Common use of Performance of Improvements Clause in Contracts

Performance of Improvements. (a) Borrower shall construct, erect, undertake and complete or cause to be constructed, erected, undertaken or completed all of the work set forth on Schedule 1 hereto (the "Environmental Improvements") no later than the date set forth opposite such Environmental Improvements. (b) Borrower shall pay for and obtain or cause to be paid for and obtained all permits, licenses and approvals required by all applicable laws with regard to the Environmental Improvements, whether necessary for commencement, completion, use or otherwise. (c) Borrower shall perform or cause to be performed all work in connection with the Environmental Improvements in a good and workmanlike manner, in compliance with all applicable laws (including, without limitation, any and all environmental laws and laws for the handicapped and/or disabled) and with the plans and specifications approved (in writing) by Lender covering the same, which performance by Borrower shall be without regard to the sufficiency of the Funds. (d) Borrower covenants and agrees that the Environmental Improvements shall be constructed, installed or completed, as applicable, free and clear of any and all liens (including mechanic's, materialman's or other liens), claims and encumbrances whatsoever subject to Borrower's right to contest as specified in the Mortgage (as defined in the Note). (i) to payment of the indebtedness evidenced by the Note and the Loan Documents, and/or (ii) in order to proceed under existing contracts or enter into contracts with third parties to make or complete the Environmental Improvements. Lender shall have the right to enter onto the Mortgaged Property (as defined in the Mortgage) and perform any and all work and labor necessary to make or complete the Environmental Improvements and/or employ watchmen to protect the Mortgaged Property from damage. All sums so expended by Lender shall be construed to have been paid to Borrower and shall be secured by the Mortgage. Borrower hereby constitutes and appoints Lender its true and lawful attorney-in-fact with full power of substitution to complete or undertake the Environmental Improvements in the name of the Borrower. This power of attorney shall be construed to be a power coupled with an interest which cannot be revoked. September 23, 1997 LOS01:48425.3 2

Performance of Improvements. (a) Borrower shall construct, erect, undertake and complete or cause to be constructed, erected, undertaken or completed all of the work set forth on Schedule 1 Exhibit W hereto (the "Environmental ImprovementsREQUIRED REPAIRS") no later than or, with respect to any Additional Property, such work as may be specified in the Engineering Reports delivered to Lender in connection with the initial Subsequent Advance for such Additional Property within one hundred eighty (180) days of the date set forth opposite hereof or the date of such Environmental ImprovementsSubsequent Advance; provided however, in the event that Borrower is unable to accomplish same due to events beyond Borrower's control, including, but not limited to the unavailability of access due to the rights of tenants in occupancy, such period shall be extended for a period equal to the period that such event prevented compliance herewith by Borrower. (b) Borrower shall pay for and obtain or cause to be paid for and obtained all permits, licenses and approvals required by all applicable laws with regard to the Environmental ImprovementsRequired Repairs, whether necessary for commencement, completion, use or otherwise. (c) Borrower shall perform or cause to be performed all work in connection with the Environmental Improvements Required Repairs in a good and workmanlike manner, in compliance with all applicable laws (includinglaws, without limitationordinances, any rules and all environmental laws regulations of federal, state, county or municipal government or agencies now in force or that may be enacted hereafter and laws for the handicapped and/or disabled) and with the plans and specifications approved (in writing) by Lender covering the same, which performance by Borrower shall be without regard to the sufficiency of the FundsRequired Repairs Fund. (d) Borrower covenants and agrees that the Environmental Improvements Required Repairs shall be constructed, installed or completed, as applicable, free and clear of any and all liens (including mechanic's, materialman's or other liens), claims and encumbrances whatsoever whatsoever, subject to Borrower's right to contest as specified in this Agreement or the Mortgage (as defined in the Note)Mortgage. (ie) Each contractor or subcontractor performing the Required Repairs shall be licensed by the appropriate state agency and bonded. Upon Lender's request, Borrower shall provide written evidence that each contractor and subcontractor meets the requirements of this paragraph. (f) Borrower agrees to payment pay and discharge all claims for labor done and material and services furnished in connection with the Required Repairs and to diligently file or procure the filing of a valid notice of completion upon completion of the indebtedness evidenced Required Repairs (if required by applicable governmental agencies); provided that Lender makes any Advances for Capital Improvements with respect to the Note and the Loan Documents, and/or (ii) in order to proceed under existing contracts or enter into contracts with third parties applicable Individual Property that Lender is required to make hereunder. (g) If a notice or complete claim of lien or the Environmental Improvements. like concerning the Property alleging non-payment for Required Repairs performed should be filed, recorded, or served upon Borrower or Lender by a contractor or subcontractor, Lender shall have the right to enter onto the Mortgaged Property (as defined retain in the Mortgage) and perform Required Repairs Fund, in lieu of any and all work and labor necessary to make or complete the Environmental Improvements and/or employ watchmen to protect the Mortgaged Property from damage. All sums so expended by Lender shall be construed to have been paid payment to Borrower then or thereafter due, an amount sufficient to completely satisfy said potential lien. (h) Nothing herein contained shall require Borrower to pay any claims for labor, substances, or services that Borrower in good faith disputes and shall be secured by that Borrower, at Borrower's own expense, is currently and diligently contesting in accordance with the provisions of this Agreement or the Mortgage. Additionally, if Borrower, in good faith disputes the need for any Required Repairs set forth in an Engineering Report delivered to Lender pursuant to SECTION 8.4.1(a), Borrower hereby constitutes may procure its own Engineering Report intending to show why such Required Repairs are not necessary and appoints Lender its true shall reasonably assess such Engineering Report when determining the need for, and lawful attorney-in-fact with full power of substitution to complete or undertake scope of, the Environmental Improvements in the name of the Borrower. This power of attorney shall be construed to be a power coupled with an interest which cannot be revoked. September 23, 1997 LOS01:48425.3 2Required Repairs.