5. HRSR 05-02-2011 - Laserfiche WebLink

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2. Construction of Improvements. For the purposes of this Agreement, the term ``Loan Property" means the real estate described in the Mortgage together with all improvements now located or hereafter placed thereon. Borrower agrees to improve as a part of the Loan Property a project ("Project") consisting generally of substantial renovations to and equipping of the building located at 19141 Freeport St NW, Elk River, Minnesota, in accordance with, plans and specifications which have been provided to and approved by City building department (the "Plans and Specifications") to be operated by the Borrower as Class I restaurant of approximately 220 seats. The improvements to and equipping of the Loan Property contemplated by the Plans and Specifications, as the same may be changed with the approval of Lender, are herein referred to as the "Improvements." Borrower covenants that when completed, the Improvements shall comply with all applicable restrictions, conditions, codes, ordinances, regulations and laws of the City of Elk River, Minnesota ("City") and all other governmental bodies having jurisdiction over the Loan Property, including, without limitation, the Americans with Disabilities Act and those related to environmental protection. Borrower shall commence construction of the Improvements not later than July 1, 2011. For purposes of this Agreement, the term "commence" means the making of visible improvements, including without limitation [demolition of interior walls, paving for parking, and subsurface excavation but excluding mere surface grading]: Borrower represents he would not construct the Improvements on the Loan Property but for the financial assistance being provided by the Lender hereunder, and more specifically, would not commence such construction by July 1, 2011 without the assistance provided under this Agreement and the Spending Plan. Borrower agrees to carry on continuously, diligently and with reasonable dispatch the construction of the Improvements to full and final completion. 3. Title Insurance. Commercial Partners Title, LLC ("Title"), is designated as the title insurer with respect to this Agreement. Title will insure Lender against loss or damage on account of mechanic's liens upon or unmarketability of the title to the Loan Property, and will insure that the Mortgage constitutes a second lien upon Borrower's interest in the Loan Property as contemplated by this Agreement, subject only to a mortgage made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable Borrower to construct the Improvements or any component thereof. Borrower agrees to promptly and fully observe and comply with the reasonable requirements of Title and Lender with respect to the title, the Mortgage, disbursements of funds and such other reasonable requirements as Title may make. 4. Documents to be Delivered. Borrower covenants and agrees to immediately cause the compliance with the following conditions: (a) Note. Deliver to Lender the Note. (b) Mort~a~e. Deliver to Lender the Mortgage, together with evidence that the Mortgage has been or will be duly filed for record. 385593v3 JSB EL185-12 -2-