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<br />10. Repair and operation of property. Borrower shall (a) maintain improvements in good repair; (b) make repairs required by the
<br />Government; (c) comply with all farm conservation practices and farm management plans required by the Government; and (d) operate the property
<br />in a good and husbandlike manner. Borrower shall not (e) abandon the property; (t) cause or permit waste, lessening or impairment of the property;
<br />or (g) cut, remove, or lease any timber, gravel, oil, gas, coal, or other minerals without the written consent of the Government, except as necessary
<br />for ordinary domestic purposes.
<br />11. Legal compliance. Borrower shall comply with all laws, ordinances, and regulations affecting the property.
<br />12. Transfer or encumbrance of property. Except as provided by Government regulations, the Borrower shall not lease, assign, sell,
<br />transfer, or encumber, voluntarily or otherwise, any of the property without the written consent of the Government. The Government may grant
<br />consents, partial releases, subordinations, and satisfactions in accordance with Government regulations.
<br />13. Inspection. At all reasonable times the Government may inspect the property to ascertain whether the covenants and agreements
<br />contained in this instrument are being performed.
<br />14. Hazardous substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any hazardous
<br />substances on or in the property. The preceding sentence shall not apply to the presence, use, or storage on the property of small quantities of
<br />hazardous substances that are generally recognized to be appropriate to normal use and maintenance of the property. Borrower covenants that
<br />Borrower has made full disclosure of any such known, existing hazardous conditions affecting the property. Borrower shall not do, nor allow anyone
<br />else to do, anything affecting the property that is in violation of any federal, state, or local environmental law or regulation. Borrower shall promptly
<br />give the Government written notice of any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private
<br />party involving the property and any hazardous substance or environmental law or regulation of which Borrower has actual knowledge. If Borrower
<br />learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any hazardous substance affecting the
<br />property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with applicable environmental law and regulations.
<br />As used in this paragraph, "hazardous substances" are those substances defined as toxic or hazardous substances by environmental law and the
<br />following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials
<br />containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph, "environmental law" means Federal laws and regulations
<br />and laws and regulations of the jurisdiction where the property is located that relate to health, safety or environmental protection.
<br />15. Adjustment; release; waiver; forbearance. In accordance with Government regulations, the Government may (a) adjust the interest
<br />rate, payment, terms or balance due on the loan, (b) increase the mortgage by an amount equal to deferred interest on the outstanding principal
<br />balance, (c) extend or defer the maturity of, and renew and reschedule the payments on the note, (d) release any party who is liable under the note
<br />from liability to the Government, (e) release portions of the property and subordinate its lien, and (f) waive any other of its rights under this
<br />instrument. Any and all of this can and will be done without affecting the lien or the priority of this instrument or Borrower's liability to the
<br />Government for payment of the note secured by this instrument unless the Government provides otherwise in writing. HOWEVER, any forbearance
<br />by the Government - whether once or often - in exercising any right or remedy under this instrument, or otherwise afforded by applicable law, shall
<br />not be a waiver of or preclude the exercise of any such right or remedy.
<br />16. Graduation. If the Government determines that Borrower may be able to obtain a loan from a responsible cooperative or private
<br />credit source at reasonable rates and terms for loans for similar purposes and periods of time, Borrower will, upon the Government's request, apply
<br />for and accept such a loan in sufficient amount to pay the note secured by this instrument and to pay for stock necessary to be purchased in a
<br />cooperative lending agency in connection with such loan.
<br />17. Forfeiture. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in the
<br />Government's good faith judgment could result in forfeiture of the property or otherwise materially impair the lien created by this instrument or the
<br />Government's security interest. Borrower may cure such default by causing the action or proceeding to be dismissed with a ruling that precludes
<br />forfeiture of the Borrower's interest in the property or other material impairment of the lien created by this security instrument or the Government's
<br />security interest.
<br />18. False statement. Borrower also shall be in default if Borrower, during the loan application process, gave materially false or inaccurate
<br />information or statements to the Government (or failed to provide the Government with any material information) in connection with the loan
<br />evidenced by the note.
<br />19. Cross collateralization. Default under this instrument shall constitute default under any other security instrument held by the
<br />Government and executed or assumed by Borrower. Default under any other such security instrument shall constitute default under this instrument.
<br />20. Highly erodible land; wetlands. Any loan secured by this instrument will be in default if Borrower uses any loan proceeds for a
<br />purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce an agricultural commodity as
<br />provided in 7 C.F.R. part 1940, subpart G, or any successor Government regulation.
<br />21. Non - discrimination. If any part of the loan for which this instrument is given shall be used to finance the purchase, construction or
<br />repair of property to be used as an owner - occupied dwelling (herein called "the dwelling ") and if Borrower intends to sell or rent the dwelling and has
<br />obtained the Government's consent to do so (a) neither Borrower nor anyone authorized to act for Borrower will, after receipt of a bona fide offer,
<br />refuse to negotiate for the sale or rental of the dwelling or will otherwise make unavailable or deny the dwelling to anyone because of race, color,
<br />religion, sex, national origin, disability, familial status or age, and (b) Borrower recognizes as illegal and hereby disclaims, and will not comply with
<br />or attempt to enforce any restrictive covenants on the dwelling relating to race, color, religion, sex, national origin, disability, familial status or age.
<br />22. Notices. Notices given under this instrument shall be sent by certified mail unless otherwise required by law. Such notices shall be
<br />addressed, unless and until some other address is designated in a notice, in the case of the Government to the State Executive Director of the Farm
<br />Service Agency at 3600 Anderson Ave., Manhattan, Kansas 66503, and in the case of Borrower at the address shown in the Government's Finance
<br />Office records (which normally will be the same as the mailing address shown above).
<br />Initial 1 date 10 /5/1.
<br />FSA -2029 KS (11- 04 -08) Page 3 of 6
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