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NOW, THEREFORE, in consideration of the mutual covenants and promises of the <br />parties set forth herein and other good and valuable consideration, the receipt and sufficiency of <br />which is hereby acknowledged, the parties hereto hereby agree as follows: <br />AGREEMENT <br />1. Prepayment by South Bend. Notwithstanding any provisions of the Agreement, <br />the Parties hereto agree that South Bend shall pay to the County the Prepayment Amount prior to <br />the ls` day of the month following final execution of this Amendment. Upon receipt of such <br />payment, the County agrees to hold in abeyance the South Bend Designation and agrees that it <br />will be without effect until March 1, 2017. During such period, the County agrees that South <br />Bend shall receive its full distributive share of South Bend CEDIT without reduction or claim by <br />the County. South Bend and the County agree and acknowledge that the South Bend <br />Designation will again be in full force and effect on March 1, 2017. <br />2. Public Safety LOIT Intercept. Section 5.06 of the Agreement is amended and <br />restated in its entirety to read as follows: <br />Section 5.06 Assessments; Intercept. The Parties acknowledge the financial <br />exposure assumed by the County in this Agreement. In recognition thereof, <br />Assessments not received in accordance with the schedule described in this <br />Agreement shall be satisfied using an intercept process consisting of; <br />(a) The County Auditor notifying the Controller of the delinquent <br />Party of the delinquency. The notification shall be in writing and <br />provide five (5) days to settle the Assessment. <br />(b) Assessments not received within five (5) days of the written <br />notifications shall be satisfied by the County Auditor withholding <br />an equivalent amount of the Public Safety Local Option Income <br />Tax revenues received under IND. CODE § 6- 3.5 -6 -31 ( "Public <br />Safety LOIT ") from the next monthly Public Safety LOIT <br />distribution due to the delinquent Party and transferring that <br />withheld amount to the proper Fund(s). <br />3. Miscellaneous. <br />a. Except as expressly modified, amended or supplemented by this <br />Amendment, the Agreement shall remain in full force and effect. <br />b. Capitalized terms not defined herein shall have the meaning set forth in <br />the Agreement. <br />-3 - <br />US.56189914.04 <br />