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including those past due and unpaid, and apply the same, less costs and expenses of
<br />operation and collection, including reasonable attorneys' fees, to any indebtedness
<br />secured hereby, and in such order as Beneficiary may determine. Beneficiary's right to
<br />the rents, royalties, issues, profits, revenue, income and proceeds of the Property does
<br />not depend upon whether or not Beneficiary takes possession of the Property. The
<br />entering upon and taking possession of the Property, the collection of such rents,
<br />issues, and profits, and the application thereof as aforesaid, shall not cure or waive any
<br />default or notice of default hereunder or invalidate any act done pursuant to such notice.
<br />If an Event of Default occurs while Beneficiary is in possession of all or part of the
<br />Property and/or is collecting and applying Rents as permitted under this Deed of Trust,
<br />Beneficiary, Trustee and any receiver shall nevertheless be entitled to exercise and
<br />invoke every right and remedy afforded any of them under this Deed of Trust and at taw
<br />or in equity, including the right to exercise the power of sale granted hereunder.
<br />Regardless of whether or not Beneficiary, in person or by agent, takes actual
<br />possession of the Land or the Improvements, Beneficiary shall not be deemed to be a
<br />"mortgagee in possession," shall not be responsible for performing any obligation of
<br />Trustor under any Lease, shall not be liable in any manner for the Property, or the use,
<br />occupancy, enjoyment or operation of any part of it, and shall not be responsible for any
<br />waste committed by Trustor, lessees or any third parties, or for dangerous or defective
<br />condition of the Property or any negligence in the management, repair or control of the
<br />Property. Absent Beneficiary's written consent, Trustor shall not accept prepayment of
<br />Rents for any rental period exceeding one month.
<br />4. Security Agreement. Trustor intends this Deed of Trust to create a lien on the
<br />Property, and an absolute assignment of the Rents and Leases, all in favor of
<br />Beneficiary. To the extent that any Property may be or be determined to be personal
<br />property, Trustor as debtor hereby grants to Beneficiary as secured party a security
<br />interest in all such Property to secure payment and performance of the Secured
<br />Obligations. This Deed of Trust constitutes a security agreement under the California
<br />Uniform Commercial Code, as amended or recodified from time to time (the "UCC"),
<br />covering all such Property. To the extent such Property is not real property
<br />encumbered by the lien granted above, and is not absolutely assigned by the
<br />assignment set forth above, Trustor intends that such Property shall constitute
<br />"proceeds, products, offspring, rents, or profits" (as defined in and for the purposes of
<br />Section 552(b) of the United States Bankruptcy Code, as such section may be modified
<br />or supplemented) of the Land and Improvements.
<br />5. Financing Statements. Pursuant to the UCC, Trustor, as debtor, hereby
<br />authorizes Beneficiary, as secured party, to file such financing statements and
<br />amendments thereof and such continuation statements with respect thereto as
<br />Beneficiary may deem appropriate to perfect and preserve Beneficiary's security interest
<br />in the Property and Rents, without requiring any signature or further authorization by
<br />Trustor. If requested by Beneficiary, Trustor shall pay all fees and costs that Beneficiary
<br />may incur in filing such documents in public offices and in obtaining such record
<br />searches as Beneficiary may reasonably require. If any financing statement or other
<br />document is filed in the records normally pertaining to personal property, that filing shall
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<br />OAK #4818-1017-3530 v2
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