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<br />agrees that after payment of the taxes each year that any deficiency will be promptly paid to
<br />Beneficiary. Beneficiary agrees to provide Truster with receipts showing that the real estate taxes
<br />have been paid in full and when due.
<br />3. INSURANCE AND RBPAIRS. Truster shall maintain fire and extended
<br />coverage insurance insuring the improvements and buildings constituting part of the Trust Estate for
<br />an amount no less than 80% of the replacement value of such improvements or the amount of the
<br />unpaid principal balance of the Note (co- insurance not exceeding 80% permitted). Such insurance
<br />policy shall contain a standard mortgage clause in favor of Beneficiary and shall not be cancelable,
<br />terminable or modifiable without ten (10) days prior written notice to Beneficiary. Trustor shall
<br />furnish Beneficiary a certificate of insurance coverage at Beneficiary's request, with a provision in
<br />such certificate that the insurer shall provide Beneficiary ten (10) days advance notice of any
<br />cancellation of the policy at any time for any reason, or of expiration of policy without renewal
<br />thereof. Trustor shall promptly repair, maintain, and replace the Trust Estate or any part thereof so
<br />that, except for ordinary wear and tear, the Trust Estate shall not deteriorate. In no event shall the
<br />Trustor commit waste on or to the Trust Estate.
<br />4. ENVIRONMENTAL COMPLIANCE. Trustor shall comply with all federal,
<br />state, and local environmental laws, ordinances, rules, requirements, regulations, and publications
<br />as now existing or hereafter existing, amended, supplemented, or supplanted relating to the
<br />preservation of the environment or the regulation or control of toxic or hazardous substances or
<br />materials. Trustor hereby warrants and represents to Beneficiary that there are no toxic or hazardous
<br />substances or materials on or under the Property. Trustor does hereby indemnify and hold
<br />Beneficiary harmless and any successors to Beneficiary's interest from and against any and all claims,
<br />damages, losses, and liabilities arising in connection with the presence, use, disposal, or transport
<br />of any substance which is the subject of any environmental law, regulation, or control of toxic or
<br />hazardous substances or materials on, under, from, or about the Property. This indemnity shall
<br />survive reconveyance of the Property secured by this Trust Deed.
<br />5. ACTIONS AFFECTING TRUST ESTATE. Trustor shall appear in and
<br />contest any action or proceeding purporting to affect the security hereof or the rights or powers of
<br />Beneficiary or Trustee, and shall pay all costs and expenses, including cost of evidence of title and
<br />attorney's fees, in any such action or proceeding in which Beneficiary or Trustee may appear. Should
<br />Trustor fail to make any payment or to do any act as and in the manner provided in any of the Loan
<br />Instruments, Beneficiary and/or Trustee, in its own discretion, without obligation so to do and
<br />without notice to or demand upon Trustor and without releasing Trustor from any obligation, may
<br />make or do the same in such manner and to such extent as either may deem necessary to protect the
<br />security hereof. Trustor shall, immediately upon demand therefor by Beneficiary, pay all costs and
<br />expenses incurred by Beneficiary in connection with the exercise by Beneficiary of the foregoing
<br />rights, including without limitation costs of evidence of title, court costs, appraisals, surveys and
<br />attorney's fees. Any such costs and expenses not paid within ten (10) days of written demand shall
<br />draw interest at the default rate provided in the Note.
<br />6. EMINENT DOMAIN. Should the Trust Estate, or any part thereof or interest
<br />therein, be taken or damaged by reason of any public improvement or condemnation proceeding, or
<br />in any other manner including decd in lieu of Condemnation ( "Condemnation "), or should Trustor
<br />receive any notice or other information regarding such proceeding, Trustor shall give prompt written
<br />notice thereof to Beneficiary. Beneficiary shall be entitled to all compensation, awards and other
<br />payments or relief therefor, and shall be entitled at its Option to commence, appear in and prosecute
<br />in its own name any action or proceedings. Beneficiary shall also be entitled to make any
<br />compromise or settlement in connection with such taking or damage. All such compensation,
<br />awards, damages, rights of action and proceeds awarded to Trustor (the "Proceeds ") are hereby
<br />assigned to Beneficiary and Trustor agrees to execute such further assignments of the Proceeds as
<br />Beneficiary or Trustee may require.
<br />7. FUTURE ADVANCES. Upon request of Trustor, Beneficiary, at
<br />Beneficiary's option, prior to reconveyanee of the Property to Trustor may make future advances to
<br />Trustor. Such future advances, with interest thereon, shall be secured by this Deed of Trust when
<br />evidenced by promissory notes stating that said notes are secured hereby.
<br />A)• Z
<br />MZ.
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