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200608119
<br />8714801
<br />Lender shall be subrogated to the lien of any deed of trust or other lien discharged, in whole or in part, by the indebtedness secured
<br />hereby. Nothing contained in this paragraph 8 shall require Lender to incur any expense or take any action hereunder.
<br />9. INSPECTION. Lender may make or cause to be made reasonable entries upon and inspections of the Property.
<br />10, BOOKS AND RECORDS. Borrower shall keep and maintain at all times at Borrower's address stated below, or such other
<br />place as Lender may approve in writing, complete and accurate books of accounts and records adequate to reflect correctly the
<br />results of the operation of the Property and copies of all written contracts, leases and other instruments which affect the Property.
<br />Such books, records, contracts, leases and other instruments shall be subject to examination and inspection at any reasonable time
<br />by Lender. Upon Lender's request, Borrower shall furnish to Lender, within thirty days after the end of each fiscal year of
<br />Borrower, a balance sheet, a statement of income and expenses of the Property and a statement of changes in financial position,
<br />each in reasonable detail and certified by Borrower and, if Lender shall require, by an independent certified public accountant.
<br />Borrower shall furnish, together with the foregoing financial statements and at any other time upon Lender's request, a rent schedule
<br />for the Property, certified by Borrower, showing the name of each tenant, and for each tenant, the space occupied, the lease
<br />expiration date, the rent payable and the rent paid.
<br />If Borrower fails to timely furnish Lender with any of the financial information and reports set forth in this paragraph
<br />within the required time periods, Lender shall have the right, acting in its sole discretion, to hire a certified public accounting firm
<br />acceptable to Lender, to prepare such financial information and reports, on an audited basis. The costs and expenses of such
<br />accounting firm shall be paid by Borrower on demand and, to the extent advanced by Lender become, with interest thereon from the
<br />date advanced by Lender at the Default Rate, additional Indebtedness of Borrower secured by the Loan Documents. Additionally, if
<br />Borrower fails to timely furnish Lender with any of the financial information and reports set forth in this paragraph within the
<br />required time periods, Lender shall be entitled to receive a late charge equal to $500.00 for each financial information and/or report
<br />not so furnished to Lender (the "Financial Late Charge "). The Financial Late Charge shall be due and payable by Borrower
<br />immediately upon receipt by Borrower of an invoice for same from Lender. Until paid, the Financial Late Charge shall bear interest
<br />at the Default Rate, and shall be deemed additional Indebtedness of Borrower secured by the Loan Documents.
<br />11. CONDEMNATION. Borrower shall promptly notify Lender of any action or proceeding relating to any condemnation or other
<br />taking, whether direct or indirect, of the Property, or part thereof, and Borrower shall appear in and prosecute any such action or
<br />proceeding unless otherwise directed by Lender in writing. Borrower authorizes Lender, at Lender's option, as attorney -in -fact for
<br />Borrower, to commence, appear in and prosecute, in Lender's or Borrower's name, any action or proceeding relating to any
<br />condemnation or other taking. The proceeds of any award, payment or claim for damages, direct or consequential, in connection
<br />with any condemnation or other taking, whether direct or indirect, of the Property, or part thereof, or for conveyances in lieu of
<br />condemnation, are hereby assigned to and shall be paid to Lender subject, if this Instrument is on a leasehold, to the rights of lessor
<br />under the ground lease.
<br />Borrower authorizes Lender to apply such awards, payments, proceeds or damages, after the deduction of Lender's
<br />expenses incurred in the collection of such amounts, at Lender's option, to restoration or repair of the Property or to payment of the
<br />sums secured by this Instrument, whether or not then due, in the order of application set forth in paragraph 3 hereof, with the
<br />balance, if any, to Borrower. Unless Borrower and Lender otherwise agree in writing, any application of proceeds to principal shall
<br />not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. Borrower agrees to execute such further evidence of assignment of any awards, proceeds, damages or claims
<br />arising in connection with such condemnation or taking as Lender may require.
<br />12. BORROWER AND LIEN NOT RELEASED. From time to time, Lender may, at Lender's option, without giving notice to or
<br />obtaining the consent of Borrower, Borrower's successors or assigns of any junior lienholder or guarantors, without liability on
<br />Lender's part and notwithstanding Borrower's breach of any covenant or agreement of Borrower in this Instrument, extend the time
<br />for payment of said indebtedness or any part thereof, reduce the payments thereon, release anyone liable on any of said
<br />indebtedness, accept a renewal note or notes therefor, modify the terms and time of payment of said indebtedness, release from the
<br />lien of this Instrument any part of the Property, take or release other or additional security, reconvey any part of the Property,
<br />consent to any map or plan of the Property, consent to the granting of any easement, join in any extension or subordination
<br />agreement, and agree in writing with Borrower to modify the rate of interest or period of amortization of the Note or change the
<br />amount of the monthly installments payable thereunder. Any actions taken by Lender pursuant to the terms of this paragraph 12
<br />shall not affect the obligation of Borrower or Borrower's successors or assigns to pay the sums secured by this Instrument and to
<br />observe the covenants of Borrower contained herein, shall not affect the guaranty of any person, corporation, partnership or other
<br />entity for payment of the indebtedness secured hereby, and shall not affect the lien or priority of lien hereof on the Property.
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