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<br />200605846
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<br />statements of mechanics and materialmen and such other evidence of costs, percentage completion of
<br />construction, application of payments and satisfaction of liens as Lender may reasonably require. If the
<br />insurance proceeds are applied to the payment of the sums secured by this Instrument, any such
<br />application of proceeds to principal shall not extend or postpone the due dates ofthe monthly installments
<br />referred to in Paragraphs I and 2 hereof, but Lender shall redetermine the amounts of such installments.
<br />If the Real Property is sold pursuant to the terms of this Instrument or if Lender acquires title to the Real
<br />Property, Lender thereupon shall also be deemed to have acquired exclusively all of the right, title and
<br />interest of Borrower in and to any insurance policies and unearned premiums thereon and in and to any
<br />insurance proceeds resulting from or which may be payable as a consequence of any damage to the Real
<br />Property prior to such sale or acquisition.
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<br />6. PRESERVATION AND MAINTENANCE OF PROPERTY. Borrower (a) shall not
<br />commit waste or permit any physical deterioration of the Real Property, (b) shall not abandon the Real
<br />Property, (c) shall restore or repair promptly and in a good and workmanlike manner all or any part of the
<br />Real Property to the equivalent of its original condition, or such other condition as Lender may approve in
<br />writing, in the event of any damage, injury or loss thereto, whether or not insurance proceeds are available
<br />to cover in whole or in part the costs of such restoration or repair, (d) shall keep the Real Property,
<br />including improvements, fixtures, equipment, machinery and appliances therein, in good repair and shall
<br />replace fixtures, equipment, machinery and appliances on the Real Property when necessary to keep such
<br />items in good repair, (e) shall comply with all laws, ordinances, regulations and requirements of any
<br />governmental body applicable to the Real Property, (f) shall generally operate and maintain the Real
<br />Property in a manner to maximize rentals and income and (g) shall give notice in writing to Lender of
<br />and, unless otherwise directed in writing by Lender, appear in and defend any action or proceeding
<br />purporting to affect the Real Property, the security of this Instrument or the rights or powers of Lender.
<br />Neither Borrower nor any tenant or other person shall remove, demolish or alter any improvement now
<br />existing or hereafter erected on the Real Property or any fixture, equipment, machinery or appliance in or
<br />on the Real Property except when incident to the replacement of fixtures, equipment, machinery and
<br />appliances with items of like kind.
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<br />Ifthis Instrument is on a leasehold, Borrower: (a) shall comply with the provisions of the ground
<br />lease; (b) shall give immediate written notice to Lender of any default by lessor under the ground lease or
<br />of any notice received by Borrower from such lessor of any default under the ground lease by Borrower;
<br />(c) shall exercise any option to renew or extend the ground lease and give written confirmation thereof to
<br />Lender within thirty (30) days after such option becomes exercisable; (d) shall give immediate written
<br />notice to Lender of the commencement of any remedial proceedings under the ground lease by any party
<br />thereto and, if required by Lender, shall permit Lender as Borrower's attorney-in-fact to control and act
<br />for Borrower in any such remedial proceedings; and (e) shall within thirty (30) days after request by
<br />Lender obtain from the lessor under the ground lease and deliver to Lender the lessor's estoppel
<br />certificate required thereunder, if any. Borrower hereby expressly transfers and assigns to Lender the
<br />benefit of all covenants contained in the ground lease, whether or not such covenants run with the land,
<br />but Lender shall have no liability with respect to such covenants or any other covenants contained in the
<br />ground lease.
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<br />Borrower shall not surrender the leasehold estate and interest herein conveyed nor terminate or
<br />cancel the ground lease creating said estate and interest, and Borrower shall not, without the express
<br />written consent of Lender, alter or amend said ground lease. Borrower covenants and agrees that there
<br />shall not be a merger of the ground lease, or of the leasehold estate created thereby, with the fee estate
<br />covered by the ground lease by reason of said leasehold estate or said fee estate, or any part of either,
<br />coming into common ownership, unless Lender shall consent in writing to such merger; if Borrower shall
<br />acquire such fee estate, then this Instrument shall simultaneously and without further action be spread so
<br />as to become a lien on such fee estate.
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