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FNBO /Nova -Tech Deed of Trust DOCS/1660316.5 7 201605326 Trust, other than current non - delinquent real estate taxes and assessments and any such lien, encumbrance, or charge consented to in writing by Beneficiary. Trustor further agrees (a) to pay when due each obligation secured by or reducible to a lien, charge, or encumbrance that now does or later may encumber or appear to encumber all or part of the Property or any interest in it, and (b) to immediately discharge any lien on the Property to which Beneficiary has not consented in writing. Notwithstanding the foregoing provisions of this Section 3.06, Trustor may, at its expense, contest in good faith claims for mechanics' and materialmen's liens in accordance with Section 6.6 of the Credit Agreement. Section 3.07. Maintenance of Insurance; Damage Proceeds. Trustor, at its sole cost and expense, will maintain or cause to be maintained the insurance policies described in Section 6.4 of the Credit Agreement (the "Policies "). Trustor hereby absolutely and irrevocably assigns to Beneficiary, and authorizes the payor to pay to Beneficiary: (i) all awards, claim, and causes of action, arising out of any warranty affecting all or any part of the Property, or for damage or injury to or decrease in value of all or any part of the Property or any interest in it; (ii) all proceeds of any Policies payable because of loss sustained to all or any part of the Property; and (iii) all interest that may accrue on any of the foregoing. (a) Notice of Damage or Destruction; Adiusting Loss. If the Property or any part thereof shall be damaged or destroyed by fire or other casualty, Trustor will promptly give written notice thereof to the insurance carrier and Beneficiary, and will not adjust any damage or loss that exceeds $50,000 unless Beneficiary has joined in such adjustment. But if there has been no adjustment of any such damage or loss within four months from the date of occurrence thereof, and if an Event of Default has occurred and remain uncured at the end of such four -month period or at any time thereafter, Beneficiary may alone make proof of loss, adjust and compromise any claim under the Policies, and appear in and prosecute any action arising from such Policies. In connection therewith, Trustor does hereby irrevocably authorize, empower, and appoint Beneficiary as attorney -in -fact for Trustor (which appointment is coupled with an interest) to do any and all of the foregoing in the name and on behalf of Trustor. (b) Application of Insurance Proceeds. All sums in excess of $50,000 paid under any Policies relating to all or any portion of the Property (hereinafter collectively referred to as "Proceeds "), shall be paid to Beneficiary, which may, at its option (but subject to the provisions of this paragraph set forth below), apply them (after first deducting Beneficiary's expenses referred to in Section 3.07(c) below) to the payment of the Secured Obligations, whether or not due and in such order of application as Beneficiary may determine, or to the repair, replacement, rebuilding, or restoration of the Property, in such manner as Beneficiary may determine. Notwithstanding the foregoing provisions of this paragraph, Beneficiary shall make all Proceeds (after first deducting therefrom Beneficiary's expenses referred to in Section 3.07(c) below) available to Trustor to reimburse Trustor for its reasonable costs of restoration, repair, replacement, or rebuilding of the Improvements, in accordance with any procedures reasonably required by Beneficiary (and shall not be applied toward the payment of the Secured Obligations until after restoration and repair of the Improvements) provided each of the following conditions shall be met: (i) There shall at the time of the casualty and at all times thereafter have occurred no Event of Default or event which with notice, the passage of time, or both, could become an Event of Default;