14-20 Cedar Glen Bond Ordinance Addendums

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Notwithstanding anything contained herein to the contrary and subject to the HUD Mortgage, if Borrower provides a written request to MBI within thirty (30) days after the occurrence of any condemnation in which less than twenty-five percent (25%) of the market value of the improvements located on the Real Estate are condemned, to use the condemnation proceeds to restore or rebuild the Project,then MBI shall disburse the net proceeds of any such condemnation award received by MBI, after deducting from such proceeds any expenses incurred by MBI in the collection or handling of such funds (including but not limited to reasonable attorney's fees incurred by MBI in collecting or handling such funds or obtaining a settlement of a condemnation claim), to or for the benefit of Borrower for the purpose of restoring the Project in accordance with terms, conditions, plans and procedures acceptable to MBI provided that the following conditions are satisfied in a manner reasonably acceptable to MBI: (a) No material adverse change in the financial condition of Borrower has occurred prior to the loss or casualty; (b) There is no default or event which with the giving of notice or lapse of time would constitute an Event of Default under this Agreement; (c) MBI determines, in its reasonable discretion, that such restoration can be completed to MBI's satisfaction prior to the maturity date of the Note; (d) MBI determines, in its reasonable discretion, that such net condemnation proceeds together with any additional funds made available for such purpose by Borrower and deposited with MBI shall be sufficient to restore the Project in accordance with plans and specifications approved by MBI and Borrower, free and clear of all liens except the Permitted Encumbrances; (e) MBI shall not be deemed a fiduciary, and shall have no obligation to restore or repair the Project; (f) The disbursement of all proceeds shall be done in accordance with terms, conditions,plans and procedures set forth in this Agreement for the disbursement of Loan; (g) MBI is reimbursed from each such advance for (i) all costs incurred by MBI in connection with the collection or handling of such funds (including but not limited to reasonable attorney's fees incurred by MBI in collecting or handling such funds or obtaining a settlement of a condemnation claim) and (ii) all costs and expenses incurred by MBI in connection with advancing such condemnation proceeds for the restoration or rebuilding of the Project, including without limitation any inspection fees, engineer review fees, title insurance update fees and survey fees; and (h) The Project can be restored to a size and economic condition satisfactory to MBI in its sole and absolute discretion. Notwithstanding the forgoing and subject to the HUD Mortgage, if the total net condemnation proceeds payable with respect to a particular condemnation are Twenty-Five Thousand Dollars ($25,000.00) or less, then Borrower shall be entitled to retain such proceeds provided (at the time of the condemnation and/or the payment of proceeds) there is no default or event which with the giving of notice or lapse of time would constitute an Event of Default under this Agreement and Borrower applies such proceeds to restoring the Project and to the expenses incurred by Borrower to settle the condemnation claim. MBI at its option may waive any requirement set forth herein for the advancement of any condemnation proceeds. Page 71