RIDGE VIEW COMMONS - CONSTRUCTION LOAN

e. Plans, specifications, contracts and agreements for construction of any improvements on the Premises; Debtor's rights under any payment, performance or other bonds in connection with construction of improvements on the Premises; all construction materials, supplies and equipment delivered to the Premises or used or to be used in connection with construction of improvements on the Premises; f. All furniture, furnishings, fixtures, equipment, appliances, machinery, inventory contracts and contract rights, equipment leases, rental agreements, vehicles; and g. All other personal property of every kind and description now located or to be located in or upon the improvements now on or hereafter constructed on the Premises and with any and all additions, accessions, replacements, substitutions, proceeds and products of the foregoing. 1.01 DELIVERY OF FINANCING STATEMENT. Debtor shall execute and deliver to Lender financing statements satisfactory in form and substance to Lender, and execute and deliver to Lender any other document reasonably requested by Lender to perfect or assign the security interest herein granted. SECTION 2: REPRESENTATIONS AND WARRANTIES Debtor represents and warrants as follows: 2.01 TITLE; OTHER LIENS. The Collateral is free and clear of all liens, encumbrances, claims and security interests of every kind except for the security interests created by this Agreement. Title to all Collateral is vested in Debtor and such title is free of all claims and defenses. Debtor shall keep this Agreement a first lien on all of the Collateral and shall not sell, lease, encumber or dispose of any of said Collateral without the written consent of Lender. SECTION 3: COVENANTS Debtor hereby covenants and agrees as follows: 3.01 PERFORMANCE. Debtor shall fully and punctually perform all its obliga- tions under or in connection with any contract, sale, or undertaking which gives rise to any right to payment with respect to any item of Collateral. 3.02 CONDITION OF COLLATERAL. Debtor shall at all times maintain, preserve and protect all Collateral and if damaged or destroyed, replace the same by other property of equal value, and shall not permit waste thereof, and shall not remove or permit removal of said Collateral from the Premises, and shall maintain such insurance as Lender shall reasonably request. 3.03 TAXES. Debtor shall pay before at least ten (10) days before delinquency any tax, assessment, or governmental charge which may become a lien upon the Collateral or any item thereof. 3.04 ACCOUNTING; INSPECTION. Debtor shall permit Lender to inspect and /or audit Debtor's books and records at any reasonable time and intervals and for this purpose Lender shall have access to Debtor's place of business and books and records. Debtor shall maintain full and accurate books and records. Page 2