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<br />DEED OF TRU5T 2 � 10 Q 9 21 1
<br />(Continued) Page 3
<br />duplication pf insurance requiremant. If any procesds from the insurance became payable on Iqss, the pravisipns in this Deed of Trust
<br />for division af proceeds shall apply dnly 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) to provide any required insurance on the Property, (C) to make repairs to the Property or to comply with any obligation to
<br />maintain Existing Indebtedness in goqd standing as required below, then Lendar mey do so. If any actipn or proceeding is commanced 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 ta be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purpqsss 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 expenses will become a part pf the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) ba added to the
<br />balance of tha Credit Agreement and be apportioned among and be payable with any installment payments to become due during either (1)
<br />tha term af any applicable insurance policy; or (2) the remaining term pf the Credit Agrgemant; 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 alsa will secure payment pf thesa amvunts. The
<br />rights provided for in this paragraph shall be in addition to any vther rights or any remedies to which Lender may 6e entitled on account af
<br />any default. Any such action by Lender shall not be construed as cunng the default so as to bar Lender fram any remedy that it atherwise
<br />would have had.
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<br />W. ARRAN7Y; UEFENSE OF TITL�. Th� follbwing provisivns re{ating to ow�ershlp oi tiie Property arm a part �fthis`D+�tl•oi'Trust: .
<br />Title. Trustor warrants that: (a) Trustpr holds good and marketabla title of record tt� 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 Indabtedness sectipn balaw ar in
<br />any title insurance policy, title repart, or final title opinion issued in favor of, and accepted by, Lender in connectipn with this Deed of
<br />Trust, and (b) Trustor has the full right, power, and authority to execute and deliver this peed of Trust to Lender.
<br />Defense of 7itle. 5ubject ta the exceptian in the paragraph abave, 7rustor 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 Trustqr's title or the
<br />interest of Trustee or Lender under this Deed af 7rust, Trustor shsll defand the actiqn at Trustor's expense. Trustor may 6e the
<br />nominal party in such proceeding, but Lender shall be entitled to participate in the proceed(ng and to be represented in the proceeding
<br />by counsel of Lender's own choice, and Trustor will deliver, nr cause to be delivered, to Lendar such instruments as Lender may
<br />request from time to time to permit such participation.
<br />Compllance With �.aws. 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 Prpmises. All promises, agreements, and statements Trustor has made In this Deed qf 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 Borrower's
<br />Indebtednsss is paid in full.
<br />EXISTING INDEBTEDNESS. The following provisions cancerning �xisting Indabtadness are a part of this Deed of Trust:
<br />Existing Lien. The lien pf this �eed of Trust securing the Indebtedness may be secondary and inferior to the lien securing payment of
<br />an existing obligation. The existing pbligatiqn has a current principal balance of approximately $242,867.OA. The pbligation has the
<br />following payment terms: $1,31Q.OQ per Mpnth. Trustor expressly covenants and agrees to pay, ar see to tha payment of, the
<br />Existing Indebtedness and to prevent any default on such indebtedness, any default under the instruments evidencing such
<br />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 priority over this Deed of Trust by which that agreement is modified, amended, extended, or renewed without
<br />the prior writtQn cansent of Lender. Trustor shall neither request nor accept any future advances under any such security agreement
<br />without the priqr written consent of Lender.
<br />CAND�MNATION. The following provisions relating to condemnation proceedings are a part of this DAed of 7rust:
<br />Proceedings. If any proceeding in condemnation is filed, Trustor shall promptly notify Lender in writing, and Trustor shall pramptly
<br />take such steps as may be necessary to defend the action and qbtain 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 counsel of its own
<br />choice, and Trustor will deliver or cause to be delivered ta Lender such instruments and documentation as may be requested by
<br />Lender from time to tima ta permit such participation.
<br />Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or
<br />purchase in lieu of condemnation, Lender may at its electiqn raquire that all or any portion of the net proceeds of the award be applied
<br />to the Indebtedness ar the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of
<br />all reasonabla costs, expenses, and attorneys' fees incurred by Trustee or Lender in connection with the condemnation.
<br />IMPOSII'ION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AU7HORITIE3. The following provisions relating to governmental
<br />taxes, fees and charges are a part af this Deed of Trust:
<br />Current Taxes, Fees and Chargas. Upon request by Lender, Trustor shall execute such dacuments in addition to this Deed of Trust
<br />and take whatever other action Is requested by Lender to pertect and continue Lender's lien on the Real Praperty. Trustqr shall
<br />reimburse Lender for all taxes, as dascribed below, together with all expenses incurred in recording, perfecting or continuing this Deed
<br />of Trust, including without limitatipn all taxes, fees, dpcumentary stamps, and other charges for rewrding or registering this 4eed of
<br />Trust.
<br />Taxes. The following shall constitute taxes tp which this section applies: (1) a specific tax upon this type 6f peed of Trust or upqn
<br />all or any part of the Indebtedness secured by this Deed of Trust; (2) a 5pecific tax on Borrower which Borrower is authorized or
<br />required to deduct from payments on the Indebtedness secured by this type af Deed of Trust; (3) a tax on this type of Deed of Trust
<br />chargeabie against tha l.endar or the holder of the Credit Agreement; and (4) a specific tax on all or any partion of the Indebtedness
<br />vr on payments of principal and intarest made by Borrower.
<br />Subsequent Taxes. If any tax to which this section applies is enacted subsequent to ths 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 pf its avallable remedies for an Event of Default as
<br />providad below unless Trustor either (1) pays the tax before it becomes delinquent, or (2) conteats the tax as provided above in the
<br />Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender.
<br />SECURITY AGREEMENT; FINANCING S7ATEMENTS. � The `lollowing p'rovisions relating fo'this Deed of T'�u'st'as a s�curity agreem9r�t' are a
<br />part of this Deed of 7rust:
<br />5ecurity Agreement. This instrument shall constitute a Security Agreement to the extent any af the Property cpnstitutes fixtures, and
<br />Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time.
<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 7rust in khe real property records, Lender may, at any
<br />time and without further authorization from Trustor, file executed counterparts, copies vr reproductions of this Deed af Trust as a
<br />financing statement. Trustor shall reimburss Lender for all expenses incurred in perfecting or continuing this security interest. Upon
<br />default, Trustor shall npt remove, sever or detach the Personal Property from the Property. Upon default, Trustor shall assemble any
<br />Personal Property not affixed to the Property in a manner and at a place raasanably cpnvenient to Trustor and Lender and make it
<br />available to Lender within three (3) days after receipt of written demand from Lender to the extent permitted by applicable law.
<br />Addresses. The mailing addresses af Trustor (debtor) and Lender (secured party) frpm which information concerning the security
<br />interest granted by this Deed of Trust may be obtained (each as required by the Uniform Commercial Code) are as stated on the first
<br />page of this Deed of Trust.
<br />�URTHER ASSURANC�S; A'ITORNEY-IN-FACT. The following provisions relating tp further assurances and attorney-in-fact are a part of
<br />this Deed of Trust:
<br />Further Assurances. At any time, and from time to time, upon raquest of Lender, Trustor will make, execute and deliver, or will cause
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