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DE (Con�tinu d) 2 0�. 2 0� 7�. � Page 3
<br />or to any land trust holding title to the Real Properry, or by any other method of conveyance of an interest fn the Real
<br />Property. However, this option shall not be exercised by Lender if such exercise is prohibited by federal law or by
<br />Nebraska law.
<br />TAXES AND LIENS. The fotlowing provisions relaUng to the taxes and liens on the Property are part of this Deed of
<br />Trust:
<br />Payment Trustor shall pay when due (and in all events prior to delinquency) all taxes, spedal taxes, assessments,
<br />charges (including water and sewer), fines and imposftions levied against or on account of the Properly, and shall
<br />pay when due all claims for work done on or for services rendered or material fumished to the Property. Trustor
<br />shall mafntain the Property free of all Ifens having priority over or equal to the interest of Lernier under this Deed of
<br />Trust, except for the lien of taxes and assassments not due, except for the Existing Indebtedness referred to
<br />below, and except as otherwise provided in this Deed of Trust.
<br />Right to Contest. Trustor may withhold payment of any tax, assessment, or claim in connectfon with a good faith
<br />dfspute over the oblfgaUon to pay, so long as Lender's interest in the Pro�erty fs not jeopardFaed. If`a lien a�ises or
<br />is flled .as a result of nonpayment, Trustor shaU witt�in. flfteen (15) days after the lien arises or, ft a lien is ftled,
<br />within flfteen (15) days �fter Trustor has notice of the flling, secure the discharge of the Ilen, or if requested by
<br />Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an
<br />amount sufficient to discharge the lien plus any costs and attomeys' fees, or other charg� that could accxue as a
<br />result of a foreclosure or sale under the lien. In any contest, Trustor shall defend itself and Lender and shall satisty
<br />any adverse judgment before enforcement against the Property. Trustor shall name Lender as an addidonal obligee
<br />under any surety bond fumished in the contest proceedings.
<br />Evidenc� of Payment. Trustor shall upon demand fumish to Lender satisfactory evidence of peyment of the taxes
<br />or assessments and shall authorize the appropriate govemmental ofticial to delNer to Lender at any time a written
<br />statemerrt of the taxes and a�ssmerrts against the Property.
<br />Notice of Constructlon. Trustor shall notify Lerttler at least flfteen (15) days before any work is commenced, any
<br />services are fumished, or any mate�ials are supplied to the Property, if any mechanic's lien, materfalmen's lien, or
<br />other lien could be asserted on acxount of the work, services, or materfals. Tn.istor witl upon request of Lender
<br />fumish to Lender advance assurances satisfactory to Lender that Trustor can and will pay the cost of such
<br />improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions reladng to insu�ing the Property are a part of this Deed of
<br />Trust.
<br />Maintenance of Insuranc�. Trustor shall procure and maintain policies of ftre insurance with standard extended
<br />coverage endorsements on a fair value basis for the full insurable value c�vering all Improvements on the Real
<br />Property in an amount sufficient to avoid applicatlon of any coinsurance clause, and with a standard mortgagee
<br />clause in favor of Lender, together with such other hazard and Ilability insurance as Lender may reasonably require.
<br />Policies shall be written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a
<br />company or companies reasonably acceptable to Lender. Trustor, upon request of Lender, will deliver to Lender
<br />from time to time the poflcies or certiflcates of insurance in form satlsfactory to Lender, including stipulatlons that
<br />coverages will not be cancelled or diminished without at least ten (10) days prior written notice to Lender. Each
<br />insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired
<br />in any way by any act, omission or default of Trustor or any other person. Should the Real Properly be located in
<br />an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area,
<br />Tnistor agrees to obtain and maintain Federal Flood Insurance, if available, for tha maximum amount of Trustor's
<br />credit Ifne and the full unpaid principal balance of any prior liens on the properly securing the loan, up to the
<br />maximum policy Ilmits set under the National Flood Insurance Program, or as otherwise required by Lender, and to
<br />maintain such insurance for the term of the loan.
<br />Application of Proceeds. Trustor shall prompUy notify Lender of any loss or damage to the Properly. Lender may
<br />make proof of loss if Trustor fa(Is to do so within flfteen (15) days of the casualty. Whether or not Lenders
<br />security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply
<br />the proceeds to the reduction of the Indebt�ness, payment of any lien affecting the Properly, or the restoration
<br />and repair of the Properly. If Lender elects to apply the procc�eds to restoration and repair, Trustor shall repair or
<br />reptace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br />repair or restoratfon if Trustor is not in default under this Deed of Trust. Any proceeds which have not been
<br />disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of
<br />the Properly shall be used flrst to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
<br />interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds
<br />any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as Trustors
<br />interests may appear.
<br />Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness described below is
<br />in effect, compliance with the (nsurance provisions contained in tha instrument evidencing such Existing
<br />Indebtedness shall constitute compliance with the insurance provisions under this Deed of Trust, to the extent
<br />compliance with the terms of this Deed of Trust would constitute a duplication of insurance requirement. If any
<br />proc�eds from the insurance become payable on Ioss, the provfsions in this Dead of Trust for division of proc•seds
<br />shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br />LENDER'S IXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security irrterests,
<br />encx�mbranc�es, and other claims, (B) to provide arry required insuranoe on the Properly, (C) to make repairs to the
<br />Property or to comply with any oblfgaUon to rrraintaln Existlng Indebtedness in good standing as required below, then
<br />L.erider may do so. If any actlon or proceeding is oommenc�d that would rt�aterially affect Lenders (nterests in the
<br />Property, then Lender on Trustor's behalf rr�y, but is not required to, take any acdon that Lender befleves to be
<br />appropdate to,.protect Lendet's interes�. AII expe� ir�curred or �id by Lender for suc� purposes will then bear
<br />interest at the rate charged under the Credit Agreement from the date incurred or paid by Lende� to tFie date of
<br />re�yrr�nt by Trustor. All such e�er�ses will beoome a part of the Indebtedness and, at Lender's option, will {A) be
<br />payable on demand; (B) be added to the balance of the Credit Agreement and be appordoned among and be payable
<br />with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the
<br />remaining term of the Credit Agreement; or (C) be treated as a balloon payment which will be due and peyable at the
<br />Credit AgreemenYs maturity. The Deed of Trust also will secure payment of these amounts. The �ights provided for in
<br />this paragraph shall be fn addiUon to any other �ights or any remedies to which Lender may be entltled on account of
<br />any default. Any such actlon by Lender shall not be construed as curing the default so as to bar Lender from any
<br />remedy that it otherwfse would have had.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed
<br />of Trust:
<br />Title. Trustor warrants that: (a) Trustor holds good and marketable title of record to the Property in fee simple,
<br />free and clear of all liens and encumbranc�s other than those set forth in the Real Properly descriptlon or in the
<br />F�cistlng Indebtedness section below or in any title insurance policy, tiUe report, or flnal title opinion issued in favor
<br />of, and accepted by, Lender in connection with this Deed of Trust, and (b) Trustor has the full right, power, and
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