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7.02 Financial Information. Within one hundred twenty (120) drys of the eno of Borrower's tax year, Borrower sholl
<br />deliver to Lender a current signed financial statement, income and expense statement and balance sheet. Borrower shall
<br />also deliver to Lender such quarterly, periodic or other financial informotion os Lender may request. If Borrower hos audited
<br />financial information prepored, Borrower shall deliver to Lender copies of that information within five (5) doys of its
<br />preparation. All finoncial reports shall be prepored in accordance with generally accepted accounting principles consistently
<br />applied, or other form occeptable to Lender.
<br />7.03
<br />liabilities, claims, actions, judgments, court costs and legol or other expenses (including attorneys' fees n•er moy
<br />incur as o direct or indirect consequence of: (i) the making of the Loon, except for violations of • - aws or regulations by
<br />Lender; or (ii) Borrower's foilure to perform any obligotions as and when re • . • is Agreement or any of the Loan
<br />Documents; or (iii) any foilure of any time of any of Borrower's r • otions or warranties to be true and correct, or (iv)
<br />any act or omission by Borrower, any controctor, s • - • or or material supplier, engineer, architect or other person or
<br />entity with respect to ony of the Pro. • - provements. Borrower shall pay immediately upon lender's demand ony
<br />amounts owing under t pity, together with interest from the dote the indebtedness arises until paid at the rate of
<br />interest a• • - o the principol balance of the Note as specified therein. Borrower's duty to indemnify Lend shall svr-
<br />nt rt,.. n�a
<br />. tT..,.t � 4.;
<br />7.04 Books and Records. Borrower shall maintoin complete books of accounts and other records for the Prope and
<br />Improvements and for disbursement and use of the Loan proceeds and Borrower's Funds, and the some shall be available for
<br />inspection and copying by Lender.
<br />7.05 Further A nces. At Lender's request and at Borrower's expense, Borrower shall execute, ocknowledge and
<br />deliver ony other instruments and perform any other acts necessary, desirable or proper (os determined by Lender) to carry
<br />out the purposes of the Loan Documents or to perfect and preserve any liens created by the Loan Documents.
<br />7.06 Form of Documents. The form and substonce of all documents, instruments, and forms of evidence to be
<br />delivered to Lender under the terms of any of the Loon Documents sholl be subject to Lender's approval and shall not be
<br />modifed, superseded or terminated in ony respect without Lender's prior written approval.
<br />7.07 No Third Parties Benefited. No person other than Lender and Borrower and their permitted successors and
<br />assigns sholl hove any right of action under any of the Loan Documents.
<br />7.08 Notices. All written notices and demands under the Loon Documents shall be deemed served upon delivery or,
<br />if moiled, upon the first to occur of receipt or the expiration of seventy-two (72) hours after deposit in United States Postal
<br />Service, certified mail, postage prepaid and addressed to the address of Borrower or Lender appearing below. Notice of
<br />change of oddress moy be given in the same manner, provided Borrower's address is in the Stote of California or the State
<br />where Borrower's principol place of business is located, as represented to Lender in the Loan Documents.
<br />7.09 Authority to File Notices. Borrower irrevocably appoints and authorizes Lender, as Borrower's attorney -in -fact,
<br />which agency is coupled with on interest, to execute and /or record in Lender's or Borrower's name any notices, instruments
<br />or documents that Lender deems appropriate to protect Lender's interest under ony of the Loon Documents.
<br />7.10 Actions. lender moy commence, appear in or defend ony action or proceeding purporting to affect the
<br />Property, Improvements, Loan Documents or the rights, duties or liabilities of Borrower or Lender under the Loan Documents.
<br />In exercising this right, Lender moy incur and poy costs and expenses including without limit, attorneys fees and court costs
<br />and Borrower ogrees to poy all such expenses so incurred or paid.
<br />7.11 Relationship of Parties. The relationship of Borrower and Lender under the Loan Documents is, and sholl at all
<br />times remain, solely that of borrower and lender. Lender neither undertokes nor assumes any responsibility or duty to
<br />Borrower or to any third party with respect to the Property, Improvements or Loon, except as expressly provided in the Loan
<br />Documents.
<br />7.12 Lenders Delay. Lender shall not be Iioble in any way for Lender's foilure to perform or delay in performing
<br />under the Loon Documents, and Lender may suspend or terminate oil or any portion of Lender's obligations under the Loon
<br />Documents if Lender's delay or foilure results directly or indirectly from, or is based upon, the oction, inaction, or purported
<br />oction, of any governmentol or locol authority, or any wor (whether declored or not), rebellion, insurrection, strike, lock -out,
<br />boycott or blockode (whether presently in effect, announced, or in the sole judgment of Lender deemed probable), or any
<br />act of God, or any other cause or event beyond Lenders control.
<br />7.13 Attorneys' Fees; Enforcement. tf any attorney is engaged by Eerier to enforce, construe or defend any
<br />r rovision of ony of the Loan Documents, or as o consequence of any Default or Event of Dafault under the Loon Documents,
<br />with or without the filing of ony legal oction or proceeding, Be....... * s-.,tt ._ r __ immediately upon demond, the
<br />amount of oil attorneys' fees and costs incurred by 'L4 &er in connection therewith, together with interest thereon from the
<br />dote of such demond of the rate of interest applicable to the principal balance of the Note os specified therein.
<br />7.14 Assignment. Borrower sholl not assign Borrower's interest under any of the Loon Documents, or in any monies
<br />due or to become due thereunder, without Lender's prior written consent. Any assignment mode without Lender's consent
<br />shall be void. Borrower recognizes that this is not on ordinary loan and that Lender would not moke this Loon except in
<br />reliance on Borrower's expertise and reputation, Lender's knowledge of Borrower, and Lender's understanding that this
<br />Agreement is more in the nature of on ogreement involving personal services than o standard loon where Lender would rely
<br />on security which already exists. In this instance, the improvements are not constructed and Lender is relying on Borrower's
<br />expertise and prior experience to develop the Improvements in occordonce with the terms of the Loon Documents.
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<br />either party
<br />the prevailing party shall be entitled to
<br />the prevailing party
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