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DEED OF TRUST 2 0 Q 9 O s S O 3
<br />(C~ntinued) Page 3
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Decd of Trust.
<br />Maintenane® of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended coverage
<br />endorsements pn a replacement basis for the full insurable value cpvering all Improvements on the Real Property in an amount
<br />sufFcient to avoid applicatipn pf any coinsurance clause, and with a standard mortgagee clause in fever pf Lender, together with such
<br />other hazard and liability insurance as Lender may reasonably require. Policies shall be written in farm, amounts, coverages and basis
<br />reasonably acceptable to Lender and issued by a company or companies reasonably acceptable tp Lender. Truster, upon request of
<br />Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including
<br />stipulations that coverages will opt be cancelled or diminished without at least ten (10) days prior written notice to Lender. Each
<br />insurance policy else shall include an endorsement providing that coverage in favor of Lender will opt be impaired in any way by any
<br />act, omission or default of Trustor or any ether person. Shpuld the Real Property be located in an area designated by the Director pf
<br />the Federal Emergency Management Agency as a special flood hazard area, Truster agrees tp obtain and maintain Federal Flood
<br />Insurance, if available, for the maximum amount of Trustpr's credit line and the full unpaid principal balance of any prier liens on the
<br />property securing the loan, up to the maximum policy limits set under the National Flapd Insurance Program, or as otherwise required
<br />by Lender, and to maintain such insurance far the term pf the loan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss
<br />if Trustor fails to dp so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's
<br />electipn, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of
<br />any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and
<br />repair, Truster shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds far the reasonable cost of repair or restoration if
<br />Trustor is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt
<br />and which Lender has oat committed to the repair or restoration of the Property shall be used first tp pay any amount owing to Lender
<br />under this Deed of Trust, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the
<br />Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as
<br />Trustor's interests may appear.
<br />Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness described below is in effect, compliance
<br />with the insurance provisions contained in the instrument evidencing such E=xisting Indebtedness shall constitute compliance with the
<br />insurance provisions under this Deed pf Trust, to the extent compliance with the terms of this Deed of Trust would constitute a
<br />duplication of insurance requirement. If any proceeds from the insurance become payable on loss, the provisions in this Deed pf Trust
<br />for division of proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br />LENDER'S EXPENDITURES. If Trustor fails (A) tp keep the Property free of all taxes, liens, security interests, encumbrances, and other
<br />claims, (B) to provide any required insurance on the Property, (C) to make repairs tp the Property or to comply with any obligation to
<br />maintain Existing Indebtedness in good standing as required below, then Lender may do so. If any action or proceeding is commenced that
<br />would materially affect Lender's interests in the Property, then Lender on Trustor's behalf may, but Is not required to, take any action that
<br />Lender believes to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purppses will then bear
<br />interest at the rate charged under the Credit Agreement from the date incurred pr paid by Lender to the date of repayment by Trustor. All
<br />such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (e) be added to the
<br />balance of the Credit Agreement and be apportioned among and be payable with any installment payments to become due during either (1)
<br />the term of any applicable insurance policy; or (2) the remaining term of the Credit Agreement; pr (C) be treated as a balloon payment
<br />which will be due and payable at the Credit Agreement's maturity. The Deed of Trust also will secure payment of these amounts.. The
<br />rights provided for in this paragraph shall be in addition to any other rights pr any remedies to which Lender may be entitled on account of
<br />any default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from any remedy that It otherwise
<br />would have had.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust:
<br />Title. Trustor warrants that: (a) Trustor holds good and marketable title of record to the Prpperty in fee simple, free and clear of all
<br />liens and encumbrances other than those set forth in the Real Property description or in the Existing Indebtedness section below or in
<br />any title insurance policy, title report, er final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of
<br />Trust, and (b) Trustor has the full right, power, and authority tp execute and deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Truster warrants and will forever defend the title to the Property
<br />against the lawful claims of all persons. In the event any action ar proceeding is commenced that questions Trustpr's title pr the
<br />interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the action at Trustor's expense. Trustor may be the
<br />nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding
<br />by cpunsel of Lender's own choice, and Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may
<br />request from time to time to permit such participation.
<br />Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all existing applicable
<br />laws, ordinances, and regulations of governmental authorities.
<br />Survival of Promises. All promises, agreements, and statements Trustor has made in this Deed pf Trust shall survive the execution
<br />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
<br />Indebtedness is paid in full.
<br />EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br />Existing Llen. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an existing lien. Trustor
<br />expressly covenants and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any default on such
<br />indebtedness, any default under the instruments evidencing such indebtedness, or any default under any security documents for such
<br />indebtedness.
<br />No Modification. Trustor shall not enter into any agreement with the holder pf any mprtgage, deed of trust, or other security
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