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ASSIGNMENT AND CONSENT OF CONSTRUCTION CONTRACT <br />The undersigned, EDEN HOUSING, INC., a California nonprofit <br />corporation, (herein the "Borrower "), and BOGARD CONSTRUCTION, INC., a <br />California corporation (herein the "Contractor "), hereby enter into and make <br />and consent to this assignment for the benefit of the CITY OF PLEASANTON <br />(herein the "Lender "), its successors and assigns, with reference to the <br />following facts: <br />a. Borrower has entered into a Construction Contract dated June <br />27, 1988 with the Contractor for the construction of certain improvements on <br />the real property described in Exhibit A attached hereto and by this reference <br />made a part hereof. <br />b. Borrower is borrowing from Lender the principal sum of <br />$14,360,000.00 evidenced by a Promissory Note in the amount of $10,360,000.00 <br />and a second Promissory Note in the amount of $4,000,000.00, each secured by a <br />Deed of Trust, in order to finance the costs of the improvements pursuant to <br />that Building Loan Agreement between Borrower and Lender of even date <br />herewith. <br />NOW, THEREFORE, in consideration of the loan and as further secu- <br />rity for the loan, the Promissory Notes and all advances thereunder, and as <br />further security for the performance by Borrower of all of its obligations <br />contained in the Building Loan Agreement and all other instruments executed <br />pursuant thereto, Borrower hereby assigns to Lender all of Borrower's right, <br />title, and interest (but not its obligations) in and to the above described <br />Construction Contract and any amendments thereto, all deposits and retainages <br />thereunder, and all change orders executed pursuant thereto, and Contractor <br />consents to the above assignment, and Borrower and Contractor further agree <br />with and represent to the Lender as follows: <br />1. If any event of default occurs under the above - referenced documents, <br />then without any additional fee or consideration being payable to Contractor <br />other than as required under the Contract, Lender may utilize the Construction <br />Contract for the above stated purpose and Contractor will continue to perform <br />any and all obligations on Lender's behalf which Contractor had previously <br />agreed to perform on Borrower's behalf with reference to the completion of the <br />improvements. <br />2. If Borrower defaults in making any payment or in performing any <br />other obligation under the Construction Contract, Contractor shall promptly <br />give Lender written notice thereof, and if Contractor learns of any default in <br />payment due to any subcontractor or other person supplying labor or materials <br />for the project, Contractor shall similarly advise Lender thereof. <br />3. Contractor shall not agree to any changes in the Construction <br />Contract or in the plans and specifications without giving Lender at least <br />seven days' advanced written notice thereof; provided, however, if a change <br />