Washington Department of Ecology 7/27/2023

Page 29 of 46State of Washington Department of Ecology Agreement No: Project Title: Recipient Name: WQC-2023-EverPW-00118 Regional Stormwater Facility Planning City of Everett ULID Assessments therein pledged to pay the principal of and interest on the loan (for revenue secured lien obligations); or (iii) the levy and collection of the taxes pledged to pay the principal of and interest on the loan (for general obligation-secured loans and general obligation payable from special-assessment-secured loans); or (iv) in any manner questioning the proceedings and authority under which the agreement, the loan, or the project are authorized. Neither the corporate existence, or boundaries of the RECIPIENT nor the title of its present officers to their respective offices is being contested . No authority or proceeding for the execution of this agreement has been repealed, revoked, or rescinded. I. Loan Interest Rate and Terms: This loan agreement shall remain in effect until the date of final repayment of the loan , unless terminated earlier according to the provisions herein. When the Project Completion Date has occurred, ECOLOGY and the RECIPIENT shall execute an amendment to this loan agreement which details the final loan amount (Final Loan Amount), and ECOLOGY shall prepare a final loan repayment schedule. The Final Loan Amount shall be the combined total of actual disbursements made on the loan and all accrued interest to the computation date. The Estimated Loan Amount and the Final Loan Amount (in either case, as applicable, a “Loan Amount”) shall bear interest based on the interest rate identified in this agreement as the “Effective Interest Rate ,” per annum, calculated on the basis of a 365 day year. Interest on the Estimated Loan Amount shall accrue from and be compounded monthly based on the date that each payment is mailed to the RECIPIENT. The Final Loan Amount shall be repaid in equal installments , semiannually, over the term of this loan “Loan Term” as outlined in this agreement . J. Loan Repayment: Sources of Loan Repayment 1. Nature of RECIPIENT's Obligation. The obligation of the RECIPIENT to repay the loan from the sources identified below and to perform and observe all other agreements and obligations on its part, contained herein, shall be absolute and unconditional, and shall not be subject to diminution by setoff , counterclaim, or abatement of any kind. To secure the repayment of the loan from ECOLOGY, the RECIPIENT agrees to comply with all of the covenants , agreements, and attachments contained herein. 2. For General Obligation. This loan is a General Obligation Debt of the RECIPIENT. 3. For General Obligation Payable from Special Assessments . This loan is a General Obligation Debt of the RECIPIENT payable from special assessments to be imposed within the constitutional and statutory tax limitations provided by law without a vote of the electors of the RECIPIENT on all of the taxable property within the boundaries of the RECIPIENT . 4. For Revenue-Secured: Lien Position. This loan is a Revenue-Secured Debt of the RECIPIENT’s Utility. This loan shall constitute a lien and charge upon the Net Revenue junior and subordinate to the lien and charge upon such Net Revenue of any Senior Lien Obligations. In addition, if this loan is also secured by Utility Local Improvement Districts (ULID) Assessments, this loan shall constitute Template Version 12/10/2020 DocuSign Envelope ID: 2DF45A90-96AE-464E-848B-4CA1529CAE01