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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; not to remove or demolish any building thereon, except as contemplated in the Owner
<br />Participation Agreement between the Trustor and Beneficiary dated May 1, 2000; to complete or restore
<br />promptly and in good and workmanlike manner any building which may be constructed, damaged, or
<br />destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor; to
<br />comply with all laws affecting the Property or requiring any alterations or improvements to be made
<br />thereon; not to commit or permit waste thereof; not to commit, suffer, or permit any act upon the Property
<br />in violation of law; to cultivate, irrigate, fertilize, fumigate, prune, and do all other acts which from the
<br />character or use of the Property may be reasonably necessary, the specific enumerations herein not
<br />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,
<br />employees, contractors or invitees.
<br />Trustor shall indemnify, defend (with counsel approved by Beneficiary) and hold Beneficiary
<br />harmless from and against any and all claims, judgments, damages, penalties, fines, costs, liabilities and
<br />losses (including, without limitation, diminution in value of the Property, and sums paid in settlement of
<br />claims, attorneys' fees, 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 Materials. This
<br />indemnification of Beneficiary by Trustor includes, without limitation, costs incurred in connection with any
<br />investigation of site conditions or any cleanup, remedial, removal or restoration work required by any
<br />federal, state or 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 Trustor's activities. This
<br />indemnification specifically excludes hazardous materials on the Property as a result of prior occupant. If
<br />any Hazardous Materials are discharged, released, dumped, or spilled on, under, or about the Property
<br />after Trustor obtains ownership and results in any contamination of the Property or adjacent property, or
<br />otherwise results in the release or discharge on, under or from the Property of Hazardous Materials,
<br />Trustor shall promptly take all actions at its sole expense as are necessary to comply with, and in
<br />accordance with, all Hazardous Materials Laws.
<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
<br />defined in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
<br />amended (42 U.S.C. §9601 et M.), the Hazardous Materials Transportation Act, as amended (49 U.S.C.
<br />§1801 et seg.), the Resource Conservation and Recovery Act of 1976, as amended (42 U.S.C. §6901 et
<br />seg.), Section 25117 of the California Health & Safety Code, Section 25316 of the California Health &
<br />Safety Code, and in the regulations adopted and publications promulgated pursuant to them, or any other
<br />federal, state, or local environmental laws, ordinances, rules, or regulations concerning the environment,
<br />industrial hygiene or public health or safety now in effect or enacted after this date, but excludes materials
<br />used in compliance with the law in the construction and operation of the Project.
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