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11. Limitation of Liability. Notwithstanding any of the provisions contained in this <br />Agreement, the Lender shall have no obligation under the Ground Lease, even if Lender forecloses on its <br />security interest, unless said Lender notifies the Landlord in writing that it desires to substitute itself as <br />Tenant. Until Lender makes that election, said Lender may cure any and all defaults to keep said Lease <br />current so as to preserve the Lender's right to make an election to be substituted as Tenant at some later <br />date. <br />12. Fire Insurance. The paragraph in the Ground Lease relative to fire insurance shall be <br />modified as follows: Tenant shall at all times carry, at its own expense, fire insurance and extended <br />coverage on all buildings constructed on the leasehold estate in the amount of not less than 80% of the <br />actual cash value, with a company acceptable to Landlord and Lender. Any such policy shall name <br />Landlord and Lender as the insureds, with loss payable to the Landlord and Lender as their interests may <br />appear. Tenant shall provide evidence of such insurance to the Landlord. Said policy shall provide that <br />the policy may not be cancelled without the company first giving Landlord and Lender at least thirty (30) <br />days' written notice prior to cancellation. No such policy shall contain a deductible clause greater than <br />$1,000.00 per claim. In the event of loss, Tenant shall pay such deductible sum. Landlord may, with <br />approval of the Lender and with the consent of Tenant, cover said buildings on a master fire insurance <br />policy and charge Tenant its share of the premium, which share of the premium shall be paid within ten <br />(10) days after demand. Failure to comply with any terms of this paragraph shall be considered a material <br />breach of the Ground Lease. <br />13. Application of Insurance Proceeds in the Event of Loss. The provisions in the original <br />Ground Lease dealing with the application of insurance is amended as follows: In the case of a loss <br />covered by insurance set forth in the preceding paragraph, whether total or partial, and subject to the <br />terms and conditions of any secured instruments on said premises relating to the application of insurance <br />proceeds, Tenant shall exert its best efforts to have the insurance proceeds applied to a reconstruction or <br />repair of the loss or damage to improvements. If Tenant elects not to rebuild, the proceeds of any <br />insurance payable shall be distributed, first to the retirement of any security interest on the improvements, <br />and the balance shall be payable to Landlord. Tenant shall give notice of any loss to Landlord and Lender <br />immediately and of intention to rebuild within sixty (60) days of loss. If Tenant fails to give notice of <br />intention to rebuild within the time specified, Landlord shall then have the option to rebuild and shall give <br />Lender and Tenant notice in writing of such intention within one hundred twenty days (120) after <br />receiving written notice of loss from Tenant, subject to such policy conditions governing the replacement <br />cost provisions of any such policy. If either Landlord or Tenant elects to rebuild as above provided, such <br />party shall initiate the work of such rebuilding or repairing without delay. If both Landlord and Tenant <br />fail to give notice of intention to rebuild within the time specified, both Landlord and Tenant shall have <br />the right to declare the Lease terminated by written notice served upon the other party by mail as in the <br />Ground Lease provided. It is understood that if Tenant sublets the premises with the prior written consent <br />of Landlord, and passes the expense of fire, earthquake or other casualty insurance or of liability <br />insurance on to its subtenant, then it will require all insurance policies to name Landlord, Lender and <br />Tenant as insured parties as their interests may appear. Any sublease shall contain the exact provisions of <br />this agreement as to the standards applied to the selection of the insurer and in the amount and nature of <br />coverage. Prior to the termination of the Ground Lease, either by expiration of the term or by notice as <br />provided in the Ground Lease, rent for the premises shall not abate as between Landlord and Tenant in the <br />event of loss or destruction of any buildings placed on the premises. <br />14. Removal of Property. The provisions in the Ground Lease relating to removal of <br />property shall be amended as follows: <br />SUBORDINATION OF REVERSIONARY INTEREST (ELLENSBURG) <br />PAGE <br />12187-5487/LEGAL 124047121.2 <br />