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201005956 (a) The Borrower hereby irrevocably assigns to the Lender any award or payment which becomes payable to Borrower on account of the Property by reason of any taking of the Property, or any part thereof, whether directly or indirectly or temporarily or permanently, in or by condemnation or other eminent domain proceedings (hereinafter called "Taking"). Forthwith upon receipt by the Borrower of notice of the institution of any proceeding or negotiations for a Taking, the Borrower shall give notice thereof to the Lender. The Lender may appear in any such proceedings and participate in any such negotiations and may be represented by counsel. The Borrower, notwithstanding that the Lender may not be a party to any such proceeding, will promptly give to the Lender copies of all notices, pleadings, judgments, determinations and other papers received by the Borrower therein. The Borrower will not enter into any agreement permitting or consenting to the taking of the Property, or any part thereof, or providing for the conveyance thereof in lieu of condemnation, with anyone authorized to acquire the same in condemnation or by eminent domain unless the Lender shall first have consented thereto in writing. All Taking awards shall be adjusted jointly by the Borrower and the Lender. All awards payable as a result of a Taking shall be paid to the Lender, which may, at its option, apply them, after first deducting the Lender's expenses incurred in the collection thereof, to the payment of the Debt, whether or not due and in such order of application as the Lender may determine, or to the repair or restoration of the Property, in such manner as the Lender may determine. Notwithstanding the previous sentence, any award payable as a result of a Taking that the Lender reasonably believes will last no longer than six (6) months, after deducting the Lender's expenses incurred in the collection thereof, shall be applied by the Lender first to make improvements necessitated by such Taking and then in accordance with the previous sentence. Any application of Taking awards shall not extend or postpone the due dates of any regularly scheduled payment or mandatory prepayment payable under the Note or change the amount of any such payment or prepayment. (b) If the Taking involves the taking of any Improvement now or hereafter located on the Land, the Borrower shall proceed, with reasonable diligence, to demolish and remove any ruins and complete repair or restoration of the Property as nearly as possible to its respective size, type and character immediately prior to the Taking, whether or not the condemnation awards are available or adequate to complete such repair or restoration. The Borrower shall promptly reimburse the Lender upon demand for all of the Lender's expenses (including reasonable attorneys' fees) incurred in the collection of awards and their disbursement in accordance with this paragraph, and all such expenses, together with interest from the date of disbursement at the interest rate in effect under the Note (unless collection of interest from the Borrower at such rate would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate which may be collected from the Borrower under applicable law) shall be additional amounts secured by this Security Instrument. (c) Notwithstanding anything to contrary, Borrower will be permitted to conduct and process all insurance proceedings or claims without Lender's involvement if the cost of repair related to the applicable casualty, proceeding or claim is reasonably estimated to be less than $250,000.00. All notice requirements of Section 4.3 apply regardless of whether Lender is involved in such proceedings or claims. 7088330v3 S