2000 Washington Ave - Lots of Love Child Care Center

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3 connection with the design and construction of the Project and such other costs related to the Project as City may approve in writing. 2.2 DISBURSEMENT OF PROCEEDS. Upon satisfaction of the conditions set forth in Section 2.3, provided that Owner has provided City with a written requisition specifying the amount and use of the requested Loan Proceeds, accompanied by copies of bills and invoices from third parties and such other documentation as City may reasonably require, City shall disburse Loan Proceeds to Owner no more than three increments, or once per calendar month. 2.3 CONDITIONS PRECEDENT TO DISBURSEMENT OF PROCEEDS. City’s obligation to disburse the Loan Proceeds is conditioned upon the satisfaction of all of the following conditions: (a) Owner’s delivery to City of each of the following documents, fully-executed and acknowledged as applicable: (i) the Note, and (ii) this Agreement; (b) Owner’s delivery to City of evidence reasonably satisfactory to City that Owner has obtained all necessary permits (including without limitation, building permits), licenses, and approvals required to undertake the Project, or that the receipt of such permits is subject only to such conditions as City shall reasonably approve; (c) City shall have approved the final plans and specifications for the Project; (d) Owner’s delivery to the City of evidence of insurance coverage in accordance with the requirements set forth in Exhibit D attached hereto; (e) Owner’s delivery to City of such documentation as City shall reasonably require regarding Owner’s organizational status and authority to execute and perform Owner’s obligations under the Loan Documents; (f) Owner’s delivery to City of all of the following: (a) Project budget; (b) construction estimates; and (c) copies of such other documents related to the development and financing of the Project as City may reasonably request; (g) No material adverse change as determined by City in its reasonable judgment shall have occurred in the condition of the Premises or the Improvements or in the financial or other condition of Owner since the date of this Agreement; and 2.4 NO OBLIGATION TO DISBURSE PROCEEDS UPON DEFAULT. Notwithstanding any other provision of this Agreement, the City shall have no obligation to disburse the Loan Proceeds upon the occurrence of an Event of Default under the Loan Documents or if the conditions to disbursement of the Loan set forth in Section 2.3 have not been satisfied within 180 days following the Effective Date, unless an extension of such date is approved by City in writing. ARTICLE III DocuSign Envelope ID: 48E3EBFC-3FF5-4238-BC9E-4D8C2D3ECF64