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200901437 3.5 Restoration. Provided. no Event of Default exists or is continuing as defined in Section 4.1 herein, - in the event there shall be an insured casualty loss or a Taking, the insurance proceeds or Award shall be paid or delivered to Trustor to be used by Trustor to restore or replace the taken, damaged or destroyed property, in accordance with Section 5.4 of the Credit Agreement. In the event there shall be an insured casualty loss or a Taking and an Event of Default has occurred and is continuing, the insurance proceeds or A ward will be paid or delivered to Beneficiary, and if Beneficiary elects or is required to cause the applicable insurance proceeds or A ward to be applied to restore, repair or replace the Property ("Restoration"), Beneficiary shall disburse such insurance proceeds or A ward in accordance with disbursement procedures reasonably acceptable to Beneficiary, including, without limitation, such procedures as are customarily utilized by construction lenders to insure the lien free completion of construction projects. No such insurance proceeds or Award shall be disbursed unless the following conditions are satisfied promptly upon the occurrence of the casualty loss or Taking (but in no event later than one hundred eighty (180) days following such occurrence): (a) Beneficiary shall have received and approved complete plans and specifications for the Restoration; (b) Beneficiary shall have received and approved a construction contract for the work of Restoration with a contractor acceptable to Beneficiary; (c) Beneficiary shall have received copies of all permits and approvals required in connection with the Restoration; (d) Beneficiary shall be satisfied that the amount of the insurance proceeds or Award actually received plus Borrowing Availability (exclusive of the temporary application of insurance proceeds or an Award to the Revolving Loan and taking into account the ordinary working capital needs of Trustor) are sufficient to pay all costs of the Restoration (as evidenced by a cost estimate prepared by an architect or engineer reasonably acceptable to Beneficiary); and (e) Beneficiary shall be satisfied that after the Restoration is completed, the value of the Property, upon completion of the Restoration, will equal or exceed such value immediately prior to the applicable casualty loss or Taking. 3.6 Maintenance ofPropertv. Trustor shall: (a) promptly repair, restore, replace or rebuild any material portion of the Property which may become damaged, destroyed, altered, removed, severed, or demolished, whether or not the Award or the insurance proceeds received by Trustor as provided in Section 3.5 are sufficient for the purpose, with replacements at least equal in quality and condition as previously existed, free from any security interest in, encumbrances on or reservation of title thereto except the lien of this Deed of Trust and Permitted Encumbrances; (b) keep the Property in good condition and repair, without waste, and free from mechanics', materialmen's or like liens or claims except for Permitted Encumbrances; andº - 6 -