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11. LENDER'S RIGHT TO COMMENCE OR DEFEN D P6�GA„A GTION�S.hGra�n�oar s�hanitsmmed�ietals tts�atto ey-inef ct t corrxnence,intervene n,and
<br /> threatened action,suit,or other proceeding affecting Pe Y
<br /> Graentor for any action uerror�,rmistake,�or�ssioneor delay pert a ing t�'t e actions descn'bed in thi�snparagraph ort a�ny damages resulting he efro m�Nothing
<br /> contai�ed herein will prevent Lender from taldng the actions described in this paragraph in its own name.
<br /> 12 GNc�uEms a�nces. G�antor shall ismredately provide Lendew rt�wrtten noticerfo and demnify and hold Lendertand its�shareolde stdir ctor�srtoffice sr
<br /> anY s liabilities includin attomeys' fees and legal expenses), causes of action, actions, suits and
<br /> e►r�ployees and agents harmless from all claims, dama9e , (� 9
<br /> other legal proceedin9s(c�mu�atively"Claims")penaining to the Property(including,but not limited to,those involving Hazardous Materials). Grantor,upon
<br /> the request of Lender,shall hire legal counsel to defend Lender from such Claitssowndl�y tcou sel to defend Isuch Clams ataGrant es cosst.� Grantor's
<br /> connection therewhh. In the altemative, Lender shall be entitied to ernploy ' �
<br /> obligation to indemnify Lender under this paragraph shall survive the termination,release or foreclosure of this Deed of Trust.
<br /> 13. TAXES AND ASSESSM6eTS•uest of Lende�Gralnt�shall deposit wni hnLe der�neachPmon�th one-twelfth (1l�12j ofeh�e�elstPmat deannualrinsurance
<br /> uf payment of same. Upon eq
<br /> premium,taxes and assessments pertaining to the Property. So long as there is no default, these amounts shall be applied to the payment of taxes,
<br /> asseasnsme�t Sa�a��nst the aObligations.�Any f nds applied�may,at nL.ender'saopiionnbe applied neeverse order of the duet�date thereof?he funds so heid to
<br /> PaY Y
<br /> 14. INSPECTION OF PROPERTY,BOOKS,RECORDS AND REPORTS. Grarrtor shall allow Lender or its agents to exarrrne and inspect the Property
<br /> and examine,inspect and make copes of Grantor's books and records pertaining to the Property from time to time. Grantor shall provide any assistance �
<br /> r�equired bn L�ei der f�or,tSheGr��hall ote the exstence of Lender' ben h�al nte e t nrits�books�and eco ds�perta nanlg tog he P o�perty. Additonally, �
<br /> Gra�ntor shall report,in a form satisfactory to Lender,such infomiation as Lender may request regarding Grantor's financial condition or the Property. The
<br /> infomiation shall be for such periods,shall reflect Grantor s records at such time,and shall be rendered wrth such frequency as Lender may designate. All '� .
<br /> information fumished by Grantor to Lender shall be true,accurate and complete in all respects,and signed by Grantor if Lender requests.
<br /> 15. ESTOPPEL CERTIFICATES. Within ten(10)days after any request by Lender,Grantor shall deliver to Lender,or any intended transferee of Lender's Ip
<br /> rights with respecl to the Obligations, a signed and aclmowledged statement specifying(a)the outstanding balance on the Obligations;and(b)whether
<br /> Grantor possesses any claims,defenses,set-offs or counterclaims with respect to ihe Obligations and,if so,the nature of such claims,defenses,set-offs or
<br /> cournerclaims. Grantor will be conclusively bound by any represerrtation that Lender may rr�ake to the intended transferee with respect to these matters in �
<br /> the everd that Grantor fails to provide the requested statement in a timely manner.
<br /> 16. DEFAULT. Grantor shall be in default under this Deed of Trust and the Trustee's power shall become operative in the event that Grantor,Borrower or
<br /> any guarantor of the Obligations:
<br /> (a) fails to pay any Obligation to Lender when due;
<br /> (b) fails to perform any Obli9ation or breaches any warranty or covenant to Lender contained in this Deed of Trust or any other present or future
<br /> agreement;
<br /> (c) destroys,loses or damages the Property in any material respect or subjects the Property to seizure,confiscation,or condemnation;
<br /> (d) seeks to revoke,terminate or othervvise limit its liability under any guaranty to Lender;
<br /> (e) dies,becomes legally incompetent,is dissolved or terminated,becomes insolvent,makes an assignment for the benefit of creditors,fails to pay
<br /> debis as they become due,files a petition under the federal bankruptcy laws,has an involuntary petition in bankruptcy filed in which Grantor,Borrower
<br /> or any guarantor is named,or has property taken under any writ or process of court;
<br /> (f) allows goods to be used,transported or stored on the Property,the possession,transportation,or use of which,is illegal;
<br /> (g) allows any party other than Grantor or Borrower to assume or undertake any Obligation without the written consent of Lender;or
<br /> (h) causes Lender to deem itself insecure due to a significant decline in the value of the Property;or if Lender,in good faith,for any reason,believes
<br /> that the prospect of payment or perfomiance is impaired.
<br /> 17. RIGHTS OF LENDER ON DEFAULT. If there is a default under this Deed of Trust,Lender shall be entitled to exercise one or more of the following
<br /> remedies without notice or demand(except as required by law):
<br /> (a) to declare the Obligations irmiediately due and payable in full;
<br /> (b) to collect the outstanding Obligations with or without resorting to judicial process;
<br /> (c) to require Grantor to deliver and make available to Lender any personal property or Chattels constituting the Property at a place reasonably
<br /> convenient to Grantor and Lender;
<br /> (d) to enter upon and take possession of the Property without applying for or obtaining the appointment of a receiver and, at Lender's option, to
<br /> appoint a receiver without bond, without first bringing suit on the Obligations and without otherwise meeting any statutory conditions regarding
<br /> receivers,it being intended that Lender shall have this contractual right to appoint a receiver;
<br /> (e) to employ a managing agent of the Property and let the same,either in Trustee's own name,in the name of Lender or in the name of Grantor,and
<br /> receive the rents,incomes,issues and profits of the Property and apply the same,after payment of all necessary charges and expenses,on account of
<br /> the Obligations;
<br /> (f) to pay any sums in any form or manner deemed expedient by Lender to protect the security of this Deed of Trust or to cure any default other ihan
<br /> payment of interest or principal on the Obligations;
<br /> (g) to foreclose this Deed of Trust judicially or nonjudicially and to direct the sale of the property through exercise of the power of sale as referenced in
<br /> paragraph 20 hereof in acccordance with applicable law;
<br /> (h) to set-off Grantor's Obligations against any amounts owed Grantor by Lender including, but not limited to, monies, instruments, and deposit
<br /> accounts maintained with Lender or any currently existing or future affiliate of Lender;and
<br /> (i)to exerase all other rights available to Lender under any other written agreement or applicable law.
<br /> Lender's rights are cumulative and may be exercised together, separately, and in any order. In the event that Lender institutes an action seeking the
<br /> recovery of any of the Property by way of a prejudgment remedy in an action against Grantor, Grantor waives the posting of any bond which might
<br /> otherwise be required. Lender or Lender's designee may purchase the Property ai any sale. Proceeds of any Trustee's sale hereunder shall be applied
<br /> first,to the costs and expenses of exerasing the power of sale and of the sale,including the payment of the Trustee's fees aclually incurred and not to
<br /> exceed the amount which may be provided for in this Deed of Trust,second,to payment of the Obligations secured hereby,third,to ihe payment of junior
<br /> trust deeds,mortgages,or other lienholders,and the balance,if any,to the person or persons legally entitled thereto. The property or any part thereof may
<br /> be sold in one parcel,or in such parcels,manner or order as Lender in its sole discretion may elect,and one or more exercises of the power herein granted
<br /> shall not extinguish or exhaust the power unless the entire property is sold or the obligations are paid in full.
<br /> 18. TRUSTEE'S EXERCISE OF POWER OF SALE ON DEFAULT: If Lender elects to sell Grantor's interest in the Property by exercise of the power of
<br /> sale herein contained,Lender shall notify Trustee in the manner then required by law.
<br /> Upon receipt of such notice of Lender and at the direction of Lender,Trustee shall cause to be recorded,published and delivered such notices of default
<br /> and notices of sale as may then be required by law and by this Deed of Trust. Trustee shall,only at the direction of Lender and without demand on Grantor,
<br /> after such time as may then be required by law and after recordation of such notice of default and after notice of sale having been given as required by law,
<br /> sell the Property at the time and place of sale fixed by it in such notice of sale,either as whole or in separate lots or parcels or items as Lender shall deem
<br /> expedieM,and in such order as it may determine,at public auction to the highest bidder for cash in lawful money of the Unfted States payable at the time of
<br /> sale, or as otherwise may then be required by law. Trustee shall deliver to such purchaser or purchasers ihereof its good and sufficient deed or deeds
<br /> conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be
<br /> condusive proof of the truthfulness thereof. Any person,induding,without limitation,Grantor,Trustee or Lender,may purchase at such sale. Trustee may
<br /> in the manner provided by law postpone sale of all or any portion of the Property.
<br /> 19. RE�UES he�o a�he addressrof such persontset forth herein a the�same�rne land nthe samearr�anne equi ed as though a paraee req est te reof
<br /> who party
<br /> had been filed by each such person.
<br /> Page 3�6
<br /> NF�OTC Rev.1297
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