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<br />200602981
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<br />schedule of exceptions to coverage in any abstract of title or title insurance policy insuring Lender's interest
<br />in the Property.
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<br />Condition of Property. The Borrower promises at all times to preserve and to maintain the Property and
<br />every part thereof in good repair, working order, and condition and will from time to time, make all needful
<br />and proper repairs so that the value of the Property shall not in any way be impaired.
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<br />Removal of any Part of the Property. Borrower promises not to remove any part of the Property from its
<br />present location, except for replacement, maintenance and relocation in the ordinary course of business.
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<br />Alterations to the Property. Borrower promises to abstain from the commission of any waste on the
<br />Property. Further, Borrower shall make no material alterations, additions or improvements of any type
<br />whatever to the Property, regardless of whether such alterations, additions or improvements would increase
<br />the value of the Property, nor permit anyone to do so except for tenant improvements and completion of
<br />items pursuant to approved plans and specifications, without Lender's prior written consent, which consent
<br />may be withheld by Lender in its sole discretion. Borrower will comply with all laws and regulations of all
<br />public authorities having jurisdiction over the premises relating to the use, occupancy and maintenance
<br />thereof and shall upon request promptly submit to Lender evidence of such compliance.
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<br />Due on Sale - Lender's Consent. Borrower shall not sell, further encumber or otherwise dispose of, except
<br />as herein provided, any or all of its interest in any part of or all of the Property without first obtaining the
<br />written consent of Lender. If any encumbrance, lien, transfer or sale or agreement for these is created,
<br />Lender may declare immediately due and payable, the entire balance of the Indebtedness.
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<br />Insurance. Borrower promises to keep the Property insured against such risks and in such form as may
<br />within the sole discretion of Lender be acceptable, causing Lender to be named as loss payee or if requested
<br />by Lender, as Mortgagee. The insurance company shall be chosen by Borrower subject to Lender's approval,
<br />which shall not be unreasonably withheld. All insurance policies must provide that Lender will get a
<br />minimum of 10 days notice prior to cancellation. At Lender's discretion, Borrower may be required to
<br />produce receipts of paid premiums and renewal policies. If Borrower fails to obtain the required coverage,
<br />Lender may do so at Borrower's expense. Borrower hereby directs each and every insurer of the Property to
<br />make payment of loss to Lender with the proceeds to be applied, only at Lender's option, to the repair and
<br />replacement of the damage or loss or to be applied to the Indebtedness with the surplus, if any, to be paid by
<br />Lender to Borrower.
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<br />Payment of Taxes and Other Applicable Charges. Borrower promises to pay and to discharge liens,
<br />encumbrances, taxes, assessments, lease payments and any other charges relating to the Property when levied
<br />or assessed against Borrower or the Property.
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<br />Environmental Laws and Hazardous or Toxic Materials. Borrower and every tenant have been, are
<br />presently and shall continue to be in strict compliance with any applicable local, state and federal
<br />environmental laws and regulations. Further, neither Borrower nor any tenant shall manufacture, store,
<br />handle, discharge or dispose of hazardous or toxic materials as may be defmed by any state or federal law on
<br />the Property, except to the extent the existence of such materials has been presently disclosed in writing to
<br />Lender. Borrower will immediately notifY Lender in writing of any assertion or claim made by any party as
<br />to the possible violation of applicable state and federal environmental laws including the location of any
<br />hazardous or toxic materials on or about the Property. Borrower indemnifies and holds Lender harmless from
<br />any liability or expense of whatsoever nature incurred directly or indirectly as a result of Borrower's
<br />violation of applicable local, state and federal environmental laws and regulations or Borrower's involvement
<br />with hazardous or toxic materials.
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<br />Financial Information. Borrower agrees to supply Lender such financial and other information concerning
<br />its affairs and the status of any of its assets as Lender, from time to time, may reasonably request. Borrower
<br />further agrees to permit Lender to verifY accounts as well as to inspect, copy and to examine the books,
<br />records and files of Borrower.
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<br />Lender's Right to Enter. The Lender or Lender's agents shall have the right and access to inspect the
<br />Property at all reasonable times in order to attend to Lender's interests and ensure compliance with the terms
<br />of this Security Instrument. If the Property, or any part thereof, shall require inspection, repair or
<br />maintenance which the Borrower has failed to provide, the Lender, after reasonable notice, may enter upon
<br />the Property to effect such obligation; and the cost thereof shall be added to the Indebtedness and paid on the
<br />Lender's demand by the Borrower.
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<br />ASSIGNMENT OF LEASES AND RENTS. As additional security for the payment of the Indebtedness and the
<br />performance of the covenants contained herein, Borrower hereby assigns and transfers over to Lender all rents,
<br />income and profits ("Rents") under any present or future leases, subleases or licenses of the Property, including
<br />any guaranties, extensions, amendments or renewals thereof, from the use of the Property. So long as Borrower is
<br />not in default, Borrower may receive, collect and enjoy all Rents accruing from the Property, but not more than
<br />one month in advance of the due date. Lender may also require Borrower, tenant and any other user of the
<br />Property to make payments of Rents directly to Lender. However, by receiving any such payments, Lender is not,
<br />and shall not be considered, an agent for any party or entity. Any amounts collected may, at the Lender's sole
<br />discretion, be applied to protect the Lender's interest in the Property, including but not limited to the payment of
<br />taxes and insurance premiums and to the Indebtedness. At Lender's sole discretion, all leases, subleases and
<br />licenses must first be approved by Lender.
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<br /><<:I 2004-200~ Compliance Systems, Inc. 54DA.EFBl .2005.08.120
<br />Commercial Rea,1 Estate Security Instrument ~ DL4007
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<br />www.compliancesystems.com
<br />800.968.8522. Fax 616.9~6.1868
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