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DEED OF TRUST 200306838 (Continued) Page 3 authorize Me appropriate govammental official to deliver to Lender at any time a written statement of the taxes and assessments against the Property . Notice of Construction. Trustor shall notify Lender at least fifteen (15) days before any work Is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien, matenatimen'a lien, or other lien could be asserted on account of the work, services, or materials. Truster will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Trustor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Dead of Trust. Maintenance of Insurance. Trustor shall procure and maintain poll les of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all Improvements on Me Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a Standard mortgagee clause in favor of Lentler, together with such other hazard and liability insurance as Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or dlminlshed without at least ten (10) days prior written notice to Lender. Each insurance policy also shall include an endorsement providing Mat coverage in favor of Lender will not be Impaired in any way by any act, omission or default of Trustor or any other person. Should the Real Property be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Truster agrees to obtain and maintain Federal Flood Insurance, If available, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for Me full unpaid principal balance of Me loan and any prior liens on Me property securing Me loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for Me term of the loan. Application of Proceeds. Trustor shall promptly notity Lender of any loss or damage to the Property. Lender may make proof of loss if Trustor fails to do so within fifteen (15) days of Me casualty, Whether or not Lender's security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply Me proceeds to the reduction W the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or replace the damaged or destroyed Improvements in a manner satsfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Trustor from Me proceeds for Me reasonable cost of repair or restoration If Trustor is not in default under this Dead of Trust. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under Mis Deed of Trust, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as Trustor's Interests may appear. Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness described below is in effect, compliance with the insurance provisions contained in the instrument evidencing such Existing Indebtedness shall constitute compliance with the insurance provisions under this Dead of Trust, to Me extent compliance with Me tenons of this Dead of Trust would constitute a duplication of Insurance requirement If any proceeds from the insurance become payable on loss, Me provisions in this Dead of Trust for division of proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness. LENDER'S EXPENDITURES. If Trustor fails (A) to keep Me Property free of all taxes, liens, security interests, encumbrances, and other claims, (S) to provide any required insurance on the Property, (C) to make repairs to Me Property or to comply with any obligation to maintain Existing Indebtedness in good standing as required below, then Lender may do so. If any action or proceeding Is commenced that would materially affect Lender's interests in Me Property, then Lender on Truster's behalf may, but is not required to, take any action Mat Lender believes to be appropriate to protect Lenders interests. All expenses incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Credit Agreement from the date incurred or pad by Lender to Me date of repayment by Trustor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Credit Agreement and be apportioned among and be payable with any Installment payments to become due during either (1) Me term of any applicable insurance policy; or (2) the remaining term of the Credit Agreement; or (C) be treated as a balloon payment which will as due and payable at the Credit Agreement's maturity. The Deed of Trust also will secure payment of these amounts. The rights provided for in this paragraph shall be In addition to any other rights or any remedles to which Lender may be entitled on account of any default Any such action by Lender shall not be construed as curing Me default so as to bar Lender from any remedy Mat it otherwise would have had. WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust: Title. Trustor warrants Mat (a) Trustor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and encumbrances other than those set forth in the Real Property description or in the Existing Indebtedness section below or in any title insurance policy, title report, or final title opinion Issued In favor of, and accepted by, Lender in connection with this Dead of Trust, and (b) Trustor has the full right, power, and authority M execute and deliver this Dead of Trust to Lender. Defense of Title. Subject to the exception in the paragraph above, Trustor warrants and will forever defend the title to the Property against the lawful claims of all persons. In Me event any action or proceeding is commenced that questions Trusters the or the interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the action at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lenders own choice, and Truster will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation. Compliance With Laws. Truster warrants that the Property and Trustors use of the Property complies with all existing applicable laws, eminences, and regulations of governmental authorities. Survival of Promises. All promises, agreements, and statements Truster has made in this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing In nature and shall remain in full force and effect until such time as Trustor's Indebtedness is paid in full. EXISTING INDEBTEDNESS. The fallowing provisions concerning Existing Indebtedness are a part of this Used of Trust;