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<br />200610128
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<br />11. Events of Default. Any of the following events shall be deemed an event of default hereunder:
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<br />a. Default shall be made in the payment of any instaJlment of principal or interest or any other
<br />sum secured hereby when due; or
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<br />b. Trustor shall file a voluntary petition in bankruptcy or shall be adjudicated as bankrupt or
<br />insolvent, or shall file any petition or answer seeking or acquiescing in any reorganization,
<br />similar relief for itself under any present or future Federal, State or other statute, law or
<br />regulation relating to bankruptcy, insolvency or other relief for debtors; or shall seek or
<br />consent to or acquiesce in the appointment of any trustee, receiver or liquidator of Trustor
<br />or of all or any part ofthe Trust Estate, or of any or aJl ofthe royalties, revenues, rents, issues
<br />or profits thereof, or shall make any general assignment for the benefit of creditors, or shall
<br />admit in writing its inability to pay its debts generally as they become due; or
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<br />c. A court of competent jurisdiction shall enter an order, judgment or decree approving a
<br />petition filed against Trustor seeking any reorganization, dissolution or similar relief under
<br />any present or future Federal, State or other statute, law or regulation relating to bankruptcy,
<br />insolvency or other relief for debtors, and such order, judgment or decree shall remain
<br />unvacated and unstayed for an aggregate of sixty (60) days (whether or not consecutive) from
<br />the first date of entry thereof; or any trustee, receiver or liquidator or Trustor or of all or any
<br />part of the Trust Estate, or of any or aJl of the royalties, revenues, rents, issues or profits
<br />thereof, shall be appointed without the consent or acquiescence of Trustor and such
<br />appointment shall remain unvacated and unstayed for an aggregate of sixty (60) days
<br />(whether or not consecutive); or
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<br />d. A writ of execution or attachment or any similar process shall be entered against Trustor
<br />which shall become a lien on the Trust Estate or any portion thereof or interest therein and
<br />such execution, attachment or similar process of judgment is not released, bonded, satisfied,
<br />vacated or stayed within sixty (60) days after its entry or levy; or
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<br />c. There has occurred a breach of or default under any term, covenant, agreement, condition,
<br />provision, representation or warranty contained in any ofthe Loan Instruments; which breach
<br />or default continues after notice of said breach or default is given to Trustor as provided
<br />herein.
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<br />f. Trustor has conveyed, assigned or transferred Trustor's interest in the property during the
<br />term of the Note secured hereby without the express written consent of Beneficiary.
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<br />12. Acceleration Upon Default. Additional Remedies. In the event of any event of default Beneficiary
<br />may declare all indebtedness secured hereby to be due and payable and the same shall thereupon become due and payable
<br />without any presentment, demand, protest or notice of any kind. Thereafter Beneficiary may:
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<br />(a) Either in person or by agent, with or without bringing any action or proceeding, or by a
<br />receiver appointed by a court and without regard to the adequacy of its security, enter upon
<br />and take possession of the Trust Estate, or any part thereof, in its own name or in the name
<br />of Trustee, and do any acts which it deems necessary or desirable to preserve the value,
<br />marketability or rentability ofthe Trust Estate, or any part thereof or interest therein, increase
<br />the income therefrom or protect the security thereof and, with or without taking possession
<br />ofthe Trust Estate, sue for or otherwise collect the rents, issues and profits thereof, including
<br />those past due and unpaid, and apply the same, less costs and expenses of operation and
<br />collection including attorneys' fees, and advances upon any indebtedness secured hereby, all
<br />in such order as Beneficiary may determine. The entering upon and taking possession ofthe
<br />Trust Estate, the collection of such rents, issues and profits and the application thereof as
<br />aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any
<br />act done in response to such default or pursuant to such notice of default and,
<br />notwithstanding the continuance in possession of the Trust Estate or the collection, receipt
<br />and application of rents, issues or profits, Trustee or Beneficiary shall be entitled to exercise
<br />every right provided for in any of the Loan Instruments or by law upon occurrence of any
<br />event of default, including the right to exercise the power of sale;
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<br />(b) Commence an action to foreclose this Trust Deed as a mortgage, appoint a receiver, or
<br />specifically enforce any of the covenants hereof;
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<br />(c) Deliver to Trustee a written declaration of default and demand for sale, and a written notice
<br />of default and election to cause Trustor's interest in the Trust Estate to be sold, which notice
<br />Trustee shall cause to be duly filed for record in the Official Records ofthe County in which
<br />the Trust Estate is located.
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<br />13. Foreclosure by Power of Sale. Should Beneficiary elect to foreclose by exercise of the power of
<br />sale herein contained, Beneficiary shall notify Trustee and shall deposit with Trustee this Trust Deed and the Note and
<br />such receipts and evidence of expenditures made and secured hereby as Trustee may require.
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<br />(a) Upon receipt of such notice from Beneficiary, Trustee shall cause to be recorded, published
<br />and delivered to Trustor such Notice of Default and Election to Sell as then required by law
<br />and by this Trust Deed. Trustee shall, without demand on Trustor, after lapse or such time
<br />as may then be required by law and after recordation of such Notice of Default and after
<br />Notice of Sale having been given as required by law, sell the Trust Estate at the time and
<br />place of sale fixed by it in such Notice of Sale, either as a whole, or in separate lots or parcels
<br />or items as Trustee shall deem expedient, and in such order as it may detennine, at public
<br />auction to the highest bidder for cash in lawful money of the United States payable at the
<br />time of sale. Trustee shall deliver to such purchaser or purchasers thereof its good and
<br />sufficient deed or deeds conveying the property so sold, but without any covenant or
<br />warranty, express or implied. The recitals in such deed of any matters or facts shall be
<br />conclusive proof of the truthfulness thereof. Any person, including, without limitation,
<br />Trustor, Trustee or Beneficiary, may purchase at such sale and Trustor hereby covenants to
<br />warrant and defend the title to such purchaser or purchasers.
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