1. MIDA Bond Hospice of Red River Valley

Bonds to be excluded from gross income of the owners thereof for federal income taxation and, in addition, comply with the applicable provisions of the Code as follows: (a) the Corporation will fulfill all conditions specified in Section 145 ofthe Code; (b) the Corporation will not use (or permit to be used) the Facilities or use or invest (or permit to be used or invested) the proceeds ofthe Bonds or any other sums treated as "proceeds" under Section 148 of the Code including "investment proceeds," "sale proceeds" and "replacement proceeds," in such a manner as to cause the Bonds to be classified "arbitrage bonds" under Section 148(a) of the Code or "federally guaranteed obligations" within the meaning of Section 149(b) of the Code; (c) the Corporation will, at all times during the term of this Loan Agreement own the Facilities as ownership is determined for federal income tax purposes and the Corporation shall remain a nonprofit corporation described in Section 50 I (c)(3) of the Code and exempt from federal income taxes under Section 501 ( a) of the Code or any predecessor or successor provisions of similar import heretofore or hereafter enacted; (d) no more than three percent (3%) of the proceeds of the Bonds will be in the aggregate be used to finance or refinance properties used or to be used in an unrelated trade or business of the Corporation within the meaning of Section 513(a) of the Code or used directly or indirectly in any trade or business carried on by an entity that is not a Tax-Exempt Organization; ( e) no portion ofthe Bond proceeds will be used to provide any airplane, sky box, or other private luxury box, any facility primarily used for gambling, or any store the principal business of which is the sale of alcoholic beverages for consumption off premises, all within the meaning of Section 14 7( e) of the Code; (j) the average maturity of the Bonds does not exceed one hundred twenty percent (120%) ofthe average reasonably expected economic life of the Facilities within the meaning of Section 147(b) of the Code; (g) the Corporation shall provide the Issuer at Bond Closing with all information required to satisfy the informational requirements set forth in Section 149(e) of the Code including the information necessary to complete IRS Form 8038; (h) in order to qualify the Bonds and this Loan Agreement under the "program investments" provisions of Section 1.148-1 (b) of the Treasury Regulations, the Corporation (and any "related person" thereto) will take no action the effect of which would be to disqualify this Loan Agreement as a "program investment" under said Section 1.148-1(b), including but not limited to entering into any arrangement, formal or informal, for the 7-5