SECTIONS 2.1(I)(I) AND 2.1(I)(II)
BY APPROPRIATE LEGAL PROCEEDINGS, SO LONG AS THE FOLLOWING SHALL REMAIN
SATISFIED:
(A)
SUCH LEGAL PROCEEDINGS SHALL BE PROSECUTED WITH DILIGENCE BY
BORROWER AND SHALL OPERATE TO PREVENT ANY TAKING OR CLOSING OR SHUTTING DOWN OF
THE PROJECT, THE PROPERTY OR ANY PORTION THEREOF, BY ANY GOVERNMENTAL AUTHORITY
OR ANY OTHER PERSON AND HAS THE EFFECT OF STAYING ANY TYPE OF SALE OR FORFEITURE
OF THE PROJECT, THE PROPERTY OR ANY PART THEREOF FOR FAILURE TO COMPLY;
(B)
BORROWER WILL HAVE DEPOSITED WITH AGENT CASH COLLATERAL, A BOND OR
SUCH OTHER SECURITY SATISFACTORY TO AGENT, IN EACH CASE, ON SUCH TERMS AS MAY BE
SATISFACTORY TO AGENT, IN ITS SOLE DISCRETION, IN AN AMOUNT AS MAY BE DEEMED
NECESSARY BY AGENT, SUFFICIENT TO PAY ANY FINES, PENALTIES, CHARGES AND INTEREST
THEREON WHICH MAY BE AWARDED OR ASSESSED AND WHICH MAY BECOME A LIEN UPON THE
PROJECT, THE PROPERTY OR ANY PART THEREOF WHICH MAY IN ANY WAY TAKE PRIORITY
OVER THE LIEN OF THE MORTGAGES, AND SUBJECT TO INCREASE AT THE REQUEST OF AGENT
WHEN IT DETERMINES A GREATER AMOUNT MAY BE REQUIRED TO MAKE SUCH PAYMENTS;
(C)
SUCH PROCEEDING SHALL NOT SUBJECT AGENT OR BORROWER TO ANY RISK OF
ANY CRIMINAL LIABILITY;
(D)
BORROWER SHALL KEEP AGENT FULLY INFORMED AS TO THE STATUS AND
PROGRESS OF ANY SUCH PROCEEDING; AND
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(E)
BORROWER WILL, UPON A FINAL DETERMINATION OF SUCH CONTEST, TAKE
ALL STEPS NECESSARY TO COMPLY WITH ANY REQUIREMENTS ARISING THEREFROM.
IF BORROWER SHALL FAIL AT ANY TIME TO COMPLY WITH THE ABOVE CONDITIONS TO
CONTEST, THE PROPERTY OR ANY PART THEREOF IS, IN THE REASONABLE JUDGMENT OF
AGENT, IN ANY IMMINENT DANGER OF BEING FORFEITED OR LOST OR THE VALUE OF THE
COLLATERAL BEING ADVERSELY IMPACTED, AGENT MAY REQUIRE BORROWER TO, AND BORROWER
WILL, THEREUPON MAKE THE PAYMENT WHICH IS THE SUBJECT OF THE CONTEST.
(J)
FUNDING AUTHORIZATION.
THE PROCEEDS OF THE INITIAL ADVANCE AND
SUBSEQUENT ADVANCES MADE PURSUANT TO THIS AGREEMENT SUBSEQUENT TO THE CLOSING
DATE ARE TO BE FUNDED BY AGENT BY WIRE TRANSFER TO THE ACCOUNT DESIGNATED BY
BORROWER BELOW (THE "DISBURSEMENT ACCOUNT"):
North Metro Harness Initiative, L.L.C.
Bank:
Associated Bank
200 North Adams
PO Box 19006,
Green Bay, WI 54307-9006
FBO:
North Metro Harness Initiative, LLC
2001 Killebrew Drive, #350, Minneapolis, MN
55425
ABA No.:
091001270
Account No.:
2283033690
Borrower shall provide Agent with written notice of any change in the foregoing
instructions at least three (3) Business Days before the desired effective date
of such change.
2.2
Interest and Applicable Margins.
(A)
BORROWER SHALL PAY INTEREST TO AGENT, FOR THE RATABLE BENEFIT OF
LENDERS WITH RESPECT TO THE TERM LOAN MADE BY EACH LENDER, IN ARREARS ON EACH
APPLICABLE INTEREST PAYMENT DATE, WITH RESPECT TO SUCH PORTION OF THE TERM LOAN
DESIGNATED AS AN INDEX RATE LOAN, THE INDEX RATE PLUS THE APPLICABLE TERM LOAN
INDEX MARGIN PER ANNUM OR, WITH RESPECT TO SUCH PORTION OF THE TERM LOAN
DESIGNATED AS A LIBOR LOAN, THE APPLICABLE LIBOR