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<br />Collateral. Beneficiary shall have the right from time to time, at all times during normal business
<br />hours, to examine all such records, books and accounts on the Premises, or at such other place or
<br />with such other person or entity maintaining such books, records and accounts and to make
<br />copies or abstracts thereof as Beneficiary shall desire. With respect to the Premises and the
<br />Collateral, Grantor will, upon Beneficiary's request, from time to time furnish to Beneficiary
<br />operating statements, rent rolls and reports in form and content reasonably requested by
<br />Beneficiary. Grantor shall furnish Beneficiary with such other financial information concerning
<br />it as Beneficiary may reasonably request. All such statements shall be in form satisfactory to
<br />Beneficiary, and shall be prepared on a basis consistent with prior years. All such reports
<br />described in this Section 1.11 shall be certified correct by such party reasonably designated by
<br />Beneficiary.
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<br />1.12Additional Indebtedness.
<br /> Grantor agrees to pay or reimburse Beneficiary, upon
<br />demand therefor, for any and all losses, damages, costs, expenses, fees, duties, taxes (except
<br />Federal income taxes), penalties, assessments of other charges (hereinafter referred to as
<br />"Liabilities") at any time suffered by, imposed upon, assessed or levied against the Premises or
<br />Beneficiary by any governmental authority or agency relating to, arising from or in connection
<br />with the execution and delivery of the Note and the recording of this Deed of Trust, including,
<br />but not limited to, liabilities arising from any applicable law or statute relating to the making of
<br />the Loan, the perfection of the security documents or the enforcement thereof. Any such liability
<br />so incurred or paid by Beneficiary shall constitute an additional indebtedness secured by this
<br />Deed of Trust.
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<br />1.13Transfer.
<br /> Grantor shall not make, create or suffer to be made or created, any
<br />sale, transfer, conveyance, or lease (except as permitted in Article III hereof) of the Premises,
<br />any portion thereof, or any interest therein. Any change whatsoever in the legal or beneficial
<br />ownership of Grantor which results in a change in the identity of the person or persons or entity
<br />or entities having a direct or indirect controlling interest in Grantor shall not be made, created or
<br />suffered. The execution and delivery by Grantor of any joint venture agreement, partnership
<br />agreement, declaration of trust, option agreement, or other instrument whereunder any other
<br />person or entity may become entitled, directly or indirectly, to the possession or enjoyment of the
<br />Premises, or the income or other benefits derived or to be derived therefrom, shall in each case
<br />be deemed to be a conveyance of Grantor's interest in the Premises for the purposes of this
<br />section.
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<br />1.14Environmental Matters.
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<br />(a)Grantor hereby represents and warrants that, to the best of Grantor's
<br />knowledge, (i) the Premises presently complies with, in all material respects, all applicable
<br />federal, state or local environmental, health and safety statutes and regulations with which non-
<br />compliance would have material adverse affect on the Premises; (ii) the Premises is not subject
<br />to any judicial or administrative proceeding alleging the violation of any federal, state or local
<br />environmental, health or safety statute or regulation, which violation would have a material
<br />adverse affect on the Premises; (iii) the Premises is not the subject of a federal or state
<br />investigation regarding the need for any remedial action to respond to a release of any hazardous
<br />or toxic wastes, substance or constituent, or other substance into the environment which remedial
<br />action would have a material adverse affect on the Premises; (iv) Grantor has not filed any notice
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