditionally gLtalanteed b¡,

ân entily râted "Aa" ol ì:ettel by Moody's and "ÄA" or better by S&Pi

(h) Couurelcial pâper rated. at the tine of'ptltchase, "Prilne-1" by Moody's and

"A- 1 +" ol bettel by S&P;

(i) llonds ol nofes issued by any state ol niunicipality which ale lated by

Moody's and S&P iu one ofthe two highesl tating categolics assigrred lry suoh agenciesì

(j) Fcdelal lìrnds ol banl<c¡s accelltanccs with a nraxinrum terur ofoue yeat ofany bank which has an unseculed. uninsulcd aud ungualantecd o[rligation lating oi"Prinrc-]" ol'

"43" or bettel by Moody's. and "A- lt " by S&l); and

(k) l'he l,ocal Agcncy lnveslnlent Fund that is adnrinislered by thc Californta'Iìeasulel fol the iuvcstlreltt o1'hrnds belonging to local agencies wilhin the State of Clalifolnir.provided thal lol inveshlent of funcls held by the -lìus1ee. the Tìustee is entitled to makc invcstrrenlsand withdlawals in its own nâme as Trtìstec.

"Pledgcd Tax lìevenues" means ail l¿ìxes that wele eligible fol allocation to the lìolmerAgeucy with respect to the Ploject Aleas and are allocated to the Successor Agellcy pulsì-ìant to

Aúicle 6 of Chapter 6 (comDrencing with Seot¡on 33670) of the Law aud Section I 6 of Artjcle XVIofthe Coustitution ol'the Stale, ol llursì-ìan1 to other applicâble State laws al'ìd that âre deposited in

the RPTTF, excluding (i) the portion of' st¡ch taxes lequiled to pa¡, debt service oD the Existìngllonds. bul only to the extenl that sucÌr taxes we|c pledged to tl'ìe paylrent of deLrt service on theExisting Bonds. (ii) payments requited ¡tutsuaut to the Pliol AgreeÍnents, (iii) fpaynrents lequiledpursìianl to the Pass-'l hrougl'ì

^.glccrÌenlsl, (iv) lpayrrletìts requited put'suant to the Housing Fund

Loans,l aüd (v) all Statutoly Pass-'l'h|ough Arroullls unless such paymellts are suboldinaled topaynteÌìts on the 20I 5 Bonds oI au¡, atlditional llords ot to tlle payments owed under any Pal ity DcbtIl'ìstrumeut pursua¡rt to Seotion 33607.5(e) ol'the Law aud 34177.5(c) of lhe Dissolutioll Act.

"l'r.incipal Account" means the account by thât nalne cstablished ald lteld by lhe Tlusteepursuaut to Section 4.03(b).

"Pli[cipal Cor¡roratc Tn¡st OlTicc" means lhe corporate tlnst olfice of the Tluslcc in L,os

Augeles, Calil'olnia, ol such otirel ol additional ollces as the Tlustee may designate in writing to the

Successol Agency l-r'on.r time to time as thc corpolate ttust office for putposes of the lttdctttulelexcept that with lespect to plesenlalior] ol'Ilontls fol' paymc t or for registlation of llansfel ancl

excharge, such lenl'ì means tlre office ol agcncy of'the Trustcc at which, at ally parlictìlar tin'ìc, its

corporate trust agency busincss is condtlctcd.

"Plior Agrecme nfs" rreans thc lollowing:

(i) th¿ìt certâin Laiie Liìsinole Redcvclopnrenf Plo.jecl Wal-Malt Shoppiug CentelOu,uer Palticipatiou Agreell. enl by and lrelween 1he Agency ¿urd Oak Grove Equitics dâted âs 01'

llI)O( S{)( /l 70/1256\'41200590-000I

Malch I2, I993. as clalified Lry the paltjes pltrsuaut to tlìat cerlain lcfler to Mt. Bob Boolte fir¡rtlGlesham, Savage, Nolan & Tilden. t-LP. dated October 6, I998. regaldrng stloh Agleement;

(ii) that cetlain lìedevcloprrent Disposition and Develo¡rntet'ì[ Agreenlctì1

(Wal-Mart Plo.ject) by and l¡elwccn the ^gel]cy

and Wal-Mart Stotes. Inc.. dated Malch 12, 1993' as

clat.ifie cl t¡y the panics pLtrsuaut fo that cer'lain lettel lo MI . Bob Iloole It ottt Grcsham. Savage, Nolan

& Tilden, LI-P. daled October' 6, 1998. r'egarding stlch ^.gleemellt;

(iii) thât cerlaill C--oopelative Agreel'ìlelìt lly alìd betweelì the Agency and the

Elsinor.e Valley Municipal Walel District of Rivelside Coìrnty dated as Match l S. 1993. r'elaling to

Amber Rìdge ;

(iv) thât ccrtain Owncr l)alticipation Agteement (Lahe lìlsinole Factory lìetailOutlet Pro.ject) try and betweer the A.genoy and Glen Illvestols. Inc . dated Decembel 26. 1989;

(v) that certâin ^greclnerlt

10 Fill arìd Opelale Lakc lìlsinole by and atlottg the

City. the Age ncy antl lllsinolc Valley Municipal Watel District dated Dece mbel I 9. I991 I

(ui) that oerta¡lt Joint l)r'oject Fuudirg Ägleement (Mission Tfail) by artl antottg

the Counly of lìivelsiclc. the City and the Agenc¡, dated June 13, 2000; ancl

(vii) thâ1 cettain Settlemeut Agleement Lry ancl auong Califorlia llank &'lìt-tst (as

the sucoessor-in-interest to Filst Pacific National Banl<). the City and the Agency datcd

Dcce¡nbeL 10.2007, iu selllen.ìcut of the nl¿ìlter of CalifòrnÌa Bank & 'lrust v. Cùy ct/ Loke Elsinore,

City rl l,akc Elsinore lìeclcvelapnent AgeLtc_y, Ccunelcf Properllt Counselot's, Inc., el al.. Rivelside

Supelior Cìourt Case No. 344190.

"P¡oject Areas" rreans the redeveloprnent Ploject Aleas described in the RedevelopttteltPla:rs.

"Qualifictl Iìeservc Account Cledif Instrument" meâns (i)the 2015 Reservc Policy, ancl

(ii) an i¡r'evocable standby ot dilect-pay lettel of credit, insutallce policy, ol sulely bond issued by a

conrnrelcial b¿ul< ol insuranoe conpaÍìy and deposited willì lhe Trustee. plovided tlrat all of the

l,ollowing recluir.entents are me1 âl thc tilìe of acceptance thereof lry the TIIìstcc: (a) S&P or'

Moody's have assigned a long-tetlll crcdit latillg to such ballk or insulance colnpâl]y l]1"4" (withoutr,ega¡d to ¡rodifier') ol higher; (b) such letter of cledit. insulance policy ol sutety bond has a terltl crÎ

at leâst 12 months; (c) such leltel of credit. iusuranse policy or surcry lrorld has a stated alìrount â1

least equal to the pollion of tlte Iìeservc lìequilerrent wilh respect to whioh lunds ate plollosed to be

r.eleased: and (d)the TlUstee is aulhorized pursùant to the terms ofsuch lellet ofcredit, illsuLatlce

policy or.surety boncl lo dlaw thereuudcl al anroulìt equal 1o any delìcìeuoies which may exist fìonltitne to tiue iu the lnterest Accorìul ol the Plincipal Acoounl lot the purpose of naliing payntetlts

Iequi|ed pursuant to Sections 4.03(a), a.03(b) or 4.03(c) oftlris Indentule.

"Rebate Furrd" ntcaus the 1ìrnd Lry that namc lefeleuced in Section 4.04 of'this lttdcntttle.

"Rebate llegulatio¡s" r'neans the fiual TreÍìsury Regulatious issued uttcìel Section 148(1) o1'

the Codc.

12I)OC-\O( / 1704 2 5óv4/200590-00(l I

"ìlecognizetl Obligation Payrnenl Schcdulc" means a lìecognized Otrlrgation Paynlcl'ìtSchedu le. each ¡r'epared and ap¡rr ovecl fi om tiulc to tìrrre puÌ suant to subd ivision (l) of Section 341 77

of the Cìalilòr'nia lleâlth ârìd Saletv Cocle.

"lì.ccord I)ate" nreans. with rcspect to any Intclcst Paynrent Da1e, the close ol'business on

the lil'tcenth (l5th) oalenclal day ofthc nonth pleceding such luterest PaymeLrt Date. whether or not

st¡ch liftccnth (15th) calendal clay ìs a Busiuess Day.

"Iìcdcrn¡rtiorr Account" rreans the account by tlìat rìalre establlshed alil lreld by the'lirsteeprìr'suaut to Section 4.03(d).

"Ilcde vclo¡rmcnf Obligation RetiÌement Fund" ureans the fund by tlìat narììe estalrl¡shedpursuânt to Califolnia llcalth and Safety Code Section 34170.5(b) and administeled by the Succcssot'

Âgency.

"Iìe develo¡rmcnt I'lans" means the redevelopmeut plans l'ol Ploject Alea I, Project Alea Iland Plo.ject Alea III of lhc l'olurel Agency in Lahe Illsinote. Califolnia. as heretolote auendecl ancl

as rray heleafiel L¡e anrcnded in accordance rvith the larv.

"Rcdcvclo¡rrncn t Plojccts" means the undeltakir'ìg of'lhe Successol Agcncy pursuaut to theReclevelo¡rmcnt Pla¡rs ancl the l-aw {'ol the tedeveloprtent ofthe Plojecl Aleas.

"Ilctlevclo¡rrnenf Plopelty Tax Tntst lund" or "RPTTF" ureans the fuud Lry that ranecstat¡lished pursuân1 10 Calilòr¡ia FlealtÌr & Salety Clode Scctions 34170.5(a) and 34172(o) and

administeled by the Aud itor'-Controller of the County oiRivelside.

"Rcfìrnded Obligalions" meaus the Lauuch Ratlp Pro.ject l.,oan Obligalion and the

Sunrnelly Plo jeot Âgency Bonds.

"Refunding Lan/ nears ,Alticle I I (corntlencing with Seclìon 53580) of Chapter'3 ofPart I of Division 2 of Title 5 ol'1he Government Code of the Stale. and the acts amendato|y thereofand supplementcd thcleto.

"Registt'âtion llooks" rreans the recolds uraintained by the Ttustcc pusuant to Scction 2.08fol the legistration ¿urtj translèt of owuetsÌrip ofthe Bonds.

"ììeport" r'neans a doculuent in wliling signed by an lndependent Redevelopr. eul Consultantand includ ing:

(a) a slalculeut that the pelson or fir'm making ol giving such lìepolt has tead the

pertiuelÌt plovisions of lhis Indeuture to which such Repott relates;

(b) a Lrricl' stalenlenl as to the Dâ1u¡e and scope of the examinalion orinvestigation upon which thc Repolt is basedl aud

(c) â state elt that. in the opinion ofsuch pelsoll or'1Ìrm, sulficien1 examinationor invesligatiou was madc as is necessaly lo cnalrle saiti cousullant 10 cxllless an inl'otucci opinionwith respect lo the sr"rbjcct matter Ìcfellecl 1rl in the Reporl.

13I)OCIS( )( /l 704256v4/2r)(1s90-{J0{) l

"lìescrve Account" nleans the account Lry thal l'ìarì'ìe cstablished and helcl by fìle lìtìsteepursuârlt [o Seclion 4.03(c).

"llcsen,e lLequilement" nreans. sub.iect to Section 4.02(c) of this lndenlule. w¡th respecl to

the 20 I 5 llonds. anci each sclics of P¿ìril), Debt issued jn the I'olrtt of Bollds, the lcsser of

(i) 125% of the average Annual Debt Selvice u,ith lcspect to that series 01'the

Il o nds.

(ii) Maximunr Annual Debt Service wilh lespect to tltat scries of the Ilonds. oI

(iii) with rcslleot to au individuâì series ofBonds. l0% of the oliginal plincipalantount of a seljes of lSonds (or', ilsuch selies ofBonds has urole than a de nriuinris amounl ofoliginal issuc cliscounl or plemium, l0% ofthe issue pricc ofsuch series ofBonds);

plovidccl. tltat il no event shall the Suooessor' Â.gency, in counection wilh the issr¡ance of Parity Debtin thc lòtm of Ilonds pul'suant to a Supplemenlal Indcntule [re otrligaled to deposit an amount in the

Resetve Accor¡ut rvhich is in exccss ofthe ân1oLrl'ìt permitted by the applicabìe lrtovisions ol thc Clode

to bc so dcposilerì lì our the ¡locccds oftax-exeurpl bonds without hâving to restlict the yield ol'anyil'ìvesltìleut pulcìtasetì with any portiou of such deposit and, in tlre event the Íìrrourìt of any such

cleposil inlo thc lì.esel ve Accor¡nt is so lilrited, the Resel vc Requirerrent shall. in connection with theissuaucc ofsuch l)âtity Debt issucd il the form ofBonds. be inoleased only by the anroLrnl ofsuchdeposìl as pelntitted by rhe Code; and. plovided fi-l lher that the Sucoessor Agency nray nreet all ot a

por1ion of the Reselve lìequirenrcnt by depositing a Qualified Iìeserve Account Credil Illslrumcntn.ìeeting the lequilernenls of'Section 4.03(o) lteleof.

"lìeyenues" shall have the rleauings assigned to such temrs in the Existing ludeututes.

"S&P" means Standald & Poor's Financial Selvices LLC, a division of McClaw llillIìinanoial, and its succcssols.

"seculitics Depositories" neans The Depositoly Ttust Courpauy, New Yorlt. New Yollil0041-0099, Fax-(212) 855-723?: or. in accoldance with thcn culrent guidelines o1'the Secut ilies and

Exchange Clotlntission. such othcl addresses and/or such othel seoulities clepositoties as lhcSuccessol Agenoy nray designate iu a Vy'ritten Request of the Successol Agency deliveled 1o thc

Tl ustce.

"Semi¿nnual Period" rneans (a) each six-ntortth peliod beginning ou Jattuary I of any

calendal ycal ancl encling on .lune 30 of such calendar year', aud (tr) each six-uronth ¡reliocl begin:ringon Jnly I ofany calendat ¡,ear aud eudiug on Deccmtrel 3l ofsuch calendat year.

"Serial lìonds" nreans all Bouds othel than Teltr Bonds.

"Special Fund" rlcans the lL¡nd helcl by the Successol Agellc)/ established purstìan1 toSection 4.02.

"Stâtc" meâl'ìs thc State ol'Calilblnia.

"Stâlutory I'ass-'l'hl.ough Arnounts" nreâns alrorìl]ts lcquired to Lre paid to 1âxing âgencies

lrulsrìânt to Scctions 33607.5 and 33607.7 o1'the Law.

l4I)O( SO( /I70425óv4/20059(l-(100 I

"suborclinate Dcbt" mears art¡, loans. advances or indetrterlness jssued ol incLrrlcd by the

Successol Agcnoy ¡tulsLrant 1o Section 3.06, rvhich alc eitber': (a) payable ltolr. bul no1 secttled lry a

pleclge of or lien upon, the Pledged 'fax Revenuesl ol (b) sectlled by a pledgc of ot lierl upon the

Plec{ged Tax lì.cvenues which is expressly sr¡boldinale to the pleclge o1'and Iicn ttpon the Pledged Tax

Rcvcnucs hcl.er¡nde| for the secu|ity ofthe 2015 Bolds. the Existing Boncls and âny Parity l)ebl.

"Suþordinatc l)ebt Instrumcnt" rreans any inslrtìr].ìcnt provlding lot thc jssuance ol-

Subord inate I)et¡t.

"Su¡r¡rlemcntal Indenturc" rnea'ls any rcsolution, agrecll.ìent ol olhet ittslrument which has

beel duly aclopted ol eutered into by tlre Successor Agency. bu1 only if ancl to the exlcnt that srrch

Supplcmcntal lndenlule is specilically attthorized heleuncler.

"Tax Ccúificatc" neans that certain Tax Celtifìca1e executed by the Successot Agcncy rvith

respect to the llonds.

"Tclm llontls" means (i) the 2015 Bonds maluting otl Septetrbet , 20 , and

Seplentller l. 20 . and (ii) that portion ofany olhel Bouds payable fi.om nratrdaloty sittkittg accouut

pâyn'ìer'ì1s.

"Tr.ustee" meatrs MUF'G Union Banlt. N.4., âs tftÌslee hcrcuncler. or any succcssor thereto

appointcd as tlustee helcunder in accotdance wilh the ptovisiorls of Alticle VI.

"Written lì.equest of thc Successor Agency" or "Written Certificâtc ol'thc Successot'

Agency" rreans a request ol certificate. in wlitrng signed by the Adrrinistlafor or'Iìeasuret of the

Succcssot. Agency, or the desìgnee ofeither. ol by any othel officcl ofthe Successot Ageucy ot the

Clity duly aLrlholized by the Succcssor Agellcy foÌ that purpose.

"2011 Launch Ramp PI'oject Bonds" means the $5,550.000 initial aggregate plincipalauro¡¡l Lake E,lsinole Pr.rblic Fi:rancing Aìithority Tax Allooation Reveuuc Bonds ([-auuch RatlpProiect). 201 I Selies A.

"2011 L¡unch Ramp Projcct Loau Agrecment" llìeans lllat ceftâir Pto-ject Area No. I l-oan

^gleeu]cut Lretrveen lhe For,nel agency al.lcl the Autholity dated as ofJantlaty I. 201 I.

"2011 Summcrly Pl'oje ct Bonds" lneans the $5,365.000 initiâl âggregate ¡lrinoipal amoullt

Lal<e lìlsino¡e Public F inancing Autholily Local Agency Reveuue Bonds (Suurruct ly Ptoiect). 201 1

Sclics A.

"2011 Sumnrel.ly Projcct lndent[rcs" means (i) lhat ceItaìI ìuclenlure dated as of Aplil I,201 l. between the Fo¡me¡ Agency and tl'ìe Tnìstee, as lluslee, reJating to tlte Plo.iect Alea ll AgencyBouds a¡tl (ii) that celtain lndenture dated as of April l. 201 l. Lretween the Folnìer Agcncy and the

Tlrìs1cc, as tluslee, relating to the Pro.ject Alea Ill Agency Bonds

"2015lnsurancc Policy" ureans lto con]el.

"2015Insurcr" rleans fto corle].

"2015 lìcscrve Accounf Agrcentcnt" lÌealls fto conre],

l5llO( S(X / I70l12-56v4/200-590-00(l l

"2015 Rescl'r'e Policy" means lto comeJ

Scction 1.03 llulcs of Constluction. All lefcrcnccs hctein to "Articlcs." "Sections" and

other subdivisions alc to tl.ìe colresponding Allicles, Seclions ol subdivisions oithis Indentule. ancl

tire wt¡r'ds "helein," "heleof." "heleundel" and othel wolds of simìial imporl r'cfcr'1o this Indcntulc as

a whole ancl not to al'ìy pallicu lar Alticle. Section ol subdivision heleo|

AIITICLII II

ÀUTI{ORIZATION AND TEIìMS

Sectiou 2.01 Authorizâtion of 201-{ lìonds, The 2015 Bonds are heleby ar"rlholized to bcissued by the Successor

^gency unde| a d sulr.ject 1o the lerms of this lncìentLlle, the RelLrnding Law,

the D¡ssolution Act aud the Law. This Indcnture collstitutes â continûiug âgreerìrenl rvith the Owue|sol'all ofthe Ilonds issued or to be issued hereunder and theu OLrtstandiÌg to secLrre the fLIII ând finâlpayment of plincipal and redemption plerliurns (if any) and tlle intelesl on all Ilonds which uayfiom ti:re to time be execuled and deliverecl heleuuder. sulr.jeot to the coveuants. agleenlelts.plovisions and conditious herein contained. Such inltial issue of Iloncls shâll trc designâted the"Succcssor Agcl'ìcy to the Redevelopment Ager'ìcy of the Cìi1f ol l-ahe Illsinolc SLrbolclinated 'l'ax

Allocation Refunding Bonds, Serìes 2015" (the "2015 Bonds"). l'Ìre 2015 llonds shall lre issLred inthe initial aggregate plincipal anroulìt of

Scction 2.02 Temrs of2015 Bonds. The 2015 Bonds shall be jssLrecl il hrlly legisteredfbnl without coupous. The 2015 Bonds shalÌ be issLred il delonrinations ol$5.000 or âny inlegr'âl

multiple theleof, so long as no 2015 Bond shall have mole thân olle rrâturity date. 'l-he 2015 Bondsshall bc dated as of theil Closing Date. The 2015 Bonds shall be letteled aud ruml¡ered as the'lirstee shaII plescr-itre.

'l'he 2015 Bonds shall lnaturc and sÌlall beal intelest (calculatecl on 1he basis ofa 360-dayyear comprìsed ol'twelve 3O-day months) at tÌre late per âr'ìnum as f'ollows:

MrÍuÍil! D te(Septentlter 1)

PrincipnlAttlounl

htleresÍR(îe

DOCSO(l/ l ?114 256\,4/200590-000 I

t6

Each 2015 Bond shall beâr interest 1ìoiìr the Irtelesl Pâymenl t)ate ncxl ptcccding tlìe date ol'âLìlherlticâtion theleof, unless (a) it is authentìcated âfler a Iìecotd Date and on ot beîole the

follorving luterest Pâynrent Date. in whioh event it shall lrear iutclesl flol]r such lntelesl Payr]rerìt

Date; or' (b) il is authenticated on oI beflo|e [Feblualy 15. 20]61. in rvhjch evenl i1 shall bcar interestfionr its C-'losing Datel plovided. however. thal il. âs ofthc dafc oi ¿ì u thenticâlio n of'any 2015 l3ond.jutei'est thereon is in default, sr¡ch 2015 llo¡rd shall bcal intelest fìtm 1he lnletesl Paynrel'ìt Dafe torvhich intel est has previously been paid or u1âde âvâilable for paymcllt tllereol,

lltterest ou the 2015 Bonds (including the final iulcrcst piìynrenl upôrì nì¡1ur¡1y olledemplion) is payable when due by chcck or dlall of the Truslee urailcd ou the Intelest Paynrent

D¿rte to lhe Ownel thelcol at such Orl,ner''s addless as it ap¡reals on the Registlation Books at the

close ol'business on lhe pleceding lìecord Date; plovicled thât â1 the written request of the Ownel ofât Ieast fi1.000.000 agglegatc plincìpal anlouul ofthe 2015 Ilontls, which wlilten reqùest is olì filewilh the'ù'ustee as ofany Record Date, iuleresl on sLrch 2015 llonds shall be paid on the succeeding

Iutcrest Paytrert l)ate to such account ill the tjnited States as shall be specifiecì in such writtenlequest. The plincipal ofthe 2015 Bolds aud any ¡rremiunr upon ledemption. ate ¡rayable in lawiulmoucy of the Unitecl Stales of Anerìca upon preseutation and st¡r'lcutiel thereof at the PlincipalCor'¡:rorate l'l'ust Office of tl'ìe Trustee .

Section 2.03 lìcdem¡rtion of2015 Bonds.

(a) Ootioual lìedempliou. The 20 I 5 llonds maturing on or pfio| to SePtember I .

201251 are tìot sutr.iect to optional redemption. The 2015 l3ouds rlatuling on ot after Septenilrel l.201i,26)^ are sub.iect to oplional redemption pliol to their respectjve rrâ1uli1y dâtes as a whole. ol ìn

palt by lot, on any datc ou or al'tel Seplernbel 1.20[25], b¡, such matulily ol maturities as shall be

ditected by the Successor Agency (ol in atrsence ofsuch dileclion. plo lata by matulily and by lotwithiu a niaturity), h'orn any soulce of available funds. Such optionaì rcdetlption shall be at a

redentption plice equal to 100% of the pÍincipal alrount to be ledeer.ned. plus accnred but unpaidiutelest to the date fixed for ledernption. without preurium.

The Successor' ,Agency shall be lequiled to give tlre Trustee written notioe of itsintel'ìtiou to lcdcem 20l5 Bonds undel this suLrseotion (a) wìth a dcsignation of tÌre plinci¡:ral anrountand maturities to be ledeenrecl at least lorty fìve (45) days ¡rtiot'1o the date fixed fot such tedemplion(of such latcr date as shall be acceplatrle to tlìe lìuslee in thc solc dctclmjnation of the 'l'rustee). and

shall transfer to the 'llrìstee fol deposít in the Debl Selvicc Fund all anrounts leqrtiled lol such

redemption not later tÌran the date fixed for such t edeutptiott.

(tr) Mandatory Sinkinp. Fund Redemptior. l'he 2015 llonds lhal ate Telur Bondsnaturing Septenber 1, 20 and Septembel l, 20 shall also Lre subject 10 mandatoty ledeuptiou in

whole. or in part by lot. ou Septeurber I il each yeat. cotnmenoiug Septemtrer l, 20- and

September l, 20_. r'espectively, as set fìllth l¡elow. fiom sinliing lind paynrenls niade by theSuccessol Agenoy to the Plincipal Accouul pì-llslìaut to Scctiou 4.03(Lr). at a leclemption ptice equal

to thc plincipal arrounl tl'ìeleof to be tedeemed, withottt lttenrittm. in the âggregate respectiveprincipal amounts and on Seplember' I in the lespective years as set folth in the lillowiug lâble[s]iplovided however', tlrat (y)in lieu of redcmption thereol'such Setics 2015 Teln Ronds tnay be

purchased by the Successor Agency prìrsuâut to Seclion 2.03(g) hereol, autl (z) if some bu1 no1 all olsuch Scrjes 2015 'f'elm llonds havc Lreen recleemed prìrsuant to srìbscction (â) âbove, the total âmoul'ìt

ofall lìrlule sinking lund lrayrìenls shall be rechrced by the âggregatc ¡rlincipal amount ofsuoh Seties

2015 l-elm llo;lds so ledeemecl, to be allocâled anong such sinliing lind paynlerlts in integtal

I)(X So( / l 7()42,5óv4/2(X)59(i'(10{) I 17

nultiples o1$5,000 as detennined by the Successol Agency (notice o1'which cletelmillalion shall be

given by the Successol Agency to the Trustee).

Scrics 2015 Term lìontls of 20_

Seplenber Ì I'rinci¡trrl Artrounl

Series 2015 Tcrrl llolrtls of 20_

SapÍember 1 Princi¡nl Amount

(c) Notice of lìederrplion; Iìescission. Thc Tlustee on behall and ât lhe experìse

ofthe Successor ,Agency shall urail (by first class rrail. postage plcpaid) uotice of âl'ìy ledetlption at

least thilfy (30) but not iore than sixly (ó0) days p|io| to the rcdcmption date. (i) 1o any Insuter and

to the Owne|s of any Bonds designated lor rederlplion ât theit lcspective addl'esses appeafing on the

Registration Books. and (ìi)to the Secu|ities De¡rosilo|ies al'ld one oI rrote Inlolmatiou Setviccs

designaled iu a Written Request of tlre Successol Agency fìlcd with the 'llrustee; but such rnailingshall not be a coudition precedent to such redem¡rliou and ueithel lailure to Ieceive any such notice

nol any defect therein sÌlall affect the valiclity ofthe proceedings for the tedemptiort o1'such Bonds or'

the cessatiotl of the acorual of ir'ìterest tÌrereon. Such notice shaÌl state tlìe rederrption date and the

Iedemption pfice. shall stâte, in 1l'ìe case of a ledem¡rtion Pulsuant to (a) above. that such tedemptìou

is conditioned upor the timeJy delively of the redetlptiott plice by the Successor Agency to tlle'ììustee lor deposit in the Iìedemption Account. shall dcsignate the CUSIP nuurber ofthc Bonds to lreledeemed, shall state tÌle iudividùal nur¡bel cll'each Bond to lre ledeemed ol sha]l state that all Bonds

between two stated nunrbels (both iuclusive) or all ofthe Bouds Oulstanding ate to be redeemed, and

shall lequile that such llonds be thcr sunendered at the Principal Colpolate Trust Olfice of the'lìustee lol ledentptìon at the ledemption price, giviug notice aÌso that fìirlhel irlterest on such Bonds

will not accrue from and after'1Jre ledemptiou date.

'lÌre Successol Agcnoy shall havc tlre lighl to lescind auy optional ledemptìol bywlitten lìotice to the'lìustee olì or llrior to the date fixed fol redemplion. Any such uotice ofoptiottalleclerrption sÌlall lre canceled and annulled if fol any reason lunds rvill not be or arc l]ot available on

the date fixed fol reclelrplion for lhe payurent in full ol'the Bonds then called fot redenptiou. and

such cancellation shall no1 constitute an Evenl of Dcliult under this Indenture. The Successol

Agelcy and tlte Tl'rìstee shall have no liability to the Owners or any othel parly lelaled (o or at isingfiont sr¡ch rcscission ofredemption. l'he lìustec shall nail rolice o1'such rescission of tedem¡rtìolin the same rnauuer ard to thc same lecipients as the oliginal notice of Iedcmptìon was sent;

plovided, however. the r'ìotice of rescission shall not Lre lequited to be mailed within the time peliodlequiled lol the not¡ce ofleden'ìptior.

t8Do(lso(l/l 70425óv4/200-s90-000 I

Upon tÌre paynrent ol the redeu'ìptiolì plioe ol' lìouds being lcdcerrecl, each check olothet t'ausfer of funcls issued lor such ¡lr'¡:rose shall, to the exlel'ìt prâcticable. bear the CUSIP

numbel identilying, by issue ard matulity. the llonds treing redecrnecl with the procecds oi suclr

oheck or other llausfcr'.

(d) Paltial l{ederrplion ol'Uonds. II'ì thc cveltt only a poltion of any Bond is

called lol ledenption. thcn upon sullendel ofsuoh lfond the Succcssol Agency shall execute and the

Ttustee shall âutllenticale aud delivel to the C)wner thereol. at the cxpense ofthe Successot Agcncy.a new Bond ot llolds of thc same inlelest rate aDd rlìâtrìr'ity. of autholìzed deuominalions. in

aggregate priucipal alìount eqùâl to the urìr'edeelllcd poltion o1'the Bolìd to lre tedeelled.

(e) Eflect ofRcdemplion. Flom aud aflel the datc fixed fol ledetrption, ilfundsavailable fol the payment of the ledeniption pricc ol' and il'ìteresl on the Bouds so called folledemption shall have been duly dcposited with thc'lìustee. such Bonds so called shall cease to be

e tilled 10 any bcncfit undel this Indcnture olhel thau the riBÌlt 10 teceive payurent of tlte tedeuptiottplice and acclued intcrest to the ledemption dâte, arld no intelest shall accrue thetcon fi'oln and al'tel

the ledemlltiol'ì dale spccilÌed in such notice.

(f) Mânuer of Reden1Dlion. Vy'hcucvel any Bonds or' ¡rot'tiotrs thereol'ate to treselected lol redcntlttiol by lot, thc Trustee shall malie such selection, in such nrannel as tlìe'Ûusteeshall deem app|opriate, and sÌtall notif¡, the St¡ccessor Agcncy theleof to the exteÍìt Bonds ate uo

longel held iu book-eutry lblm. ln tlle event of redcrlption by lo1 ol'Bolds, the T'rustee shall assigrr

to each Bond then Outstauding a distinctive nunrber lor each $ì5,000 ofthe plincipal arnount ofeachs¡ch Bond. l'he Bonds to be ledeen.ìcd shall lre the Bonds to which wele assigued uutntrels so

selected. but only so nruch of the plincipal arrount of each sLrch Bond of a denolninatiou ol'lrlotetha¡ 1i5.000 shall be rcdeemed as shall cqual $5.000 lor each nunlbet assigned to il and so selected.

All Bonds rcdeelled or pulchascd pursuânt to this Seotion 2.03 shall be cancelled and desttoyed.

(g) Purchase in l-ieu of lìedcnrption. In lieu oi ledemption of the 'felul Bondspursualìt to the subsection (b) above or pursuant to a Supplenrental Indcnture" anounts oll deposit in

the Special Fuud or in the Princìpal AccorìÍìt rnay also be used and withdrawn by the Successor

Agency and tÌte 'lìus1ee. r'cspectively, ât alìy tiule, upon the Wl itteu Request o1'the Successor

Agency, fol the pulchase o1'the'l'ernr llonds at public or ptivate sale as and when and at such pliccs(including blo)<erage and othcr cÌralges. lrul exchrdirg acctued intcrest, which is payable fi'oln the

Intelest Account) as the Successol Agency nay in its discletioll dctellniue. 'l'lte pat atnouttt ofanyTenn Bonds so pulchased by tlre Successor Agency in arìy t\.velvc-lnonth period ending on July I in

any year shall be clediled towalds aud shall lcduce the pâr arìroullt ofthe'l'elur Bottds lequiled to be

redeemed putsuaut to sLlbsectjou (d) on Seple rbel I in each year'; pl'ovided thât evidence satislactoryto the Tlustee ofsucìr putchasc has been delivcred to the Tlì"ìstee by said Jtlly 1,

Scction 2.04 Folm of 2015 Bonds. 'I'he 2015 Bonds, the fbrnr ol''IIustee's Certificatc ofAuthetticâtion. âud the lollì.t ol'Assignmcnt to âppear thereon. shall Lre substanlially itr lhe lotnt set

folth in Bxhibit A. which is at1âcìred heleto ancl Lry this lelel'cnce ìncorpolated hetein. with necessat)

or appropriate valiations, omissiors ând inscrtions, as petmitfed ot tec¡uired by this IndentLrre.

Scction 2.05 Execution of Iìonds. 'l'he Bonds shall be executed on behalf of the

Successot Agelcy by the signatule olthe Mayor'. City Managel or'lìeasurel or'the wtitten clesignee

ofaly ollhent ancl the signatule oithc City Clelk who aLe in ollìce on the date of executjol and

deJively of'1his Indenlu|c or ât âr1y lime tirelealìer'. E,ithcr or lroth ofsuch signaltìles uay be nade

t9l)O(lSO(l/1 ?0425ô¿l/200590-000 I

nlanuâlly ol nlay trc aflìxed by làcsimiic thereol I1 any offìcer u4rose signatute appears on âny

Bond ceases 1o be such olficel belole dclively of'tlrc Bouds to the pur-chaset, such signatute shall

neve¡theless be as eflective as ilthe of'ficel had rcur¿rired in oflìce ulltil tÌle delivery of 1l'ìe Boltds tothe purchâsel. Äny Bond may be signed and attested on l¡ehalf of the Stlccessor Agency by such

petsous as at the aclLrâl dale oI thc cxecu(ion o1'such lloncl shall bc the ¡rtopet olÏcels of thc

Successor Agency allhough on thc dâ1e of such llond an¡, such ¡rcrsou shall not hâve been sttch

officel of the Suooessor' Âgency.

Only such of the llonds as shall bear' llìelcou a Ceftificate of Authentication in the lormhereinbefore set forth, rlanLrally executed and dated by the l'r'ustee. shall be valid or oì:ligatoly l'ol

any prrrpose ol enlitled to the benelìls of this lnclenlurc. and such Certilìcale shall l¡e conclusive

evideuce that such Bonds have been duly âuthenlicaled and dcliveled hereundel and ale cÍìtitled to

1l'ìe lJelefits of this lndentule. ln llre event terrporalv Bonds are ìssued put-suattl 1o Section 2.09

hcrcoi tlte teulporary Bonds ntay bear theleol'r a Celtilìcate oi Authentication execuled and dated lry

the Trustee. nay be initiall¡, r'cgjstered by the l'rustee. and, until so exchanged as ¡rtovided uttdct

Section 2.09 heleol. the terrpolary Bontls shall be entitled 1cl the san.ìe benefits pulsuânt 10 this

Indenture as clefinitive lloncls authcnticated and deliverecl hereunder.

Sectiou 2.06 Transler of llonds. Any Bond tnay. iu accorclarìoe wilh its letnls, be

transfclred, upol the Registlalion Iìoolts. by the pelson in whose uame it is reg¡steled. iu petson ot

by a duly autholized attomey of such pelson. upon suttender of such Ilond to the Ttustee a1 its

Pr'ìncipal Colporâte Ttusl Office lbl cancellation, accompauiecl by delìvely ol'â written ittstltlntent oftransfer in a f'olnt acceplable to the 'lì rìstee. duly exec0ted. Whenever auy l3ond shall be sultenderecl

fol tlansfel. the Successo| Agency shall exccute and ll]e Trustee shaÌl tÌrereupon authenlicate and

deliver to the tlâusfetee a new lloud ol Bonds ol'Iike tenor. rnalufity aud aggregate p|incipal amou tof authorized deuominations. 'lhe 'lìì"lstce shall lequile llle paylllent by the Ownel of atly tax orotl'ìer goverl'ìlÌìer'ìtal chalgc ou tÌle trârìsier ofany 13onds pulsuant to thls Section 2.06, The cost ofprrnting Boncls and any scrvices rendered ol expenses incurred by tlle TÍustee in cottuectiou with atry

tlansfel shall be paid by the Suocessot Agcucy.

'l'he Ttuslee may refuse to lraÍìsfer. uncler lhe plovisions of thìs Section 2.06, eitlier'(a) auy

Bonds duling the peliod lìlìeen (15) days pliol lo the date established by the Tlustee fol the selectiott

of tsoutls 1ìol leclemption. or (b) any Bonds selecled by the Tlustee fbr redentptiou.

Section 2.07 Exchangc of llonds. Bonds may be excltatrged at thc Plincipal ColporâteTtusl Office of the lìuslee for Bonds o1 the same tenol and uralutily aud of othel autholized

deuolrinations. I'he Itustee shall require tlìe paytìre|t by the Owuct of atty tax or olhergovelnlnental cÌrarge on the exchange of any Bonds purslrâll1 lô this Sccfjon 2 07 I'he cosl olplinting Bonds and any selvices lendeled ol expcuses incurrecl by tlle Tlustee in connection with any

exchange shall be paid by the Succcssor Agency.

The Tlustee may lefusc to exchange, uncler the plovisions of this Section 2.07. eilltet (a) any

I3onds duling the l'ilìeen (15) days plior to thc dâte es1âbl¡shed by the Tlustee for 1he seleotion ofBonds lor ledemption or (b) any Boucls selected by the Ììustee fot redenlptiotr.

Section 2.08 Registrâtion of lìonds. I'he ljustee will lteep or cause to be kept. at ilsPlincipal Cìorllolate lìusl OÎficc. sulTcient l'ccords fol the registlatioÍì and tegistration ol'lrâns1èl ofthc Bonds, which shall at all titres cluling nolrral business hours Lre o¡ren to irspection and co¡tyitrg

by the Successol Agency. ultort reasonable pliol notice to tlle Tl'tìstecl aud. upon preselltation [ot'

DO( SOC / l?04256,4/200590-0001 20

sucl'ì purpose. the'lìustee shall, unclel suoh leasonable regulations as i1 may ¡rtescribc. tcgister or'

t'ansfel or cause to be legisteled or 1r'anslèr'r'ed, on the Registr-atiou Books Bonds as hcleiubefblep lov id ed.

Section 2.09 Tcm¡rorary llorrrls. I'he Bonds may be initially issued in tenìpolary folnìexchangeatrJe îol dcllnitive llonds when leacly liil cleliver'¡,. The tcrllloraty Bonds uray be plintcd.lithogrâphed ol typewlitteu, shall [¡e of such delonrinations as rnay be detelmined lry the Successor'

Agency, and may contain such lelèr'ence to any o1'the ptovisions of this ludentule as trây lleappropriate. Evely temporary Bond shall be executed ['ry the Successot' Agency trpou the satlle

condìtions aucl iu subslantially the same urâunel as the definitive lloncls. If thc Succcssot' Agencyissues tcmporaly llonris. i1 will execute ard lulnjsh dcfinjtive lJonds without delay, and theteupouthe tempotary Ilonds shall tre sullendered. lòr' cancellation. in exohange therefol at lhe PlincìpalColporate Tlust Olficc oJ'the 'lr r¡stee. and the 'ñ t¡s1ee shall authenticate and delivel in exchatrge fot'

such telnporary Bonds an eqr¡al aggregate plincipal aurount of defillitive Ilonds of aulhotizcddenonrinations, inlelcst lates and lil<e niaturities. Until so exchangcd, the telnpor¿uy Bonds shall bc

entitled 10 the sanre Lrcnefits ¡rnlsuant to this lndelltLìre as definitive Bonds autheuticated and

delìvered het euncler'.

Section 2.10 llontls M[lilntcd, l,ost, Destl'oyed or Stolcn. lf any Iìond shall l¡ecomcnrLllilated. the Succcssot. Agency, at thc exllense ol the Owuer of such llond, shall execute. and lhe

lìustee shall thelerr¡rou authenlicâte and cìelivel, a new Bond of lihe tenor ancl anror¡nt in exchange

and sLlbstitution lor the Rond so nrutilatcd. but only upon sullendcr to the lìustee of lhe Bond so

ntutilated. Evely niutilated llond so sullendeled to the Trustee shall be cauceled by it, ll any Bond

shall be losl, destloycd ol stolen. evidence of such loss, cleslmction or theft l'ìrây be submilted 10 thcT|ustee aud, ilsuch evidence be satisfactory to it and iudemnity satisfactory to it shall lre given, lhe

Successor' .Agel'ìcy. at the expense of the Ownet. shall execute, and the "frustee shaìl thereupouâuthel'ìticate ancl deliver', ¿r uew Bond of Iike tenor and ar.r.rount in lieu of and in substitulion for theBond so lost. destroyed ol stolen (ol ifany sLrch Ilond has nratuled or has been called fot'redemptìon.instead of issuing a substitute Bond, the 'hustee may pay the sanre without sulteudel theleoi uponleceipt of indemnity sâ1islàctoly to the l'lustee and the Successor Agency), The Successot'Agencymay require payment by the Owl'ìel of a sum not exceed iug the actual cosl of plepal ing each llewBoud issucd undcr lltis Sec1ion2.l0 and of the expeuses whicb tray be inculted by llre Succcssot

Agency and the'l-lustee in the ¡rlcnìses. Any Bond issr¡ed under the provisions of this Section in lieuol au¡r Bond alleged to be lost, dcstr.oyed ol stolen shall constitute an oligiual additional contractuaiobligation on the part of the Successol Agency whethet ol ltot the Bond so alleged to be lost.destloyed or stoìen be â1 any tir.nc enfoloeable by anyone. and shall be equally aud pt opot'tionatelyentitled to the beuefits of this lndenluI.e witlì âll olher Bouds issucd prìlsuart to this Ildentule,

Section 2.l l llook-Entry Systcrn,

(a) O|iqinal DeliveLy. The Bonds sÌrall be iüitiâlly deliveled in thc Îo|m of a

sepalatc single lìlly regisleled Bond without coupons (which nây be lypewritlen) lot cach matutityof thc Bonds. Upon initial delìvery. the owl'ìelsl'ìip ol eaoÌr such llond shall be tegistetcd on theRegistratìon BooÌ<s in the l'ìâr'nc of the Nominee. Exce pt as provided in subsection (c), thc ownelshipof all of the Outstarcling Boncls shall be legisteled in the rame ol lhe Norrinee on thc RegistrationBoolis.

With r-especl lo IJo¡rcls the ownelship of which shall be legislered iu the nanc of theNonrinee. neithel thc Succcssol Agency nol the'üustee shall have any r.esponsibiJity or obligalion to

21I)O( SO( /l 704256\'4l;1005(r0-000 I

auy Dellositoly Sysleul Pâr'ticipant or to any pelson ou behalf ol'rvhich the Depositoly Systcm

Par'licipant holds an iìlterest iu the Bouds. Without lirniting the generality of lhe inmeclìatcly

¡rrecedirg senler'ìcc. nci(hcr tlle SuccessoL Agercy nol the Truslee shail havc any lesponsibility or'

obligalion wilh lesPcct tO (i) the acculacy of the tecolds of thc Depositoly, the Nominee ol an¡,

Depository Svstem Par'licipanl with respecl 1o any orvnership inlelest in the Bonds. (ii) thc dclivetyto âny Dellository Systcm Participanl or any other person, othel than a Bondorvnel as shtlrvn itt the

lì.egistration llooks. of auy notice with respect to tlìe llonds. including auy notice of redeuptiort.(iii)the sclection by the Depository of the beneficial intelests il the Bonds to be ledeeured in the

eveut the Sucoessol Agenc¡r elccts to Ledeem the Bonds in pat't, (iv) the payrrelìt to any DcpositotySyslem Participalìt or auy olhel person, othel than a Bondownel as shown in the Registâtion Books,ofany antount with tespect to plincìpal. plerlium. ifany. or irìtelest on the Bonds or (v) ally conscntgiven ol olher acliou tahen by the Depositoly as Owne| oithe Bonds. lÌre Successot Agency aud thc'lìustee nray lreat aud considel the person in whose natne each Bond is legistered as the atrsolute

owuel ofsuch Bond for the ¡lrlpose ofpaynrent ofplincipal. ptemium arìd inteÌest oll such llond, fol'thc purpose ol'giving notices of redelrplion aud othel n.ìattels wilh lespecl to such Boud, fol the

pnr¡tose of legisterilg lrâuslers of orvlelship of such Bond" and lol all olhet ¡rutposes whatsoevcr.'l'he'lìr¡s1ee shall pay the plincipal ofand interest and pteuiunr. if any. ou the Bonds ollly 10 the

les¡rectìve Orvuers ol theil lespectìve attolneys duly autholized il wliting, and all such payÍìrenls

shall tre valid and el'fleclivc to luily sat¡sly and dischalge all obligations with tespect to llaylrent ol'p|incipal ofanci irrtelesl and ¡rlemium. if any, on the Bonds to the exter]t ofthe st¡m ot sunrs so ¡raicl.No ltelson other thân a llondownel shall leceive a Bond cviclencirg the obligâtion ol'lhe Succcssol'

Agetìoy to make payments of plincipal. intelest ancl premiuur. if any, pulsuanl to this ludenture.Upon dclivcty by the Depository to tlle Nonrinee of wlittcn notice to the effect that the Depositoryhas dctenlined to subst¡tute a new nomillee in its place. and subjeot to the plovisious helein withtespect 10 Record Dâtes. such new nonrinee shall becolne the Nominee heleundet lol all pulposcs;

and upon leceipt ol'such a nolice the Successol Agency sliall promptly delivel a copy oithe same to

the'lrustee.

(t ) Re presentâtior'ì Lettel. lu otdel to qualily the Bonds fol the Depositot'y'sbool<-enlry sysleln. tlìe Successor' Â.gency atrd the 'l-rustee shall execute and de]ivel to st-rch

Depository â letter rcpresenting sìrcl] n.ìâtters as shall be necessary to so qualify the Bonds, Theexecutiol'ì and delivcly ofsuoh leftel shall not iu any way limit the ptovisious ofsubsection (a) above

ol in any other way inpose upon the Successol Agency ol the Trustec any obligation whalsoeverw¡th respect to pcrsous having intelests in the Bonds other than the Bondownels. 'fÌre l'tustee aglees

b compl¡, with all provisiors in such letter with respecl 10 the givilg of uotices thereulldet by the'flustee. Ilì addition to the execulion and delive|y of such letter. u¡rofl writteu reclLrest of the

Depositoly or 1he TÍustee. the Successol Agency may take any otlìcr actions, not inoollsistent will'ìtlìis LldeÍìture, lo qLralify the lloncls lol the Depositoly's boolt-eutry proglall.ì.

(c) Tlatrsfels Olrtside Boolç-l}rtlv Svslem. In thc cveut that either (i)theDeposilo|y detellniues not to contiÍìue to åct âs Depositoly fol the Bonds. or' (ii) the Successor'

Agency delernrines to tcnl'riuate the Depositoly as such, then the Successol Agency shall thereupondiscontirue the booli-cntly syslen witl'ì srÌch Deposilory. Iu such event. thc Depositoly shallcoopelale rvith the Successol Agenc¡, and the 'Iìuslee in the issuance of leplacenrent Ilonds byploviding the Tnlstee with a ljst showing lhe iutelests of 1l'ìe Depositoly System Patticipants iu the

Bonds. ancl by sullencìeling the Bonds, legistered in the namc of the Nolninee. to tlìe'lìustee ol'ì ol'

beft¡r'e the date such leplacement lloncls alc to be issued. 'l-he Depositoly, by accepting dclively ofthc llonds, iìgrees lo be bouncl by the plovisions of this subsection (c). Il. prior to thc tcluìnation ol'the Dellosilory acting zrs such. tlìc Succcssor Agency lails to identill anothel SecLuities Depositol y lo

l)()( S(X /I?í)4256\,4/200590-(XX)I 22

r.eplâce the Deposiloly, theu the Bonds shall no longer be required to be lcgìsteled in the Regisltatron

Books in the nâutc of the Nonìiuee. but shâll be legisteled in whâLever naule ol rlâules tl'ìe Owlìers

lransfellilg ol exchanging Bonds shall desiglate, in accoldance with the plovìsiorìs ofthis Art¡cle ll.I)rior to i1s lel l'ìt il1âtiolì, the Depositoly sh¿rll lulnish the l'nrstee with the naues and addtesses o1'thc

Depositoly Systcnr Piulicipants and lespectivc ownelship itttclcsts theleol'.

(d) Pavlneuts to the Nornìnee. Notwilhstancl ing ¿rìry olher provisior of lhisludentulc to the coutrary. so long as any Bond ìs legisteled in thc name ofthe Nomincc. all paymettts

wilh les¡tect to plincipal of and intelest and premiurn, if any. on such Botld and ali noticcs withreslrect to such Boud shall [¡e niade and given, respectively, as plovided ill the letter described in

subsection (b) ofthis Section ot as othelwise inst'tlcted by tlte Depository.

Section 2.12 Applicâbilily of Plovisions to Additional Bonds. [.]nless otltctwtseploviclecl in a Supplerrelltâl lndenture. the plovisiotts of Sectiolìs 2.03(c) throLrgh (g) and 2.05

tÌrlough 2.1I shall apply to addilional Bonds.

AII'|ICLE III

DIIPOSIT ^ND

APPLICATION; ADDITION.^L DtrBT

Section 3.01 lssu¿rnce of Bonds. Upon the executioll and delively oi this Indentr¡te, lhc

Sr¡ccessol Ageuoy shall execute and deliver fo the 'l-r'ustee the 2015 Bonds in the aggrcgâte plincipalanrount o1' fì___., and the Tl L¡stee shall authenticâte and delive r the 201 5 llonds ulloll tl'ìe

Wlilter Iìec¡ues1 of the Successol Agelìoy.

Scction 3.02 Application of Procecds of Salc antl Certain Other Amounts

(a) On the Closing Date with respect to the 2015 Bonds, thc ptoceeds o1'sale oithe 2015 l3onds, bcing fj-__ (calculatcd as the pâl aurount thcleol. ¡rlus original issue

premium, less the discouut of the original putchascr thereof in the alìroult of $ì-,,'*=, less the

poltion ol'the ¡trentium fbr the 2015 lnsurance Policy allocable to llte 2015 Bollds in the arnount of$_ , , _ paid dileclly to thc 201 5 lnsurer. ard less the pollion of tlrc plenrium l'ot 1he 201 5

lìeselve Polic¡, al]ocable to the 2015 Bonds in lhc anou'lt 01'$- paicl clìr'ectly to the 201..s

Insuler'). shall be paid to the Trustcc and applied as fbllows:

(¡) The 'l'r ustee shall deposit the âlnoultt of $--, ilt the Closts

ol' lssuance Fund.

(ii) l-be 'lìrrslee shall dePosit

plìlsuant to the 201 I LaLrnch Ramp Pro.iect Loall Agleemellt.fì wilh the Authoritv

(iii) 'J'he Tlustcc shall deposit $- with the tlttstce ulldel lhe

201 I Srrmmer.ly Plo-jec1 Indeutules.

(b) lln adclition to mal(irìg tlìe deposits set folth above. lhe Successot Agettcy willtrausfer 10 the frustec fol deposit iu the lnteÌest Accotlrt tj--

-. --- - to be uscd to pay interesl on

the 2015 Bonds on March l, 2016,1

Scction 3.03 Costs of Issuancc Iund. l heÍe is heleby established â separate 1ìuil to be

lçnown as the "Closts oll Issuance Fuucl". which shall be held by the TlLrslec in trust. 'l"he tttotteys in23

I)O( SO( /l7(J4256v4/200590-000I

the Costs of lssuâuce Fund shall be r¡sed and wilhdtawn by the 'l'rustec ftont linte 10 lilue to Pay the

Closts of Issuance wilh respect to the 2015 Bolds t-tpon submission ol'â Wtitten Request of the

Successor Agcncy stâting the pelsou to whom paynrent is 1o be uade. the anlcìunt to be paid. lltepulpose for rvhioh the obligation was inculred and that sr.rch payncnt is a ptopel chalge agaittst said

fund. On the datc which is six (6) nrouths l-ollowìng the Closing Dale wi(h rcspcct to the 2015

Iloltcls. ol u¡ton thc ealliel Wrilten lìequest ofthe Sucoessol Agency. all amounts (il'any) tenraittittgin the Costs of Issuance lìund shall be withdlawn therefìom by the Trusfce aud translèllecl to the

luterest Account wilhin lhe Debt Selvice Fund. and the Costs of lssuance Þ-Llnd shall be closcd.

Scction3.04 Resctvctl.

Section 3.05 Issuance of Pâl'ity Debt. In addition to tlìe 2015 Bonds, tlrc Successot'

Agency rray issLre additional bonds (including pulsuar'ìl 10 a SupplementztI Il'ìdel'ìture) ot incul othel'

ioans, aclvances ol indebtcdness payable 1ìom Pledged Tax Revelues on â pârity rvìth tltc 2015

Bonds to lefund any of the Existing Bouds oI outslânding Bonds or Pâri1y Debt in such princi¡ral

ânìount as shall be detelmirred by tlte Successor Agency. The Successot Agency nlay issue and

deliver any sucÌr Pality Debt subject to the following specific condìtions all ol which ate helcbymade conditions plecedenl to the issuauce and dclivery ol'such Pality Debt:

(a) No event ofdefault heleunder ol r¡ndel any Parily Debt Instltìl'ì1ellt shall have

6cculled and be contiming ulless suclr event of default will tre cured by tlìe issuance of'sLroh PalilyDebt:

(b) The issuance of flìc Pâri1y Debt shall con]ply with the leqì,ìirenents ol'Sectìon 34177.5(a)(l) of the Dissolulion Act;

(c) In the eveut the Successol Agency issues aclclitional BoÍìds pursuânt 1r.l a

Su¡rplerrental Inclcnture. the Successol Agency shall cause the âlÌolìrì1 on deposit in the lìesetveAccount to equal the Reserve Requilement; and

(d) 'Ihe Successor Agency shalJ cleliver to the Trustee a Written Celti{ìoate o1'the

Successol Agercy certilying that the conditions plecedenl to tl]c issuanoe 01'stìch Palily Debt set

folth above have been satisfied.

Scctiou 3.06 Issuance of Subordinate Debt. The Successol' Agency may issue ot ittcut

Subordiuate Debt in such plincipal ârrorìnt as shall be determinecl by tlre Successot Agency. Strch

Suboldinate Debt may be payable ltom any assets or plopelty of the Suocessot Âgency, includingPledgcd Tax lìevenues. on a suborclinale basis to the payment ofdebt setvioe ou the Borlds.

Scction 3.07 Issuance of Senior Dcbt to Refuntl Existing Iìonds. The Successot Agelcymay issue bonds seculed Lry l,ledgecl Tax Revenues on a seniol basis to the Bonds and Pal ily Debt to

refund lthe Successor Agency's obligations pledged lo repaymcnt oflhel Exlsl¡ng Iìonds so long as

thc Successot .Agency satislìes tlte requiler. ettls ol'Secliotl 3a177.5(a)(l) ofthe l-aw

ì)OcS(l('/l 70425(^'41200590-000 I

24

,dtì't'IcLE IV

SDCURITY OF IìONDS; FLOW OF FUNI)S

Scction 4.01 Sccudly ofllonds; lìqual Scculity. Irxcept âs may othelwise be plovideci in

Sectlon 4.02. Seclion5.17 ard Section 6.06. thc 2015 Ilonds and any Palily Debl sltall be equallysecLrecl by a pledge o1. securìty interesl in and licr on all of the Pleclged Tax lìevenues and thcntoucys in thc Special lr'und. and the 2015 Boncis and any adclilional Bonds shall also lre secu|ed by a

fir'st and exclusive pledge of, security interesl in and lieu upon all ofthe lnoneys iu the Debt SelviceFLrnd. the lr'ìlelest Accormt, the Principal Account, tlre lìeciemption A.ccount and thc Rcselvc Account(including any subaccounts therein) withorìt plefelence ol priolity l'or selies, issue, number. dated

date. sale da1c. datc of exeoution ol date of clelively. Excepl l-ol the Pledgcd Tax Iìcverues, whichconstitute 1l'ìe ânlounts deposited in the lìedevelopnleut Propelty l'ax 'lì ust Fund thât ale not pledgedto other- obligations oi thc Former Agency ot the Successor Agettcy. and sttch ntoneys, no funds orplopelties of the Successol Agency shall be pledged to. or othelwisc liabìe lbr'. the pâynlent 01'

plincipal olor jntelest ol ledemplion plemium (ilauy) ou lhe Bo:lds.

ln considelation of the acceptance ofthe Bonds by thosc who shall hold the sânle 1ìom trmcto finre- this llclenture shail bc deenied to be and shall constitute a contr'âct belween the Successor'

Agcncy ancl the Owr]ers lÌom timc to tinìe of the Bonds, and tl'ìe covenânts and âgreelìenls helein set

forth to be per1òr-med on behalf of the Successol Agency shall be f'ol the etlLral anti plopoúiorìatebenelìt. seourity and plotection ofall Ownels ol'the Bonds without ¡lefèr'ence, pliolity ol dislillctiollas to security ol othelwise ofany oftÌre Bonds over any of tlre otlrels by reason o1'1he nunrlrel ol clate

tireleof ol the 1ilÌìe of sale, exccution and delively thcreof. or otherwise lòr'ary cause whâlsoever,except as expressly plovided therein or herein.

Section 4.02 Spccial lrnnd; Dcposit of Pledged Tax Reveuues. Thele is heleì:yestablished a special fund to be l<nown as the "Su[roldiuate Bonds Special Fund" which is to Lre heÌd

by the Successol Agcncy within the Redevelopnrent Obligation Retireurerlt Fund and rvbich shallalso be known as the "Special Fund." The Redevelopuent Obligation Retilcnrcnt Fund, includingthe Subordinatc Bonds Special Fund thelcitr, shall be held by the Successor Agelcy sepatate aud

apar1 fiom other.fuuds ofthe Successol Agcucy.

fT'he Successor Agency shall dcposit all of'the Pledged Tax Revcnucs rcceivcd with lespectto any Semianunal Period in accoldance with Section5.17 hereof into the Special lìtìnd plornpllvupon receipt thereof by the Successol Agcncy. AII Pledged Tax Rcvcnues leceived by the Suooessor

Agenc¡, in cxcess ofthe arÌìoLìnt required to mal<e the cleposits rcquiled helejn jn older to pay deblservice on the Bonds and al]y Palily Debt ancl to ural<e any othel payulents due heleuudel. aud exceptas ma¡, be provided to the col]1Iâr'y in this Indeutule ol in any SLtpplenrental ludcntuI.c or Parity DebtIl)stnnleut. shall be leleased flom the pledge and Iien helcundel and shall be appliecl ir accoldancewith the Law. includìng but not limiled to the payrìlent ofdebt selvice on any Suboldinate Debt.Priol to the payurcut in fuli ofthe plincipal ofand jutetest and tedemptiou ¡rtcurium (ifany) on theBonds and the payulcnt in fill o1'all other arnounts payatrle heteuttder attd ttndet an¡, SupltlcntcutalIndentules ol olher Pality I)ebt Instlunreul. thc Successo| Agency shall l'ìot have auy lrcncficial lightor irìtelesl in the moneys on deposil in the Special Fund. except as nray be ¡r'ovicled in this lnclcntulcand in any Supplemental Indenture or other Parity l)eb1 ll]stnìll1en1.l

Sccfion 4.03 Deposit of Arnounfs by'l'rustce. Thelc is heleby establishecl â trust lìnd to

bc l<norvu as the Debt Selvice Fund, rvhich shall be held by lhc Tlustcc hcrcuncler in 1rust. Moneys

25l)o( S( )(-/l ?0425(rv4/200-s90-000 I

in the Spccìal È'und shall be tl'ansfelled by the Successor .A.gency to the lìrstee ìn thc loilowìngâl]]oulìts. at tlìe lollowing times. and deposited by the Tlrìstee ir) thc following tespectivc specizrl

¿rocou¡ts, which alc heleby established in the Dcbt Service lrund. and in the fbllorving older of¡rliofity (ptovidecl fruther that. if on the fiîth (5th) IJusiness Day Pr'ìor' tu the dâte lhe Successot

Agcncy is leqLrired to hansfèr'anrounls on deposit in thc Special ììr,¡nd 1o thc 'l'r'ustee there ale uot

¿ìtnourìls otl deposit thereiu sulficicnt to malte thc following cleposits. taking into accolì11[s al]lounts

lequìred 1o be tlansfcrred with lespect to Parity Dcbt othel thar llonds. lhc Successol Agency shall

innrediatcly notily the Tlustce ofthe anloùllt of atly sttch insufficiency):

(a) Interest Accourlt. On ol befole the lilth (5th) Busiuess Day pleceding eaolt

lutelesl Paynlent l)ate, courmencing with thc lrìteresl PâylÌent Dale ol'Malch 1.2016. the SuccessoL

Agency shall withdraw flom the Special Iìund and 1rarslèr to ll'ìe Trustee. lil deposit il'ì lhe lllterestAccolìrìl arì amo¡nt which when added to the aurount contained in the lltelest Accoì-ìlll ou tlrât date,

will be eqr-ral 10 lhe aggregale autount ol'the intelest Lreoouring ciLre and payalrle on the Oì-rlslandilìg

Iloltcls on sìich Intctest Payrrent Date. No such t'ansfel and deposit nced be macle to the IllterestAccoult il'the anount contailled thel.cin is â1 leasl cqual to the inleresl to bcconle due on the next

succeedìlg Interest Paytre¡tt l)ate upon all 01'the Outstancling Uonds. All uroncys iu the InleleslAccouut shall be used altd withdlawu by the'lìuslec solcly lòr'the ¡rutpose ofpaying the interesl on

the Bonds as it shall bccoure due and payable (incluciìng accrued intetesl on any 13onc{s ledeentedpriol to lnâtul ¡ty pLrsuallt to tlris lnclentrrlc).

(b) Plinc ip4ll\99!q!I. On ot bef'ole the 1ìlÌh (5th) lltrsittess Day pleceding

Septeulber I iu each yeal beginning Septembel l, 2016, the Successot Agcucy shall withcltarv ftonrthe Special Fund atrd ttansfèt to tlte l-lustee lor deposit il the Ptincipal AccoL¡nt an arrounl which,when added to the alrount then contained in thc Pliucìpal .Accoulll. wilJ be equal to the ptillcipalbeco¡ring due and payable on tlre Outstanding Selial Bonds and Outstaud iug 'l'et ur Bolds, includingpursuânt to rnaudatoty sinking account redemptìon. on the next Septcnber L No such trausfet and

deposit need be made to the Principal Account ilthe âlrourìt col'ìtaiÍìed therein ìs at leasl eqùal to thcplincipal to become due on the ncxt September I on all of the Outstanding Setial Bonds and TclntBonds. All rnoleys in the Principal Account shall be used and withdtawn by the Truslee solely lor1l'ìe pulpose of paying the principal ofthe Serial Bords and the Temr Bonds, including by t.naudatoty

sinhing accounl r'cclcmption. as the same shall become due ald payable.

(c) Reselvc AccounL. Thele js heleby establisheci r) the Debt Service Fund aseparate account ì<nown as the "lìesewe Accoutlt" solely as sectttity lot pâynlents pa¡'able by the

Successor Ageltoy pursùatìt to this Section 4.03 and pllsuanl 1o any Supplenretttal Indenlure or other

Parity Dcbt Instrumel'ì1, which shall be held by the 'lì us1ee in lrust lor the trenefil of the Owners ofthe Bouds and any Parity Debt. The lìeserve Requilenrenl fol the 2015 Ilonds will be satisfied by the

delively ofthe 2015 Ileselve Policy by the 2015 Insrìr'el on the Closing Date with lespecl to the 2015

Bonds. The Successol Agency wilJ have no obligatior 10 replâce thc 2015 Iìeselve Poiicy ot to ftrnd

the Reserve Account with cash if, at auy time that the 2015 Bonds arc Outstatuding. alllotìl'ìls are llotavailable undel the 2015 Reselvc Policy othel than iu oornection wilh a dlau, on the 2015 Reselvc

Policy,

ìjxcept as 1;r'ovided in the pr-ecetling paragraph and as nlay bc ¡rtovidcd ttt a

Sultplentenlal Indenture oI Pality Debt Instrun]ent. iu ll'ìe evcllt that the iìnlounl on deposit in tlreReselve Accor¡ut at auy timc lrccolres less than the lìeselve Rcqujrcment, the fltìstce slrall plomptlynotify thc Successor' Âgency ofsuch facl. Upol leceipt of any such lotice ând as ¡rlomptly as is

l)( X'SO( /l 704 25(rr,4/200590-000I26

pernrillcd by the l-aw. the Successol Agenc¡, shall trânslèr to lhe Tlustee au ¿ìlllourt sulficiettl to

maintain the Iìeselve Ìlequiremclll ol deposit iu the Iìeselve A.ccount.

'l'he anlounts available urder'the 2015 lìeselve Policy shalì bc used and withdlâwnby the Trustec sole ly lor the putllosc of ntahing lrausfers to the lnlelesl Accouut anrì thc Plinoi¡talAccounl in such older ol'¡)iofity. in the event olany deficìency at âny lime in any ofsuch accoutrts

with lespect to tl'ìe payuleut of debl service on the 201 5 Boncls.

Except as provided above, the ât'llount ott dcposit in the Resetve Account shall be

maintained ât the Rescrve Iìec1r-rilement at all times prior to tlrc Paymelt ofthe lJonds and any Parity

Debt ill full, lf there shall therì r]ot be sufficient Pledged Tax lìevenues 10 tlâusfel âlt al]tolllìtsuffìcient to mailtlaiu the Reselve lìequilemcnt on deposit in thc Resclve Acootnìl, the Successor

Agency shall be obligated 10 coutiuue making tlalsfels as Pledged Tax Rcvenues lrecol'ne availatrle

¡ltil there is an amount sufficient to lraintain the lìeselve Requiter. eut on deposit iu the Reserve

Accouut. No such translel ancl dcposit need be made to the lleselve .A.ccoullt so long as there shallbe on deposit theleilt a sLlr at lcast ecÌu¿ìl 10 the Reselve Iìeqr-ritenren| All uroncy iu the lìeseÌveA.ccount shall be used and withdlawn by the Tlustec solcly 1òr' tlle pulllose oi malring transfèlspUlsuatll 10 any Parity I)ebt ll]strumcnt and heleuucler 1o the Interest Accoulll, the Plincipal AccoLrnl

and the Sinking Account. ill the event of auy deficiency at any t¡me in any of such accor.ìnts or for the

retilenent of all the Bonds then Outstancling. except that so lorg as the Successol Ageucy is not iIdelàult heleundel ol'ulìdet any Pality Debt lnsûul]rent. any aDìouDt ir lhe Resetve Account in excess

ol-1he Resetve Requirement shaìl be withdlawn i-lom the Reselve Accor"rut senriannually ou ot befotetwo (2) Business Days pteceding each Malch I and September I by the'ìilLrslee and deposited jn the

Intetest Account ot tre applied plo rata il aocoldancc with âl)y applicable provision ofâ Parity DebtInstrulrent. All aurouuts in the Reselve Accouut on the Ilusiuess Day pleceding the final InterestPayuìenl Date shall lre withdrawn fiom tÌre lìeserve Account and shall be transleued to tlìe l telestA.ccount and the Prìncipal AccouÍìt. ìn such ordel. to the extenl r'equiled to make thc deposits then

I'equired to be made pursuant to this Section 4.03 or shall be applied pro rata as lequired by any

Parity Debt Instru[rent, as applicable.

'I'he Successol Agency shall have the light â1 âny tirne to dilect the Tlustee to leleâse

lunds from the Reserve Accounl, in whole or in ¡rar t. ily teltdcring to the Iiustee: (i) a QualifiedRescrve Account Cledit lustrrrment. and (ii) an opirion o1' Boud Counsel statilìg that neither the

rclease of such funds nor' 1l'ìe acceptânce of such Qualilìecl lìesetve Account Cledit lnstl'uurent willcause interest on the Bonds ol any Pality Debt the il'ìteresl on which is exohrdecl fiortr gtoss incotne

of the owners thereoll lor federal ilcome tax purposes to beconìe includable ìn gtoss iucome fot

lltrposes of federal incorne taxation. Upon tendcr ol'such items to the Trustec. and upotr delively bythe Successol Agetìoy to lhe Trustee of wlitten calculation ol lhe anrou:rt pclmitled to be released

flont thc Reserve Account (npon which calculation the'lìustee may corrclusively lely), the Trusteeshall tlansfel such lunds frour the Resetve Acoount to llìe Successol Agency to be applied inaccoldauce witll the l.,aw. The Tlustee shall comply with ¿ll tlocunrentation lelating to a Qua)ifiedReserve Account Cledit lnstlr-rnrent as shall be required 1o mairtain such Qualified Rescwe AccounlCtedit InstnÌl't.tcltt in full lòrce and effect ¿rnd as shail Lrc lequiled to leceive payments theteundel ilr

the eveut and to the extent lequiled to lnâl(e âlly paynrcnt rvher arcl as tequiled unclel this paraglaph(cl). Upon thc cxpiratìon of'an¡, Qualified Iìeserve Account Clredit Lrslrurrent. the Successol Agencyshall either (i) r'eplace sLlch Quafified Iìeserve

^.ccour'ìt Cledil InstlLrment \.vilh a lìcw Qualified

Reselve ^.ccount

Cledit Instlumcut. or' (ii) deposit ol cause 10 be deposiled with the T|ustee allamount of lìrnds equal to tlìe Resclve lì.equirement, to lre delived flonr the fitst legalJy availablePledged Tax Rcvenues. lf'the Resclve lìeclLrilement is being uraiulained paltiall¡, in caslr and paltially

21ìIOCS( )C/ I 704 2-s(^,4/2005 90-0(X) I

with a Qualifiecl Reserve ^ccorìnt

C)edi1 Instrr¡urelt. the cash shall be fir'st used to treet ally

deficiency which may exist from linlc to tirìe iu lhc lntelest.AccoLr'ìl ol tl'ìc Prìlcipal Account fot the

purpose of rraking payurcuts requiled pursuaut 10 Sectiolls 4.03(a) oL 4.03(lt) of lhis llldenttue, ltthelìeserve Requilement is lreirg :raintaincd with lwo or urore Qtìalified Rcselve Account CIeditInstlun.ìelìts^ any tllaw to nlccl â de1ìciency which nray cxisl fion 1itÌìe to tilìle ilì the ìttteresl

Accouut oL the Plincipal Accoullt lor thc purpose of maliing payuìelts I'equired ¡rutsuaut to Sections

4.03(a), a.03(b) ot 4.03(c) of this Indenturc shall be ¡Io-r'ata with respect 10 each such instlument. l1l|e Reserue Rcquìrement wilh lcspect to a parliculâr' series of Bot.tds is secured try a QualificdReserve Account Cledil Iustluutent tlìat relatcs olly 1o such scljes of Bonds. the calculatìou ofIìeserve Ilequirement lor such selies ofBonds shall lre calculated ou a stand-alone basìs,

Thc Reselve ^ccour'ìt

nlây be maintainecl il the l'cl m of one ol tnote sepalate sub-

accoutrls which are cstablisÌred lol thc pur'¡rose of holcling the ploceeds of sepatate issues of the

Botds and any Parity Debt ìn conlornrity with applicaLrle plovisions oll the Code to the exteltt

directed by the Successor Agency ìn writing to the Truslee. Additionâlly. the Successor Agency

nray, in its disclelion, cornbine anrounts on deposil in the Reselve Account ând on dcposit ìu any

leseLve ¿ìccoutì1 r'elating fo any (but not neccssalily all) Parily Debt not issued as Bonds in otdel torraintajn a conlbined reservc accourt lol thc Bonds and any ([.tut not uecessalily all) Parity Debt.

(d) Redeurplion Accor¡rt. On ol bclole thc llusiuess Day pleccding auy date on

whjch llonds âle to be redeenred pursuânt to Sectiou 2.03(a). the 'lluslee shall withdraw f'r'onl the

Debt Setvice Iìund any atììount 1lânsferrcd lry the Succcssol Agency pLnsuant to Section 2.03(a) lor'

deposit in the Redentption AccoLrnl. such âmounl bcing the amouut lequired to pay the principal ofand prenriurr, il'any, ou the 2015 Bolìds ald on othel Bonds to be ledeemed on such date pursualtt to

Sectìon 2.03(a) or a similat pt'ovision ofa Supplenental lndeutule. All moneys in the lìedentptiorrAocount shall be used atrd wìthdl awn try the 'lì ustec solely fbl the pulpose of paying the pr-iucipal ofand premium. if any. ou the 2015 Bouds and on such othel Bonds to bc redeemed pllrsuâut to

Section 2.03(a) or a sinilar provisiou o1'a Supplemental lndentule ou the date set fol such

redemption. Iutelest due on the 2015 Bonds ol sucb othel Bolds to be tedccrned on the date set fot'

r-edemption shall, i1 applicable. be paid 1ìoni lunds available therelor iu tlìe lnteresl AccoLtnt.

Notwithstanding the foregoing. at auy tilììe pliol to giviug notice of t'edcmptiou ofany such 2015

Bonds ol such oll'ìer Bonds, the TILìstee lrây, at the dilection of'the Successol Ageloy, apply

arrounts deposited or othelwise to lre deposited in the lìedemption Account to the ptìrchase of tlìe2015 Bonds or such othel Bonds at putrlic ol private sale, as aud when and at such plices (including

brokelage and othel chalges, bul cxcluding âccrued interesl on such 2015 Bold ol such otlter Bonds,

which is payable flolì tl'ìe Illterest Accourl) as shall be dilected by the Successol Ageucy.

Section 4.04 Rebate Fund. 'l'he Tlustee shall establish tlic Rebate Irund lol 1he 2015

lloncls. when ncccled. and the Successor Agency shall comply with the requireurelts below. Alllutolìey at any time deposited in the Rebâ1e lìuncl shall be held by tlre Trustee in trust. 1ìt pâylnent to

the United Slates Treasury. ^ll

an.rouuts ol deposil in the lìebate Fund shall be govelned by this

Sectio¡ a¡d the appJicable Iax Celtificate. unless the Srrccessol Agency obtains au opiulon ol'BoudCounsel thâl the exclusiolt lr-om gloss jucorre oi inlerest on the 2015 Bonds rvili uclt lre adver-seìy

âfïected f'or ledelal income 1ax pLnposcs if such teqttitetttetlts are rìot salisfied.

(a) Ìlxcess Investurent llal njngs.

(i) Compu!q[q¡]. Within 55 days of lhc errd of each filth Computation

Yca| with respecl to thc 2015 llonds, thc Srrccessol Agency shallcalculale ol causc to be calculated

28I)O( SO(-/l 7(1425(rv4/200590-000 l

tlre all.ìount of rebatable arbihage. in accolclance witlì Section 148(fX2) of'the Code and Section

L 148-3 of thc Rebate Regulations (taking iuto account any ap¡rlicable exceplions wilh respect 10 thecompulâtion o1'the lebalable arbitlage. tlesclibed. i1i applicable, in the 'lax Certificate (e.g., thetenlporâry irlvestrì'ìents exception ol Seclion I4tt(1)(4XB) and the oonstlLrction expenditule exceplionof Scction 148(Ð(4)(C) oI the Codc). fìr this ¡rut¡rose 1r'eâting thc last day of thc applìcableConìpulatiou Yeal as a con'rllutâtìorì clate. rvithin the meaning of Section 1.148-1(tr) of the lìetratelìegulations (the "Rebatable Albitlage"). 'l'he Successol Agency shall obtaiu expelt advice as to theamount of the Rebatalrìe Albitlage 10 compiy with th¡s Section.

(ii) Tiar:.slÞ. Within 55 days ol the end of each fifth Conrpulation Year'

with respcct to the 2015 lìoncls, upon the Finance Offìcer's wl illen dileclion. an auount shall be

deposiled to the Rcbate Fund by the fluslec fiom any Iegally available funds. inclLrding the otherfunds and accounts established herein. so that the balance ìn the Rebate Fund shall equal the alrountof Rebalâble ,Ar'bitage so caiculated in accoldancc with clausc (i) of this Sectìol 4.04(a). ìu theevellt thât imnrediately lollowing the tlanslel lequi|ecl b¡, the previous seutence, the anlouut then orì

deposit to the cledil of the Rebate Fund exceeds the alrorìut requiled to be on deposit therein, uponwrittet) instluclions hom tlre Financc Ollìcer'. the'ùrìstee shall wilhdlaw thc cxccss fiom thc Rebate

F'und and theu cledit the excess to thc f)cbt Setvice Fund.

(iii) Pavncnl 1o the TIcasutv. The Succcssor Ageucy shall direct the'lì ustee in wliting to pay to thc Unite,:l S1â1es Tteasury, out ofarnounts ill the Iìebate Fund.

(X) Nol latel than 60 days afteÌ the end of (A) the frl'thConìpì-ìtatiou Yeal with rcspcct to the 2015 Bonds, and (B) each applicable fillh Conrputatìou Year'thereafter. al'ì au.ìor¡ut equ¿ìl to ât least 90% of lhe Rebatable Albittage calculated as o1'the end ofsuch Com¡rulalion Ycal; ancl

(Y) Not later than 60 days âfter the paymeul of all the 2015

Bonds, a atnou'tt equâl to 100% of thc lì.ebatâble Albiûage calculated as of the end of such

ap¡rlicable Cornputatiorr Year'. and an¡, income allributâble to the Rebatable ,Arbitrage. computed inaccorclance with Section 148(1) oi the Code.

In the eveÍlt that. pliol to 1l'ìe tirÌe of any paymcnt lequiled to be lrade frolr the

Rebate Fund. 1l'ìe arnount in thc lìelrate Funcl is not sulficieut to nrake sucÌl pay[rent when suclrpayment is due, the Succcssol Agercy shall calculale or caLrse to be calculated the amount of such

deficiency and deposit arl anlourt leceived l"rour any lcgally avaìlable source. inc)uding tÌÌe otherfunds and accounts establishcd helein. equal to such delìciency in the Rebate F.und plior to tlìe timesuch payment is due. Each payment leclLriled lo be made pursuarìt to tÌris Sutrsectiou 4.04(a)(ìii) shallbe made 1o lhe Inlernal Rcvenue Selvice Center'. Ogden, Utah 8420l ou or belore the date on whichsuch paynìel'ìt is due. and shall be accompanied by Inlelnal Revcnuc Service Folm 8038-'f pleparedby the SLrccessor Agency. ol shall be macle in such other lnauner as provided under tlre Code.

(b) Dìspositior of [Jnexpencled Funds. Any lunds lenrainitrg in the lìelrale ]ìt¡nd

af'tel lederrption and paymenl oi thc 201 5 llonds and the pâyn.ìeuts desclibcd jl Section a.04(a)(iiì).shall be tlansfèrred by the T|ustcc to the SLrccessor

^.gency al tl]e wlittcl'r clil.eclion ofthe Succcssor'

Agenoy anti t¡tilized in ¿ìny ¡rarìncr by the Successol Agency.

I)OCS OC/ l704 25 (l'4/200590-000 I

29

(c) S uwiy¡1pI Dç 4f4ft-ç-q. Notwithstânding anylhing in this Section 4.04 ol thisIudentule to the conlr'ary. thc obligatìon 1rl corrply with the requirenrenls olthis Section shall sLuvive

the tlefcasance oithe 20I 5 Bonds and any Pality Bonds.

(d) 'fnrstee Responsible. 'l'he Tnrstee shall have no obligations or lesponsibililicsundel this Scctjon othel thâu to follow lhe written dileclions ol tÌre Successclt Agency, The Trustecshall have no lesponsibility 1o nalte any c¿rlculations of leLrate or to indepeudently leview ol velilysuch calcu lalions.

Seclion 4.05

Sccfion 4.06

l>rovisions Relafing to 2015Insurance Policy. fto ooniel

I'r'ovisions Relating to 2015 Rcselve Policy. lto colrel

AIITICLI V

OTHtrII COVIINANTS OF TIIE STJCCESSOR AGENCY

Scclion 5.01 I'unctull Pâymcnf. lhe Successol Agency shall punctually pay or câuse to

Lre paid the ¡tlincipal alìd interest ltl l]ccolne due iu respect oi all the Bonds togetlter with the

¡remium theleon. if auy. in strict conf'onì.ìity with the lelms of the Bouds and of this Irdenture. 'lhe

Successor ,Agency shall faitìrlìrlly obselvc ard pell'olm all of the conditions. covenâlts ând

re(Ìuiremelìls of lhis lndeutule, all Supplemental lndentures and the Bouds. Nothìng helein contâined

shall plevent the Succcssor Agelcy hom mahing advances of its own rnoneys horvsoevel clerivecl to

any of the rìses or purposes lelèr'ted to helejn.

Scction 5.02 Lirnitâtion on Ad(litionâl Indebtcdncss; Againsf Encumbranccs. ThcSuccessot Agcncy heleby covellalìts thal. so long as the Bonds are Outstanding. tl'ìe Succcssot'

Ageucy shall uot ¡sslre any bonds, uotes ol othel obligations, enter ilìto âny âgleenlerìl or olhelwiscincur any jndebtedness, rvhich is in any case payabJe frorn all ot any part of the Pledged TaxRevenues exoept fol obligalions issued to lefì¡nd any ofthe Existing Bonds ol lhe 2015 Bonds or auy

Pality Debt. brìt only il'the requilcnents ofSeclion 3.05 or 3.07. as applicable. âle met. alìd to issue

Subordinatc Debt. 'I'he Successol Agency will rìot otherwìse ellcumbet. pledge ol place any chatge

ol lien upon any o1'the Plcdged 'fax Iìevenues or othet amounts pledged to the Bonds su¡rerior ot

equaÌ to tire pleclge and lieu helcin cleated 1br the Lrenefit of llle Ilonds,

Section 5.03 Dxtcrìsion of Pnymeul. I'he Successor Agency will not, dilcctly orindir.ectly, exteld ol cor'ìseut to the extensiol'ì of the tìme lor the payrnellt of any Bond ol clairn folirìteresl on any of the Bonds and will not. dileclly or indilectly. be a party to ol approve ary suclt

arraugerreut by pur-chasing ol fuuding the Bonds ol olailns fol iutetesl iu any othel uanleL. ln case

the nìâtrìrity of'any such Boncl ol clainr for interest shall be extended or fundcd, whetlìer ol not witlrthe couseut ofthe Sr¡ccessol Agcncy. such lJond or claim for iuterest so extended ol lunded shall notbc cntitlcd, in case of'delault heleundel. 10 the benelìts of thjs Indenture. except sLrb.ject 1o the pliolpayrlent in l'ull of thc plilcipal ol'all ol'the Bonds then Oulstanding and of all clait¡s lot intelestvvhich shall rrol ìrave been so exlcndccl ol l'unclecl.

Section 5.04 Payrncnt of Claims. 'fhe Sucoessol Agenc¡, shall promptly pay and

dischalge, or c¿ruse to bc paìcl and dischalgcd. any antì all lawful clainis lor labor'. uratet iaLs ot'

supplics which, il'Lrnpaid. ntight become a licn ol chalge upon the ¡r|opelties owncd Lry thc Successor

Agency ol Lrpon tlre Pledgecl 'l'¿rx llevenues ol other âr.rìolìnts pledged to the payurent of tltc lloncls, ot'

30DOCISOC /l 704 25(^'41200s90-000 I

âny pârt thercof, or upon âuy funds jn the hands ofthe -fr'ìistee. or rvhich night impail the secutity offhe Bollds. Nolhiug helein contained shall require the Sr¡ccessol' Agency to nrake any such paynrcut

so long as the Successor Agelcy itr good laith shall colltest the validily ofsaid claims.

Section 5.05 Iìooks and Accor¡nts; Financial Stâtcnìents. The Successol Agency shall

kee¡t. or cause to bc iicpt, ¡tlclpel books ol'lecold and accounts, sepatate ltom all otltet leoolcls and

accou¡rts o1'1he Successor Ageucy and the City, in which conrplete and colrect cntlies shall lre nrade

of all tlansactjons lelatil'ìg to the Plo.jects, the Pledged Tax Revetlues and the Special Ftlnd. Such

books of recoltl a¡d accouuts shall at all tirnes during business hours be subject lo the inspection of'

the 2015 lnsuter'. any othel Insurer and the Ownels of no1 less thall ten pelceltt (I0%) in aggregate

plincipal anount ofthe llonds tlìcn Outstanding. or their replesentatives autholized in wliling.

The Successor Agenc¡, wìlJ cause to bc plepated, wilhin fone hundred anr] eighl¡, (180) daysl

aflel tlte closc of each Fiscal Yeal so long as the Bonds are Outslauding. oonplete ar-rdited financialstâtetrenls with lespecl to sLrch Fiscal Yeal showing the Pledged Tax Revenues. all disbutseurents oipletlgecl Tax Revcnues and the financial condìtion ol'the Redevelopment Projeots. including thc

balances in all h¡ncls aud accolllts lelatlng to the lìedeveloprrenl Projccts. as ol'the end of stlch

l'isoal Year'. I'jte Successor' ^genc)/

slìall prolllplly fulnisÌl a copy ol'such lìuaucial statenrerìls to tl'ìe'liuslee, the 2015 InsLllel alcl any olhel Insule| at uo expeuse and 1o any Ownct upon teasonable

r.ecluest and â1 the cxllense o1'such Owtrel, In addition, the Successot Agency shall clelivel to the

lìustee, the 2015 lnsulcl and any olhet'Insuter, ou or abottt lìebrualy I ofcach year, a Wt ittetlCleltificate of lhe Successor Agency stating that tlle Successor .A.getlcy is in compliance with itsobligations heleundel. Ihe'lìustee shall have no obligation 1o leview any finalcial statetretltsprovicled to it by tlìc Successot Ageucy.

-l-he Succcssor Agency agtecs, cottsettts and will coopelate irr good fàith to plovide¡ulonl'ìalion leasonatrly Iequcsted by the 2015 Insurel aud will further plovicle appropriately

designâled individuals antl officers to discuss the affails, finauces and accouuts of tlìe Successor

Agercy o| any other r'ìlâtter as the 2015 lnsule| ntay reasonably request.

Scction 5.06 Pì'otccfiou of Sccurity and Rights of Orvners, The Successor Age cy rvillplesclvc and plotect the sccur ity ol the Bonds and the rights of the Ownels. Flom and aftel the

Closing Date w¡lh respect to the 201 5 Bonds. the 201 5 Bonds shall be illcolltestable lry the Suocessot'

Agcncy.

Section 5.07 l'ayments of Taxes and Other Charges. Excellt as othelwise plovidecl

heleiu. the Successor Agency will pay and dischatge: ol caì.ìse 1o be paid and dìscharged, all taxes.

service chalges, assessn.ìelts ancl othel govelnnrcntal chatges which may lreteafter be lawlLrlly

ìmposed upon lhe Successor Agency ol the propelties therì owned by the Successor Agelìcy ¡tl the

Redevelopnent Plojccts. ol u¡ron the revenues therefioln when the same shall become cltre. Nolltirtghcrejn contalned shail lequile the Successot ,A.gency to mahe atly such ¡laynlcnt so long as the

Successol Agerc¡, in good faith shall contest the validily of sairi taxes. âssesslìrents ot clratges. l-he

Successol Agenoy will duly obselve and oonl'orm with all valid reqì-rirenìents of atry govet nmetttal

âuthority relalive to thc Rcdevelopment PIo.iects ot atty patt thereol'.

Section 5.08 Taxation of Leascd Pt'olìerty. All anroutlls derivcd Lry thc Successot

Agcllcy purs âllt to Secljon 33673 ofthe l,aw with lcspcct to the leâse ofpropeff¡,fot ledevelo¡rmenl

shâll be lr'eâted as Pledged ['ax Rcvenues fòr'all pttlposes olthis llldcntulc.

l)o( SO( /l704 25óv4/200-590-000I3l

Section 5.09 Disposition of ì'r'ope rty. Thc Successor' Ägency will not pârticipâte ill 1l'ìe

disposition ofany land ol leal property iu a Iìoject Alea to ânyone whiclt will result in such;:rlopettybeconting cxenìpt flol'n laxation Lrecarìse of public ownetship ol use ol olherwise (except prolterty

dedicated lòr public right-ol'-wây and except plopelty plalned lòt public ownetship ot use by a

Iìei1evcloltntent PIan in ellect ou the d¿ìte ofissuance o1'the 2015 lìcrrds) so thât stìcll dis¡tosition

shall, wheu taliel logethet wìth other sucl'ì dispositions. agglegate lÌìore thân ten pelcellt (10%) of tltelancl alca in the a¡rplicable Plojcot Alea unless such disposition is pelrnitted as heleinafler ¡rlovicledin this Seclion 5.09. lf the Successor Agency ploposes to p¿ìúicipate in such a disposition, itshalltlleÌeLìpolt alt¡roint an lndependent Redeveloprrelìt Consultânt 10 report on the effect of said proposcd

disposilion. I1'the Report ofthe Independert Redevelopl]re nt Cousullânt concludes that the seculit¡,

ofthe llonds. or thc rights ofthe Successor Agency. the Bonclou,nels and the'lrustee heleunclel willIot be llraterially impairecl by said ploposed dìsposilion. tlìe Srrooessot Âgency may thereaftet ntake

such disltosition. I1 saicl Report colcludes that such secLrily will be uralerially impailed by said

¡loposecl clisposition. the Successot Agency shalJ disapprove said proposecl disposi{ion

Scctiou 5.10 Maintcnancc of Pledgcd Tax Revenucs. I'he Successol Âgency shall

contply with all lequilernents of the Law and the Dissolulion Act to ensule 1he allocation and

pâyu'ìelll to it ofthe l)ledged Tax Revenues. The Successol Agency shaÌl no1 uudertâl(e ptocecdittgs

lbl antendmcnl ofany ofthe Redevelopnrent Plans ilsuch aurendment shall lesLrlt ir pâyrÌenls to oÍìe

ol nrole taxing eutities pur-sLrant to Sectior'ìs 33607.5 ard 33601 .1 of thc Law Lrnless the Successor

Agency shall fitst obtain a wlittcn opinion ofan lndependent Redevclo¡r rcnt Consullant thâl such

paymel'ìts rvill not advelsely impail the Successor Agency's ability 1o pay debt service ott the Bonds.

Section 5.11 Tâx Covenânts. Lr cornection rvith tlie 201 5 llonds, the Succcssol Agercycoveuauts alld aglees 10 col'ìtest by court action or othe|wisc ally asselliol'ì by the tJnited States ofAmcrica or' âny departl'ì.ìeuts or ager'ìcy thereof thal tlle ilìterest receivetl bv the Bondowuels is

iucludable irr gloss incomc of the recipient undet federal iucome tax laws on the date of issttanoe ofthe Bonds. Notwithstandilg any olher provision of this lndenture, âbsellt arl opinion of llondClou¡rsel that the exclusion flom gloss income of interest wíth respect to the 2015 Bouds ancl any

Par'ìty l3onds will not be advelsely aifccted for lederal iucome tax putposes, thc Successot' Ageucycoven¿ìrì1s 1o colltply wìtlr all applicable requirernents of the Code necessaly to ptesetve such

exclgsion hont gross inconte and spccifically covenar'ìts, without limitìng the gcnerality o1' the

folego ing, as lollows:

(a) Plivate Activitv. The Sucoessol Agency will take Do âclioll or teltain frour

taklng any aclion ol nahe any use ofthe proceeds o1'the 2015 Bonds or Parity Boncls ot of ary othel

mouies or ploperty whioh wor¡ld cause the 2015 Bonds or Pality lìonds to be "private activity bonds"

within the meaning of Section l4l of the Codel

(t ) Arbitlaee. TIte Successor Agency will nraire no use of the ploceeds of the

2015 llonds ot Pality Ilonds or ofany othel alìrounts ol plopelly. regatdless ofthe soulce, ol lake

any aclion or leflain frrn taking ar'ìy âction which wjll cause lhe Bonds or PrìIily llonds 10 be

"aIbitlage bonds" rvithin the meallil.ìg ofSection 148 ofthe Code;

(c) I"eclelal Guatanty. l-he Successol'Agency will llakc no use oithe ploceeds

of thc 2015 lJonds ol Pârit,v Bonds ol take or oulil to lake any actior that woulcl catlse lhe 2015

Ilonds or Parity l onds to bc "fedet'ally guaranteed" within the nrearing ol'Section 149(b) oitheC-'ocle;

ì)O(-S()( /I 70425óv4/200590-000 I

32

(d) lulolntation lìeÞorting. l'he Sucoessol Agency will take ol cause to be taken

all necessary âction 10 comply with tlie infolniational reportir'ìg tequiteureut oi Section 'l49(e) of tlteCl od e:

(e) I led,re Bonds. l'he Successor Agency \\,iìl ¡nal<e rto usc ofthc ¡rtoccccls ol'the201 5 Bonds o| any l)ality Bonds o| any othel arrouuts ol propcrty. r'egalclless of thc soulcc. oI tahe

any aclion ol reflajn fronr taking any action that would cause eithel any 2015 Bonds ot âny ParityUonds to be considercd "hedge bonds" within the meaning of Sectìon 149(g) ofthe Code Lrnless the

Suocessor' Ägency tahes all necessary actiou to assule compliance with tbe requirelllents of Section

149(g) o1'1he Code 1o naintail the exclusion florn gross income of intcrest on the 2015 lloncls ol any

Parìty llonds fol fedelai income tax prttposes; ard

(1) Miscellaneous, The Successor' ,Agency will take lo actìon ol lefiain fionr

taìring any action inconsistent with its expectations stated in lltat cerlain Tax Celtificate execuled by

fhe Successol Agency in connection with each issuance of2015 Bonds and Pality llonds ancl willcontply with the coveualìls and requirenrenls stated thelein and incolpotaletl lry lcferencc hctein.

Scction 5.12 Continuing f)isclosrrre. The SuccessoÍ Agency he|eby covcnaDts aud aglees

that it u'ill conrply with and calry oì-rt all of the ¡rrovisions ofthe Conlinuing Disclosute C.lelt!1ìcate.

Notwilhstând¡ng any other ¡rrovisìon ol'lhis Indcntute, fà!lule of the Successol'Agcncy to couplywilh llre Continuing Disclosule Ccltificate shall uot l¡e consitieled ân Event oi Delaultl howcvcl. the

T'lustee a1 the leqì-lesl ofany Participaling Underwtiter (as defined in the Contiuuiug DisclosuteCe|tificatc) oI the holclels of al least 25o/o aggregate prinoipal arrotìnt of Otìtstanding Bonds. shall.but only 1o the extelÌ1 tlìe Trùstee lras been indemnified fioul and against au¡, loss. liability, cost or'

expense. inclucling. without limitation, fèes and expenses of its attotneys and advisols ancl addition¡llees and expcnses ol'the Trustee, tal<e such actions as rray Lre necessaty and apptoptiatc to conrpelperlolnrauce. including scckìrg mandate ot specific petlotuauce bv coutt older.

Section 5.13 Compliance with thc Dissolution Act. The Successol Agency shall conlplywith all of the lequilements of the Law and the Dissolulion Act. Vy'jthout lirrìting the generality ofthe f'oregoing, the Successor Agerìcy coveÍìants and agtees to file all requiteci slateuettts arld holcl allpLrblic healings |equilcd utdel the Dissolutiou Acl to assulc compliance by the Successor'

^ger]cywitlt i1s covenants lleleulrder.

Fulther, it wlll take all actiors requited uttdct'the Dissolution Ac1 1o itlclude

(i) scheduÌed debl selvice on the Existing Boltds attd any atlìotttltsrcquìr'ed to leplenish any ofthe reselve accour'ìts estatrlished wilh respect to Existi g lSontìs.

(ii) scheduled debt service on the 2015 Bouds and any Parity Debt and

at'ìy anloult tequired under this lndentLlle or any Patity l)eb1 Instltìrìrelìt to rclllenish tlre IìeserveAccount establishecl he|eundcr or the reselve account estatrlished undel any Palily Debt Instrument,and

(iij) anlouuls due to auy lusurcr undcl an insularce or surety bolldagfeer'nent.

in lìecognized ObJigation l)ayment Schedules lbl each six-mouth peliod so as to ellâble the ^uditor-Contlollel of'the Coùuty of lì.ivelside to distribute lìom the Rcdcvclollr erìt l)r'operly'l ax'lìust Fund

33I)(X"SO('/ I 70425(,v4l200590-000 I

to the Successor .A.geucy's Redevelopment Obligation Relilemenl Funcl on cach January 2 and June I

amounts tec¡uiled l-or'the Successol Agency to pay plincipal of. and intercsl on. the Bouds cotringcluc in thc lespective Senriannual Peliod and to pay arrounts owed to any Insulet. as well as lhe olhelanì0unts set lirth above,

ln oldel lo âccolnplish the lolegoing. the Successol Agency shall take all aclions lequileclundcr the Law to irclude in the Recognized OLrligation Payurenl Schedule llot each Seuian¡rualPeliod (i) dcbt scrvice on the llonds. Existing Bonds. Parity Debt and ary amoLrnts required toleplenish the Reserve Account to the Reselve Rcquilemcnt on aiìy reserve fìurds estal¡lishedtheler¡nclel to the applicablc rescrve reqLrilenrent theleundcr', and (ii) all arnounts due and owing toany insuler'. so âs to euable the Iìivelside Counly Audilor'-Clonll ollcl to djstributc flonr thclìedeveÌopnreul lìopelly Tax Tlust Fund fot deposil in the Redevelopment Obligation Retirerìrel'ìt

Irund on each January 2 and June 1, as applicable. aurounts leqLriletl 1o enable the Successor -Agencyto pay tinlely plinorpal of ând inlelest on. the Bonds oll â timely lrasis. In oldel to ensule lhalan.rouÍìts are availabÌe f'ol 1he Tlustee 1o pay debt servioe orì all Or¡tslâlding Boncls on a timeìy basis.priol to cach Janualy 2 and JLrle I (each au "lìP'l ì-F DistÌibt¡tion Date") as tequiled by the

Dissolution Act). fol so long as âny Bol'ìds ale outstancling. the Successol Agency shall sLrtrmit an

Ovelsight Board-approved lìecognized Obligatiou Payment Scheclule to the S1âle Depârtlìent 01'

Ìrinance and to thc Rivelside County Aud ilor -Cìontloller that shall iuolude (i) onc-hall'of all debtselvice due ou all Outstaucling Bonds for'the Bond Yeal in which such .lanuâry 2 and June 1 occut.as well as all anounts due ard owing to any insurer. ancl (ii) any amoult Ìequired to cure anydeficiency iu the Reserve Accourìt pursuânl to this Indentule (including âny âmourts required due to

a dlaw ou the Qualilìed Reserve Account Credit llìstrurrent).

ln acldition, the Sr¡ccessol Ageucy covenânts that it shall. on or belole Decembel l of each

year'. 1ìle â Notìce ol'Insufficiency with the lìiverside Cor¡nt¡, ,A.ud itor'-Contlo llel if the amount ofPledged 'lax Iìeveur¡es available to the Successor Agency flotn the Redeveloptnent Property Tâx'l'lust F'und for tlansfer to the RcdeveÌopnrent Obligatiorì lìetilen'ìent Fund on the upcontingJanuary 2 is insufficient lo fully fund all reqìiired amouuls payable fiou the RedeveloptlentObligation Retilerrer]1 Fund duling the l]ext succeeding Semiannual Period. The Succcssor Agencyoovenauts thâl, oÍì ol' befofe May 1 of each year. it shâÌl lile a Noticc of Insulficiency with thelìivelside Counly Âud itor'-Coutl olle l if the anìount of Pledgcd Tax Rcvcrues available 1o the

Successor Agency flon] thc Redevelopmeut Propelt), Tax Trust Funcl lol tlansfer to tlìcIledeveloplÌent Obligation Retirelreut FLrnd on lhe upcoming July I is insufficient to fully fund allletluiled anrounts payable fiorn the lì.edevelopment Obligation Rctirement Fund duling the nextsucceeding Semianuual Pcl iod.

hr the evenl the ¡rrovisions set fblth in the Dissoluliou Act as of the Cìlosing Datc of tliellollds thât lelate to the filing ofRecognizetl Obligation Pa¡,nrent Schedules alc amendcd ol niodiliedin any manner, the Successor Agency aglees to tal<e all such actious as ale necessaly to oolrply witlìsrìclì âmended ol niodified plovisions so as to ensrìre 1he limeJy pa¡,nrcnt of clci:t sclvice on theIlonds.

Section 5.14 Furthcr Assurances. The Successol Agcncy will adopl. rnahc. execute anddelivel any and all suclr fultÌrer lesoluliorls. ilìstrunleuts aucl assuLauces as uray [re leasonaLrlynecessâly ol'proper to cany out the ¡ltenliou ol to facilitatc the per'fornance of thjs lndenlure. ancl

1òr the better assuling and confirrning unlo 1he Owuers of thc Bonds thc lights ¿urcl benefits ¡rlovidedin lhis Ìl'ìdenture.

D( )CSO( /l 70425óv4/200590-000 I

34

ARTICLI' VI

TIID TRUSTBE

Sectiorr 6.01 Dulics, Inrnrr¡nities alltl Liabilitics of Ï't'rtstcc.

(a) Thc Tl ustee shall. pliol to the occurlence of an Event ol'Delàull. and af'ter the

curing ot waiver of all Events of Default which may have occulled. pelfonl such duties and onlysuch duties as ale specilÌcally set fblth in this Indentule and no iniplied covenants, duties orobligatious shall tre read into this ludenture against the lìustee. The Trustee shall. dulilg tlre

existence of any lìvent of Delaull (which has not becn culccl ol rvaivetl), exelcise such of the lightsand porvels vested in it by this Indenture. aud L¡se the samc degree ofcate and skill in their excrciscas a pludent mau wor¡ld exelcise ol usc uudel the cilcumstances in the conduct of his own affails.

(b) 'l'he Successol Agency may lemovc the lìustee at any tilre, unless an Eventof Delault shall have occr¡rred and theu be continuing. and shaìl lenove the 'lì tìslee (i) if at any limeleqLrested lo do so by an inslrulreut ol couculrel]l ;ustruulcnls in wliting signed by the Ownets of notless than a niajotity in aggregate plincipal amounl o1'1he Boncls then Outstanclirg (or' theit attotneys

dLrly autholized in w|iting) or (ii) ilat any tirne the Successor Agcncy has l,,nowledge thât the Trustee

shall cease to be eligible in aocoldance with subsection (1) ofthis Sectiou. or shall beconre incapable

of acting. ol shall bc ad.judged a lrankrupt or ìnsolvent, ol a lccejvcl ol'the'lìustee or its ploperlyshall be a¡rpointed, or any public oflìcer shall tâl(e col'ìtrol ol chalgc of tlìe lìustee or of its plopellyol aflails lol llre pulpose of rehabilitation, oonselvation ol liquidation. lu each case such lemovalshall be accomplishcd ì:y the giving of wlitten notice oisuch removal Lry the Successol Agerìcy totlle'Iiustee. with a copy to âny lusurer, whereupon lhe Successor Agenoy shall âppoirìt â successor

Tlustee by an instlulneut iu wliting.

(c) 'l'Ìre Ttustee nlay at ¿ìny littte Icsiglt by giving rvl itten notice of sucl.t

resignation to tlle Suooessol Ageucy aud by giving the Owners ancl any lnsutet notice of such

lesignation by fitst class mail, postage prepaid, at their respeclive addtesses shorvn ou the

Regisllation Boohs. Upon leceiviug such rì01ice ofresignation. tlìe Suooessol ,Agency shall pronptlyappoint a suocessor Tlustee by au instlulìrel'ìt iu wliting, rvith notice of such appoìnttnent to be

hrlnished to any lnsuler.

(d) Any removal ol resiguatìon ol'the T|ustee and apPoi tment of a suocessol

frustee sÌtall beconre effective only upon acceptanoe ol' appo ¡n ln'ìer'ìt by thc successot 'lrustee. Ifnosuccessor 'l'r uslee shall have been appointed and have accepted appointtrent within fotty-five (45)

days of givìug nolice oi rclnoval ol notice of resignation as aÎolesaid. the lcsigning Jìustee ot âtty

Owner (on behalf of such Orvnel ancl all othel Ownets) ntay petition any coult of competeltjulisdiction at the expense of the Successol Agcncy for the âppointlllent of a succcssol' Tl ustee, aud

such court lrây tÌ'ìeleupon. aftel suoh notice (iÎ any) as it rlay deem plopet, appoiut suclr successor

Trùstce. Any suocessol Tl'ustec appointed undel this lntjenlule shall signify its acceptance ofsuchappoirltrnent lry executing, acknowledging ancl dcliveling to the Successor Agency ancl to its

¡tledccessor' 'lì ustee a wril(er'ì acceptâlce theleol, and theleLrpon such successor Tt ustee. wilhout auy

fulthcl act. deed or conveyance. shall beconìe vested with all the nloneys, estates, ploperties. r'ights.

powets. tlrìsts, duties âud obligatìons ol'such prcclccessor'lìus1ee. with like eflect as jf originallynaned Trustee helein; but, ncvertheless al the Writtcn lìequest 01- the Stìccessor Agency ot the

lcquest of the sucoessol Trustce. such pledecessor 'lìLrstee shall execLr(e and dclivel any and alliltsh un.ìeltts of oorrveyance ol fulthel âssurar'ìce and do such other tl'ì¡llgs as uray teasonably be

I)O( SO( /170425(rr,4/200590-0001 35

required fol n'ìore îully and certainly vcstiug in ând confillling to such successot lìustce all the

right. title ancl intelest of such pledecessor' 'lìus1ee iu and to auy plopelty lteld by it uuder this

Inclentute and sÌtall pay ovel.lr'ansfet. assign and clcljver 1o the successor Trustee any rlroltey ol otlterplopelty sub.ject to tlle ltusts and condilions heleil sel lolth. LJpon request olthe sLìccessor Trustee,

the Successol Agcncy shall executc ancl delivel any and all insttumenls as rì'ìay Lre teasonatrly

lequiled lor nole hrlly and ccrtainly vesting in and confìr'nring 1o such successol lìuslee all sr¡ch

moneys, eslates, propelties. rights. ¡rowels. tlì.ìsts. dtities and obligations. Upon acceplance ofappoiutlìent by a successor'lrustee as plovicled in this subsection. tlle Successor Ägency shall cause

either the ¡tletleccssor' 'llustee ol the successol Tl'ustcc to mail a notice oi the successiol of such

Trustee to the trusts heleunder to each r'âting ageDcy which then has a cu eDt rating on 1he Bonds

and to the Owners at theil respeclive âddresses sht¡wtt on lhe Rcgistr¿ltion llool(s.

(e) If au Event o1'Delault heleundel occurs wilh rcspect to auy Bonds of whichtlìe Tlustee has beer given or'ìs cleened 1o havc uotioe, as plovided in Sectjon 6.03(d) heteof. thellthe Tlustec shall imnredialely givc wlitten notice theleol. try fir'st-class mail to any lrsulet ancl the

Ownet of each sr¡oh lloud. r.rrlless sucÌr l:lvenl of Delirult shall have been curcd befole the giving oisuch nolice; ¡tlovided, however', thât Lnless such Evcut o1 De1Ìrult consisls of the failule by the

Successol Agency to nrake any payn]cnt when due, thc 'lìus1ee shall, wilhin thifly (30) days ol'lhe'Iìustee's hnowledge theleol. gìve such nolice to any lnsuler. ând the Tltìstec. with the consenl ofany I¡surer ntay elect uot to give such uotice if and so loug âs the'lìus1ee ìn good faith detertnirles

that it is iu tl'ìe best interesls of the Bondorvler s ttol to gìve strclt rlotice.

(f) The Successot Agetrcy aglecs thât. so lollg as any Bouds ol an]' Pality Debt

ale Outstandilg, the Tlustee shall be a financial ilstilution lraving a trust olfice iu the State, having(or in the case of a colpolation ol trust company included in a bank holding oonìpauy systeÍn. tlìe

lelated l¡auk holding company shall have) a collbined capital and surplus of at least $75,000,000.and subject to supelvisiolt or examinalion by federal ol state autl'ìority. lfsuch linancial instittÌtiorlpublishes a lepolt of couditiolr at leasl annually, pulsuâlìt to law ol to tbe requ il elt'ìellls of any

supelvising or exanrining authority above refenecl to, therì lor the purpose of this subsection the

combined capital and surphrs of such financial institution shall be deemed to be its combined capital

and sulplus âs set forlh in its nost lecelìt report ol'condition so published. In câse at any tiure the

Tlustee shall cease to be eligible in accordauce rvith the provisions ofthìs sr¡bseclion (1'). the Tlustee

shall lesign immediatel¡, in the rrannel ancl with llre eflecl specilìcd in this Seclion

Section 6.02 Merge l or Consolidation. Auy oonrpary inlo which tltc Trustee may he

mergecl or convelted ol wlth which it may be consolidatcd or âny collìpâny tesulting ltotn any

metger, convelsiou or consolidation to which it shall be a party or any ootlpâuy 1o whjch the Tltlsteemay sell or' lr'ansfel all or sutrstantially all of its corpolate trust busilless. plovided such cor'ì.ìPally

shalì be eligible undel suLrsection (l) of Section 6.01, shall l¡e the suooessol to such Tlustee withoutthe execution or' filing ol' any paper ol any ftttther act. anything heleitl to tlìe contrary

nolwithstand iDg.

Scction 6.03 Liâbility of Tlustcc.

(a) I-he lecitals of facls hclcjn ancl in the llonds contained shall be tahen as

stâteuleu1s of the Successol Agency, ând tlìe Trustee shall not assuure tes¡ronsibility for the

colrectuess of the sarre. nol nralçe any reprcscutations ¿ìs to the validily ol sullciency of this

Indentùte or of the seculity l'ol the llonds or thc tâx stâtr¡s of inlerest tl'ìcreoll nor shall iuoLu any

responsibility iu respecl theleof, other'than as explessly slaled hetein. Thc Trustee shall, howevel. be

36IIOCSOC/ i 7{.ì4256v4/2005 90-000 I

rcspolìsillle for its represenlrìlions conlained in its cettificale of authentication on the Ilontls. TheTlustee shall not lre liâble in connection with the pellolnra¡ce of its duties hereundel. except fot' itsown negligence or misconduct. 'l'he Tlustee shall not be liable lol the acts of any ageuts of theTlUslee selected by it with due ca|e. Thc 'Iìus1ee ancl its oflìcers and clnployees lrây become the

Ownel ol'any Ilonds with thc saure righls it worìl.l have if they were llot Tt'ustee aud, fo tlìe extentpernlitted by law, may act iìs depos¡toly lol and perrrit ar¡r ol its oÎlìcels ol' dilectols to âct âs â

rnember o1, ol in an¡, othel capacily with lespect to. âny coulrìlittee l'olnred to protect the lights oftheOwnets. whethel ol lìot suclì committee shâll repleseut lhe Owucls of a urajor ity in pr-iucipal amountofthe Bonds then Outstând iug.

(b) 'l'he l|ustee shall no1 be liable with respect to any actioD tâlien ol oÍnilted lobe lalten by ìt in accordance with the dilcction of'the Owners oi not lcss thâ¡r â nlqiority in aggregateplincipal amoult of the Bouds al ll'ìe tin'ìc Outstânding lelâting to the time. uretlrocl ancl place o1

condr.rcting any plocccding lòr' any lemedy avajiable 10 1he 'ìll ustee, ol exercising auy lltÌst or powerconfelled ìipor'ì ll'ìe Tlustee under'this Inden[urc.

(c) 'lhe 'lj Lrstee shall not be ljable fol any aclion tal{cn by it and believed by it tobe aulhol ized ol within the disclelion ol lighls or'¡:rowels coulèrred r"rpon it by this lrdentule. excepllol actions arising fionr the regligence or misconducl olthe -lìuslee. Whclc thc J'rustee is gìvett the

¡relrrissive light to do things erunreratcd in this Inclenture. sLroh liglrt shall not be construed as a

nrandaloly duty.

(d) 'l'he'[ìustee shall nol be deenled ltl have knorvledge ofany Event of Delaulthereundcl unless and until a res¡ronsitrle oflìcel shall have actual knowledge theleof. or shall have

received written notice thereof from the SLrccessol Agency at its Principal Colporale 'Il Lrst Office. Inthe absence ol such actual knowledge or uotice, the 'lì uslee rray conclusiveÌy assunle thât uo llveltlof Default has occurled and is contiuuing t¡nder this lndentule. Iìxcept âs oll]erwise explesslyptovided hereiu. the 'llustee shall not bc bound to âscertain ol inquìre as to tÌre perfbtmance ot'

observance by any othel party ol'any of the terms. conditions. covelìar'ìts or agreerreuts heteiu o| ofany ofthe docurÌents executcd in couleclion with the Bonds. or âs to the existence ofan Event ofDefault theleutdel, l'he Tlustee shail not be lespousible lol the validity or effectiveness of any

collatelal given to ol held by it. \ ithout limiting the genelality of'the folegoing, the Tlustee mayrely couclusively on tlre Successol Agency's celtificatcs to establish the Stìccessol Agency'scoupliance with its lìnânciâl covenants heleunder', incJuding, witÌlout linlitâtiort, its covenaulstegalding tlre deposil of Pledged lax Revenues into the Speciâl Fr¡nd and the investment ancl

application of uroneys on deposit in the Special Fund (othcr tlìarì its covelal'ìts 1o tlansfel suclr

lìrolìeys to the il\'ustee when due hereundet ).

(e) The Tlustee shall have no liability or obligation to the Bondou,ners withIospect to the pâyulenl of dcbt service <ln the Bonds lry the Suocessol Agency ot with respect to thcobservance ol performance by the Suocessol Agcncy ol the otirer condiliorls, covel'ìânts and termscontained in this lndenture, or with respect 10 ll'ìe invcstnìe¡rt of ary moreys in any fuud or accoLìnt

cstablished. held ol maintained by tlìe SLlcoesso| Agcncy iÌlrsuaut to th¡s lndenture ot olhelrvise.

(0 No plovision olthis Inclertule shall lequile the Tlustee to expcnd or risÌi its

own l'unds ol othelwise incul ary financial Iiabilily in the ¡relfòrmance ofany of its duties heteundel,ol il the exelcise of any of its lighls ol powers. I'he 'lìustee shall be enlitlcd to intetcst on allârrounls âdvâl'ìced by it at the nl¿lxintLrll t ate pct mifted by law.

31l)(lCS(lC/ I 70425(^',1/200590-0(JlJ l

(g) Ihe lìustee nray cxecute any of the tIUSts ol powers heleundel or'pel'fotnrany clLrlies hereundcr eithel di|ectly ol by or thlough agenls. attoflrcys or leceivels ând the Tluslee

shall not be lesponsible fol any intenlioral misconduot ol negligeuce or'ì llre part of auy agen1.

âltolley ol receivel appoìnted with tlue cate by it heteundet.

(h) Thc 'l'r'ustcc sìrall have no lcsponsibllity, opinion. or liability rvith respeot 10

any informatiol. stâtements or recitâl in any offcling tnellolanclum ol othel disclosurc matelialprcÞared oI distributed rvith respect to the issLlance ofthc Bonds.

(i) Belotc taking any action uudel Article Vlll ol this Alticle at lhe tcquest ofthc Owners or aly lnsuler'. thc Ttrìstee rray lequirc that a satislàctoly indenrnity bond be lulnishedby the Ownels ol aly lnsuler'lol thc leirlbulserrent of all expeuses to which it may be ¡rut and toptotect it agaìlst all liability, except liability which is adjudicated to Ìrave lesulted fiorn its

negligence or willful Íì.ìisoondLìcl in conllection w¡th ally âction so tal<en.

C) 'l'he l-lLrstcc agrees to accept ancl act u¡:rort ìllstruclior]s ol dil'ections pursuant to

1l'lis ll]del]lurc sent by ulsecu|ed e-mail, lacsinile lral'rsÍnission ol olhel sirnilar unsecuted electroDicrnetlrods. plovldecl. horvcvcr'^ that, the lìuslcc shall have Ieceived an incumbcncy certifìcatc Jistìng

pelsons designatcd to give such instnlclions or directiol'ìs and coutaitring speciuren signatutes of such

desiglated pelsons, which such iucumbency celljficate shall [¡e amended aud leplaccd whenevct a petson

is to l¡e added o| dclcted fiorn 1l'ìe Iisting. ll the Successol AgcDcy elects to give the Trlìstee e-rnail orfacsiu.rile instructious (ol iusttrctions by a similal eleclrolìic rÌìetl'ìod) and the Trustee jl'ì its discretìon

elects to act upon such instruclions, the Tl.tìstee's unclclstanding of sucl] ìnstrì-ìctious shall be deemed

contloJJirrg. I'l'ìe'lì'us1ee shall rrot be Iiable lor any losses, costs or expenses arising dilcctly or indilectlyfi'olìl the Trustee's leliance upon and compliance wilh such instluctions notwitl'rs1ândirìg sucl'ì instltìclionsconflict ot are il'ìcol'lsistent with a subsequent written ìnstlì"rction. Tlìe Successol Agetrcy agtees to

assurnc all lisJis arising or¡t oltlle usc ofsuch electrol'ric rrethods to subulil jl'ìstructìol'ìs and dileclions tothe Ttustee. including without liuritalion 1l'ìe lisl{ oithe'flustee aclil]g on unauthorized justrltctions, and

the risk of inte|ceptioD and rlisÙse by third parlies.

0l 'l'he Tlr"lstee shall uot be liablc to the palties hereto ol deeuled in bleach ordefault hcreundel il ancl to lllc exteut its petlolmance hereundel is pleventecl by teason of fotcentajeulc. -I'he telm "lòr'ce majeurc" n.ìe¿ìns ¿ur occullence thât is beyond tl'ìe contlol oflhe Tl'ustee

and could lot have been avoidcd Lry exelcising duc cale. f'oloe rrajeule shall inclLrde bul not bc

linlited 1o ¿ìcts of God, lelrolism. war, riots, stril(cs, fir'e, floods. eat'thquakes. epidemics ot othet

sir.nilal occun ences,

(l) The Tlr¡stee shall not be lesponsible 1òr'ol accountable to anyone fol the

subsequent use or âppl¡catìorr ol any moneys whioh shall be leleased ol withdrawn in accoldaucewith the plovisions hereol

Section 6.04 llight to Rely on l)ocuments antl Opinions. The Tluslee shall have no

liabilily in acting u¡ton auy uolice. resolutiol, requesl. oouseul. order'. ccltìficatc, r'eport. opiuion,fäcsillile lr'ansmission. electrol¡c nrail. ol othel paper ot documettl tcasoualrly bclievcd by it to be

genuine and to h¿ìve beel'ì signed ol plesclibed by the plopel pâÍy ol par'lies. attd shall not bc

lequiled to nrake an¡, investigâtiou into the lacts ol rìratlers contained thercon. Thc Ttustee lnâyconsult with counsel. including, without liniitatìou, counsel o1'ol to the Successot Agency, withregalcl to Iegal c¡rcstions, aud, in 1he absence of negligence ol inlenlional njsconcluct Lry the 1ì.ustee,

the op¡uiolr of'such counsel shall be ÎL¡ll ancl complete authotizalion and protection iu tespect ofaryaction taker or suflèred by the'lìustee heteundet ilt accotclance thelewith.

l)OCISOC/l 7(1,1256v¡l/200--.90-000 I

Thc 'lìus1ee shâll no1 be bouncl 1o recognizc ¿uìy persol'ì as the Ownel of a Bonci t¡lless attcl

until such Bold is sLrbltitted lbr ins¡teclion, if lequìred. and his title thercto is establ¡shed 10 the

s¿ìtisfaction of thc Tluslce.

Whencvcl in the acìnrinistration of the tnrsts inrposed u¡ron it by this lndcnturc the'lìus1eeshall cleem it ueccssary ol riesilal¡le thât a nafter-be plovecl or established plior 1o tahing ot sul'felingany âction heleundcr'. sr¡ch ntâtter' (rìnless other evideuce iu tespect theleof lre helein spccificallyplesclibed) nay be decntccl to be conclusivcly ploverl and establishcd by a Wlitten Cellificatc oltheSucccssol Agency, rvhich shall be full warrant to the Trtìstee fot any actiou taken ot sulleled undct'

the ltrovisious of this lndentule itr leliance upon suoh Vy'ri11en Celtificate. but in its discletiort lhe

Trustee u]ay. in lieu theleol, âccept othel evidcnce of such lÌâ1ter ot uray requile such additionalevidence as it nay cleem leasonablc. lhe'lìLrstec may oonclusively tely on any certifìoate or repollol- any Independellt Accoì-n'ìtal'ìt ol Inclependent Rcdeveloprlenl Consultant appointed by tlìeSuccessol Agency.

Seclion 6.05 Preservâtion antl Inspection of l)ocurnents. All documelts received by the

TlLlstee rìndel tJre ptovisions of this Indcntule shall bc retained in its possession and shall be su[riect

a1 all leasonable timcs u¡ron leasonable rìotice to lhe iuspectiott of and copying by thc Suooessor'

Agency and any lnsulcl ancl any Orvner'. and their agents and lepresenlatives duJy autholized inwliling, duling lcgulal business houts and undet teasonable conditions.

Sccfion 6.06 Com¡rensation and Iudcmuification. The Succcssor Agency shall pay to

the'lìustee fiom time to tine leasouâblc compensation for all selvices Iendered ulldel tlris lndeutt¡lein accordance with the letlel proposal fionr the Trustee apploved by the Successor Agency and also

all reasotrable expenses. chalgcs, legal and consuìting fèes and other disbursements ard those ol its

attonleys (includiug the allocated costs and disbulsemeut of in-house counsei to the extent such

serviccs are not ledundant rvith tliose pr-ovidcd by outside couusel), agents atrd etnployees. inculterliu and about thc ltelfolnrance of its powers and duties under this Indentute. The Ttustee shall have a

Iien ou the Plcclged'l'ax Iìevenucs and all funds aud accounts held by the Trustce lreteundel to secure

tlìe payn]ent to the Tlr¡stcc of all lèes, costs and expellses, including reaso atrle colrpellsâlioll to itsexperts, attolteys and counsel (incluclilg the allocated costs and disbursement of in-house counsel to

the exteut such selvices arc not ledundant with those plovided by outside counsel),

'l-he Successor Agcncy fìrltìrel covenanls and aglees to indernlify, defend and save the-|lr¡stee ancl i1s ol'ficel.s. dilectols. agents and emplo¡,ees, hartnless âgâirst âuy loss, expeuse and

liâbilities including legal fees alìd expenscs wÌrich il may incur to the extent alising out of oI in

collltection with the excrcise and pellormance ol its powels and duties heleundel. including the costs

and expelses of defending agairst arìy claim oi Iiabilil-y. br:t excludilg any ancl all losses, expetrscs

and liabilities which alc due to the negligcnce ol rrisconducl ol1he'frustee. its offìcels. dileclors.ageuts or ernployees. Thc olrligations of thc Successol Agency aud the rights o1'the Tlustee unclel

tliis Section 6.06 shall su|vive lesignation or leuroval of the T lstee undet this IndentuI'e and

¡raymcut ofthe Ilonds and discbalge ofthis lndeutule.

Scction 6.07 Dcposit and Invcstrncnt of Moncys iIt Funds. Moneys in the Debl Setvtce

F'und. the Intetest Account. the Plincipal Account, the Resclve AccouDt, the Iìedenrplion Accountatìd tlle Cosls of Issualtce Fund shall be investecl by the Trustce in Perlnitted Ìnvesln]er]ts as directcd

by the Successol Agcncy il the Wliltcn Request of the Successor Agency filed with lhe lì'ustec,excePt thal ntoneys in the Iìeselve Accor¡nt shall not be invested in Pe riLted Inveshtrenls having a

nratulity of'ntole thau five (5) yeals, unJess any such Pelmjtted Iuvestlrelt is descl iL¡ed in cJause (g)

39l)(X O( / I70425(^'4l200590-000I

ofthe clefinition thercof. ln the aL¡sence ofaly such Wlitten Request ol1he Successol Agency. the'l-rustee shâll invest any such rroreys in PenÌìit1ed Investlrents desclibed in clause (d) of tltedefinition thcreol'. which by their tclns nìâtùre plioÌ to the dale on which such tnoreys ale lequited

to bc paid out hereuuder; plovlded. however, that any such iuvestment shalì be lnade by thc lì ustee onlyif'. pliot to thc dalc on which such ir]\,estrrent is 1o bc made, the'l)tìslee shall havc rcceivecl a WtillenRequest of the Successor Agcncy specilying a s¡recilìc rroney marJiel fund ancl. if no such WlittenRequesl of (he Slrccessor Agency !s so leceived. the lrustcc shall hold sLtch moneys uni¡rvcsted. The'lìustee shâll be entitled to rely conciusively upon tlre writteu iustruotions of the Successol Ageucydilecting investulents ir Permitled Invcstlìrents as to 1lìe fact tlìat each sùch investment is permitted

by the laws of lhc State. and shall not be lequiled to make ftlrfher' ìnvestigalion with respcct thereto.

With respect to âny restrictions se1 forllì iu the above list which embody Iegal co:rclusions (e.g.. tlte

exjstetrce. valldity and perfcctìol of seculity iutelests in collateral). the lìr,rstee shall be entillcd tolely conclusively on an opiltion ofcouusel ol upon a replesentatioll of llte providel ofsuch PelnrittedIl]vcslu.ìcnt obtained ât the Successol Ageucy's expense. Moneys in the Special ìrr'tDd rray bc

invested by the Successor Agcncy ir any obligations in which lhe Successot Agency is legally

authorizecl 10 il'ìvcst its funds. Obligatiors ptlchased as an iuvestrnellt of uoneys ìn an¡, luncl shalll¡e deentcd to tre pâlt of such fund or accounl. All iutelest ol gain cìelived fionr the iuvestnent ofanri¡urls in any ol'thc llurds or' âccoulìts helcl by the Trùstee heleundel shall be depositcd in the

Interesl ,Accorìnt: ¡trot,iclct|, lutt'eyer, that all interest or gai flou the ir'ìvest¡ì1cnt of an]oun1s jn the

lìesefve Âccoultl shall be deposited Lry the 1ììstee in tl]e luterest Accoutrt ouly to the exteDl no1

requiled to cause 1l'ìe baiancc ir the ReseIVe Accourì1 10 equal the Iìesetve lLequitenlenl. l-lìe Truslecnìây act as principal ol agent in thc acquisition ol dìsposìtion of any inveslurent and tlay impose its

oustollâry chargcs therelòr'. 'l-he Tlustee shall incur no liabìlìty lol Iosses atisi:rg ftom any

iuvestnents lracle at the djrection of the Su¡:cessol' Agency of otherwise ulade in accoldance withthis Section. For investment pùr'poses only, the Tt.trstee rìray coulr-lingle the funds and accounls

established heleunder. but shall accot¡nt for eaoh separately.

The Suooessol Agenc¡, achuowledges that to the extent legulations of the Comptlollel of the

Cunency or othel applicatrle lcgulatoly eutily glânt the Successol' Agency the light to r-eceive

brohelagc confirmations of sccnlity trâusâclions as they occrìr, the Succcssot Agency speoificallywaivcs leceipt o1'sr¡ch conlÌlurations to the cxtent permitted by law. The Tlustee will lìrlrish 1he

Successot Agenoy rtonlhly cash tlansaction staterreuts which shall include detâil :fìr'all inveslntettllrâDsactiors nrade lrv the Trustee heleunder'.

AII moneys hcld by the Trustee shall be held in trust, but need not be seglegated fi'our othet'

f'unds unless specifically requiled by tÌris Ittdenlure. Except âs specifically plovided in this

ìndentLrle. the Tntstcc shall not be liâble to pay iÍìterest or] any moneys received by i1, but shail be

liable only to accotìl'ìt to the Successof Agency fol earnings delived fionr lunds that have been

investeci.

'lhe Successor Agency covenal'ìts that all ir]vesllreuts ol aurounts cleposiled in any luncl oraccount oleâled by ol pursuaut to this Indentule. ol othelwise containìug gtoss ploceeds of'the Borlds(within the nteaning ofSectior 148 of tÌre Code) shall be acquirecl, disposed of. and valued (as 01 the

date that valLration is |equired by this Indentule or'1he Code) at Fair Market Value.

Investuteuts iu fùnds ol accounts (or por(ions thcleof) tlìat are subiecl lo a ¡,ield leshictiolrundel applicablc 1l'ovisions ol'lhe Code shall be valucd by the Successol Agency at their present

value (w¡(hin lhe meaning ol' Sectiou 148 of the Clode). lnvestmerts on deposit in thc Rcserve

Account shall [¡c valued on June 30 ofeach yeat al their trari<e1 value.

40D(IC SO( /l 7042,sóv4/200-s90-000 I

Scction 6.08 Accounling Iìecords and Financial Stâtenìcnls. The 'lìustce shall al âlllinres keep, or cause to be kept, plopel books of recotd aud accounl. ptepared in accordance wilhoorporâte trusl iudrìslry standatds. in which accurate entties shall be macle ofall ltansaclions rclatingltl the ptocecds of the Bonds made by it and all fuuds aud accounls held by the Ttustce establishetl

pursuânt to this ll'ìdenture. Suoh books oflccold and accounl sllall bc available lol inspection b¡, thc

Successol A.genc¡, uport reasonable ¡rriol notice. at rcason¿lrle houts and undet leasonab]e

circuntstânces. The Trustce shall furnisli to the Successor Agency, ou at le¿ìsl a ntonlhìy basis, an

accouuting of all tr'¿utsactions in the fornr of its cnstorlary stâlements Ielating to the proceeds oftheBonds and all lìrnds and accounts held by fhe Trustee pulslìâlll [o this lndenture.

Scction 6.09 Other Transactious with Agcncy. 'l'he'ììustee, eithcr as princi¡ral or âgent.

may eugage ilì or [re ilteresled in any fiuancial or otl]er tl'arsâction with the Successot Agency.

AIITICLE VII

MODIFICAT'ION OR AMENDMENT OF THIS INDENI'URIì

Scction 7.01 Amendment Witlr And Without Conse nt of Orvucrs. l'hìs lnclentule alld

thc lights ancl obligations of lhe Successol Agency aud of the Ownels may bc nodifìeil ol arrended

at ar'ìy titllc by a Supplemenlal Indeutule which shall become binding upon adoption wilhout the

conscnl oi any Owners, to the exteut pelmiLted by law, lrut orly lot auy ollc or l'rìole of the lollou irìgpull)oscs

(a) lo add to the covenants attcl agreetttents of the Successot Agency in this

Iudentr¡re conlaiued. othel covenarts alìd agreerì1ents thereaftct to be obselved, including any

covcual'ìt ot agreenìent thal provides fol additional security fol the Bonds. or to lj¡rit or surrettdet atty

lights ol powers hereiu lcserved to ol collfened upon the Successor Agetrcy: or'

(b) to maÌre such provisions for the ltut'pose of curing any ambigr"rity. or ofculing. collecting or su¡rplernenting any defective ptovisiou cortainecl il this Incletttule. ol itt any

other respect whatsoever as the Successor Ageucy may decrn necessary ol desilable, ptovided uudet'

âry circlrtnstallccs tltat such llodifications ol amendments shall llot, in the reaso:rable detclntittationol'1he Successor Agelcy, nratelially adversely aflect the interests ofthe Ownets; or

(o) to ¡Iovide lol the issuancc of Pal ity Debt in acco|dancc with Section 3.05; ol

(d) to alnencl any plovisìon hereoflelating to the lequilements olot complianccwith tÌle Cotle, to ally extcnt whâtsoever but only iÎ and to thc cxtert sùch auendurenl wjll uot

advelsely âlfcct the exerÌìplioÍr fiom fedelal income taxation of intelesl on any of thc Bouds. in the

opin ion ol'llond Counsell or'

(e) to comply with the rcquirenìen1s of a providet of a Qualifietl lìeselveAccount CÌ eclit luslrlìnlenl.

llxcepl as sct lorth in the pleceding par.agraph, lhis Indcnture arìd 1lìe righls and obligalions ofthe Suocessol A.gency and of the Owners may be nrodiliecl or' ¿mended ât any tilre by a

Sup¡rleurenlal Indenture which shall become binding whell the writterì conselll of any lnsuler (but

only with respect 10 any l3olds !nsuted by suoh Ittsutel) and thc Ownets ol'a maiolity in aggregatc

plincipal antount of the Boncls then Outstandìng ale filed with the lìustee. No sLrch moclification or

41l)(X S(lC/ 1704 25(^,4/200590-00(J Ì

au]clìdmeut shall (a) extend the trâturily of or-r'ecluce ll'ìe ir'ìtcrest râte on ally Boud ol othelrvise altel'

or. irrpair. the obìigation of the Successol Agency to pay the plincipal. il'ìlerest, or redemptionprenriums (iÎ any) at the linte and place and ât the r¿ìte and in 1he ctìrrency provided thercitt of atry

BoncÌ without the expless wlilten conseut ofauy lnst¡ter ol llre Orvner ol'such llol'ld. ot (b) tecluce the

ìlerceltâge of Bonds lequileci lor' lltc wl itleu oonscnt to aly sLrch amcnclncnl ol uoclilìcation. Itt uo

cvenl shall auy Srìppleureutâl Indentule modily any ofthe lights or obligatiols 01'1he lìuslce witlloutits pÌiorwlitteu cousent. ll lìo evellt shall any Supplemenlal lndentule rnodily âny o1'(he lights ot'

obligatìons ofaly lnsurer without its plior written collsellt.

Section 7.02 Dlfect of Su¡rplemental Indcnturc. [ìlolr and aftcr the tìue atly

Supplcmeutal lldentule becolnes effective pursuant to thìs Article Vll, this LldclltL¡le shall be

dee¡red to be nlodified and ameuded in accordance lherewith, the leslrective Iights, duties and

obligations of tÌle palties hereto or thelelo and all Ownels, as the case nray be, shall thelcaiter be

delelmined. cxclcised and enfolcecl heleundcl subjecl in all lespects to such nrociification and

a¡reudulenl, and all the teruls and conditions ofany Srtpplemental llldenture shâll be deented to Lre

par'l of the tems and conditions of this Indettttlrc lot any and all ¡rttrposes.

Sccfion 7.03 llndorscment or Rcplâccment of Bonds After Arnentltncnl. Aftcr tlìeel'lective datc of any arrendment or modil'ication heleol putsuant to this Article Vll. thc Stlcccssor

Agenoy nray, with the pliol writteu consenl ofany Insuler'. detclmine thât âlly ol all of thc Bonds

shall beal a uotation. by endorseurent itt lotn approved by the Sttocessol Agency. as to such

alrendme¡t or modificalion and iu thal câse upou denrand ofthc Successot Agency the Owuels ofsuch Ilonds sltaìl preselìt srìch Bouds for'that pulpose at the Plincipal Corporâle lLlst Office ofthe'lìuslee. and thereupol â srìitable rotâ1iou as to such aclion shall bc niade on such Boltds. In lietl ofsì-ìclì llolaliou, tÌre Successol Agency ltìây detcrnitre thal new Bonds shall be pr-epaled at tl'ìe expense

ofthe Succcssol Ageloy and executed in exchange for-an¡, ol all oflhe Ilonds, âlld ill tlì41 case. ttpon

tlerrand of tÌre Successol Agency. the Owuers ofthe Bonds shall plesent sllch ìlolìds lot cxcltange at

the Principal Corpolate Tlust Offioe ofthe Trustee. withoul cost 1o sucil Owllels.

Section 7.04 Amendmen( by Mutual Consent. 'l'he ¡rtovisions of th js Article Vll shall

not prevcut auy Ownel from accepting any ameudlllerlt as to the paúìcLllâl Bond held by sttclt Owlet.plovitled thât due lìotatiou thereof is made on such Bond and, plovided fulther that writlen consel'ìl to

such amenclnrent shall first l¡e obtained from auy Insutet.

Section 7.05 Opinion of Cor¡usel. Plior to execuling any SuppJementâl lndenlure, the'lì¡stee shall be funlislled an opil'rion ofcounsel. ullon which it uay couclusively rely to the ellectthat all condilious ltrececletrt to the execution of such Sup¡rlemenlal lÍrdclture uncjer this Indeltturehave beer satisfied ald such Supplemental lndenture is autholized and pern.titted undel this ltldentureand does not adversely affect the exclusion of il'ìtcrest on the Ilonds fi on.r gloss jucone Iòt fedetal

ìnconre tax prìrposes ol adversely affect the exetrption of inter est on tlre Bottds îl otn pct soua l ìncottte

taxation by the Stale.

Seclion 7.06 Copy of Supplernentâl Intlcnttt¡'e to S&P and Mootly's, I-he St¡ccessol'

Agency shali provide to S&P and Moody's. lot so Jottg as S&P and Moocly's. âs the oase nìa)'be.luìaintâin a lating on aly ol'111e Bonds (wilhout legald to any uunicipal bouc{ or lirancial guatattt¡,

insulance). a copy of any SupplemerlaI Indentule at least fifieen (J5) days ¡rriol to its ptoposecl

cfiect ive dal.e.

l)O('SO(l/l 704256v4/200590-000 I

42

ARTICLE VIII

EVNNTS OF I)trFAULT AND IìT]MIIDIES OF OWNEIìS

Scction 8.01 Events of Defaulf and Accelelation of M¿ìturilics. The following cventsshall const¡tule Ilvents ol'Delàult heleundel:

(a) il'defaLllt shall be nlade by the Successol Agency in 1he due and punctualpaynrent oithe plincipal ofol inlelest ol redemption premium (ifany) on an¡, Boncl when and as thesame shall become due and payable. whethel al n.ìaturity âs thelein exptessed. by declataliou ot'

othelwise;

(ir) if default shall l¡e made by the Successnr Agency in the obselval'ìce ofany oithe covenânls, âgreeurents ol conditions or'ì its pârt in this Indeltule ol ìn the lli¡rtls contailled, oll'ìer

thân â delàìih described in the ¡rrecedirg clause (a), ancl such default shall have continued lbt a

peliocl ol'thiùy (30) days following receipl by thc Successol Agency of writtcn notice liom the'lìustee or any Insulel ol wlilten notioe fì-orr any Orvner (with a co¡ry ofsaid notice deliveled to the'l'r'ustee and aly Insrrler') of the occullence ol'such dcfat¡lt, plovidcd that il'in thc leasonable opiuiortoi the Successol Agency the làilule stated ir the nolicc can bc corrcctcd. L¡rrt not within such thirly(30) day period. sL¡oh failule will Íìot constjtute an evenl ofdefault ifcorrcctivc action is institlìte.i bythe Successol Agency (wilh the pliol written corìsent of any Insurct) withjn such thitty (30) day

period aud the Successol Ägency theleaftel diligenlly and in goocl laith cures such failule iu rL

leasonable peliod of'time as approved by ary lnsuler'; ot'

(c) I1 the Successot Agency files a petition seeliing teolgauizâtiou orarrangelrent undel the fedelal bankruptcy laws ol an¡r other applicablc law of the Uulted Stâtes ofÂmerica. ol ifa court of co¡rpetent.jurisdiction wiÌl approve â petilior by the Successol Âgencyseeking reolganizatiou undel the fedelal banklr:ptc¡r lau,s or any other applicable lâw ofthe UnitedStates o1'Arrelica, or'. iÎ undcr the provisiorìs ofany other law fol the relief ol aid of debtols, any

coull of competelìt .julisdiction wiìl ap¡r'ove â pet¡tion by the Successot Agetrc¡,. 5ssl(i1]g

leolganization undel the lcdelal bankruptcy laws ol aüy othel applicable law ofthe United Stâles olAnelica, or, if undel the plovisions ofany other law lòl the lelief ol aid of debtols, any cour[ ofcompetent julisdiclion u,ill assunre cuslody or control ofthe Sucoessol Agercy or ol'the whole ol'any substanlial pârt of its prollerty.

In detcrrnining whethel an Event of Delault has occulled uncler' (a) above, no effect shall be

given to paymelìts made under any municipal bond insr¡lauce policy, Iìnancial guaranly insurancepolìcy ol Qualified Iìeselve Accounl Cledit hlstrurnellt.

ll'an llvent o1 Delault has occurred under this Section and is continuìng. the Trùstee, nlay,and, if lequested in wt iting by the Owners of a rrajolity in aggregate principal amorrnt of the lJonds

then Outsta|dillg the 'l-rustee shall, (a) declale the principal of the Bonds, together with thc accluedintelesl tllereon, to lre due and payable immediately. and Lr¡ron an¡, such dcclaration thc sane shallbccome immediately tlue and payatrle. anything in this Indentule ct in the Bonds fo thc contl'arynotwithstanding. and (b) sub.ject to the provisions ol' Section 8.06. exclcisc an¡, other rentedies

available to the'l'r'uslee and the Bondowners jr law ol at eqLrily.

Irrmediately upon lccciving notioe or aclual Jrnowlcclgc of tire occullence o1'an llvent ol'Ilefauit. the lìUstee shall give nolice ofsuch Ìlvent o1- DelàLr11 to an), Inslrrer and to thc Successor'

43DO('SO('/l 70425óv4/200.590-00(J l

Agency confir'rlec{ in wliting. Such nolicc shall also state whether the plincipal of tlìe llolds shall

have been dcciared to be or have iurnrediately becoue duc aud payable, With tespect to any Event ofDefault desclibed in subsections (a) or'(c) above the 'lìustee shali, ând with respect lo all)/ Everlt 01

DelaLrlt descriþcd in subsectiolì (b) above the Tnrslee in i1s sole discretior ntay, aJso gìve such notice

to the Owners by mail, which shall ìnclude the statemcnl thât intcìcsf on the lJonds shâll cease to

accnte ftout ancl aftcl the da1e. if any, on which lhe 'lì ustee shall have declaled the Bottds to becoued¡c and payable pursrìant to the ¡tlcceding palaglaph (Lrut only 10 thc cxterl that ¡rlincipal and any

acclued. bnt ulpaid, illlerest on tlìe Bonds is acttrally paid on such date).

This plovision. however. is subject to the corldition thât iî, â1 any time after'the plincipal ofthe Bo¡ds shall have been so declaled due and payablc. and befble any.judgment or deoree fol the

payrrent ofthc n'ìoueys due shall have been obtained or entercd. the Successot Agcncy shâll, wilh the

writteu cotìseltt of a ma.jor.ily in aggregate plinoipal a:rounl of the Owners of the llonds then

Outsta¡diug, deposit wìth the Trustee ¿ì sul'rì sufficjelt to pay all plincipal or the Bonds matuled ptior'

to such declar,alion and all lratured jrstâlhÌenls of iutelest (if an1,) upon all the Bonds. \rith interesl

ou sùolì overdue installllents of principal ând jnterest (1o the cxtellt pelmitted by law). and the

leasonable lèes and exltenses ol thc Tlr¡stee. (including the allocaled costs ¡nd clisbt¡l senten ls of itsi¡-house counsel 10 the extent such selvices are uot redundâ111 with those provided ìly outside

counsel) an<ì any and all other del¿ults l,nown to the 'lìrrstee (othel than ili thc pâyment of principal

ofand interest on the Bonds due and payable solely Lry reason ofsuch cleclalation) shall have been

¡tade good or cuted to the salisfaction of the Tnìstee or' ¡:rlovision dcemed by the Tlustee to be

adequate shallhave been lnade tl'ìereior, then, and ìn cvely suclt case, thc'lrustee shall plonrptly givc

writtcÍì lìotice of the folegoing to any lnsulel and the Owrels of all Bonds then Outstalldilìg. at.td

with the prior. wr,ilteu approval of the Owuers of at leâst a nrajolily in aggregate pt iucipal amount oflhe Boltds then Oùlstanding^ try wlittcn notice 1o the Suocessol Agency aud to the'l-lustee. u.ìay. on

behalfofthe Ownels ofall oJ'the Bonds tlren Outslanding. r'escind and aurul such declatation and its

coÍìsequellces, I.ìowcver, no suclì resc¡ssion and arurulnent shall extend to ot sl'ìâll affect auy

subsequeut default ol shall impait or exhausl auy right or powet consequent tlìereorl.

Section 8.02 Application of f.unds Upon Accelcration. All amounts receìved by the'ìì.ustee pursuant to any riglit gìven or actìon taken by thc 'l-lustee uttdel lhe plovisiorrs of thisIncleltlule (including the Tl ustce's shale of any Pledged Tax Revenues) aud all stlnts it the funds and

accounls cstablished and held by the T rstee heleundel upon the dale oi the cleclalation ofaccelelatio¡ as provided iu Section 8.01, and all sums thcleaftel teceived by the -lrustee heteunder,

shall be applied by the Trustee in the fol)owing ordel upon presentation of thc Bollds. and the

stamping thcreou of the paylnent il'only partially paid. or upol the sut t ender thel cof if ftrlly paid:

!!¡¡!. to the payment ofthe fees, costs ald expenscs ofthe lìustee in declaling such llvent ofDefàult and in exeloising the rights and lemedies set lolth in this Alticle VIII, including reasonable

corrpeusation to jts agents, âtto teys (incJuding the allocated costs and disbr¡rsemcnts of its in-house

ool¡ìsel to tlìe exteut suclt services are not rcdunclanl with those provided by otltside counsel) and

oounsel ând any outstânding fees autl expenses of the -ft Llsleel and

Sc_SgrIl, to the paytncnt of the rvhole ¿ìnìoun1 llrcn owing and unpaid upol the llortds lolplincipal and intelest, as applioable, with interest on the overclue plincipal. and instâllttlents ofil'ìtelesl at thc let eifectivc rate tl'ìeu bornc lry the Oústandìng l]onds (to tlle extcnt tÌìat sttch illlelesto¡ ovetdue i¡stallments ofprinci¡:al ar'ìd irÌterest shall have been collectetl). and in case suclì lllone)/s

shall bc insuffioient 10 pay in hrll the whole arror¡rìl so orving ard unpaid upou thc llonds. theu to the

l)O( SOC/1 70.1256v4/200590-000 l44

paylnent of such pl iucipal altd interest without plelèrcncc or prjorify, râtâb]y to the aggregate of sLìch

lll ir'ìciÞal and intelest.

Section 8.03 Powel of Tl,ustee to Contlol Plocecdings. ln the event that the 'frustee.

r.rpon the happening of au Everlt of DelaLrlt. shall have lakel'ì any action, by.iLrdicial procccdings or'

othel\\,ise. pLìlsuaut to ils duties hcleunder', whethel Lrpon ils own discletiolt ol ì"rpoll llte leqtìest ol'tlìe Ownels ola majolity in p|incipal anrount oithc llorcls then Outslancling, it shâll have luli power'.

i¡ the exelcise of its discretion lol the best interests ol'the Ownels of the llonds. with lespect lo tlìecontinuatrce. discontinuance. wilhdlawal, conrplomise. settlernerlt ot' othel disposal of suclì âclionl

ltlovided. however', that the -lrLtstee shall not. unless thcre no longet continucs an livent ol'l)eÎâùlt.discontinue, rvithdlaw. comprotrise ol settle, or othelwisc dispose of any litigation pelding at law or'

in equity, if at the tinte thele has l¡een Iìlcd u,ith it a wrilteu request signed by the Owuels of a

majolily in ltriloipal aurount of the Outslandilg Ilonds helcunder opposing such discontinuance.

withdlawal. com¡lorlise. selllemclt ol other disposal of'such litigation.

Section 8.04 Limifation otl Owucr's ììif¡hl lo Suc. No Ownel of any Bond isstred

heleuncle| shall have the tight to institrÌle any sr¡it. actiou ol procecdirg ât lâw or in cquity. lor any

lemedy under or upou llìis lndentule, r.rnless (a) such Orvncr shall h¿rve pleviottsly givett to tÌreSuccessol Agcncy, the Tluslec and any Insulel wlitten l'ìolice of the occuttettce of au Evcnt ofDefaull; (b) the Orvners of a nra.jority il'ì aggregâle ¡rlitrcipal amortnl of' all the Bonds tlren

Outstauding shaìl have ntade wlitten request upor the frustee to exeloise the powers hereinbelolegranted ol to iustitute such actiou, suit or ploceeding in ils own name; (c) said Owuers shall have

tendeled to thc -lrustee indemnity leasonably acceplable to lhe Trustee against the costs. expettses

and Iiabilities to be i¡culled in compliance with sLrch tequesl; and (d) the'l'rustee shall have lefused

ol ontitted to cornpÌy wilh such lequesl lol a 1;eliod o1'sixly (60) days aftel such wlitten request sÌrâll

have been leceived by, ancl saicl telldet of indentttity shall have Lrcctt tnade to, tl'ìe Tl'tìstee.

Such uotification. reqrìest. tender of indemnity and refusal oI olìrission are hcteby declared,

in every case, to lre conditions precedent to the exercise by any Owner of auy retnedy hereutrdet; itbeing undelstood and intended that uo one or more Owners shall have any right in atty tlantterwhatever by liìs ol their actioÍì to enlorce any light Lrndel this Indeuture. except in the manner hereirt

provide<1, and that all proceedings at lâw or in equity to erlolce any provision ofthis Indentule shall

be institrrted, had and maintailled in the urarnel helein plovidecl and fol the equal beuefit of allOwnel s ofthe Oulstanding Bonds.

'l-he right of any Owner oi any l3oncl to rcceive payrrent ollhe plilcipal of (and plemium, iÎany) and intetesl ou such lloncl as herein plovided. sh¿rll no1 be impailed ol affected withorìt lhe

wrjtte¡ co¡seut ofsucÌt Owner'. notwithstancl ing 1he foregoing plovisions of tÌris Section or alìy other

plovision of this Indentul e.

Section 8.05 Non-Waive r. Nothing in this Ar1¡cle VIll or in any othel ptovision ol1hisludentute or in the Boncls. shall affect ol irrpair the obligâtion of thc Successot Agency. which is

absol¡te and unconditional, to pay fionr lhe Pledged 'l'ax Revenues ancj othel amoLtnts pledgcd

Ìreleulcler', the principal ol' and intelest ancl recletlptiol ptemiutll (iÎ any) on the Bonds to the

r.es¡tective Owners olt tlle respeclive luterest Payulenl Dâtes. as herein ploviclecl, ol afTèct or inr¡rit'the right 01'âction. which is also absolute and unconcljtioraì. of the Olvncts or the'l-lLISlee to iltslittttesuit to enlolce such payment by virlue oflhe col]tract enrbodied in thc Bollds.

l)O(-SOC/l 7(tl2-s(^,4/200590-000 l45

A waivel ofany delàLrlt by any Ownel or the lìuslee shall not affect any sLrbsequent deliullor inpail any r'ìghts ol lemedies on the subsequent delaull. No delay ol ornission of any Owlel to

exercise any light ol powe; accluing upon any dcfiLrìt shall iur¡rail any sLrch r'ìghl ol powel ol shallbe constlucd to be a rvaivel of an¡, such dcfaull ol an acqLriesceuce therein. aud evcry powet and

lenredy confelled upon thc C)wnels ancl tl'ìe Trtìstcc lry the l.,arv or by this Article VIII nra¡r be

enlolced and cxercisecl flour time 10 linre alld as oftel as shall be deemed expedient by the Owlìelsand the Trurstee.

If'a suit. action ol ploccedilg to enfolce any light or excrcise aly tetnedy sÌrall be abandoned

or cietelurined advelsely to the Ownels or the Tlustee. thc Successol Agency, the 'l'rustee aud tlreOwuers sÌrall be restoled to their lolmer' ¡rositions. r'ighls and lemedies as if such suit. action or'

ploceedilg had not been trlought or takcn.

Section 8.06 Actions by Tlustce i¡s Ättolney-in-Frìct. Any suit. aclior ol ¡rtoceedingrvhich any Ownel shall hâve lhe right to bring to enfolce any light ol lernedy hereundel may be

blought by the'lìus1ee 1ìr'the eqLral benelìt aucl prolectiou of all Owuels similarly situatcd and theTlustce is hereby appointecl (arcl thc succcssive respective Ownets by taking and holding the Boudsor Parily Debt shall lre conclusively dccmed so to have appoinled i1) the tlue and lawflrl allorney-ilr-lacl oi the respcctive Owuers lbr' the purllosc of blinging any such suit. action ot ptoceediug and todo and per'fornr any and all âcts ând lhings fol and on behall'of the tespeclive Ownels as a class or'

classes. as may be neoessaly ol aclvisaLrlc ìn the opinion of'the Tlustee as such atlot ney-in-fa ct,plovided. however', tlre'l'l'ustee shall have no duty ol obligation to exelcise any such light ot tenredyuuless it has been indemnifiecl 10 its salisfaction lìrrm auy loss, liabilily or expense (including fccsand expenses of its outside counsel and lhe allocateii cosls and disbulsements of its in-house counsclto lhe exteut such services are not |edundant with those provided by oÙtside counsel).

Section 8.07 Rernedics Not flxclusivc. No lemedy hcrein confelled upon ol reserved tothe Ownels is juteuded to be exclusive ofany other lentedy. Every such temedy shall be cur.nulative

and shall be in addition to every otl'ìel lerredy given heteunder o| now or heteaftel existing, at law orin eqLrity ol by statute ol otherwjse. aud may be exercised without exlìaustilÌg and without legatd to

any other retledy confened by the Law ot auy other Iaw.

Sectiorr 8.08 f)e te rminatiou of Pcl'ccntâgc of Iìondownels. Whenevel il this lndentr:r'e

the col'ìseut. dilection or othcl actjon is requiled ol pcnr.ritted to Lre g¡ven ot taken by a petcentage oftlìe Ownels ol an aggrcgate prìncipal amount of Outstandiug l3ouds (including by the Owners of a

majolity in aggregâte plincipal amount oi thc OutstaDdirg Ilonds). such percentage shall be

calculated on the basis of the plincipal anrounl of the Outstanding Ilonds cleleurined as of the nextsucceed ing Interest Payml3nt l)ate.

,{IITICLE IX

MTSCELLANEOUS

Scctinn 9.01 llcnelìts Lirnitc(l to Palties. Nothing ìn this Indcntutc, exptessed ot'

inplicd. is iutended to give 10 any pcrson othel than the Successof Agency. auy Insurer'. the Truslecand the Orvnels, auy light, r'emecly or clain undet ot'by reason of this lnclcnture. Alìy covelìants,stiltuJations, plonrises ol âgreerrel'ìls in this Ildentule contained by aud on Lrehalloithc Succcssor'

Agency shall be lbl the sole ancl exclusivc Lrenelìt olthe -lìuslee. any Iusulcl and the Owncls. To the

extcut thât this Iudenture confers upon or gives an¡, lnsurel any light. Ienredy ot claìur uudcl ol by

46DO('SOC/ l 704 25(,v4l200590-0001

leasor ol this Indcntule, such Insulet is hercby expllcilly tecoguized as being thild-paltylrenefioiar.ies heleuudel atrd ltay enforce any such light lemedy or clainr conlèr'ed. given ot gtanted

helcunder.

Sectit¡n 9.02 Succcssor is f)ccnetl Includctl in ,4ll Refcrcnccs to Predecessor'

Whcnevet iu this lndentr:r'e ol any Sup¡rlernerìlal lndenttìle eilhel the Successor Agency ol the

T¡ustec is nalned or lelèr'red to. such lefelcnce shall be dcenlcd to irclL¡de the succcssols ot assigtts

theleof, and all tÌle coveuarts ald agleemcnts ir this lndentule corttailted by ot'ou behalf of the

Successol Agcncy or the Trustec shall bind and inure to lhe benefit ofthe tespective succcssols aud

assigns theleofrvhcthel so explesscd or tto1.

Secfion 9.03 Discharge of Iudentr¡re.

(a) llthe Successol Agency shall pay and dischalge the entite indebtcdness on ¿rll

llonds ol any portior theteofin any olle or luote ofthe lbllowing ways:

(i) by rvell and trtrly Pâying or causirtg to be pâid the plincipal of and

i¡terest ¿ìnd ¡tlentiunt (il'any) on all or the applicable portlorl of Ot¡fstandilg Bouds, as ând whelt the

sane becorre duc ancl payable;

(ii) by illevocably depositing with the Tltlstee or all escrow agent. irì

tt ust, at or belole rratulity. money u4rich, together with lhe availabÌe anìour'ì1s tl'ìell on deposit in the

filnds and accounls established pulsuarìl to this Indel'ìture. is fully stlfficienl to pay all or the

applicable poltion ol'Outstaudìng ISonds. inclucling all principal, iuterest attd tedetnption pteuriuuts.

oli

(iji) by ilrevocably depositing with the Trustee ol all escrow agen1, irt

tl'ust, Def'easance Obligations il srìch amounl as an ìtrdepetrderll ^ccôrnlfân1

sh¡ll detelmine will.togetlìer with the intelest to acclue theleon ancl available moneys tlteu on deposit in the fuuds and

accoultts establishcd pulsuant to this ludenturc. ì:e lìrlly suÎlìcient to pay and dischalge tlreindebted¡ess ou all Bonds or the applicable poltion thereof (including alÌ plincipal. iutelest and

ruderrpt iorr l)rcnìiunrs ) ¿rl or lrclolc n¡iìlurily:

a¡cl, ilsLrch Boncls ate to be ledeemed pliol lo thc rnalutity tìreteof. uotice of sLrch tedetttptiou shall

have been given pulsuant 10 Seclion 2.03(c) ol provision sâtislactory to tÌre Truslee shall have beetmade fol the giving of such notice, thell, at the election of the Successol Âgency, ancl

rotwilhslânding that any lSonds shall not have been sullendered lor payment. the pledge of the

Pleclgecl'fax Revcnues ând otller'hrnds plovided for in this Illdenlure and all othel obligalions ofthe'l'l.ustee and the Successcl Agenc¡, undel this IncleutLrre shall cease arld terlrìiuate rvith lespect to allOutstanding Bonds or'^ if applicablc. with lespect to thât poltioll of thc Bonds which has been paid

and dischalged, exceltt o ly (A) lhe covcnants ofthe Suocessol Agency hereu der with respecl to the

Clode. (13) the obligation ofthe -llrìstee to translèr ancl excÌratrge Bonds hereuuder, (C) the obligationsof tlte Successor' Ägency Ltndel Seclion 6.06 helcof. anc{ (D) the obligalion of tl.ìe Successol .Agellcy

to pay or oause to bc paìd to the Ownels (ol any lnsuler), fjolr the ârnounts so depos¡ted wilh the

Ttustec, all sunrs due theleon and 10 pay the'lìustce and auy InsLrtet all fees, expenses and costs ofthe 'lìustee alld an¡, Insurer'. In lhe evellt the Successol Agency shall, ptìÌsuant to the lolegoirrgprovision. pay and dischalge any poltion or âll of lhe Ilontis then Oulstandìlg, the 'lrLrstee shall be

authol izeci to 1al<e such actions aud cxccute antl dcliver'1o the Successor Agency all sLrch iltslltìnlel'ìlsas uray bc necessâty ol clesi;able to cviclence such dischalge, inclLrding, without linlitation. selection

47UOCSO( /l 7lì42s6v4/2(10-\90-000 I

by lot of EÌonds 01âny I'ìaturity ofthe lloncls thal tl'ìc Successor Agency has detetmined lo pay and

dischalge in part.

In thc case of'a clefcasance or pâyrìent of all of the llonds Outstancling. any fundsthe|ealler lrcld by thc ììUs1cc which âr'c not required fol said purpose or fol paymenl o1'anrounts ciuc

the'Iìrìslee pursì.ìaut to Sccljon 6.06 shaìl bc paicl over to the Succcssot Agettcy.

(tr) Notwithslanding anytlriug helein to the coutrary, jrÌ the event that thcpÌincipal and/o| intcrcst due o1'the Bonds is paid by any Llsurer pul'suaut to its murticipal lrond or

fìnancial gualanly insurance poJicy. such Bonds shall lelÌìain Outstalìdilg lor all pnlposes, lot be

defeased ol othelwise salisficd aud no1 be considered paid by the Successol Ageucy, and the

assigntlelt and pledge of the PJedged l'ax lìeveuues aud othel assets hereundet and all coverauts.âgrcetneuts ancl othel obligations ofthe Successor Agency to the llondownels so paid shall cotrtiuueto exist and shall run to the bel'ìefit ofsuoir lnsr-llel. and such lnsuler shall be sublogaled to the lightsof such Bondownels. as applicable.

Scction 9.04 Execution of l)ocr¡urenls and l)I'oof of Ownelshi¡r by O*'ncrs. Anyrequest, col]sel]t. dccialatioI] or o1lìer ins(nrnrent which this Indentule rnay lequile ot petntit 1o be

exccntcd by aly Ownel nray be in oue or uroÌe instlurì.ìents of silnilal tenot. aud shall be executcd lrysuch Owner in person ol by such Owner's âltorneys appoirtted iu wliting,

Except âs olherwise helein explessly ¡tlovidcd. the fact and dâte of the executiou by any

Owner ot his attonley ofsuch lcqucst, declâlâ1iolì or other instlumelt. ot of sr¡ch wliling appointingsuch attoÍllcy, lnay be ploved by the ccrtificate ofany notary public ol othet officel authotized tolal<e aclinowledgnrenls ofdeeds 1o be reoolded ilì tl'ìc state ìu which he purports to act, thal tl'ìe pclso¡ì

signìng such request. declaration ol othel instlurìrcr'ìt ol wlitiug acknowledged to hin the exccr¡tiontlrctcof, ol by an affidavit of a wilness of such execution" duly swolu to befole such notary public or'

other officer.

'l-he ownelship of Bonds and the ar.r.rount. nralulity, nunrber and date of ownelship thereofshall be ploved by the Registraliorr Iloolts.

Any denaltd. r'equest, clirecfìon. consenl, declaratiou ol othel instrun.ìellt or wlitillg of the

Ownel ol-any Bond shall bintl all lL¡lLre Owners ol'such Bond iu tcspect ofanything done or-st¡lfetedto be clonc by the Successor' Ägency ol the'Iìus1ee and in accordance therewith. plovided. howcvel.thât the Ttuslee shall not lre tieenred 1o have kDowledge that any Bo d is owned by o; foI the accountofthe Successol Agency unless the Suocessol Agcncy is the regisfeted Ownet ol'the Tlustec has

leceived wlitten rotice thal any olhet tegisleted Orvucr is such all aÎfiliale,

Seclion 9.05 Disqualilied llouds. lu detelmìning whether the Ownels of the requisiteâggregate ¡trincipai anount ofBonds have conculted iu auy detlaud. r'ec¡uest, dilection. consent orwaivel undcr tiris Indenlule. Ilonds which are owned ol hcld by ol f'ol the âccoulll o1'the Successol

Agency ol thc Clìty (tlll cxclnrling Boncls held in any eurployees' letilement lund) shall Lre

dislegalded and deemcd lo1 1() be Outstancìing lol the purpose of any sucÌt delernl in âtioll. [Jforlrequesl of tl'te 'Ììustee. th.3 Successor Agcucy and the City sball spccify in a Written CeÍificate to tl're'lìustee tllose Bonds disclualiiìcd pLìr'srìiìnt to this Scction and the Trlìslee tlay conclusively rely ou such

Cel tilìcâle.

l)(X-SO( /l?04256v4/200590-000I48

Se ction 9.06 Waive r t¡f Pcrsonal Liability. No me nbe r, olÏcet. agetrt ot empìoyce ol'theSuccessol Agency shall be indiviclually ol personally liablc lol the pâyment of lhe pliucipal or

it'ìtercst or any plemiunr on the Bontlst bLrt nothing herein contained shall relieve any such ttteuber.oÎficcr, âgent or enployec from the petlotmalce of'atry olficial duty plovided by law.

Section 9.07 Destt'uction of Cancelled lìorrds, Wheuevcr in this Ircleutule plovisiou ts

macle lor thc sr¡lrender to ll'ìe Trustee o1ìany Bonds which have been paid or cancellecl pLIlsuarl[ 10 the

plovisions of this IndeulLlle. the Trustee shall destloy such bonds ancl upon request ofthe Successot

Agency plovide thc Suocessol Agency a celtificate ofdestruction. The Successor Agency shall be

entitled 10 re11, ¡¡Oo,] auy stâlerrel'ìl of fact coutained in any certificate willl respect to the destluctiorr

ofany such Bonds thcrein lefètled lo.

Scction 9.08 Notices. Any Íìotice, reqùest, demand, communication ot other papcl shall be

sulficiently giveu ancl shall be deemed given when delivered or upolì receipt when mailecl by lirstclâss. regislered ol celtified mail. postagc prepaid, ol sent by lacsimile. adclessed as lollows:

lfto the Sr¡cccssol Agency: Successot Agency to the Redeveloprrcllt Agenc)' ol'theCìity ol'l-alte ElsinoleI30 Soulh Main StreetLake Elsinolc. CìalifoLnia 95 965

^tlcrliorì: I \eculi\ c Dilcclor'

ll to the Tl ustcc: MUIìG Union Banl<. N.A.3 50 Califolnia Street. 1 1tlì Floor'

San Flancisco. CA 94104Attenlion: Clolporate'lrus1 SelvicesFax No.: (415) [email protected]

Wìth a copy to:

ll'1() the 2015 Insurer:

AccountAdministlation-Colporate'lì ust@ìun ionbank.corn

lto comel

'l-lte SLtccessol' Agency and tlìe TlrÌstee may dcsìgnate any lilthel ol differellt addresses to

which subsequer'ìt uoticcs. celtificales or othet communications shall be sent.

Scction 9.09 P¡r'tial Invalidity, Ifany Section, paraglaph. seutcnce. clause ol phlase ol'tltis Iudelllure shall lòr'any leason be held illegal, invalid ol unenlolceable. such holding shall not

affect the valìdi1y of the lerraining portions oi this llldeuture. The Succcssot Agency heletrydeclâles tl'ìa1 i1 woLtld have adoplcd thjs Indenlule and each ald evely olher Section. pârâgrâph.

senterìce. clause or phrasc heleofand autholized thc issue ofthe llonds putsuant thctcto irtespeclivr,'

ol'the läct thal âuy oue or llole Sections. palaglaphs, senteuoes, clauses. o| phrascs of tÌris Indcntt¡te

may be held illegal. invalid ol r¡nenlolceable. ll by leasol ol'the.judgnrenl ofauy coutt, the'l'rusteeis rercleled unatrle to pelfornr its dutics heleundel. all suoh duties and all of the Iights and powers o1'

thc 'lìrìstee heleunder shall, pending appoinlrìreut of a sr¡ccessot TrLtstee in accotdancc with the

¡rl6visions o1'Scclion (r.01 heleof. bc assulled by and vest in the lìeasLllel of thc Succcssol Agercyiu lrLrst lor the Lrcnclll ol'the Orvuels. I-lre Successor Agency covenanls fol the dilect bcnelìt ol'1he

49l)OCS(X'/l 7{1,125óv4/200-590-000 I

Ownels that its'lìeasulel in such case shall be vested with âll of'1he rights and powers ofthe lìLlsteeheleunder', ancl shall assume all of the lesponsibilities and perlolm all oithc dutics ofthe lìL¡stee

heleuncler', iu tntst lor the benefit of the Boncls. pendìng apPoìntnìent ol' â stìccessol Trustee in

accordaucc witlr the plovisions ofSection 6.01 hercof.

Section 9.10 Unclairnetl Moucys, Anything contailted heleill to thc contrary

notwithslâr]d ing. an)¡ n]oney held by the Tlustee il'ì lltìs1 fol tl.ìe payr.nent and dischar-ge ollhe inlclestor pleurium (ifany) on ol principal ofthe Bouds which lenraius unclaimed for two (2) yeats aftet the

dale when tlte pâyn'ìellts of such interest. plenriurn and plincipal have become payable, if such money

was hcld lry tÌle 'lì-ustee a1 such date. oI fol two (2) yeaLs altel the date of deposit of sucìr uroney ifdepositccl with the 'lìus1ee aflel the date when the juterest ar'ìd prerniutl (il aly) on ancl plincipal ofsuch Bonds h¿rve beoorre payable, shall be lepaid IJy tÌle 'lnrstee to llle Sùccessor Agency as itsabsolLrle ¡lopcrty flee fìom tlùst. aud the'ltuslee shall thereupon lre teleased and dischalged witlrrespect theteto and the llondownels shall lool< only to the Successor Agency l'ol the paymcut oftheplincipal ofand iulelcsl and redemption ptetliunt (ifany) on oisuch Bollds.

Section 9.11 Dxccution in Counterpârts. 'fhis ì clerture nra¡, be cxccutccl in sevelal

counlerllarls. cach ol'which shall be an original and all of which shâll collstitute but onc anci the same

inslr'rlnenl

Section 9.12 Governing Larv. fhis Indeltule slrall be construed and governccl inaccordance witlì the laws of the State.

l)(X SO( /l 70/1256v4/200590-000l50

lN Wl'lNllSS WI IEREOF. the SUCCESSOR AGENCTY TO 'IFlLl IìEDL.Vlìl,OPMllN'l'ACENCIY OI ]-Hlj Cll-Y OF L^l{E ELSINORE has caused this Indentule to lre signed in its name

by ils Adnrinistratol. and MUÞ'G UNION BANI(, N.4.. in tolielt of its acceptance of thc trusts

cleatcd hcreunder, has caLrsed this lndenture to be signed in i1s cotporate naure lry its of]iccl'lhereunlo dr-rly aLrtholized. all as oflhe day and yeat first al¡ove rvlitlen.

SUCCìTSSOII AGENCY 'IO TIIIIRDDEVELOI'MENT AGENCY OF 'TI{ìì CITYO!- LAKE DLSINORN

Ilxecú ive l)¡l ectoì'

MUFG UNION llANK, N.,4., as Tnrstcc

Arf holizecl Olficer'

s-lIl(X'SO( /l 7{)4256v4/200590-000 l

EXì'IIIIIT A

(FOIìM Orì 201s BOND)

UNITID STATES OF AMI'IIIC,{STATE OIì CALIFOIÌNIA

SUCCI,SSOIì AGDNCY TO TIIE REDDVDLOI'MENT AGIINCYOF TI'ID CITY OF LAKìì DLSINORB

SUBORDINATBD T'AX ALLOCATION RDFUNDING IIONDS, SI'IìIES 20I5

IN'I-EREST RATE: MATURITY DAlll; D.ATED DA'l'lj:

September I, __

,4- r

C]USIP

R.IICìI SllllìllD OWNER: CBI)B & CìO.

PlìlNClP.AL SUM: DOLLARS

The SUCCIìSSOIì. ,A,GENCY TO'lllE REDIIVI]I,OPMllNT ,A.GENCY OF TlltÌ CII"Y OF

t-Al(ll ELSINORE. a public entity duly exisling under ancl by virtue ol'the laws of the State ofCalil'o|nia (1he "Successol Agency"), lor value leceived hcteby ¡rtonrises to pây lo the Rcgistefed

Owuel stated above. or regislered assigns (the "lìegistelcd Owrrer"), on the Maturily Date stated

above (subject to auy rigllt of plior lcdemption heleinafter'¡rlovided 1òr'). the Plincipal Sum stated

above, in lawful money ol'the Uuited States of America. and to pay illteresl thereol'ì in lilic lawfulmoney flom tl'ìe lltterest Payrrent l)âte (âs heleinafter definetl) next plecediug thc date ofaulheuticalion of this tsond. unless (i) this llond is autl'ìenticâted on ot belorc an lìtetest PaymelltDate and after the olose o1 business on the fifleenth (l5th) day of the llìolllll immediately plecedingan Intelest Paylnett Dale (the "Recold Date"). iu which evelt it shall beal il'ìtelcst fioln suclr lntelestPâylreÍìt Date. or (ii) this Bond is autÌrenticated on or before fFeblualy 15. 20161, in which event itshall bca¡ jnte¡est lì'our the Dated Date above; ¡rlovìded howevet. thâl if a1 llìe tiure of authenticalionof this Bond, ìrÌtelesl is in default on this Bond. this llond shall beal intercst fi'on tlìe lltlerestPayuleut Date to which inlerest has pleviously been paid ot urade available fol payment ol this

Bond, until payuìelì1 of such Plincipal Sum in full, at the lnteÌesl Rale pel aunum stated âbove.

pa¡,able semiarnually on March I ald September I in each yeat, cotlmeucing [MaLch 1. 20161 (each

al'ì "lntetest Payureul Date"). calcuÌated on the basis of 360-da¡, ¡,eal coupliscd of twelve 30-daynronths. Prìncipal heleof atrd ptcmiuur, if an¡r. upon ear'ìy Iedetrplion hereof are payalrle Llpon

sullender of this lloncl at the corporate lrust office of MUì'G Uniort Barlk, N.A. in Los Angeles.

Califolnia. as trustee (the "Tmstee"). or at such olhcl place designatecl by the Trtìstee (the "PlinoipalCorporâte T|ust Ofiìce"). lutelest hereon (inclLrding the liral interesl pâynìent ùllol] traturity ot'

ealliet ledentption) is payable by chccli ofthe Tlustce nailed by 1ìtst class nrail, postage plepaid, on

the Il'ìtelesl Payn'ìent Date to the Registered Owuer heleof at the lìegislered Ownel's addrcss as itâppeâts ol'ì thc registlation books maintained by lhe Trustec as ol'the llecold Date fol such IntelestPaylÌìenl Date; plovitìecl however', that paynlent of intclest niay lre Lry wite ttanslet lo a]r accourt inthe l.Jniled Stales of Ame|ica to any legister-ed owncl ofllonds in the âgglegale princi¡ral amount of$I,000,000 or more upon written instructions ofauy suoÌr registelecl ownel filecl wifh lhc lìustee l¡tthat prìrllose priol to the Recorcl Date preceding the applicable Inlelest Pa)/nlel'ìt Date.

l)O( SOC/l ?0425(^,4/200-590-000 I

'l his Ilond is one of a duly autholized issue of bonds of the Successol Agency designated as

"Sucoessol Agency lo the Redeveloprnenl Agenc\/ of the Cìity of L,ake Elsinole Suboldinaled TaxAllocation Refuuding Bonds, Selies 2015" (the "llonds"). of au aggregate pr'ìrrcipal amount of

desigllale valying selies. uumLrels, matLuities. interest Ìâ1es. ol tetlenr¡rtion and othcr plovisions) and

all issued prìrsrìaut to tlre plovisions of Altjcle I 1 (comuencing with Section 53580) of Cllìapter' 3 ofPalt I of Divisrou 2 of 'l"itle 5 of the Govenmeul Code of the Slale (1he "Refundilg l,âw"). the

Dissolution Act (as such telm is defined in the lndenture). and the CouluuniLy Redevelopmel'ìt Law.coustituling Palt I oiDivision 24 o1'the California Health antl Safety Code (the "Law"), aud putsuatrt

to au ludeuture of Itust, dated as ofJune 1,2015, en(eled into by and betu'een the Successol Agencyald the 'l'rustee (the "lndenture"), ploviding lot thc issuauce of the tìonds, The Bonds ate bcingissued in the form of registered Bonds rvithoul coupons. Acldìtional Lronds, ot othel obligations uia¡,

be issued on a parìty with tÌle Bonds, but only sub.ject 10 the te rs of the ludentr¡r'e. I{efelenoe is

hereby rlade to the llìdelttule (copies of which ale on file at the officc ofthe Successot Agency) and

all indenlules suppler.ne tal thereto and to tl'ìe Law for a descliption of the lelurs on which the Bo|dsale issued, the plovisious with legald to the rìature allcl extent 01'the l'>ledged Tax Revenues (as tÌratlerm is defined in the lndentule). ancl the lights theleundet ol'the legistelcd orvuers olthe Bonds aud

the riglìts, dulies and immunitìes of the Truslee and the rights and obligations of lhe Successor'

Agency theleundcr, to all ofthe plovisions of which Indenlure the Regislered Ownel olthis Boud. byâcoeptauce heleolì assents and agrees. Ca¡ritalized terl.ìs not otherrvise clefined helein shall ltave thcmeanings giveu tl'ìeln iu the Indentule.

The Bonds have been issued by tlte Successor Agency l-ol the pulllosc ofplovidìng funds tolelìnance certain bonds with lespecl to thc Pro.jeot Ateas (as sr¡ch letur is dcfined in the Llclentule)and to pay certain cxpenses ofthe Successol Agenoy il isstìitlg the Bonds.

The Bouds ale special obligations of the Successol Agency and this Ilond and 1lìe interestheteon and on all other Bonds aud the interesl ll'ìeleon (to the extert set fbtth in the Lrdenture), âre

payabie flom, aud are seculed by a pledge of. scculity intelest iu and lien ol the Pledged TaxRevenues derived by the Successor Agency Ît'our thc Pro.iect Areas.

Thele has been created, and will be maintailecl try. the Successot Agency thc Special Irund(as defined in the lndenture) into which Pledged Tax Iìevenues shall be deposited and ltom whichthe Suocessol Agency shall transfèl ânrounls to tlìe flustee f'ol payrrert. when due, of the ¡rlincipalofand the intelest and redetrption p|enriuur, ifany. on the Bonds and any additio:ral Pality Debt as

defiled in the Indeulure. As and to the extent set lolth ir the firdenlule, all sLrch Pledged TaxReverrues and the moneys iu the Special Fund (as such ternrs ale delìued in the Iudeulute) ate

exclusively and il|evocably Pledged to and constitute a tlust luncl, in accoldance with the telmshereof altd the plovisions of llre lnclenture and thc l-aw, fol the secur¡1y âlld jlayrrent or redeurptionoi including any ¡rlcmìurn upon eally ledemption. and fol the seculily and payÍnel'ìt of intcrest oll,the Bouds and any additional Pality Debl (as definccl in the ìndentulc). In addition. the Bonds shallbe addrtionally seculed al all tinlcs Lry a lilst and cxciusive pledgc ofì secLìÌ¡1y interest in and lienupon all of the nroneys in lhe Debt Selvice lìund. thc lÍìlcrest Account, the Plincipal Accotìnt, 1l'ìe

applicable subaccounl within the Reserve Accolìnl and tlrc Redemption Accourt (âs st¡ch terrns are

defined iu the lndenlule). Except fol the Pledged Tax Revenues and such nloneys. no funds ot'

pro¡rcrtìes of the Successol Agclcy shall be pledgcd to. or othetwise liable for', the paynrenl oi-

principal ofor intelest or redemptìou pleuriLrnr. ifany. on thc llonds.

$ all of like tcnor ancl date (except lor sucir vat iation. il'any. as uray be teqLtited to

DOCS(X'/l 704256v4/20059{)-000 I

A-2

'lhe Bords are subject to oplional redenrption and mandator'¡' r'eclcrrPtion fioDr nrarclatotysinking lund paymeuts ¿Ìs provided in the ludeutule.

As plovided jn the luclenlule. noticc of rcdemplion shall be given b)/ first class mail uo less

lhan thilt¡, (30) nol nrole thau sixly (60) days plior to the r-eclentption date 1ll thc resl)cctive registered

ownels ofany Bonds dcsignated fol ledemplion at theil acld¡esses appealing on the Bond |egistlationl¡oolis rnainlained by the Trustee. but r]eithel lailure to lcoeive such nolice nor any defect in the

lotice so mailed shall affect lhe sufficienoy of the plocccdings f'or redeltìption.

The Successor Agency shall hâve the light to lescind ally optionâl ledemption by wlittennotice to the 'lì ustee on ol pliol to the ilate fixed l-ol lcdemptìou. Any lotice of ledemption shall be

canceled and annullecl if lol any leason îunds will no1 be or are not available on the dale fixed forrcdemption for the paytrel'ìt in full of the Ilouds then callcd lor redemption" and such cârìcellationshall uot constitute an liÌveut olDefault undcr the lndenture. The Succcssol Ageucy aud the'Itusleeshall havc no liabiJity 1o tbe Ownels or an¡,othel parly related lo ol arisìng fi'om such rescission o1'

ledemption. The Trustee shall mail uoticc oi such lescission o1'tedemptiou il thc same nannel alclto the sanle lecipicnts as the oliginal nolice of redcurptior was sen1.

If this ilond is called fol ledcmption ard paynrent is duly ¡rlovidcd thelefol as specilìed in the

Indenture. intelest shall ceâse to âccrtìc hcteon fìtn attd aflet thc date lixed for tedetnptiotr.

lfan Ilveut of Default. as dcfined jn the Indentule. shall occur. the plincipal ofall Iìonds nray

be declaled due and payable upon the conditious. in llle nranner and u'i1h the effect plovided in the

Indenture, but such declalation and ìts consequences may lre lcscinded and annullecl as fur-thet'

plovidcd ir the ludelture.

'l-he Bonds ale issuable as lìlly legisleled Bonds without coupons in deno¡linations of$5,000 and any integral rnultiple tbereof, SLrbject to the limitations and coudilions and upon payurent

ofthe chalges, if any, as provided ill the Lldelìtule. Bonds uray be exchanged lol a lilte aggrcgateprincipal anrount of Bonds of othel authot ized denoninations and 01'the satle Inatut i[y.

This Boncl js tlansfèr'able by the Rcgisteled Ownel her.eof, in ¡rerson or by his attoÌney dulyautholizcd ìn writing, at the Plincipal Colpolate lìust Office ofthe Tlustee. but ouly in the nranner

and subjecl 10 lhe liuritatious plovided in the Indcrtr¡r'e. itnd upon sulteuclet and cancellation of tbisBond. U¡ton registlation ofsuch t¡ansfer a new lully tegistered Bond ol lJonds, ofany autholizedclenorlination ol denolninations, lol the samc aggregâte plincipal atnount and ofthc satnc traturityrvill be issued to tlìe trarìsfelee in exchange herelòr'. The Trustee ulay reluse to tlansfel or exchange(a) any Bond duling the lìfteen (15) days pliol to the date eslablished lor the seÌectìon of llonds forredemption. or' (b) any Bond selectecl lol I edemptiou.

The Successor Agency and 1l'ìe Tnlstee nìay 1reâl the Registered C)wncr hereof as the absolLrte

owner hereoffol all pur'¡roses. and the Successol Agency and the Truslee sliall not be affected by any

notice 10 the corìtrary.

The liglrts ancl obligations of the SLrccessol Agcncy aud the legìstelecl owuels ofthe llondsmay be niodilìed ol allended a1 any tin.ìc in the ¡rânner. to thc extent and upon the tenÌs plovided inthe Indenlure. but no such moclificatjon or amerrd¡lenl shall (a) cxtencl the ulaturity ol nl ledLrce the

intcÌest rate olì any llond or othelrvisc altel oI impail thc obligalion of tlre Successol Agency to pay

thc plincipal. iDterest or ledenrptioD prcnriunrs (il any) at thc lirne and plaoe aucl at the late arcl in the

ì)O('S(Xlll 70425(^,4/200590-000 I

crìr'tetlcy providcd hclcin of auy llond wilhout the expless wlitterì consel'ìt ofthe registered owuel ol'such Bond, (b) r'educe tlìe percentage ol' Bonds lequiled lol the writterì couseut to any srtch

amenclment or nroclilication or (c) w¡thoLrl its writlcn consent thereto. nroclify any of thc Iights orobligations o1-lhe TtÌste e.

Unless this ì3oncl is pleselted by an autlìorizecl representâtive of Tlte Depository 'lìust

Cornpauy. a New Yolk cor'¡roration ('D lC--'), to thc Successol' Agency ol the Tlustee lol tegistrationoftlansfer. exchalge. or pâynenl. arrd any lìond issued is registeted itr tlìe llame ofCede & Co. ol insuch other name as is requested by an autholized lellleseutativc of Dl-C (and âny payrrellt is I.nade to

Cede & Co. or to such other enlily as is requesled by an authotizcd lepresentâtive of D'lC). ANYTR^NSFER. PLEDGE. OIì OTIIE.R IJSE llEIìì:lOF IìOR V^LUE OR O]'IIERV/ISÌì IIY OR TOANY PERSON IS WRONGI-'Ul- inasmr¡clr as the Ììegisteled Ownel hercof. Cìede & Co.. has aÌinlelest helein.

This Bond is not a debt, Iiabilily or obligâ1ion o1'the City of Lahe Elsinole. the State ofCalilolnja, ol any oiits political subdivisions, and neithel said City, saitl State, nol any of its politicalsubdivisions is liable hclcon. lol in any cvcnt shall thìs Bond be payable out of any funds ol'

plopelties othel lhan thosc pledged by the Successol Agercy. The Bontls do not oonstitute arì

indebtedl'ìess within the mcaning of'any conslitutjonal ol slâ1ll1ory debl linlitaliolì 01'testrictiolì.

It is heleby cer(ific.l thât all o1 the things. oouditions and acts lequiled to cxist, to have

happened ol lo havc been pellòr'med ¡rlccedent to ând in the issuance of this Bond do exist. have

happenecl ol have been pcrlolned in due and leguìal time artl rranrtel as lequiled by tbc Law and thelaws ofthe State ofCalilolnia. ând that thc aulounl ol'this Bond, together rvith all other iudebteclness

ofthe Successor Agelcy. does not exceed any limit pr-esclibed by the Law or any iâws ofthe State 01'

Calil'ornia. and is not in cxcess ol1he anrouut ofBonds pelrÌì!tted to l¡e issr¡ed undel the lndentule.

This Bond shall not be entitled to aly benefit under the Indentule or becoue valid or'

obligatoly lor any lturpose until the Tlustee's Celtificate of Autheuticatioll heleon shall have beett

nranually signed lry tlìe 'lì uslee.

A-4ì )OCS( )C/ 170425 6\,4/200-s 90-000 I

lN V/l'fNl:ìSS WIIHìBOF. the Sucoessor'^gency to the Rcdevelopnrent Agency ol'lhe Cilyof Lalie Iilsinole has caused this Bond 1o be executed iu its narne and on its behalf with the facsimilesignalule of jls Exccrìtive DirectoL and altested Lry the lÌrcsimile signalule of its Scctetaly. alJ as ofthe Dated Date set lòrth above,

SUCCBSSOIì AG]ìNCY TO THDIìtrDEVELOPMI,INT

^GENCY OF THD CITY

OF LAKE I,LSINOIìE

Ilxecutive DilectorBy

ATTEST:

Secletatv

^-5I)(X'S(l('/ I 70r1256v4/200,590-000 l

TIì.USTE['S CIIì1'IFICATE OF AUTIII¡]N1'I CA'I'ION

'l-his is one o1'the llonds described in thc wilh in-nrentioned lndcntutc.

Autheutical ion Date:

MUFG UNION BANK, N.4.. as Ijustee

Autholized Signatory

DO('S(lC /l 704256\,4/200590-000 Ì

A-6

ABBRtrVIATIONS

1-hc following abbrcviations, when used in the inscliption on the 1àce of'this llond. shall be

construcd as though tlre¡, lvsr. writfen out in fìrll according to applicable larvs or''l'ax lìegulations:

TI]N COM --TEN I]NT --JT ]'UN --

âs tenaDts iu comrlollas teüa¡rts by the entitelìesas ioint te¡rants witlì right ofsurvivolshi¡r and ¡rot as tellallls i¡r

colllll'lonas connrrrrity ¡r'opelt¡,

UNIF GIF'f MIN AC'f Crìsrodian(Crìst.)

uuder'ljnifolur Gifts to MinoN Act(Minor')

(srate)

COMM PIìOP --

ADDI'I]ONAt- ABBREVIATIONS MAY ALSO BE USED'II IOT.JGì'] NOT IN TI]E LIST ABOVE

A-7I)O(lSO( / I ?04256v4/2110590-000 I

(FOIìM OIì ASSIGNMI'NT)

fol valLre leceived the undelsigned lrercLry sells. assigrs ancl trausfers unto

(Narre, Addr ess ancl Tax ldontificaljor) or Social Security Numbel of Assignee)

the within-r egisteled Bond ancl hereby irlevocably const;tute(s) and appoints(s)

SiglatLrles Guaranteccl:

attonrevto tlansfèr tlre same on the registlation books of the l-rustce wjth lull powel ol'substitulion in the

Prcm ¡ses.

Datecl:

Notc: Signature(s) lnr¡st be gualanleed by an

eligible gualantor'.Note: 'fhe signatLrles(s) ou this Assignncnf nrusl

colrespond with the name(s) as wlitlen onthe face of the witÌrin I]ond in o,cly¡rrlliculal u ilìroul aìlcllrlir'¡l olellalgenre;rt ol any change whatsoever'.

I)OC -sOC/l 704256v4/200590-(,100 ì

A-8

$_SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF TI{E CITY OF LAKE ELSINORESubordinated Tax Allocation Refunding Bonds, Series 2015

BOND PURCHASE AGREEMENT

-

2015

Successor Agency to tlìeRedevelopment Ager-rcy of the City of Lake Elsir.role

130 South Main Streetl.akc l.ìlsirrolc, C¿l i lolnia 95965

Ladies and Gentlernen:

Stifel, Nicolaus & Company, Itrcorporated (the "Undcrwriter") offels to entel into this

Boncl Purchase Agleement (the "Boncl Purchase Agleernent") with the Successor Agency of tlre

Recleveloprnent Agerlcy of the City ol L,ake Elsinore (the "Successor Agency") which will be

birrcling upon the Successor Agency ancl the Undet'writel upou the acceptallce heleof by the

Succcssor Agerrcy. This offer is made subject to its acceptalÌce by the Successor Agency by

execution of this Ilond Purclrase Agreemerrt and its delivery to tl.re Undelwliter on or before

5:00 t'.À4., Califolnia time, on the date heleof.

The Succcssor. Agency acknowledges ar.rcl agrees that: (i) tl-re pulchase and sale of the

above-captior-rec1 borrds (and defined below) pursuarìt to this Bond Purchase Agleeû1elìt js an

ar.nr's-lerrgth comrrercial transactiorì between the Successol' Agency and the Underwliter'; (ii) inconnection with such tl'ansaction, includirrg the process leading thereto, the Undelwriter is

acting solely as a pr.incipal and not as all agellt or a fiduciafy of the Successor Agency; (iii) the

Unclerwriter has neither assumed an aclvisory or fiducia|y responsibility in favol of the

Successor Agency with tespect to tl-re offering of tlÌe llorìds or the plocess leadirrg thereto

(whether or rrot the Undelwriter', or any affiÌiate of the Uuclerwriter', has advised or is curretrtly

advising the Successor Agency on other nìatters) nol has it assut¡ed any other obligation to the

Successor Agency except the olrligations explessly set folth ir-r this Bond Purchase Agreerìcnt;(iv) the Undenvriter has financial ancl othcr irÌterests that cliffcr from those of the Successol'

Agency; and (v) the Successor Agerrcy has consulted with its on'n legal ancl fiuancial advisors to

the extent it deerned applopriate in connection wilù the offering of the IJoncls

The Successor. Agency hcleby acknora'ledges receipt frorr the Urrclerwriter of disclosures

r.equir.ed by the Mrflricipal securities Iìulernaking Boar.d ("MSRB") Rule G-l7 (as set fortlr in

9150331 v2

MSIIII Notice 201,2-25 (May 7,7012), rclaling to clisclosures concerning the Utrderwritet's role ¡rtlìc transaction, disclosures concelning tl-re Underwriter's compensation, conflict disclosures, ifany, and disclosures concenirrg cornplex municipal securities finatrcing, if any. The Successor

Agency acknowledges that it has er-rgaged Ulbarr Futures, lnc. (the "Financìal Advisor"), as its

rnunicipaÌ advisor (as dcfired ilr Sccurities arìd llxclìange Cotrrmission Rule 158a1), ar-rd for'

financial aclvice purposes, will rely only on the advice of tJre Firrancial Advisot.

Capitalizecl terms not otherwise definccl in tlris Bond Purclrase Agreement shall l.rave l:he

sar.ne mea¡ì1gs given them in that celtaiu ludenture of Trust, clatecl as of August 1, 2015 (the

"hrclentule"), by arrd betweeu the Successol Agerrcy and MUIìG Union Balrk, N.4., as tfustee(the "'l'rustee"), pursuant to wlìich the Bonds are bcing issued

1. Ptu'chasL: utd SnIc; Usc of Proceeds.

(a) Upon tlìe ter.ms arrc{ conditions and in l eliance uporr the reprcselltations, wat ranties

and coverlants herein, tlre Successor Agency hcrelry agrees to sell to tlre Undetwl iter aud the

Ulrclerwr.itcr heleby agrees to purchase fl orn the Successor Agency for ofleling to the public, all(but uot less thar.r all) of the $_ Successor Agency to the Redeveloprnent Agency of the Cityof Lake Elsinore Subor.dinated Tax Allocatiou Refunding Bonds, Series 2015 (the "Bonds"), at

the purchase price of $_ (the "Purchase Price") (treing the principal amourìt of the Bonds

of $- less an Unclerwriter's discourrt of $- and plus an original issue pretniurn of

$__). The Purchase Plice will be dclivered to tlìe Tlustec on behalf of the Successor

Agcncy.

T|e Pur.clrasc Price is to be paid orr tl-re Closir-rg Date (as clefinecl iu Section 6 below).'IheBorrcls shall be dated the Closing l)ate, and shall beal interest at tlìe lates, shall mature on the

dates a¡d iu the plincipal amoultts and shall be subject to redetnptiorr, all as set forth irr the

attached Exhibit A.

As an accornrnodation to the Successol Agency, the Underwriter will pay, from tllepulchase pÍice of the llonds, the suln of $-- to

-

(the "Irrsurer") as the premiurnfor thc portion of its municipal bond insurance policy issued fol the Boncls (the "Municipal

Botrd lnsur,ance Policy") and allocable to tl-re lloncls and the sum of $- to the Insurer as tlì<l

prernium for the portion of its resetve funcl n.runicipal boud ilrsurance policy issuccl fol the

Bonds (the "Rcselve Fund Municipal Bond Insuralrce Policy") and allocable to the l]onds.

(b) The llonds are being issuecl for the purpose of (i) providing funds to the Successot'

Ager-rcy to ref'urrd the following borìcls issued by the Reclevelopnent Agency of the City of Lake

Elsinore (the "Forrnel Agency"),

. $3,260,000 initial aggregate PrinciPal amount lìedevelopment -Agency of the City

of t,ake Elsino: e Suboldinate Tax Allocation lìonds (Ploject Alea No. II) Selies

2011; and

9150331.v2-2-

$1,350,000 initiaì aggregate plirrcipal amount RedeveloPnrent ,Agency of the City

of Lake Elsinore Subordinate Tax Allocation llonds (Proiect Alea No, llI) Seties

201't;

(ii) providing funds to thc Successot' Agency to Prepay a loan of the Folmer Agency

frorn the l-akc EIsir-rore lrublic Financing Autholity tl-re ploceeds of which were delived frorn the

Lake Elsilrore Public Financing Autl-ror.ifr Tax Allocation lìevcnue Borrds (I,aunch Rarnp

Project), 2011 Series A, (iii) [funding a reserve fund for the Bonds], and (iv) paying the costs ofissuing the Borrds.

The Bonds are special, limited obligations of the Successol' Agency, payable from, and

seculed by a lien on Tax Rcveuues.

Tl.re payrnent of prir-rcipal of ancl interest or1 the Bouds, rt'hetr duc, will be insuled by the

Municipal Bond Insurance Policy issued by the lrrsurel concurreutly with thc dclivery of the

Bonds.

(d) Issuarrce of the llonc{s was authorized by resolutions of the Successor Agelrcy,

ac{opted on 2015, and , 2015 (collectively, the "Successor Agency Resolutiorr"),ancl a resolution of the Oversight Board of the Successor Agency to the Redevelopnlent Agency

of the City of Lake Elsiuore, adopted on

---,

2015 (the "Oversight Boald Resolution").

2. Bona Fidc Public Offerhry. The Unclerwliter agrees to make a bona ficlc pr-rblic oflerirrg

of all of the lìonds, at prices not in excess of the irìitial public offering yields ol pl ices set forfllon the cover page of the Official Statement. I'he Bonds rnay be offerecl aud sold to ccrtairr

clealers at prices lower than suclr initial public offeling prices.

3. Officinl Stotement. The Successor Agerlcy shall cleliver or cause to be delivered to the

Ur-rcierwr.iter. promptly after acceptance of this Bond Purchase AgleeÌnellt copies of the Official

Statemcnt telating to the Bonds, dated the clate hereof (which, togethcr with all exlìibits ârrd

apper.rdices included thelein or attachecl thereto and with such amenclmetrts or supplernents

thereto n'hich shall be apploved by the Underwriter, tlte "Official Statemerrt"). The Successol'

Agency author.izes the Official Statement, incluc{ing the covet page and Appendices thereto arrd

tlìe ilìfotrnatiol't contailÌed tlrcrein, to be usecl in conrìectioÍì witlr the sale of tlre lJoncls ancl

ratifies, corfirms and approves the use and distril¡ution by the Underwriter fol such PulPose/prior.to the date hereol of the Pleliminary Official Statelnent dated j 2015 relating to tlre

Iìor.rds (the "Preliminar.y Official Statement"). The Successor Agency deems the PreliminaryOfficial Staternent final as of its datc for purposes of lìule 15c2-12 unclel thc Securities Exchange

Act of 1934, as arnelrde cl ("Rule 15c2-^12"), except for information allowed to be omitted by Rule

15c2-'12.

The Successor Agency also agrees to deliver to the Undelwriter, at the Successor

Agetrcy's sole cost and at such address as the Unclerwriter shall specify, as rnany copies of tho

Official Statement as the Underwriter shall reasonably lequcst as llecessafy to comply withparagraplr (b)(a) of Rule 15c2-12, with llule G-32 arÌd all otlìcr applicable rules of the MunicipalSecurities Rulemaking ìloaltl. At least one copy of tlìe Official Stateme:rt shall be in word

searchable portable docurnent forrnat (PDF). 'Ihe Successor Agelrcy agrees to deliver sucl-t

-j-915033'1.v2

copies of tlìe Official Statement n'ithin seven (7) business clays after the date hercof, but in any

evetìt Ììo later than the Closing Date. 'fhc Oflicial Statement shall contain all informafiorrpreviously pelnìittec{ to be omitted by Rule 15c2-12.

'l'he Undern'riter agÌees to deliver or calrse to be deliveled to each purchaser of tteIJonds from it, upon request, a copy of the OfÍcial Statcment, fol the time peliocl requitcdu¡der. Rule 15c2-12. The Untlerwliter also agrees to promptly file a copy of the final OfficialStatement, irrclucling any supplernents prepared by the Successol Agency and delivered to the

Underwriter, with a nationally recognized rnunicipal securities information Íepositoty(curlerrtly, the Electlonic Mur.ricipal Market Access Systern (refcrred to as "EMMA"), a facilityof the Municipal Secur.ities Rulernaking Boa|d, at www.eÍìírìa.ûtslb.olg), ancl to take any ancl

all other actions necessaly to comply with applicablc Securities arrd Exchauge Cornmissiorr

r.ules and Municipal Securities Iìulemaking Board lules govertring the use of the OfficialStatemelrt irì corulection with of{elir-rg, sale and dclivery of the ïlonds to the ultimate purchasers

thcleof.

4. Reprcsentntìons, WarrnLtics nnd Aç;rcencnÍs of tltL Succassor Agenct¡. The Successor'

Agency lepresents arìd warrants to the Underwlitel tIÌat, as of the Closing Date:

(a) 'l'he Successol Agcrrcy is a public errtity existing under the laws of the State,

irrcluding tlre Dissolution Act, and is authorized, amoìg othel thirrgs, (i) to issue the'Iìoncls, and (ii) to secure the Bonds in the nìaruÌel conterìÌPlated by the Inder.rture.

(b) The Successol Agerrcy has the full liglrt, porver atrd autholity (i) to elÌter intothe Inde¡ture, ancl this llond Pulchase Agleement, (ii) io issue, scll and deliver the

Ilonds to the Underwriter as provided hercin, and (iii) to calry out and consumrnate allothet. tr.ansactions orì its part conternplated by each of the aforesaicl documents, and tlre

Successol' Agcrrcy has complied with all provisiorìs of applicâble law in all mattelsrelating to suclì tl ar1sactiorìs.

(c) The Successol Agency has duly authorized (i) the execution and delivery ofthe Bonds ancl the execution, .lelivery and due pclformance by the Successor Agency ofthis Bond Purchase Agreement and the Indenture, (ii) the distributiou and use of the

"deerned fi¡al" Pleliminary Official Statemerìt ancl flre executiotr, rlelivery and

distribution of the filral OffÌcial Staternent, ancl (iii) the taking of any ancl all such actionas may be required on the palt of the Successol Agency to calry out, give effcct to arrd

consunrlnate thr: tratÌsactions oÌ-r its pârt corìternplatccl by such instrurnents. All consents

or aprprovals necessar'y to be obtained by the Successor Agency in connection with the

foregoing have been received, and the consents or approvals so received are still in fullforce and effect.

(cl) The infolrnatiotr containecl in the Preliminaly Official Staterrelrt (excludingtherefrom for. any infolmation relating to the lnsurer, the Municipal Boncl Insurance

Policy, the Reselvc Fund Municipal llond Insurance Policy, DTC aíìcl its book-entrysystern incluclecl thercin and the i¡rfornatiou thereirl under the caption"UNDERWRITING") is lrue arÌd correct in all matcrial respects, and the PreliminaryOfficial Staternent clid not as of its date contain arry untrue or ûrisìeacling statemettt of a

9150331 v2

,4-

material fact oÍ orÌìit to state any rnateriâl fact necessaly to rnake the statements tlìerein,in thc light of the ciLcurnstances under wl.rich tlìey were rnade, not misleading

(e) The infolnration contained in tlre Official Staternerìt (excluding therefrom forany infonnation relatirlg to tlte Iusurer, the Municipal Bond Insulance Policy, the

Reserve Iund Mur-ricipal Bolrd Insurance I'olicy, DTC atrd its book-entry system

included therein and the information therein unclel tlìe caption "UNDERWRITING") is

true and corlect in all material resPects, and the Oflicial Statement does not contain any

untÍue oI misleacling staterìlent of a material fact or omit to state any matelial fact

necessary to make the statements thereirl in the light of the circumstances under whichthey we[e rnadc, rrot rnisleadirrg.

(Ð Neither the executiol-r and delivery by the Successot' Agerrcy of the ludentute,this Borrd Pulchase Agt een-rent and of the Bonds nor the consummation of the

tlansactiolls on the palt of the Successor Agency contemplated hereir-r or thereilr ol the

compliance with the plovisions hereof or thereof will conflict witli, or constitute on the

part of the Successor Agerrcy a violation ol or a breach of ol default under, (i) any

statute, illdenture, moftgage, note or other agreenìent or instfunent to whic]r the

Successor Agency is a party ol by which it is bound, (ii) any provision of the State

Constitution, or (iii) any existing law, rule, r'egulation, ordinance, judgrnent, older ol'

decree to which tl-re Successor Agerrcy (or the Board lnembers of the Successor Agencyol any of its officers iu theil respective capacities as such) is subject.

(g) The Successol Agency has never beeu in default at any tirnc, as to principal ofor interest on any obligation which it has issued except as othcrwise specificallydisclosecl in tlre Official Staternent; aud the Successor Agency has not eutered into any

contract ol alraÍìgcment of arry kind which rnight give lise to any lien or encutnbtattce

on tlre Tax Revenues (scniot to 01' on a parity with t.l-re pledge thereof under tìre

Indenture), except as is specifically disclosed in the Prelirninary Official Staternent ancl

the OIficial Statement.

(h) Except as will be specifically disclosed in the Official Statemerrt, there is noactiolr, suit, proceeding, inquiry ol investigation, at law ol in cqr-rity, before or by any

cour! public troard or body, which has been served on the Successor Agerìcy or, to the

best knowleclge of the Successor Agetrcy, threatened, which in any way questiorìs tlÌepowers of the Succcssor Ager.rcy refelred to iI-r paraglaph (b) above, ol tlre validity ofarly ploceedir.rg taken by the Successor Agency in colìnection with the issuance of the

Bonds, or wherein an unfavorable decision, r'uling ol fincling could matcrially aclvelsely

affect the transactions conternplated by this Bond Purchase Agreernent or the Inclenture,

or which, in any way, could adverseìy affect the validity or enforceabiliÐ' of the

Indenture, the Bonds, or this lJond Purchase Agreemeut or, to the knowledge of the

Successor' ,\gency, whiclr in arly way questiorrs tl-Le exclusion frotn gtoss incorne of the

lecipients tlreleof the intelest orì tlre Boncls for federal incorne tax purposes or iu any

other way questions the status of the Boncls undel federal or state tax laws orregulations ol which in any way could nratcrially advelsely affect the availability of Tax

Revenues to pay tlìe debt service on tl.re Bolrds

9150331 .v2

,5-

(i) Arry written cettificate signed by any official of the Successor Agency and

delivered to the Underwritet in counectiolì with the offel or sale of the llonds shall be

cleemed a lepreserìtation au<1 warratrty by the Succcssot Agelrcy to the Undelwritel as

to the trutl-t of the staterneuts thelein contained

(j) 1'he Successor Agency l.ras not been notifictl of any ìistìng or proposed listingby the Illtetlìal lìevenue Service to ihe effect tl-rat it is a l¡ond issuer wlÌose ar'Ìritlage

certifications rnay not be relied upon.

(k) The Successol Agency will furuish such infornration, execute suclìinstr.uments at-Lcl takc such other action in cooPelatiolì with the Underwritel and at the

expense of the Underwritel as the Undelwritel may reasolìably lequest in older (i) toqualify tl.re Bouds fot offer and sale undcr the lllue Sky or othel secutities laws and

regulations of such states and otl.rer. jur,isdictions of t]]e united sl:ates as the ul-rderwriter

may ciesignate ancl (ii) to dctermine the eligibility of tlìe Bol'ì.ds for illvestment undet the

laws of such states and otlìcr jut,isdictiorìs, arrd will use its best efforts to continue such

clualifìcations in effect so long as requited for the distlibution of the Bor.rds, plovided;however, that the Successol Agency will not Lre lequilecl to cxecute a special ot geueral

corìscnt to servicc of proccss or.qualify as a foleigrr colporation in connection with any

such qualification ol c{etel mination in arry jurisdiction.

(l) All autl-rolizations, approvals, liccnses, pern.rits, cousents, elections, and orders

of or filirrgs witl-r ar-ry goverrrmental autlìority, Iegislative body, boald, agellcy ol'

comrrission havirrg juliscliction ilr tlre rnattels which are required by the Closing Date

for. the c]ue autl.ìolizatiorì of, which would colrstìtute a condition plececlent to ol the

absence of wl-rich wouÌd adversely affect the due perfonnance by the Successor Agency

of, its obligatior.rs urrder the Indenture have bcen cluly obtained ot made alrd are in lullforce and effect.

(m) Between the c{ate of this Bond Purchase Agreernerrt and the Closirrg Date, the

Succcssor Agerrcy will not oflel or issue any bonds, notes or othel obligations forbolrowed rnoney not pleviously disclosed to the Urrdetwriter.

(rr) The Successor Agency will apply the ploceccls of the Bonds in accotdancc

with the Inclenture and as describe<1 in the Prelirninaly Official Statement and OfficialStaternerÌt.

(o) Except as otherwise described in the Official Staterlìelìt, as of flre Closing

Date, tire Successor Agerrcy will not havc outstanding any inclebtedrìess which

ilìdebteclÌÌess is secur.ed Lry a lierr orr tlte l'ax Reveuues orì a pality with or scrliol to làe

lien plovided for in the Inderrture on the Tax Revenues

(p) Except as described irr the Prelirninary Offìcial Statement and the Olficialstatement arrcl L.¡ased upon a review of their previous undertakings, neithcr the Foftnel'

Agerrcy nor the Successol Agency has failed, within the last five yeals, to comply ill all

material lespects witlì any urìdertak¡ìg of the Successol Agency ol the Forrnel Agency,

respectively, pulsuant to Ilule l5c2-12.

9150331.v2-6-

(q) if between the date lrelcof and the date r'r'hich is 25 c{ays after the End of the

Unclerwr,iting Per.iod for.the Bonds, an event occurs n'hich woulcl cause the informationcontainec{ irr the Official Statemelìt, as tlren supplemented or amended, to contaitl an

untrue statenìent of a mater.ial fact or to on it to state a naterial fact required to be statcd

tlìcreirì ol necessal.y to make the inforrnation thereiu, itr the light of the circutnstalrces

under which it was plesented, not misleading, thc Successot Agency will notify the

Unc{erwliter, and, if in the opinion of the Underwritel or the Successol' Agency, or their

lespective counsel, such event requires tlÌe prepalation and publication of a supplementor alnendrnent to the Official Staterncrìt, the Successor Agency will coopelate iu the

pr.eparatioll of alr a rendmerrt or supplcment to tlre official staterÌìcnt in a fol m and

narÌrÌel approved by the Utrclerwliter, atrd shall pay all expenses thereby incurred. Fot'

the pulposes of this subsectiotr, between the date lrereof and the date which is 25 clays

aftel thc Encl of the Undelwliting Period fol the lìoncls, the Successor Agerrcy willfurnish such ¡ìforrÌìation with respôct to itself as the Uudelwliter rnay from time to tirne

reasonably fequest. As usecl helein, the terÍìr "Errcl of tl.re UndeÍwriting Period" means

the later of such tirne as: (i) thc successor Agency delivers the Bolrcls to the underwÍiter;or. (ii) the undel.writer. does not r.etain, directly oL as a rnernl¡el of an utrdern ritingsyndicate, an unsold balauce of the Bonds for sale to tlre public. Notwithstanding the

foregoing, urrless the Undelwlitet gives notice to the contlary, the Successor Agcncy

may assunìe that the "End of the Underwriting Peliod" is the Closing Date.

(r) If the infonnatiorì contained in the Official Statemetlt is amenclecl or

suppÌernented pursuant to paraglaph (q) heleol at the time of oach supplement or

arrerrclment tlrereto and (unless subsequer-rtly again supplemcnted or amended

pursuant to such subparagraph) at all tiures subsequent thereto up to and including the

c{ate which is 25 clays aftel the End of the Underwliting Period for the Bonds, tìre

portions of the Official Statenìent so supplementcd or amended (including atry firraucial

and statistical data contained tlreleirr) will lìot colltain any untme statement of a

rnatel.ial fact requit'ed to be stated therein ol necessaÍy to make tlìe irrforrnation tlreteinirr the light of the cilcumstalìces urrc{er which it was presented, not misleading.

(s) The Oversight Boald has duly adopted the Oversight Boalcl Resolution ancl

no further. oversight Boar.d approval or consellt is lequired for the issuance of the Bonds

or the consurnmation of tl.re transâctions described in the Official Staternent.

(t) The Departrnent of Finauce of tlle Statc (the "Departmelrt of t-inancc") has

issued a lctter, dated

--

2015, aPploving tlìe issuance of the Bonds. No furtherDepattrnellt of Finance appr.oval ol consent is required for the issuance of the Bonds or'

the cousummation of thc transactions described in the Official Staternent. Thc Successor

Agency has reccived its Firrcling of Cornpletion from the Departrnel.ìt of Finance

pnr.suant to sectior-t 34179.7 oÍ the Dissolution Act. Except as clisclosed in the OfficialStatement, the Successor. Agerrcy is lìot aware of the l)epaÍtrnent of Iìinancc dilecting or'

having arry basis to direct the Courrty Auditor'-Coutroller to clcclt-tct unpaid

unencurnbered funcls frorn frrtule allocations to tlÌe Successor AgelÌcy Pul'suant to

Section 34183 of tl.re Dissolution Act

-7-9150331 .v2

(u) As of the titne of acceptance lrcreof alrd as of thc Closing Date, the Successor

Agency has complied with the filing lequilernents of the Law, including, withoutlimitation, the filing of all Recogrrizecl Obligation Payment Schedules as required by law,as well as sections 33080 to 33080.6 of the Law.

5. Cauennnts oÍ |llt Sttccessar AgetctJ. Tlne Successor Agency covenants witlÌ tlìeUrrderwritel as of the Closing f)ate as follows:

(a) The Successol Agency covenanls and agrees that it will execute a continuitrgdisclosule certificate, corìstitutirìg an urrdeltaking to plovide ongoing disclosure aboutthe Successor Agency, fol thc benefit of the ownels of the Bonds as required by Sectìon

(b)(5)(i) of Rule 15c2-12, substarrtially in the fonn attached to the Official Statement lflìe"Disclosure Certificate").

(b) The Successol Agerrcy aglees to cooperate lt'ith the Underwriter iu the

preparatiorl of any supplen-rent or amendrnent to lhe Official Statement cleemed

necessaly by the Undelwrìtel to conrPly with the lìule and arry applicable lule of the

MSRB.

(c) lf at arry titre prior to the Closing I)ate, any event occurs with respect to the

Successor Agency as a result of which the Official StaternerÌt, as tlÌen amerrcled orsupplernented, rnight include an ulìtLue staternent of a rnaterial fact, or omit to state any

rnate|ial fact necessary to nlake the statemerìts thelein, ilr light of the cilcumstances

undel which they were rnade, ;rot misleading, tìre Successol Agency shall prornptlynotify the Underwlitel irì wljting of such event Any information supplied by the

Succcssor Agency for inclusion itr any amendments or supplemerrts to the OfficialStatemcnt will not contain aiìy untl ue oI lìisleac{irìg staterìrerìt of a matelial fact or oûìitto state any such fact necessary to make the statements thefein, in tlìc light of the

circumstances under r,r'hich they were made, not mislcading.

(d) The Successor Agerrcy will trot knowingly take ol omit to take any action,

which action or omission will in any way cause the proceeds from the sale of the Bonds

to be applied in a rnamret otlrer than as ploviclecl in the Indeuture or which would cause

tlìe interest on the Bonds to be includable in gross income for fedelal income tax

Purposcs.

6. Clasing. On -

, 2015, ot' at such other clatc and tirres as shall have been

rnutually agreed upon by the Successor Agcncy and the Underwriter' (ihe "Closing Date"), flre

Successor Agency will deliver or cause to [¡e deliveled the l]onds to the Undetwritet, and the

SuccessoL Agency shall deliver or cause to be clelivered to tlre Urrdelwt'iter the celtificates,

opinions alrd documents heteinaftel nentioned, each of which shall be dated as of the ClosingDate. flre activities lelating to the cxecution and clelivery of the Botrcls, opir-tious and other'

instrurnents as described in Section 8 of this Bond Pulclrase Agleement shall occul' on the

Closing Datc, unless otherwise specified helein. The delively of the certificates, opinions atrd

documents as described heleirr shall be nade at the offices Slr"adling Yocca Carlsorr & Rauth, APlofessional Colporation, in Newpolt lìeach, Califonia ("Bond Counsel"), or at such other'

-8-9150331 .v2

place as shall have been mutually agleed upon by the Successot Ageucy and the Underwritcr.Such delivery is herein callecl the "Closir-rg."

'l'he Bor.rcls will be pleparecl aucl pl-rysically delivered to thc Tlustee oll the Closilìg Date

in the form of a separate single fully registelecl boncl for each of ûre maturitics of the Bords. 1'hc

Bonds shall be registeled in the narne of the Ceclc & Co., as registered owner ancl nominee forTlre Depository Trust Company ("DTC"), New Yolk, New York The Ilonds will be

authenticatecl by tlre Tlustee in accolclance with the terms ancl plovisions of thc lndentule and

shall be cleliverecl to DTC prior to the Closirrg Date as requiled by DTC to assure delivery of the

Boncls on tlre Closir.rg Date. It is antìcipatecl tìat CUSIP identification IrurnbeLs will be plintecl

on the Boncls, but neither the failure to plirìt suclì nurnlret olt any lìorrds nor arìy errol witl.r

lespect ther.eto shall constitute cause for a failure or refusal by the Ur-rderwlitel to accept

clelivery of arrd pay for. the ìlonds itr accolclance with the telms of this Bond PuLchase

Agleemelìt.

At or befote 8:00 a.m., Pacific Star-rdard tirÌìe, on the Closirrg Date, the Successor Agencywill deliver., or causc to be delivered, the Bonds to DTC, in clefinitive folm duly executed ancl

authcr.ìticated by the Trustee, and tl-re Undcrwliter wiÌl pay the J?urchasc Price of the ìlonds by

deliver.ing to the l'rustee, for tlre account of the Successol' Agcncy a wire tlansfer irr federal

funds of the Purchase Price payable to tlre order of the Tlustee.

7. Closing ConLlitions. I'hc obligatiorrs of the Urrdcrwriter hereurrder sl-rall be subject to the

per.forrnance Lry the Successor Agerrcy of its obligations hereunder at ol ptior to the ClosingDate and ale also subject to thc follou'ing colìditions:

(a) the re¡.tresgÍrtatior-ts, warrarÌties and covenants of the Successol Agencycontained l-rerein shall be true and colrcct in all rnaterial respects as of the Closing Date;

(b) as of the Closirrg Date, lhere shall have beeu no rnaterial adverse change iuthe finarrciaì conclitiorr of the Successor Agency;

(c) as of the Closing Date, all official action of thc Successol Agerrcy lelating to

this Boncl Purchase Agreemeut, the Disclosure Celtificatc, and the Inclentule shall be infull force and effec!

(c1) as of the Closing Date, the Unclel writer shall receive the followingcertificates, opinions and documeuts, itr each case satisfactory in form and substance to

the Underwriter':

(i) a copy of the Indentule, as duly executed arrd delivcred by the

Successor Agency ancl the Trustee;

(ii) a copy of the Disclosure Celtificate, as duly executed ancl delivered bythe Successor Agency;

(iii) an opinion of Boncf Courrsel, clated the Closirrg Date and addressccl to

the Underwriter, in the forrn attached as Apperrdix B to the Olficial Statcment,

9150331.v2-9-

accompanieci by a letter of ìlorrd Counsel to the effect tlrat sucìr opinion may be

relied upon by the Urrdern'ritcr to tlìe sante extelìt as if suclr opinion was

addressed to iU

(iv) a celtificate, dated the Closing Datc, of the Successor Agency

executed by its Executive Dilector' (ol other duly apPointed officer of the

Successol Agency authorizecl by tl-re Successol Agency by resolution of the

Successor Agency) to the effect that (A) there is no actiou, suit proceeding or'

invcstigation at law or in equity befole or by any court, public board or body

which has been selved on the Successot Agency or', to the knowledge of the

Successor Agency, threaterred agairrst ol affecting the Successot Agency tolestrain or er.rjoin the Successor Agerrcy's palticipâtioll iu, or itr any way

cortesting tìe existence of the Successol Agency or the powers of tlre Successor

Agency with lespect to, thc transactions corìtemPlated by this Bond Purchase

Agleement, tlìe Disclosure Celtificate or the lndenturc, and consumrnation ofsuch transactions; (B) the represcÌìtatiol.ìs and warlarìties of the Successor Agency

contairred in this Bond Purchase AgreenÌent are true aud correct in all materialrespecls, at-td the Successot' Agency l-ras cornplied witl.r all agteements and

cover-rants and satisfied all conditions to be satisfied at or pliol to the Closingl)ate as contemplated by the Indenture and this Bol-rd Pulchase Agleernent; (C)

lìo everìt affecting the Successor Agency has occurred sincc the cìale of the

Olficial Statemerrt which has not been disclosed therein ol in any supplernent oramendment thereto which event should be disclosed in the Official Stâtement it1

order to make the statements therein, in the light of the circumstances underwhich they were made, not rnisleacling; and (D) no fulthel consent is lequiled to

be obtained fol thc inclusion of the financial staternent with respect to the

[Private Purpose Tì ust Fund of the Successot Agerrcy fol the ¡*iscal Year Endir.rg

Jurre 30, 2014, which is excerpted frolrr the audited City of Lake Èlsinore,

California, Year End June 30, 2014 Cornprehensive Annuaf liuancial lìeport, as

Exhibit E to l1-re Official Statcment];

(v) arr opinion of tl-re City Attorney, as counsel to the Successor Agency,

dated the Closing l)ate atrd addlessed to tlÌe Successor Agency and tl.re

Undelwriter to thc effect that:

(A) the Successor Agency is a public body, cluly otganizcd and

existing urrdel thc laws of the State;

(B) the Successor Ageucy has full legal power and Iawfulauthority to enter into tlìe Indenture, and this Bor-rd Purchase Agrcernent;

(C) the Successor Agcncy Resolutions have been duly aclopted at

meetings of the govcrning board of the Successor Agency, which were

callecl and helcl pursuar.rt to the law and with all public notice lequired bylaw and at each of which a quolurn was pÌesent ancl actitrg throughoutand the Successol Age;rcy Resoluticlns are in full force and effect and

have not l¡eeu modified, amer-rded ol rescinded;

9150331.v2-10-

(D) the hrdenture, tlrc Disclosure Certificate and tlris Bond

Purchase Agreement have been duly authorizcd, exectlted and <ìelivered

by the Successor Agency and, assurniug due authorizatio;r, execution and

clelivery by the othel parties theleot constitute valid, legal and bir-rding

agreements of tlre Successor Agency enforceable in accordalrce with theirterrns;

(E) The ir-rfolmation in the Official Statcmellt undel the captiol.ls

"SECURITY FOR THE BONDS," "THE SUCCESSOR AGENCY OI TIIEREDEVELOPMET AGENCY OF l'HE CITY OIì LAKE ELSINOIìE" and

"TIlll REDEVIILOPMEN I' P]ìOIECT," ìnsofar as such statements pulportto summarize irrformation witll resPect to the Successor Agency and itstax sharing agreernerÌts, fairly and accutately sumnalizes the irlforrnatiorrpresentcd thelein;

(F) Except as otherwise disclosed in the Official Statement, thele isno litigation, action, suit, proceedirrg or il.lvestigatiorr at law or in equitybefore or by any court, governrnental agency or bocly, pending by way ofa sulÌìrnons served against the Successor Agency or', to oul knowlcdge,threatened against the Successot' Agency (nol to our knowleclge is there

any basis tielefore), cl-rallenging the cleatiol.ì, organizatiorì or existerrcc ofthe Successo¡ Agency, ol the valiclity of the Indentule, the Disclosure

Celtificate or this Boncl Purchase Agreetnerrt or seekiug to restrain orcrrjoin any of the transactions refetrecl to therein or contemplated helebyor therel¡y or contestirìg the audrolity of tlìe Successol Agerlcy to enter'

into or perfolm its obligations under the Indentule, tfre l)isclosureCeltificate or this Boncl Purchase Agleelnet-r! ol under which a

deterrnirìatiorì adverse to tlre Successor Agency would have a rnatetialaclvelse eflect uporl the availability of Tax Revenues to pay tlre debtservice on the Bonc{s, or whicl-r, in alìy lnanìlel, questiolls thc rigl-rt of the

Successor Agency to elìt€r into, and perform its obligatior.rs uncler, the

Lrdenture, the Disclosure Certificate ol this Bond Purchase Aglcemeut;

(G) To the best of such counsel's knowledge, the informationcontained in the Prelirninaly Official Staternent (excludirrg thelefrom forany infolmation lelating to DTC and its book-entry systern irrcludecl

therein anci tl-re inlolmatiol therein uncler the caption"UNDERWIìITING") is tlue ancl cortect in all matelial respects, aud the

Preliminary Official Statemel.rt clid trot as of its dat€ contain ally untlue orrnisleading staternent of a naterial fact or ornit to state ally material fact

necessaly to make the stateûìents therein, in the light of tl're circur¡stances

urrcler wl-rich thcy were macle, trot misleaclirg; at-rd

(LI) To the best of such counsel's knowledge, the inforrnationcontairred in tlre Official Statenent (excluding thelefiom for auy

infolmation lelating to flte Insuler, the Municipal lJond Lrsurance

9150331 .v2

-11-

Policy, the Reservc Fuucl Munici¡ral Bond lnsulance Policy, DTC and its

book-entry system includecl thereirì ancl the inforrnation thercin uncler'

tlìc caption "UNDERWRITING") is true alrd corlect in all rnatelialrespects, ar-rd the Official Statement cloes not contain any urtrue olmisleading statement of a matelial fact ol ornit to state aÍìy material fact

neccssary to lÌìake tlÌe statêlìlel1ts therein, in the light of the cilcurnstances

undcl which they were made, not misleading;

(vi) an opinion of counsel to the Trustee, clated the Closing Date and

addressecl to the Successor Agency ancl the Undcrwriter', to the cffect that:

(A) The Tlustee is a national bankilrg association orgarrized and

existing urÌdel the laws of ihe Ulrited States of Artrcrica, having fulÌpowel to erìter illto, accept atrd administer tlìe tust crcatcd rlnder the

Indentule;

(B) 1'he lnclenture has beett duly autholized, executeci and

clelivercd by the Trustee and tl.re Indentul'c constitutes a legal, valid and

binding obligatiou of the Tlustee enfolceable in accoldance witlÌ itsterms, except as enforcencnt theleof may be limitecl by bankruptcy,insolvcncy or other laws affecting t[]e crlforcement of creditors' rightsger.rerally and by the application of equitable Pdrìciples, if equitableremeclies are soughÇ and

(C) No conserrt, approval, authorization or other action by any

governmeutal ol regulatory autl.rority havirrg jurisdictiolr over tlìe Trusl€e

that has not been obtained is or will be required for tlre execution and

delivery by the Tlustee of the lnderrture or the cousumnration of the

tratìsactiorÌs on the part of the Tlustee conternPlated by the Incletrture;

(vii) a celtificate, dated the Closing Date, of the Trustee, signed by a cluly

authorized oflicer of the 'I'rustee, to the effect that (A) the Tlustee is dulyorganizecl ancl validly existing as a national banking association, with fullcorporate power to undertake the obligations of the Indentule; (B) the Tlusteehas duly authorizecl, executecl and clelivered tlle Inclenture and by all ploper'corporate action has authorized the accePtance of the tmst of the Inderrture; and

(C) thele is no action, suit, ploceecling or investigatiotr at law or irr equity before

or by any court, pubÌic board or bocly wlrich has been setvr¡<l orr the Iì'ustee(either in state ol fedelal courts), ot' to the knowledge of tlìe l'r'ustee thrcateued

against the T'r'ustcc which woulcl restlairr ot etljoirr the execution or delivery ofthe Indentule, or which would affect the validity ot' enforceability of tlÌelndenture, or the Trustee's Participation in, ol in at.ty way contesting the pon'ersol tl-rc authority of the 'ft'ustee with respect to, thc tr al$actiorìs contemplated bythe Inclentule, or any other agreemeÌrt, docurnent or celtificate lelâted to such

tlansactiorìs;

9'150331 .v2-12-

(viii) a supplemerltal opir.ìion of Boncl Counsel, dated the Closing Date

arrd ac{c{¡essed to the Successol Agency arrd the Underwriter', to the effect tlìat:

(A) this Bond Purchase Agreernent has bcen duly authorized,executcd and deÌivered by the Successot Agency, aud assurtring the validexecution arrd delivery by the otler parties tlÌeÍeto, is valicl and bindingupon the Successor Agency, subject to the laws lelating to bankluptcy,insolvency, reotganization of creditors' rights genelally and to the

applicatiorr of equitable principles;

(B) the Boncis are exerìtPt fiom registration pursuarlt to Section

3(a)(2) of the Securities Act of 1933, as amended, and the Indenture is

exernpt from qualification Pursuant to the Trust Ìnderrture Act of 1939, as

amended; and

(C) the statements contained irr the Officìal Statelnent under the

captior.ts -IHE BONDS," "SECURITY IOR lllE BONDS," "T'AX

MATTERS" and "APPENDIX A*SUMMAIìY Of CERTAINPROVISIONS OF THE INDEN'IURE" thereto are accurate insofar as such

stâtements purport to expressly summarize celtairr provisions of thclìorrds, the hrdenture and Boncl Counsel's opinion concerlling feclelal tax

matters relatitrg to the l3orrds;

(ix) a lettel of Stradling Yocca Carlson & Rauth, A Professional

Corpolation, Newport Beach, California, as disclosure counscl to the Successor'

Agency, datecl the Closirrg Date and acldressecl to tlìe Successol Ageircy and the

Underwliter statilìg tllat trased upou its participation irr the plepalation of the

Official Statement and without havir-tg uudeltaken to determine irrdependentlythe fairness, accuracy or cornpleteness of the stateÌÌÌents cor-rtait-red in the OfficialStatenìer.ìt, suclÌ coullsel has no reasot.t to believe that, as of the Closing Date, the

Official Statement (excluding therefiom any infoltnatiolt lelating to the Insurer,the Municipal Bonci lusutance Policy, tl.re Reserve Fund Municipal Bor.rd

Insulance Policy, DTC and its book-entry system inclucled theleiry and tl.re

information therein undel tìe captiorÌ "UNDERWRITING" and the reports,financial ancl statistical data and forecasts therein, ancl the information includedirr the apperrdiccs theleto, as to which rro opiniotr need be expressed) contains

any untrue statement of a nraterial fact or otlits to state a material fact ÍequiÍedto be stated tlìerein or necessary to rnake the staternerìts thelein, in tl-re liglrt ofthe circunlstances undel wlìich they were mac1e, not rnisleading;

(x) the opinion of Undelwriter's counsel satisfactory to Unclerwrit€r;

(xi) an Albitrage Certificate in tl-re form satisfactoly to llorrd Counsel;

(xii) the final Official Statement executed by arr authorized officer of tl-re

Successor Agency;

-13,915033'1 .v2

(xiii) celtificd copies of the Successol' Agency Resoluiions ancl the

Oversi glrt Board Resolu tiot.ts;

(xiv) specimen llonds;

(xv) evidence that the federal tax information fol nì 8038-G with resPect tothe Bonds lras been prepared by Bond Courrsel for filing;

(xvi) a copy of the Municipal Bond Insurance Policy;

(xvii) a copy of the lìescrve Fund Municipal Bond Insurance Policy;

(xviii) an opirrion of counsel to tlre Insurer, addlessed to the Successor

Agcncy and the Urìdelwliter to the effect that:

(A) the descriptions of the lusurer, the Murricipal Bond LsuralrcePolicy arrcl the Reserve Fund Mur-ricipal Bond ltrsurance Policy includedin the Official Statemerìt are accurate;

(B) the Municipal Bond Insurance Policy ancl tl're Reserve FundMunicipal Bond Insutance Policy cor'ìstitute legal, valid arrd binclingobligatiorrs of the Instrrcr, errfotceal¡le in accordance witlì tÍeir rcsPective

terÌns, except as the enforcement thereof may be limited by bankluptcy,insolvcncy, r'eolganization, tnoratoriunt ot similar Ìaws or equitableplinciplcs relating to or lirniting creditor's lights generally and by theapplication of cquitable principles if equitable rerrìedies ale souglìt, arìd

(C) as to suclÌ otlìer matters as the Successor Agency or theUrrderwriter may rcasonably request;

(xix) a celtificate of the Insurer, signed by an authorizecl olficer of thelnsurer, to the effect that:

(A) the infolrnatioÌ-r containecl in the Official Statemerrt relatillg tothe lnsurer', the Municipal Boud Insutance Policy anc{ the Reserve FundMur-ricipal Bond Insurance Policy is true alrcl accurate and

(B) as to such other matters as the Successot' Agency or theUndelwliter tnay leasorrably t equest;

(xx) satisfactory evidence that thc Bonds have been assigned the lating of"-" from Starrdald & Poor's Ratings Selvices ("S&P") and that the Bonds

have been assigrrecl the insured ratirg of " " flom S&P;

(xxi) a certificate of an officer of datecl the Closing Date,

adclressed to the Successor Ageucy arrd the Uncierwriter, to the cffect that, to thebcst of its knon'ledge, the assessecl valuations alìd other fiscal informafion

-"t4-9'150331.v2

containecl in the Official Statemcrìt, itrcluding sucl-r firm's lìiscal Consultant'sReport attached thereto as Apper.rdix G, are presented fairly ancl accurately, and

conserrting to the use of tlìeil repolt as APPENDIX G to the Prelirninaly OfficialStat€ment alìcl the Official Statemenq

(xxii) evidence of lcquiled filings with tl-re California Debt and

Invcstrnelr t Advisoly Co¡nl¡ issiotr;

(xxiii) clefeasance opinions of Bond Corursel clated the Closing Date and

aclcLessed to the Successof Agency, tl-re'l'rustce, and the Underwriter', in forrranc{ sul.rstancc satisfactory to tlre Underwliter'; and

(xxiv) such additional legal opinions, ccrtificates, instrumerìts and other'

documents as the Underwriter tnay reasonably deern necessaly to evidence the

truth and acculacy as of the tirne of thc Closing Date of the replesen tatioÌ.$ and

warranties of the Successor Ageucy corrtaiired in this ìlond Purchase Agrcctnentancl the due performatrce ol satisfactiolr by the Successol Agerrcy at ol prior tosuch time of all agreetneuts then to be pelformcc{ and all conditiolrs then to be

satisfied by the Successol Agenc)¡ pursuant to this lloncl Purchase AgreemeÌìt

9- l'ennínntion. il'he Underwritcr shall have the light to cancel its obligations to purchase

tlre Bonds if between the date heleof and the Closing Date:

(a) a decision with respect to legislation shall be leacl-red by a comtnittee of the

Ilouse of Representatives or the Serlate of the Corrgress of the Ulìited States, or'

legislatiorr shall be favorably repolted by such a committee or be introduced, byame¡dment or othelwise, in or bc passed by the l-Iouse of Iìepresentatives ot tlìe Senate,

or recornrnended to the Congtess of the U;rited States fol passage by the President of the

United States, ol.be enacted ol a decision by a federal coult of the Unitecl States or the

Ulrited States Tax Court shall have beerr retrdeled, or a ruling, release, ordcr, tegulation

or offering cilculal by or on behalf of the United States Treasury Departmcnt, tlìe

lnternal Revenue service or other gover.lrmental agency shall have been made orpr.oposecl to be rnade having the purpose or effect, ol any other actiorì ol event shall

have occurred which has the pulpose ol effect, dir-ectly or- indilectly, of aclversely

affecting the federal incorne tax cormequences of owrring the Bonds, i|cluding causing

interest o¡ tlre Bonds to be irclucled in gross incorne fol pulposes of federal incotne

taxation, or ir.rrposing federal incornc taxation upon revelìues or otheÍ incorne of tl¡egener.al character to be derivecl by the SuccessoÍ Agency ol by any sirnilar body urrder

the Inderlture or similar docu¡rents or upor-r intelest Ì ece ived on obligatior-rs of the

gcneral character of the Bolrds which, irr the reasonablc opiltion ol the Unclclwritet,t.naterially adversely aflects tl-re nrarket price of or rnarket for the Bonds ot the ability ofthe Underwriter to enforce coutracts for the sale of the Bonds; or

(b) Icgislatiorr shall have been euacted, or consiclered fol enactmcnt with an

effective clate prior to thc Closing Date, or a decisiou by a cout't of the United Statcs shall

have been lenderecl, the effccf of which is that of the Boncls, includirrg at-ry underlyingobligations, or the Indenture, as thc case may be, are not exempt florn the registratiorl,

9150331.v2-15-

qualification or other lcquirernents of the Securities Act of 1933, as amenclecl ancl as then

iIr effect, the Securities Exclrange Act of 1934, as amended and as then in effect, or the

Trust Indenture AcToÍ1-939, as anrendetl and as theu in effect; ot

(c) a stop order, ruling, rcgulation or offering cilcular by the Seculities alrd

lìxchange Commission or alty other govetnmental agency having iurisdiction of the

subject rìlatter sl-rall have been issued or rnade ol any other event occuls, the effect ofwhicl-r is that tlÌe issuance, offeÍirrg oÍ sale of the lSonds, inclucling any urrclerlyingobligations, or the clelivery ol performance of thc llrdenture, ol the Disclosuro

Celtificates, as conternplatecl hereby or by tl-re Official Statement, is ot'would be inviolation of any provisions of thc fedelal securities laws, irrcluc{ing the Securities Act of1933, as amendecl arrd as then iu effect, the Seculities Exchange Act of 1934, as atnended

and as tlren in elfect, ol the Trust Indenture Act ol 1939, as amended ancl as then ineffecU or'

(d) arry event shall have occut'r'ed ot atry inftxmatiolr sl.rall have become knownto tlte Unc{er.wliter which causes the Underwritel to reasorrably believe that the OfficialStatelnent as then amended or supplemerrted includes an untlue statement of a matetialfact or omits to state any material fact necessary to rnake tlre statemetìts thereirr, irr lightof the circumstances uncler which they wcle rnade, not misleading; or

(e) there slrall have occurrecl any outbreak or escalation of hostilìtics ol any

national or inte¡national calarnity or crisis, including a financial crisis, the eflect of whichon the financial markets of the Ulrited States is such as, in the leasonable juclgment ofthe Underwliter', would rnaterially adversely allect the rnarket fol or market price of the

Bonds or the ability of thc Underwriter to enforce contracts for the sale of the Bonds; or

(1] thele shall be in force a gencral suspension of trading on tlìe New Yolk Stock

Iixchange, the effect of wlrich on the financial markets of the Ulìited States is such as, inthe leasonable juclgrnent of the Undelwliter, would lnaterially aclvelsely affect flrernarket fol ol market price of the Bonds ol the ability of the Underwriter to enfoÌce

contracts fol the sale of the Bonds; or

(g) a general banking moratolium sl-rall have been cleclared by federal, New York

or California autholities; or

(h) any ploceeding shall be pendir-rg or threatenecl try the Sccurities arrd

Exchange Commission against the Succcssol Agency ol the Forrner Agency; or

(i) adclitional material Íestrictions not irr foÍce as of tl¡c date hereof shaÌl have

been irnposed upon trading in securities genelally by any govelnmental âuthority or Lry

any national securities exchange; or'

O thc New York Stock Exclrange o¡ othel national securities exclratrge, or any

govcrmnental ol legulatory authority, shall irnpose, as to the IJoncls ol obligations of the

generâl character of the l3orrds, any natelial lestrictiolls not noll'in folcc, or inctease

9150331.v2-t6-

materially those now in force, with resPect to the extensiolì of credit by, ol the charge to

the net capital requirements of the Underwriter; or

(k) thele shall exist any event which in the rcasonable opinion of either of the

Undelwfiter that eithcr: (i) rnakes uÌ-ttLue ol illcollect in any rnatetial respect any

staternent or irìfor.mation containeil in the official statement; or' (ii) is not rcflectecf in tlreOfficial Statement but shoulcl be reflected thelein to make tlre staterì1ents alìdinformation contained therein not rnisleacliug in arry rnatelial lesPcct; or

(l) any rating of the Boncls shall have been downgladecl, suspended orwithdrawn by a national rating service or any lating of thc lnsurer sl.rall have been

clowngraded, suspendecl or withdlawn by a national l ating service, which, ir-r thc

Underwriter''s reasonable opirrion, matcrially adversely affects the marketability ormarket price of the Bolìds or thc ability of the Underwriter to erìforce contracts fot'thesale ol the llonc{s.

'10. Contingcttcy of Obligntiotts, The obligatiorrs of the Successor Agency lrereurrder are

subject to the pel folmarìce by the Urrderwriter of its obligatiorrs heleurtdet

11 . Durntiott of lle¡n,eserttntiotts, Wnrnmties, Agrcenents nnd Coz¡an.n:tts. All representations,

warranties, agr.eements and covenants of the Successot' Agency shall renÌailì opelative and ir.r

full fol.ce ar.rcl effect, r.egaldless of any investigations rnacle by or orr behalf of the Underwliter or

tlìe Successol Agency and shall survive tlre Closillg Date.

(a) The Successol Agency wilÌ pay or cause to be paid all reasonable expetrses incident to

thc perfolrnance of its obligations under tl-rìs llonc{ Purchase Agreement, inclucliug, but rrot

lirnited to, execution ancl delivery of the Borrcls, costs of printirrg the Boncls, printing,clistr.ibution arrd delivery of the Prelirninary Official Staterncr-rt, the Oflicial Stâtement and allyarne¡dmcnt or, supplement tìeleto, the fees and clìsbursenrcnts of lloud Counsel, DisclosuteCounsel, and counsel to the Successor Agency, the fees aud expenscs of the Successor Agcncy'saccountants, lees of the Successor Agency's financial aclvisor, fees of the Ì"-iscal Consultant, any

fees chargecl by investnìerìt rating agencies for the rating of the Bonds arrcl fecs of the Trustee. In

tl.ìe event this IJond Purchase Agreement shall terÛrinate because of thc clefault of the

Undelwriter', the Successol Agency will, nevertheless, pay/ or cause to be paid, all of the

expcrrses specified above.

(b) The Underrvritcr shall pay the fees and expenses of auy counsel letailred by it, allaclvertisi¡g cxpenses inculred in connectiorì with the public offering of the llonds, fees of the

California l)ebt and ll.tvestnent Advisor Cornmission, CUSIP fees and all other expenses

incurrecl by it in connection with the public offelirrg alld distlibution of the Bonds (ittcludingout-of-pocket expenses and telated regulatoly expel.rses).

13. Noflces. Any r-totice or other commuuication to be giver.r to the Successol Agencyunder flris ]Jond Purchase Agreernent may be given by cleliveÍirrg the same in wliting to fhe

Executive Director, Successor Agency of the Redevcloprnetrt Agetrcy of the City of l-ake

Elsinore, 130 Soutl-r Main Street, Lake lllsir-role, CA 95965, and any noticc or othercommunicatiorr to be given to the Underwritet undel this Bond Pulchase Agrecment rnay be

9150331.v2-17-

givcn by delivelir.rg the sanre in writing to Stifel, Nicolaus & Company, Incolpolatcd 515 S.

Figueloa Stleet, Suite 1800, Los Ar-rgeles, CA 90071 Attention: John Kirn.

14. Pnrtics itt Interest. This Bond Purclrase Agreement is rnade solely for the benefit of the

Successor Agetrcy and the Unclenvriter (irrcluding the successors or assigns of tl-re Urrderwriter)and ¡o other person, inclucling any purchaser. of the Bonds, shall acquilc or l'rave any rightheleuncler or by virtue hercof.

L5. Gouening,l-az¿r. This Bond Purchase Agreenerìt slrall be govelned by and cottstruecl

in accorda¡ce with the laws of the State of Califolnia applicable to contlacts rnade and

perforrned in California.

1,6. )Jt:ntlitrgs. The headirrgs of the paÍagraphs of this Bond Pulchase Agreement are

irrserted for corrvênience of reference only ancl shall not be deemed to be a part lrereof.

17. Scuernbility. Lr case any one or Íìore of the provisions contained hclein shall for any

reaso¡ be þelcl to be invalid, illegal ol uncnforceable ill arly l espect, such invalidity, illegality or'

urrenforceability slìall not aff€ct any otlrer provision hereof.

18. ll.fþctiucttcss.'l'his Bond Purchase Agreenlent shall become effective upon itsacccptarìce hereof by tl.re Successor Agency.

IRIIMATNDEIì OF PAGII INTENTIONALLY LEFT IIÌ-ANKI

9150331.v218-

-19. Corntarpnrts. This Bond Purchase Agleernent rnay be executecl in sevcral

countcrparts which together shall constitute one and the satne instrurnent.

Very tuly yor.lrs,

STIFEL, NICOI,AUS & COMPANY,INCORPOIìATED, as Underwriter'

Managing Directot'

Accepted arrd agleed to as ofthe date filst above written:

SUCCESSOR AGENCY OF TITEREDEVEì,OPMEN'I' AGENCY OF TI{E CI']'YO]T LAKE EI,SINORE

Executive Dilectot'

By

By

-19-9150331.v2

EXIIIBIT A TO THEBOND PURCHASE AGRIEMENT

$_SUCCESSOR, AGENCY TO TI:IE

REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORESubordinated Tax Allocation Refundirrg Bonds, Series 2015

MATURITY SCIIEDULE

Matulily(September

Principral

AmountInterest

Ral c1) Yield Price

*lìsurcd ûìÂLurities.c Priccd to tlìc 9/1/20-- par call (lâte

9150331 .v2

Exhibit A

2011 LAUNCH ììAMP I'IìOJDCT IìONDS ESCIIOW AGREtrMENT

THìS 201I LAUNCII RAMP PROJIICT BONDS ESCROVr' AGREEMENT, dated as ofAugust 1,2015 (the "Agreenrent"), by aud among thc Sucoessor Agency to the Redcvelopueut

Agency of t¡e City of Lake lllsinore (the "successol Agency"), the Lake Elsinore Public Fiuaucirtg

Autholity (the "Authorily") and MTJFG Union Bank, N.4., actirg in ifs capacity as escrow bank (the

"Escrow Ba k"), and the 2011 'l-ruslee (as defined below) is enteted into in acco¡dattce with an

Indenlule of Tfust, dated as of Jatruary I , 201 I (the "201 1 Launch Iì amp Project lndenture"), by and

l¡etween the Authority and MUFG Unìon llank, N.4.. fbrmelly kuown as Union Ballk, N.A. (tlte,,201I l-rustee"). to refund all of the outstanding 2011 l.,aunch Ranp Pro-ject Bonds (as defined

below).

WIl'NESSEl'H:

WlllllìEAS, tlie Autholity has pleviously issued its $5,550,000 initial agglegatl3 plincipal

amou¡t Lake Elsinole Public Financing .A.uthorily Tax Allocation Revcnue lJonds (Launch lìanlpPloject).2011 Series,4 (the "2011 Launch Ranip Plo.lect Borrds")l and

WIIIìREAS, on June 28. 2011" the Clalifolnia Legislatur-e adoptcd Alìxl 26 (the "Dissolulion

Act") and ABxl 21 (tlie "Oplin Bill"); and

V/llllRE^S. the California Suprelre Court subsequently upheld the provisions of thc

Dissolution Act and invalidated the Opt-in Bill resùltiug in the Redevelopnrent Agency ofthe Cily ofI.,ake Elsinore (lhe "Former Agency") beilg dissolved as o1Þ-ebruary 1' 2012; and

V/IJEIìEAS, the powers, assets alìd obligations of the Former Agency were ltansferred on

February l. 2012 to the Successor Agency; and

WIJIIREAS. on or about JLJte 27.2012, ,481484 was adopted as a t|aile| bill in conllection

with the 2012-l 3 Calilornia Btrdget; and

Vi/llEREAS, 481484 specifically authorizes the issuance of refirnding bonds by the

Successor Agency 1o refund oulstanding bonds fbr the purpose of I educiug debt service: aud

WìlllRE^.S. the SuccessoL Agellcy ptllsuant to a Iesolution adopted by the Successor

Ageucy on May 12, 2015, determined that it is in the Successor Agency's best ilìterest to issue the

Dollars (fì Successor Agency to the Redeveloptneut

Agency olthe city ol Lake lilsinore Subor.dinated Tax Allocation Relunding Bonds, Selies 2015

"2015 Bonds") pursuant to an IÍìdetttule of'l-rust, dated as ofAugust l, 2015, by and bctween(thetlie

Successor Agency and MUFG Uniol l]ank, N.Â.. as tntstee (the "Trustee"), and together wilhcel.tai¡ other nro¡ey deposited by thc Successol Agency, proceeds of the 2015 llonds will be used to

provide the fuuds to pay all regularly soheduled pâyu]ents of principal and itrterest. as they acctue,

through and including Septembel l. 2016 and 1o pay all principal and acclued intelesl on thc 201 1

Launch Ramp Pr.oject Bonds maturing on or after Septcnlre r' 1 , 2011 ot't September I, 2016 (tlìe"Redemplion Plice"): and

V/lìERllAS, by irrevocably depositiug with the Ilscrow Bank tnoueys (as pefmitled by, in the

nranner prescribed by, and all in accordance with the 2011 Lauuch Ramp Pr-ojecl Indentulc), which

rno¡eys will be used fo pulchase securilies sat¡slying the clitelia set forth in Seclioll 9.03 ofthe 201 I

l)0CSOC/l 704353v3/200590-0001

Lau¡oh Ramp Ploject Indentule as described on SchecluleA hereto (the "Federal Sectlilies"),pr.ovided the plincipal oiand the interesl ou tlic Fedetal Seculitìes when paid will provide ntoney,

which ntoneys. together with tlre nroneys deposited with the llsclow Bank at the sanìe tiÍìre prìrsttânt

to this Agreenretrl. wilì l¡c fully suflìcient to pay and discharge the 201 I Launch Ramp Project

Bouds l

NOW 1-l ìEIìIìFORE, in considelation of the lnutual covellalìts and agreetueuls hcrein

contained. the Successor Agency aud the Escrow Batlk agtcc as follows:

SECTION 1. Deþosif of Moneys. The Successor Agency hefeby i structs the 20ll Trustee

to tlârsfer $_ from the [ReseNe Accounl] r¡aintained pursuant to the 2011 l-aunch Ratnp

Project Indentur,e. The Successor Agency her.eby iustlucls the Escrow Banli to deposit

(i) leceived fronr the Trustee fiom a portion ofthe r'ìet ptoceeds ofthe salc ofthe 2015

Bonds ancl (ii) $__ transfencd by the 20ll 'l't-ustee lìom finds attd âccoulìts held wilhlespecl to the 201I Launch Ramp Projcct llonds, into the Esclow Fund established hereunder. 'lhe

Esclow Banh shall hold all such atnounts il ir-r'evocable escrow sepalate ard apât t froln other ftluds

ofthe Succcssor. Agency and the Escrow Bark in a fund hereby created and established 10 be knÕwlt

as the "Escrow Fund" and to be applied solely as llrovided in this Agreernellt The Successol'

Agency heleby instlucts the Escrow Bank to apply $--- of the moneys set follh above to

pulchase the Fcdelal Seculities listed in Schcdule A lreleto and 10 hold $- uninvested as

cash.

SBCTION 2. Investureut of Monevs. The Escrow Ilalk acknowledgcs receipt of 1lìr:

moncys desct ibed ill Section I and agrees irnnrediatel¡' 10 illvest such motleys in the Þ-edelal

Securities listed on Schedule A herefo and to deposit such Federal Securities ill the Esctow Fund.

The Escrow Bank shall be enlitled to rely upon the conclusion of Causey. Derngeu & Moore P.C.,

Denver, Colorado (the "Verification Agent"), that the Fedelal Securities listed on Schedule A hereto

ntature and bear inlerest payable in sucli amounts and a1 sucll tilïes as. togelller with cash on deposil

in the Escrow Fund. will be sulficieut to pay when due rvith lespect 10 llre 201I Launch Ratnp

Ploject Bonds, all Redemption PI icc, as shown oll Schedulc B attached heleto

S|ìCTION 3. Investnrent of Any Remaining Monevs. At llie written dircction of the

Successor Agency, the Escrow Bauh shall reinvest any olhel atnount of pliucipal and intercst, or aÍìy

portio¡ thereof, received from the Federal Seculities prior to tlte date on which sttch paymenl is

required for the pulposes set Îoíh hcrein, in noncallable Fedcral Secutities lnaturittg not latel than

ihe datc ou which such paytnent or portion thereof is reqLrired for the pulposes sef forth ill Section 5,

at the written dilection of the Successor Agency, as verified in a report plepared by an iude¡tettdeul

certified public accouulant or finn of certified public âccouÍìtants of lavotable uafional rcputatiotl

experienced in tlre lefunding of obligations ol polilical strbdivisions to the effect that the

reilìvestrnent described in said leport wìll not adversely afïect llie suffìciency of the antounts ofsecurities, illvestutents and money in lhc Escrow Fund fo pay when due all lìedemption PIicewithrespect to the 201 I l-aunch Ramp Pro.iect Bonds.

SECTION 4. Substitution of Securities. Upon 1he wlitten roquest ofthe Successor Agency,

and subjecl to the conditions and limilations herein sct lolth and applicable govetntletttal tules and

regulalions, the Ilscrow Bank shall sell, redeern ol othetwise dispose of the Federal Secutities,

plovided that there are substituted therefol fiorr thc proceeds ofthe F'edelal Seculilies other Federâl

Securities, but only a11er the Successol Agency has obtained and delivered tô the Ilscrow Bânk a

r.epor.l by a film o1 independent certified pLrblic accountânts to the effect tllat tlte reil'lvestrrtelll

?DOCSOC/l 704353v3/200590-000 I

described in said lepolt will not advelsely affèct the suflìcìcncy of the amounls of seculilics,iuvestrìrents and nroney in the Escrow Fund to pay when due, all Redenrption Price with respect to

the 2011 Launcli Iìamp Ploject Bonds. 't'he Escrow Bank shall not be Iiablc or lesponsible f'or any

loss resulting lrorr any reiÍìvestlrent made pursuant to this Agleemclìt and in full contpliauce withllre provisions hcreol.

SECTION 5. Payment of2011 Launch Rarnp Proiect llonds.

(a) Pavtnent. From the lraturìng principal of the Federal Securities and fheiuveslÌnent iucome and othel ealnings thcleon and othcl nroneys on deposit iu the Escrow Fuud, the

Iìsclow Bank shall apply the arnouÍìts on deposit in the ltsctow lìund to pay wheu due, allRedetnption PI ice with lespect to tlìe 201 1 Laullch Ramp Projcct l3onds.

(b) Inevocable Inslr'uctions to Plovidc Notice. 'l'Ìle lbrnls of the uotice tequired

tobemailedpursuâlìtloSections2.02(e)and9.03ofthe2011LaunchRaltpProjectIndenlulearesubstantiaÌly in the fonns altached hereto âs Exhibìts A and B. Thc Agency hereby ilrevocablyilìstlucls the llsctow Bank 1o urail a notice of pÌepâyn'ìeÍìt aud a notice of deieasance of the 201 I

Launch Ramp Pro.iect Bonds in accordance with Sections 2.02(e) and 9.03, respcctively, ofthe 2011

Launch Rarnp Pt'o.ject Indentulc, as requiled to provide f'or'1he prepayment ofthe 2011 l-aulch RampPloject Bonds in accordance with this Section 5.

(c) Unclairned Mouevs. A.ny moneys which rel¡ain unclaimed for two yeats

after September' I , 201 6 shall be lepaid by the Escrow Bank 1o the Successot Agettcy.

(d) Priority of Pay:nents. The owrtels of the 201 l Lattnch Ramp Pro.iect llondsshall have a first and exclusive lien on all moneys ard securities in thc Escrow Fund until such

moneys and such securities are used and applied as provided itt this Agreemeut.

(e) 'l-erminalion of Oblip.ation. As plovided in the 201I Launch Rarrp Projectlndeutule. upon deposit of moneys wilh the Escrow Bank in the Esclow Fund as set lolth in

Section I hereofand the purchase ofthe various Federal Securities as plovided in Scctiou 2 hcreof,

the ownels of thc 201 I l,aunch Ramp Project Bonds shall cease to be elltitled to the pledge of and

lien on the Revelues as plovided in the 20ll Launch Ranrp Projecl lndenture. arrd all agreeurents

alìd coveuânts ofthc Authority âud llle Trusfee under the 201 I l-aunch Ramp Project Iudentule shallceâse, tenninate and become void and shall be dischalged and salisfied, cxcept as set lorth in the

201 I Launch Ramp Project Indentule.

SECTION 6. furulication of Certain Tems of the 201 I Launch Ramp Proiect Iudenture.

All of the tenns of fhe 201 I Launch Rarnp Ploject Iudenture telating to the making of paytnents ofplincipal and interest with lespect to the 2011 Launch lìarrp Ptoiect Bonds aud lelating to the

exchange ol lransfcl ofthe 201 I l-aunch Raurp Ploject Bonds ale incotpotated in this Agteetnent as

if set forth in full lielein. 'fhe plocedurcs set l'orth irl Sectiolls 6.06, 6.07 alld 6.09 of the 2011

Launch ììanrp Projecl Indenture relatiug to thè removal, rcsigration aud tnerger ofthe 201 I Trustee

under the 201 I l,aunch Ramp Pro.ject ìnder]ture ale also iucorpotated irr this Agreemenl as if sel follliin lull herein antJ shall be the procedu|es 1o be fòllowed with respect to any removal. resignation ot'

mergcr ol1he llsclow Bank Ìrereunder'.

I)O(lSOCl/l 704353v3/200590-000 I

SECTION 7. Perlonlalrce of Duties. The lÌsclow Bank agrees to pet folm only tÌre dulies

set forth lrerein and shall have no responsibìli1y to take auy action or omit to take ally actiolì not set

forlh heleìn.

SBCIION 8. Escrow Bank's Âuthol ity 1o Mahe Illve sttnenls Except as provided inSect¡olls 2, 3. 4, and 5 lìl3reÕÎ, the Escrow Bank shall have uo power or duty to iuvest auy funds held

undel. this Agreerlenl or to sell, 1r'ausfer or othelwise dispose of the lnoneys or Federal Securities

he ld heleundcr.

SECTION 9. Indenlnilf. The Successor Agency hereby assumes liability 1or. and heleby

agrces (w¡ether ot not any oithe tlansactions contemplated hereby ate consumtnated) to indemnify.

protect. save and hcep halmless fhe Esclow Bank and its respective sucoessors, assigns. agents.

e¡rployees and servants. from and against any and all liabilities, obligations. losses, daurages.

pe¡altics. olairrs, actìor.rs, suits, costs. expcnses and disbursemcnts (including reasouable lcgal fees

ancl disburser¡ents) of whatsoever kind and nalure which may be irrposcd on, incutted by, or

asser.ted against, the Escrow Bank at alry time (whethcr ol not also inderrnified agaiust the same by

the Successor Agency ol any othel person unclet any other agreelìlenl ol instrultlent. but without

double indeurnity) in any way relating to ol arisi g out of the execution, delivery and peLfotuancc ofthis Agreerncnt, tlle establishment hereunder ofthe Escrow lìund. the aoceptallcc of the funds and

sccurities depositecl therein, the retelìtion ol1he proceeds llreleof and any pâylrellt, tlansfel ol olhcr

application of moneys or seculities by tlre Esclow Ilank in accordallce with the provìsions of this

Agr.cement; pr.oviclecl, however. that the Successor Agency sltall not be required to indemnily the

Escl.ow Bank against the Esclow Bank's own negligeuce or willlil misconduct ot the ucgligence or

willf¡l misconduct of tlìe Escrow l3ank's respective employees or the u'illful breach by the llsctowBâlìk of the teltns of this Âgleenent. Iu uo event shall the Successor Agettcy ot the Escrow Bank be

Iiable to any person by reasoÍì ofthe lralìsactions contemplated heteby olhef than to each other as set

folth in this Section. 'lhe iltdeurlities contained in this Section shall suruive the telniinalion oflhisAgleement and the tcsigtratiott or removal ofthe Escrow Bank

SECTION 10. Responsibilities of Escrow Bank. The Escrow l]ank and i1s agents arrd

ser.va¡ts s|all not be held to auy personal liability whatsoevel, ¡n tolt, colltlact. or otherwise, in

con¡ection with the execution and delivery of this Agreement, thc establishmettt ofthe Escrow Fund.

the acceptarce ofthe rnoreys ol securities deposiled therein, the tetentiott of tlic Federal Securities or

tl.ìe p¡oceeds thereol. thc sulficiency ofthe Federal Seculities to pay the 201I Launch Rarrp Plo-iect

Bouds or any pâyment, transfer or other application ofnroneys or obligalions by the liisclow Bank in

accordance with the provisious of this Agreement or by reason of any nou-uegligellt act,

¡o¡-negiigent orlission ol non-negligent erlor of tlre Escrow Bank lnade in good faith in the conduct

of its duties. The lecitals of fact contained iu the "Whereas" clauses hetein shall be taken as thc

staternelì1s of tlre Successor Agency, and the lìscrow Batlk assulles no lesponsibility for the

co¡rcctlìess ihereof. 'flte Escrow Bank rnakes no leplesentation as 1o the sufliciency ofthe ploceeds

1o accorrplish the relinding of tlìe 201f I-aunch lìanp Plo.ject Bonds or to the validity of this

Agreelnel'ìt as to tlre Agency and, exccpt as olherwise plovidecl helein. the Ilscrow Balrk shall incur

no liability in respect thereof. The Escrow Bank shall not be liable in coutlection with the

pe¡foma¡ce of its duties under this Agreenìeut except I'or its own tregligence, willlul misconclucl ol'

¿efault. and the duties and obligalions ol'the Escrow llank shall be deterllrined by thc express

pl-ovisions of this Agleement. The Escrow Iìank may constìlt witlì cottnsel. who tray or tnay uot be

counsel to the Successor Agency, and in reliance upou the writtelì opinion of such counsel shall have

lull and complete authorizatiou and plotection in respect of any aclion tahen, sufeled or onlitled by

it in good faith in accordance therewith. Wheneve¡ the Escrow Banh shall deetl it necessary ot'

4DOCSOC/l 704353v3/200590-000 I

desirable thal a nlatter be proved ot established prior'1o laking, sufleling. ot ouriltillg atty âctiort

under this Aglecme t, such matler nray be deenred to be conclusìvely established by a certificate

signed by au olficel olthe Successot' Agency,

No p¡ovision of this Âgleemeul shall requile the Ëscrow Bank 1o expend or risk its owtl

fuuds or otherwise iucur any financial liability il tJre perfolnrance or exetcise of any of its dutics

heleunder', or in the exercise of its lights ot powers.

Ifthe lìscrow Bank Iealns that the Deparhlent oflhe 'l'reasuty ot the lSureau of Public Dcbt

will no1, lor aly reâsou, accept a sùbscriptiou ofFedelal Seculities that is to be subnlittcd pursuaÍì1 to

thìs Agr,eernent, the Escrow Bank shall prorlplly request allenìative wlilteu investnìeÍìt iltstructiorìs

from the Successol. Agency with respcct 10 escrowed funds which wcte to be invcsted in

sec¡rities, The Esc¡ow Bank shall follow such iustructions and, upon 1he nraturity of auy such

alternative i¡veslrrcnt, the Escrorv Ilank shall hold funds uninvested and without lìabilily fol intelest

unlil r.eceipl of îu|thcr writtetl instruct¡ons froln the Succcssot Agency. In the abscnce of investtnellt

inslructìotìs fr.om the Successol Agency, the Esclow Ballk shall ttol bc responsible for the illvestÍì'ìellt

of such lunds or i¡lercst theleon. The Escrow Ilauk tnay couclusively tely upon the Successot'

Agency's selection of an altel nalivc iuveslrnent as a detertninatioÍì of the allerllâtive illvesûìlen1's

legalily and suilability and shall not be liable for auy losses related to tlre altetuative ilìvestnlelìts or

for conrpliance with any yield restrictiotr applicable thereto.

The llscrow Ba¡k shall have the riglit to accept and act upor'ì ittsttuctiotts, including funds

tlansfel instructiors ("lr'ìstructions") given pulsuant to this Agreeureut and deliveled using ElecttolicMeans ("Electronic Means" shall nrean the following conì I'ntì l'r ications tnethods: e-urail, Îacsitrilehansnrissio¡, secure electrouic transmission contain¡ng applicable authorization codes, passwotds

and/or authentication keys issued by the Escrow Bank, or another metlrod or system specified by the

Escrow Bank as available for use in connectioll with i1s services heteundcr): provided' howevet, that

llle Successol Agcncy shall provide 1o the Esclow Bank an iucuurbellcy certificate listing officers

wit¡ the authority to plovide such Instluctions ("Authorized Officels") aud contaiuing specinren

signatures of such Aulhorized Officers, which incumbency certificâfe shall be arnendcd by the

Successol Agency rvhenevel a persotr is to be added or deleted tom the listing. ì1 fhe Successot

Agency elects to give the Esclow llank ll'ìstructions using lJlecttoric Means and the Escrow Balk in

its discrction elects to act upol'ì sucll Instructions. the llscrow Bank's uudelstaltding of such

lnstructions shall be dcenred controlling. The Successol Agency understâtlds aud agrees that tlte

Escrow Ilank cannot cleler'¡rinc the idelltity of the actual sendet of such Instrtlctions âlld that the

Escrow Bank shall conclusively presunle that direclions that ptrlport to have been sent by an

Authorized Officer listed ou the iucumbency ccrtificate plovìded fo the Esolow Bank have been senl

by suclr Authorized Olficer'. The Successor Agency shall be responsible 1'or eusuriug that only

Autholized Officels tlansmit such lnstructions to tlÌe Escrow IJank and that the Succcssot Ageucy

and all A¡thorized Olficers ale solely responsible to safeguard the use aud conficlentiality oiapplicable user and authorization codes, passwords ald/or authentication keys ttpon receipt by the

Succcssor Agency. l-he Escrow Bank shall not be liable fot any losses, costs or expenscs arising

<iirectly or intlifectly from the Bscrow Bank's reliance upon and compliauce with such Illstructiorìs

lìolwithstanding such directions conflict ol ale irlcol]sistent with a subsequent written

instuctior, 'l-he Successol' Agency aglecs: (i) to assuure all risks arising out oftbe use of Elcctronic

Meaus to subtnit Ilìstltotiol'ìs to the Escrow lìank. including without linlitation the risk ofthe Escrow

l3ank acti¡g on unauthorized lnstrucfions, and the rish ofintelccption aud misuse by tltird parties; (ii)thât it is fully informed oi the plotections and risks associated wilh the valious methods oftl âÍìst'ìlitting ltlstructions to the Escrow Batlk atld that there nray be more secute methods of

5

l)O('SOal/1 ?04353v3/200590-000 I

tr.a¡smitting Irsttuctions thau the method(s) selectcd by the Successor Agency; (iii) that the seculitypr.ocedures (ifany) to bc lollowed in connection witb its transtnission oflnsttuctions provide to i1 a

commercially reasouâble deglee of protecfion in light of its palticular tteeds alld citcumstances; attd

(iv) to notify the ìjsclow Bank imrrediately upon learnilìg of any conrpromise or ullauthorized use ofthe security procedures.

l'he Escrow Bank shall lulnish the Successol Agency periodic cash tt'ansactiou statelucÍìts

which incl¡cle detail lor all investment transâctioÍìs effected by the ìiscrow Bank ol brokers selected

by the Successor Agcncy. Upon the Successol Agency's election. suclr statentents will be delivered

via the Escrow Bank's otline selvice and upon electing such service, paper statenients will be

provided only upou tequcst. 'l'he Successot Agcucy waives the right 1o receive broker-age

co¡firmations of seculity transâctions elfccted by fhc Escrow Bank as they otclìr. fo the extenlpermilled by law. 'l'he Successol Agency further undelstands that 1Ìade conlìrmâtiolls for securifies

ir.atìsactions effected by the Escrow Ba¡k will be available upor'ì request ând at uo additional cost and

othel trade confir'nrations nray be obtailted flom the applicable bloker.

Any contpany iuto which the Escrow Banh nray bc merged oÍ corìvcrted ol with u4rich it may

be consolidated or auy col't'ìpâuy lesulling fi'onr any melgcr. convetsion or consolidatiolt to which itshall be a pâl.ty ol any compatly to u4ich the Escrow Bank may sell or llattsfel all ol substantially all

of its corpolale trust business shall be the successor to 1l'ìe Esclow Bank without the executiou ot'

filing ofany paper or ftttther ac1. anything lterein to the cotltl'aly notwithstanding.

SEC'|ION I l. Amendnrents. 'l'lr is Agleemenl is rnade fol the benefit of lhe Successor

Agency and the owners from lime to tilne of'the 201 1 l-auuch Ramp Pfo.iect Bouds and it shall nol be

r.epealed, t.evoked, altered ol aurended wilhout the writlelì cor'ìsent oI all st¡ch owlìels. tl'ìe Esclo\v

Ba¡k and the Successor Agency; provided. however, thaf the Successor Ageucy and the IlsctowBa¡k ¡ray, wilhoul tlìe coltselll of or notice to, such owners, amerd tlris Agreement or enter into

such agteemcnts supplelnental to lbis Agreernent as shall no1 adversely allect the rigltts of such

owners and as shall not bc inco¡rsistent with the telnrs and provisions of tltis Agreeurcut or the 201I

I-aunch Ramp Project l dentufe, for auy ol'ìe or mote of fhe following purposes: (i)to cule any

ambiguity or lormal defect or omission in tlris Ag|eement; (ii) to grâllt to, or cottfet upon. the Escrow

Banh for the beuefit of'the owners of the 2011 Launch Ramp Project Bonds. any additional rights^

¡elredies, powets ol autholily that may lawfully be glallted to, or conferled upon, such owncrs or the

Escrow Bank; and (iii) to iuclude undel lhis Agreenrent additioual funds. The Ilsctow Bartk sllall be

cntitle¿ to rely conclusively upon an unquali{ìed opinion ol'S1r'adling Yocca Catlson & IìaLrth, ,A

Professional Colporation. witlì lespect to compliance with thìs Section 11, including the extent. iÎany, to which any clrange. modification, addition ol elimination aflècts tlre rights of'the otl'ncrs olthevarious 201I Laultch Ramp Ploject llonds or that aÍìy instrulnellt executed hereunder conlplies withthe conditiolts and provisions of this Sectiou 11. ln the evcnt ofany colìflict with tespect to thc

plovisions of this Aglecment. tltis Agreement shall prevaiÌ and tre binding.

SECTION 12. fNotice to Standald & Pool's, Thc Successol Agelcy agtees to provide

standal.d & Poor's, a Division ol the McGraw-lìill companies, 55 water stfeet. 45th Floor. NcwYor.k, New Yolk 10041, prior Íìotice ol'each anrendurer]l entcred into pul'suant 1o Seclion I I heleofand a copy ofsuch proposed amcndnettt. altd to forwatd a copy (as soon as possible) of (i)each

anre¡cltnent hereto c¡¡tered il]to pursuant to Seclion I I hcreol, and (ii) arry action relatillg to

sevelability ol contenrplaled by Scction l5 hereof.l

6

DOCS0C/1 704353v3/200590-0001

SIICTION 13. ì-e|nt. This Agreernent shall comnrcnce upon i1s executiou and delively and

shall terminate on the latel to occul ofeither: (i) the date upon wbich lhe 201 I Launch Rarnp Plo.iect

Bon{s have been paid in accordancc u,ith this Agreemeutl or (ii) thc dale upon which no unclailrred

lnoneys remain olì deposit with the Escrow Bank pursuaut to Section 5(c) of lltis Agreemenf.

SECTION 14. Compensation. The Escrow Banli shall rcceive its reasouable fees and

expenses as previously agreed to by tlio lìsclo\4'Banl< and lhe Successot Agency and any olher

reasonable fecs and expenscs of the Escrow Bank apltroved by the Successor Agency: pfovided.

however, tþat unde¡ no circuntstances shall the Escrow Bank be enlitled to any lieu ot assetf any Iietl

whatsoever on auy tììoneys ol obligations in the Ðscrow Fund for the pâyt'ììeÍìt of fèes and expenses

îor services tendered or experrses incurred by the lJsct-ow Bank under this Agleemcnt.

SECI-ION 15. Sevelabilitv. lfany onc ol nrore ol1he coverìants oÌ agrcements pfovided in

tltis Agreement on tlìe part of the Successor Agency or' the Esclow llank to be pcrfortled shotlld be

delerntined by a court of corr¡retent jur isdiction to be conttary to law, suclì covenants ol agleeÍì'ìents

shall be null and void and shall bc deemed separate fiorr llre remairriug covenâÍìts and agreel'ì]eÍìts

he¡ei¡ contained and shall in no way aflect the validity of thc reuraining provisions ol'thisAgleement.

SECl'lON 16. Cout]terparts. 'l'his Agrecment nray be executed in sevelal coutrtetpatts. all ol'

a¡y of which shall be regarded fol all purposes as an original bu1 all of which shall coustitute and be

but one and llrc sarììc ¡nsltt¡rìcrll.

SECTION 17. Goveruing Law. This Agreement shall be constlued uudel lhe laws of the

State of Califoruia.

SEC]'ÌON 18. Iìolidavs. Ilthe dâ1e fol rnaking any paymer'ìt or tlle last date fot perfornrance

of a¡y âct or the exercisiltg of any right, as plovided in this Agreement. shall be a legal hoJiday ol a

day on which banking institutions in tlre city in which is located the principal office ofthe Bsclow

Baltk are authorized by law to rernain closed, such paynrenl tray be made or ac1 perfol lÌed ol rigl'ìt

exercised orl tl'ìe next succeedirg day not a legal holiday or a day ou wliich such banking institLrtions

are authot ized by law to rcmain closed, with the same force and effect as ifdone on the nominal date

pr.ovicled in this Agreement, and r1o interest shall accrue for the period ltom and aller such nonrinal

date.

SECTION 19. Assignlneut, This Agreernent shall uot be assigned by tlte Escrow Bank or

any successor thereto without the pt ior writtel conseÍìt ofthe Successor Agency.

SECTION 20. Reorganizatiou of Ilsclow Bank. Nolwithstandiug anything to tlìe colìflary

containe{ iu fl'ìis Agreerìreut! alìy cornpally inlo which fhe Escrow Bank may be tnetged or conve¡ted

ol.rvith which if may be consolidated or any compauy resultiug frotn aÍìy mergel, conversion oL

consolidation to whioh the Escrow Bank is a palty, of any company 1o wliich the Esclow Bank may

sell ol. tlaltsfer all or substantially all of its corporate trust busiÍìess shall be the successor to tlìeEscrow Bank without execufiotr or. liling ofany paper or auy påper or fÙtthet act, ilsuch company is

eligiblc lo selvc as I.sctow Brnli.

SECTìON 21. Insufficient Funds. lfat any tilne tlìe Esclow Bank has actual knowledge thât

tlre ¡oneys and investments in the Escrow Fund, including the anticipated proceeds ofand earttings

thereon. will no1 be sufficient fo make all payn'ìeuts requited by lhis AgÌeenlerìt, the Lscrow l3auk

7IIOCISOC/l 704353v3/200590-000 I

shall notify the Successol Agency in rvliting, of the anount thereof and the reason thetefor to theextent knowu to it. Tlìo Esclow Bank shall have no tesponsibilily regalding any such deficictrcy.

SIICTION 22. Notice to Escrorv Bank. Successor Asency. Any notice to ot demaud upon

tl'ìe Escrow lìank nray be scrved ol preseÍìted, and such deurand may be urade, at the plincipalcorporate trust ol'fice of the Esclow Bank at 350 Califolnia Slreet, llth Floor, San lrtattcisco,California 94104, Atlention: Corpotate Trust Departmeut; Fax: (415) 273-2492; e-ntail:keith.sevigny@unionbanl<.cotn, with â copy to: AccoLrnlAdn inistratioll-Corpot ate'lrust

@un ionbank,conr. Any notice to or demand upon the Successor Agency or tlte Authorìly shall be

deerned to have been sufficìently givcn or served lor all pulposes by being mailed by registcred orcertified mail. and depositcd, poslâge prepaid. in a post olfice lcltcr box. addressed 10 the Successor

Ageticy at 130 South Mâin Street, Lake Elsinore. California 95965, Attention: ìixecutive Director(or suclì otlìer addless as nray have been filed in wliling by the Successor Agcncy with the EscrowBank).

[ìenrainder ofPage lntentionally Lcfl Biank]

IDO( SOC/l 704353v3/200590-0001

IN V/I]NESS WlII1IìEOF. the pârties hereto have caused this Agreement to be executed by

theil duly authorized olficers and attested as ofthe date first above written

SUCCESSOR AGENCY TO TIjEREDEVELOPMENT AGENCY OF TIIE CI]-YOF LAKE ELSINORE

ByChair

ATTIISTI

Seclelary

L,AKE ELSINORE PUBl,IC FINANCINGAUTI]ORITY

Chair

ATI'EST:

Secretaly

MUFG T]NION BANK, N.A.,as Esclow Bank and 20ll Ttustee

Autholized Officer

s-1l)OCSOC/l 704353v3/200590-000 I

Securil¡t Mnf urity

SCHEDT]LE A

Federal Securities

PrincipalAtlnu l

$

htlerestRúe Price

l)O(ISOC/l 70435:lv3/200590-000 I

Schedu le A-l

SCHEDULE B

Escrow Cash Florv

Tolal Ctslt Receipt

front FerlerdSecurities

Clsh Disbursentenlfrom Escrow Cosh Bnlance

$

Dnte

Begirning Balance:

Tofal

$ $

D(XISOC/l 704-353v3/200590-0m I

Schedr¡le B-l

EXI'IIBIT A

NOTICE OF PREPAYMENT

LAKIì ELSINORI' I'UBLIC FINANCING AUTI-IORITYTax Allocation Ilevenuc Bonds

(Launch Ramp Proie ct), 2011 Sct'ics A

BASE CUSIP NO.

NOTICìi IS llllREBY GIVEN to the ownels of the above-caplioned Lake Elsinore PublicFinancing Autholity 'Iax Allocation Revenue Bonds (Launch Rarrp Ploject).201I Serìes A (the

"201I Launch Ramp Pro.iect Bonds") of the Lake Elsinole Public Finauciug Authorily (the

"Autholity") pursuant to tlle Indenture ofTrust. dated as ofJauualy 1, 201 I (the "201 I Launch Rarnp

Plo.iect Indentule"). by and betweeu llre Authorily ând MUFG Ullioll Bank, N.4.. fòr'merly known as

Union llank, N.,A., as trustee (1he "201I TIustee")" that the 2011 Lauuc)r Ratnp Pro.iect Bonds in the

aggregate principal amount of $_-,__ have been called fot ptepayment on September l, 2016(1lie "Plepayrrent Da1e").

2011 Launch Ranp PI'oject lìonds

CUSrc

Bond PnyntenlDúe

(Septemhar 1) Rale A tltoutrl Price

'ì-he 201I Launch Ranrp Project Bonds will be payable on the Prepaynrent Date at â

prcpayrnerìt price ol' 100% of the plincipal amount plus acclucd i¡rterest 1o such date (the

"Prepaytnenl Price"). Subject to pr-ior rescission as teferenced below. the PÌepayment Price of the

201I Launch Ranip Pro.jecl Bonds will beco¡re due and payable on the Prepaytncut Date. InteÌes1

with rcspect to the 201I Launclr Ranrp Ploject Bonds to be plepaid will cease to âccrue on and aflerthe Prepaymelt Date, and such 2011 Launch Ranrp Project Bonds will be sultendered to the 20l l'lì us1ee.

All Certificates ale required to be surrendered to the plincipal corporate office of the 2008"frustee. on thc Prepaymenl Datc at the lòllowing location. If the Certificates arc urailed, the use Õf

legisleled, insured mail is recommended:

B.t' I'Imd:

MUFG Union llank- N.A.Corporate Trust Services

120 South San Podro SlreeL

suiro 410l-os Angeles, CA 90012

B), Regislerc¡l or CerliJied Mtil:

MUFG Ur)ion Bank, N.A.Cotporate Trust Services

120 South San Pedro StreetSuile 410

Los ,Angeles, CA 90012

ßJt A¡r Coutier:

MUFG Uuion Bank, N.A.Corporatc Trust Services

120 Soufh San Pedro Stlectsuite 410

Los Angeles, CA 90012

llxhibil A-lDOCSOC/l 704353v3/200590-000 I

lf the Owner,of any 201 I Launch lìarnp Plo.ject Bond subject to optional ptepayment fails to

deliver such 2011 Launch Ramp Ploject Bond to the 201I Trustee ou the Prepayment Date. srrch

201 I Launch lìantp Project Bond shall neveltheless be deenred pfepaid on tl]c Prepaylnellt Date and

the Owner.of such 201 I Launch Rarìp Pro.jecl Bond shall have no rights in fcspect thereof except to

receive payment oflhc Prepaynicnt Prioe fiorn funds held by the 2011 Truslee lol such payntent.

A fornr W-9 lnusl be sublÌìitted with the 201 I Launcli Rarnp Pfo ject Bonds. Failure to

provide a completed fonn W-9 rvill result in 3l% backup withholding pùrsuant to the Interest and

Dividend Tax Contpliance Ac1 of 1983. (Jnder the Jobs and Growtlr Tax lìelief Reconcilìation Act

of 2003"28% will be withheld ilthe tax identilicatiorl number is no1 ploperly certified

MUFG tjnion Bank, N.4.. as'l'ruslee

DAl'llD this _ day o1---, 2016.

DOCSOC/ I 704 353v3/200590-000 I

Ilx hibit A-2

EXI{IBIT B

NOTICE OF DEFEÂ.SANCE

I,AKD ELSINORE PUIILIC FINANCING AUTHORITYTax Allocation Rcvcnuc Iìonds

(Launch Ramp Projecl), 2011 Series A

BASI; CUSIP NO

NOTICB lS IIEREBY GIVEN to lhe owneLs oî the âbove-captioned Lake Elsinole Public

Financil]g Authorily 'l'ax Allocatiolì Revenue Bonds (Launch Rarnp PÌo.¡ect).201I Selies A (1he

"2011 Launch Ramp Ptojecl Boncls") of the Lake Elsinore Public Firrancing Authority (the,,Authority,,), lhat thc Successor. Agency to the lìedevelopntent Ageucy of the Cily of Lake Elsinore

lras depositecl with MUF'G Union Banh. N.4.. folurer'ly known as Uniott Bank, N.Ä.. as tltrstee (the

"201I 'l'rustee") uoclel the Tlust Agleel]]ent, dated as ofJanuary I.2011 (the "201I Launch Ranlp

Pro.iecl Indcnture"), by aud l¡elween the Authority and the 201 I 'l'rustee. cash and Iìederal Secut ities

(as defined in the 201 I Launch Ranrp Ploject Indenlule) sufficiert to pay witli respect to the 201 I

Lautch Ramp P¡o.ject Bonds, all regularly scheduled paynleuts of principal aud itttetest thtottgh and

including september 1,2016 and to pay on september 1,2017 the principal maturing on and after

Scptember I , 201 6, plus intel est with rcspect tlìereto âccrued 10 stlch date. without prenr iunt.

The 201 1 Lautrch Ratnp Ploject Bonds to be deleased are as follows:

CUSlP

ßond P(!mentDde

(Sepleml;er I) Rúe Amounl Price

lr accoldarce with the 201 I Launch lìamp Proiect Iudenture, the 201 I Laullch lìanrp PIo.ject

Bo¡ds are cleelned to have beeu paid in accordance with Seclion 9.03 thereof and the otrligations ofthe Autliority undet tlìe 2011 Launch Ramp Ploject lndcntute shall theteupon ceâse, telÍl'ìiÍìate ând

become void and bc discharged ancl satisfied.

MUFC UNION BANK, N.^.. as Tlustee

DA'llED this day of August. 201 5

DOCSOC/1 704353v3/200590-000 I

Ilxh ibìt Il- 1

2011 SUMMERLY PROJECT IIONDS ESCROW AGRDEMENT

Tllls 201I SUMMIIIILY PROJìiCT BONDS ESCIìOW AGREEMENT, dated as ofAugust l. 2015 (the ,.Agrecnrent,,). by and among the Successor Agellcy to 1he Redeveloprnent

Agency of the Cily of Lake Elsinore (1he "Sr¡ccessor Agency"), the l.ake Elsitlore Public Finaucing

Author.ity (1he "Authority") and MUFG union Bank. N.4., acting in its capacity as esclow bank (tlte

"Escrow lìank"), alìd the 2011 Trustee (as defined below) is enteted into in accorclattce with an

Indenture 01 'll.ust. dated as of June 1,2011 (lhe "201 I Suntnrerjy Proiect hrdenture"), by and

betwecn the Aulholity and MUFG Union Bauk, N.A.., folrnerly known as Union Bank, N.A (1he,,2011 Trustce"). 1o l.efund all ol1he outstauding 2011 Summcrly Ploject Bonds (as defined bclow).

V/I'fNESSETII:

WIIEREAS, ihe Authority has previously issued its $5,365.000 initial agglegate principal

arnounl Lake Elsinore Public F-inancing AÙlhority Local Agency Revenue Ilonds (Summelly

Pro.iect).201 I Series A (1he "2011 Summerly Projcct Bonds"); ancl

WIIERtiAS, on June 28,201l, the Califolnia Legislatule adopted ABxl 26 (the "Dissoltrtion

Act") and ABxl 77 (the "Opt-in Ilill")r attd

V/llEREAS, the Califolnia Suprerne Cou[t subsequenlly upheld the plovisions of tlteDissolLltiou Act and invalidated the Opt-in Bill rcsulting in the lìedevelopmelt Agency of the City ofl,ake Elsinorc (the "Fornier Agelcy") beìng dissolved as of Februaty 1' 2012. and

Vi/l IEREAS. the powers, assets atd obligations of the l"ormer Agency were ttansferled on

Feblualy 1,2012to the Succcssor Agency: atld

Vi/llEREAS. ou or about |une27.2012, ABl484 was adopted as a trailer bill in cottucction

with the 2012-13 California Budget; and

V/HEIìEÄS, 481484 specifically autholizes the issuaucc of lelìndirrg bonds by the

Successof Agency to lcfund oLttstanding bonds fol the purpose ofreducing debt service; and

V/llERIlAS, fhc Successol' Agetrcy pursuant to a lesolution adopted by the Successor

Agency orr May 12,2015, deterrrined that it is in the Successor Agency's best illterest to issue the

DollaLs ($ ) Successol Agency 1o the Redevelopment

Age¡cy of thc Cily of Lake Elsinole Subordinated Tâx Allocâtion Relunding Ilonds. Selies 201 5 (the.,2015 Bonds,,) pursuanl to an Indeuture of Trust. dated as ofAugust l. 2015. by and betweeu fhe

Successo| Agcncy and MUFG Union Bank, N.4., as tlustee (the "Trustee"). and logether witlr

certain other money deposited [.ry the Successor Agency, ploceeds ofthe 2015 Bonds will be used to

provide the funds to pay all regularly scheduled paynlents oi principal and intetest, as they âccrue,

through and including September 1, 2016 and to pay all principal ard accrued interest on the 201I

Surnrnerly Pr.oject Bonds ntalur.ìng ou or alter Seplenrber 1,2011 ot't September'1, 2016 (the

"Redenrption Plice"); and

WI-IEREAS, by i evocably depositing with the Escrow lìauk utoueys (as perntitted by, in the

man¡er pr,escribed by, and all in accordance with thc 2011 Sutrttnerly Pro.iect Indentule), which

rnoneys will bc used 1o pulchase securities satisfying tl'ìe cliteria set folth in Section 9.03 oithe 201 1

Surrnrerly Project Indentur.e as described on Schedule A heleto (lhe "Fcdelal Seculit¡es"). plovided

DOC SO( / l'7 i46 I 1 v 1 /200590-000 I

to tlânsfer

the principal of and the intelest ou the Federal Seculities wlten paid will plovide uroney, which

moneys, togetl'ìer with the rnoneys deposited with tlie Escrow Banlt at the saute fiure pursuâllt to lhis

Agleenìelì1. will be fully sufficient 10 pay and dischalge the 201 I Sumnicrly Project Bonds:

NOV|/ llf:IEREFORI], in considelatiou ol'the lnutual covcnauts and agrecureuts lteÌein

contained. the Successor Ageucy atrd the ßscrow Ballk agrce as lbllows:

SECTìON l. Deposit of Moneys. The Successol Agency hefeby inslructs the 2011 'frustee

fiom the fReserve Accounll naintained pulsual]t to the 2011 Summerly

Pr.ojcct Indenture. The Successo| Agency hereby instructs the Escrow llank to deposit

(i) $_ received froln the'l-l-ustec frorn â poÍiolì ofthe net proceeds ofthe sale ofthe 2015

Ilonds aud (ii) Íì_ t|ansfeued by tlre 2011 Truslee fiom funds and accoultts held wìth

respect to the 2011 Sunrmelly Plojecl Bonds. into the Bsclow Fnnd established herer¡ndel. The

Escrow Ba¡k shall hold all such amounts iu irrevocable escrow separate atìd apart froln other funds

ol the Successol Agency ancl the Esclow Bank in a lind heleby cleated and established to be known

as the "Escrow F¡nd" and to be applied solely as provìded in this Agreetrelì1. Tlìe Successor

Agency hereby instrrìcts tl'ìe Dsclow Bauk to apply $- of the Inoneys set

purchase llic Federal Seculities listed in Schedule A heleto alld 1o holdlorth above torrrirrvesled as

cash.

SECTTON 2. Investme¡rt of Moneys. The Esclow Ilank acknowledges Ieceipt of the

tro¡eys described in Section I and agrees immediately to invest sttch lroneys in fhe Fedelal

Secul.ities lisled on Schedule A lìereto and to deposit such Fcderal Secutities in the Escrow Fund.'I'he Escrow Bank shall be entitled to rely upon the conclusion o1 causey. Demgen & Moole P.C..

De¡ver, Colorado (the "Verification Agcnt"), thât the Federal Securities listed olt Schedule A heleto

lralùre and bear iÍìtcrest payâble in such aurourts aud at sucl'ì tilÌtes as, together with cash ott deposit

in the lìsclow Fund, will be sufficienl to pay when due with respect to the 2011 Summelly Project

Bonds. all lìedemption Price, as showu on Schedule B attached heleto.

SECTION 3. Investment of Anv Rernainìns Moueys. At the rvritten clirection of thc

Successor Agency. the Escrow Bauk shall reinvest any othel amount of plincipal ald intetest. ot any

portio¡ thereol', ¡eceived from the Þ-edelal Seculitics priol to the date on which such paytnenl is

required f'or the purposes set forlh herein, in noncallable Federal Seculities traturilìg not later than

the date on which such payment ol poltion thereof is required lol the purposes set folth in Section 5,

at tlìe written dilection of tlte Successol Ageucy. as verifled in a teport prepared by an independenl

certilìed p¡blic accouÍìtânt or firrn of celtified public accouutaltts of fävorable national reputalion

exper.ienccd in the refundiug of obligations of politicâl subdivisions to the cffect that the

t.eirvestment clescl ibed in said leport will not adversely affect thc sufficieucy of the auroults ofsecurities, investlreÍìts and rloney in the Escrow FLrnd to pay when due all Redemption Price withrespect to the 201I Sumrnelly Project Bonds.

SECTION 4. Substilution of Securifios. Upolì the written lequest ofthe Succcssor Ageucy,

and subject to the conditions and linììtations helein set lolth and applicable goverumental rules and

regulatioÍìs, the Ilscrorv Bank shall sell. redeerl ol otherwise dispose oI the Federal Seculities.

pr.ovided that there ate substituted therefor fronr the proceeds ofthe Federal Securities other Fedcral

Securities, but only aftcr tlre Successor Agency has obtained and dcliveled 1o the Escrow Bank a

r.cport by a firnr of independent certified public accountants lo the e{Tèct that tlìe rcillvestlllent

describetl in said reporl rvìll no1 adversely affect the sufficiency of re amounts of seculilies,

investtÌìents and ntoltey in the Esclow Fund to pay rvhen due. all Redentption Plicc with resPect 10

2I)oCSO(l/ l704 (r l7v I /2005 90-000I

thc 201 1 Surrnler'ly Ploject Bonds. 'I'he Bscrow Bank shall not be liable or tespousible for any loss

resultilg from any reinvestrlcnl rnade pursuâr'ìt 1o this Agreenrent and in full conrpliauce with theplovisions hcrcol.

SECTION 5. Paynrent of201l Sunmerlv Proiect Bonds.

(a) Pavrnent. Flonr the maturing principal of the Iìedetal Securities and the

illvestrreÍìt income ard olhel eamings thcreon and other tnoneys ou deposìt in the Esclow lìund, 1he

Dscrow Bank shall apply the amounts ou deposit in the Esclow Fund to pay when due. allRedenrption Plice with respect to the 201 I Summelly Plo.iecl Bonds.

(b) Irrevocable Instluctions to Plovide Notice. The follns olthe notice requiredto bc mailed pursuânt to Sections 2.02(d) ancl 9.03 of thc 2011 Suurtnerly Project Illdelìturc are

substantially in the folrrs altached heleto as Exhibits A and B. The Agcncy licreby ilrevocablyiÍìstructs the Escrow Bank to lnail a notice of plepayÍìreut and a notice of defcasauce of tlie 2011

Summer'Ìy Plojcct lloncls in accordancc with Sections 2.02(d) and 9.03, r'espectively. of the 20llSummclly Ploject lndenture, as required to pr-ovide lor the ptepaynrent of the 2011 SummellyPro.ject Bonds in accordance with this Section 5.

(c) Unclainred Moneys. Aly moneys which lemain unclaiured f'or trvo yeals

aî1el September l . 201 6 shall be I epaid by the Escrow Bank to thc Sttccessol Ageucy.

(d) Priolily of Pavments. 'Ihe ownels ofthe 2011 Sulnmelly Ploject Bonds shall

have a first and exchrsive lien on all moneys and securities in the lÌscrow lìund until such moneys

and such securities are used and applied as plovi<led in this Agreerletrt.

(e) Te¡ mination of Obligation. As provided in the 201 I Summerly Project

Indenlulc, upon deposil of nroneys with the Esclow Banh in the Ilsctow Fund as set lorth inSection I hereof and the pulchase of the varíous F'ederal Securities as plovided in Section 2 heteof,tlìe owt'ìers ofthe 2011 Sumrnerly Project l3onds shall cease to be entitled to the pledge ofand lien on

tl'ìe Revenues as provided in the 201 I Summcrly Ploject Indenture. aud all agreeurents ancl covenantsof the .Authorily aud the l'r'ustee under the 201 I Summerly Ploject lndenture shall cease, terminâteand become void and shall be discharged and satisfied. except âs set forth ill the 2011 SummellyPloject lndentut e.

SECTION 6. Apnlication of Cert . All ofthetelìrsofthe20llSurnmerlyPlojeclIndenturelelating1othemakiugofpayneutsol'principaland ittetesl with respcct to the 201ì Sumnrerly Project Bonds and relating to tlre exchange ortransfel ofthe 20J I Sumnrerly Pro.ject Bonds are incolporated iu this Agrectrent as ilset l'orth ill fullhelein. The plocedures set foÍh in Secfions 6.06.6.07 and 6.09 of thc 2011 Surnmerly ProjectIndentule relatiug 1o the lcnroval. resignation and melger of the 20ll Trustee undcr the 2011

Summerly Project Indenture are also incorporated in this Agreement as if set forth in full hercin and

shall be the procedules 1o be followed u,ith |espect to any renroval. r'esignation or rnelger of thc

Iìscrow Banh hereunder'.

SÐC1'ION 7. Pcfo na ce ol'Duties. Tlie Iisclow Bank aglees to perforln olrly the duties

set folth herein and shall have no lesponsibilily to talie any action or ornit to take any action rot set

folth herein.

3

DOCSOC/l 7046 I 7v | /200590-000 I

SECTION 8. Esclow llânk's Authoritv to Mâke lÍìvcstmenls. Except as plovided in

Sectiolls 2. 3, 4. and 5 heleof, the Escrow Ilank shall have llo power or duty to irvest âlly funds held

u¡der this Agreen'ìcÍìt or to sell. transfer ol otherwise dispose of thc lrolleys or Fedelal Seculities

held heleundel.

SEC1'ION 9. Indenlnilv. 'l'he Successor Â.gency hereby assunes liabilily for, and hereby

agr.ees (whethel or l'ìot any of the transaclions conlemplated hereby are cousuntnlated) to indelnnify.

protect, save and keep halmless thc Escrow Bank and its respeolive successol's. assigtls, agents.

eurployees and seryants. fioln and against any and all liabilities, obligatiols, losses, datnages.

penalties, clairns, actions. sr.rits. costs, experìses and disburselnents (including reasouable lcgal fees

and disburseme¡ts) of whatsoevel kind and natule which may be iurposed ou. incurted by, ot'

asserted âgainst, the lìsclow Bank at any tinre (whetlier or not also indemnified agaitrst the same [.ry

the Sùccgssor Agcncy or any othel person undel any other agreetnett or insûulnert, L,u1 withorrl

double indenrnity) in any way relating 1o or ar ising out ofthe execulion. delively and perforuance ofthis Agreement, the cstablishment hereundel of the Esclorv F-und, the acceptallce of the funds and

securilies deposited thel ein. the retcÍìtion of the ploceeds thcreof aud any paynlellt, lransfer ot olher

applicalion of nroneys or seculities by the Escrow Bank in accordance with the provisions of this

AgreenlelU pr.ovided. however. that the Successol Ageucy shall not be required to indelnnily the

Escrow Bank agai¡sl the Esclow Bank's own negligeuce ol willlul misconduct ot'the negligelce ol

willful misconduct oí'tlìe Escrow Banh's respective employees or the willltll bleach by the Escrow

Bank ofthe terms of tllis Agreerleut. In ro event shall the Successol Agency or the Esclow Banli be

liable to any person by reason ofthe tlansactions conteurplated hereby othel than to eaclì otl'ìer as se1

lòl.th in this Section. The indenrnilies cortained in this Section slrall sulvive thc terlrination of this

Agleenlerl and thc lesignation or letnoval ofthe Escrow Bank.

SECTION 10. Responsibilities of Esclow Ilank. The Esctow Bank and its âgents alìd

selvants shall not be held to any petsonal liability whatsoevel, in tort, collfl'act, or otherwise. in

conncctioll witlì the execution and delivery ofthis Agreerlent, the establishmeut ofthe Esclow Fund,

the acceptatlce o1'the rnoueys ol seculitics deposited therein, the rctertion ofthe Federal Securities olthe proceeds thereof, the sulficiency of the Federal Securities to pay the 2011 Sumrnelly Ploject

Ilo¡ds or any paymenl. transfel ol other application ofmoueys or obligations by tlre lìsorow Balrk irr

accortlance with the provisions of this Agreemet]t or by teason of any uotl-negligent act,

non-negligenl ourission ol nou-negligent error ofthc Escrow Bauk urade iu good faith iu the couriuct

of its dulies. The recitals of fact oontained in the "Whereas" clauses lreleitt shall lre laken as the

statemellts of the Successor Ageucy, and thc llscrow Bank assuures no responsibility for the

co¡.ectness thereof. The Escrow Bank rnakes no replcsontâtiott as to tlre sufficietlcy ofthe proceeds

to accomplish the refrìndi g ôfthe 201 1 Sunrmerly Project Bonds or 10 the validity oflhis Agreemellt

as to tlìe Agency and, excepl as otherwise provìded herein. the llscrow Ballk shall incur no liability inrcspect fhereof, 'Ihe Escrow Bank shall not be liable in connectioll with the perforrnance of its duties

undel.this Agteernent except fot its owlì negligence. willful misconducl ol defatllt, and the duties and

oblìgations of the Esclow Bank shall be determined by tlie express ptovisions of this Agreentent.'l'he Escrow Bank may colìsrìlt witl] counsel, who tnay or n.ìay not be counsel to the Successor

Age¡cy, and in reliance upon the written opiniou of such counsel shall have lill and cotnplete

authorization and plotection in lespect 01'any action 1aken. suffeled or omittecl by it in good faith in

aocordance ther,ewith, Whencvel the Escrow Bank shall deeu it necessaty ol desirable that a lnatter

be p¡oved or established prior to taking, suflèr'ing. or omifliug any action undel this Agleen'ìcnt, such

l â11e1. may be deelned 1o be conclusively established by a cerlificate signed by an ol'ficer of the

Successor Agency.

4DOCSOC/l 704(r I 7v l/200590-000 I

No pr.ovision oithis Agleenient shall requile Ihe [.]scrow Bank to expend or lisk its orvn

f¡ncls or othcrwise incur any financial liabilily in thc performance or excrcise of any of its duties

hereunder, ol in the exercise of its rights or powets.

lf the Escrorv Ilauk learns thal the DepartÍìrent of the Treasury or the Buleau ol' Public Dcbt

will not. for âuy reason, accept a subscriplion ofIredelal Secutilics that is to be sublnifted pttlsuatìt 10

this Agr.eement, the Esclow Bank sliall ploniptly lequest altelnativc written investl'ììeltt ìnstrucliorts

front lhe Successor Agency with r{]spect to esclowed funds which wele to be invested in

secutities. The Escrow Bank shall follow such instructions aud. upon the uratulily of any such

alter.¡ative investment. the Escrow Bank shall hold funds uninvested and without liability fol interest

u¡til receipt offurthel wlitlen instructions lìonr the Succcssor Agency. In the absetrce of illvestn'ìe tiustuctions florn the Successot Agency. 1he Escrow Bank shall not be responsilrlc lòr the investllìent

of such lunds or ilìterest thereon. ì.lle Escrow Bank uray conclusively rely upott llre Successol'

Ägency's seleclion of an altelnative inveslnrcÌìl as a deternlilìatior of the altettlatjve investlÌlenl's

legality and suilâbility and shall not be Iiable fol any losses related to the allelrlativc investmeltls or

fol cornplianoe with any yield restlictiot applicable thereto.

The Ilscrorv llank shall have the light to accept and act upon inslr'uctious. including funds

llansfer ìnstructions ("ftstructions") given pursuant to tlìis ^greement

and deliveled rrsing lllecllonicMeans ("Eleclloltic Means" shall mcan the îoÌlowing conrmunications methods: e-lllail, fassimilefransmissìon. secure clcctl'onic transmission containing applicable authorizaliotl codes. passwords

and/or autheuticâtion keys issued by the Iisclow Bank. or anolhel nretlrod or systetÌì spccified by fhe

Ilsc¡ow Bauk as available for use in connection with its services hereuudet); provided. l'ìou'ever" tllatthe Successor Agency shall provide to the Escrow Bank an incumbelìcy cert¡ficâte listing offìcels

with the authority to plovide such Instluctions ("Authorized Ollìcers") and coutailting specimen

signatures of such Autholìzed Officers, which iucuurbeucy cettifìcate shall be amended by the

Successol A.gency whenever a persol'ì is to be addcd or deleted froln thc listing. I1 the Successor

Agency elecls to give the Escrow Bank lr'ìstructions using Blectronic Means and the Esclow Bauk ìlits dìscrelion elects to act upon such lustructions, the Escrow Bank's undetstatrding of such

lustl.uctious shali be deerled controlling. 'l'he Successor Agency understattds and aglees that the

Escrow Bank canuot detetr'ìriÍìe the identity of the actual sendel ofsuch lustrtlctiols alld that the

Escrow lla¡k shall conclusively presuÍìrc that dilections that purport 1o have beeu setlt by au

A.Ùthorized Officcr listed ou thc i[cur¡bency celtificale provided to the Escrow Bauk have been settt

by suclr Authorized Ol'ficer. The Successol Agency shall be responsible for elsuring that only

Äutliorized Olficels tlansntil st¡ch lnstructions to the Escrow Bank and that the Successor .Agellcy

and all Authorized Officels alc solely resporsible to safeguard the use aud confldentiality ofapplicable user and autholizâtiorì codes, passwolds ald/or authentication l(eys upoll leceipt by the

Successol. Agency. 'l'he llsclow Bank shall not be Iiable for any losses, costs or cxpenses alisingdirectly or indirectly floln the Esclow llank's leliance upon and conìpliatlce witlr such lrstructiorlslìotwithstandirg such directions conflict or âre inconsistelìt with a subseqttcnt writtellìtstruction. The Successol Agency agrees: (i) to assume all risks arising out ol'the use of Electrouic

Mear1s to subtnit lusttuctiotrs to tlle Escrow llank, includìng without linlitation the risk ol'1he Escrow

Bank acting on ullauthorized lnstruclions, and the risk of intelceptiou and nrisuse by thitd paties; (ii)that it is lully informed of the protections and risks associâted with the various ntethods ol'lransmitting Instrugtiolls to the lisclow Bank aud tlìat there rnay be u'ìore secure methods oîlransmilli¡g llìstt uctious than the lnethod(s) selectcd by tlre Successor Agency; (iii) that the secul'ity

plocedures (il any) to be followed in coÍìncction wilh its tlansmìssion of lnstructions provide to i1 a

commelcially reasonable deglee of plotection in light of its particular needs and cilcumstances; and

llO('SOC/1 704(r I 7v l /200590-000 I

(iv) to notily the Esclow Bank ímnrediately upon leaming ofany courprotnise ot t¡naulhol ized use of'

tlìe seculity plocedures.

'l'Ìre Escrow Banh shall lulnish the Successol Agency periodic cash transactioll slaten'ìcl]ts

which ilclude detail for all investurent tlansactions effected by the .Escrow Bauk or brokers selecled

by the Successor Agency. Upon tl'ìe Successol Agency's eleclion. such stalenlettts will be delivered

via the Esclow Bank's onlile service and upon electing such service, papet slateÍìrents will be

provided only upon requcst. The Successol Ageucy waives the right to receive blokelage

collfirulatious of secu¡ity transactions effected by thc llscrow Bauk as they occur', 10 the extent

pertrritled by law. The Successor Agency furthel undcrstands that lrade confiruratiotls for securjties

transactions el'fected by tlìe Escrow Bank will be available upon request altd at no additional cost and

other tlade confirmatious rnay be obta¡ned 1ìom the applicable blokel.

Any colrpany info which the Esclow Bark may be nrelged or converted ol with which it may

be cousolidated ot ally cotìlpâl'ìy resulting fiom any merger'! corversion ot collsolidatiou to which itshall bc a party ol âlìy cotrpatly to which the Esclow Bank nray sell or transfel all or substanlially all

of its col.porale trust business shall be the sùcccssol to the Escrow llank withotlt tl'le execulioll ol'

filing ofany paper or furtl'ìer act. anytbing hercin to the colltlaly I'ìotwithstand iÍìg.

SECIION 11. Alneltdr¡ents. 'ììhis Agreement is nrade fol the benelìt of 1he Successol'

Agency and the ownels fiom linre to tirne oî the 201 I Sunrnrerly Ploject Bonds and it shall llot be

¡epealed. revoked, ahered ol anended without the wÍit1eÍì cor'ìscnt of all such owners, the Escrow

Ilank and the successol Agency; pr.ovided. however, that the successor Agency and the Escrow

Bank may, witlìout the conscut of, or notice to, such owners, anreud this Agreenretrt or el'ìter itìto

such agr.eemelts suppler.nental to this Agreerrent as shall not adversely af'fect the riglits of such

ownel.s and as shall not be inconsistent with the tenrs and provisious of this Agteetleul or the 201 1

Suurrrerly Project lndeuture, for atty olle oL n'ìoLe of the following purposes: (i) to cure any

anrbiguity ol formal defect or onrission in this Agleeurent; (ii) to grallt 10. or conlel upou. the Escrow

Ba¡k for the bencfit of the ownels oithc 20ll Summerly Ploject Bonds, any additional riglits,

remedies. powels ol aulhorify that nray lawfully be granted to, or confcrrcd upor, such owners oL tlre

Escrow l3ank; and (iii) to include uudel this Agreentent additional funds. Tlre Escrow llank shall be

eutitlcd to rely conclusively upon an unqualified opinion of StLadling Yocca Cìatlson & Rauth. AProfessiotal Corporation. with lcspect to colnpliance witli this Section 1l. irrcludirtg the extent, ifany. to wlrich any change. modification, addition or eliniination affects the t ights of the owtters of llrevario¡s 201 1 Summerly Ploject l]onds or tl]at âny instrlnrent execuled hereuuder complies wilh the

conditions and provisions ol tllis Section 11. In the eveut of auy conflicl wilh respect to the

provisions of this Agleement, this Agreentent shall prevail and be binding

SBCIION 12. fNotice to Standard & Pool's The Successor ,A.gency agrees to ¡rlovideStandard & Poot's, a Division of the McGlaw-Hill Cotnpauies, 55 \ryater Street. 45th lrloor, New

Yor.k, New Yolk I0041. prior Íìotice ofeach arnendrnenl er]tered ilìto pursuatlt to Sectiol I1 lreleofand a copy ofsuch proposed atnctrdtneltl, and to lol ward a copy (as soon as possiblc) of(i)eacharlrendment hereto entered into pursuant to SectioD 11 hereo| and (ii) any action relating to

sevelability or conlerrplated by Section 15 hereof.]

SECI'ION 13. Ternt. This Agreernc t shall commence upolì i1s execution and delively and

shall termi¡ate o¡ the later to occurof eilher': (i)1he date upotr which the 201ì Surnmerly Ploject

Ilonds have bcen paid in accoldance with this Agreement; or (ii) the date upon which no unclaiured

moneys lenrain on dcposit with the Escl ow Bark pursùant to Section 5(c) o1ì this Agreemenl

6DOCSOC/1 704(rl 7v l/200590-000 I

SECTION 14. Courpensatiolt. 'lhe Esclow Bank shall leceive its reasonable 'fies alld

expeuses as previously aglecd to by tlre lÌscrow Bauk and the Successor Ageucy aud any olher

rcasonable fees altd cxpenses of the Esclow Bank apploved lry the Succcssor Agency; provìded.

however., thal under no circulìrstances shall the llscrow Ilank be entitled to any lien or assert any Iien

whatsocver on any lnoÍìeys ol obligations in the Escrow Fund for the paytnent of fees attd expcnses

for sclvices rendeted or expenses iuculred by the Escrow Banli uudet this Agrcenrent

SEC]ìON I 5. Severabililv. 11 any one or more of thc coveuants ol âgreernents provided in

th¡s /.\gl.eenlent on 1lìe part ol the Successor Âgency ol the Escrow llank to be perfon.ned should be

deternrined by a court of colnpetenl .iurisd iclion to be conlta|y 1o law, such coveltaÍìts or agleelììeÍìts

shall be null and void aÍìd shall be deemcd separate flon the Iemaiuirg covenants and agreelnenls

herein conlained and shall in no way affect the validily of the rcnrairilrg provisions of this

Agrccmenf.

SIjCTION I ó. Counterpal ts. This Agreernent may be execùted in several countet parts, all ol'

any of which shall bc regalded for all purposes as an otigìnal bu1 all of which shall constitutc alld be

bul onc ald lllc sanrc ilslrurtlenl.

SIICTION 17. Governinq l.,aw. This Agleement shall be constlue d undel the laws of the

State of Califolnia.

SECTION 18. Holidavs. Ilthe date fol rraking any payÍìrent or the last date lot perlormauce

of a¡y act or the exer.cising of any r'ìght, as provided in tlris Agreement, shall be a legal holiday or a

day on which banking institutions in the city in which is located the principal office of the Escrow

Bank ar.c autho¡ized by law to rernain closed, suoh payment may be urade or act perfotmed or rightexe¡cised ol the next succeeding day not â legal holiday or a day on rvhich such banking institutionsare aull'ìorized by Iaw to remain closed, with tlre sane lorce and effecl as ifdone on the nolninal date

pr.ovided in tl'ìis Agleemelìt, aud no illterest shall acctue for the period froln aud after suclr nominal

date.

SECTION 19. Assigntrent. 'fbis Agreeurent sliall not be assigned by tlre lìsolow Banl< or

any successor therelo witlrout the prior wl ifleu consellt ofthe Successor Agency.

SECTION 20. Reol ganizatiou of Escrow Bank. Notwithstandillg anytliing to the colttral)conlained in tþis Agreernenl. âl'ìy coulpâlìy into whicli the Bscrow Bank nay be rnelged or converted

or with which it may be consolidalcd or ally colnparly resulting frorn any metgcr. conversion or

consolidation to which the Escrow Banli is â party. or âny colnPany to which the Escrow Bank may

sell ol. lraltsfer all or substantially all of its colpolate trust business shall be the successol [o the

Esclow Bauk without executiolt or filing of any paper ol ally paper or furlhel act, if such conpany is

cligiblc to sc¡vc as Isclow Brnli.

SECTION 21. lnsufficient Funds. Ifat any time the Escrow Bauk has aclual knowledge thal

the mo¡eys and investnleuls in the Esclow Fund, including the anticipated proceeds of and earuings

theleon, will ¡ot be sulficient to ulake all pâyn.ìerts requiled by tlris Agreenteul. the Escrow Bank

shall notify tl'ìe Successol Agency in writing. of the anrount thcreof and the reasoll therelor to the

cxteÍìt knowtì to it. 'l'he Escrow Ilank shall have no responsibility regalding auy such deficiency.

SECìTION 22. Notice 1o Escrow Bank. Successor Aqency. Âtly uotice to or demand upon

1þe Esct.orv Ilank may be served or pteseuted, alld such clenrand uray bc lnade, at the plinc¡)al

7ì)( )CSO(l/1704 (r I7v l/200590-0001

col.porate tr.usl office of the Escrow Banh at 350 Calilolnia Shcet, llth lloor, Salt lìraucisco,

Califolnia 94104, Attentiolt: Cor¡rorate 'l'rtìst Departmentl Fax: (415) 273-2492; e-nail:[email protected], with a copy lo: Accounl,^dnrinistration-corpol ateT'rust

@ultio¡bank.conr. Any notice 10 or delÌìar'ìd npon 1he Successol Agency ol the Authority sliall be

deemed 1o have beet sulficiently given ol selved for all pulposes by being mailed by registeted orcer.tified mail, and deposited. postage pfepaid, in a posl office letler box, addressed 10 1he Successor

Agency at 130 South Main Street, Lake Blsinole, Califolnia 95965, Attenliolì: Execulive Dircctor(or suclì othel addless as may have been filed in writing by the Succcssor Agency with the llscrowBanh).

[Remaindel ofPage Intentionally Left Blank]

8Do('liOC/17046 | 7v I /200590-000l

IN Wl'INESS WIIERDOIì, the palties hereto have caused tl.ris Agteeurenl 1o be cxecLrted by

tlreil duly authorized officels and altested as ofthe date filst above written.

SUCCESSOR AGENCY T'O TI-IEREDEVHLOPMENT AGI],NCY OF TI.IE CITYOF LAKI] Iì-SINORE

ByChair'

A't'"t'tiSl-:

Secrelaly

LAI([ EI-SINORE PUBLIC FINANCINGAI]THOIìITY

ByChair

A'I''Ì-EST:

Secrelary

MUIIG IJNION BANK. N.,,\..as ìlscrow Bank and 201 I TI uslee

Authorized OfficerBy

l)O('SO('/l 7041, I 7vl /200590-000 Is-l

SecuritJ) MaturitJ)

SCI{DDULE A

Fedelal Securities

Princi¡xtlAt outtt

$

IntereslRute

%

Price

DOCSOC/ 1704 (r 17v I /200590-0001Schedule A-1

ToÍtl Cash Receipt

from FederolSecuriÍies

SCHEDULE II

Escrow Cash Flow

Cash Dishurse nrcnÍ

.fronr Escrow Cash Baltnce

$ì

Dale

Beginning Balance:

Totárl

$$

sì-

DOCSOC/ l 704 (r I 7v l /200-590-000 I

Schedule Il-l

DXI{IBIT A

NOTICII OF PREPAYMENT

LAKE ELSINORE PUIìLIC FINANCING AUTI{ORITYLocal Agency Ilevcnue Bonds

(Summcrly l'r'oject), 2011 Se rics A

BASE CUSIP NO.

NOl'lCE IS HERBIIY GIVEN to the orvnels of the above-captionccl L,ake Illsinore PublicFinancing Autholily Local Agency Revenue llonds (Sumnrerly I'rolect),2011 SeliesA (1he "20l lSumnrerly Plo.lecl Bonds") of the Lake Elsinore Public Financing

^.tìfhorily (the "Autltotity")

pursuallt to the lndenlurc of 'l'rust, dated as of June ì, 2011 (the "2011 Summerly Pro.iect

lndenture"), by and betweeu the Authority and MUIìG Uuiou Bauk, N,4,, folnerly known as Uniollllank. N.4.. as trustee (the "201 1 'l'r'ustee"). fhal the 2011 Suurtrcrly Pro.iect Bonds in the aggregate

principal amount ol' $- have been called l'ol plepâymellt on Septelllbel l, 2016 (the

"Prepayment Date").

2011 Surnmerly Ploject Bonds

CUSIP

ßotul PaymentDúe

(Septenber 1) Rale At rounl Pric¿

The 201 1 SurÌnrerly Project Bonds will be payable ou the Prepaynrelìt Date al a plepaylnentprice ol' 100% of the principal alnount plus accrued interest 1o sr¡ch date (the "Prepayment Prìce").

Sutr-iect to pliol rescission as rcferenced below, the Prepayment Pricc ofthe 20ll Sumrnerly Project

Bonds will become due and payable on the Plepaymer'ìt Date. Inleresl witlì respeot to the 2011

SummerÌy Ploject Bonds to be prepaid will cease to accrue on and aftel the Prepayntetrt Date, and

st¡ch 201 1 Sunrnrcrly Project Bonds will be sultendeted to the 201I Trustee.

AII Certificates are required to be sunendered to the plincipal corporâte ol'fice of the 2008

Tlustee, on the Plcpayment Date at the following location. ll'the Certificates ate mailed, the use oiregistercd, insul ed mail is reconrmended:

B)' Ila d: ß.y Registaretl or Cetlified Ma¡l: Iì.1t Aìr Courier:

MUIiG Union Bank, N.A. MUFG Union Bank, N,A. MUFG Union llank. N ACorpolate Jì ust Selvices Cìorpolate Trust Sclvices Corporflle Trust Sei-vices

120 South San Pedro Stroel 120 Soutlt Sau Pedro Strcct 120 Soutlì San Pedro Street

Sui(e 410 Suite 410 Suite4l0Los Angeles, CA 90012 Los Angel€s, CA 90012 Los Angeles, CA 90012

If the Ownel of any 201I Surnnerly Ploject Bond sub.iect to optional prepaynrent fails todeliver such 201 I Sunrrnerly Ploject Bond to the 201I l'rtlstee on the Prepaylnent Date, such 201 I

I.lxhibil A-lI)oCSO('/1 704(; I 7v l/200590-000 I

Sulnnrer-ly Pr.oject Bond shall nevertheless be deerred plepaid on the Plepaynrcnt Date and the

Owner of such 201 I Sumrrerly Plojecl Bond shall have no lights in respect fheteofexcept to Ìeceivc

payrnent ofthe Prepayment Ptice îr'om ftrrds held by the 2011 'ì'ruslee for such paynrettt.

A l'orm Vr'-9 rnust be subnrittcd u,ith the 2011 Sumurerly Ploject Bonds. Failure to provide a

completed folm W-9 will result in 3l% bachup wilhholding pursuaut to tlìe lrtelesl and Dividend

Tax Coupliance Acl of 1983. Uuder thc Jobs and Glorvth Tax Iìelief Reconciliation Act of2003.28% will be withlìeld ilthe tax identification nurnber is not ploperly ceúified.

MTJFG Unìon Bank. N.,A., as Trustee

DATED this _ day ol_. 2016..

DOCSOC/l 704(r I 7r, l/200590-000 I

Exhibit A-2

IìXI.IIBIT I}

NOTICE OF DEFEASANCtr

I,AKE I'LSINOIìE PUBLIC FINANCING AUTIIORITYLocal Agency Revcnue ììoltds

(Summcrly Projcct)' 2011 Scries A

I]ASE CUSIP NO. --

NOTICE IS HIIREBY GIVEN to the orvnels of the above-captioned l.,ake Elsi ore Public

Fi¡alci¡g Authority Local Agency lìevenue lJonds (Sumrnelly Projcct),2011 Series A (the "20l lSurnmerly Pr.oject lloncls") ol'the Lake Elsinore PLrblic Þ'inancing Authority (the "Authority"), thât

the Successol Agency 10 the Iìedevelopment Agency of the Cily of Lake ìllsinore lras deposited with

MLJFG Union Bank, N.,4., lornrer.ly known as union Bauh. N.4., as tfustee (the "2011 TrLrstee")

under the'Iìust Agr.eement, daled as ofJune 1, 20lI (the "201I Summetly Pfojcct Indentufc"). by

and belweelt the Aùtlìor¡ty and the 2011 'lr.ustee. cash aud Fedetal Securities (as defined in the 201 l

Sunrmerly Pr.o.ject Indentule) sufficient to pay with respect to the 2011 Sutnmerly Plojcct Bonds. all

regula¡ly sche¿uled paynìetìts of principal and interest thlough and including Sepletlber 1 , 2016 artd

to pây or] Septentber 1.2011 tlrc plincipal maturing on and after Seplember 1, 2016, plus intelest

wjth respect thereto acct ued 1o sttch date. without prenrium.

The 201 I Suunrerly Project Bonds 1o be defeased ate as follows:

Bond PtvnrctttDrte

(September l) Rate Amounl PriceCI]S I P

In accordance with the 201 1 Sumrnerly Ploject lntletrturc, the 201 I Sumtnerly Pr-oject Bonds

are deemed to have been paid in accoldanca wilh Section 9.03 thereof and the obligalions of the

Authol.ity un<ler,the 20ll Sumnre|ly Pro.iect Indenture sliall theteupon cease, lertnillate and becolne

void aud be discharged and salisficd.

MUFC UNION BANI(. N.4.. as 'l'rustee

DATED this dây ofAugust,20l5.

I)OCsO( /I704ó I 7\,1/200590-0001

Exhibit B- 1

TO

FROM:

DATE:

SUBJECT:





MAY 26, 2015

Exchanqe Aqreement With Civic Partners

Recom mendat¡on

It is recommended that the Oversight Board approve and adopt:

RESOLUTION NO. OB-2015-OO3 RESOLUTION OF THE OVERSIGHT BOARD TOTHE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OFLAKE ELSINORE APPROVING THE EXCHANGE AGREEMENT BETWEEN THESUCCESSOR AGENCY AND CIVIC PARTNERS-ELSINORE, LLC,

Background

On December 26, 2002, the Redevelopment Agency of the City of Lake Elsinore("Agency") entered into a Disposition and Development Agreement ("Original DDA")with Laing-CP Lake Elsinore ("Laing" or "Developei'), and Civic Partners-E lsinore("Civic" or "Master Developef') with respect to the conveyance of ceñain Agency-ownedproperty to Laing and the development of that property and other properties withìn theEast Lake Specific Plan. The East Lake Specific Plan is located partially within theboundaries of Redevelopment Project Area No. ll and partially within the boundaries ofRedevelopment Project Area No. lll.

The Original DDA was amended and restated pursuant to that certain Amended andRestated Disposition and Development Agreement effective March 8, 201 1 ('DDA')executed by and among the Agency, McMillin Summerly LLC, a Delaware limitedliability company, as developer, and lVlaster Developer.

ln accordance with the Redevelopment Dissoìution Act the Successor Agencycompleted the due diligence reviews of the Low and Moderate lncome Housing Fundand all other non-housing funds of the former Redevelopment Agency and both DDRswere accepted by the State Department of Finance (DOF). ln April 2013, the DOF¡ssued a Finding of Completion to the Successor Agency.

Exchange AgreementIr[ay 26,2015Page 2

Pursuant to Health and Safety Code Section 34191.5(b), within six months afterreceiving a Finding of Completion from the DOF, the Successor Agency is required tosubmrt for approval to the Oversight Board and the DOF a Long Range PropertyManagement Plan ("Management Plan") that addresses the disposit¡on and use of thereal propert¡es owned by the Successor Agency. On October 22,2013, the SuccessorAgency and its Oversight Board approved the Management Plan and it was promptiy

submitted to DOF. Successor Agency staff is preparing responses to DOF commentsto the Management Plan and compiling requested supplemental documentation

Pursuant to Section 403 of the DDA (previously Section 404 of the Original DDA),

Master Developer has the right and option to exchange certain qualifying property itowns for certain Other Agency-Owned Property pursuant to the terms and condìt¡ons

identified in Sectìon 403 of the DDA.

Discussion

The proposed Exchange Agreement implements the DDA, an enforceable obl¡gat¡on of

the Successor Agency. Commencing in 2007, the Master Developer identifiedAssessor's Parcel Number 373-210-030 (the "Channel Edge Parcel") currently ownedby the Successor Agency as Other Agency-Owned Property for purposes of exchangepursuant to the DDA. A portion of the channel Edge Parcel is within the floodway forthe San Jacinto River inlet channel and Successor Agency staff has determ¡ned thatsuch portìon is reasonably necessary to allow the City the rights necessary to proteciand maintaìn the inlet channel and certain structures constructed pursuant to the Lake

Management Project, including without limitation, the levee, overflow weìr' connectingchannel, transition slope, and wedge inlet. Accordingly, Successor Agency staff hasdetermined that only a portion of the channel Edge Parcel can be conveyed to MasterDeveloper. That portion of the Channel Edge Parcel available for exchange in

accordance with the DDA is approximalely 2.77 acres as identified on the survey by

Wilson Mikami Corporation dated May 5,2015 attached to the proposed ExchangeAgreement as Exhibit D-1 ("Channel Edge Exchange Parcel").

The Management Plan characterized the Channel Edge Parcel as propefty to be

retained for purposes of fulfilling an enforceable obligation pursuant to (HSC Section34191.5(c)(2)). As part of the response to DOF comments to the Management Plan' theSuccessor Agency will seek clarification that the northern portion of the Channel Edge

Parcel (approximately 4.49 acres) should be conveyed to the city of Lake Elsinore forthe governmental purpose of maintaining the Lake Management Project lmprovementsand the southern portion of the Channel Edge Parcel should be conveyed to the MasterDeveloper pursuant to the exchange obligations under the DDA.

The Master Developer has identified a 4.35 acre parcel that it owns (APN 371-100-OOO4-4) to be transferred to the Successor Agency for the Channel Edge Exchange TheMaster Deveìoper parcel is located in the Rome H¡ll area of the Back Basin within the155 acre "conservation area" of the Back Basin (the "Master Developer Parcel").

Exchange AgreementMay 26,2015Page 3

The attached draft Exchange Agreement incorporates provisions for escrow, title, duediligence and specific conditions to close relat¡ng to DOF approvals - all in recognit¡onof the procedural requirements for property disposition under the Dissolution Act and incompliance with the DDA. As a result, upon Successor Agency's approval of theExchange Agreement, the effectiveness of the Exchange Agreement will be subject tothe approval by DOF.

Prepared by:

Approved by:

Attachments:

Barbara Leibold, Agency Counsel

Grant M. Yates, Executive D¡rector

Resolution No. OB-201 5-003Draft Exchange Agreement

RESOLUTTON NO. OB-201 5-003

A RESOLUTION OF THE OVERSIGHT BOARD TO THESUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCYOF THE CITY OF LAKE ELSINORE APPROVING THEEXCHANGE AGREEMENT BETWEEN THE SUCCESSORAGENCY AND CIVIC PARTNERS-ELSINORE, LLC

WHEREAS, on December 26, 2002, that certa¡n Disposition and DevelopmentAgreement ("Original DDA") was executed by and among the Redevelopment Agencyof the City of Lake Elsinore, a public body, corporate and politic ("Agency"), Laing-CPLake Elsinore LLC, a California limited liability company, as the original developer, and

Master Developer; and

WHEREAS, the Original DDA was amended and restated pursuant to thatcertain Amended and Restated Disposition and Development Agreement effectiveMarch 8, 201 I ("DDA") executed by and among the Agency, McMillin Summerly LLC, aDelaware limited liability company, as developer, and Master Developer; and

WHEREAS, Assembly Bill x1 26 was chaptered and became effective on June27 , 2011, adding parts 1.8 and 1.85 to Division 24 of the California Health & SafetyCode, which caused the dissolution of all redevelopment agencies and winding down ofthe affairs of former agencies; and

WHEREAS, Assembly Bill x1 26 was amended by Assembly Bill 1484, as

chaptered and effective on June 27 , 2012 (together, the "Dissolution Act"); and

WHEREAS, as of February 1, 2012, the Agency was dissolved pursuant to theDissolution Act and the City of Lake Elsinore ("City") became the "Successor Agency" in

accordance with the Dissolution Act; and

WHEREAS, the Oversight Board to the Successor Agency of the RedevelopmentAgency of the C¡ty of Lake Elsinore ("Oversight Board") was established by theDissolution Act to direct the Successor Agency to take certain actions to wind down theaffairs of the former Agency; and

WHEREAS, on April 26, 2013, the Department of Finance ('DOF') ¡ssued aFinding of Completion to the Successor Agency; and

WHEREAS, pursuant to Health & Safety Code Section 34191.5(b), w¡thin sixmonths after receiving a Finding of Completion from the DOF, the Successor Agency isrequ¡red to submit for approval to the Oversight Board and the DOF a Long RangeProperty Management Plan ("Management Plan") that addresses the disposition anduse of the real properties owned by the Successor Agency; and

OVERSIGHT BOARD RESOLUTION NO, OB-2015-OO3-Page 2

WHEREAS, pursuant to Heaìth & Safety Code Section 34'191 5, the Oversight

Board approved the Management Plan on October 22,2013' and Successor Agency

staff submitted the Management Plan to DOF on October 23,2013, and

WHEREAS, pursuant to Section 403 of the DDA, Master Developer has the right

and option to exchange certain qualifying property it owns for certain other Agency-owned Property pursuant to the terms and conditions identified in section 403 of the

DDA; and

WHEREAS, the property consisting of Assessor's Parcel Number 373-210-030

wh¡ch totals approximately 7.26 acres ("Channel Edge Parcel") is currently owned by

the successor Agency and constitutes other Agency-Owned Property as identified in

the DDA; and

WHEREAS, pursuant to Section 403 of the DDA, Master Developer desires to

exercise its right and option to acqu¡re from the Successor Agency the Exchange Parcel

on the terms and conditions identified in the DDA and set forth in the attachedExchange Agreement; and

WHEREAS, the Management Plan determines that the Exchange Parcel is to be

retained by the Successor Agency to fulfill the enforceable obligations under the DDA in

accordance with Health & safety code section 3a191,5(c)(2), which includes the

exchange of the properties as set forth in the Exchange Agreement; and

WHEREAS, Successor Agency staff has determined that only a portion of thechannel Edge Parcel can be conveyed to Master Developer because a portion of the

Channel Edge Parcel is within the floodway for the San Jacinto River inlet channel and

necessary to allow the city the rights necessary to protect and maintain the inlet

channel and certain structures constructed pursuant to the Lake Management Project,

including without limitation, the levee, overflow weir, connecting channel, transìtion

slope, and wedge inlet; and

WHEREAS, that portion of the Channel Edge Parcel available for exchange in

accordance with the DDA is approximalely 2.77 acres as identified on the survey by

Wilson Mikami Corporation dated May 5, 2015 attached to the proposed Exchange

Agreement as Exhibit D-1 ("Channel Edge Exchange Parcel"); and

WHEREAS, the property consist¡ng of Assessor's Parcel Number 371 -100-0004-

4 which totals approx¡mately 4.35 acres ("Master Developer Parcel") constitutesqualifying property owned by Master Developer within the East Lake specific Plan Area

as provided ¡n the DDA; and

WHEREAS, pursuant to Sect¡on 403 of the DDA and the Management Plan, the

successor Agency desires to dispose of the channel Edge Exchange Parcel subject iothe terms and cond¡tions set forth in the Exchange Agreement; and

WHEREAS, pursuant to Section 403 of the DDA, the Master Developer desires

to exchange the Master Developer Parcel subject to the terms and conditions set forth

OVERSIGHT BOARD RESOLUTION NO. OB-20'15-OO3Page 3

in the Exchange Agreement, and Successor Agency agrees to acquire such the MasterDeveloper Parcel subject to the terms and condÌtions set forth in the ExchangeAgreement; and

WHEREAS, the Oversight Board desires to approve the form of ExchangeAgreement effecting the exchange of the Channel Edge Exchange Parcel and MasterDeveloper Parcel; and

WHEREAS, because of the dissolution of the Agency and the review, approvaland other requirements of the Dissolution Act, entry into the Exchange Agreementeffecting the exchange of the Channel Edge Exchange Parcel for the Master DeveloperParcel ìs subject to rev¡ew and approval by DOF; and

WHEREAS, all other legal prerequisites to the adoption of this Resolution have

occurred.

NOW, THEREFORE, THE OVERSIGHT BOARD TO THE SUCCESSORAGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINOREDOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. Each of the foregoing rec¡tals is true and correct.

Sectíon 2. The Oversight Board hereby approves the form of ExchangeAgreement attached as Exhibit A hereto. Upon approval and/or failure to object to theOversight Board's approval of the Exchange Agreement by the Department of Finance,the Successor Agency is d¡rected to enter into an Exchange Agreement substant¡ally in

the form attached as Exhibit A.

Section 3. The Chairman of the Oversight Board and the other officers andmembers of staff having responsibility for the affairs of the Successor Agency to theRedevelopment Agency of the City of Lake Elsinore are hereby authorized to take suchactions and execute such documents and certificates as necessary to assist theSuccessor Agency in the implementation of the Exchange Agreement. All previously

taken acts wìth respect to the foregoing are hereby ratified.

Section 4. lf any provision of th¡s Resolution or the application thereof to anyperson or circumstance is held invalid, such invalidity shall not affect other provisions orapplications of this Resolution which can be given effect without the invalid provision orappl¡cation, and to th¡s end the provisions of this resolution are severable. TheOversight Board hereby declares that it would have adopted this Resolution irrespectiveof the invalidity of any particular portion thereof.

Section 5. This Resolution shall take effect in accordance with applicable law.

OVERSIGHT BOARD RESOLUTION NO. OB-2015-OO3Page 4

PASSED, APPROVED AND ADOPTED at a special meet¡ng of the OversightBoard to the Successor Agency of the Redevelopment Agency of the City of LakeElsinore, held this 26th day of May, 2015.

Dave Oster, Chairperson,Oversight Board to the Successor Agency tothe Redevelopment Agency of the City of LakeElsinore

ATTEST

Vìrginia J. Bloom, Secretary

OVERSIGHT BOARD RESOLUTION NO, OB-2015-OO3Page 5

EXHIBIT A

EXCHANGE AGREEMENT

(attached)

EXCHANGE AGREEMENT

THIS EXCHANGE AGREEI\4ENT (thÍs "Agreement") is made and entered into as ofMay

-, 2015, by and between the Successor Agency of the Redevelopment Agency of the

City of Lake Elsinore, a public body, corporate and politic ("Successor Agency"), on the onehand, and Civ¡c Partners-Elsinore, LLC, a California limited liability company ("CPE" or "MasterDeveloper") on the other hand. Any capitalized terms herein which are not def¡ned shall have

the same definition as provided in the DDA (defined below).

RECITALS

A. WHEREAS, on December 26, 2002, that certain DisposÌt¡on and DevelopmentAgreement ("Original DDA") was executed by and among the Redevelopment Agency of the

City of Lake Elsinore, a public body, corporate and politic ("Agency"), Laing-CP Lake ElsinoreLLC, a Cal¡forn¡a lim¡ted liab¡lity company, as the original developer, and Master Developer;

B. WHEREAS, the Original DDA was amended and restated pursuant to thatcertain Amended and Restated Disposition and Development Agreement effect¡ve March B,

201 1 ('DDA) executed by and among the Agency, McMillin Summerly LLC, a Delaware limitedliability company, as developer, and Master Developeri

C. WHEREAS, Assembly Bill x1 26 was chaptered and became effect¡ve on June27,2011, adding parts 1.8 and '1.85 to Div¡sion 24 of l.he California Health & Safety Code, whichcaused the dissolution of all redevelopment agencies and winding down of the affairs of formeragencies;

D. WHEREAS, Assembly Bill x1 26 was amended by Assembly Bill 1484' as

chaptered and effective on June27,2012 (together, the "Dissolution Act");

E. WHEREAS, as of February 1,2012, the Agency was dlssolved pursuant to theDissolution Act and the City of Lake Elsinore ("City") became the Successor Agency("successor Agency") in accordance with the Dissolution Act;

F. WHEREAS, the Oversìght Board to the Successor Agency ofthe RedevelopmentAgency of the City of Lake Elsìnore ("Oversight Board") was established by the Dissolution Actto d¡rect the Successor Agency to take certain act¡ons to wind down the affairs of the formerAgency;

G. WHEREAS, on April 26, 2013, the Department of Finance ("DOF") issued aFinding of Completion to the Successor Agency;

H. WHEREAS, pursuant to Health & Safety Code Section 34191 5(b), within six

months after receiving a Finding of Completion from the DOF, the Successor Agency is requìred

to submit for approval to the Oversight Board and the DOF a Long Range PropertylVlanagement Plan ("Management Plan") that addresses the disposition and use of the realproperties owned by the Successor Agency;

L WHEREAS, pursuant to Health & Safety Code Section 34151.5, the Overs¡ghtBoard approved the Management Plan on October 22, 2013, and Successor Agency staffsubmitted the Management Plan to DOF on October 23,2013,

Exchange Agreement Revised 05 21 20'15 Page 1

J. WHEREAS, pursuant to Section 403 of the DDA (previously Section 404 of theOr¡ginal DDA), lvlaster Developer has the right and option to exchange certaìn qual¡fyingpi"operty it owns for certain Other Agency-Owned Property pursuant to the terms and conditions¡dentified in Section 403 of the DDA;

K. WHEREAS, the property consisting of Assessor's Parcel Number 373-210-030wh¡ch totals approximately 7.26 acres ("Channel Edge Parcel") ìs currently owned by theSuccessor Agency and const¡lutes Other Agency-Owned Property as ident¡f¡ed ¡n the DDA;

L. WHEREAS, a portion of the Channel Edge Parcel is within the floodway for theSan Jacinto River inlet channel and such portion is reasonably necessary to allow the City ther¡ghts necessary to protect and maintain the inlet channel and certain structures constructedpursuant to the Lake Management Project, includ¡ng without lim¡tation, the levee, overflow weir,connecting channel, trans¡tion slope, and wedge inlet. Accord¡ngly, Successor Agency has

determined that only a portion of the Channel Edge Parcel can be conveyed to MasterDeveloper. That port¡on of the Channel Edge Parcel available for exchange in accordance with

the DDA is identified on the survey by Wilson Mikami Corporation dated May 5, 20'15 attachedhereto as Exhibit D-1 and incorporated herein by reference ("Channel Edge ExchangeParcel") the legal description for which is set forth on Exhibit D-2 and ¡ncorporated herein byreference.

M. WHEREAS, pursuant to Sect¡on 403 of the DDA, lVlaster Developer desires to

exercise ¡ts right and option to acquire from the Successor Agency the Channel Edge ExchangeParcel on the terms and conditions ident¡fied in the DDA and set forth herein, and the SuccessorAgency agrees to such acquisition;

N. WHEREAS, the property consist¡ng of Assessor's Parcel Number 371-100-004-4which totals approximately 4.35 acres ("Master Developer Parcel") constltutes qualify¡ngproperty owned by lvìaster Developer within the East Lake Specific Plan Area as provìded ¡n theDDA;

O. WHEREAS, the Management Plan determines that the Channel Edge Parcel is

to be reta¡ned by the Successor Agency to fulfill the enforceable obligations under the DDA inaccordance with Health & Safety Code Section 34191.5(c)(2), wh¡ch includes the exchange ofthe properties as set forth herein:

P. WHEREAS, notw¡thstanding the criteria for such exchange set forth in Section

403 of the DDA, the paÌties acknowledge that because of the dissolution of the Agency and thereview, approval and other requirements of the Dissolution Act, the exchange of the ChannelEdge Exchange Parcel for the Master Developer Parcel is subject to review and approval by theOvers¡ght Board and DOF, which make compl¡ance with the time frames set forth in the DDAimpossible and will require certain other criteria not contemplated by the DDA to be met;

O. WHEREAS, pursuant to Section 403 of the DDA and the lvlanagement Plan, theSuccessor Agency desires to dispose of the Channel Edge Exchange Parcel subject to theterms and conditions set forth here¡n, and Master Developer agrees to acquire such propertyi

and

R. WHEREAS, pursuant to Section 403 of the DDA, the Master Developer desires

to dispose of the Master Developer Parcel subject to the terms and conditions set forth herein,

Exchange Agreemenl Revised 05 2l 2015 Page 2

and successor Agency agrees to acquire such the Master Developer Pafcel subject to theterms and conditlons set forth herein.

NOW, THEREFORE, in considerat¡on of the foregoìng and of the mutual covenants and

cond¡tions contained in this Agreement, and for other good and valuable consideration, thereceipt and suffic¡ency of which are hereby acknowledged, the part¡es agree as follows:

AGREEMENT

1. Transfer of Channel Edqe Exchanqe Parcel. The Successor Agency shall causethe Channel Ëdge Exchange Parcel to be transferred to Master Developer pursuant to, and in

accordance wÍth, the terms of the DDA and the terms and cond¡tions set forth herein. Sa¡d

transfer shall be by grant deed in substantially the form attached hereto as ExhibÍt A and

incorporated herein by reference. The Successor Agency shall transfer the Channel Edge

Exchange Parcel to Master Developer concurrently w¡th l\,4aster Developer's transfer of thel\iìaster Developer Parcel to the Successor Agency as set fodh in Section 2 below. Possessionof the Channel Edge Exchange Parcel shall be del¡vered to Master Developer concurrently w¡th

the recordat¡on of the grant deed in the off¡cial records of the County Recorder of RiversideCounty.

2. Transfer of Master Developer Parcel. Master Developer shalì cause the MasterDeVeloper Parcel to be transferred to the Successor Agency pursuant to, and in accordancewith, the terms of the DDA and the terms and cond¡tions set forth hereìn. Said transfer shall be

by grant deed ¡n substantially the form attached hereto as Exhibit B and incorporated herein by

reference. l\,4aster Developer shall transfer the lvìaster Developer Parcel to the SuccessorAgency concurrently with the Successor Agency's transfer of the Channel Edge ExchangeParcel to Master Developer as set forth in Section 1 above. Possession of the MasterDeveloper Parcel shall be delivered to the Successor Agency concurrently with the recordationofthe grant deed in the official records of the County Recorder of Riverside County

3. Master Developer's Antic¡þated Use. lVlaster Developer intends to utilize theChannel Edge Exchange Parcel for developmenl and use cons¡stent w¡th the Diamond SpecificPIan and all other governmental regulations applicable thereto ("Master Developer'sAntic¡pated Use"). Master Developer's Antic¡pated Use is intended to promote developmeni of

the Channel Edge Exchange Parcel and of Master Developer properties w¡thin the East LakeSpecific Plan consistent with the DDA.

4. Escrow. Within ten (10) days after thìs Agreement is executed by both parties'

Successor Agency and Master Developer shall open an escrow ("Escrow") with First AmericanTitle lnsurance Company, Attention: Debbie Fr¡tz, Escrow Off¡cer ("Escrow Agent")' by

delivering an executed copy of this Agreement to Escrow Agent ("Open¡ng of Escrow"). The

closing of the Escrow ("Close of Escrow") shall occur in accordance with Section 7 of this

Agreement. This Agreement shall const¡tute joint primary escrow instructions to the EscrowAgent; provided, however, that the partÍes shall execute such addit¡onal ¡nstructions as

requested by the Escrow Holder not ¡nconsistent with the provisions hereof. This Agreementand any such escrow instructions executed by the parties shall const¡tute the escrowinstructions for this transaction. ln the event of any incons¡stency between such escrow¡nstructions and this Agreement, this Agreement shall control the rights and obligations of thepart¡es.

Exchange Agrcemenl Revised 05 21 2015 Page 3

5. Phvs¡cal Condition of ProÞerties. Successor Agency and l\4aster Developer shallhave thirty (30) days after the Opening of Escrow to conduct due diligence on their respectiveproperties in accordance with Section 403 of the DDA (the "Due D¡ligence Period"). Pursuantto Section 403 of the DDA, (i) if Successor Agency reasonably determines that the MasterDeveloper Parcel violates any Environmental Laws, it shall have the right to terminate the

exchange and cancel the Escrow w¡thin the Due Dìl¡gence Period and (¡i) if Master Developerdetermines that the Channel Edge Exchange Parcel is not physically suitable for its ¡ntended

use, it shall have the right to terminate the exchange and cancel Escrow within the DueDiligence Period. ln the event that Escrow shall be terminated in accordance with the foregoing,(i) Master Developer and Successor Agency shall each pay one-half of Escrow expensesincurred to date of termination; and (ii) neither party shall have any right against the otherarising out of such termination

6. Condition of Title: Title lnsurance. Pursuant to Section 403 of the DDA, title to theChannel Edge Exchange Parcel and Master Developer Parcel shall be conveyed free and clearof all monetary liens and encumbrances with non-delinquent taxes and assessments prorated at

the Clos¡ng and subject to all existing easements, covenants, restrictions, and other non-monetary encumbrances of record as of the date of this Agreement. Within ten (10) days afterthis Agreement is executed by both part¡es, Successor Agency and Master Developer shallcause First American Title lnsurance Company ("Title lnsurer") to deliver a prelim¡nary titlereport for each of the Channel Edge Exchange Parcel and the lVlaster Developer Parcel ("TitlêReports"), together wrth copies of any exceptìons referred to in Schedule B ofthe Title Repofts.Each pady shall promptly review the exceptions, legal descriptions and other matters contained¡n the Title Repoft. Pursuant to Section 403 of the DDA, Master Developer shall have the rightto terminate the exchange and cancel the Escrow ¡f it reasonably determines that the conditionof title to the Channel Edge Exchange Parcel renders it unsuitable for its intended use. The Titlelnsurer shall issue to each of the Master Developer and the Successor Agency a standard form

CLTA owner's policy of title insurance.

7. Conditions Precedent to Exchanqe. The Close of Escrow for the exchange oft¡tìe to the Channel Edge Exchange Parcel for title to the lvlaster Developer Parcel under thìsAgreement shall be subject to, and occur upon, the satisfaction of the condit¡ons precedent setforth ¡n this Section 7 (unless waived in writing by the party to whom the benefit of the condit¡on

runs; unless otherwise noted, each condition shall run to the benefit of both parties).

i. Deliverv of Closinq Documents. Execution, del¡very to Escrow andacknowledgement as appropriate by Successor Agency and Master Developer of thisAgreement, two (2) Grant Deeds and other necessary clos¡ng documents as may be reasonablyrequired by Master Developer, Successor Agency or Escrow Agent.

ii. Dissolution Act Compliance. ln accordance wÍth the applicable provisìons

of the Dissolution Act, the Oversight Board shall have adopted, at a regularly scheduled or

special meeting, a resolution approving thls Exchange Agreement and the exchange of theproperties in accordance herewith, and such signed resolution shall have been submitted to

DOF and DOF shall have approved, or not objected to after review, the resolution adopted bythe Oversight Board approving this Exchange Agreement and the exchange of the properties in

accordance herewith.

i¡i. lssuance of Title Policies. Title lnsurer shall be irrevocably committed toissue a CLTA Standard Title Policy to each of Successor Agency and Master Developer for theirrespective replacement properties at the Close of Escrow.

Exchange Agreement Revised 05 2l 2015 Page 4

iv. Recordation with the Countv Recorder. The Grant Deeds and any otherrecordabìe clos¡ng documents as may be reasonably required by Master Developer, SuccessorAgency or Escrow Agent shaìl have been recorded ¡n the official records of the County Recorderof Riversrde County.

v. No Material Chanqe. As set forth in Section 402.4(c) of the Or¡ginal DDA,

no material change in the status of the use, t¡tle, occupancy or physical condition of the ChannelEdge Exchange Parcel and the Master Developer Parcel shall have occurred prior to Close ofEscrow.

8. As-ls Transfer. The Channel Edge Exchange Parcel and lVlaster DeveloperParcel are being exchanged "as is, where is, and with all faults," with no other warranty expressor implied by the respective grantors regard¡ng the presence of Hazardous or Toxic Substancesor Materials, compliance with Environmental Laws, or the condition of the soil, geology, thepresence of known or unknown seismic faults, or the suitabiìity of the respective propert¡es forany particular deveìopment or use by the grantee, and neither the Successor Agency or lvlaster

Developer, as grantor, shall have any liability or obligat¡on after the closing of the transfer withrespect thereto, and each of the Successor Agency and Master Developer shall execute therelease of the grantor at the closing of the transfer in substantially the form set forth in Exhibit Gand incorporated herein by reference.

9. lVìiscellaneous.

(a) Successors and Assiqns. AII the terms and conditions of this Agreementare hereby made binding upon the executors, heirs, administrators, successors and permitted

assigns of both part¡es hereto.

(b) Gender. Words of any gender used in this Agreement shall be held andconstrued to include any other gender, and words in the singular number shall be held toinclude the plural, and vice versa, unless the context requires otherwise.

(c) Captions. The captions in this Agreement are ¡nserted only for thepurpose of convenient reference and in no way define, limit or prescribe the scope or intent ofthis Agreement or any part hereof.

(d) Construct¡on. No provis¡on of this Agreement shall be construed by anyCourt or other judicial authority against any party hereto by reason of such party's beingdeemed to have drafted or structured such provÌsions.

(e) Entire Aqreement. This Agreement, the Original DDA and DDA and anyexhìbits expressly incorporated herein and therein const¡tute the entire contract between theparties, and there are no other oral or written promises, cond¡tions, representations,understandings or terms of any kind as conditions or inducements to the execution hereof andnone have been rel¡ed upon by either party.

(Ð Time of Essence. Time is of the essence in thÌs transaction.

(g) Counterparts. Th¡s Agreement may be executed in any number of¡dent¡cal counterparts, any or all of which may contain the signatures of fewer than all of theparties but all of which shall be taken together as a single instrument. The unconditionaldelivery by any party of an electronic image of a signed counterpart of this Agreement shall be

Exchange Agreemenl Revised 05 21 2015 Pâge 5

suffic¡ent to constitute such party's execut¡on and delivery of this Agreement, prov¡ded that suchparty shall nevertheless provide at least one or¡gìnally executed counterpart of this Agreementto the other party as promptly as practicable.

(h) Governinq Law: Venue. This Agreement shall be construed, and the

rights and oblìgations of the parties hereunder shall be determined in accordance with the laws

of the State of California and shall be filed in the court having appropriate jur¡sdiction located ¡n

Riverside County, Caìifornia, and each ofthe parties hereto consent to such venue

(i) Further Assurances. The part¡es hereto agree to execute and deliver

such further documents and take such additional actions as may be reasonably contemplated to

carry out the purpose and intent of this Agreement.

ü) Recitals and Exhibits. The Rec¡tals above and Exhibits attached hereto

are hereby incorporated herein by this reference for all purposes.

SIGNATURES APPEAR ON NEXT PAGE

Êxchange Agreer'lent Revised 05 21 2015 Page 6

lN WITNESS WHEREOF, the part¡es hereto have executed this Agreement as of theAgreement date specified herein.

SUCCESSOR AGENCY OF THEREDEVELOPMENT AGENCY OF THECITY OF LAKE ELSINORE, a public body,corporate and pol¡t¡c

P', _Name: Grant lvl. YatesIts: Execut¡ve Director

ATTEST:

By:Name: Virginia J. BloomIts: Successor Agency Secretary

APPROVED AS TO FORM

LEIBOLD MCCLENDON & MANN, P.C.

By:Name: Barbara Z. LeiboldIts: Successor Agency Counsel

CIVIC PARTNERS.ELSINORE, LLC,a California limited liability company

Name: Steven P. SemingsonIts: Manager

Exchange Agreement Revised 05 21 2015 Page 7

EXHIBIT A

FORIM OF GRANT DEED

(CHANNEL EDGE EXCHANGE PARCEL)

6299 70 4

RECORDING REQUESTED BYAND WHEN RECORDEDRETURN TO:

FRIEDMAN STROFFE & GERARD1 9800 MacArthur Blvd., Ste 1 1 00lrvine, CA 92612Attn: James D. Stroffe

APN: 373-210-030

Space Above s Use Only(Exempt from recording fee per Gov. Code $ 27383)

Ma¡l Tax Statements To:C¡vic Partners Elsinore, LLC7777 Cenler Avenue, Suite 300Huntington Beach, CA 92647

GRANT DEED

FOR A VALUABLE CONSIDERATION, receìpt of which is hereby acknowledged, THE

SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKEELSINORE, a public body, corporate and polit¡c ("Grantor"), hereby grants to ClvlcPARTNERS-ELSINORE, LLC, a California lìmited liability company ("Grantee") that certain real

property located ¡n the City of Lake Elsinore, County of Riverside, State of Californ¡a moreparticularly described in Exh¡b¡t 1 attached hereto and incorporated herein by Teference("Propertv").

1. lt is understood and agreed that the property conveyed by this Grant Deed

includes all ¡mprovements to the Property which are, e¡ther generally or for pufposes ofacquisition by Grantee, a part of the Property.

2. Grantee expressly acknowledges and accepts that the Property is subject to the

concentration of surface water drainage along with inundation and flooding from the waters ofthe san Jac¡nto R¡ver and Lake Elsinore. upon acceptance of this Grant Deed as provided

herein, Grantee hereby wa¡ves and releases any and all claims, actions, or liability aga¡nst

Grantor and the City of Lake Elsinore, a California municipal corporation, arising from or related

to such waters.

3. EXPRESSLYWAIVEDAND RELEASED BY GRANTE,

4. The Property is conveyed in accordance with and subject to the RedevelopmentPlans for the Rancho Laguna Redevelopment Project Area Nos. ll and lll (collectively, the',Redevelopment Plans,'). The Redevelopment Plan for the Rancho Laguna Redevelopment

Project Area No. ll was approved and adopted by the c¡ty council of the c¡ty of Lake Elsinore

by its Ordinance No. 671 on July 11, 1983, as amended by Ordinance No 987 on November22, 1954. The Redevelopment Plan for the Rancho Laguna Redevelopment Project Area No. lll

6299 74.4

was approved and adopted by the city counc¡l of the c¡ty of Lake Els¡nore by its ordinance No.

815 on September 8, 1987, as amended by Ordinance No.987 on November 22, 1994.Grantee shall not use the Property or permit the Property to be used other than as author¡zed orpermitted under the applicable provisions of the Redevelopment Plans; provided, however, thatno future amendments to the Redevelopment Plans that change the uses or developmentperm¡tted on the Property shall become effective or apply to the Property wìthout the pr¡or

written consent of GÍantee.

5. Grantee covenants and agrees that there shall be no discriminat¡on against orsegregation of any person or group of persons, on account of any basis listed in subdlvision (a)

or (d) of Section 1 2955 of the Government Code, as those bases are defined in Sections 12926,12926.1, subdivis¡on (m) and paragraph (1) of subdiv¡sion (p) of Section 12955, and Section12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy'tenure, or enjoyment of the Property nor shall the Grantee establish or perm¡t any such practice

or practices of d¡scriminat¡on or segregation with reference to the location, subtenants, or

vendees of the Property or in connection with the employment of persons for the construct¡on,operation and management of the Propeñy.

Notwithstanding the foregoing paragraph, with respect to familìal status, the foregoingparagraph shall not be construed to apply to housing for older persons, as defined in Section'12955.9 of the Government Code. With respect to familial status, nothing in the foregoingparagraph shall be construed to affect Sect¡ons 51 .2, 51.3, 51 .4, 51 .10, 51 1 1 , and 799.5 of thecivil code, relating to housing for senior citizens. Subdivision (d) of section 51 and sect¡on1360 of the civit code and subdivisions (n), (o), and (p) of section 12955 of the GovernmentCode shall apply to the foregoing paragraph.

All deeds, rental agreements, leases, or contracts made or entered into by the Granteeas to the Property or any portion thereof shall contain and be subject to the followingnondiscrim¡nation and no segregation clauses:

a. ln deeds: "The grantee herein covenants by and for himself or herself, his or herheirs, executors, administrators, and assigns, and all persons claiming under or through them,

that there shall be no dìscriminat¡on against or segregation of, any person or group of persons

on account of any basis listed in subdivis¡on (a) or (d) of sect¡on 12955 of the GovernmentCode, as those bases are defined in Sections 12926, 12526.1, subdivision (m) and paragraph

(1) of subdivision (p) of Sect¡on 12955, and Sect¡on 12955 2 of the Government Code, ln thesale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises hereinconveyed, nor shall the grantee or any person cla¡ming under or through him or her, establish orpermit any practice or practices of discrimination or segregation with reference to the selection,location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in

the premises herein conveyed. The foregoing covenants shall run with the land."

Notwithstanding the foregoing paragraph, with respect to familial status, the foregoingparagraph shall not be construed to apply to housing for older persons, as def¡ned in Section12955.9 of the Government code. with respect to familial status, nothing in the foregoingparagraph shall be construed to affect Sections 51 .2,51.3,51.4, 51 10, 51 11, and 799.5 of the

Civil Code, relating to housing for sen¡or citizens. Subdivision (d) of Section 51 and Section1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the GovernmentCode shall apply to the foregoÌng paragraph.

6299101

b. In leases: "The lessee herein covenants by and for himself or herself, his or her

heirs, executors, admìnistrators and assigns, and all persons claìming under or through him orher, and this lease is made and accepted upon and subject to the followìng cond¡tions: Thatthere shall be no discr¡m¡nation against or segi'egation of any person or group of persons, onaccount of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code,

as those bases are defined ìn Sections 12926, 12926.1, subdivision (m) and paragraph (1) ofsubdivision (p) of Section 12955, and Section 12955.2 of the Government Code, ¡n the leasing,subleas¡ng, transferr¡ng, use, occupancy, tenure, or enjoyment of the premises herein leasednor shall the lessee himself or herself, or any person claiming under or through him or her,

establ¡sh or permìt any such practice or practices of d¡scr¡m¡nation or segregation with referenceto the selection, locat¡on, number, use, or occupancy, of tenants, lessees, sublessees,subtenants, or vendees in the premises herein leased."

Notw¡thstanding the foregoing paragraph, with respect to familial status, the foregoingparagraph shall not be construed to apply to hous¡ng for older persons, as defined in Section12955.9 of the Government Code. With respect to famil¡al status, nothing in the foregoingparagraph shall be construed to affect Sections 51.2, 51 .3,51.4, 51.10,51.11, and 799.5 of theCivil Code, relating to housing for senior cit¡zens. Subdivision (d) of Section 51 and Section1360 of the Civil Code and subdivisions (n), (o), and (p) of Sectìon 12955 of the GovernmentCode shall apply to the foregoing paragraph.

c. ln contracts: "There shall be no d¡scrimination against or segregation of anyperson or group of persons, on account of any basis l¡sted ¡n subdivision (a) or (d) of Sect¡on

12955 of the Government Code, as those bases are defined in Sections 12926, 12926 1'

subdivision (m) and paragraph (1) of subdivlsion (p) of Sect¡on 12955, and Section 12955 2 ofthe Government Code, in connection with the performance of this contract nor shall thecontract¡ng party himseìf or herself, or any person claiming under or through him or her'establish or permit any such practice or practices of discr¡mination or segregation with referenceto the selection, locat¡on, number, use, or occupancy of tenants, lessees, sublessees,subtenants, contractors, subcontractors or vendees w¡th respect to the premises."

Notw¡thstand¡ng the foregoing paragraph, with respect to familial status, the foregoingparagraph shall not be construed to apply to housing for older persons, as defined in Section12955.9 of the Government Code. With respect to fam¡lial status, nothing in the foregoingparagraph shall be construed to affect Sections 51.2, 51.3,51.4, 51.10,51.11, and 799 5 of thecivÌl code, relat¡ng to housing for senior citizens. subdivision (d) of sect¡on 51 and section1360 of the Civil Code and subdivìsions (n), (o), and (p) of Section 12955 of the GovernmentCode shall apply to the foregoing paragraph.

The covenants established herein shall, without regard to technical class¡fication anddesignation, be binding on Grantee and any successors in interest to the Property, or any part

thereof, for the benefit and in favor of Grantor and its successors and assigns. The covenantsagainst discrimination shall run w¡th the land and rema¡n ¡n effect in perpetuity

4. All conditions, covenants, and restrictions contained in this Grant Deed shall be

covenants running with the land, and shall, in any event, and without regard to technicalclassification or designation, legal or otherwise, be, to the fullest extent permitted by law and

equity, binding for the benefit and in favor of, and enforceable by Grantor, its successors and

assigns, against Grantee, ¡ts successors and assigns, to or of the Property conveyed herein orany portion thereof or any interest therein, and any party ¡n possess¡on or occupancy of saidProperty or portion thereof.

6299 7{) 4

SIGNATURES APPEAR ON NEXT PAGE

629910 4

Date:

SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCYOF THE CITY OF LAKE ELSINORE,a publ¡c body, corporate and pol¡tic

rant M. YatesIts: Executive Director

ATTEST:

Vìrg¡n¡a J. BloomIts: Successor Agency Secretary

APPROVED AS TO FORM:



ACCEPTANCE

The undersigned hereby accepts conveyance of the property descrlbed in th¡s Grant Deedsubject of the covenants, conditìons and restrictions hereinabove set forth.

CIVIC PARTNERS-ELSINORE, LLC,a California l¡mited liab¡l¡ty company


6299',70 4

A notary public or other officer complet¡ng this cert¡ficate verifies only the ¡dent¡ty of theindividual who signed the document to which this certificate is attached, and not thetruthfulness, accuracy, or val¡dity of that document.

STATE OF CALIFORNIA

COUNTY OF ORANGE

AQ

On before me,personally appeared

proved to me on the basis ofsatisfactory evidence to be the person(s) whose subscribed to the withininstrument and acknowledged to me that he/she/they executed the same in his/her/theirauthorized capacity, and that by his/her/the¡r signature on the instrument the person(s), or theentity upon behalf of wh¡ch the person(s) acted, executed the instrument.

I cert¡fy under PENALTY OF PERJURY under the laws of the State of Cal¡fornia that theforegoing paragraph is true and correct.

WITNESS my hand and official seal.

S¡gnature

a

629970.4

EXHIBIT 1

Leqal Description

lTo FoLLOWI

629970 4

EXHIBIT B

FORM OF GRANT DEED

(MASTER DEVELOPER PARCEL)

629910 4

RECORDING REOUESTED BYAND WHEN RECORDEDRETURN TO:

Successor Agency of theRedevelopment Agency of the Cityof Lake Elsinore1 30 S. L4ain StreetLake Elsinore, California 92530Attention: Agency Secretary

APN: 371-100-0'15

pace Above This L¡ne for Recorder's Use Only(Exempt from recording fee per Gov. Code $ 27383)

Mail Tax Statements To:Successor Agency of the Redevelopment Agencyof the City of Lake Elsinore1 30 S. lVlain StreetLake Elsinore, CA 92530Attn: Agency Secretary

GRANT DEED

FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, CIVICPARTNERS-ELSINORE, LLC, a California lim¡ted liability company, hereby grants to THESUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKEELSINORE, a public body, corporate and politic, that certain real property located in the City ofLake Els¡nore, County of Riverside, State of Californ¡a more part¡cularly described ¡n Exhibit 1

attached hereto and ¡ncorporated herein by reference, subject to real property taxes andassessments for the current tax year and all easements, covenants, encumbrances and

restrict¡ons of record.

Date:

CIVIC PARTNERS-ELSINORE, LLC,a California lim¡ted liability company

Þr¡


ol917() 4

ACCEPTANCE

The undersigned hereby accepts conveyance of the property described in this Grant Deed

subject of the covenants, conditions and restrictions hereinabove set forth.

SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCYOF THE CITY OF LAKE ELSINORE,a public body, co¡'porate and politic

ByName: Grant M. YatesIts: Execut¡ve D¡rector

ATTEST:

Name: Virginia J. BloomIts: Agency Secretary




629910.A

A notary public or other officer complet¡ng this certificate verifies only the identity of the¡ndividual who sìgned the document to which th¡s certif¡cate is attached, and not thetruthfulness, accuracy, or val¡dity of that document.

STATE OF CALIFORNIA

COUNTY OF ORANGE.)ù.

On before me,personally appeared

proved to me on the basis ofsat¡sfactory evidence to be the person(s) whose name(s) is/are subscribed to the withininstrument and acknowledged to me that he/she/they executed the same in his/her/theirauthorized capacity, and that by his/her/their signature on the instrument the person(s), or theentity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that theforegoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature

a

62997A.4

EXHIBIT I

Legal Description

lTo FoLLow

APN: 371-100-004-4

629910.4

EXHIBIT C

FORM OF RELEASE TO BE EXECUTED BY

MASTER DEVELOPER AND SUCCESSOR AGENCY AT CLOSING

62997{) 4

LIMITED RELEASE

THIS LIMITED RELEASE (this "Release") is made and entered into effect¡ve as ofby and between the Successor Agency of the Redevelopment Agency of the

City Of Lake Elsinore, a public body, corporate and politic ("Successor Agency"), on the onehand, and Civic Partners-Elsinore, LLC, a Californìa I¡m¡ted liability company ("MasterDeveloper"), on the other hand. Any capìtalized terms that are not defined here¡n shall havethe defin¡tion as set forth in that certa¡n Amended and Restated Disposition and DevelopmentAgreement effective March 8, 20'1 1 executed by and among, Successor Agency, MasterDeveloper and l\,4cMill¡n Summerly LLC ('DDA').

1. Master Developer Release of Successor Agency'

(a) The physìcal condition of the Channel Edge Exchange Parcel is being transferred'AS lS, WHERE lS, AND WITH ALL FAULTS,'with no other warranty express or implied by thesuccessor Agency regarding the presence of Hazardous or Toxic substances or Mater¡als,

complìance with Envìronmental Laws, or the condition of the soiì, geology, the presence ofknown or unknown se¡smic faults, or the suitab¡lity of the Channel Edge Exchange Parcel forany particular development or use by Master Developer. Accordingly, the Successor Agencyshall have no liability or obligation after the recordatìon of the grant deed for the Channel ËdgeExchange Parcel.

(b) Except to the extent the Successor Agency has breached any of its covenants,representations, or warranties set forth in the DDA and except as provided hereinbelow, l\ilaster

Developer hereby waives, releases, and discharges forever the Successor Agency, and its and

their respective offìcers, employees, tenants, licensees, occupants, contractors, consultants,volunteers, agents, and representatives (the "Releasees"), from all present and future claims,

demands, suits, legal and admìnistrative proceedings, and liabilities for damages, losses, costs,

fees, and expenses, present and future, arising out of or in any way connected with the physical

or environmental condition of the Channel Edge Exchange Parcel, any Hazardous or ToxicSubstances or Materials on, under, or about the Channel Edge Exchange Parcel, or theexistence of Hazardous or Toxic Substances or Materials contamination due to the generation

of Hazardous or Toxic Substances or Materials from the Channel Edge Exchange Parcel,

howsoever they came to be placed there, except that ar¡sìng out of the act¡ve negligence orwillful misconduct of any of such Releasees. Notwithstanding the foregoing, however, thisrelease shall not apply to any claim for indemnity or contr¡but¡on that Master Developer mayhave against any of the Releasees in the event a lawsuit, admin¡strat¡ve proceeding, arb¡tration,or other similar action ¡s brought against Master Deveìoper with respect to the acquisit¡on of theChannel Edge Exchange Parcel by Master Developer by any of the Releasees or any thtrdparty.

(c)the Californ¡a

Master Developer is aware of and familiar with the provisions of Section 1542 ofCivil Code, wh¡ch prov¡des as follows:

.A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THECREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HERFAVOR AT THE TIIViE OF EXECUTING THE RELEASE, WHICH IF KNOWN BY

HIIV OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HËRSETTLEI\,,1ËNT WITH THE DEBTOR.'

629970.4

To the extent appl¡cable to the transfer of the Channel Êdge Exchange Parcel by the SuccessorAgency, Master Developer hereby waives and relinquishes all rights and benefits which it mayhave under Section 1542 of the California Civil Code:

lviaster Developer's I nitials Successor Agency's lnitials

2. Successor Agency Release of Master Developer.

(d) The phys¡cal condition of the Master Developer Parcel is being transferred "AS

lS, WHERE lS, AND WITH ALL FAULTS,'with no other warranty express or implied by l\ilasterDeveloper regardrng the presence of Hazardous or Tox¡c Substances or lVlaterials, compliancewith Env¡ronmental Laws, or the condit¡on of the soil, geology, the presence of known orunknown seismic faults, or the suitab¡lity of the l\4aster Developer Parcel for any particular

development or use by the Successor Agency. Accordingly, Master Developer shall have no

liability or obligat¡on after the recordation of the grant deed for the Master Developer Parcel

(e) Except to the extent l\4aster Developer has breached any of its covenants,representations, or warranties set forth in the DDA and except as provided hereinbelow, theSuccessor Agency hereby waives, releases, and discharges forever Master Developer, and itsand their respect¡ve officers, employeês, tenants, licensees, occupants, contractors,consultants, volunteers, agents, and representatives (the "Releasees"), from all present and

future cla¡ms, demands, suits, legal and administrative proceed¡ngs, and liabìlities for damages,losses, costs, fees, and expenses, present and future, ar¡sing out of or ìn any way connectedwith the physical or environmental condition of the Master Developer Parcel, any Hazardous orTox¡c Substances or Materials on, under, or about the Master Developer Parcel, or theex¡stence of Hazardous or Toxic Substances or Materials contamination due to the generation

of Hazardous or Tox¡c Substances or Materials from the Master Developer Parcel, howsoeverthey came to be placed there, except that arising out of the active negligence or willfulmisconduct of any of such Releasees. Notwithstanding the foregoing, however, this releaseshall not apply to any cla¡m for indemnity or contribut¡on that the Successor Agency may haveagainst any of the Releasees in the event a lawsu¡t, administrative proceeding, arbitrat¡on, orother similar action is brought against the Successor Agency with respect to the acquisition ofthe Master Developer Parcel by Successor Agency by any of the Releasees or any third party.

(D The Successor Agency is aware of and famil¡ar with the provisions of Section1542 of the California Civil Code, which provides as follows:

,A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THECREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HERFAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY

HIM OR HER IVIUST HAVE MATERIALLY AFFECTED HIS OR HERSETTLEI\,,1ENT WITH THE DEBTOR.'

629970 4

To the extent appl¡cable to the transfer of the Master Developer Parcel by Master Developer,the Successor Agency hereby waives and relinquishes all rights and benefits wh¡ch it may have

under Section 1542 of the California Civil Code:

Master Developer's Initials Successor Agency's lnitials

lN WITNESS WHEREOF, the parties hereto have executed this LÍmited Release as ofthe date specified here¡n.

SUCCESSOR AGENCY OF THEREDEVELOPMENT AGENCY OF THECITY OF LAKE ELSINORE, a public body,corporate and politic

By:Name: Grant M. YatesIts: Executive Director

ATTEST:

By:Name: Virgin¡a J. BloomIts: Successor Agency Secretary



Barbara Z. LeiboldIts: Successor Agency Counsel

CIVIC PARTNERS-ELSINORE, LLC,a California limited liability company

Þ', _Name: Steven P, SemingsonIts: Manager

629910.4

EXHIBIT D-1

SURVEY OF CHANNEL EDGE PARCEL

lTo FoLLOWI

6299 74.4

EXHIBIT D-2

LEGAL DESCRIPTION OF CHANNEL EDGE EXCHANGE PARCEL

lro FoLLow

6299 7(1.4

LAI(l- ¡ t"\tt\trl{- - City of Lake Elsinore

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