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3 201803953 term is hereinafter defined. The term "Project operating expenses" shall mean expenses of every kind reasonably incurred in the normal course of business with respect to the Project during the period for which debt service coverage ratio is being calculated, including, but not limited to, expenses for taxes, insurance, repairs, replacements which are not capitalized, maintenance and management fees, salaries, advertising expenses, professional fees, wages and utilities, but excluding: (i) principal, interest and fees payable with respect to the Loan; and (ii) noncash allowances for depreciation and amortization. In the event Borrower does not meet the required debt service coverage ratio as set forth in the Promissory Note, Borrower may repay within the time limit described in the Promissory Note, principal amounts due under the Promissory Note in an amount which would produce a debt service coverage ratio of 1.20x in order to satisfy such requirement. d. The "Note Rate ", as such term is defined in the Second Modified Note, shall be fixed at five and 01 /100 percent (5.01 %), for the balance of the term of the Loan; e. The Loan Conversion Covenant setting forth the minimum debt service coverage ratio to convert the Loan to a mini -perm loan as set forth in Section 2(c)(i) of the First Modified Note is hereby waived. The mini -perm minimum debt service coverage ratio of 1.20x, as modified, will remain on the Loan; f. Borrower has identified that it will need to spend additional funds estimated at $1,500,000.00, for remaining costs associated with site development of the Project, interior white box finish, and tenant improvements/leasing commissions for first generation space (collectively the "Remaining Costs "), and Borrower has requested that Lender advance the remaining $71,342.04 of the Tax Increment Financing and Enhanced Employment Area Loan (the "TIF Loan ") pursuant to that certain Second Loan Modification Agreement of even date herewith (the "TIF Balance "); and g. Lender will deposit the TIF Balance into a direct deposit account ( "DDA ") with Lender which DDA shall be controlled by Lender, and disburse such TIF Balance subject to and as set forth below: i. Borrower will pay the first $500,000.00 of any Remaining Costs and provide to Lender such evidence relating to the completion of such improvements and the payment thereof as may be required by Lender. ii. The next $1,000,000.00 of such Remaining Costs will be funded by a combination of $500,000.00 from Borrower (the "Borrower Cash Contribution ") and $500,000.00 made up of the TIF Balance and $198,657.96 deposited in the DDA by Borrower (collectively, the "DDA Funds ") and the remaining $230,000.00 to be funded by Borrower (the "Standby Funds "), such amount to be secured by an Irrevocable Standby Letter of Credit issued by Associated Bank, National Association. The funds will be disbursed on an equal basis between the Borrower Cash Contribution and the DDA Funds, and after the DDA Funds have been exhausted, then on an equal basis between the Borrower Cash Contribution and the Standby Funds. h. As security for the payment of the obligations due Lender, Borrower has executed and delivered to Lender or arranged for the execution and delivery to Lender of certain documents, agreements or instruments for securing the payment or performance of the obligations