RIDGE VIEW COMMONS - CONSTRUCTION LOAN

and approved by Lender, pursuant to which Architect is to design the Improvements. Borrower shall require Architect to perform in accordance with the terms of the Architect's Agreement and shall not amend, modify or alter the responsibilities of Architect under the Architect's Agreement without Lender's prior written consent. Upon Lender's request, Borrower shall execute an assignment of the Architect's Agreement and Plans and Specifi- cations to Lender as security for Borrower's obligations under the Loan Documents and shall cause the Architect to consent to any such assignment. 8.07 Changes in Plans and Specifications. Notwithstanding the provisions of Section 3.03 to the contrary, the prior written consent of Lender shall not be required for any changes in the Plans and Specifications unless such change (i) constitutes a material change in the building material or equipment specifications, the architectural or structural design, value, architecture, or quality of any of the Improvements, or (ii) would result in an increase in any item of construction cost in excess of $2,000 for any single change or in excess of $5,000 for all such changes in such items of construction cost, (III) would affect the structurual integrity, quality of building material or equipment or over all efficiency of operating systems or utility systems of the Improvements or (iv) requires the approval (which has not been given as of the date of any such change) of HUD or CHFA (defined below) or any other person or entity, including, but not limited to, any person or entity whose consent is required as a condition to the HUD Financing or the CHFA Financing. Notwithstanding the foregoing, Borrower shall submit all proposed changes in the Plans and Specifications to Lender at least ten (10) days prior to the commencement of construction relating to such proposed change whether or not any such change is subject to Lender's approval. Any proposed change to the Plans and Specifications shall be deemed approved by Lender if not disapproved by Lender within ten (10) days of Lender's receipt of complete information regarding such proposed change. 8.08 CHFA Financing. Pursuant to the terms of those documents defined in the Assignment of CHFA Loan Documents as the "CHFA Loan Documents ", the California Housing Finance Agency, a public agency of the State of California, ( "CHFA "), has agreed to provide Borrower permanent financing with respect to the Property and Improvements in a principal amount not to exceed $10,000,000 ( "CHFA Financing "). Borrower agrees that: (a) Borrower shall commit no breach or default under the CHFA Loan Documents and shall, at Borrower's expense, maintain the CHFA Loan Documents in full force and effect until all sums owing to Lender with respect to the Loan have been paid; and (b) Borrower shall not consent to any termination, amendment or modification of or change in the CHFA Loan Documents without the prior written consent of Lender; and (c) Borrower shall necessary or appropriate, as Documents, to provide for the Lender in immediately available will be sufficient to repay the Loan. take all such actions as are required under the CHFA Loan funding of the CHFA Financing to federal funds in an amount which Loan prior to the maturity of the 8.09 Option to Extend. Provided no Default or Event of Default has occurred or exists under the Loan Documents, or would exist after notice or passage of time or both, Borrower shall have the right to extend ( "Option to Extend ") the term of the Loan from that date which is after the Effective Date (the "Original Maturity Date ") to that date which is twelve (12) months after the original Maturity Date (the "Extended Maturity Date ") upon satisfaction of the following conditions precedent: 2