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(b) PURCHASER'S ELECTION 'PO REBUILD. If Purchaser is not in default under this contract, or
<br />after curing any such default, and if the mortgagees in any prior mortgages and sellers in any
<br />prior contracts for deed do not require otherwise, Purchaser may elect to have that portion of such
<br />insurance proceeds necessary to repair, replace or restore the damaged Property (the repair work)
<br />deposited in escrow with a bank or title insurance company qualified to do business in the State of
<br />Minnesota, or such other party as may be mutually agreeable to Seller and Purchaser. The election
<br />may only be made by written notice to Seller within sixty days after the damage occurs. Also, the
<br />election will only be permitted if the plans and specifications and contracts for the repair work are
<br />approved by Seller, which approval Seller shall not unreasonably withhold or delay. If such a
<br />permitted election is made by Purchaser, Seller and Purchaser shall jointly deposit, when paid,
<br />such insurance proceeds into such escrow. If such insurance proceeds are insufficient for the
<br />repair work, Purchaser shall, before the commencement of the repair work, deposit into such
<br />escrow sufficient additional money to insure the full payment for the repair work. Even if the
<br />insurance proceeds are unavailable or are insuffficient to pay the cost of the repair work,
<br />Purchaser shall at all times be responsible to pay the full cost of the repair work. All escrowed
<br />funds shall be disbursed by the escrowee in accordance with generally accepted sound
<br />construction disbursement procedures. The costs incurred or to be incurred on account of such
<br />escrow shall be deposited by Purchaser into such escrow before the commencement of the repair
<br />work. Purchaser shall complete the repair work as soon as reasonably possible and in a good and
<br />workmanlike manner, and in any event the repair work shall be completed by Purchaser within
<br />one year after the damage occurs. If, following the completion of and payment for the repair work,
<br />there remain any undisbursed escrow funds, such funds shall be applied to payment of the
<br />amounts payable by Purchaser under this contract in accordance with paragraph 8 (a) above.
<br />9. INJURY OR DAMAGE OCCURRING ON THE PROPERTY.
<br />(a) LIABILITY. Seller shall be free from liability and claims for damages by reason of injuries
<br />occurring on or after the date of this contract to any person or persons or property while on or about
<br />the Property. Purchaser shall defend and indemnify Seller from all liability, loss, costs and
<br />obligations, including reasonable attorneys' fees, on account of or arising out of any such injuries.
<br />However, Purchaser shall have no liability or obligation to Seller for such injuries which are
<br />caused by the negligence or intentional wrongful acts or omissions of Seller.
<br />(b) LIABILITY INSURANCE. Purchaser shall, at Purchaser's own expense, procure and maintain
<br />liability insurance against claims for bodily injury, death and property damage occuring on or
<br />about the Property in amounts reasonably satisfactory to Seller and naming Seller as an
<br />additional insured.
<br />10, INSURANCE, GENERALLY. The insurance which Purchaser is required to procure and maintain
<br />pursuant to paragraphs 7 and 9 of this contract shall be issued by an insurance company or companies
<br />licensed to do business in the State of Minnesota and acceptable to Seller, The insurance shall be
<br />maintained by Purchaser at all times while any amount remains unpaid under this contract. The
<br />insurance policies shall provide for not less than ten days written notice to Seller before cancellation,
<br />non-renewal, termination or change in coverage, and Purchaser shall deliver to Seller a duplicate
<br />original or certificate of such insurance policy or policies.
<br />11. CONDEMNATION, If all or any part of the Property is taken in condemnation proceedings instituted
<br />under power of eminent domain or is conveyed in lieu thereof under threat of condemnation, the money
<br />paid pursuant to such condemnation or conveyance in lieu thereof shall be applied to payment of the
<br />amounts payable by Purchaser under this contract, even if such amounts are not then due to be paid.
<br />Such amounts shall be applied first to unpaid accrued interest and next to the installments to be paid
<br />as provided in this contract in the inverse order of their maturity. Such payment shall not postpone the
<br />due date of the installments to be paid pursuant to this contract or change the atnount of such
<br />installments. The balance, if any, shall be the property of Purchaser.
<br />12. WASTE, REPAIR AND LIENS, Purchaser shall not remove or demolish any buildings, im-
<br />provements or fixtures now or later located on or a part of the Property, nor shalt Purchaser commit or
<br />allow waste of the Property. Purchaser shall maintain the Property in good condition and repair.
<br />Purchaser shall not create or pertnit to accrue liens or adverse claims against the Property which
<br />constitute a lien or claim against Seller's interest in the Property. Purchaser shall pay to Seller all
<br />amounts, costs and expenses, including reasonable attorneys' fees, incurred by Seller to remove any
<br />such liens or adverse claims.
<br />13. DEED AND MORTGAGE REGISTRY TAXES. Seller shall, upon Purchaser's full performance of this
<br />contract, pay the deed tax due upon the recording or filing of the deed to be delivered by Seller to
<br />Purchaser. The mortgage registry tax due upon the recording or filing of this contract shall be paid by
<br />the party who records or files this contract; however, this provision shall not impair the right of Seller
<br />to collect from Purchaser the amount of such tax actually paid by Seller as provided in the applicable
<br />law governing default and service of notice of termination of this contract.
<br />14. NOTICE OF ASSIGNMENT. If either Seller or Purchaser assigns their interest in the Property, a copy
<br />of such assignment shall promptly be furnished to the non - assigning party.
<br />15. PROTECTION OP INTERESTS. If Purchaser fails to pay any sum of money required under the terms
<br />of this contract or fails to perform any of Purchaser's obligations as set forth in this contract. Seller
<br />may, at Seller's option, pay the same or cause the same to be performed, or both, and the amounts so
<br />paid by Seller and the cost of such performance shall be payable at once, with interest at the rate stated
<br />in paragraph 4 of this contract, as an additional amount due Seller under this contract.
<br />If there now exists, or if Seller hereafter creates, suffers or permits to accrue, any mortgage, con tract for
<br />deed, lien or encumbrance against the Property which is not herein expressly assumed by Purchaser,
<br />and provided Purchaser is not in default under this contract, Seller shall timely pay all amounts due
<br />thereon, and if Seller fails to do so, Purchaser may, at Purchaser's option, pay any such delinquent
<br />amounts and deduct the amounts paid from the installment(s) next coming due under this contract.
<br />16. DEFAULT. The time of performance by Purchaser of the terms of this contract is an essential part of
<br />this contract. Should Purchaser fail to timely perform any of the terms of this contract, Seller may, at
<br />Seller's option, elect to declare this contract cancelled and terminated by notice to Purchaser in
<br />accordance with applicable law. All right, title and interest acquired under this contract by Purchaser
<br />shall then cease and terminate, and all improvements made upon the Property and all payments made
<br />by Purchaser pursuant to this contract shall belong to Seller as liquidated damages for breach of this
<br />contract. Neither the extension of the time for payment of any sum of money to be paid hereunder nor
<br />any waiver by Seller of Seller's rights to declare this contract forfeited by reason of any breach shall in
<br />any manner affect Seller's right to cancel this contract because of defaults subsequently occurring, and
<br />no extension of time shall be valid unless agreed to in writing. After service of notice of default and
<br />failure to cure such default within the period allowed by law, Purchaser shall, upon demand, surrender
<br />possession of the Property to Seller, but Purchaser shall be entitled to possession of the Property until
<br />the expiration of such period.
<br />17. BINDING EFFECT. The terms of this contract shall run with the land and bind the parties hereto and
<br />their successors in interest.
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