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200412422
<br />1.9 Indemnity. Mortgagor shall indemnify Lender and its directors, officers, agents and
<br />employees (collectively the "Indemnified Parties ") against, and hold the Indemnified Parties harmless
<br />from, all losses, damages, suits, claims, judgments, penalties, fines, liabilities, costs and expenses by
<br />reason of, or on account of, or in connection with the construction, reconstruction or alteration of the
<br />Mortgaged Property, or any accident, injury, death or damage to any person or property occurring in,
<br />on or about the Mortgaged Property or any street, drive, sidewalk, curb or passageway adjacent
<br />thereto. The indemnity contained in this Section shall include costs of defense of any such claim
<br />asserted against an Indemnified Party, including attorneys' fees. The indemnity contained in this Section
<br />shall survive payment and performance of the Obligations and satisfaction and release of this Mortgage
<br />and any foreclosure thereof or acquisition of title by deed in lieu of foreclosure.
<br />1.10 Appraisals. Lender shall have the right from time to time, but not more often than once
<br />during any twelve (12) -month period, to obtain an appraisal of the Mortgaged Property in form and
<br />substance satisfactory to Lender and prepared by an independent MAI appraiser selected by Lender.
<br />Mortgagor shall reimburse Lender for the cost incurred for any such appraisal within ten (10) days
<br />following demand therefor by Lender, if Lender has reason to believe that the value of the Mortgaged
<br />Property has declined materially, and such appraisal demonstrates that the then outstanding principal
<br />balance of this Note is more than 80 percent of the value of the property subject to the Mortgage, plus
<br />the value of all collateral subject to the Security Agreement given by Standard Iron & Wire Works,
<br />Inc., to Lender pursuant to the requirements of the Loan Agreement.
<br />ARTICLE 2
<br />REPRESENTATIONS AND WARRANTIES
<br />Mortgagor makes the following representations and warranties:
<br />2.1 Ownership, Liens, Compliance with Laws. Mortgagor owns the Mortgaged Property
<br />free from all Liens, except the Permitted Encumbrances. All applicable zoning, environmental, land use,
<br />subdivision, building, fire, safety and health laws, statutes, ordinances, codes, rules, regulations and
<br />requirements affecting the Mortgaged Property permit the intended use and occupancy thereof, and
<br />Mortgagor will obtain all consents, permits and licenses required for such use. Mortgagor has
<br />examined and is familiar with all applicable covenants, conditions, restrictions and reservations, and with
<br />all applicable laws, statutes, ordinances, codes and governmental rules, regulations and requirements
<br />affecting the Mortgaged Property, and the Mortgaged Property complies with all of the foregoing.
<br />2.2 Use. The Mortgaged Property is not homestead property nor is it agricultural property
<br />or in agricultural use.
<br />2.3 Utilities: Services. The Mortgaged Property will be serviced by all necessary public
<br />utilities, and all such utilities will be operational and have sufficient capacity. There is no contract or
<br />December 22, 2004
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