UNDELIVERED, AN ADMINISTRATIVE FEE IN THE AMOUNT OF TWO THOUSAND FIVE HUNDRED
DOLLARS ($2,500) IN THE AGGREGATE FOR ALL FAILURES OCCURRING IN ANY APPLICABLE
MONTH.
BORROWER AGREES THAT SUCH ADMINISTRATIVE FEE (I) IS A FAIR AND
REASONABLE FEE NECESSARY TO COMPENSATE LENDER FOR ITS ADDITIONAL ADMINISTRATIVE
COSTS AND INCREASED COSTS RELATING TO BORROWER'S FAILURE TO DELIVER THE
AFOREMENTIONED STATEMENTS, REPORTS OR OTHER ITEMS AS AND WHEN REQUIRED HEREUNDER
AND (II) IS NOT A PENALTY.
SECTION 2.10.
LITIGATION.
BORROWER WILL GIVE PROMPT WRITTEN NOTICE TO LENDER
OF ANY LITIGATION OR GOVERNMENTAL PROCEEDINGS PENDING OR THREATENED (IN WRITING)
AGAINST BORROWER WHICH ARE REASONABLY LIKELY TO HAVE A MATERIAL ADVERSE EFFECT.
SECTION 2.11.
UPDATES OF REPRESENTATIONS.
BORROWER SHALL DELIVER TO LENDER
WITHIN TEN (10) DAYS OF THE REQUEST OF LENDER AN OFFICER'S CERTIFICATE UPDATING
ALL OF THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS SECURITY INSTRUMENT
AND THE OTHER LOAN DOCUMENTS AND CERTIFYING THAT ALL OF THE REPRESENTATIONS AND
WARRANTIES CONTAINED IN THIS SECURITY INSTRUMENT AND THE OTHER LOAN DOCUMENTS,
AS UPDATED PURSUANT TO SUCH OFFICER'S CERTIFICATE, ARE TRUE, ACCURATE AND
COMPLETE AS OF THE DATE OF SUCH OFFICER'S CERTIFICATE.
NOTWITHSTANDING THE
FOREGOING, PROVIDED THAT NO EVENT OF DEFAULT HAS OCCURRED AND IS CONTINUING,
BORROWER SHALL NOT BE REQUIRED TO DELIVER THE FOREGOING OFFICER'S CERTIFICATE
MORE THAN THREE (3) TIMES DURING THE TERM OF THE LOAN.
FOR THE AVOIDANCE OF
DOUBT, LENDER ACKNOWLEDGES AND AGREES THAT IT SHALL NOT BE THE BASIS OF A
DEFAULT OR EVENT OF DEFAULT HEREUNDER IF ANY REPRESENTATION THAT WAS TRUE WHEN
MADE CEASES TO CONTINUE TO BE TRUE THEREAFTER (UNLESS AND ONLY TO THE EXTENT
THAT THE SAME CONSTITUTES A BREACH OF A COVENANT HEREUNDER OR AN "EVENT OF
DEFAULT" AS EXPRESSLY DEFINED IN SECTION 13.01 HEREOF).
SECTION 2.12.
MAJOR CONTRACTS.
BORROWER SHALL NOT ENTER INTO ANY NEW MAJOR
CONTRACTS OR AMEND ANY EXISTING MAJOR CONTRACTS WITHOUT, IN EACH INSTANCE, FIRST
OBTAINING LENDER'S PRIOR CONSENT, WHICH CONSENT SHALL NOT BE UNREASONABLY
WITHHELD.
NOTWITHSTANDING THE FOREGOING,
49
LENDER HEREBY APPROVES JEFFREY CHODOROW OR ANY ENTITY CONTROLLED BY JEFFREY
CHODOROW AS A RESTAURANT AND BAR OPERATOR FOR THE BARS AND RESTAURANTS SITUATED
AT THE PREMISES, BUT RESERVES THE RIGHT TO APPROVE ANY ECONOMIC TERMS OF ANY NEW
MAJOR CONTRACTS WITH JEFFREY CHODOROW OR ANY ENTITY CONTROLLED BY JEFFREY
CHODOROW UNLESS SUCH NEW MAJOR CONTRACTS ARE ON TERMS WHICH ARE SUBSTANTIALLY
THE SAME OR MORE FAVORABLE TO THE PROPERTY THAN THE TERMS OF THE APPLICABLE
MAJOR CONTRACTS IN EFFECT PRIOR TO THE AMENDMENT OR RENEWAL THEREOF, IN WHICH
CASE SUCH NEW MAJOR CONTRACTS SHALL BE DEEMED APPROVED BY LENDER.
ARTICLE III:
INSURANCE AND CASUALTY RESTORATION
SECTION 3.01.
INSURANCE COVERAGE.
BORROWER SHALL, AT ITS EXPENSE, MAINTAIN THE
FOLLOWING INSURANCE COVERAGES WITH RESPECT TO THE PROPERTY DURING THE TERM OF
THIS SECURITY INSTRUMENT:
(A)
(I) INSURANCE AGAINST LOSS OR DAMAGE BY FIRE, CASUALTY AND OTHER
HAZARDS INCLUDED IN AN "ALL-RISK" COVERAGE ENDORSEMENT OR ITS EQUIVALENT (WHICH,
IN THE CASE OF INSURANCE DURING THE TIME OF ANY CONSTRUCTION WORK
("CONSTRUCTION") SHALL BE IN