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<br />2.02 Obligations. The term "obligations" is used herein in its broodest and most comprehensive sense and shall
<br />be deemed to include without limit all interest and charges, prepayment charges, late charges and loon fees at any time
<br />accruing or assessed on any of the Secured Obligations.
<br />2.03 Incorporation. All terms of the Secured Obligations are incorporated herein by this reference. All persons
<br />who may have or acquire an interest in the Subject Property shall be deemed to have notice of the terms of the Secured
<br />Obligations and to have notice that if provided therein, (a) the Note or the Building Loan Agreement may permit
<br />borrowing, repayment and re- borrowing, and (b) the rale of interest on one or more Secured Obligations may vory from
<br />time to time.
<br />due.
<br />ARTICLE III. ASSIGNMENT OF RENTS
<br />3.01 Assignment. Trustor irrevocably assigns to Beneficiary the rents, issues and profits of the Subject Property for
<br />the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Benef iciory any duty
<br />to produce rents from the Subject Property, or cause Beneficiary to be (a) a "mortgagee in possession" for any purpose; (b)
<br />responsible for performing any of the obligations of the lessor under ony lease; or (c) responsible for any waste committed by
<br />lessees or any other parties, for any dangerous or defective condition of the Subject Property, or for any negligence in the
<br />management, upkeep, repair or control of the Subject Property. This is an absolute assignment, not an assignment for security
<br />only, and Beneficiary's right to rents, issues and profits is not contingent upon, and may be exercised without possession of,
<br />the Subject Property.
<br />3.02 License. Beneficiary confers upon Trustor o license ( "License ") to collect and retain the rents, issues and profits
<br />of the Subject Property as they become due and payable, until the occurrence of a Default (hereinafter defined). Upon a
<br />Default, the License shall be automatically revoked and Beneficiary moy collect and retain the rents, issues and profits
<br />without notice and without taking possession of the Subject Property. This right to collect rents, issues and profits shall not
<br />grant to Beneficiary or Trustee the right to possession, except as provided below; and neither said right, nor termination of
<br />the License, shall impose upon Beneficiary or Trustee the duty to produce rents, issues or profits or maintain all or ony port of
<br />the Subject Property.
<br />3.03 Advance Rents: Consent to Leasing. Trustor shall not accept any deposit or prepayment of rental or lease
<br />payment in excess of one (1) month in advance without Beneficiary's prior written consent.Trustor agrees not to lease all or
<br />ony part of the Subject Property, and not to enter into an agreement providing for the management, leasing or operation of
<br />the Property except as provided in the Building Loan Agreement without the prior written consent of Beneficiary.
<br />3.04 Application of Rents. Beneficiary, in its sole discretion, may apply or require the applicotion of ony rents, issues
<br />or profits collected to the payment of ony one or more of the Secured Obligations in such order as Beneficiary may elect.
<br />ARTICLE IV. FIXTURE FILING
<br />4.01 Collateral; Fixture Filing. Trustor hos granted Beneficiary a security interest in and to the following described
<br />property ( "Collateral "):
<br />All goods, all building materials, fixtures, equipment, work in process and other personal property to be in-
<br />corporated into the Subject Property; all goods, materials, supplies, fixtures, equipment, machinery, furniture
<br />and furnishings, signs and other personal property now or hereafter appropriated for use on the Subject
<br />Property, whether stored on the Subject Property or elsewhere, used or to be used in connection with the
<br />Subject Property, and all replacements and accretions thereto, some of which may become fixtures on the
<br />Subject Property.
<br />This Deed of Trust is a "construction mortgage" and constitutes o fixture filing under Sections 9313 and 9402(6) of the
<br />California Uniform Commercial Code, as amended or recodified from time to time, but nothing herein shall be deemed to
<br />create o security interest in any Collateral which is not o fixture.
<br />ARTICLE VI. RIGHTS AND DUTIES OF THE PARTIES
<br />5.01 Title. Trustor warrants that, except as disclosed to Beneficiary in a writing which refers to this warranty, Trustor
<br />lawfully possesses and holds fee simple title to the Subject Property without limitation on the right to encumber, and that this
<br />Deed of Trust is a first and prior lien on the Subject Property.
<br />5.02 Taxes and Assessments. Subject to Trustor's rights to contest payment of taxes as may be provided in the
<br />Building Loon Agreement, Trustor shall pay prior to delinquency all taxes, assessments, levies and charges imposed by any
<br />public or quasi - public authority or utility company which are or which may become a lien upon the Subject Property or any
<br />interest therein. Trustor shall also pay prior to delinquency all taxes, assessments, levies and charges imposed by any public
<br />authority upon Beneficiary by reason of its interest in ony Secured Obligation or in the Subject Property, or by reason of ony
<br />payment mode to Beneficiary pursuant to any Secured Obligation; but Trustor shall have no obligation to pay taxes which
<br />moy be imposed from time to time upon Beneficiary and which are measured by and imposed upon Beneficiary's net in-
<br />come.
<br />5.03 Performance of Secured Obligations. Trustor shall promptly pay and perform each Secured Obligation when
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