Hopeworks Social Enterprises 5/1/2018

To receive disbursements the Owner shall submit to the City a Request for Reimbursement/Actual Expenditure Report supported by copies of vouchers, invoices, salary and wage summaries, or other documentation acceptable to the City. Predevelopment costs can be charged starting with expenses incurred from . When bills are submitted, they need to specify the type of costs and during what time they were incurred The City reserves the right to withhold payments pending delivery of Project reports or documents as may be required under this Agreement. All disbursements under this Agreement shall be subject to audit and recovery of disallowed costs. V. BUDGET REVISIONS The Owner shall submit to the City a written request for its approval of revisions to the Project Budget involving the expenditures of funds hereunder. Written approval by the City of revisions to the Project Budget must be received by the Owner before it incurs any expenditures or obligations against the revised Project Budget. An administrative approval without City Council approval may be made up to 10%. VI. APPRAISAL No appraisal is required for the project. VII. TITLE INSURANCE The City has no obligation to disburse funds under this Agreement, until the City has obtained an ALTA Extended Lender's leasehold title insurance policy on the Premises in the amount not less than $400,000 at the expense of the Owner. This title insurance policy shall show at the time of the recording of the Deed of Trust and the Use Restriction Covenant Agreement that no liens, encumbrances, or financing instruments secured by or in any way associated with the Premises except those acceptable to the City in its sole discretion. VIII. PROPERTY TAXES AND UTILITIES Property taxes and utilities on the Premises shall be brought current through the date of recording this Agreement. In the event the Owner does not bring such taxes and utilities current prior to recording, the Owner agrees to pay such taxes and utilities within ten (10) days of the date of executing this Agreement and to provide to the City an addendum to the title policy establishing such payment. During the term of this Agreement, the Owner shall pay all property taxes, if any, and utility billings as they become due and payable and shall keep the Premises free and clear of any liens for unpaid property taxes and utility billings. IX. COVENANT AGREEMENT The Owner shall execute and deliver for recording a "Use Restriction Covenant Agreement" in the form attached hereto as Exhibit E and incorporated herein by this reference (the "Covenant Agreement"). Except as otherwise set forth in a priority agreement or otherwise agreed to in writing by the City, the Covenant 4