1. Placement into Trust.
<br />a. Trustor, in consideration of the obligations referred to below and the trust hereby
<br />created, irrevocably grants, transfers, conveys, and assigns to trustee, in trust, with power of sale,
<br />Trustor's fee interest in and to that real property located in the County of Alameda, State of
<br />California, more specifically described in Exhibit B attached hereto and incorporated herein by this
<br />reference (the "Property").
<br />b. All right, title, and interest (including any claim or demand in law or equity) which
<br />Trustor now has or may hereafter acquire in or fwo such property; all easements and rights of way
<br />appurtenant to such property; all crops growing or to be grown on such property; all water and
<br />water rights (whether or not appurtenant to such property) and shares of stock pertaining to such
<br />water or water rights, ownership of which affects such property; all minerals, oil, gas, and other
<br />hydrocarbon substances and right~ thereto in, on, under, or upon such property and all royalties
<br />and profits from any such rights or shares of stock.
<br />2. Maintenance of the Property. Trustor will: (a) keep the Property in good condition; (b) not
<br />permit any mechanic's or materialmen's lien to arise against the Property; (c) comply with all laws
<br />having a material effect on the Property; and (d) not commit or permit waste on or to the Property.
<br />3. Taxes and Other Sums Due. Trustorwill promptly pay, satisfy and discharge when due:
<br />(a) prior to delinquency, all general or special taxes and assessments, water and sewer district
<br />charges; rents and premiums affecting the Property; and (b) all encumbrances, charges and liens
<br />on the Property, with interest thereon, which are poor or superior to the lien of this Deed of Trust.
<br />Upon request by Beneficiary, Trustor will promptly furnish Beneficiary with all notices of sums due
<br />for any amounts specified in subparagraph (a) hereof, and upon payment of any such sum by
<br />Trustor, Trustor will promptly furnish Beneficiary with written evidence of such payment. Should
<br />Trustor fail to promptly make any payment required hereunder, Beneficiary may (but is not
<br />. obligated to), at Beneficiary's sole expense, make such payment. Trustor will notify Beneficiary
<br />immediately upon receipt of Trustor of notice of any increase in the assessed value of the Property
<br />and agrees that Beneficiary, in the name of Trustor, may (but is not obligated to), at Beneficiary's
<br />expense, contest by appropriate proceedings such increase in assessment.
<br />4. Leases of the Property by Trustor. Except as permitted under the Resale Restrictions,
<br />Trustor shall not enter into a lease for all or any portion of the Property.
<br />5. Defense of Deed of Trust; Litigation. Trustor will. give Beneficiary immediate written notice
<br />of any action or proceeding (including, without limitation, any judicial or non-judicial proceeding to
<br />foreclose the lien of a junior or senior mortgage or deed of trust) affecting or purporting to affect the
<br />Property or this Deed of Trust. Trustor shall commence, appear in, prosecute, defend,
<br />compromise and settle, and incur necessary costs and expenses, including reasonable attorneys'
<br />fees, in so doing, any action or proceeding, whether judicial or non-judicial, deemed necessary in
<br />Beneficiary's reasonable judgment to preserve or protect the Property or this Deed of Trust.
<br />Trustor will pay all costs and expenses of Beneficiary and Trustee, including costs of evidence of
<br />title of title and reasonable attorneys' fees, in any such action or proceeding in which Beneficiary or
<br />Trustee may appear or for which legal counsel is sought, whether by virtue of being made a party
<br />defendant or otherwise, and whether or not the interest of Beneficiary or Trustee in the Property is
<br />Performance Deed of Trust 2
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