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Trustor covenants that it is lawfully seized of the estate hereby conveyed and <br />has the right to grant and convey the Property, and that, to the best of Trustor's <br />knowledge, the Property is unencumbered except for encumbrances of record. <br />Trustor warrants and will defend generally the title to the Property against all claims <br />and demands, subject to encumbrances of record. <br />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 <br />Property in good condition and repair; not to remove or demolish any building <br />thereon; to complete or restore promptly and in good and workmanlike manner any <br />building which may be constructed, damaged, or destroyed thereon and to pay when <br />due all claims for labor performed and materials furnished therefor; to comply with <br />all laws affecting the Property or requiring any alterations or improvements to be <br />made thereon; not to commit or permit waste thereof; not to commit, suffer, or <br />permit any act upon the Property in violation of law; to cultivate, irrigate, fertilize, <br />fumigate, prune, and do all other acts which from the character or use of the Property <br />may be reasonably necessary, the specific enumerations herein not excluding the <br />general. <br />2. Hazardous Materials. Trustor shall not cause or permit any Hazardous <br />Materials (as hereinafter defined) to be brought upon, kept or used in or about the <br />Property by Trustor, its agents, employees, contractors or invitees. <br />Trustor shall indemnify, defend (with counsel approved by Beneficiary) and <br />hold Beneficiary harmless from and against any and all claims, judgments, damages, <br />penalties, fines, costs, liabilities and losses (including, without limitation, diminution <br />in value of the Property, and sums paid in settlement of claims, attorneys' fees, <br />consultant fees and expert fees) which arise during or after the term of this Deed of <br />Trust as a result of any breach, contamination, discharge, or release of Hazardous <br />Materials. This indemnification of Beneficiary by Trustor includes, without <br />limitation, costs incurred in connection with any investigation of site conditions or <br />any cleanup, remedial, removal or restoration work required by any federal, state or <br />local governmental agency or political subdivision because of Hazardous Materials <br />present in, on or under the Property or adjacent property caused by or a result of <br />Trustor's activities. This indemnification specifically excludes hazardous materials on <br />the Property as a result of prior occupant. If any Hazardous Materials are <br />discharged, released, dumped, or spilled on, under, or about the Property after <br />Trustor obtains ownership and results in any contamination of the Property or <br />adjacent property, or otherwise results in the release or discharge on, under or from <br />2 <br />