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200101710
<br />6. Eminent Domain. Lender is hereby assigned all compensation, awards, damages
<br />and other payments or relief (hereinafter "Proceeds ") in connection with
<br />condemnation or other taking of the Property or part thereof, or for conveyance in
<br />lieu of condemnation. Lender shall be entitled, at its option, to commence, appear
<br />in and prosecute in its own name any action or proceedings, and shall also be
<br />entitled to make any compromise or settlement in connection with such taking or
<br />damage. In the event any portion of the Property is so taken or damaged, Lender
<br />shall have the option, in its sole and absolute discretion, to apply all such
<br />Proceeds, after deducting therefrom all costs and expenses incurred by it in
<br />connection with such Proceeds, upon any indebtedness secured hereby and in
<br />such order as Lender may determine, or to apply all such Proceeds, after such
<br />deductions, may determine. Any application of Proceeds to indebtedness shall
<br />not extend or postpone the due date of any payments under the Note, or cure any
<br />default thereunder or hereunder.
<br />7. Performance by Lender. In the event of Borrower's failure to perform any of the
<br />covenants herein or make any payments required hereby, or if any act is taken or
<br />legal proceeding commenced which materially affects Lender's interest in the
<br />Property, Lender may in its own discretion, but without obligation to do so, and
<br />without notice to or demand upon Borrower, and without releasing Borrower from
<br />any obligation, do any act which the Borrower has agreed but failed to do and
<br />may also do any other act it deems necessary to protect the security hereof.
<br />Borrower shall, immediately upon demand therefore by Lender, pay the Lender
<br />all costs and expenses incurred and sums expended by Lender in connection with
<br />the exercise by lender of the foregoing rights, together with interest thereon at the
<br />rate provided in the Note, which shall be added to the indebtedness secured
<br />hereby. Lender shall not incur any liability because of anything it may do or omit
<br />to do hereinunder.
<br />8. Hazardous Materials. Borrower shall keep the Property in compliance with any
<br />and all federal, state and local laws, ordinances and regulations relating to
<br />industrial hygiene or to environmental conditions on, under or about the Property,
<br />including, but not limited to, soil and ground water conditions. Borrower shall
<br />not use, generate, manufacture, store or dispose of on, under or about the Property
<br />or transport to or from the Property any flammable explosives, radioactive
<br />materials, hazardous wastes, toxic substances or related materials, including,
<br />without limitation, any substances defined as or included in the definition of
<br />"hazardous substances ", "hazardous wastes ", "hazardous materials" or "toxic
<br />substances" under any applicable laws, ordinances or regulations (collectively
<br />referred to hereinafter as "Hazardous Materials "). Borrower hereby warrants and
<br />represents to Lender that there are no Hazardous Materials on or under the
<br />Property. Borrower hereby agrees to indemnify and hold harmless Lender, its
<br />directors, officers, employees and agents, and any successors to Lender's interest,
<br />from and against any and all claims, damages and liabilities arising in connection
<br />with the presence, use, storage, disposal or transport of any Hazardous Materials
<br />on, under, from or about the property, including, without limitation, (a) all
<br />damages directly or indirectly arising out of the use, generation, storage or
<br />disposal of Hazardous Materials by Borrower or any prior owner or operator of
<br />the Property, and (b) all costs of any required or necessary repair, cleanup or
<br />detoxification and the preparation of any closure or other required plans, whether
<br />such action is required or necessary prior to or following transfer of title to the
<br />Property, to the full extent that such action is attributable, directly or indirectly, to
<br />the presence or use, generation, storage, release, threatened release or disposal of
<br />Hazardous Materials by any person on the Property prior to transfer of title
<br />thereto by Lender. The foregoing warranties and representations, and Borrower's
<br />obligations pursuant to the foregoing indemnity, shall survive repayment of the
<br />Note and the reconveyance of this Deed of Trust.
<br />9. Assignment of Rents; Management of Property. As additional security hereunder,
<br />Borrower hereby assigns to Lender the rents, issues and profits of the Property,
<br />provided that Borrower shall, prior to acceleration under paragraph 11 hereof or
<br />abandonment of the Property, have the right to collect and retain such rents, issues
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