8/2/2019 Prohibited Use Covenant

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Special ServicesCovenant. The Corporationshall operateand maintain the facilities as an educationalinstitutionwithin the territorial imits of the City of Riverside,California as ong as any Bonds remainOutstanding;provided,however, he Authority, upon review of such actsas t deems elevant,mayo rom time to time, allow theCorporation o provide alternativeservices hat provide public benefit to the City of Riverside,California and itsresidents, r deem his specialservices ovenant o be satisfied n wholeor in part.

Prohibited UsesCovenant. The Corporationcovenants nd agrees hat no portion of the proceedsof theBonds will be used (1) to finance or refinance any facility, place or building used or to be used for sectarianinstructionor study or as aplace or devotionalactivitiesor religiousworship or in connectionwith anypart of theprogramsof any school or departmentof divinity, or (2) by a Person hat is not a 501(c)(3) organizationor agovernmental nit or by a 501(c)(3) organization including the Corporation) n an unrelated radeor business, nsuchmanneror to such extent as would result in any of the Bonds being treated as an obligation not described nSection 103(a)of the Code. The Corporationagreeso providea report o the Authority regardingcompliancewiththis covenantupon any suchwritten demandby the Authorify, such eport o be providedwithin ten BusinessDaysof such equest.Eventsof Default.

(a) Any one of the following which occurs and is continuing shall constitutean Event ofDefaultpursuant o the Agreement:(i) failure by the Corporation o pay or cause o bepaid any amounts equired o bepaidunder he Agreementwhendue;or(ii) if any material representationor warranty made by the Corporation in theAgreementor madeby the Corporation n any document, nstrument or certificate furnished to theTrusteeor the Authority in connectionwith the issuance f the Bondsshall at any time prove tohavebeen ncorrect n any respectas of the time made;(iii) failure of the Corporation o observeand perform any covenant,condition oragteementon its part required to be observed or performed under the Agreement, other thanmaking the payments eferred to in (aXi) above, which continues for a period of thirty (30) daysafter wriffen notice from the Trusteeor the Authority, which notice shallspecifr such ailure andrequest hat it be remedied,unless he Authority and the Trustee shall agree n writing to an

extensionof such ime period; provided,however, hat if the failure stated n the notice cannotbecorrectedwithin suchperiod, the Authority and the Trusteewill not unreasonablywithhold theirconsent o anextensionof such ime period f correctiveadtion s institutedwithin suchperiodanddiligently pursueduntil thedefault s corrected;(iv) The Corporationshall have epudiated ts debtsor become nsolventor admit inwriting its inability to pay its debtsas heymatureor shall apply for, consent o or acquiescen theappointmentof a trustee,custodian, iquidator or receiver or itse lf or any part of its property,orshall take any action to authorize or effect any of the foregoing; or in the absenceof any suchapplication,consentor acquiescence, trustee, ustodian,iquidator or receivershall be appointedfor it or for a substantialpart of its property or revenuesand shall not be dischargedwithin aperiodof 60 days;or all, or any substantial art,of theproperlyof the Corporationshall be seized,or otherwise appropriated, or any bankruptcy, reorganization, debt arrangement or otherproceedingunder any bankruptcyor insolvency aw or any dissolutionor liquidationproceeding

shall be instituted by or against he Corporation (or any action shall be takento authorizeor effectthe institutionby it of any of the foregoing)and f institutedagainst t, shall be consented o oracquiescedn by it, or shall not be dismissedwithin aperiodof 60 days;ortheoccurrenceof an Event of Default under the Indenture.v)

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