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a <br />Recipient: City of Santa Ana, California Grant Number: B-84-AA-06-0615(P) <br />Amendment #1 <br />Continuation Sheet ---Exhibit E <br />01 off the entire outstanding indebtedness of principal and interest shall be made at <br />02 maturity of the UDAG Permanent Loan. <br />03 (v) Contingent Interest/Participation in Cash Flow: Rangel <br />04 shall pay to Recipient for a period of time equal to the Term of the UDAG Permanent <br />05 Loan five percent (5%) of the Net Annual Cash Flow of Project Element B. <br />06 "Net Annual Cash Flow" means all operating income and receipts of Project <br />07 Element B less debt service on the first mortgage and the UDAG Permanent Loan, real <br />OB estate taxes, a 12% preferred return on Rangel's cash equity, and reasonable <br />09 operating expenses (including a management fee not to exceed three percent (3%) of <br />10 operating income) allowable for Federal income tax purposes, excluding reserves for <br />11 capital improvements, depreciation and other non -cash items. Participation <br />12 payments shall be due within 90 days of the end of the operating year of Project <br />13 Element B. <br />14 REQUIRED ADDITIONAL PROVISIONS APPLICABLE TO UDAG INTERIM AND PERMANENT LOANS. <br />75 (cc) Security: The UDAG Loan shall be secured by a co -second deed <br />16 <br />of trust or mortgage in favor of Recipient and Guarantors (not to exceed $754,800, <br />17 <br />as aforesaid) upon all land, buildings, fixtures, equipment and other assets of <br />18 Rangel comprising Project Site B and Project Element B. The security position of <br />19 <br />the Recipient may be subordinated to the first mortgage security interest of the <br />20 Underwriters in an aggregate amount not to exceed $754,800 plus further advances by <br />21 <br />the Underwriters which are invested in Project Element B and are required for its <br />22 <br />completion. <br />�3 The deed of trust or mortgage shall also contain standard provisions to <br />24 <br />protect the interest of the second mortgagee, including, for example, a provision <br />25 <br />that a default under the first mortgage which could permit a foreclosure by the <br />26 first mortgagee shall constitute a default under the second mortgage and the unpaid <br />27 principal balance and interest of the UDAG Loan shall become immediately due and <br />28 <br />payable. <br />29 The deed of trust or mortgage shall not contain an exculpation clause in <br />30 <br />favor of Rangel. <br />31 <br />To the extent permitted by law, all of the personal property described in the <br />32 <br />mortgage shall be deemed to be fixtures and part of the real property. As to any <br />EXHIBIT L Page 9 of 22 <br />