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<br />which may be constructed, damaged, or destroyed thereon and to pay when due all claims for labor
<br />performed and materials furnished therefore; to comply with all laws affecting the Property or requiring any
<br />alterations or improvements to be made thereon; not to commit or permit waste thereof; not to commit,
<br />suffer, or permit any act upon the Property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune,
<br />and do all other acts which from the character or use of the Property may be reasonably necessary, the
<br />specific enumerations herein not excluding the general.
<br />2. Hazardous Materials. Trustor shall not cause or permit any Hazardous Materials (as
<br />hereinafter defined) to be brought upon, kept or used in or about the portion of the Property improved
<br />pursuant to the terms of the Owner Participation Agreement between Trustee and Trustor dated evenly
<br />herewith, by Trustor, its agents, employees, contractors or invitees except in the course and scope of the
<br />operation of a builder's supply business on the Property.
<br />3. Charges; Liens. Trustor shall pay at least ten (10) days before delinquency all taxes and
<br />assessments affecting the Property, when due, all encumbrances, charges, and liens, with interest, on the
<br />Property or any part thereof, which appear to be prior or superior hereto; all costs, fees, and expenses of
<br />this Trust. Trustor shall give prompt notice to Beneficiary of any default under any mortgage, deed of trust
<br />or other security agreement with a lien on the Property.
<br />4. Defense of Security. Trustor agrees to appear in and defend any action or proceeding
<br />purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs
<br />and expenses, including cost of evidence of title and attorneys' fees in a reasonable sum, in any such
<br />action or proceeding in which Beneficiary or Trustee may appear.
<br />5. Reimbursement of Costs. Trustor agrees to pay immediately and without demand all sums
<br />expended by Beneficiary or Trustee pursuant to the provisions hereof, with interest from date of
<br />expenditure at the amount allowed by law in effect at the date hereof.
<br />6. Right to Cure. Should Trustor fail to make any payment or to do any act as herein
<br />provided, then Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon
<br />Trustor and without releasing Trustor from any obligation hereof, may make or do the same in such manner
<br />and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee
<br />being authorized to enter upon said property for such purposes; appear in and defend any action or
<br />proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay,
<br />purchase, contest, or compromise any encumbrance, charge, or lien which in the judgment of either
<br />appears to be prior or superior hereto; and, in exercising any such powers, or in enforcing this Deed of
<br />Trust by judicial foreclosure, pay necessary expenses, employ counsel, and pay reasonable attomeys'
<br />fees. Beneficiary may make or cause to be made reasonable entries upon and inspections of the Property,
<br />provided that Beneficiary shall give Trustor notice prior to any such inspection specifying reasonable cause
<br />therefore related to Beneficiary's interest in the Property.
<br />B. It is mutually agreed that:
<br />1. Condemnation Award. Subject to the rights of senior mortgagees, any award of damages
<br />in connection with any condemnation for public use of or injury to the Property or any part thereof is hereby
<br />assigned and shall be paid to Beneficiary who may apply such moneys received by it to any indebtedness
<br />secured hereby and__in such order as-Be€~eficiary finny determine, or at option of Beneficiary the entire
<br />947725v1 2 ~~~~ Of T~USt
<br />City of San Leandro Red~vei~ment ~igency
<br />X99 ~la~~,rthur Slvd,
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