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<br />default under this Deed of Trust or any other Credit Documents, provided Trustor either provides a bond for the
<br />disputed matters in accordance with applicable law or establishes appropriate reserves for such matters.
<br />(d) Insurance. Trustor, at its sole cost and expense, shall at all times, unless otherwise indicated,
<br />provide, maintain and keep in force:
<br />(1) property insurance covering the Improvements, the Premises and Collateral against loss
<br />or damage from such causes of loss as are embraced by insurance policies of the type known as "Special Form/Open
<br />Perils/Special Perils" properiy insurance, including, without limitation, boiler coverage, and business interruption
<br />coverage, on a replacement cost basis with an Agreed Value Endorsement waiving coinsurance, all in an amount not
<br />less than the then full replacement cost of the Improvements and personal property constituting a part of the
<br />Mortgaged Property, without deduction for physical depreciation thereof;
<br />(2) comprehensive general liability insurance insuring against claims for personal injury
<br />(including, without limitation, bodily injury or death), properiy damage liability and such other loss or damage from
<br />such causes of loss as are embraced by insurance policies of the type known as"Comprehensive General Liability"
<br />insurance, with a combined single limit of $1,000,000 per occurrence. Such insurance coverage shall be issued and
<br />maintained on an "occurrence" basis;
<br />(3) flood insurance in an amount equal to the lesser of 100% of the full replacement cost of
<br />the Improvements, or the maximum amount of insurance obtainable; provided, however, that such insurance shall be
<br />required only when all or any portion of the Land is located within a 100-year flood plain or area designated as
<br />subject to flood by the Federal Emergency Management Agency or any other governmental agency, or when
<br />required by any federal, state or local law, statute, regulation or ordinance;
<br />(4) In the event of the construction of any Improvements on the Mortgaged Property,
<br />builder's risk insurance insuring against loss or datnage from such causes of loss as are embraced by insurance
<br />policies of the type now known as "Builder's Risks" property insurance (written on an "all risks" or "open perils"
<br />basis), including, without limitation, fire and extended coverage, and_collapse of the Improvements (or any portion
<br />thereo fl to agreed limits, all in form and substance acceptable to Beneficiary and (i) as to Improvements being or to
<br />be constructed with the proceeds of the Loan, in an amount not less than the completed value on a non-reporting
<br />form of the Improvements being constructed, (ii) as to property then subject to restoration pursuant to Section 2.1(h)
<br />or any restoration accomplished in connection with a condemnation, in an amount not less than the full replacement
<br />cost of such property, and (iii) as to any addirional property then being constructed, in an amount not less than the
<br />completed value, on a non-reporting form, of the additional improvements then being constructed; provided,
<br />however, that such insurance shall be required only during the construction of the Improvements being financed
<br />hereby, and any period of restoration or any restoration accomplished in connection with a condemnation, or any
<br />subsequent period of construction of any additional Improvements; and
<br />(� Such other insurance and in such amounts, as may, from time to time, be reasonably
<br />required by Beneficiary against other insurable hazards or risks, including, but not limited to, environmental
<br />impanment liability coverage, nuclear reaction or radioactive contamination coverage andlor earthquake coverage,
<br />which hazards or risks at the time are commonly insured against, and provided such insurance is generally available,
<br />for properiy similarly situated, due regard being given to the height and type of building, its construction, use and
<br />occupancy.
<br />Except as herein expressly provided otherwise, all policies of insurance required under this Section 2.1(d)
<br />shall be issued by companies, and be in form, amount, and content and have an expiration date, approved by
<br />Beneficiary and as to the policies of insurance required under subparagraph (1) of this Section 2.1(d), shall contain a
<br />Standard Non Contributory Mortgagee Clause or Lender's Loss Payable Endorsement, or equivalents thereof, in
<br />form, scope and substance satisfactory to Beneficiary, in favor of Beneficiary, and as to policies of insurance
<br />required under subparagraph (1) of this Section 2.1(d), shall provide that the proc�eds thereof ("Insurance
<br />Proceeds") shall be payable to Beneficiary. Beneficiary sha11 be furnished a certificate of each policy required
<br />hereunder, which policy shall provide that the issuing company shall endeavor to notify Beneficiary in writing at
<br />least thirty (30) days' prior to cancellation or modification of the policy. If requested by Beneficiary, Trustor sha11
<br />also furnish to Beneficiary a copy of each such policy. At least thiriy (30) days prior to expiration of any policy
<br />DOCS/1045495.1 4
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