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(iv) In no case shall the total amount of the loan exceed the total obligation listed in Section <br />4.1(c) of the Grant Contract Agreement. <br />(c) All jobs created through the Compliance Date must pay at least $17.00 per hour, including <br />Benefits, on the Compliance Date. Benefits are defined as one or more of the following: <br />health, dental, life and disability insurance, retirement program and profit sharing paid by <br />the Borrower. <br />(d) If the Borrower fails to meet the job creation and wage goal level commitments on the <br />Compliance Date, the Grantee may, after approval by the State and after holding a public <br />hearing, extend the Compliance Date for up to one year. If the Borrower fails to meet the <br />job creation goal and wage level commitment by the revised Compliance Date, the award <br />amount shall be reduced proportionally on a per job basis, and the Borrower will be <br />required to repay the Grantee all or a proportional share of the loan funds on an <br />accelerated term. If the Borrower is required to repay a proportional share, the amount <br />shall be determined based upon the "wage bracket" values defined in Section 2.2(b). <br />Forgivable loan proceeds are required to be repaid first. The Grantee will then also be <br />required to return to the State all or a proportional share of the loan funds. The interest <br />rate on the "accelerated" portion of the loan shall increase as defined in the Promissory <br />Note. <br />(e) In the event that no jobs are created by the Borrower by the revised Compliance Date, or all <br />jobs created do not meet the commitment noted in 2.2(c), the Grantee will be required to <br />return all loan funds to the State on an accelerated basis. <br />2.3 Loan Forgiveness <br />If the job creation goals and wage level commitments detailed in Section 2.2 in Exhibit A of this <br />Grant Contract Agreement are met on the Compliance Date, $300,000 of the loan will be <br />forgiven. $50,000 of the loan will be repaid to the Grantee under Section 4 of this Exhibit A. If <br />job creation goals and wage level commitments are partially met, forgiveness and repayment <br />will be prorated. <br />3 Require the Grantee's attorney to review the loan agreement, promissory note, security <br />agreement, mortgage, guaranty and/or other documents, if any, considered necessary to secure the <br />loan to ensure they are valid, binding, and enforceable. <br />4 If applicable, retain 40% of each principal and interest payment made by the Borrower, up to <br />$100,000. Repay to the State 60% of each principal and interest payment made by the Borrower until <br />the Grantee has received $100,000 in repayments. Once the Grantee has received $100,000 in <br />repayments, the Grantee will repay the State 100% of every payment on the loan until paid in full. In <br />the event the loan is not paid in full or job and wage goals in Section 2.2 are not met, principal and <br />interest the Grantee retains will be reduced proportionally and returned to the State. <br />5 For any portion of the loan which is repayable under the Loan Agreement, or which becomes <br />repayable pursuant to Section 2.2(d) or (e) of this Exhibit A, the Grantee shall make all reasonable <br />effort, in consultation with the State, to collect the repayable portion of the loan. If, after all <br />reasonable effort has been made to collect, the Borrower continues to owe any repayable portion of <br />the loan, the Grantee will have no obligation to repay the loan to the State from the Grantee's own <br />funds, notwithstanding any funds owing under Section 4 of this Exhibit A. The Grantee shall continue to <br />be obligated to remit to the State any loan funds that may be recovered from the Borrower in the <br />future. <br />GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES <br />REV 7.01.202 5 11 <br />