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i;~ r' DEED OF TRUST 2 O 1 0 0 0 2 Z 9
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<br />insurance provisions under this Deed of 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 of 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) to keep the Property free of all taxes, liens, security interests, encumbrances, and other
<br />claims, (8) tv provide any required insurance on the Property, (G) to make repairs to the Property or to comply with any obligation to
<br />maintain Existing Indebtedness in good standing as required below, then Lender may dp 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 purposes will then bear
<br />interest at the rate charged under the Credit Agreement from the date incurred or paid by Lender to the date of repayment by Trustor. All
<br />such expanses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (8) be added to the
<br />balance of the Credit Agreement and be apportioned among and be payable with any installment payments tv become due during either (1)
<br />the term of any applicable insurance policy; or (2) the remaining term of the Credit Agreement; or (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 or any remedies to which Lender may be entitled an 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. Ths 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 Property 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 tills insurance policy, title report, or final tills opinion issued in fever of, and accepted by, Lender in connection with this Deed of
<br />Trust, and (b) Trustor has the full right, power, and authority to execute and deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Trustor warrants and will forever defend the title to the Property
<br />against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Trustor's title or 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 tp be represented in the proceeding
<br />by counsel of Lender's awn choice, and Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may
<br />request from time tp time to permit such participation.
<br />Compliance Wlth Laws. Trustor warrants that the Property and Trustar's use of the Property cpmplies 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 of 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 Liens. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to liens securing payment of
<br />the following existing obligations: (1) The existing obligation has a current principal balance of approximately $240,000.00. ,The
<br />pbligation has the fpllowing payment terms: $1,381.00 per Month.(2) Ths existing obligation has a current principal balance of
<br />approximately $45,OOD.00. The obligation has the fpllowing payment terms: $379.00 per Month. Trustor expressly covenants and
<br />agrees to pay, or see tp the payment of, the Existing Indebtedness and to prevent any default on such indebtedness, any default under
<br />the instruments evidencing such indebtedness, or any default under any security documents for such indebtedness.
<br />No Modification. Trustor shall not enter into any agreement with the holder of any mortgage, deed of trust, or other security
<br />agreement which has priprity over this Desd of Trust by which that agreement is modified, amended, extended, or renewed without
<br />the prior written consent of Lender. -Trustor shall neither request nor accept any future advances under any such security agreement
<br />without the prior written consent of Lender.
<br />CONDEMNATION. The fpllowing provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br />Proceedings. If any proceeding in condemnation is filed, Trustor shall promptly notify Lender in writing, and Trustor shall promptly
<br />take such steps as may be necessary to defend the action and obtain the award. Trustor may be the nominal party in such
<br />proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by oounsel of its own
<br />choice, and Truster will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by
<br />Lender from time to time to permit such participation.
<br />Application of Net Proceeds. If all ar any part of the Property is condemned by eminent domain proceedings or by any proceeding ar
<br />purchase in lieu of condemnation, Lender may at its election require that all pr any portion of the net proceeds of the award be applied
<br />to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of
<br />all reasonable costs, expenses, and attorneys' fees incurred by Trustee or Lendsr in connection with the condemnation.
<br />IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental
<br />taxes, fees and charges are a part of this Deed pf Trust:
<br />Current Taxes, Fees and Charges. Upon request by Lender, Trustor shall execute such documents in addition to this Deed of Trust
<br />and take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Trustor shall
<br />reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Deed
<br />of Trust, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Dead of
<br />Trust.
<br />Taxes. The following shall constitute taxes to which this section applies: (1) a specific tax upon this type of Deed of Trust or upon
<br />all or any part of the Indebtedness secured by this Deed of Trust; (2) a specific tax on Trustor which Trustor is authorized or
<br />required to deduct from payments on the Indebtedness secured by this type of Deed of Trust; (3) a tax on this type of Deed of Trust
<br />chargeable against the Lender or the holder of the Credit Agreement; and (4) a specific tax on all or any portion of the Indebtedness
<br />or on payments of principal and interest made by Trustor.
<br />Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Deed of Trust, this event shall
<br />have the same effect as an Event of Default, and Lender may exercise any or all of its available remedies for an Event of Default as
<br />provided below unless Trustor either (1) .pays the tax before it becomes dalinquent,_or..~2)__contests the tax as provided above in the
<br />Taxes and Liens section and deposits with Lender cash or a sufficient porporate surety bond or other se`cul'ffy satisfactory to Lender.
<br />SECURITY AGREEMENT; FINANCING STATEMENTS. The following previsions relating to this Deed of Trust as a security agreement are a
<br />part of this Desd pf Trust:
<br />Security Agreement. This instrument shall constitute a Security Agreement to the extent any pf the Property constitutes fixtures, and
<br />Lender shall have all pf the rights of a secured party under the Uniform Commercial Code as amended from time to lima.
<br />Security Interest. Upon request by Lender, Trustor shall take whatever action Is requested by Lender to perfect and continue Lender's
<br />security Interest in the Personal Property. In addition to recording this Deed of Trust in the real property recprds, Lender may, at any
<br />time and without further authorization from Trustor, file executed counterparts, copies or reproductions of this Deed of Trust as a
<br />financing statement. Trustor shall reimburse Lander for all expenses incurred in pertecting or continuing this security interest. Upon
<br />default, Trustor shall not remove, sever or detach the Personal Property Pram the Property. Upon default, Trustor shall assemble any
<br />Personal Property not affixed to the Property in a manner and at a place reasonably convenient to Trustor and Lander and make it
<br />available to Lender within three (3) days after receipt of written demand from Lender to the extant permitted by applicable law.
<br />Addresses. The mailing addresses of Trustor (debtor) and Lender (secured party) from which information concerning the security
<br />interest granted by this Deed of Trust may be pbtained (each as required by the Uniform Commercial Code) are as stated on the first
<br />page of this Deed of Trust.
<br />FURTHER ASSURANCES; ATTORNEY-IN-FACT. The fpllowing provisions relating to further assurances and attorney-in-fact are a part of
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