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FINAL 8/20/2002
<br />Owner 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 destroyed
<br />thereon and to pay when due all claims for labor performed and materials furnished therefore; to comply with all laws
<br />affecting the Property or requiring any alterations or improvements to be made thereon; to comply with all terms of
<br />that certain regulatory agreement between Trustor and Beneficiary dated , 200_; not to commit or permit
<br />waste thereof; not to commit, suffer, or permit any act upon the Property in violation of law; and to cultivate, irrigate,
<br />fertilize, fumigate, prune, and do all other acts which from the character or use of the Property may be reasonably
<br />necessary, the specific enumerations herein not excluding the general.
<br />2. Hazardous Materials. Trustor shall not cause or permit any Hazardous Materials (as hereinafter
<br />defined) to be brought upon, kept or used in or about the Property by Trustor, its agents, employees, contractors or
<br />invitees. Trustor shall indemnify, defend (with counsel approved by Beneficiary) and hold Beneficiary harmless from
<br />and against any and all claims, judgments, damages, penalties, fines, costs, liabilities and losses (including, without
<br />limitation, diminution in value of the Property, and sums paid in settlement of claims, attorneys' fees, consultant fees
<br />and expert fees) which arise during or after the term of this Deed of Trust as a result of any breach, contamination,
<br />discharge, or release of Hazardous Materials. This indemnification of Beneficiary by Trustor includes, without
<br />limitation, costs incurred in connection with any investigation of site conditions or any cleanup, remedial, removal or
<br />restoration work required by any federal, state or local governmental agency or political subdivision because of
<br />Hazardous Materials present in, on or under the Property or adjacent property caused by or a result of Trustor's
<br />activities. This indemnification specifically excludes hazardous materials on the Property as a result of prior
<br />occupant. If 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 otherwise
<br />results in the release or discharge on, under or from the Property of Hazardous Materials, Trustor shall promptly take
<br />all actions at its sole expense as are necessary to comply with, and in accordance with, all Hazardous Materials
<br />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 defined in the
<br />Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. '9601 et
<br />seq.), the Hazardous Materials Transportation Act, as amended (49 U.S.C. '1801 et seq.), the Resource
<br />Conservation and Recovery Act of 1976, as amended (42 U.S.C. '6901 et seq.), Section 25117 of the California
<br />Health & Safety Code, Section 25316 of the California Health & Safety Code, and in the regulations adopted and
<br />publications promulgated pursuant to them, or any other federal, state, or local environmental laws, ordinances,
<br />rules, or regulations concerning the environment, industrial hygiene or public health or safety now in effect or enacted
<br />after this date, but excludes materials used in compliance with the law in the construction and operation of the
<br />Project.
<br />3. Charges; Liens. Trustor shall pay at least ten days before delinquency all taxes and assessments
<br />affecting the Property, including assessments on appurtenant water stock; when due, all encumbrances, charges,
<br />and liens, with interest, on the Property or any part thereof, which appear to be prior or superior hereto; all costs,
<br />fees, and expenses of this Trust. Trustor shall give prompt notice to Beneficiary of any default under any mortgage,
<br />deed of trust or other security agreement with a lien on the Property.
<br />4. Hazard Insurance. Trustor shall keep the improvements and personal property now existing or
<br />hereafter erected on the Property insured against loss by fire, vandalism and malicious mischief by a policy of
<br />standard fire and extended all-risk insurance. The policy shall be written on a full replacement value basis.
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