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<br />200800520
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<br />20~~22
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<br />Unless you (Grantor) provide us (Beneficiary) with evidence of insurance coverage
<br />as required by our contract or loan agreement, we may purchase insurance at your expense
<br />to protect our interest. This insurance may, but need not, also protect your interest. If the
<br />collateral becomes damaged, the coverage we purchase may not pay any claim you make or
<br />any claim made against you. You may later cancel this coverage by providing evidence
<br />that you obtained property coverage elsewhere.
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<br />You are responsible for the cost of any insurance purchased by us. The cost of this
<br />insurance may be added to your contract or loan balance. If the cost is added to your
<br />contract or loan balance, the interest rate on the underlying contract or loan will apply to
<br />this added amount. The effective date of coverage may be the date your prior coverage
<br />lapsed or the date you failed to provide proof of coverage.
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<br />The coverage we purchase may be considerably more expensive than insurance you
<br />can obtain on your own and may not satisfy any need for property damage coverage or any
<br />mandatory liability insurance imposed by applicable law.
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<br />1.8 Eminent Domain. In case the Collateral, or any part or interest in any thereof, is
<br />taken by condemnation, Grantor shall take all action required by Beneficiary, in order to protect
<br />Grantor's and Beneficiary's rights with respect to any such taking, including, without limitation,
<br />the commencement of, appearance in or prosecution of any appropriate action or proceeding.
<br />Beneficiary is hereby empowered to collect and receive all compensation and awards of any kind
<br />whatsoever (referred to collectively herein as "Condemnation Awards") which may be paid for
<br />any property taken or for damages to any property not taken (all of which Grantor hereby assigns
<br />to Beneficiary), and, subject to the terms of the Fazoli' s Lease, all Condemnation A wards so
<br />received shall be forthwith applied by Beneficiary, as it may elect in its sole and unreviewable
<br />discretion, to the prepayment of the Loan or any of the other Secured Obligations or, at the
<br />option of Beneficiary, may be held by Beneficiary as additional security for the Secured
<br />Obligations, or may be applied to the repair and restoration of any property not so taken or
<br />damaged; provided, however, that no election made by Beneficiary under this Section 1.8 shall
<br />relieve Grantor of the duty to repair and restore. Grantor hereby empowers Beneficiary, in
<br />Beneficiary's absolute discretion to settle, compromise and adjust any and all claims or rights
<br />arising under any condemnation or eminent domain proceeding relating to the Collateral or any
<br />portion thereof.
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<br />1.9 Governmental Requirements. Grantor will at all times fully comply in all material
<br />respects with, and cause the Collateral and the use and condition thereof fully to comply in all
<br />material respects with, all federal, state, county, municipal, local and other governmental statutes,
<br />ordinances, requirements, regulations, rules, orders and decrees of any kind whatsoever that apply
<br />or relate to Grantor or the Collateral or the use thereof (including, without limitation, those
<br />relating to land use and development, construction, access, water rights and use, noise,
<br />environmental pollution and hazardous waste and substances including, without limitation,
<br />Hazardous Substances), and will observe and comply with all conditions and requirements
<br />necessary to preserve and extend any and all rights, licenses, permits, privileges, franchises and
<br />concessions (including, without limitation, those relating to land use and development,
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<br />NEWY 1 \8176568.2
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