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� furnished; (d) comply with all laws affecting the Property or requiring any alterations or <br /> improvements to be made; (e) not commit or permit waste; and (� cultivate, irrigate, <br /> fertilize, fumigate, prune and do all other acts which from the character or use of the <br /> Property may be reasonably necessary. <br /> 3. Insurance. Trustor shall maintain hazard insurance against loss by fire, <br /> hazards included with the term "extended coverage," and any other hazards for which <br /> Beneficiary requires insurance, and liability insurance. The insurance carrier and the <br /> insurance policies and amounts of coverage shall be acceptable to Beneficiary, the <br /> liability policy shall name Beneficiary as an additional insured, and shall require 30 days' <br /> prior notice to Beneficiary before the policy is modified or terminated. <br /> 4. Defense of Security. Trustor shall appear in and defend any action or <br /> proceeding purporting to affect the security or the rights or powers of Beneficiary or <br /> Trustee. Trustor shall pay all costs and expenses, including costs of evidence of title <br /> and attorneys' fees, in any such action or proceeding in which Trustee or Beneficiary <br /> may appear, and in any suit brought by Beneficiary to foreclose this Deed of Trust. <br /> 5. Payment of Taxes and Liens. Trustor shall pay (a) at least 10 days <br /> before delinquency, all taxes and assessments affecting the Property, including water <br /> stock assessments; (b) when due, all encumbrances, charges and liens, with interest, <br /> on the Property, which are or appear to be prior or superior to this Deed of Trust; and <br /> (c) upon demand all costs, fees and expenses of this Deed of Trust. If Trustor fails to <br /> make any payment or to do any act provided for in this Deed of Trust, then Beneficiary <br /> or Trustee may, without obligation to do so, and with or without notice to or demand <br /> upon Trustor, and without releasing Trustor from any obligation under this Deed of <br /> Trust: (i) make or do the same in such manner and to such extent as either may deem <br /> necessary to protect the security, Beneficiary or Trustee being authorized to enter upon <br /> the Property for such purposes; (ii) appear in or commence any action or proceeding <br /> purporting to affect the security, or the rights or powers of Beneficiary or Trustee; <br /> (iii) pay, purchase, contest or settle any encumbrance, charge or lien which in the <br /> judgment of either appears to be senior to this Deed of Trust; and (iv) in exercising any <br /> such powers, pay allowable expenses, including attorneys' fees. <br /> 6. Reimbursement of Costs. Trustor shall pay upon demand all sums <br /> expended by Beneficiary or Trustee provided for in this Deed of Trust or allowed by law, <br /> with interest from date of expenditure at the maximum rate allowed by law. <br /> 7. No Waiver. By accepting payment of any sum after its due date, <br /> Beneficiary does not waive its right either to require prompt payment when due of all <br /> other sums or declare a default for failure to pay. <br /> Page 25 of 31 <br />