WA Dept of Ecology WQC-2016-EverPW-00014 6/8/2016

State of Washington Department of Ecology Page 17 of 41 'Agreement No: WQC-2016-EverPW-00014 Project Title: Cleveland Ave.Sewer Replacement and Stormwater Separation Recipient Name: City of Everett-Public Works Department "Loan Amount"means either an Estimated Loan Amount or a Final Loan Amount,as applicable. "Loan Fund"means the special fund of that name created by ordinance or resolution of the RECIPIENT for the repayment of the principal of and interest on the loan. "Loan Security"means the mechanism by which the RECIPIENT pledges to repay the loan. "Loan Term"means the repayment period of the loan. "Maintenance and Operation Expense"means all reasonable expenses incurred by the RECIPIENT in causing the Utility to be operated and maintained in good repair,working order,and condition including payments to other parties, but will not include any depreciation or RECIPIENT levied taxes or payments to the RECIPIENT in lieu of taxes. "Net Revenue"means the Gross Revenue less the Maintenance and Operation Expense. "Original Engineer's Estimate"means the engineer's estimate of construction costs included with bid documents. "Principal and Interest Account"means,for a loan that constitutes Revenue-Secured Debt,the account of that name created in the loan fund to be first used to repay the principal of and interest on the loan. "Project"means the project described in this agreement. "Project Completion Date"means the date specified in the agreement on which the Scope of Work will be fully completed. "Project Schedule"means that schedule for the project specified in the agreement. "Reserve Account"means,for a loan that constitutes Revenue-Secured Debt,the account of that name created in the loan fund to secure the payment of the principal of and interest on the loan. "Revenue-Secured Debt"means an obligation of the RECIPIENT secured by a pledge of the revenue of a utility and one not a general obligation of the RECIPIENT. "Risk-Based Determination"means an approach to sub-recipient monitoring and oversight based on risk factors associated to a RECIPIENT or project. "Scope of Work"means the tasks and activities constituting the project. "Section 319"means the section of the Clean Water Act that provides funding to address nonpoint sources of water pollution. "Senior Lien Obligations"means all revenue bonds and other obligations of the RECIPIENT outstanding on the date of execution of this loan agreement(or subsequently issued on a parity therewith,including refunding obligations)or issued after the date of execution of this loan agreement having a claim or lien on the Gross Revenue of the Utility prior and superior to the claim or lien of the loan, subject only to Maintenance and Operation Expense. Version 10/30/2015