SUPPLEMENTAL MATERIALS (TITLE REPORT)

DEED OF TRUST Loan No: 412420005782 (Continued) Page 3 Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender, together with such other hazard and liability insurance as Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Grantor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance In form satisfactory to Lender, Including stipulations that coverages will not be cancelled or diminished without at least ten (10) days prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage In favor of Lender will not be impaired In any way by any act, omission or default of Grantor or any other person. If the dwelling and insurable Improvements located on the Real Property is or becomes located in an area designated by the Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Flood Insurance In an amount equal to the lesser of (1) the total line of credit under the Credit Agreement wilh Lender, plus the outstanding principal balance of senior loans or lines of credit secured by the Real Property; (2) the maximum amount of Flood Insurance coverage available through the National Flood Insurance Program; and (3) the full insurable value (100% of replacement cost value) of the dwelling and insurable Improvements; or as otherwise required by law or Lender. If the dwelling is a condominium unit, the condominium association must have a master Flood Insurance policy on the entire building which provides coverage on Grantor's unit in at least this amount. If Grantor or the condominium association chooses to purchase Flood insurance that covers less than 100% of the replacement cost value of the dwelling and Insurable Improvements because Lender does not require that much coverage, Grantor acknowledges that he or she may not have enough insurance to repair the dwelling in the event of a flood. The policies and/or endorsements must name Lender, Its successors, and assigns, as mortgagee and/or as an additional loss payee. Grantor agrees to maintain such insurance for the term of the loan. The insurance requirements may change during the term of this Deed of Trust. If Grantor fails to maintain any of the coverages described above, Lender may obtain Insurance coverage, at Lender's option and Grantor's expense. This insurance Lender purchases will take effect as of the date that Grantors insurance was cancelled, expired or no longer in effect for any reason. Except for Flood Insurance, Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall•cover Lender, but might or might not protect Grantor, Grantor's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Grantor acknowledges that the cost of the Insurance coverage so obtained might significantly exceed the cost of Insurance that Grantor could have obtained. Any amounts disbursed by Lender under this section are covered by the "Lender's Expenditures" section of this Deed of Trust (see below) and shall be additional debt of Grantor secured by this need of Trust. Application of Proceeds. Grantor shall promptly notify Lender of any toss or damage to the Property. Lender may make proof of loss if Grantor falls to do so within fifteen (15) days of the casualty. Whether or not Lenders security is impaired, Lender may, at Lenders election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. Lender is not required to pay interest on any insurance proceeds that it retains. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration If Grantor is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property stall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued Interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor as Grantors interests may appear. If any proceeds are used to reduce the amount of principal which is owed to Lender under the Credit Agreement, that use will not delay the due date or change the amount of any of the monthly payments under the Credit Agreement. However, 1 and Lender may agree in writing to those delays or changes. Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness described below Is in effect, compliance with the insurance provisions contained in the instrument evidencing such Existing Indebtedness shall constitute compliance with the insurance provisions under this Deed of Trust, to the extent compliance with the terms of this Deed of Trust would constitute a duplication of Insurance requirement. If any proceeds from the insurance become payable on toss, the provisions in this Deed of Trust for division of proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness. Lender's Expenditures. If Grantor fails (1) to keep the Property free of all taxes, liens, security interests, encumbrances, and other claims (2) to provide any required insurance on the Property, or (3) to make repairs to the Property or to comply with any obligation to maintain Existing Indebtedness in good standing as required below, then Lender may do so. If any action or proceeding is commenced that would materially affect Lenders Interests In the Property, then Lender on Grantors behalf may, but is not required to, take any action that Lender believes to be appropriate to protect Lenders interests. All expenses Incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Credit Agreement from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lenders option, will (1) be payable on demand; (2) be added to the balance of the Credit Agreement and be apportioned among and be payable with any installment payments to become due during either (a) the term of any applicable insurance policy; or (b) the remaining term of the Credit Agreement; or (3) be treated as a balloon payment which will be due and payable at the Credit Agreement's maturity. The Property also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had. Warranty; Defense of Title. The following provisions relating to ownership of the Property are a part of this Deed of Trust: Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and encumbrances other than those set forth in the Real Property description or in the Existing Indebtedness section below or in any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and (b) Grantor has the full right, power, and authority to execute and deliver this Deed of Trust to Lender. Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Grantors title or the interest of Trustee or Lender under this Deed of Trust, Grantor shall defend the action at Grantors expense. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lenders own choice, and Grantor will deliver, or cause to be delivered, to Lender such Instruments as Lender may request from time to time to permit such participation. Compliance With Laws. Grantor warrants that the Property and Grantors use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental authorities. Survival of Promises. All promises, agreements, and statements Grantor has made in this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature and shall remain in full force and effect until such time as Grantors Indebtedness is paid in full. Existing Indebtedness. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust: Existing Lien. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to the lien securing payment of an existing obligation. The existing obligation has a current principal balance of approximately $40401. Grantor expressly covenants and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any default on such indebtedness, any default under the Instruments evidencing such indebtedness, or any default under any security documents for such indebtedness. No Modification. Grantor shall not enter into any agreement with the holder of any mortgage, deed of trust, or other security agreement which has priority over this Deed of Trust by which that agreement is modified, amended, extended, or renewed without the prior written consent of Lender. Grantor shall neither request nor accept any future advances under any such security agreement without the prior written consent of Lender. Condemnation. The following provisions relating to condemnation proceedings are a part of this Deed of Trust: Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly notify tender in writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate In the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit such participation.