GROUND LEASE - RIDGE VIEW COMMONS II

Section 11.3 Distribution of Insurance Proceeds. In the event that this Lease is terminated pursuant to Sections 11.1 or 11.2 hereof, the insurance proceeds received as the result of such Casualty shall be distributed as follows: (a) first, if Leasehold Mortgage(s) are in place, to the Lenders to the extent of any indebtedness then owed to such Lender in order of the Lien priority of the Leasehold Mortgages; (b) second, the balance, if any, of such insurance proceeds shall be paid to Lessee or, as applicable pursuant to Sections 11.1 and 11.2 above, assigned or paid over to Lessor. Section 11.4 Insurance Coverage Requirements. Nothing in this Article 11 does or shall be construed as permitting Lessee to maintain less than the minimum insurance coverage set forth in this Lease and the Regulatory Agreement. ARTICLE 12. EVENTS OF DEFAULT Section 12.1 Events of Default. Each of the following shall be an "Event of Default" by Lessee hereunder: (a) failure by Lessee to pay any Rent or Additional Rent when due if such failure shall continue for a period of ten (10) days after notice thereof has been given by Lessor to Lessee; (b) Lessee's default in the performance of any term, provision or covenant under this Lease (other than an obligation enumerated in this Section 12. 1), and unless such provision specifies a shorter cure period for such default, the continuation of such default for ten (10) days in the event of a monetary default or thirty (30) days in the event of a non -monetary default following the date upon which Lessor shall have given written notice of the default to Lessee, or if the nature of any such non -monetary default is such that it cannot be cured within thirty (30) days, Lessee's failure to commence to cure the default within thirty (30) days and thereafter prosecute the curing of such default with due diligence and in good faith, but in no event longer than ninety (90) days from receipt of the notice of default; (c) Lessee's failure to maintain insurance on the Leased Premises and the Improvements as required hereunder, and the failure of Lessee to cure such default within five (5) days; (d) Subject to Lessee's right to contest the following charges, Lessee's failure to pay taxes or assessments due on the Leased Premises or the Improvements or failure to pay any other charge that may result in a lien on the Leased Premises or the Improvements, and Lessee's failure to cure such default within twenty (20) days of delinquency, but in all events prior to the date upon which the holder of any such lien has the right to foreclose thereon; (e) A Transfer occurs, either voluntarily or involuntarily, in violation of this Lease and the Regulatory Agreement; (f) the subjection of any right or interest of Lessee in this Lease to attachment, execution, or other levy, or to seizure under legal process, if not released within ninety (90) days; 31 4859-3312-3005v5