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201205617
<br />$ 600,000.00 . The Note, this Deed of Trust and any and all other documents that secure the Note or
<br />otherwise executed in connection therewith, including without limitation Guarantees, Security Agreements
<br />and Assignments of Leases and Rents, shall be referred to herein as the "Loan Instruments".
<br />Trustor covenants and agrees with Lender as follows:
<br />1. Payment of Indebtedness. All indebtedness secured hereby shall be paid when due.
<br />2. Title. Trustor is the owner of the Property, has the right and authority to convey the Property,
<br />and warrants that the lien created hereby is a fust and prior lien on the Property, except for liens and
<br />encumbrances set forth by Trustor in writing and delivered to Lender before execution of this Deed of Trust,
<br />and the execution and delivery of this Deed of Trust does not violate any contract or other obligation to
<br />which Trustor is subject.
<br />3. Taxes, Assessments. To pay before delinquency all taxes, special assessments and all other
<br />charges against the Property now or hereafter levied.
<br />4. Insurance. To keep the Property insured against damage by fire, hazards included within the
<br />term "extended coverage", and such other hazards as Lender may require, in amounts and with companies
<br />acceptable to Lender, naming Lender as an additional named insured, with loss payable to the Lender. In
<br />case of loss under such policies, the Lender is authorized to adjust, collect and compromise, all claims
<br />thereunder and shall have the option of applying all or part of the insurance proceeds (i) to any indebtedness
<br />secured hereby and in such order as Lender may determine, (ii) to the Trustor to be used for the repair or
<br />restoration of the Properly or (iii) for any other purpose or object satisfactory to Lender without affecting the
<br />lien of this Deed of Trust for the full amount secured hereby before such payment ever took place. Any
<br />application of proceeds to indebtedness shall not extend or postpone the due date of any payments under the
<br />Note, or cure any default thereunder or hereunder.
<br />5. Escrow. Upon written demand by Lender, Trustor shall pay to Lender, in such manner as
<br />Lender may designate, sufficient sums to enable Lender to pay as they become due one or more of the
<br />following: (i) all taxes, assessments and other charges against the Property, (ii) the premiums on the property
<br />insurance required hereunder, (iii) the premiums on any mortgage insurance, and (iv) flood insurance
<br />required by the Lender.
<br />6. Maintenance, Repairs and Compliance with Laws. Trustor shall keep the Property in good
<br />condition and repair, shall promptly repair, or replace any improvement which may be damaged or
<br />destroyed; shall not commit or permit any waste or deterioration of the Property; shall not remove, demolish
<br />or substantially alter any of the improvements on the Property; shall not commit, suffer or permit any act to
<br />be done in or upon the Property in violation of any law, ordinance, or regulation; and shall pay and promptly
<br />discharge at Trustor's cost and expense all liens, encumbrances and charges levied, imposed or assessed
<br />against the Property or any part thereof.
<br />7. Eminent Domain. Lender is hereby assigned all compensation, awards, damages and other
<br />payments or relief (hereinafter "Proceeds") in connection with condemnation or other taking of the Property
<br />or part thereof, or for conveyance in lieu of condemnation. Lender shall be entitled at its option to
<br />commence, appear in and prosecute in its own name any action or proceedings, and shall also be entitled to
<br />make any compromise or settlement in connection with such taking or damage. In the event any portion of
<br />the Property is so taken or damaged, Lender shall have the option, in its sole and absolute discretion, to apply
<br />all such Proceeds, after deducting therefrom all costs and expenses incurred by it in connection with such
<br />Proceeds, upon any indebtedness secured hereby and in such order as Lender may determine, or to apply all
<br />such Proceeds, after such deductions, to the restoration of the Property upon such conditions as Lender may
<br />determine. Any application of Proceeds to indebtedness shall not extend or postpone the due date of any
<br />payments under the Note, or cure any default thereunder or hereunder. Any unapplied funds shall be paid to
<br />Trustor.
<br />8. Performance by Lender. Upon the occurrence of an Event of Default hereunder, or if any act is
<br />taken or legal proceeding commenced which materially affects Lender's interest in the Property, Lender may
<br />in its own discretion, but without obligation to do so, and without notice to or demand upon Trustor and
<br />without releasing Trustor from any obligation, do any act which Trustor has agreed but fails to do and may
<br />also do any other act it deems necessary to protect the security hereof. Trustor shall, immediately upon
<br />demand therefor by Lender, pay to Lender all costs and expenses incurred and stuns expended by Lender in
<br />connection with the exercise by Lender of the foregoing rights, together with interest thereon at the default
<br />rate provided in the Note, which shall be added to the indebtedness secured hereby. Lender shall not incur
<br />any liability because of anything it may do or omit to do hereunder.
<br />9. IIazardous Materials. Trustor shall keep the Property in compliance with all applicable laws,
<br />ordinances and regulations relating to industrial hygiene or environmental protection (collectively referred to
<br />herein as "Environmental Laws"). Trustor shall keep the Property free from all substances deemed to be
<br />hazardous or toxic under any Environmental Laws (collectively referred to herein as "Hazardous Materials").
<br />Trustor hereby warrants and represents to Lender that there are no Hazardous Materials on or under the
<br />Property. Trustor hereby agrees to indemnify and hold harmless Lender, its directors, officers, employees
<br />and agents, and any successors to Lender's interest, from and against any and all claims, damages, losses and
<br />liabilities arising in connection with the presence, use, disposal or transport of any Hazardous Materials on,
<br />under, from or about the Property. THE FOREGOING WARRANTIES AND REPRESENTATIONS, AND
<br />TRUSTOR'S OBLIGATIONS PURSUANT TO THE FOREGOING INDEMNITY, SHALL SURVIVE
<br />RECONVEYANCE OF THIS DEED OF TRUST.
<br />10. Assignment of Rents. "Trustor hereby assigns to Lender the rents, issues and profits of the
<br />Property; provided that Trustor shall, until the occurrence of an Event of Default hereunder, have the right to
<br />collect and retain such rents, issues and profits as they become due and payable. Upon the occurrence of an
<br />Event of Default, Lender may, either in person or by agent, with or without bringing any action or
<br />proceeding, or by a receiver appointed by a court and without regard to the adequacy of its security, enter
<br />upon and take possession of the Property, or any part thereof, in its own name or in the name of the Trustee,
<br />and do any acts which it deems necessary or desirable to preserve the value, marketability or rentability of
<br />the Property or any part thereof or interest therein, increase the income therefrom or protect the security
<br />hereof and, with or without taking possession of the Property, sue for or otherwise collect the rents, issues
<br />and profits thereof, including those past due and unpaid, and apply the same, less costs and expenses of
<br />operation and collection including attorney's fees, upon any indebtedness secured hereby, all in such order as
<br />Lender may determine. Trustor, Trustee and Lender agree that a receiver can be appointed upon the request
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