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A. To protect the security of this DEED OF TRUST. Trustor agrees as follows <br />1. Preservation and Maintenance of Property. Trustor agrees to keep the Property in good <br />condition and repair; to complete or restore promptly and in good and workmanlike manner any building which <br />may be constructed, damaged, or destroyed thereon and to pay when due all claims for labor performed and <br />materials furnished therefore; to comply with all laws affecting the Property or requiring any alterations or <br />improvements to be made thereon; not to commit or permit waste thereof; not to commit, suffer, or permit any <br />act upon the Property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune, and do all other acts <br />which from the character or use of the Property may be reasonably necessary, the specific enumerations herein <br />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 Property by Trustor, its agents, employees, <br />contractors or invitees except in the course and scope of the operation of a Trustor's business on the Property. <br />The term "Hazardous Materials" includes, without limitation, any flammable explosives, radioactive <br />materials, hazardous materials, hazardous wastes, hazardous or toxic substances, or related materials defined <br />in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 <br />U.S.C. §9601 et seq.), the Hazardous Materials Transportation Act, as amended (49 U.S.C. §1801 et seq.), the <br />Resource Conservation and Recovery Act of 1976, as amended (42 U.S.C. §6901 et seq.), Section 25117 of <br />the California Health & Safety Code, Section 25316 of the California Health & Safety Code, and in the <br />regulations adopted and publications promulgated pursuant to them, or any other federal, state, or local <br />environmental laws, ordinances, rules, or regulations concerning the environment, industrial hygiene or public <br />health or safety now in effect or enacted after this date, but excludes materials used in compliance with the law <br />in the construction and operation of the Project. <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 this <br />Trust. Trustor shall give prompt notice to Beneficiary of any default under any mortgage, deed of trust or other <br />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 and <br />expenses, including cost of evidence of title and attorneys' fees in a reasonable sum, in any such action or <br />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 expenditure at <br />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 provided, <br />then Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon Trustor and <br />without releasing Trustor from any obligation hereof, may make or do the same in such manner and to such <br />extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to <br />enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect <br />the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest, or compromise any <br />encumbrance, charge, or lien which in the judgment of either appears to be prior or superior hereto; and, in <br />exercising any such powers, or in enforcing this DEED OF TRUST by judicial foreclosure, pay necessary <br />939797v9 C-3 Owner Par#ici~a#ian Agreement <br />City of San i,eandro Redevelopmen# Agency <br />#dC7-1dd Joaquin Avenue <br />