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0.5-27-1993 CONSTRUCTION LOAN AGREEIV~T
<br />. Loan trio 700007062 (Continued) Page 6
<br />Modification Of Contract. Make or permft to t>8 made any modification of the Construction Contract.
<br />Liens. Create or allow to be created any Ifen or charge upon the Property or the Improvements.
<br />GENERAL PROJECT PROVISIONS. The following provisions relate to the construction and completion of the Project
<br />Change Orders. All requests for changes in the. Plans and Specifications, other than minor changes invdving no extra cost, must be in writi rig,
<br />signed by Borrower and the architect, and delivered to Lender for its approval. Borrower will not permit the performance of any work pursuan to
<br />any change order or modification of the Construction Contract or any subcontract without the written approval of Lender. Borcower will obtain r ny
<br />required permits or authorizations from governmental authorities having jurisdiction before approving or requesting a new change order.
<br />Purchase of Materials; Conditional Sales Contracts. No materials, equipment, fixtures, or articles of personal property placed in or incorpora eel
<br />into the Project shall be purchased or installed under any Security Agreement or other agreement whereby the seller reserves or purporH, to
<br />reserve title or the right of removal or repossession, or the right to consider such items as personal property after their incorporation into he
<br />Project, unless otherwise authorized by Lender in writing.
<br />Lender's Right of Entry and Inspection. Lender and its agents shall have at alt times the right of entry and free access to the Property and he
<br />right to inspect all work done, labor performed, and materials furnished with respect to the Project. Lender shall have unrestricted access to ~: nd
<br />the right to copy all records, accounting books, contracts, subcontracts, bills, statements, vouchers, and supporting documents of eorco~~ !er
<br />relating in any way to the Project.
<br />Lender's Rigtft to Stop Work. If Lender in good faith determines that any work or materials do not conform to the approved Plans end
<br />Specifications or sound building practicx~s, or otherwise depart from any of the requirements of this Agreement, Lender may require the work tc lie
<br />stopped and withheld disbursements until the matter is corrected. In such event, Borrower will promptly correct the work to Lender's satisfacti m.
<br />No such acton by Lender will affect Borrower's obligatlon to complete the Improvements on or before the Completion Date. Lender is under no
<br />duty to supervise or Inspect the construction or examine any,books and records. Any inspection or examination by Lender is for the sole purp¢ rae
<br />of protecting Lender's security and preserving Lender's rights under this Agreement. No default of Borcower will be waived by any inspection by
<br />Lender. In no event will any inspection by Lender be a representation that there has been or will be compliance with the Plans and Specificafi~; rrs
<br />or that the construction is free from defective materials or workmanship.
<br />Indemnity. eorcower shall indemnify and held Lender harmless from any and all cisims asserted against Lender or the Property by any pers~ m,
<br />entity, or governmental body, or arising out of or in connection with the Property, Improvements, or Project. lender shall be entitled to appeal in
<br />any action or proceeding to defend itseff against such claims, and all costs incurred by Lender in connection with such defense, indud ng
<br />attorneys' fees, shall be paid by Borrower to Lender. Lender shall, in its sole discretion, be entitled to settle or compromise any asserted clai ns
<br />against it, and such settlement shall be binding upon Borrower for purposes of this indemnification. All amounts paid by Lender under 1 ~~is
<br />paragraph shall be secured by the Mortgage or Deed of Trust on the Property, shall be deemed an additional principal Advance under the La rn,
<br />payable upon demand, and shall bear interest at the rate applicable to the Loan.
<br />Pubikity. Lender may display a sign at the construction site informing the public that Lender is the construction lender for the Project. Lenr ~
<br />may obtain other publicity in connection with the Project through press releases and participation in ground-breaking and opening ceremon es
<br />and similar events.
<br />Actkms. Lender shall have the right to commence, appear in, or defend any action or proceeding purporting to affect the rights, duties, nor
<br />IiabNitieS of the parties to this Agreement, or the disbursement of funds from the Loan Fund. In connection with this right, Lender may incur a •rd
<br />pay reasonable costs and expenses, including, but not limited to, attorneys' fees, for both trial and appellate proceedings. Borrower covenants to
<br />pay to Lender on demand ail such expenses, together with interest from the date Lender incurs the expense at the rate specified in the Note, a ~sd
<br />Lender is authorized to disburse funds from the Loan Fund for such purposes.
<br />CONSTRUCTION LOAN COMMITMENT. Lender ttas issued a construction loan commitment letter for the loan to Borcower.
<br />Relationship to thf8 Agreement. The terms and provisions of this Agreement, the Note and the Related Documents supersede any inconsislr+nt
<br />terms and conditions of Lender's construction loan commitment letter to Borrower, provided that all obligations of Borcower under the commitmr ant
<br />to pay any fees to Lender or any costs and expenses relating to the Loan or the commitment shall survive the execution and delivery of 11 ris
<br />Agreement, the Note and the Related Documents. Any failure of Borrower to perform any such obligation shall constitute a default under 4 its
<br />Agreement.
<br />EVENTS OF DEFAULT. Each of the following shall constitute an Event of Default under this Agreement:
<br />Default on Indebtedness. Failure of Borcower to make any payment when due on the Loans.
<br />Other Defaults. Failure of eorcower or any Grantor to comply with or to perform when due any other term, obligation, covenant or condiii :m
<br />contained in this Agreement or in any of the Related Documents, or failure of Borrower to comply with or to perform any other term, obligafir ~~n,
<br />covenant or condition contained in any other agreement between Lender and Borcower.
<br />False Statements. Any warcanty, representation, or statement made or furnished to Lender by or on behalf of Borrower or any Grantor under h sis
<br />Agreement or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished.
<br />Detective Collateralizatlon. This Agreement or any of the Related Documents ceases to be in full force and effect (including failure of as ny
<br />collateral document to create a valid and perfected security interest or lien) at any time and for any reason.
<br />Insolvency. The dissolution or termination of Borrower's existence as a going business, insolvency, appointment of a receiver for any part: ~~f
<br />Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under is ~~y
<br />bankruptcy or insolvency laws by or against Borcower.
<br />Creditor or Forbiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-he p,
<br />repossession or any other method, by any creditor of Borrower, any creditor of any Grantor against any collateral securing the Indebtedness, or :ry
<br />any governmental agency. This includes a garnishment, attachment, or levy on or of any of Borcower's deposit accounts with Lender.
<br />Events AHecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or such Guarari or
<br />dies or becomes incompetent.
<br />Change In Ownership. Any change in ownership of twenty-five percent (2596) or more of the common stock of Borrower.
<br />Insecurity. Lender, in good faith, deems itself insecure.
<br />Breach of Construction Contract. The Improvements are not constructed in accordance with the Plans and Specifications or in accordance w i;h
<br />the terms of the Construction Contract.
<br />Cessation of Construction. Prior to the completion of construction of the Improvements and equipping of the Project, the construction of I •~e
<br />Improvements or the equipping of the Project is abandoned or work thereon ceases for a period of more than ten (10) days for any reason, or I •~e
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