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<br />200600109
<br />
<br />Loan No: 611498
<br />
<br />MORTGAGE
<br />(Continued)
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<br />Page 2
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<br />any such laws; and (2) agrees to indemnify and hold harmless Lender against any and all claims, losses, liabilities,
<br />damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach
<br />of this section of the Mortgage or as a consequence of any use, generation, manufacture, storage, disposal,
<br />release or threatened release occurring prior to Grantor's ownership or interest in the Property, whether or not the
<br />same was or should have been known to Grantor. The provisions of this section of the Mortgage, including the
<br />obligation to indemnify, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of
<br />the lien of this Mortgage and shall not be affected by Lender's acquisition of any interest in the Property, whether
<br />by foreclosure or otherwise.
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<br />Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit. or suffer any
<br />stripping of or waste on or to the Property or any portion of the Property. Without limiting the generality of the
<br />foregoing, Grantor will not remove, or grant to any other party the right to remove, any timber, minerals (including
<br />oil and gas), coal, clay, scoria, soil, gravel or rock products without Lender's prior written consent.
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<br />Remova! of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property
<br />without Lender's prior written consent. As a condition to the removal of any Improvements, Lender may require
<br />Grantor to make arrangements satisfactory to Lender to replace such Improvements with Improvements of at least
<br />equal value.
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<br />Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all
<br />reasonable times to attend to Lender's interests and to inspect the Real Property for purposes of Grantor's
<br />compliance with the terms and conditions of this Mortgage.
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<br />Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and
<br />regulations, now or hereafter in effect. of all governmental authorities applicable to the use or occupancy of the
<br />Property, including without limitation, the Americans With Disabilities Act. Grantor may contest in good faith any
<br />such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals,
<br />so long as Grantor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's
<br />interests in the Property are not jeopardized. Lender may require Grantor to post adequate security or a surety
<br />bond, reasonably satisfactory to Lender, to protect Lender's interest.
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<br />Duty to Protect. Grantor agrees neither to abandon or leave unattended the Property. Grantor shall do all other
<br />acts, in addition to those acts set forth above in this section, which from the character and use of the Property are
<br />reasonably necessary to protect and preserve the Property.
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<br />DUE ON SALE - CONSENT BY LENDER. Lender may, at Lender's option, declare immediately due and payable all sums
<br />secured by this Mortgage upon the sale or transfer, without Lender's prior written consent, of all or any part of the Real
<br />Property, or any interest in the Real Property. A "sale or transfer" means the conveyance of Real Property or any right,
<br />title or interest in the Real Property; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by
<br />outright sale, deed, installment sale contract, land contract, contract for deed, leasehold interest with a term greater
<br />than three (3) years, lease-option contract, or by sale, assignment, or transfer of any beneficial interest in or to any land
<br />trust holding title to the Real Property, or by any other method of conveyance of an interest in the Real Property. If any
<br />Grantor is a corporation, partnership or limited liability company, transfer also includes any change in ownership of more
<br />than twenty-five percent (25%) of the voting stock, partnership interests or limited liability company interests, as the
<br />case may be, of such Grantor. However, this option shall not be exercised by Lender if such exercise is prohibited by
<br />federal law or by North Dakota law.
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<br />TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Mortgage:
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<br />Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, payroll taxes, special taxes,
<br />assessments, water charges and sewer service charges levied against or on account of the Property, and shall pay
<br />when due all claims for work done on or for services rendered or material furnished to the Property. Grantor shall
<br />maintain the Property free of any liens having priority over or equal to the interest of Lender under this Mortgage,
<br />except for those liens specifically agreed to in writing by Lender, and except for the lien of taxes and assessments
<br />not due as further specified in the Right to Contest paragraph.
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<br />Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith
<br />dispute over the obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or
<br />is filed as a result of nonpayment, Grantor shall within fifteen (15) days after the lien arises or, if a lien is filed,
<br />within fifteen (15) days after Grantor has notice of the filing, secure the discharge of the lien, or if requested by
<br />Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to lender in an
<br />amount sufficient to discharge the lien plus any costs and reasonable attorneys' fees, or other charges that could
<br />accrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself and Lender and
<br />shall satisfy any adverse judgment before enforcement against the Property. Grantor shall name Lender as an
<br />additional obligee under any surety bond furnished in the contest proceedings.
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<br />Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes
<br />or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written
<br />statement of the taxes and assessments against the Property.
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<br />Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any
<br />services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or
<br />other lien could be asserted on account of the work, services, or materials. Grantor will upon request of Lender
<br />furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such
<br />improvements.
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<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this
<br />Mortgage:
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<br />Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended
<br />coverage endorsements on an actual cash value basis for the full insurable value covering all Improvements on the
<br />Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard
<br />mortgagee clause in favor of Lender. Grantor shall also procure and maintain comprehensive general liability
<br />insurance in such coverage amounts as Lender may request with Lender being named as additional insureds in
<br />such liability insurance policies. Additionally, Grantor shall maintain such other insurance, including but not limited
<br />to hazard, business interruption and boiler insurance as Lender may require. Policies shall be written by such
<br />insurance companies and in such form as may be reasonably acceptable to Lender. Grantor shall deliver to Lender
<br />certificates of coverage from each insurer containing a stipulation that coverage will not be cancelled or diminished
<br />without a minimum of ten (10) days' prior written notice to Lender and not containing any disclaimer of the
<br />insurer's liability for failure to give such notice. Each insurance policy also shall include an endorsement providing
<br />that coverage in favor of Lender will not be impaired in any way by any act. omission or default of Grantor or any
<br />other person. Should the Real Property be located in an area designated by the Director of the Federal Emergency
<br />Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood
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