Item A: Beam Development Purchase and Sale Agreement Terms

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Beneficiary may require. Grantor shall give immediate written notice to Beneficiary, and Beneficiary may, but is not obligated to, make proof of loss. At its option, in its own name, Beneficiary shall be entitled to commence, appear in and prosecute any action or proceedings or to make any compromise or settlement in connection with any such loss, which shall be binding on Grantor and Beneficiary jointly. Each insurance carrier is hereby authorized and directed to make payment for such loss to Grantor. Beneficiary's right to payment of insurance proceeds shall exist whether or not any such loss results in any impairment to the security of Beneficiary. The payment to Beneficiary of such insurance proceeds shall not cure or waive any default or notice of default hereunder. Notwithstanding such Total Loss or Partial Loss, all payments under the Note and the other Loan Documents shall be made without reduction, modification or interruption and all applicable terms and conditions of this Deed of Trust shall be applicable to Grantor without modification or interruption. (b)In the event of any loss of 65 percent or more of the full replacement value of the then Premises and Collateral not previously released from this Deed of Trust (a "Total Loss"), the proceeds received of any policy of insurance shall be paid directly to Beneficiary and applied against the outstanding balance of principal, interest and other charges owing (regardless of whether then payable) under the Note, the other Loan Documents and this Deed of Trust. Should said proceeds exceed such balance owing, any such excess shall be paid to Grantor. Should said proceeds be less than such balance owing, the deficiency shall be paid by Grantor to Beneficiary within 60 days of demand by Beneficiary. (c)In the event of any loss under any of said policies of insurance covering the Premises and the Collateral where such loss is less than 65 percent of the full replacement value of the then Premises and Collateral not previously released from this Deed of Trust (a "Partial Loss"), the proceeds received from any policy of insurance shall be paid directly to Beneficiary and applied against the outstanding balance of principal, interest and other charges owing (regardless of whether then payable) under the Note, the other Loan Documents and this Deed of Trust, provided, however, if (i) Grantor desires to restore the Premises and Collateral to its prior good condition, (ii) Grantor is not in default hereunder, (iii) said amount owing will not be more than 75 percent of the value of the Premises and Collateral as restored (as may be determined by independent appraisal satisfactory to Beneficiary completed at Grantor's expense), and (iv) any funds in excess of insurance proceeds necessary to complete the restoration work in accordance with plans and specifications and budgets as approved by Beneficiary shall have been deposited by Grantor with Beneficiary, then the insurance proceeds shall be held by Beneficiary for restoration of the Premises and the Collateral. Beneficiary shall disburse so much of the proceeds to Grantor as restoration progresses, equal to the cost of said restoration, and subject to reasonable conditions, including the right of Beneficiary to withhold up to 10 percent of said amount until completion, and the expiration of the period within which mechanic's and materialmen's liens may be filed or until the receipt of satisfactory evidence that no liens exist. Should the insurance proceeds be less than the sum required to complete said restoration, Grantor shall deposit the difference with Beneficiary, and its failure to do so shall constitute default hereunder. Upon payment of such sum to Beneficiary, the same shall be held by Beneficiary in a mutually acceptable interest-bearing account until disbursement. Should said proceeds, including the interest payable thereon, exceed the cost of completing said restoration, any balance remaining shall be paid to Grantor. Grantor shall pay to Beneficiary any reasonable - 48 -