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

,State of Washington Department of Ecology Page 26 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 agencies,the payment shall be due on the next business day for Washington State agencies. Payments shall be mailed to: Department of Ecology Cashiering Unit P.O.Box 47611 Olympia WA 98504-7611 In lieu of mailing payments,electronic fund transfers can be arranged by working with ECOLOGY's Financial Manager. No change to the amount of the semiannual principal and interest payments shall be made without a formal amendment to this agreement. The RECIPIENT shall continue to make semiannual payments based on this agreement until the amendment is effective,at which time the RECIPIENT's payments shall be made pursuant to the amended agreement. 2. Late Charges. If any amount of the Final Loan Amount or any other amount owed to ECOLOGY pursuant to this agreement remains unpaid after it becomes due and payable,ECOLOGY may assess a late charge. The late charge shall be one percent per month on the past due amount starting on the date the debt becomes past due and until it is paid in full. 3. Repayment Limitations. Repayment of the loan is subject to the following additional limitations,among others: those on defeasance,refinancing and advance refunding,termination, and default and recovery of payments. 4.Prepayment of Loan. So long as ECOLOGY shall hold this loan,the RECIPIENT may prepay the entire unpaid principal balance of and accrued interest on the loan or any portion of the remaining unpaid principal balance of the Loan Amount. Any prepayments on the loan shall be applied first to any accrued interest due and then to the outstanding principal balance of the Loan Amount. If the RECIPIENT elects to prepay the entire remaining unpaid balance and accrued interest,the RECIPIENT shall first contact ECOLOGY's Revenue/Receivable Manager of the Fiscal Office. I.Loan Security Due Regard:For loans secured with a Revenue Obligation: The RECIPIENT shall exercise due regard for Maintenance and Operation Expense and the debt service requirements of the Senior Lien Obligations and any other outstanding obligations pledging the Gross Revenue of the Utility,and it has not obligated itself to set aside and pay into the loan Fund a greater amount of the Gross Revenue of the Utility than,in its judgment,shall be available over and above such Maintenance and Operation Expense and those debt service requirements. Levy and Collection of Taxes(if used to secure the repayment of the loan):For so long as the loan is outstanding,the RECIPIENT irrevocably pledges to include in its budget and levy taxes annually within the constitutional and statutory tax limitations provided by law without a vote of its electors on all of the taxable property within the boundaries of the RECIPIENT in an amount sufficient,together with other money legally available and to be used therefore,to pay when due the principal of and interest on the loan,and the full faith,credit and resources of the RECIPIENT are pledged irrevocably for the annual levy and collection of those taxes and the prompt payment of that principal and interest. Version 10/30/2015