Document:

Exhibit 10.1

BUSINESS NOTE

THIS LOAN IS PAYABLE IN FULL AT MATURITY. YOU MUST REPAY THE ENTIRE PRINCIPAL BALANCE OF THE LOAN AND UNPAID INTEREST THEN DUE. THE LENDER IS UNDER NO OBLIGATION TO REFINANCE THE LOAN AT THAT TIME. YOU WILL, THEREFORE, BE REQUIRED TO MAKE PAYMENT OUT OF OTHER ASSETS THAT YOU MAY OWN, OR YOU WILL HAVE TO FIND A LENDER, WHICH MAY BE THE LENDER YOU HAVE THIS LOAN WITH, WILLING TO LEND YOU THE MONEY. IF YOU REFINANCE THIS LOAN AT MATURITY, YOU MAY HAVE TO PAY SOME OR ALL OF THE CLOSING COSTS NORMALLY ASSOCIATED WITH A NEW LOAN EVEN IF YOU OBTAIN REFINANCING FROM THE SAME LENDER.

	
  Loan Number:
  	
  
______________________
  
	
  
 
  	
  
 
  
	
  
Dated:
  	
  
January 12, 2005
  
	
  
 
  	
  
 
  
	
  
Maturity Date:
  	
  
February 1, 2010
  
	
  
 
  	
  
 
  
	
  
Maker:
  	
  
Innovex, Inc., a  Minnesota corporation
   5540 Pioneer Creek Drive
   Maple Plain, Minnesota 55359-9003
  
	
  
 
  	
  
 
  
	
  
Lender:
  	
  
US Federal Credit Union
   1400 Riverwood Drive
   Burnsville, MN 55337
  
	
  
 
  	
  
 
  
	
  Purpose:
  	
  
Commercial
  
	
  
 
  	
  
 
  
	
  
Loan Amount:
  	
  
$4,000,000
  
	
  
 
  	
  
 
  
	
  
Initial Interest Rate:
  	
  
7.00%
  

          Agreement to Pay.  FOR VALUE RECEIVED, the undersigned, Innovex, Inc., a Minnesota corporation (hereinafter referred to as the “Borrower”), whose mailing address is 5540 Pioneer Creek Drive, Maple Plain, Minnesota 55359-9003, hereby agrees and promises to pay to the order of US Federal Credit Union, a federal credit union, its endorsees, successors and assigns (hereinafter sometimes referred to as the “Lender”), at its office and mailing address at 1400 Riverwood Drive, MN 55337, or such other place as the Lender may from time to time designate in writing, the principal sum of  FOUR MILLION and no/100 Dollars ($4,000,000), together with interest on the unpaid principal balance at the rates provided for herein, payable in lawful money of the United States of America, which shall be legal tender for public and private debts at the time of
payment.

          Interest Rate.  The outstanding principal balance hereof shall bear interest at the rate of SEVEN percent (7%) per annum (hereinafter referred to as the “Regular Rate”). Interest shall be computed on the basis of a 360-day year, but shall be charged on the actual number of days principal remains unpaid.

          Late Charge.  Any payment of principal, or interest not made by the Borrower within ten (10) days of the due date thereof shall be subject to a late payment charge equal to FIVE percent (5 %) of the monthly payment.  The late charge shall apply individually to all payments past due with no daily adjustment and shall be used to defray the costs of the Lender incident to collecting such late payment.  This provision shall not be deemed to excuse a late payment or be deemed a waiver of any other rights the Lender may have including the right to declare the entire unpaid principal and interest immediately due and payable.

          Default Rate. 

Upon the occurrence of an Event of Default (as hereinafter defined) the interest
rate shall thereafter increase and shall be payable on the whole of the unpaid
principal balance at a rate equal to at a rate up the maximum allowable rate by
Minnesota law (hereinafter referred to as the “Default
Rate”), which Default Rate shall be effective as of the date of the
occurrence of such Event of Default.  The increase in the interest rate
upon the occurrence of an Event of Default shall be applicable whether or not
the Lender has exercised its option to accelerate the maturity of this Note and
declared the entire unpaid principal indebtedness to be due and payable. 
The Default Rate shall continue until such Event of Default is cured, payment in
full of all indebtedness evidenced by this Note, or completion of all
foreclosure proceedings and redemption periods, whichever shall occur
first.

          Monthly Payments.  Principal and interest owing under this Note shall be payable as follows:

	
   
  	
  
 
  	
  
On   the tenth (10TH) day of February, 2005, and on the tenth day of   each month thereafter, principal and interest shall be due and payable in   equal monthly installments of TWENTY EIGHT THOUSAND TWO HUNDRED SEVENTY ONE   and 17/100 Dollars ($28,271.17) until February 10, 2010 (hereinafter referred   to as the “Maturity   Date”), on which date the entire unpaid principal balance   together with all accrued interest shall become due and payable.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
This   is a balloon note and on the Maturity Date a substantial portion of the   principal amount of this Note will remain unpaid by the monthly payments   above required.
  

All payments shall be applied first to late, second to interest at the rate then in effect under the terms hereof and third to principal, provided however, that if any advance made by the Lender as the result of a default on the part of the Borrower under the terms of this Note or any instrument securing this Note is not repaid on demand, any monies received, at the option of the Lender, may first be applied to repay such advances, plus interest thereon at the Default Rate, and the balance, if any, shall be applied in accordance with the provisions hereof.

          Loan Documents; Security.  This Note is given to evidence the loan described herein (the “Loan”) and is the Note referred to in and/or secured by the following (hereinafter referred to as the “Loan Documents”):

	
  
 
  	
  
 
  	
  
A   Combination Mortgage, Assignment of Rents, and Security Agreement together   with any amendment thereto, the “Mortgage”) given by the Borrower, as   mortgagor, to the Lender, as mortgagee, dated of even date herewith,   encumbering the Borrower’s interest in certain real property and the   improvements, fixtures, equipment and personal property located thereon in   Hennepin County and Meeker County, Minnesota as more particularly described   in the Mortgage (hereinafter referred to as the “Mortgaged Property”);   and
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
An   Assignment of Rents and Leases (together with any amendment thereto, the “Assignment of Rents”)   given by the Borrower, as assignor, to the Lender, as assignee, dated of even   date herewith, assigning to the Lender all of the rents, issues, profits and   leases of the Mortgaged Property; and
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
Any   other documents evidencing or securing the Loan, together with any amendment   thereto.
  

Reference is hereby made to the Loan Documents (which are incorporated herein by reference as fully and with the same effect as if set forth herein at length) for a more complete description of the Mortgaged Property, a statement of the covenants and agreements made with respect thereto, a statement of the rights and remedies afforded thereby and all other matters contained therein.

          Default and Acceleration; Waivers.  The failure to pay when due any installment under this Note, or the occurrence of an Event of Default), shall constitute an Event of Default hereunder, and the entire unpaid principal balance together with accrued interest at the Default Rate shall become, without notice, immediately due and payable at the option of the Lender.  No delay or omission on the part of the Lender in exercising any right hereunder shall operate as a waiver of such right or of any other remedy under this Note.  A waiver on any one occasion shall not be construed as a bar to or waiver of any such right or remedy on a future occasion.

          Prepayment Privilege. 

          The indebtedness evidenced hereby may be prepaid in whole or in part at any time without premium or penalty. The Borrower shall provide the Lender with not less than fifteen (15) nor more than one hundred twenty (120) days prior written notice of any prepayment of the Loan.

          Costs of Collection.  The Borrower agrees that if, and as often as, this Note is placed in the hands of an attorney for collection or to defend or enforce any of the Lender’s rights hereunder or under the Mortgage[, the Assignment of Rents] or any other Loan Document securing payment of this Note, the Borrower will pay to the Lender its attorneys’ fees and all court costs (including attorneys’ fees and court costs prior to trial, at trial and on appeal, or in any bankruptcy proceeding) and other expenses incurred in connection therewith.

          Time.  Time is of the essence of this Note and each of the provisions hereof.

          Governing Law.  This Note shall be governed by the laws of the State of Minnesota.

          Interest Limitation.  All agreements between the Borrower and the Lender are hereby expressly limited so that in no contingency or event whatsoever, whether by reason of acceleration of maturity of the indebtedness evidenced hereby or otherwise, shall the amount paid or agreed to be paid to the Lender for the use, forbearance, loaning or detention of the indebtedness evidenced hereby exceed the maximum permissible under applicable law.  If from any circumstances whatsoever, fulfillment of any provisions hereof or of the Mortgage, the Assignment of Rents, or any other Loan Document at

any time given shall exceed the maximum permissible under applicable law, then the obligation to be fulfilled shall automatically be reduced to an amount which complies with applicable law, and if from any circumstances the Lender should ever receive as interest an amount which would exceed the highest lawful rate of interest, such amount which would be in excess of such lawful rate of interest shall be applied to the reduction of the principal balance evidenced hereby and not to the payment of interest.  This provision shall control every other provision of all agreements between the Borrower and Lender and shall also be binding upon and available to any subsequent holder of this Note.

          Waivers.  This Note shall be the joint and several obligation of all makers, sureties, guarantors and endorsers, and shall be binding upon them and their successors and assigns.  The Borrower, all sureties, guarantors and endorsers and all other persons liable for all or any part of the principal balance evidenced by this Note severally waive presentment for payment, protest, notice of nonpayment and notice of dishonor.  Such parties hereby consent, without affecting their liability, to any extension or alteration of the time or terms of payment hereof, any renewal, any release of any or all of the security given for the payment hereof, any acceptance of additional security of any kind, and any release of, or resort to any party liable for payment hereof.

          Disbursement.  Funds representing the proceeds of the indebtedness evidenced hereby which are disbursed by Lender by mail, wire transfer or other delivery to the Borrower, to escrows or otherwise for the benefit of the Borrower shall, for all purposes, be deemed outstanding hereunder and to have been received by Borrower as of the date of such mailing, wire transfer or delivery and until repaid, notwithstanding the fact that such funds may not at any time have been remitted by such escrows to the Borrower or for its benefit.

          Captions.  The captions to the Sections of this Note are for convenience only and shall not be deemed part of the text of the respective Sections and shall not vary, by implication or otherwise, any of the provisions of this Note.

          Notices.  All notices required or permitted to be given hereunder to Borrower or the Lender shall be given in the manner and to the place as provided in the Mortgage.

          Due-on-Sale-and-Encumbrance Call Provisions.  The Mortgage provides for certain rights on the part of the Lender to call all outstanding principal and accrued interest on this Note due and payable in full in the event that (a) Borrower should sell, transfer, lease, sublease or convey any interest of Borrower, legal or equitable, in the Mortgaged Property; (b) Borrower should sell, transfer or encumber any of the equity interests in Borrower; or (c) Borrower should mortgage, pledge, encumber or permit a lien to be outstanding against the Mortgaged Property or any portion thereof, or any security interest to exist therein, without, in each instance, the prior written consent of Lender.  Reference to the Mortgage must be made for the terms of these provisions.  Such provisions are incorporated herein by this reference.

          Partial Nonrecourse to Borrower.  Subject to the provisions of this Section 17, Borrower shall have no personal liability to pay the outstanding principal balance of this Note or any interest that may accrue thereon, all such liability being expressly waived by the Lender, and Lender’s monetary remedies under this Note, the Mortgage and the Assignment of Rents shall be limited to Borrower’s interest in the Mortgaged Property and the improvements, furnishings, equipment, leases and rents on which the Mortgage and the Assignment of Rents constitute a lien.  

          Notwithstanding the foregoing, it is expressly understood and agreed that if Borrower breaches Section 16 of this Note and any such event shall continue for 30 days following written notice to Borrower from Lender of such default, such event shall constitute an “Event of Default” and the first paragraph of this Section 17 shall thereafter not apply and the Borrower and any general partner of Borrower (if Borrower is a partnership) (each individually and on a joint and several basis if more than one) shall be personally liable on a joint and several basis for full recourse liability under this Note and the other Loan Documents.  

          Notwithstanding
the foregoing, it is expressly understood and agreed that the limitation on
liability set forth in the first paragraph of this Section 17 shall in no way
affect or apply to the Borrower’s continued liability for the payment to
Lender of:  (i) any rents, issues, profits and/or income collected by the
Borrower in excess of normal and verifiable operating expenses from the
Mortgaged Property after the occurrence of an Event of Default hereunder or
under the Mortgage[, the Assignment of Rents] or any other Loan Document; (ii)
unrefunded security deposits made by tenants of the Mortgaged Property; (iii)
any rent, issues, profits and/or income from the Mortgaged Property which have
been prepaid more than thirty (30) days in advance; (iv) payments of taxes,
special assessments, insurance premiums, or utility charges, the payment of
which is required to be made by the Borrower under the terms of the Mortgage;
(v) reasonable attorney’s fees and expenses incurred by the Lender in
connection with enforcement by Lender of its rights under this Section 17; (vi)
insurance proceeds and condemnation awards, payments and consideration which the
Borrower receives and to which the Lender is entitled pursuant to the terms
hereof, of the Mortgage, the Assignment of Rents or of any other Loan Document;
(vii) damage to the Mortgaged Property from waste committed or permitted by the
Borrower or from a failure by the Borrower to maintain or repair the Mortgaged
Property in the manner required by the Mortgage; (viii) losses, liabilities,
costs, expenses or damage occurring by reason of the failure of the Borrower to
observe and perform its covenants and indemnities respecting the existence,
release or discharge of Hazardous Materials, as defined in Section 14 of the
Mortgage; and (ix) any loss or claim incurred by or asserted against Lender as a
result of fraud or misrepresentation in connection with the loan evidenced by
this Note.  Nothing contained herein shall be deemed to release the Borrower
from its obligations under the terms of the separate Environmental Indemnity
dated of even date herewith executed by Borrower in connection with the loan
evidenced by this Note.

          WAIVER OF JURY TRIAL.  THE LENDER BY ITS ACCEPTANCE HEREOF AND THE BORROWER HEREBY VOLUNTARILY, KNOWINGLY AND INTENTIONALLY WAIVE ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING ARISING UNDER THIS NOTE OR CONCERNING THE INDEBTEDNESS EVIDENCED HEREBY AND/OR ANY COLLATERAL SECURING SUCH INDEBTEDNESS, REGARDLESS OF WHETHER SUCH ACTION OR PROCEEDING CONCERNS ANY CONTRACTUAL OR TORTIOUS OR OTHER CLAIM.  THE BORROWER ACKNOWLEDGES THAT THIS WAIVER OF JURY TRIAL IS A MATERIAL INDUCEMENT TO THE LENDER IN EXTENDING CREDIT TO THE BORROWER, THAT THE LENDER WOULD NOT HAVE EXTENDED SUCH CREDIT WITHOUT THIS JURY TRIAL WAIVER, AND THAT THE BORROWER HAS BEEN REPRESENTED BY AN ATTORNEY OR HAS HAD AN OPPORTUNITY TO CONSULT WITH AN ATTORNEY IN CONNECTION WITH THIS JURY TRIAL WAIVER AND UNDERSTANDS THE LEGAL EFFECT OF THIS WAIVER.

          Jurisdiction and Venue.  The Borrower hereby irrevocably agrees that any legal action or proceedings against it with respect to this Note may be brought in the courts of the State of Minnesota, or in any United States District Court in the State of Minnesota, and by the execution and delivery of this Agreement, the Borrower hereby irrevocably submits to the jurisdiction of each such court and hereby irrevocably waives any and all objections that the Borrower may have as to jurisdiction or venue in any of such courts.  The Borrower acknowledges that it has received sufficient consideration for any inconvenience which may be caused by any legal action brought in the State of Minnesota, and agrees that the enforcement of the provisions of this Section against the Borrower would not be unreasonable or unfair under all the circumstances of the loan evidenced by this Note.

          Entire Agreement.  This Note and the Loan Documents contain the entire agreement of the parties regarding the Loan.  Without limiting the generality of the foregoing, this Note and the Loan Documents supersede any term sheet, loan application or commitment letter issued by the Lender or submitted by the Borrower in connection with the Loan.

          Business Purpose.  The Borrower represents and warrants to the Lender that the Borrower will use the proceeds of the Loan solely for business purposes.

          Miscellaneous.  From time to time, without affecting the obligation of the undersigned or the successors or assigns of the undersigned to pay the outstanding principal balance of this Note and observe the covenants of the undersigned contained herein, without affecting the guaranty of any person, corporation, partnership or other entity for payment of the outstanding principal balance of this Note, without giving notice to or obtaining the consent of the undersigned, the successors or assigns of the undersigned or guarantors, and without liability on the part of the holder hereof, the holder hereof may, at the option of the holder hereof, extend the time for payment of said outstanding principal balance or any part thereof, reduce the payments thereon, release anyone liable on any of said outstanding principal balance, accept a renewal of this Note, agree with the undersigned to modify the
terms and time of payment of said outstanding principal balance, join in any extension or subordination agreement, release any security given heretofore, take or release other or additional security, and agree in writing with the undersigned to modify the rate of interest or period of amortization of this Note or change the amount of the monthly installments payable hereunder.

          IN WITNESS WHEREOF, the Borrower has executed this Promissory Note as of the date and year first above written.

	
  
 
  	
  
INNOVEX, INC., a MINNESOTA CORPORATION
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
/s/   DOUGLAS W. KELLER
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
Douglas   W. Keller
  
	
   
  	
  Its:
  	
  Vice   President, FinanceExhibit 10.2

COMBINATION MORTGAGE, ASSIGNMENT OF RENTS,
 AND SECURITY AGREEMENT 

NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, ENFORCEMENT OF THIS MORTGAGE IS LIMITED TO A DEBT AMOUNT OF $7,104,000.00. UNDER CHAPTER 287 OF MINNESOTA STATUTES.

          This Combination Mortgage, Assignment of Rents, Security Agreement and Fixture Financing Statement (this “Mortgage”), dated as of the 10th day of January, 2005 is made by Innovex, Inc., a Minnesota corporation, and Innovex Precision Components, Inc., a Minnesota corporation, (“Borrower”), for the benefit of US Federal Credit Union, a federal credit union (the “Lender”).

          WHEREAS, Borrower has executed a Promissory Note, dated as of the date hereof (together with any and all renewals, extensions or modifications thereof and any and all notes issued in substitution therefor, the “Note”), payable to Lender to evidence Borrower’s obligation to repay a loan (the “Loan”) from Lender in the principal amount of FOUR MILLION and no/100 Dollars ($4,000,000).

          WHEREAS, the principal of the Note, with interest thereon at the rate or rates provided in the Note, is finally due and payable on February 10, 2010; and

          WHEREAS, as a condition to making the Loan, Lender has required the execution and delivery of this Mortgage to Lender.

          NOW, THEREFORE, in consideration of the premises contained herein and for the purpose of securing:  (a) the repayment of the indebtedness evidenced by the Note and all renewals, extensions and modifications thereof, including all interest thereon; (b) the payment of all other sums with interest thereon as may be advanced by Lender in accordance with (i) this Mortgage, or (ii) any Loan Document (as defined below) or other instruments securing payment of the Note (the indebtedness evidenced by the Note and all such other sums are hereinafter collectively referred to as the “Indebtedness”, such Indebtedness constituting the “initial amount of the debt” within the meaning of Minn. Stat. §287.03); and (c) the performance of all the covenants and agreements of Borrower contained in the Note, this Mortgage, and every other Loan Document; Borrower does hereby
mortgage, assign, grant, bargain, sell, release and convey unto Lender forever, with power of sale, all the tracts or parcels of land located in Hennepin and Meeker County, Minnesota, described in Exhibit A attached hereto (the “Land”), together with all of Borrower’s estate, right, title, interest, claim or demand, which Borrower now has or may hereafter acquire in or to the following:

	
  
(1)
  	
  
all of the   buildings, structures and other improvements now standing or at any time   hereafter constructed or placed upon the Land (the “Improvements”);
  
	
   
  	
  
 
  
	
  
(2)
  	
  
all building   fixtures, appurtenances, apparati, whatsoever that is now or hereafter (A)   attached or affixed to the Land or the Improvements, or both, (B) situated   upon or about the Land or Improvements, or both, regardless of whether   physically affixed or severed or capable of severance from the Land or   Improvements, including without limitation any and all heating, air   conditioning, water, gas, lighting, incinerating and power equipment;   engines, compressors, conveyors, condensers, fans, dryers, blowers, pipes,   pumps, tanks, motors, conduits, wiring and switchboards; plumbing, lifting,   cleaning, fire prevention, fire extinguishing, sprinkling, 
  

	
  
 
  	
  
refrigerating,   ventilating, waste removal and communications equipment and apparatus;   boilers, furnaces, vacuum cleaning systems, elevators, exhaust systems,   refrigerators; rugs, attached floor coverings, lockers; finishings and any   additions, accessions, renewals, replacements and substitutions of any or all   of the foregoing; except the following fixtures encumbered by that certain   UCC Financing Statement in favor of General Electric Capital Business Asset   Funding Corporation, as Secured Party, filed April 22, 2002 as Document No.   3534372 in the Office of the Registrar of Titles, Hennepin County, Minnesota:
  
	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
New fixture   circuit manufacturing equipment including but not limited to one (1) Pioneer   Platter Unwind/Rewind System together with all accessions, attachments and   additions thereto and replacements thereof;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
and except   the following fixtures encumbered by that certain UCC Fixture Financing   Statement in favor of General Electric Capital Business Asset Funding   Corporation, as Secured Party, filed October 3, 2000 as Document No. 293060   in the office of the County Recorder, Meeker County, Minnesota:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          New   flexible circuit manufacturing equipment including but not limited to one (1)   AOI Unwind/Rewind System, three (3) 3500 Series Double 8KW 2-sided exposure   system, one (1) Frontier Industrial Tech Roll to Roll Material Handling   System, one (1) Cooling System for Phototools and one (1) Reel to Reel Automated   Optical Inspection system together with all accessions, attachments and   additions thereto and replacements thereof.
  
	
  
 
  	
  
 
  	
  
 
  
	
  (3)
  	
  
all   easements, interests, privileges, licenses, permits and other rights of any   nature whatsoever benefiting or otherwise appurtenant to the Land or the   Improvements, or both, including without limitation, the benefit of all   rights of-way, easements, riparian and littoral rights, water, water rights   and powers, rights to and to sell fill, strips or gores of land, streets,   alleys, ways, passages, paving, railroad sidings, drainage rights, sewer   rights, and rights of ingress and egress to and from the Land and all   adjoining property, whether now existing or hereafter arising, together with   the reversion or reversions, remainder or remainders; leases, rents, issues,   incomes, and profits of, related to or in any way arising, from any portion   of the Land or the Improvements; all rights, royalties and profits in   connection with all minerals, oil and gas and other hydrocarbon substances thereon   or therein, development rights or credits, air
rights, water, water rights   flowing through, belonging or in any way appertaining to the Land, and all of   Borrower’s water rights that are personal property under Minnesota law,   including but not limited to all ditch and ditch rights, reservoir and   reservoir rights, stock or interests in water, irrigation or ditch companies,   permits, consents, operating agreements, consent orders and all other   tangible property and rights relating to any or all of the aforesaid property   or the operation thereof; all flowers, shrubs, landscaping, trees and timber   and other emblements now or hereafter located on the Land or under or above   the same, or any part of parcel thereof;
  
	
  
 
  	
  
 
  
	
  
(4)
  	
  
all of the   water, sanitary and storm sewer systems and lines now or hereafter owned by   Borrower which are now or hereafter located on, over or upon the Land or any   part thereof, including all water mains, service laterals, hydrants, valves   and appurtenances, lift and pump stations, sanitary sewer lines, sanitary   sewer mains, sanitary sewer laterals, sanitary sewer manholes and sanitary   sewer appurtenances;
  

	
  
(5)
  	
  
all of   Borrower’s right, title, interest, property, claim, demand, judgments, awards   proceeds and settlements or payments, including interest thereon and the   right to receive the same, at law as well as in equity, as a result of (A)   insurance proceeds pursuant to the insurance provisions hereof, or (B) the   exercise of the right of eminent domain or other condemnation or taking of   the property encumbered by this Mortgage, or (C) the alteration of the grade   of any street, or (D) any other injury to, condemnation of, taking or   requisitioning of, conversion of (voluntary or involuntary), damage to or   decrease in the value of the property encumbered by this Mortgage;
  
	
  
 
  	
  
 
  
	
  
(6)
  	
  
all plans;   specifications; maps; surveys; studies; reports; permits; licenses;   architectural, engineering, development, construction, management,   maintenance, service and other contracts; books of account; insurance   policies; and other documents, of whatever kind or character, relating to the   use, development, construction upon, occupancy, leasing, management, sale or   operation of the Land and the Improvements; and
  
	
  
 
  	
  
 
  
	
  
(7)
  	
  
any   after-acquired interest in the Land or any of the foregoing, together with   all additions, accessions, increases, parts, fittings, accessories,   replacements, substitutions, betterments, and repairs to and proceeds from   any and all of the foregoing;
  

(all of the foregoing, together with the Land are hereinafter referred to as the “Mortgaged Property”).

To Have and To Hold the Mortgaged Property unto Lender, its successors and assigns, forever; provided, nevertheless, that this Mortgage is upon the express condition that if Borrower shall pay as and when due and payable the principal of and interest on the Note and all other Indebtedness, and shall cancel and terminate any commitment of Lender to make future advances to Borrower, and shall also keep and perform each and every covenant and agreement of Borrower herein contained, then this Mortgage and the estate hereby granted shall cease and be and become void and shall be released and satisfied of record at the expense of Borrower; otherwise this Mortgage shall be and remain in full force and effect.

Borrower represents, warrants and covenants to and with Lender that it is lawfully seized of the Land in fee simple, and has good right and full power and authority under all applicable provisions of law and under its organizational documents to execute this Mortgage and to mortgage the Mortgaged Property; that the Mortgaged Property is free from all liens, security interests and encumbrances except as listed in Exhibit B attached hereto; and that Borrower will warrant and defend the title to the Mortgaged Property and the lien and priority of this Mortgage against all claims and demands of all persons whomsoever, whether now existing or hereafter arising, not listed in Exhibit B.  The covenants and warranties of this paragraph shall survive foreclosure of this Mortgage and shall run with the Land.

As used herein, the term “Loan Document” means:  (i) the Note, as modified by any addendum thereto; (ii) this Mortgage; (iii) any separate assignment of rents and/or leases given by Borrower to Lender and covering the Mortgaged Property; (iv) any reserve or escrow agreement relating to completion of improvements, replacements, repairs, tenant improvements, leasing commissions and/or debt service; and (v) all other documents, agreements or certificates arising under, related to, or made in connection with, the loan evidenced by the Note.

Borrower further covenants and agrees as follows:

1.        Payment of
the Note.  Borrower will duly and punctually pay the principal of and
interest on the Note in accordance with the terms of the Note, and all other
Indebtedness, when and as due and payable.  The provisions of the Note are
hereby incorporated by reference into this Mortgage as fully as if set forth at
length herein.

2.        Fund for Taxes and Assessments.

	
  
    (a)
  	
  
During the   continuance of an Event of Default hereunder, Borrower shall pay to Lender on   the first day of each month until the Note is paid in full, a sum equal to   one-twelfth of the yearly taxes and assessments levied against the Mortgaged   Property as estimated initially and from time to time by Lender, to be   applied by Lender to pay said taxes and assessments (such amounts being   hereafter referred to as the “Funds”).    Lender shall apply the Funds to pay said taxes and assessments prior to   the date that penalty attaches for nonpayment so long as the amount of Funds   held by Lender is sufficient at that time to make such payments.  No earnings or interest shall be payable   to Borrower on the Funds.  Such Funds   shall not be, nor be deemed to be, trust funds, and Lender shall have the   right to hold the Funds in any manner Lender elects and may commingle the   Funds with other moneys held by
Lender.
  
	
  
 
  	
  
 
  
	
  (b)
  	
  
If the   amount of the Funds held by Lender shall exceed at any time the amount deemed   necessary by Lender to provide for the payment of taxes and assessments, such   excess shall, at the option of Lender, either be promptly repaid to Borrower   or be credited to Borrower on the next monthly installment of Funds due.  If at any time the amount of the Funds   held by Lender shall be less than the amount deemed necessary by Lender to   pay taxes and assessments as they fall due, Borrower shall promptly pay to   Lender any amount necessary to make up the deficiency upon notice from Lender   to Borrower requesting payment thereof.    The Funds are hereby pledged to Lender as additional security for the   Indebtedness.
  
	
  
 
  	
  
 
  
	
  
 (c)
  	
  
Upon the   occurrence of any Event of Default, Lender may apply in any order as Lender   shall determine in its sole discretion, any Funds held by Lender at the time   of application to pay taxes and assessments which are then or will thereafter   become due or as a credit against the Indebtedness.  Upon payment in full of all Indebtedness and the expiration or   termination of any commitment of Lender to make advances to Borrower, Lender   shall promptly refund to Borrower any Funds held by Lender.
  

 3.       Payment
  of Taxes, Assessments and Other Charges.  Subject to payments in the
  manner provided under Section 2 and subject to Section 7 relating to contests,
  Borrower shall pay before a penalty might attach for nonpayment thereof, all
  taxes and assessments and all other charges whatsoever levied upon or assessed
  or placed against the Mortgaged Property, except that assessments may be paid
  in installments so long as no fine or penalty is added to any installment for
  the nonpayment thereof.  Borrower shall likewise pay when due all taxes,
  assessments and other charges, levied upon or assessed, placed or made against,
  or measured by, this Mortgage, or the recordation hereof, or the Indebtedness
  secured hereby.  In the event of any legislative action or judicial decision
  after the date of this Mortgage, imposing upon Lender the obligation to pay
  any such taxes, assessments or other charges, or deducting the amount secured
  by this Mortgage from the value of the Mortgaged Property for the purpose of
  taxation, or changing in any way the laws now in force for the taxation of mortgages,
  deeds of trust or debts secured thereby, or the manner of the operation of any
  such taxes so as to affect the interests of Lender, then, and in such event,
  Borrower shall bear and pay the full amount of such taxes, assessments or other
  charges.  Notwithstanding the foregoing provisions of this paragraph, if
  for any reason payment by Borrower of any such taxes, assessments or other charges
  would be unlawful, or if the payment thereof would render the indebtedness evidenced
  by the Note usurious, Lender may declare the whole sum secured by this Mortgage,
  with interest thereon, to be immediately due and payable.  Borrower shall
  promptly furnish to Lender all notices received by Borrower of amounts due under
  this paragraph and in the event Borrower shall make payment directly, Borrower
  shall promptly furnish to Lender receipts evidencing such payments. 

 4.        Payment
  of Utility Charges.  Subject to Section 7 relating to contests, Borrower
  shall pay all charges (exclusive of charges which are the obligations of third
  parties to pay) made by utility companies, whether public or private, for electricity,
  gas, heat, water, or sewer, furnished or used in connection with the Mortgaged
  Property or any part thereof, and will, upon written request of Lender, furnish
  proper receipts evidencing such payment.

 5.        Liens. 
  Subject to Section 7 relating to contests, Borrower shall not create, incur
  or suffer to exist any lien, encumbrance or charge on the Mortgaged Property
  or any part thereof, other than the liens set forth in Exhibit B hereto. 
  Borrower shall pay, when due, the claims of all persons supplying labor or materials
  to or in connection with the Mortgaged Property within fifteen (15) calendar
  days of the date that Borrower or Lender receives notice of same, whichever
  occurs first.

 6.        Compliance
  with Permitted Encumbrances and Laws.  Subject to Section 7 relating
  to contests, Borrower shall comply with all present and future statutes, laws,
  rules, orders, regulations and ordinances affecting the Mortgaged Property,
  any part thereof or the use or operation thereof and shall comply with all covenants,
  conditions and restrictions applicable to Borrower which are contained in any
  document constituting a permitted encumbrance as set forth in Exhibit B hereto.

 7.        Permitted
  Contests.  Borrower shall not be required to (i) pay any tax, assessment
  or other charge referred to in Section 3 hereof, (ii) pay any charge referred
  to in Section 4 hereof, (iii) discharge or remove any lien, encumbrance or charge
  referred to in Section 5 hereof, or (iv) comply with any statute, law, rule,
  regulation or ordinance referred to in Section 6 hereof, so long as Borrower
  shall (1) contest, in good faith, the existence, amount or the validity thereof,
  the amount of damages caused thereby or the extent of its liability therefor,
  by appropriate proceedings which shall operate during the pendency thereof to
  prevent (A) the collection of, or other realization upon the tax, assessment,
  charge or lien, encumbrance or charge so contested, (B) the sale, forfeiture
  or loss of the Mortgaged Property or any part thereof and (C) any interference
  with the use or occupancy of the Mortgaged Property or any part thereof and
  (2) shall give such security to Lender as may be demanded by Lender to ensure
  compliance with the foregoing provisions of this Section.  Borrower shall
  give prompt written notice to Lender of the commencement of any contest referred
  to in this Section.

8.        Insurance.

	
  
 (a)
  	
  
Risks to be   Insured.  Borrower, at its sole cost   and expense, will maintain insurance of the following character:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
    (i)
  	
  
Insurance on   any Improvements now existing or hereafter erected on the Land and on the   fixtures and personal property included in the Mortgaged Property against   loss by fire, and other hazards covered by the so-called “all-risk” form of   policy without a co-insurance clause in an amount equal to the actual   replacement cost thereof (exclusive of foundations and excavations) without   deduction for physical depreciation, which insurance shall in no event be   less than the unpaid Indebtedness outstanding at any given time.  Borrower will at its sole cost and   expense, from time to time and at any time, at the request of Lender, provide   Lender with evidence satisfactory to Lender of the replacement cost of the   Mortgaged Property.
  

	
   
  	
  
    (ii)
  	
  
While any   Improvement is in the course of being constructed or rebuilt on the Land,   Borrower shall provide the aforesaid hazard insurance in builder’s risk   completed value form, including coverage available on the so-called   “all-risk” non-reporting form of policy for an amount equal to 100% of the   insurable replacement value of such building or other improvement.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
    (iii)
  	
  
If the   Mortgaged Property includes steam boilers or other equipment for the   generation or transmission of steam, insurance against loss or damage by   explosion, rupture or bursting of steam boilers, pipes, turbines, engines and   other pressure vessels and equipment, in an amount satisfactory to Lender,   without a co-insurance clause.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 (iv)
  	
  
If the Land   or any part thereof is located in a designated official flood-hazardous area,   flood insurance insuring the Improvements now existing or hereafter erected   on the Land in an amount equal to the lesser of the outstanding principal   balance of the Indebtedness or the maximum limit of coverage made available   with respect to such Improvements under the Federal Flood Disaster Protection   Act of 1973, as amended, and the regulations issued thereunder.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(v) 
  	
  
Comprehensive   general liability insurance, including broad form property damage, blanket   contractual and personal injuries (including death resulting therefrom),   containing minimum limits per occurrence not less than $10,000,000.00.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(vi) 
  	
  
While any   Improvement is in the course of being constructed, renovated or rebuilt on   the Land, such workers’ compensation insurance as is required by statute.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
    (vii)
  	
       Rental income insurance against
        interruption of receipt of rents in respect of the Mortgaged Property
        in an amount sufficient to pay one (1) year’s debt service on the
        Note, including principal and interest thereof and together with the tax
        and assessment payments described in Section 2.

    
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
 (viii)
  	
  
Such other   insurance as may from time to time be reasonably required by Lender in order   to protect the interest of Lender.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
    (b)
  	
       Policy Provisions. 
        All policies of insurance required pursuant to Section 8(a):  (i) shall
        contain a standard noncontributory mortgagee clause naming Lender as the
        person to which all payments made by such insurance company shall be paid,
        (ii) shall be maintained throughout the term of this Mortgage without
        cost to Lender, (iii) shall be assigned and delivered to Lender, (iv)
        shall contain such provisions as Lender deems reasonably necessary or
        desirable to protect the interests of Lender, including, without limitation,
        endorsements providing that neither Borrower, Lender nor any other party
        shall be a co-insurer under said policies and that Lender shall receive
        at least thirty (30) days prior written notice or, if the risk is reinsured,
        at least ninety (90) days prior written notice, of any modification, reduction
        or cancellation, (v) shall be for a term of not less than one year, (vi)
        shall be issued by an insurer licensed in the State of Minnesota, (vii)
        shall provide that Lender may, but shall not be obligated to, make premium
        payments to prevent any cancellation, endorsement, alteration or reissuance,
        and such payments shall be accepted by the insurer to prevent same, (viii)
        shall be satisfactory in form and substance to Lender and shall be approved
        by Lender as to amounts, form, risk coverage, deductibles, loss payees
        and insureds, and (ix) shall provide that all claims shall be allowable
        on events as they occur.  All insurance policies and renewals thereof
        maintained by Borrower

    

	
  
 
  	
       pursuant to subsections 8(a)(i) through
        8(a)(iv) and 8(a)(vii) above shall contain a standard mortgagee clause in favor of and
        in form acceptable to Lender.  The insurance maintained pursuant
        to subsections 8(a)(v) and 8(a)(vi) shall name Lender as an additional insured. 
        Upon demand therefor, Borrower shall reimburse Lender for all of Lender’s
        reasonable costs and expenses incurred in obtaining any or all of said
        policies or otherwise causing the compliance with the terms and provisions
        of this Section 8, including (without limitation) obtaining updated flood
        hazard certificates and replacement of any so-called “forced placed”
        insurance coverages.  All policies required pursuant to Section 8(a)
        shall be issued by an insurer with a claims paying ability rating of “A”
        or better by Standard & Poor’s Ratings Services.  Borrower
        shall pay the premiums for such policies as the same become due and payable. 
        If Borrower receives from any insurer any written notification or threat
        of any actions or proceedings regarding the non-compliance or non-conformity
        of the Mortgaged Property with any insurance requirements, Borrower shall
        give prompt notice thereof to Lender.

    
	
  
 
  	
  
 
  
	
  
    (c)
  	
       Delivery of Policy. 
        Borrower will deliver to Lender copies of policies satisfactory to Lender
        evidencing the insurance which is required under subsections 8(a)(i) through
        8(a)(iv) and 8(a)(vii), certificates evidencing the insurance which is required under
        subsections 8(a)(v) and 8(a)(vi), and Borrower shall promptly furnish to Lender copies
        of all renewal notices and all receipts of paid premiums received by them.
        Borrower shall promptly deliver to Lender a copy of a renewal policy in
        form satisfactory to Lender.

    
	
   
  	
  
 
  
	
  
(d) 
  	
  
Assignment of Policies.  In the event of the entry of judgment of   foreclosure, sale of the Mortgaged Property by non-judicial foreclosure sale   or delivery of a deed in lieu of foreclosure, Lender hereby is authorized   (without the consent of Borrower) to assign any and all policies to the   purchaser or transferee thereunder, or to take such other steps as Lender may   deem advisable to cause the interest of such transferee or purchaser to be   protected by any of the policies without credit or allowance to Borrower for   prepaid premiums thereon.
  
	
  
 
  	
  
 
  
	
  
 (e)
  	
  
Notice of Damage or Destruction, Adjusting Loss.  If the Mortgaged Property or any part   thereof shall be damaged or destroyed by fire or other casualty, Borrower   will promptly give written notice thereof to the insurance carrier and   Lender, and will not adjust any damage or loss which is estimated by Lender   in good faith to exceed $100,000.00 unless Lender shall have joined in such   adjustment; but if there has been no adjustment of any such damage or loss   within four months from the date of occurrence thereof and if an Event of   Default shall exist at the end of such four-month period or at any time   thereafter, Lender may alone make proof of loss, adjust and compromise any   claim under the policies and appear in and prosecute any action arising from   such policies.  In connection   therewith, Borrower does hereby irrevocably authorize, empower and appoint   Lender as attorney-in-fact for Borrower (which appointment is coupled with
an   interest) to do any and all of the foregoing in the name and on behalf of   Borrower.
  
	
   
  	
  
 
  
	
  
 (f)
  	
       Application of Insurance Proceeds. 
        Subject to Borrower’s rights to adjust claims under Section 8(e) above,
        all sums paid under any policy required by subsections 8(a)(i) through 8(a)(iv) and
        8(a)(vii) shall be paid directly to Lender.  Lender shall, upon Borrower’s
        request, apply such sums (after first deducting therefrom Lender’s
        expenses incurred in collecting the same, including reasonable attorneys’
        fees) to such restoration or repair (the “Restoration”)
        upon satisfaction of the following conditions:

    

	
  
 
  	
  
  (i)
  	
  
No Event of   Default or event that, but for the passing of time or the giving of notice,   or both, would be an Event of Default, shall have occurred and be continuing   at the time of such request.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
      (ii)
  	
  
Prior to   commencing the Restoration, other than temporary work to protect property or   prevent interference with business, Lender shall have been furnished and   shall have approved (A) the plans and specifications for the Restoration, (B)   Borrower’s choice of an architect or engineer for the purpose of supervising   the Restoration, (C) a sworn construction statement duly executed by   Borrower, showing all costs and expenses of any kind incurred or estimated to   be incurred in completing the Restoration, (D) a copy of each contract let by   Borrower relating to completion of the Restoration, and (E) evidence   satisfactory to Lender that all required permits for completion of the   Restoration have been obtained.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
  (iii) 
  	
  
Borrower   shall deposit with Lender the difference, if any, between the cost of the   Restoration and the amount of the insurance proceeds available for such   purpose.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
  (iv) 
  	
  
The   Mortgaged Property can, in Lender’s judgment, with diligent restoration or   repair, be returned to an economic unit not less valuable and not less useful   than the Mortgaged Property was prior to the casualty within the earlier to   occur of (A) twelve months after receipt of the insurance proceeds by either   Borrower or Lender and (B) the stated maturity date of the Note.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
  (v) 
  	
  
Borrower   shall authorize Lender to disburse such funds and such proceeds in   installments as work progresses and to pay fees and charges of any title   insurance company engaged as disbursing agent, including but not limited to   fees in connection with title searches as to mechanics’ liens arising in   connection with the Restoration, fees of any architect or engineer engaged by   Lender to review the plans and specifications for the Restoration and to make   periodic inspections of the Restoration, and reasonable attorney’s fees   incurred by Lender in connection with the Restoration.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
  (vi) 
  	
  
Each request   for a draw of such funds shall be limited to the total costs of Restoration   actually incurred to the date of such draw request, minus such holdback as   Lender may reasonably require, and minus prior disbursements made by Lender   to Borrower in connection with any previous draw made in connection with the   Restoration.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
  (vii) 
  	
  
At the time   of submission of any draw request, Borrower shall submit to Lender a search   prepared by a title insurance company acceptable to Lender, showing that no   mechanic’s liens appear of record with respect to the Mortgaged Property that   have not been discharged of record.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
  (viii) 
  	
  
To the   extent that the cost of completing the Restoration, as estimated at any time   and from time to time by Lender in good faith, shall exceed the proceeds and   funds then held by Lender for such Restoration, Borrower shall promptly   deposit with Lender an amount equal to such excess.  Lender may disburse such deposited sums prior to further   disbursement of any insurance proceeds.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
  (ix) 
  	
  
Borrower shall have provided to Lender
such zoning letters, surveys and other documentation as Lender shall reasonably
require to establish that upon completion of the Restoration the Mortgaged
Property shall (i) be in compliance with all applicable laws, regulations and
ordinances, and (ii) shall have access to public streets which Lender shall
determine either is identical to or better than the access to the Mortgaged
Property which existed prior to the event which necessitated the Restoration.
 

	
  
 
  	
  
   (x)
  	
  
Borrower   shall have provided to Lender letters of estoppel from each tenant of the   Mortgaged Property confirming that such tenant’s Lease will remain in full   force and effect following the Restoration.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
       In all other cases, namely, in
        the event that Borrower does not elect to restore or repair the Mortgaged
        Property pursuant to the above provisions of this Section 8(f) or otherwise
        fails to meet the requirements of clauses (i) through (x) above, then,
        in any such event, Lender may, in its discretion and notwithstanding the
        adequacy of its security, either make such proceeds available to Borrower
        for the Restoration upon the conditions and in accordance with such procedures
        as Lender may require, or apply the proceeds toward reduction of the Indebtedness,
        in such order of application as Lender may determine.  Any application
        of insurance proceeds to the principal of the Note shall not extend or
        postpone the due dates of the principal installment payments due under
        the Note or change the amount of any such installments.

    
	
  
 
  	
  
 
  
	
  
   (g)
  	
  
Borrower   shall promptly reimburse Lender upon demand for all of Lender’s expenses   incurred in connection with the collection of the insurance proceeds,   including but not limited to reasonable attorneys’ fees, and all such   expenses, together with interest from the date of disbursement at an annual   rate equal to the Regular Rate under the Note (unless collection of interest   from Borrower at such rate would be contrary to applicable law, in which   event such amounts shall bear interest at the highest rate which may be   collected from Borrower under applicable law) shall be additional amounts   secured by this Mortgage.
  

9.        Use of Property.  Unless required by applicable law or unless Lender has otherwise agreed in writing, Borrower shall not allow changes in the use for which all or any part of the Mortgaged Property was intended at the time this Mortgage was executed.  Borrower shall not initiate or acquiesce in a change in the zoning classification of the Mortgaged Property without Lender’s prior written consent.

 10.       Preservation
  and Maintenance of the Mortgaged Property.  Borrower (a) shall keep
  the Improvements now or hereafter erected on the Land in safe and good repair
  and condition, ordinary depreciation excepted; (b) shall, upon damage to or
  destruction of the Mortgaged Property or any part thereof by fire or other casualty,
  restore, repair, replace or rebuild the Mortgaged Property that is damaged or
  destroyed to the condition it was in immediately prior to such damage or destruction,
  whether or not any insurance proceeds are available or sufficient for such purpose,
  unless Lender shall have elected to apply insurance proceeds to the reduction
  of the Indebtedness in accordance with Section 8(f) above; (c) shall constantly
  maintain the parking and landscaped areas of the Mortgaged Property; (d) shall
  not commit waste or permit impairment or deterioration of the Mortgaged Property;
  (e) shall not cause or permit any alteration of the design or structural character
  of any Improvement now or hereafter erected on the Land; and (f) shall not remove
  from the Land any of the fixtures and personal property included in the Mortgaged
  Property.

11.       Inspection.  Lender, or its agents, shall have the right at all reasonable times, to enter upon the Mortgaged Property for the purposes of inspecting the Mortgaged Property or any part thereof.

 12.       Protection
  of Lender’s Security.  Subject to the rights of Borrower under
  Section 7 hereof, if Borrower fails to perform any of the covenants and agreements
  contained in this Mortgage or if any action or proceeding is commenced which
  affects the Mortgaged Property or the interest of Lender therein, or the title
  thereto, then Lender, at Lender’s option, may perform such covenants and
  agreements, defend against and/or investigate such action or proceeding, and
  take such other action as Lender deems necessary to protect Lender’s interests. 
  Lender shall be the sole judge of the legality, validity and priority of any
  claim, lien, encumbrance, tax, assessment, charge and premium paid by it and
  of the amount necessary to be paid in satisfaction thereof.  Lender is
  hereby given the irrevocable power of attorney (which power is coupled with
  an interest and is irrevocable) to enter upon the Mortgaged Property as Borrower’s
  agent in Borrower’s name to perform any and all covenants and agreements
  to be performed by Borrower as herein provided.  Any amounts or expenses
  disbursed or incurred by Lender pursuant to this Section, with interest thereon,
  shall become additional Indebtedness of Borrower secured by this Mortgage. 
  Unless Borrower and Lender agree in writing to other terms of repayment, such
  amounts shall be immediately due and payable, and shall bear interest from the
  date of disbursement at the Regular Rate under the Note, unless collection from
  Borrower of interest at such rate would be contrary to applicable law, in which
  event such amounts shall bear interest at the highest rate which may be collected
  from Borrower under applicable law.  Lender shall, at its option, be subrogated
  to the lien of any mortgage or other lien discharged in whole or in part by
  the Indebtedness or by Lender under the provisions hereof, and any such subrogation
  rights shall be additional and cumulative security for this Mortgage. 
  Nothing contained in this Section shall require Lender to incur any expense
  or do any act hereunder, and Lender shall not be liable to Borrower for any
  damages or claims arising out of action taken, unless such action constitutes
  gross negligence or willful misconduct by Lender pursuant to this Section.

	
  
13.       Condemnation.
  
	
  
 
  	
  
 
  
	
  
 (a) 
  	
  
Borrower   hereby irrevocably assigns to Lender any award or payment which becomes   payable to Borrower on account of the Mortgaged Property by reason of any   taking of the Mortgaged Property, or any part thereof, whether directly or   indirectly or temporarily or permanently, in or by condemnation or other   eminent domain proceedings (hereinafter called “Taking”).  Forthwith upon receipt by Borrower of notice of the institution   of any proceeding or negotiations for a Taking, Borrower shall give notice   thereof to Lender.  Lender may appear   in any such proceedings and participate in any such negotiations and may be   represented by counsel.  Borrower,   notwithstanding that Lender may not be a party to any such proceeding, will   promptly give to Lender copies of all notices, pleadings, judgments,   determinations and other papers received by Borrower therein.  Borrower will not enter into any agreement
permitting or consenting to the taking of the Mortgaged Property, or any part   thereof, or providing for the conveyance thereof in lieu of condemnation,   with anyone authorized to acquire the same in condemnation or by eminent   domain unless Lender shall first have consented thereto in writing.  All Taking awards shall be adjusted   jointly by Borrower and Lender.  All   awards payable as a result of a Taking shall be paid to Lender, which may, at   its option, apply them, after first deducting Lender’s expenses incurred in   the collection thereof, to the payment of the Indebtedness, whether or not   due and in such order of application as Lender may determine, or to the   repair or restoration of the Mortgaged Property, in such manner as Lender may   determine.  Notwithstanding the   previous sentence, any award payable as a result of a Taking that Lender   reasonably believes will last no longer than six (6) months, after deducting   Lender’s expenses incurred in the
collection thereof, shall be applied by   Lender first to make improvements necessitated by such Taking and then in   accordance with the previous sentence.    Any application of Taking awards shall not extend or postpone the due   dates of any regularly scheduled payment or mandatory prepayment payable   under the Note or change the amount of any such payment or prepayment.
  

	
   (b)
 	
  
If the   Taking involves the taking of any Improvement now or hereafter located on the   Land, Borrower shall proceed, with reasonable diligence, to demolish and   remove any ruins and complete repair or restoration of the Mortgaged Property   as nearly as possible to its respective size, type and character immediately   prior to the Taking, whether or not the condemnation awards are available or   adequate to complete such repair or restoration.  Borrower shall promptly reimburse Lender upon demand for all of   Lender’s expenses (including reasonable attorney’s fees) incurred in the   collection of awards and their disbursement in accordance with this Section,   and all such expenses, together with interest from the date of disbursement   at the Regular Rate under the Note (unless collection of interest from   Borrower at such rate would be contrary to applicable law, in which event   such amounts shall bear interest at the highest rate which may
be collected   from Borrower under applicable law) shall be additional amounts secured by   this Mortgage.
  

14.       Environmental Matters.

	
  
 (a)
  	
  
The term “Hazardous Materials”   means petroleum and petroleum products, flammable explosives, radioactive   materials (excluding radioactive materials in smoke detectors),   polychlorinated biphenyls, lead, asbestos in any form that is or could become   friable, hazardous waste, toxic or hazardous substances or other related   materials whether in the form of a chemical, element, compound, solution,   mixture or otherwise, including, but not limited to, those materials defined   as “hazardous substances,” “extremely hazardous substances,” “hazardous   chemicals,” “hazardous materials,” “toxic substances,” “solid waste,” “toxic   chemicals,” “air pollutants,” “toxic pollutants,” “hazardous wastes,”   “extremely hazardous waste,” or “restricted hazardous waste” by Hazardous   Materials Law (as defined in the next sentence)
or regulated by Hazardous   Materials Law in any manner whatsoever.    The term “Hazardous   Materials Law” means all federal, state, and local laws,   ordinances and regulations and standards, rules, policies and other binding   governmental requirements and any court judgments applicable to Borrower or   to the Mortgaged Property relating to industrial hygiene or to environmental   or unsafe conditions or to human health including, but not limited to, those   relating to the generation, manufacture, storage, handling, transportation,   disposal, release, emission or discharge of Hazardous Materials, those in connection   with the construction, fuel supply, power generation and transmission, waste   disposal or any other operations or processes relating to the Mortgaged   Property, and those relating to the atmosphere, soil, surface and ground   water, wetlands, stream sediments and vegetation on, under, in or about the   Mortgaged Property.
  
	
   
  	
  
 
  
	
  
 (b)
  	
  
Borrower   covenants and agrees that Borrower shall not:
  

	
   
  	
  
 (i)
  	
  
cause or   permit the presence, use, generation, manufacture, production, processing,   installation, release, discharge, storage (including aboveground and   underground storage tanks for petroleum or petroleum products), treatment,   handling, or disposal of any Hazardous Materials (excluding the safe and   lawful use and storage of Hazardous Materials customarily used in the operation   and maintenance of comparable properties) on or under the Mortgaged Property,   or in any way affecting the Mortgaged Property or its value, or which may   form the basis for any present or future demand, claim or liability relating   to contamination, exposure, cleanup or other remediation of the Mortgaged   Property or;
  

	
   
  	
  (ii)
  	
  
cause or   permit the transportation to, from or across the Mortgaged Property of any   Hazardous Material (excluding the safe and lawful use and storage of   Hazardous Materials customarily used in the operation and maintenance of   comparable properties or for normal household purposes); or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  (iii) 
  	
  
cause or   exacerbate any occurrence or condition on the Mortgaged Property that is or   may be in violation of Hazardous Materials Law.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
The matters   described in (i), (ii) and (iii) above are referred to collectively herein as   “Prohibited Activities   or Conditions.”
  
	
  
 
  	
  
 
  	
  
 
  
	
   (c)
  	
  
Borrower   represents and warrants that it has not at any time caused or permitted any   Prohibited Activities or Conditions and, to the best of its knowledge, no   Prohibited Activities or Conditions exist or have existed on or under the   Mortgaged Property.  Borrower shall   take all appropriate steps (including but not limited to appropriate lease   provisions) to prevent its employees, agents, and contractors, and all   tenants and other occupants on the Mortgaged Property, from causing,   permitting or exacerbating any Prohibited Activities or Conditions.  Borrower shall not lease or allow the   sublease of all or any portion of the Mortgaged Property for use to any   tenant or subtenant that, in the ordinary course of its business, would   cause, permit or exacerbate any Prohibited Activities or Conditions, and all   leases and subleases shall provide that tenants and subtenants shall not   cause, permit or exacerbate any Prohibited Activities or
Conditions.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 (d) 
  	
       If Borrower has disclosed that
        Prohibited Activities or Conditions exist on the Mortgaged Property, Borrower
        shall comply in a timely manner with, and cause all employees, agents,
        and contractors of Borrower and any other persons present on the Mortgaged
        Property to so comply with, (1) any program of operations and maintenance
        (“O&M Program”) relating to the Mortgaged
        Property that is acceptable to Lender with respect to one or more Hazardous
        Materials and all other obligations set forth in any O&M Agreement,
        and (2) all Hazardous Materials Laws.  Any O&M Program shall
        be performed by qualified personnel.  All costs and expenses of the
        O&M Program shall be paid by Borrower, including without limitation
        Lender’s fees and costs incurred in connection with the monitoring
        and review of the O&M Program and Borrower’s performance thereunder. 
        If Borrower fails timely to commence or diligently continue and complete
        the O&M Program, then Lender may, at Lender’s option, declare
        all of the sums secured by the Mortgage to be immediately due and payable,
        and Lender may invoke any remedies permitted by Section 20 of this Mortgage.

    
	
   
  	
  
 
  	
  
 
  
	
  
 (e) 
  	
       Borrower represents that Borrower
        has not received, and has no knowledge of the issuance of, any claim,
        citation or notice of any pending or threatened suits, proceedings, orders,
        or governmental inquiries or opinions involving the Mortgaged Property
        that allege the violation of any Hazardous Materials Law (“Governmental
        Actions”).  Borrower covenants that it shall promptly
        notify Lender in writing of: (i) the occurrence of any Prohibited Activity
        or Condition on the Mortgaged Property; (ii) Borrower’s actual knowledge
        of the presence on or under any adjoining property of any Hazardous Materials
        which can reasonably be expected to have a material adverse impact on
        the Mortgaged Property or the value of the Mortgaged Property, discovery
        of any occurrence or condition on the Mortgaged Property or any adjoining
        real property that could cause any restrictions on the ownership, occupancy,
        transferability or use of the Mortgaged Property under Hazardous Materials
        Law.  Any such notice by Borrower shall not relieve Borrower of,
        or result in a waiver of any obligation of Borrower under this Section
        14.

    

	
  
 (f)
  	
  
Borrower   further covenants that Borrower shall cooperate with any governmental   inquiry, and shall comply with any governmental or judicial order which   arises from (i) any alleged Prohibited Activities or Conditions; (ii) any   Governmental Action; or (iii) any claim made or threatened by any third party   against Borrower, Lender, or the Mortgaged Property relating to loss or   injury resulting from any Hazardous Materials.
  
	
   
  	
  
 
  
	
  
 (g)
  	
  
Borrower   shall pay promptly the costs of any environmental audits, studies or   investigations (including but not limited to advice of legal counsel) and the   removal of any Hazardous Materials from the Mortgaged Property required by   Lender as a condition of its consent to any sale or transfer under section 16   of the Mortgage of all or any part of the Mortgaged Property or any transfer   occurring upon a foreclosure or a deed in lieu of foreclosure or any interest   therein, or required by Lender following a reasonable determination by Lender   that there may be Prohibited Activities or Conditions on or under the   Mortgaged Property.  Borrower   authorizes Lender and its employees, agents and contractors to enter onto the   Mortgaged Property for the purpose of conducting such environmental audits,   studies and investigations.  Any such   costs and expenses incurred by Lender (including but not limited to fees and   expenses of attorneys and
consultants, whether incurred in connection with   any judicial or administrative process or otherwise) which Borrower fails to   pay promptly shall become immediately due and payable and shall become   additional indebtedness secured by the Mortgage pursuant to section 12 of the   Mortgage.
  
	
  
 
  	
  
 
  
	
  (h) 
  	
       Borrower covenants that it shall
        hold harmless, defend and indemnify Lender and its officers, directors,
        trustees, employees, and agents from and against all proceedings (including
        but not limited to Government Actions), claims, damages, penalties, costs
        and expenses (including without limitation fees and expenses of attorneys
        and expert witnesses, investigatory fees, and cleanup and remediation
        expenses, whether or not incurred within the context of the judicial process),
        arising directly or indirectly from (i) any breach of any representation,
        warranty, or obligation of Borrower contained in this Section 14 or (ii)
        the presence or alleged presence of Hazardous Materials on or under the
        Mortgaged Property.

    
	
   
  	
  
 
  
	
  
 (i)
  	
       The representations, warranties,
        covenants, agreements, indemnities and undertakings of Borrower contained
        in this Section 14 shall be in addition to any and all other obligations
        and liabilities that Borrower may have to Lender under applicable law
        and shall survive the satisfaction or release of the Mortgage, any foreclosure
        of the Mortgage and/or any acquisition of title to the Mortgaged Property
        or any part thereof by Lender, or anyone claiming by, through or under
        Lender, by deed in lieu of foreclosure or otherwise, and also shall survive
        the repayment or any other satisfaction of the indebtedness evidenced
        by the Note.

    

15.       Leases.  Borrower shall comply with and observe Borrower’s obligations as landlord under all leases of the Mortgaged Property or any part thereof (“Lease” or “Leases”).

	
  
    (a)
  	
       Borrower covenants and agrees
        not to enter into any new Lease, or to enter into any modification of
        any existing Lease, for all or any part of the Mortgaged Property, without
        the specific, prior written consent of Lender, unless the following conditions
        are met:  (i) the Lease is for less than 15% of the rentable space
        in the Mortgaged Property; (ii) the proposed Lease is substantially consistent
        with a form of lease approved in advance by Lender; and (iii) all of the
        conditions set forth in this Section 15 have been met.  Any Lease
        that complies with (i), (ii), and (iii) above is referred to herein as
        a “Minor Lease.”  Any Lease that is not a
        Minor Lease is referred to herein as a “Major Lease.”

    

	
  (b)
  	
  
Borrower’s   entry into a Major Lease or the termination, assignment, sublease, renewal,   amendment, or material waiver of Borrower’s rights as landlord in connection   (each of the foregoing, a “Leasing Action”) with a Major Lease shall require   Lender’s prior written consent.  Every   Major Lease or instrument memorializing a Leasing Action shall be submitted   to Lender in final form, with all exhibits attached.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
(c) 
  	
  
Lender’s   prior written consent shall not be required in connection with the   termination, assignment, or sublease, renewal, amendment or waiver of   Borrower’s rights as landlord in connection with a Minor Lease.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
(d) 
  	
  
Lender shall   promptly respond to a complete request for consent to a Leasing Action.  Borrower shall furnish Landlord with   executed copies of all Leases, Lease guarantees, and other agreements   evidencing Leasing Actions.
  
	
   
  	
  
 
  	
  
 
  
	
  
(e) 
  	
  
Regardless   of whether a Lease is subject to Lender’s approval, all Leases entered into   from and after the date of this Instrument must satisfy all of the following   terms and conditions unless otherwise agreed in advance by Lender:
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
    (i)
  	
  
The Lease   must be an arm’s-length transaction to a party not affiliated with or related   to Borrower or any of its principals, and the Lease may not contain any   option, right of first refusal, or any other right to purchase any portion of   the fee interest in and to the Mortgaged Property
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(ii) 
  	
  
The Lease   must contain provisions that (A) obligate the tenant under the Lease to   attorn to any purchaser of the Mortgaged Property at a foreclosure sale or by   deed or other proceeding in lieu of foreclosure; (B) provide that neither   Lender nor any purchaser at a foreclosure sale or by deed or any proceeding   in lieu of foreclosure shall be responsible for any act, omission, or default   by any prior landlord (including Borrower), the return of any security   deposit, or the payment of any tenant allowance or other concession, be bound   by any rent paid more than one (1) month in advance, or be subject to any   offset, defense, or counterclaim against any prior landlord (including   Borrower); and (C) provide that the Lease is subject and subordinate to the   Mortgage and the Loan Documents and must obligate the tenant to subordinate   the Lease to any future mortgages of the Mortgaged Property (which obligation   to subordinate may, however, be
conditioned upon such future mortgagees   agreeing not to join such tenant in any foreclosure proceedings if tenant is   not in default under the terms of its Lease).
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  (iii)
  	
  
The rent   payable under the Lease shall not be less than the greater of: (i) fair   market rent for similar space in projects similar to the Mortgaged Property   in the county in which the Mortgaged Property is located, or (ii) such other   minimal amount as is agreed to by Borrower and Lender, and the Lease must   prohibit the tenant from prepaying rent more than one month in advance of its   due date.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(iv) 
  	
  
The Lease   may not permit the Tenant to self-insure in connection with any of Tenant’s   insurance obligations under the related Lease.
  

	
  
 
  	
  
 (v)
  	
  
All leasing   commissions due with respect to the Lease must be paid by Borrower full   within sixty days after the commencement of occupancy by the tenant.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(vi) 
  	
  
The Lease   may not contain any provisions that would materially impair the value of the   Mortgaged Property or Lender’s security therein.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(vii) 
  	
  
The Lease   must require the Tenant to be in compliance with the provisions of this   Instrument concerning Hazardous Materials.    The tenant must agree to indemnify Borrower and any subsequent owner   of the Mortgaged Property for any damages caused by a breach of tenant’s   obligations with respect to Hazardous Materials.
  

 16.       Sale,
  Transfer or Encumbrance.  If Borrower shall voluntarily, involuntarily
  or by operation of law agree to, cause, suffer or permit (a) any sale, transfer,
  lease, sublease or conveyance of any interest of Borrower, legal or equitable,
  in the Mortgaged Property (except for Leases in compliance with Section 15);
  (b) any sale, transfer or encumbrance of any of the equity interests in Borrower;
  or (c) any mortgage, pledge, encumbrance or lien to be outstanding against the
  Mortgaged Property or any portion thereof, or any security interest to exist
  therein, except as created by this Mortgage and the other documents which secure
  the Note, and except as listed in Exhibit B, without, in each instance, the
  prior written consent of Lender, Lender may, at its election, declare the Indebtedness
  to be immediately due and payable, without notice to Borrower (which notice
  Borrower hereby expressly waives), and upon such declaration the entire Indebtedness
  shall be immediately due and payable, anything hereinabove or in the Note to
  the contrary notwithstanding.

No transfer, conveyance, lease, sale or other disposition shall relieve Borrower from liability for its obligations hereunder or under the Note, whether or not the transferee assumes this Mortgage.  Lender may, without notice to Borrower, deal with any successor owner of all or any portion of the Mortgaged Property in the same manner as with Borrower, without in any way discharging the liability of Borrower hereunder or under the Note.

17.       Assignment of Rents.

	
  
 (a)
  	
  
Borrower   hereby assigns and transfers to Lender all of Borrower’s right, title and   interest in and to all leases, rents, issues, income or profits from the   Mortgaged Property and each and every part thereof, including all present and   future leases and rental agreements, for the purpose of securing the   Indebtedness.  Borrower agrees not to   default in performing its obligations under any lease or rental agreement   with respect to the Mortgaged Property or any part thereof.  This assignment may be enforced by Lender   at any time during the existence of an Event of Default hereunder, without   regard to the adequacy of the security hereof or the solvency of Borrower, by   any one or more of the following methods: (i) the appointment of a receiver;   (ii) Lender’s taking possession of the Mortgaged Property; (iii) the   collection by Lender of any moneys payable under leases, purchase agreements   or rental agreements directly from the
parties obligated to make such   payment; (iv) the obtaining of an injunction and (v) any other method permitted   by law.  This assignment shall   constitute a perfected, absolute and present assignment; provided, however,   that Borrower shall have the right to collect the rents and to retain, use   and enjoy the same unless and until an Event of Default occurs hereunder.  Receipt by Lender of rents, issues and   profits and deposits shall not constitute a waiver of any right that Lender   may enjoy under this Mortgage or under the laws of the State of Minnesota,   nor shall the receipt and application thereof cure any Event of Default   hereunder nor affect any foreclosure proceeding or any sale authorized by   this Mortgage and the laws of the State of Minnesota.  There shall be no merger of the leasehold   estates, created by the leases, with the fee estate of the Mortgaged Property   without the prior written consent of Lender.
  

	
  
 (b)
  	
       This assignment
        shall extend to and cover any and all extensions and renewals of existing
        and future leases and to any and all present and future rights against
        guarantors of any such obligations and to any and all rents, issues and
        profits collected under leases or other rentals.  This assignment
        is given to facilitate payment and performance of the Note, this Mortgage
        and any other agreements at any time securing the Indebtedness. 
        Lender shall not be obligated to perform or discharge any obligation,
        duty or liability under any lease or under or by reason of this assignment,
        and Borrower shall and does hereby agree to indemnify and to hold Lender
        harmless from any liability, loss or damage that it might incur under
        any lease or under or by reason of this assignment and from any claims
        and demands whatsoever that may be asserted against it by reason of any
        alleged obligations or undertakings on Lender’s part.  Unless
        otherwise specified by Lender in writing, all existing and future leases
        for the use or occupancy of all or any part of the Mortgaged Property
        shall be subordinate to the lien of this Mortgage.  Borrower hereby
        appoints Lender its attorney-in-fact, coupled with an interest, empowering
        Lender to subordinate any leases to this Mortgage.  In pursuance
        of this assignment, and not in lieu hereof, Borrower shall on demand give
        Lender separate specific assignments of rents and leases, covering some
        or all of the leases, the terms of such assignments being incorporated
        herein by reference.  Lender is hereby authorized to notify all lessees
        and tenants of the Mortgaged Property of the existence of any and all
        such assignments.  Borrower hereby authorizes and directs the lessees
        and tenants of the premises that, upon written notice from Lender, all
        payments required under said leases and rental agreements or in any way
        respecting the same, shall be made directly to Lender as they become due. 
        Borrower hereby relieves said purchasers, lessees and tenants from any
        liability to Borrower by reason of said payments being made to Lender. 
        With or without exercising the rights set forth in Section 20 hereof, Lender
        is authorized to give such written notice to tenants at any time during
        the existence of an Event of Default hereunder.

    
	
   
  	
  
 
  	
   
 
	
  
 (c)
  	
       All rents, profits,
        issues or income derived from the Mortgaged Property that are collected
        by Lender, its agent or a receiver pursuant to this Section 17 each month
        shall be applied as follows:

    
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
    (i)
  	
  
to payment   of all reasonable fees of the receiver approved by the court;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  (ii)
  	
  
to payment   of all tenant security deposits then owing to tenants under any of the leases   pursuant to the provisions of Minnesota Statutes §504B.178;
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
(iii) 
  	
  
to payment   of all prior or current real estate taxes and special assessments with   respect to the Mortgaged Property, or if the Mortgage requires periodic   escrow payments for such taxes and assessments, to the escrow payments then   due;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(iv) 
  	
  
to payment   of all premiums then due for the insurance required by the provisions of the   Mortgage, or if the Mortgage requires periodic escrow payments for such   premiums, to the escrow payments then due;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(v) 
  	
  
to payment   of expenses incurred for normal maintenance of the Mortgaged Property;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(vi) 
  	
  
if received   prior to any foreclosure sale of the Mortgaged Property, to Lender for   payment of the Indebtedness, but no such payment made after acceleration of   the Indebtedness shall affect such acceleration;
  

	
  
 
  	
  (vii)
  	
  
if received   during or with respect to the period of redemption after a foreclosure sale   of the Mortgaged Property:
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
(A)        if the   purchaser at the foreclosure sale is not Lender, first to Lender to the   extent of any deficiency of the sale proceeds to repay the Indebtedness, second to the purchaser as a credit to the redemption price, but if the   Mortgaged Property is not redeemed, then to the purchaser of the Mortgaged   Property;
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
 
  	
  
(B)       if the   purchaser at the foreclosure sale is Lender, to Lender to the extent of any   deficiency of the sale proceeds to repay the Indebtedness and the balance to   be retained by Lender as a credit to the redemption price, but if the   Mortgaged Property is not redeemed, then to Lender, whether or not any such   deficiency exists.
  

 The rights and powers of Lender under
  this Section 17 and the application of rents, profits, issues or income under
  this Section 17(c) shall continue until expiration of the redemption period from
  any foreclosure sale, whether or not any deficiency remains after a foreclosure
  sale.

18.       Automatic Stay.  Without the necessity of an evidentiary hearing and without the necessity or requirement that Lender establish or prove the value of the Property, or the lack of adequate protection of Lender’s interest in the Property, Lender shall be entitled to the immediate termination of the automatic stay of 11 U.S.C. §362 in order to permit Lender to exercise all of its rights and remedies in respect of the Mortgage Property, the existence of this provision constituting sufficient “cause” for purposes of 11 U.S.C. §362(d)(1).  Borrower covenants that it shall not directly or indirectly oppose or otherwise defend against an application for the termination of the automatic stay by Lender.  Any attorney’s fees and other expenses incurred by Lender in connection with Borrower’s bankruptcy or any of the other aforesaid events shall be additional
indebtedness of Borrower secured by this Mortgage pursuant to section 12 hereof.

19.       Events of Default.  Each of the following occurrences shall constitute an event of default hereunder (an “Event of Default”):

	
  
    (a) 
  	
  
Borrower   shall fail to duly and punctually pay any installment of interest or   principal and interest payable under the Note [and such failure shall   continue unremedied for ten (10) calendar days].
  
	
  
 
  	
  
 
  
	
  
(b)  
  	
       Borrower shall fail duly to perform
        or observe any of the covenants or agreements contained in this Mortgage
        (other than a covenant or agreement or default which is elsewhere in this
        Section 18 specifically dealt with) and such failure shall continue unremedied
        for 30 calendar days following written notice from Lender.

    
	
  
 
  	
  
 
  
	
  
(c)  
  	
  
Borrower   shall fail duly to perform or observe any of the covenants or agreements   contained in any other Loan Document.
  
	
  
 
  	
  
 
  
	
  
(d)  
  	
       Borrower shall fail to duly and
        punctually pay when and as due any payment for taxes and assessments required
        by Section 2 to be paid or shall fail to provide the insurance coverage
        required by Section 8.

    
	
   
  	
  
 
  
	
  
(e)  
  	
  
Any   representation or warranty made by Borrower in this Mortgage or any other   Loan Document shall be untrue in any material respect when made.
  

	
  
    (f) 
  	
       Borrower shall default in the
        performance of or breach its agreement contained in Section 15 hereof.

    
	
  
 
  	
  
 
  
	
  
    (g) 
  	
  
Borrower   shall make an assignment for the benefit of its creditors, or Borrower shall   generally not be paying its debts as they become due, or a petition shall be   filed by or against Borrower under the United States Bankruptcy Code, or   Borrower shall seek or consent to or acquiesce in the appointment of any   trustee, receiver or liquidator of a material part of its properties or of   the Mortgaged Property or shall not, within 60 days after the appointment   (without its consent or acquiescence) of a trustee, receiver or liquidator of   any material part of its properties or of the Mortgaged Property, have such   appointment vacated.
  
	
  
 
  	
  
 
  
	
  (h)  
  	
  
A judgment,   writ or warrant of attachment or execution, or similar process shall be   entered and become a lien on, issued or levied against, the Mortgaged   Property or any part thereof and shall not be released, vacated or fully   bonded within 60 days after its entry, issue or levy.
  
	
  
 
  	
  
 
  
	
  
(i)  
  	
  
Borrower   shall be dissolved or terminated.
  
	
  
 
  	
  
 
  
	
  
(j)  
  	
  
In Lender’s   opinion a materially adverse change shall occur in the credit standing or   financial condition of Borrower and/or Lender reasonably believes that it is   insecure.
  
	
  
 
  	
  
 
  
	
  
(k)  
  	
  
Borrower,   any of its affiliates or any Guarantor shall be in default under any other   agreement with Lender (whether in connection with the Loan or otherwise) and   any required notice has been given and any time in which to cure the default   has elapsed.
  
	
  
 
  	
  
 
  
	
  (l)  
  	
  
An event of   default, however defined, shall occur under any other mortgage, assignment or   other security document constituting a lien on the Mortgaged Property or any   part thereof.
  

20.       Acceleration, Foreclosure; Remedies.  Upon the occurrence of any Event of Default and at any time thereafter while such Event of Default exists, Lender may, at its option, exercise one or more of the following rights and remedies (and any other rights and remedies available to it):

	
  
 (a) 
  	
  
Lender may,   by written notice to Borrower, declare immediately due and payable all   unmatured Indebtedness, and the same shall thereupon be immediately due and   payable, without further notice or demand.
  
	
  
 
  	
  
 
  
	
  
(b)  
  	
  
Lender may   (and is hereby authorized and empowered to) foreclose this Mortgage by action   or advertisement, pursuant to the statutes of the State of Minnesota in such   case made and provided, power being expressly granted to sell the Mortgaged   Property at public auction and convey the same to the purchaser in fee simple   and, out of the proceeds arising from such sale, to pay all Indebtedness   secured hereby with interest, and all legal costs and charges of such   foreclosure and the maximum attorneys’ fees permitted by law, all of which   costs, charges and fees Borrower agrees to pay.
  
	
   
  	
  
 
  
	
  
(c)  
  	
  
Lender may   seek the appointment of a receiver to take charge of the Mortgaged Property,   to collect the rents, issues, income and profits therefor, to care for and   repair the Mortgaged Property, to improve the same when necessary or   desirable, to lease and rent the Mortgaged Property or portions thereof   (including leases extending beyond the term of the receivership), and   otherwise to use the Mortgaged Property and to exercise such other duties as   may be fixed by the court.  Borrower   specifically agrees that the court may appoint a receiver without regard to   the adequacy of Lender’s security or the solvency of Borrower or any   guarantor of any of the Indebtedness and without regard to any other matters   normally taken into account by courts in
  

	
   
  	
  
the   discretionary appointment of receivers, it being the intention of Borrower   hereby to authorize the appointment of a receiver whenever an Event of   Default has occurred and Lender has requested the appointment of a receiver.  Borrower hereby agrees and consents to the   appointment of the particular person or firm (including an officer or   employee of Lender) designated by Lender as receiver and hereby waives its   rights to suggest or nominate any person or firm as receiver in opposition to   that designated by Lender.
  
	
  
 
  	
  
 
  
	
  (d)  
  	
  
Lender may   in the name, place and stead of Borrower and without becoming a mortgagee in   possession (i) enter upon, manage and operate the Mortgaged Property or   retain the services of one or more independent contractors to manage and   operate all or any part of the Mortgaged Property; (ii) make, enforce, modify   and accept surrender of any leases; (iii) obtain or evict tenants, collect,   sue for, fix or modify any rents and enforce all rights of Borrower under any   leases and (iv) perform any and all other acts that may be necessary or   proper to protect the security of this Mortgage.
  

21.       Estoppel Certificate.  Borrower shall, at any time and from time to time, upon not less than 15 calendar days prior notice by Lender, execute, acknowledge and deliver, without charge, to Lender or to any person designated by Lender, a statement in writing certifying that this Mortgage is unmodified (or if there has been modifications, identifying the same by the date thereof and specifying the nature thereof), the aggregate principal amount then secured hereby and the aggregate unpaid balance of the Note, that Borrower has not received any notice of default or notice of acceleration or foreclosure of this Mortgage (or, if Borrower has received such notice, that it has been revoked, if such be the case), that to the knowledge of Borrower, no Event of Default exists hereunder (or, if any Event of Default exists, specifying the same and stating that the same has been cured, if such be the case),
that Borrower to its knowledge has no claim or offset against Lender (or, if Borrower has any such claim, specifying the same), and the dates to which the interest and the other sums and charges payable by Borrower pursuant to the Note have been paid.

 22.       Forbearance
  Not a Waiver; Rights and Remedies Cumulative.  No delay by Lender in
  exercising any right or remedy provided herein or otherwise afforded by law
  or equity shall be deemed a waiver of or preclude the exercise of such right
  or remedy, and no waiver by Lender of any particular provision of this Mortgage
  shall be deemed effective unless in writing signed by Lender.  All such
  rights and remedies provided for herein or which Lender or any other holders
  of the Note may otherwise have, at law or in equity, shall be distinct, separate
  and cumulative and may be exercised concurrently, independently or successively
  in any order whatsoever, and as often as the occasion therefor arises. 
  Lender’s taking action pursuant to Section 12 or receiving proceeds, awards
  or damages pursuant to Sections 8 or 13 shall not impair any right or remedy
  available to Lender under Section 20 hereof.  Lender’s exercise of
  any of the rights or remedies under this Mortgage and the application of the
  rents, profits and income pursuant to Section 17, shall not cure or waive any
  Event of Default (or notice of default) under this Mortgage or invalidate any
  act done pursuant to such notice.  Acceleration of maturity of the Note,
  once claimed hereunder by Lender, may, at the option of Lender, be rescinded
  by written acknowledgment to that effect by Lender, but the tender and acceptance
  of partial payments alone shall not in any way affect or rescind such acceleration
  of maturity of the Note.  The rights and powers of Lender under this Mortgage
  shall continue until expiration of the redemption period from any foreclosure
  sale, whether or not any deficiency remains after a foreclosure sale.

23.       Future Advances.  

	
  (a) 
  	
  
To the   extent that this Mortgage secures future advances, the amount of such   advances is not currently known.  The   acceptance of this Mortgage by Lender confirms that Lender is aware of the   provisions of Minnesota Statutes §287.05, subd. 5, and intends to comply with   the requirements contained therein.
  
	
  
 
  	
  
 
  
	
  
(b)  
  	
  
The maximum   principal amount of indebtedness secured by this Mortgage at any one time,   excluding advances made by Lender in protection of the Mortgaged Property or   the lien of this Mortgage shall be $7,104,000.
  
	
  
 
  	
  
 
  
	
  
(c)  
  	
  
The   representations contained in this section are made solely for the benefit of   county recording authorities in determining the mortgage registry tax payable   as a prerequisite to the recording of this Mortgage.  Borrower acknowledges that such   representations do not constitute or imply an agreement by Lender to make any   future advances to the Borrower.
  

 24.       Successors
  and Assigns Bound; Number; Gender; Agents; Captions; Amendments.  The
  covenants and agreements herein contained shall bind, and the rights hereunder
  shall inure to, the respective successors and assigns of Lender and Borrower;
  provided, however, that this paragraph shall not limit the effect of Section 14.  Whenever used herein, except as otherwise required by the context,
  the singular shall include the plural, and the use of any gender shall apply
  to all genders.  The captions and headings of the Sections of this Mortgage
  are for convenience only and are not to be used to interpret or define the provisions
  hereof.  No amendment of this Mortgage shall be effective unless in a writing
  executed by Borrower and Lender.

25.       Credit Union Membership. Innovex, Inc., a Minnesota corporation, is required to become a member of the US Federal Credit Union on or before December 31, 2004.

26.       Notice.  Any notice from Lender to Borrower under this Mortgage shall be deemed to have been given by Lender and received by Borrower three (3) calendar days after being mailed by certified mail to Borrower at the following address:

          Innovex, Inc., a Minnesota corporation
           5540 Pioneer Creek Drive
           Maple Plain, Minnesota 55359-9003
           Attention:  Douglas W. Keller

or at such other address as Borrower may designate in writing to Lender.

27.       Governing Law; Severability.  This Mortgage shall be governed by the law of the State of Minnesota without regard to choice of law rules.  If any provision or clause of this Mortgage conflicts with applicable law, such conflict shall not affect other provisions of this Mortgage which can be given effect without the conflicting provisions and to this end the provisions of this Mortgage are declared to be severable.  It is the intention of the parties hereto, however, that Section 17 hereof shall confer upon Lender the fullest rights, remedies and benefits available pursuant to Minnesota Statutes §§559.17 and 576.01 subd. 2.

28.       Waivers of Marshalling.  Borrower, any party who consents to this Mortgage and any party who now or hereafter acquires a lien on the Mortgaged Property and who has actual or constructive notice of this Mortgage hereby waive any and all rights to require the marshalling of assets in connection with the exercise of any of the remedies permitted by applicable law or provided herein.

29.       Further Assurances; Updated Appraisals.  At any time from time to time until payment in full of the Indebtedness, Borrower shall, at the request of Lender, promptly execute and deliver to Lender such additional instruments as may be reasonably required further to evidence the lien of this Mortgage and further to protect the security interest of Lender with respect to the Mortgaged Property, including but not limited to additional security agreements, financing statements and continuation statements.  Any expenses incurred by Lender in connection with the preparation and recording of any such instruments, including but not limited to reasonable attorneys fees, shall become additional Indebtedness of Borrower secured by this Mortgage.  Unless Borrower and Lender agree in writing to other terms of repayment, such amounts shall be immediately due and payable, and shall bear interest from
the date of disbursement at the Regular Rate under the Note, unless collecting from Borrower of interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate which may be collected from Borrower under applicable law.

30.       Financial Statements and Other Information; Books and Records.  Borrower will prepare or cause to be prepared at its expense and deliver to Lender (in such number as may reasonably be requested):

	
  (a) 
  	
  
As soon as   practicable after the end of each fiscal year of Borrower, and in no event   later than ninety (90) days thereafter, audited financial statements of   Borrower as at the end of such fiscal year consisting of the balance sheet of   Borrower and the related statements of income and changes in financial   position of Borrower for the fiscal year then ended, setting forth in each   case in comparative form the figures for the previous fiscal year, all in   reasonable detail and prepared by a certified public accountant selected by   Borrower.  Upon request of Lender,   Borrower will also deliver detailed financial information on any real estate-related   asset shown on its balance sheet.
  
	
  
 
  	
  
 
  
	
  
(b)  
  	
  
As soon as   practicable after the end of each relevant fiscal quarter of Borrower,   unaudited operating statements for the Mortgaged Property and a rent roll and   rents receivable aging analysis identifying each tenant and the monthly rent   paid by such tenant.  Upon request of   Lender, Borrower should also deliver copies of all leases of space then in   force with respect to any portion of the Mortgaged Property.
  
	
  
 
  	
  
 
  
	
  
(c)  
  	
  
As soon as   practicable and in no event later than ten (10) days after they are filed with   the United States Internal Revenue Service, the annual federal income tax   returns of Borrower.
  
	
  
 
  	
  
 
  
	
  (d)  
  	
  
Immediately   upon becoming aware of the existence of any condition or event which   constitutes, or which after notice or lapse of time or both would constitute,   an Event of Default, written notice specifying the nature and period of   existence thereof and what action Borrower has taken, is taking or proposes   to take with respect thereto.
  

 The items specified in Sections 30(a) and
  30(b) shall be certified as accurate and complete by the Vice President, Finance,
  of the Borrower.  Borrower shall keep and maintain at all times at Borrower’s
  address set forth herein or at such other place as Lender may approve in writing,
  complete and accurate books of accounts and records in sufficient detail to
  reflect correctly the results of the operation of the Mortgaged Property and
  copies of all written contracts, leases and other instruments shall be subject
  to examination and inspection by Lender or its representative during ordinary
  business hours.  If  Borrower fails to provide the financial statements
  specified above, Lender shall have the right to audit the relevant books and
  records at Borrower’s expense.

[SIGNATURE PAGE FOLLOWS]

          IN WITNESS WHEREOF, Borrower has caused this Mortgage to be duly executed as of the day and year first above written.

	
  
 
  	
  
INNOVEX, INC.,   a MINNESOTA CORPORATION

  
	
   
  	
  
 
  
	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Its:
  	
  
 
  
	
  
 
  	
  
 
  	
  

  

	
  STATE OF   MINNESOTA
  	
  }
  	
   
  
	
   
  	
  }
  	
  ss.
  
	
  COUNTY OF
  	
  }
  	
   
  

This instrument was acknowledged before me on _________, 20___ by _______________ Douglas W. Keller, as Vice President - Finance, of Innovex, Inc., a Minnesota corporation.  

	
  
 
  	
  

  
	
  
(Seal, if   any)
  	
  
(Signature   of notarial officer)
  
	
  
 
  	
  
 
  
	
  
 
  	
  
 
  
	
  
 
  	
  

  
	
  
 
  	
  
Title (and   Rank)
  
	
  
 
  	
  
My   commission expires:_____________________
  

	
  
This   instrument was drafted by:
  	
  
 
  	
  
Please send   tax statements to:
  
	
  
 
  	
  
 
  	
  
 
  
	
  
US Federal   Credit Union
  	
  
 
  	
  
Innovex,   Inc.
  
	
  
1400   Riverwood Drive
  	
  
 
  	
  
5540 Pioneer   Creek Drive
  
	
  
Burnsville,   MN 55337
  	
  
 
  	
  
Maple Plain,   MN  55359-9003
  

EXHIBIT A
 TO
 COMBINATION MORTGAGE, ASSIGNMENT OF RENTS,
 SECURITY AGREEMENT AND FIXTURE FINANCING STATEMENT

	
  
Borrower:
  	
  
Innovex,   Inc., a Minnesota corporation
  
	
  
 
  	
  
5540 Pioneer   Creek Drive
  
	
  
 
  	
  
Maple Plain,   Minnesota 55359
  
	
  
 
  	
  
 
  
	
  
Lender:
  	
  
US Federal   Credit Union
  
	
  
 
  	
  
1400   Riverwood Drive
  
	
  
 
  	
  
Burnsville,   MN 55337
  

          Parcel 1: The Land described in the referenced instrument is located in Hennepin County, Minnesota, and is legally described as follows:

Lot 1, Block 1, Maple Plain Industrial Park 4th Addition, Hennepin County, Minnesota.

          Parcel 2: The Land described in the referenced instrument is located in Meeker County, Minnesota, and is legally described as follows:

Lots 1, 2, 3, 4, 5 and 6, Block 2, Industrial Park, City of Litchfield, Meeker County, Minnesota.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]