5.0. 6.0. 7.0. 8.0. 9.0. 10.0. EDSR 09-21-1998

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(d) The Developer agrees to notify the Authority immediately in the case • of damage exceeding $25,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting from fire or other casualty. In the event of any such damage, the Developer will forthwith repair, reconstruct and restore the Minimum Improvements to substantially the same or an improved condition or value as existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and restoration, the Developer will apply the Net Proceeds of any insurance relating to such damage received by the Developer to the payment or reimbursement of the costs thereof. The Developer shall complete the repair, reconstruction and restoration of the Minimum Improvements, whether or not the Net Proceeds of insurance received by the Developer for such purposes are sufficient to pay for the same. Any Net Proceeds remaining after completion of such repairs, construction and restoration shall be remitted to the Developer. In the event of substantial or total destruction of the Minimum Improvements, the Developer may elect to not repair or reconstruct the Minimum Improvements, in which case the Authority may, as its sole remedy, terminate its obligations under the Note. (e) The Authority agrees that its rights under this Section relative to the application of Net Proceeds of insurance provided under Section 5.1(a)(i) and (b)(i), and as provided in Section 5.1(d),m shall be subordinate to the rights of a Holder of a Mortgage approved by the Authority; provided that the Authority's right to terminate the Note for a violation of the Developer's obligations under this Section shall not be subordinated to the rights of a Holder. Section V.2 Condemnation. In the event that title to and possession of the Minimum Improvements or any material part thereof shall be taken in condemnation or by the exercise of the power of eminent domain by any governmental body or other person (except the Authority) prior to the Maturity Date, the Developer shall, with reasonable promptness after such taking, notify the Authority as to the nature and extent of such taking. Upon receipt of any Condemnation Award, the Developer shall elect to either: (a) use the entire Condemnation Award to reconstruct the Minimum Improvements (or, in the event only a part of Minimum Improvements have been taken, then to reconstruct such part) within the Project Area; or (b) retain the Condemnation Award in the event that a substantial portion of the Redevelopment Property and Minimum Improvements have been taken. In that event, the Authority's obligations under this Agreement and the Note shall terminate as of the date of the taking. • 11 BeckP 548540.1