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<br />200805005
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<br />To protect the security of this Deed of Trust, Trustor hereby covenants and agrees as
<br />follows:
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<br />1. Pavment of Indebtedness. To pay when due, the principal of, and the interest on,
<br />the indebtedness evidenced by the note, charges, fees and all other sums as provided in the loan
<br />instruments.
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<br />2. Title. Trustor is the owner of the property and has the right and authority to
<br />execute this Deed of Trust in respect to the property and warrants that the lien created hereby and
<br />the execution and delivery of the Deed of Trust will be subject only to the first lien in favor of
<br />Wells Fargo Bank, N.A. and does not violate any contract or other obligation to which Trustor is
<br />subject.
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<br />3. Taxes and Assessments. To pay, when due, all taxes, special assessments and all
<br />other charges against the property, before the same become delinquent, and, in the event Benefi-
<br />ciary shall so require, to add to the payments required under the note secured hereby, such
<br />amount as may be sufficient to enable Beneficiary to pay such taxes, assessments or other
<br />charges as they become due.
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<br />4. Repair. Maintenance and Use. To not commit waste on or damage to the property
<br />and to use due care to prevent others from so doing; to keep the property free from mechanics or
<br />other liens not expressly subordinated to the lien hereof; to not make, suffer or permit any nui~
<br />sance to exist nor to diminish or impair the value of the property by any act or omission to act;
<br />and to comply with all requirements of law with respect to the property.
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<br />5. Insurance. At all times during the term hereof to keep the Property insured
<br />against damage by fire, hazards included within the term "extended coverage", and such other
<br />hazards as Beneficiary may require, in an amount of not less than the replacement value thereof
<br />and with companies acceptable to Beneficiary, including a standard mortgagee clause with loss
<br />payable to the Beneficiary and containing an additional provision that the policy cannot be can-
<br />celled without prior written notice to the Beneficiary. In case of loss under such policies, the
<br />Beneficiary is authorized to adjust, collect and compromise all claims thereunder and shall have
<br />the option of applying all or part of the insurance proceeds (i) to any indebtedness secured
<br />hereby and in such order as Beneficiary may determine, (ii) to the Trustor to be used for the re-
<br />pair or restoration of the Property or (iii) for any other purpose or object satisfactory to Benefici-
<br />ary without affecting the lien of this Deed of Trust for the full amount secured hereby before
<br />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 here-
<br />under.
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<br />6. Condemnation. In the event the property, or any part thereof, shall be taken by
<br />eminent domain, Beneficiary is entitled to collect and receive all compensation which may be
<br />paid for any property taken or for damages to property not taken, and Beneficiary shall apply
<br />such compensation, at its option, either to a reduction ofthe indebtedness secured hereby or to
<br />repair and restore the property so taken.
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<br />7. Performance bv Beneficiary. Beneficiary may, but shall have no obligation to, do
<br />any act which Trustor has agreed but failed to do, and Beneficiary may also do any act it deems
<br />necessary to protect the lien hereof. Trustor agrees to repay, upon demand, any sums so ex-
<br />pended by Beneficiary for the above purposes, and any sum so expended by Beneficiary shaH be
<br />added to the indebtedness secured hereby and become secured by the lien hereof. Beneficiary
<br />shall not incur any personal liability because of anything it may do or omit to do hereunder.
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<br />8. Assignment of Rents. Beneficiary shall have the right, power and authority dur-
<br />ing the continuance of this Deed of Trust to collect the rents, issues and profits of the property
<br />and of any personal property located thereon with or without taking possession of the property
<br />affected hereby, and Trustor hereby absolutely and unconditionally assigns all such rents, issues
<br />and profits to Beneficiary. Beneficiary, however, hereby consents to Trustor's collection and
<br />retention of such rents, issues and profits as they accrue and become payable, so long as Trustor
<br />is not, at such time, in default with respect to payment of any indebtedness secured hereby, or in
<br />the performance of any agreement hereunder. If any event of default described hereafter in re-
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