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2005054'75
<br />and during regular business hours in order to inspect the Trust Property for purposes
<br />of compliance with the terms and conditions of this Deed of Trust.
<br />4, Taxes. To the extent the same first become due and payable on or after
<br />June 2005, Trustors shall pay each installment of all taxes and special
<br />assessments of every kind, now or hereafter levied against the Trust Estate or any part
<br />thereof, before delinquency, without notice or demand, and shall provide Beneficiary with
<br />evidence of the payment of same. Trustors shall pay all taxes and assessments which
<br />may be levied upon Beneficiary, interest herein or upon this Deed of Trust or the debt
<br />secured hereby without regard to any law that may be enacted offering payment of the
<br />whole or any part thereof upon Beneficiary.
<br />5. Insurance and Repairs. Trustors shall maintain fire and extended coverage
<br />insurance insuring the improvements and buildings, if any, constituting part of the Trust
<br />Estate for an amount no less than the valuation of the improvements and buildings and
<br />in no event less than $300,000.00. Such insurance policy shall contain a standard
<br />mortgage clause in favor of the Beneficiary and shall not be cancelable, terminable, or
<br />modifiable without thirty (30) days prior written notice to the Beneficiary. Trustors shall
<br />promptly repair, maintain, and replace the Trust Estate or any part thereof so that,
<br />except for ordinary wear and tear, the Trust Estate shall not deteriorate. In no event
<br />shall Trustors conduct waste on or to the Trust Estate. If required by Beneficiary,
<br />Trustors shall also maintain premises general liability insurance naming the Beneficiary
<br />as an additional named insured and providing a minimum of One Million Dollars
<br />($1,000,000.00) per occurrence combined single limit for bodily injury and /or property
<br />damage.
<br />6. Actions Affecting Trust Estate. Trustors shall appear in and contest any
<br />action or proceeding purporting to affect the security hereof or the rights or powers of the
<br />Beneficiary or Trustee and shall pay all costs and expenses, including cost of evidence
<br />of title and attorney fees, in any such action or proceeding in which the Beneficiary or
<br />Trustee may appear. Should Trustors fail to make any payment or to do any act as and
<br />in the manner provided in any of the Loan Instruments, Beneficiary and/or Trustee, each
<br />in its own discretion, without obligation so to do and without notice to or demand upon
<br />Trustors and without relieving Trustors from any obligation, may make or do the same
<br />in such manner and to such extent as either may deem necessary to protect the security
<br />hereof. Trustors shall, immediately upon demand therefor by Beneficiary, pay all costs
<br />and expenses incurred by Beneficiary in connection with the exercise by Beneficiary of
<br />the foregoing rights, including, without limitation, costs of evidence of title, court costs,
<br />appraisals, surveys and attorney fees and any expenses or fees incurred by Trustee. Any
<br />such costs and expenses not paid within ten (10) days of written demand shall draw
<br />interest at the default rate provided in the Note.
<br />7. Eminent Domain, Should the Trust Estate, or any part thereof or interest
<br />therein, be taken or damaged by reason of any manner including deed in lieu of
<br />condemnation ( "Condemnation "), or should Trustors receive any notice or other
<br />information regarding such proceeding, Trustors shall give prompt written notice thereof
<br />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,
<br />and prosecute in its own name any action or proceedings. The Beneficiary shall also be
<br />entitled to make any compromise or settlement in connection with such taking or
<br />damage. All such Compensation, awards, damages, rights of action, and proceeds
<br />awarded to Trustors (the "Proceeds ") are hereby assigned to Beneficiary, and Trustors
<br />agree to execute such further assignments of the Proceeds as Beneficiary or Trustee may
<br />require.
<br />8. Events of Default. Any of the following events shall be deemed an event of
<br />default hereunder:
<br />Lo648853.2
<br />(a) Trustors' failure to make payment of any installment of interest,
<br />principal, or principal and interest, or any other sum secured hereby
<br />when such payment is due, which failure is not satisfied within ten
<br />(10) days following Trustors' receipt of written notice of nonpayment
<br />from Beneficiary;
<br />(b) Trustors' failure to observe or perform any obligation, term,
<br />covenant, understanding, condition or agreement, or the provisions
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