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<br />any right or interest of Beneficiary in the Mortgaged Property or any part thereof sha11 be endangered or questioned
<br />or shall be attacked directly or indirectly, Beneficiary (whether or not named as a party to legal proceedings with
<br />respect thereto) is hereby authorized and empowered to take such steps as in its discretion may be proper for the
<br />defense of any such legal proceedings or the protecrion of such right or interest of Beneficiary, including but not
<br />limited to the employment of independent counsel, the prosecution or defense of litigation, and the compromise or
<br />discharge of adverse claims. All expenditures so made of every kind and character shall be an Obligation (which
<br />Obligation Trustor hereby promises to pay on demand of Beneficiary) owing by Trustor to Beneficiary, and
<br />Beneficiary shall be subrogated to all rights of the person receiving such payment.
<br />(c) Tazes and Other Impositions. Trustor will pay, or cause to be paid, all ta�ces, assessments and
<br />other charges or levies imposed upon or against or with respect to the Mortgaged Property or the ownership, use,
<br />occupancy or enjoyment of any portion thereof, or any utility service thereto, as the same become due and payable,
<br />including but not limited to ad valorem ta�ces assessed against the Mortgaged Property or any part thereof, and shall
<br />deliver promptly to Beneficiary such evidence of the payment thereof as Beneficiary may require. Notwithstanding
<br />the foregoing, Trustor shall have the right to contest any such charges and any such contest shall not be considered a
<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 e�cpense, sha11 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" property 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 properiy constituting a part of the
<br />Mortgaged Prnperty, 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), property 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 damage 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 e�ctended 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 atnount not less than the full replacement
<br />cost of such property, and (iii) as to any additional 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 consttucted; provided,
<br />however, that such insurance sha11 be required only during the construction of the Improvements being financed
<br />hereby, and any period of restorakion or any restoration accomplished in connection with a condemnation, or any
<br />subsequent period of construction of any additional Improvements; and
<br />(5) Such other insurance and in such amounts, as may, from titne to time, be reasonably
<br />required by Beneficiary against other insurable hazards or risks, including, but not limited to, environtnental
<br />DOCS/1045503.1 4
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