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200501885 5.16 CONSTRUCTION LOAN PROVISIONS. Grantor agrees to comply with the covenants and conditions of the Loan Agreement, if any, which is hereby incorporated by reference in and made a part of this Deed of Trust. All advances made by Beneficiary pursuant to the Loan Agreement shall be indebtedness of Grantor secured by this Deed of Trust, and such advances may be obligatory as provided in the Loan Agreement. All sums disbursed by Beneficiary prior to completion of the Improvements to protect the security of this Deed of Trust up to the principal amount of the Note shall be treated as disbursements pursuant to the Loan Agreement. All such sums shall bear interest in accordance with the provisions of the Note and the Loan Agreement. From time to time, as Beneficiary deems necessary to protect Beneficiary's interest after an event of default which continues after expiration of any applicable notice or cure period, Grantor shall, upon request of Beneficiary, execute and deliver to Beneficiary, in such form as Beneficiary shall direct, assignments of any and all rights or claims which relate to the construction of the Subject Property and which Grantor may have against any party supplying or who has supplied labor, materials, or services in connection with construction of the Subject Property. In case of breach by Grantor of the covenants and conditions of the Loan Agreement, Beneficiary, at Beneficiary's option, with or without entry upon the Subject Property, (a) may invoke any of the rights or remedies provided in the Loan Agreement; (b) may accelerate the sums secured by this Deed of Trust and invoke those remedies provided herein; or (c) may do both. If, after the commencement of amortization of the Note, if any, the Note and this Deed of Trust are sold by Beneficiary, from and after such sale the Loan Agreement shall cease to be a part of this Deed of Trust and Grantor shall not assert any right of setoff, counterclaim, or other claim or defense arising out of or in connection with the Loan Agreement against the obligations of the Note and this Deed of Trust. 17 #1060655 v4