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<br />contingent and whether arising by note, guaranty, overdraft or otherwise. The Note, this Deed of Trust and any and
<br />all other documents that secure the Note or otherwise executed in connection therewith, including without limitation
<br />guarantees, security agreements and assignments of leases and rents, shall be referred to herein as the "Loan
<br />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 and
<br />warrants that the lien created hereby is a first and prior lien on the Property and the execution and delivery of the
<br />Deed of Trust does not violate any contract or other obligation to which Trustor is subject.
<br />3. Taxes, Assessments. To pay before delinquent all taxes, special assessments and all other charges
<br />against the Property now or hereafter levied.
<br />4. Insurance. To keep the Property insured against damage by fire hazards included with the term
<br />"extended coverage" and such other hazards as Lender may require in amounts and with companies acceptable to
<br />Lender, naming Lender as an additional named insured with loss payable to the Lender. In case of loss under such
<br />policies, the Lender is authorized to adjust, collect and compromise all claims thereunder and shall have the option
<br />of applying all or part of the insurance proceeds (i) to any indebtedness secured hereby and in such order as Lender
<br />may determine, (ii) to the Trustor to be used for the repair or restoration of the Property , or (iii) for any other
<br />purpose or object satisfactory to Lender without affecting the lien of this Deed of Trust for the full amount secured
<br />hereby before such payment ever took place. Any application of proceeds to indebtedness shall not extend or
<br />postpone the due date of any payments under the 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 Lender may
<br />designate, sufficient sums to enable Lender to pay as they become due one or more of the following: (i) all taxes,
<br />assessments and other charges against the Property: (ii) the premiums on the property insurance required hereunder,
<br />and (iii) the premiums on any mortgage insurance required by Lender.
<br />6. Maintenance Repairs and Compliance with Laws. Trustor shall keep the Property in good condition
<br />and repair; shall promptly repair, or replace, any improvement which may be damaged or destroyed; shall not
<br />commit or permit any waste or deterioration of the Property; shall not remove, demolish or substantially alter any of
<br />the improvements on the Property; shall not commit, suffer or permit any act to be done in or upon the Property in
<br />violation of any law, ordinance or regulation; and shall promptly discharge at Trustor's cost and expense all liens,
<br />encumbrances and charges levied, imposed or assessed against the Property or any part thereof.
<br />7. Eminent Domain. Lender is hereby assigned all compensation, awards, damages and other payments or
<br />relief (hereinafter "Proceeds ") in connection with condemnation or other taking of the Property or part thereof, or
<br />for conveyance in lieu of condemnation. Lender shall be entitled at its option to commence, appear in and prosecute
<br />in its own name any action or proceedings, and shall also be entitled to make any compromise or settlement in
<br />connection with such taking or damage. In the event any portion of the Property is so taken or damaged, Lender
<br />shall have the option, it its sole and absolute discretion, to apply all such Proceeds, after deducting therefrom all
<br />costs and expenses incurred by it in 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 deductions, to the restoration of the
<br />Property upon such conditions as Lender may determine. Any application of Proceeds to indebtedness shall not
<br />extend or postpone the due date of any payments under the Note, or cure any default thereunder or hereunder. Any
<br />unapplied funds shall be paid to Trustor.
<br />8. Performance by Lender. Upon the occurrence of an Event of Default hereunder, or if any act is taken or
<br />legal proceeding commenced, which materially affects Lender's interest in the Property, Lender may in its own
<br />discretion, but without obligation to do so, and without notice to or demand upon Trustor and without releasing
<br />Trustor from any obligation, do any act which Trustor has agreed but fails to do and may also do any other act it
<br />deems necessary to protect the security hereof. Trustor shall, immediately upon demand therefor by Lender, pay to
<br />Lender all costs and expenses incurred and sums expended by Lender in connection with the exercise by Lender of
<br />the foregoing rights, together with interest thereon at the default rate provided in the Note, which shall be added to
<br />the indebtedness secured hereby. Lender shall not incur any liability because of anything it may do or omit to do
<br />hereunder.
<br />9. Hazardous 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 herein
<br />as "Environmental Laws "). Trustor shall keep the Property free from all substances deemed to be hazardous or
<br />toxic under any Environmental Laws (collectively referred to herein as "Hazardous Materials "). Trustor hereby
<br />warrants and represents to Lender that there are no Hazardous Materials on or under the Property. Trustor hereby
<br />agrees to indemnify and hold harmless Lender, its directors, officers, employees and agents, and any successors to
<br />Lender's interest, from and against any and all claims, damages, losses and liabilities arising in connection with the
<br />presence, use disposal or transport of any Hazardous Materials on, under, from or about the Property. THE
<br />FOREGOING WARRANTIES AND REPRESENTATIONS, AND TRUSTOR'S OBLIGATIONS PURSUANT TO
<br />THE FOREGOING INDEMNITY, SHALL SURVIVE RECONVEYANCE OF THIS DEED OF TRUST.
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