AZ vs. CA:03 California Exhibits, Vol III; Nos. 114-150

page 17

-17- taxes, assessments and government charges levied or imposed upon the property and franchises hereby conveyed, the lien of which would be prior to the lien of these presents so that the priority of this Deed of Trust shall be duly preserved; that it will do all lawful and proper acts necessary to the preservation of the rights and franchises granted to it and hereby conveyed. Third. The parties hereto covenant, agree and declare that the above described land, corporation stock, property and franchises by this indenture granted and conveyed are to be held by Trustee its successors and assigns upon and for the following trusts, uses and purposes: Article I. Until default shall be made by the Company in the payment of principal or interest when due or some part of either principal or interest and such default shall continue for six months after demand of such payment in writing by the Trustee, the Company shall be suffered and permitted to possess, manage, operate and use the land, property and franchises hereby conveyed and to take and use the income, rents and profits, except as otherwise herein provide; and that, until such default the Company shall vote the stock of the Mexican Company at all meetings of said Company at which the same can be voted, or, in the event that, for any reason the Company shall be prevented from voting said stock, or shall not deem it expedient or proper to vote said stock, then so long as the Company be not in default as herein provided, it shall have the power to direct the Trustee to vote said stock in such manner, as it, the Company, may desire, and the Trustee shall comply with such direction; and that until such default the Company may continue to sell the water-stock of said Water Company and of other water companies in California, free from the lien of this conveyance.