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200106192 and marketable title to the Property subject to no lien, charge or encumbrance except the liens of Home Federal Savings & Loan Association and the Department of the Treasury for the Federal Estate Tax lien filed as Instrument No. 94- 105360; Trustor owns, or upon acquisition thereof, will own the Fixtures free and clear of liens and claims, except as permitted under the Credit Agreement and purchase money security interests and lease /purchase interests; and this Deed of Trust is and will remain a valid and enforceable lien on the Property subject only to the exceptions referred to above. Trustor has full power and lawful authority to grant, assign, transfer and mortgage its interest in the Property in the manner and form hereby done or intended. Trustor will preserve its interest in and title to the Property and will forever warrant and defend the same to Trustee and will forever warrant and defend the validity and priority of the lien hereof against the claims of all persons and parties whomsoever. Trustor shall promptly and completely observe, perform, and discharge as and when due each and every obligation, covenant and agreement affecting the Property whether the same is prior and superior or subject and subordinate hereto. 1.02 Further Assurances. Trustor shall, at its own cost and without expense to Trustee or Beneficiary, promptly execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, any and all such further conveyances, confirmations, instruments or further assurances and consents as Beneficiary may deem reasonably necessary or proper in order to effectuate, perfect, evidence or protect the liens, covenants and agreements created by or contained in this Deed of Trust and shall cause to be timely and properly filed, registered or recorded any existing documents or instruments of further assurance necessary to fully protect the lien of this Deed of Trust. 1.03 Insurance. Trustor will cause the Property to be insured against loss or damage by fire with all risk coverage and against any other risks or hazards which, in the reasonable opinion of Beneficiary, should be insured against to the amount of the full insurable value thereof on a replacement cost basis with a company or companies and in such form and with such endorsements as may be approved or reasonably required by Beneficiary. Subject to the right of the Trustor to use the proceeds to rebuild the Improvements prior to a default on the Obligations, loss under said insurance proceeds shall be payable to Beneficiary, and shall be applied in the same manner as provided in Section 1.04 hereof, and said insurance policies shall be endorsed with a standard mortgagee clause naming the Trustee and Beneficiary and may only be canceled or modified upon not less than thirty (30) days' prior written notice to Beneficiary. Trustor will also carry public liability insurance in such form, amounts and with such companies as Beneficiary may from time to time reasonably require, with Trustee and Beneficiary included thereon as a named insured under a standard mortgagee endorsement. 1.04 Condemnation or Casualty Damage. Trustor, upon obtaining knowledge of the institution of any proceedings for the condemnation of the Prop- erty or any material portion thereof or knowledge of any material casualty damage to the Property or material damage of any other kind, will promptly notify Benefi- ciary. Beneficiary may participate in any proceedings and join Trustor in adjusting any loss covered by insurance. Subject to the rights of the Trustor to use the proceeds to rebuild the Improvements prior to a default on the Obligations, all compensation, awards, proceeds, damages, claims, rights of action and payments to which Trustor may become entitled shall be paid over to Beneficiary. Beneficiary may, in its sole discretion, apply any of the amounts collected in connection with any condemnation proceeding: (i) upon any indebtedness secured hereby and in such order as Beneficiary may determine or (ii) to the reimbursement of Beneficiary for expenses incurred by it in the 383934.1 -3-