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Case 25-23251-MEH Doc18-10 Filed 12/22/25 Entered 12/22/25 20:08:18 Desc
Exhibit | Page 5 of 12
g. Receiver’s Right to Manage, Maintain, and Operate the Property. Receiver be
authorized to preserve, manage, maintain, operate, lease and market the Property
and to employ such managers, agents, employees, brokers, accountants and
attorneys as may in his commercially reasonable judgment be advisable or
necessary in the management, conduct, control or custody of the affairs of the
Property, Borrower and its assets. Receiver is further authorized to make payments
and disbursements in the ordinary course of business and to make such payments
and disbursements as may be needed and proper for the maintenance and
preservation of the Property and other property of Borrower; and be authorized to
pay net income from the Property to Lender, in reduction of the indebtedness owed
to Lender by Borrower. Specifically, with respect to employees of the Property on
the date of Receiver’s appointment, to the extent that cash turned over to Receiver
by Borrower equals or exceeds the amount thereof, Receiver shall pay those
employees through the next payroll period following the Receiver’s appointment.
If the Receiver, with the consent of the Lender and the City of Newport News,
decides it appropriate to reopen the Property for occupancy, the Receiver may retain
any existing property management if the Receiver determines, in the exercise of his
professional discretion, that doing so is in the best interest of the Property. If not,
the Receiver is authorized to engage a professional property management company
of his choosing. Receiver is authorized to engage Commonwealth Commercial
Partners, LLC (“Commonwealth Commercial”) or its affiliate as property manager,
or any other reputable property manager, in Receiver’s discretion under standard
property management terms and conditions and fees. If the Property is reopened for
occupancy the Receiver will be paid a fee of the greater of 5% of gross rentals or
$5,000 per month until this Court discharges the Receiver or the Property is no
longer available for occupancy, whichever occurs first;
h. Receiver Authorized to Sell the Property. Receiver be authorized, (i) with prior
written approval of the Court and Lender, to sell all or a portion of the Property and
other collateral, upon fourteen (14) days-notice of a hearing for same. and, in
connection with such sale, to facilitate an assumption of the Loan if agreed to by
the Lender, and execute on Borrower’s behalf any necessary documents in
connection with any sale or any sale and assumption, and this Court waives any
requirement that a sale by the Receiver (after obtaining such prior written approval
of the Court and Lender) be further confirmed by this Court, and (ii) to reasonably
cooperate with requests made by Lender that relate to a sale by Lender to a third
party of the Loan (and the Loan Documents). Receiver is authorized to engage
Commonwealth Commercial or its affiliate, or any other reputable broker, in
Receiver’s discretion, to facilitate the sale of the Property under standard brokerage
terms and conditions and fees and commissions. The Receiver shall receive a
nonrefundable $10,000 retainer and be compensated at the rate of $350 per hour
after the first 30 days of the Receivership. The Receiver shall also be reimbursed
for its out of pocket expenses and have a budget of $15,000 to obtain any third party
inspections it deems appropriate in consultation with the Lender. Nothing stated
herein shall be deemed to prejudice or prevent Lender, without obtaining Court
approval, from conducting a nonjudicial foreclosure sale of the Property by a
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