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8333729v2
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<br />contemplated thereby, and the fulfillment of the terms and conditions thereof do not and will not
<br />conflict with or result in a breach of any of the terms or conditions of the Borrower's articles of
<br />incorporation, its bylaws, any restriction or any agreement or instrument to which the Borrower
<br />is now a party or by which it is bound or to which any property of the Borrower is subject, and
<br />do not and will not constitute a default under any of the foregoing or a violation of any order,
<br />decree, statute, rule or regulation of any court or of any state or federal regulatory body having
<br />jurisdiction over the Borrower or its properties, including the Facility, and do not and will not
<br />result in the creation or imposition of any lien, charge or encumbrance of any nature upon any of
<br />the property or assets of the Borrower contrary to the terms of any instrument or agreement to
<br />which the Borrower is a party or by which it is bound;
<br />(4) As of the date hereof, the use of the Facility as designed and to be
<br />operated complies, in all material respects, with all presently applicable development, pollution
<br />control, water conservation and other laws, regulations, rules and ordinances of the federal
<br />government and the State of Minnesota and the respective agencies thereof and the political
<br />subdivisions in which the Facility is located. The Borrower has obtained, or will obtain in a
<br />timely manner, all necessary and material approvals of and licenses, permits, consents and
<br />franchises from federal, state, county, municipal or other governmental authorities having
<br />jurisdiction over the Facility and to enter into, execute and perform its obligations under this
<br />Agreement, the Declaration, the Security Agreement, and the Purchase Agreement, and no
<br />violation of any local ordinance, laws, regulation or requirement exists with respect to the Land;
<br />(5) The proceeds of the Note, together with any other funds to be contributed
<br />to the Project by the Borrower, or otherwise in accordance with this Agreement, will be
<br />sufficient to pay the cost of the Project in a manner suitable for use of the Facility as an
<br />educational facility, and all costs and expenses incidental thereto, and the proceeds of the Note
<br />will be used only for the purposes contemplated hereby and allowable under the Act;
<br />(6) Comparable private financing for the Project was not found by the
<br />Borrower to be reasonably available, and the Project is economically more feasible with the
<br />availability of the financing herein authorized;
<br />(7) The Borrower is not in the trade or business of selling properties such as
<br />the Facility and is undertaking the Project for investment purposes only or otherwise for use by
<br />the Borrower in its trade or business, and therefore the Borrower has no intention now or in the
<br />foreseeable future to voluntarily sell, surrender, or otherwise transfer, in whole or part, its
<br />interest in the Facility;
<br />(8) There are no actions, suits, or proceedings pending or, to the knowledge of
<br />the Borrower, threatened against or affecting the Borrower or any property of the Borrower in
<br />any court or before any federal, state, municipal, or other governmental agency, which, if
<br />decided adversely to the Borrower would have a material adverse effect upon the Borrower or
<br />upon the business or properties of the Borrower; and the Borrower is not in default with respect
<br />to any order of any court or governmental agency;
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