Agmt 2002 Citizens Housing Corporation

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Loan Agreement San Leandro and Citizens' Housing Corporation Page 9 of 9 any type; provided, however, that Developer shall have 30 days to discharge or provide adequate security for any involuntary lien upon the Property. SECTION 5.03 MERGER CONSOLIDATION, SALE OF ASSETS Merge into or consolidate with any corporation or other entity, or acquire all or substantially all of the assets of any other corporation or entity; or sell, lease, assign, transfer or otherwise dispose of all or substantially all of Developer's assets. SECTION 5.04 LOANS, ADVANCES, INVESTMENTS Make any loan or advances to or investments in, any person or entity except those usually made in the ordinary course of business. ARTICLE VI: EVENTS OF DEFAULT The Loan and the interest then accrued thereon, shall become and be immediately due and payable pursuant to Section 1.01 upon the written demand of the City, without any other notice or demand of any kind or any presentment or protest, if any one of the following events (hereinafter an Event of Default) shall occur and be continuing at the time of such demand, whether voluntarily or involuntarily, or without limitation, occurring or brought about by operation of law or pursuant to or in compliance with any judgment, decree or order of any court or any body, provided, however, that such sum shall not be then payable if Developer's payments have been waived, or time for making the Developer's payments has been extended by the City. SECTION 6.01 INCORRECT REPRESENTATION OR WARRANTY Any representation or warranty contained in, or made in connection with the execution and delivery of this Agreement, or in any certificate or statement furnished pursuant hereto, shall prove to have been incorrect when made in any material respect. SECTION 6.02 DEFAULT IN COVENANTS Developer shall default in the performance of any other term, covenant, or agreement contained in this Agreement, and such default shall continue unremitting for thirty (30) days after written notice thereof shall have been given to the Developer by the City, provided, however, that if such default cannot reasonably be cured in 30 days, Developer shall provide the City with a written explanation of proposed efforts to cure the default and within five (5) days after approval of such explanation by the City, Developer shall commence to cure and thereafter diligently pursuant such cure. SECTION 6.03 VOLUNTARY INSOLVENCY If the Developer shall become insolvent or shall cease to pay its debt as they mature or shall voluntarily file a petition seeking reorganization of, or the appointment of a receiver, trustee, or liquidation far it or a substantial portion of its assets, or to effect a plan or other arrangement with creditors, or shall be adjudicated bankrupt, or shall make voluntary assignment for the benefit of creditors. 9