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<br />200605846
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<br />replacement value of the improvements (both fixtures and personalty). Comprehensive General Liability
<br />Insurance shall be in an amount no less than $3,000,000 single risk All premiums on insurance policies
<br />shall be paid in the manner provided under Paragraph 2 hereof, or by Borrower making payment when
<br />due directly to the carrier if Lender has waived its escrow requirement, or in such other manner as Lender
<br />may designate in writing.
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<br />All insurance policies and renewals thereof shall be in a form acceptable to Lender and shall
<br />include a standard mortgagee loss payable clause in favor of and in form acceptable to Lender. Lender
<br />shall have the right to hold the policies, and Borrower shall promptly furnish to Lender all renewal notices
<br />and all receipts of paid premiums. At least (30) thirty days prior to the expiration date of a policy,
<br />Borrower shall deliver to Lender a renewal policy in form satisfactory to Lender. If this Instrument is on
<br />a leasehold, Borrower shall furnish Lender a duplicate of all policies, renewal notices, renewal policies
<br />and receipts of paid premiums if, by virtue of the ground lease, the originals thereof may not be supplied
<br />by Borrower to Lender.
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<br />During the course of any construction or restoration of the improvements the following coverages
<br />shall also be required: comprehensive public liability insurance in at least the amount required by Lender
<br />(including coverage for elevators and escalators, if any) on an "occurrence basis" against claims for
<br />personal injury including, without limitation, bodily injury, death or property damage occurring on, in or
<br />about the Real Property and the adjoining streets, sidewalks and passageways, such insurance to afford
<br />immediate minimum protection to a limit satisfactory to Lender with respect to personal injury or death to
<br />anyone or more persons or damage to property; worker's compensation insurance (including employer's
<br />liability insurance, if requested by Lender) for all employees of Borrower engaged on or with respect to
<br />the Real Property in such amount as is satisfactory to Lender, or, if such amounts are established by law,
<br />in such amounts; builder's completed value risk insurance against "all risks of physical loss," including
<br />collapse and transit coverage, during construction of the improvements, in non-reporting form, covering
<br />the total value of work performed and equipment, supplies and materials furnished; and such other
<br />coverages that Lender may require.
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<br />In the event of any loss covered by any insurance policies, Borrower shall give immediate written
<br />notice to the insurance carrier and to Lender. Borrower hereby authorizes and empowers Lender (at
<br />Lender's option) as attorney-in-fact for Borrower to make proof of loss, to adjust and compromise any
<br />claim under insurance policies, to appear in and prosecute any action arising from such insurance policies,
<br />to collect and receive insurance proceeds and to deduct therefrom Lender's expenses incurred in the
<br />collection of such proceeds; provided, however, that nothing contained in this paragraph shall require
<br />Lender to incur any expense or take any action hereunder. All insurance proceeds shall be paid by the
<br />insurance company to Lender to be held and disbursed in accordance with this Paragraph 5. Borrower
<br />further authorizes Lender, at Lender's option, (a) to hold the balance of such proceeds to be used to
<br />reimburse Borrower for the cost of reconstruction or repair of the Real Property, or (b) if the proceeds are
<br />insufficient to repair or reconstruct the improvements in the manner required in the next subparagraph,
<br />and if Borrower is unable or unwilling to personally fund the shortfall, to apply the balance of such
<br />proceeds to the payment of the sums secured by this Instrument, whether or not then due, in the order of
<br />application set forth in Paragraph 3 hereof, or (c) if a default exists under this Instrument, the Revolving
<br />Loan Agreement or any of the other Loan Documents, Lender shall be entitled to retain the proceeds and
<br />apply the same in the order as provided in Paragraph 3.
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<br />If the insurance proceeds are held by Lender to reimburse Borrower for the cost of restoration and
<br />repair of the Real Property, the Real Property shall be restored to the equivalent of its original condition
<br />or such other condition as Lender may approve in writing. Lender may, at Lender's option, condition
<br />disbursement of said proceeds on Lender's approval of such plans and specifications of an architect
<br />satisfactory to Lender, contractor's cost estimates, architect's certificate, waivers of liens, sworn
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