1. MIDA Bond Oak Grove Lutheran School

(n) the Corporation will incur within six months a binding obligation to expend an amount at least equal to 5% of the net sale proceeds of the Bonds on the Project; the Corporation will proceed with due diligence to acquire and construct the Project; and the Corporation reasonably expects at least 85% of the proceeds of the Bonds to be spent for costs of the Facilities within three years from the date thereof; (P) the Corporation will maintain its status as an organization described in Section 50 I (c )(3) of the Code and its exemption from federal income taxation under Section 501 (a) of the Code; (q) the Corporation will not otherwise use Bond proceeds, including earnings thereon, or take, or permit or cause to be taken, any action that would adversely affect the exemption from federal ineome taxation of the interest on the Bonds, nor otherwise omit to take or cause to be taken any action neeessary to maintain such tax-exempt status; and, if it should take or permit, or omit to take or cause to be taken, as appropriate, any sueh action, the Corporation shall take all lawful actions necessary to reseind or correct sueh actions or omissions promptly upon having knowledge thereof. SECTION 7.11. REDEMPTION OF BONDS. The Issuer, at the request at any time of the Corporation and if the Bonds are then callable, shall forthwith take all steps that may be necessary under the applicable redemption provisions of the Resolution to effect redemption of all or part of the then Outstanding Bonds, as may be specified by the Corporation, on the earliest redemption date on which such redemption may be made under sueh applicable provisions, provided that the Corporation shall have made available funds in adequate amount therefor or shall have made arrangements satisfactory to the Lender therefor. SECTION 7.12. To OBSERVE LAWS. ORDINANCES AND REGULATIONS. The Corporation will observe all applicable laws, regulations, ordinances and orders of the United States, State of North Dakota and agencies and political subdivisions thereofand each department or agency thereof, applicable to the Corporation, its business and property. The Corporation shall have the right to contest by appropriate procedures the adoption, validity or applicability of any laws, regulations, ordinances and orders referred to in this Seetion. SECTION 7.B.RECORDING AND FILING FEES. The Corporation shall pay all recording, filing and registration taxes and fees, together with all expenses incidental to the preparation, execution, acknowledgment and filing of any notice pursuant to the Uniform Commercial Code and of any instrument of further assuranee, including any filing or instrument required of the Issuer, and all taxes, duties imposts, assessments and charges lawfully imposed upon the Bonds or upon the Resolution or this Loan Agreement. (Remainder of this page intentionally left blank.) 7-6