1. MIDA Bond Oak Grove Lutheran School

"Net Proceeds" means with respect to any insurance payment or eondemnation award, the amount remaining therefrom after payment of all expenses (including attorneys' fees and any extraordinary fee or expense of the Corporation or the Lender) incurred in the collection thereof. "Outstanding Bonds" or "Bonds Outstanding" means the Bonds which have been authenticated and delivered under the Resolution, except: (0) Bonds cancelled by the Lender or delivered to the Lender for cancellation; (b) Bonds for the payment or redemption of which cash or Governmental Obligations shall have been deposited with the Lender (whether on or prior to the maturity or redemption date of any such Bonds); provided, however, that if such Bonds are to be redeemed prior to maturity thereof, notiee of such redemption shall have been given or arrangements satisfactory to the Lender shall have been made therefor, or waiver of such notice satisfactory in form to the Lender, shall have been filed with the Lender; and (c) Bonds for which other Bonds have been authenticated and delivered in exchange therefor as provided for in the forn1s of the Bonds and in Sections 2.6 and 2.7 of the Resolution; provided, however, that for the purpose of determining whether there has been notice to or action by the Holders of the requisite principal amount of Bonds, Bonds owned by or pledged to the Corporation shall be disregarded and not deemed to be Outstanding. "Plans" means the plans and specifications for the construction and equipping of the Proj ect. "Project" means the construction and equipping of multipurpose fine arts center and related facilities in accordance with the Plans. "Qualified Project Costs" means the costs and expenses of the Project and the cost of acquisition and renovation of the Elementary School, but specifically excluding costs and expenses for portions of the Facilities to be used for activities constituting unrelated trades or businesses of the Corporation determined by applying section 513(a) of the Code; provided, however, that Issuance Expenses shall not be deemed to be Qualified Project Costs. "Resolution" means the Resolution of the Issuer, adopted July 17,2006, authorizing the issuance of the Bonds. / "Series 2006Bonds" means the $7,500,000 principal amount ofCass County, North Dakota School Facilities Revenue Bonds (Oak Grove Lutheran School Project), Series 2006. "State" means the State of North Dakota. "Treasury Regulations" means all relevant regulations and proposed regulations under the Code and any successor provisions to such regulations or proposed regulations. 1-4