Document:

Promissory Note

 EXHIBIT 10.55 
 PROMISSORY NOTE SECURED BY DEED OF TRUST 
 (SENIOR LOAN) 

 

			
	 $35,750,000.00
	 	September 13, 2012

 CAMERON PARK SENIOR LIVING DELAWARE, LLC, a Delaware limited liability company
(“Borrower”), FOR VALUE RECEIVED, promises to pay to KBS FINANCE LLC, a Delaware limited liability company (“Lender”), at such place as the holder hereof may from time to time designate in writing, the principal sum
of Thirty Five Million Seven Hundred Fifty Thousand and No/100 DOLLARS ($35,750,000.00) or so much thereof as may from time to time have been advanced to Borrower under this Promissory Note Secured by Deed of Trust (Senior Loan) (hereinafter
referred to as this “Note”, which term shall include all extensions, renewals, modifications, consolidations, substitutions, replacements, restatements and increases thereof) with interest on the outstanding principal amount to be
computed and paid in accordance with the terms of this Note and the Loan Agreement (defined below). All capitalized terms not defined herein shall have the respective meanings given to them in the Loan Agreement. 

DEFINITIONS 
 For the purpose of this Note: 
 “Accounts” shall
have the meaning ascribed to it in the Loan Agreement (defined below). 
 “Actual Maturity”
shall mean the date upon which the entire unpaid indebtedness evidenced by this Note becomes due and payable in accordance with the terms hereof and the terms of the other Loan Documents (whether at Stated Maturity or upon acceleration following an
Event of Default, voluntary prepayment or otherwise). 
 “Agent” shall have the meaning
ascribed to it in the Loan Agreement. 
 “Bankruptcy Proceeding” shall have the meaning
ascribed to it in the Loan Agreement. 
 “Base Interest” shall mean the interest accruing on
the principal balance of the Loan outstanding under this Note from time to time at the then applicable Base Note Rate. 
 “Base Note Rate” shall mean the LIBOR Rate plus five hundred (500) basis points for the applicable interest period. 

“Borrower” shall mean CAMERON PARK SENIOR LIVING DELAWARE, LLC, a Delaware limited liability company,
and its successors and assigns. 
 “Default Interest Rate” shall mean interest on any overdue
amount outstanding hereunder from time to time at the rate of five percent (5%) plus the Note Rate. 

 “Deferred Interest” shall mean the interest accruing on the
principal balance of the Loan outstanding under this Note from time to time at the then applicable Deferred Interest Rate and payable at Actual Maturity in accordance with Section 1(c) below. 

“Deferred Note Rate” shall mean with respect to the applicable interest period (a) the Note Rate
minus (b) the Base Note Rate. For example, during the first twelve (12) months of the Term (and assuming no Event of Default exists), if the LIBOR Rate is one percent (1%), the Note Rate would be eleven percent (11%), the Base Note
Rate would be six percent (6%), and the Deferred Note Rate would be five percent (5%). 
 “Event of
Default” shall have the meaning ascribed to it in Section 4(a) hereof. 
 “Exit
Fee” shall mean a fee equal to Four Million and No/100 Dollars ($4,000,000.00) payable in accordance with Section 2(a) below. 
 “First Payment Date” shall mean November 1, 2012. 
 “Lender” shall mean KBS FINANCE LLC, a Delaware limited liability company, or its successors or assigns. 

“LIBOR Rate” shall mean the 30-day London Interbank Offered Rate as reported in The Wall Street
Journal or similar publication, but in no event shall the then applicable LIBOR Rate be less than one percent (1%). 
 “Loan” shall mean the loan evidenced by this Note. 
 “Loan Agreement” shall mean that certain Loan Agreement, by and among Borrower, Agent and the Lenders dated as of even date herewith, as the same may hereafter be amended, modified and
restated from time to time. 
 “Loan Documents” shall mean this Note, the Loan Agreement, the
Mortgage, the Guaranty, the Environmental Indemnity, the Clearing Account Agreement, the Cash Management Agreement, Pledge and Assignment of Reserve Accounts, the Deposit Account Control Agreement, the Depository Bank Agreement, the Consent and
Subordination of Manager (each as defined in the Loan Agreement) and all other documents executed in connection with the Loan, each as the same may hereafter be amended, modified and restated from time to time. 

“Mortgage” shall have the meaning ascribed to it in the Loan Agreement. 

“Note Rate” shall mean the LIBOR Rate plus the Spread for the applicable interest period. The Note Rate
shall be adjusted by Lender every thirty (30) days pursuant to Section 1(d) based on the then applicable LIBOR Rate. 
 “Payment Date” shall be the first day of every calendar month (or if any such date is not a Business Day, the first Business Day immediately following such date). 

 “Permitted Prepayment Date” shall mean the date that is the
earlier to occur of (a) the date that is twelve (12) months after the date on which Lender sells the Loan to an unrelated third party, and (b) fifteen (15) months after the date of this Note. 

“Property” shall have the meaning ascribed to it in the Loan Agreement. 

“Spread” shall mean (a) one thousand (1000) basis points during the first
twelve (12) months of the Term, (b) One thousand two hundred (1200) basis points during the thirteenth
(13th) through twenty-fourth (24th) month of the Term, and (c) one thousand seven hundred
(1700) basis points during the twenty-fifth
(25th) through thirty-sixth (36th) month of the Term. 

“Stated Maturity” shall mean October 1, 2015. 

“Term” shall mean the period beginning on the date of this Note and ending at Actual Maturity.

 All capitalized terms not otherwise defined in this Note shall have the meanings ascribed to them in the Loan
Agreement. 
 1.           Payments. 

(a)         Interest.   From the date hereof to and including
the date of Actual Maturity, the principal balance of this Note outstanding from time to time shall bear interest at the Note Rate. A portion of accrued interest shall be payable by Borrower on a current basis (referred to as Base Interest) and a
portion of accrued interest shall be deferred until Actual Maturity (referred to as Deferred Interest) as described in Sections 1(b) and 1(c) below. 
 (b)         Base Interest (Paid Monthly).     Beginning on the First Payment Date and continuing through and including the Stated
Maturity, Borrower shall make monthly payments of Base Interest, in arrears, on each Payment Date. On the day of the Closing, Borrower shall make a payment of Base Interest for the period from the date of this Note as set forth on Page 1 of this
Note through the First Payment Date. 
 (c)         Deferred
Interest.   At Actual Maturity, Borrower shall make a payment of all Deferred Interest that has accrued (but Deferred Interest shall not be compounded) throughout the Term. 

(d)         Actual/360 Interest Calculation.   All interest due
shall be computed on the basis of a 360 day year, and the amount of Base Interest payable each month pursuant to Section 1(b) will be based on the actual number of calendar days during such month and, for the purposes of calculating Base
Interest and Deferred Interest, the amount of Base Interest and Deferred Interest shall be calculated by multiplying the unpaid principal balance of this Note by the applicable interest rate, dividing the product by 360 and multiplying the quotient
by the actual number of days elapsed during the month. Borrower understands that the amount allocated to interest for each month will vary depending on the actual number of calendar days during such month. 

(e)         Determination of Note Rate, Base Note Rate, Deferred Note
Rate.   Adjustments to the Note Rate, Base Note Rate or Deferred Note Rate, as applicable shall be determined based 

 
on the LIBOR Rate published five (5) Business Days prior to the applicable Payment Date (in the event no such LIBOR Rate is published in The Wall Street Journal on such date, then the next
immediately preceding date on which the LIBOR Rate is published by The Wall Street Journal). In the event the LIBOR Rate ceases to be published or is otherwise unascertainable, Agent shall select a comparable reference rate as the new index for
purposes of calculating the Note Rate, the Base Note Rate or the Deferred Note Rate, as applicable, and Agent shall provide prompt written notice to Borrower of its selected reference rate. Agent’s determination of the Note Rate, Base Note Rate
or Deferred Note Rate, as applicable, shall be binding and conclusive. 

(f)          Actual Maturity.   The entire outstanding
principal amount advanced hereunder together with all accrued and unpaid interest, including Base Interest, Deferred Interest, the Exit Fee and all other charges due hereunder shall be due and payable at Actual Maturity. 

(g)          Application of Payments.   All payments made
on this Note shall be applied first to reasonable and actual third party costs and expenses (including reasonable attorneys’ fees) payable with respect to any Event of Default, then to the Exit Fee, then to Base Interest currently due, then to
Deferred Interest and principal under this Note. 
 (h)         
Form of Payments.   Payments hereunder shall be made in lawful money of the United States of America by wire transfer of immediately available funds, payable to the order of Agent, for the benefit of Lenders, such wire transfer to
be sent in accordance with the wire instructions provided by Agent from time to time. 

2.          Prepayment. 

(a)          Voluntary Prepayment.   After the Permitted
Prepayment Date, Borrower shall have the right to prepay in whole (but not in part), all sums due hereunder and under the Loan Documents on a Payment Date, provided that: 

(i)        Agent shall have received at least thirty (30) days prior
written notice of such prepayment; 
 (ii)       No Event of Default is
continuing; and 
 (iii)       Borrower shall pay to Lender, in addition to
all other amounts owing under this Note and the Loan Documents, an amount equal to the Exit Fee. 

(b)          Acceleration.   Except as specified in
Section 2(a) or in connection with the application of casualty or condemnation proceeds pursuant to the Loan Documents, Borrower shall not make any prepayment of principal, in whole or in part, before Stated Maturity. If the indebtedness
evidenced hereby is prepaid in violation of this Section 2(b) or as a result of acceleration after an Event of Default, Borrower shall be obligated to pay to Lender, all amounts owing under this Note and the other Loan Documents,
including, without limitation, the Exit Fee, unpaid Base Interest, Deferred Interest and any other amounts owing by Borrower. 

3.          Late Charge.   In the event any amount of the Base
Interest due with respect to the Loan remains unpaid for more than five (5) days after the date the same becomes due and payable (without regard to any applicable notice or cure period), Borrower shall immediately, without

 
notice, pay Lender a late charge of five percent (5%) of the amount of the payment due. Such charge shall be payable to Lender as additional interest and not as a penalty. 

4.         Default. 

(a)          Event of Default.   An “Event of
Default” shall occur hereunder in the event of the following: 

(i)        the failure of Borrower to make the full and punctual payment of any
installment of principal and/or interest due hereunder or any other sum due and payable hereunder or under the other Loan Documents, which failure is not cured on or before the fifth (5th) day after the date such payment was due; or 

(ii)       the failure of Borrower to perform and observe any covenant, obligation,
agreement or undertaking hereunder (not otherwise referred to in this Section 4(a)) within twenty (20) days following written notice thereof from Lender; or 

(iii)      the occurrence of an Event of Default under the Loan Agreement, the Mortgage or
any of the other Loan Documents, which has not been cured within the time permitted thereunder. 

(b)          Acceleration. Lender may, by notice to Borrower at any
time during the existence of an Event of Default, declare immediately due and payable the entire principal amount outstanding hereunder, together with all interest and other charges due hereunder, including, without limitation, all Base Interest and
Deferred Interest. 
 (c)          Default Interest Rate.
After an Event of Default, the Default Interest Rate shall apply in place of the Note Rate to all amounts outstanding under the Loan. Such default interest shall be compounded on the monthly anniversary of such Event of Default until paid in full.

 (d)          Remedies. The remedies of Lender as provided
herein, or in the Loan Documents, or at law or in equity shall be cumulative and concurrent, and may be pursued singly, successively, or together at the sole discretion of Lender, and may be exercised as often as occasion therefor shall occur. The
failure at any time to exercise any right or remedy shall not constitute a waiver of the right to exercise the right or remedy at any other time. 
 5.         Security.     Borrower’s obligations under this Note are secured by, among other instruments, the Mortgage and the other
Loan Documents. 
 6.         Waiver.     Except for notices
which are required by the express terms of the Loan Documents, presentment for payment, demand, notice of dishonor, protest, and notice of protest, stay of execution and all other defenses to payment generally are hereby waived by Borrower. No
extension or indulgence or release of collateral granted from time to time shall be construed as a novation of this Note or as a reinstatement of the indebtedness evidenced hereby or as a waiver of the rights of Lender herein. 

 7.          Exculpation. 

(a)          Borrower Exculpation.  The provisions of this
Note are subject to the provisions of Section 21 of the Loan Agreement. 

(b)          Lender Exculpation.  Notwithstanding anything
to the contrary contained in this Note, neither Lender nor any present or future shareholder, director, officer, member or partner of Lender or of any entity which is now or hereafter a shareholder, director, officer, member or partner of Lender (or
of any entity which is now or hereafter a shareholder, director, officer, member or partner of a shareholder, director, officer, member or partner of Lender) shall have any personal liability, directly or indirectly, under or in connection with this
Note or any agreement made or entered into under or in connection with the provisions of this Note, or any amendment or amendments to any of the foregoing made at any time or times, heretofore or hereafter, and Borrower hereby forever and
irrevocably waives and releases any and all such personal liability. In addition, neither Lender nor any successor or assign of Lender shall have at any time or times hereafter any personal liability, directly or indirectly, under or in connection
with or secured by any agreement, lease, instrument, encumbrance, claim or right affecting or relating to the Property or to which the Property is now or hereafter subject. The limitation of liability provided in this paragraph is in addition to,
and not in limitation of, any limitation on liability applicable to Lender provided by law or by any other contract, agreement or instrument. 
 8.          Governing Law; Severability; Usury. 
 (a)          Governing Law.  This Note shall be governed by, and construed in accordance with, the substantive law of the State of California
without regard to the application of choice of law principles, and Borrower hereby consents to the personal jurisdiction of the state courts of the State of California and of the United States District Court for the Central District of California in
any action that may be commenced by Agent or Lenders to enforce its rights hereunder or under the Loan Documents. 
 (b)          Severability.  If any provision of this Note is held to be invalid or unenforceable by a court of competent jurisdiction, the
other provisions of this Note shall remain in full force and effect, and shall be liberally construed in favor of Lender. 
 (c)          Usury.  It is the intention of Borrower and Lender to conform strictly to applicable laws governing the maximum rate of interest
and other charges payable, including without limitation, usury laws. Accordingly, if the transactions contemplated hereby would violate any such applicable law, then, in that event, notwithstanding anything to the contrary in any Loan Document, it
is agreed as follows: (i) the aggregate of all consideration which constitutes interest under applicable law that is taken, reserved, contracted for, charged or received under any Loan Document or otherwise in connection with the Loan shall
under no circumstances exceed the maximum amount of interest allowed by applicable law, and any excess shall be credited to principal by Lender (or if the Loan shall have been paid in full, refunded to Borrower); and (ii) in the event that
maturity of the Loan is accelerated by reason of an election by Lender resulting from an Event of Default hereunder or otherwise, or in the event of any required or permitted prepayment, then such consideration that constitutes interest may never
include more than the maximum amount of interest allowed by applicable law, and any interest in excess thereof, if 

 
any, provided for in the Loan Documents or otherwise shall be canceled automatically as of the date of such acceleration or prepayment and, if theretofore prepaid, shall be credited to principal
(or if the principal portion of the Loan and any other amounts not constituting interest shall have been paid in full, refunded to Borrower.) 
 9.          Notices. 
 (a)          Any notice, election, communication, request, approval or other document or demand required or permitted under this Note shall be in writing and
transmitted to the applicable party either by receipted courier service, or by the United States Postal Service, first class registered or certified mail, postage prepaid, return receipt requested, or by electronic facsimile transmission
(“Fax”) at the address or addresses indicated for such party below (and/or to such other address as such party may from time to time by written notice designate to the other): 

To Borrower, as follows: 
 Cameron Park Senior Living Delaware, LLC 
 2451 Bayview Avenue

 Carmel, California 93923 

Attention:  Erik N. Pilegaard 

Fax:  (831) 624-4942 

With a copy to: 
 Larry L. Rader 
 3029 Merrick San Way 

Carmichael, California 95608 
 Fax:  (916) 480-2966 
 To Lender, as follows:

 c/o KBS Capital Advisors LLC 

620 Newport Center Drive, Suite 1300 

Newport Beach, CA 92660 
 Attention:  Brian Ragsdale 
 Fax:  949-417-6518

 and 
 c/o KBS Capital Advisors LLC 
 620 Newport Center Drive, Suite 1300

 Newport Beach, CA 92660 

Attention:  Jeff Rader 
 Fax:  949-417-6518 

 With a copy to: 

Greenberg Traurig, LLP 
 3161 Michelson Drive, Suite 1000 
 Irvine, California 92612

 Attention:  L. Bruce Fischer and Scott A. Morehouse 

Fax:  949-732-6501 
 and shall be deemed delivered and received: (A) if delivery is made or Fax transmission completed before 5:00 p.m. recipient’s local time on a Business Day, or if tendered for delivery between
9:00 a.m. and 5:00 p.m. recipient’s local time on a Business Day and refused, then on the date of such actual or attempted delivery or completed transmission, as evidenced by postal or courier receipt or by the transmission log sheet generated
by the sending Fax machine; and otherwise (B) on the Business Day next following the date of actual delivery or completed transmission; provided, however, that any communication by Fax to be effective must be confirmed within three
(3) Business Days after transmission by duplicate notice delivered as otherwise provided herein. 

10.        Miscellaneous. 

(a)          Costs.   If, and as often as, this Note is
referred to an attorney for the collection of any sum payable hereunder, or to defend or enforce any of Lender’s rights hereunder, or to commence an action, cross-claim, third-party claim or counterclaim by Lender against Borrower relating to
this Note, Borrower agrees to pay to Lender all actual third party costs and expenses incurred in connection therewith including reasonable attorney’s fees (including such fees incurred in appellate, bankruptcy or insolvency proceedings), with
or without the institution of any action or proceeding, and in addition, all costs, disbursements and allowances provided by law. 
 (b)          Modification.   Neither this Note nor any of the terms hereof may be terminated, amended, supplemented, waived or modified
orally, but only by an instrument in writing executed by the party against which enforcement of the termination, amendment, supplement, waiver or modification is sought. 

(c)          Successors.   As used herein, the terms
“Borrower” and “Lender” shall be deemed to include their respective successors and assigns whether by voluntary action of the parties or by operation of law. All of the rights, privileges and obligations hereof shall inure to the
benefit of and bind such successors and assigns. 
 (d)         
Intentionally Omitted. 
 (e)          Loan
Agreement.   To the extent not expressly stated otherwise herein, all of the terms and conditions of the Loan Agreement shall survive the execution of this Note and shall remain in full force and effect; provided, however, to the
extent of any irreconcilable conflict between the terms and conditions of the Loan Agreement and this Note, the terms and provisions of this Note shall govern and control. 

 (f)          No
Waiver.   No failure or delay by Lender in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or
further exercise thereof or the exercise of any other right, power or privilege. Without limiting the foregoing, no disbursement by Lender after a default by Borrower hereunder shall constitute a waiver of any of Lender’s remedies established
or referred to hereunder or shall obligate Lender to make any further disbursement. No waiver, consent or approval of any kind by Lender shall be effective unless (and it shall be effective only to the extent) expressly set out in a writing signed
and delivered by Lender. No notice to or demand on Borrower in any case shall entitle Borrower to any other notice or demand in similar or other circumstances, nor shall such notice or demand constitute a waiver of the rights of Lender to any other
or further actions. In its sole discretion, Lender may, at any time and from time to time, waive any one or more of the requirements contained herein, but such waiver in any instance or under any particular circumstances shall not be considered a
waiver of such requirement or requirements in any other instance or under any other circumstance. 

(g)          Waiver of Jury Trial.   TO THE EXTENT NOW OR
HEREAFTER PERMITTED BY APPLICABLE LAW, BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT THAT BORROWER MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION ARISING IN ANY WAY IN CONNECTION WITH THIS NOTE OR ANY OF THE OTHER LOAN
DOCUMENTS, OR ANY OTHER STATEMENTS OR ACTIONS OF LENDER IN CONNECTION WITH THE LOAN. BORROWER ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR LENDER TO DISBURSE THE MONEY EVIDENCED BY THIS NOTE AND TO ENTER INTO THE OTHER LOAN DOCUMENTS.

 (h)          Withdrawals From Accounts.  
Borrower hereby agrees that Lender shall have the right to withdraw from the Accounts, if any, to the extent permitted by the Account Agreements, any amount due Lender hereunder or under any other Loan Documents at the time such payment is due from
Borrower. The insufficiency of any funds in the Accounts shall not in any way relieve Borrower from its obligations hereunder or under any other Loan Document and Borrower shall pay to Lender, from other sources, all amounts due to Lender hereunder
or under the other Loan Documents, at the time such payment is due. 

(i)          Sole and Absolute Discretion.   Any option,
consent, approval, discretion or similar right of Lender set forth in this Note may be exercised by Lender in its sole, absolute and unreviewable discretion, unless the provisions of this Note specifically require such option, consent, approval,
discretion or similar right to be exercised in Lender’s reasonable discretion. 

(j)          Joint and Several Liability.   If this Note is
executed by more than one person or entity as Borrower, the obligations of each such person or entity shall be joint and several. No person or entity shall be a mere accommodation maker, but each shall be primarily and directly liable hereunder.

 (k)          This Note may not at any time be endorsed to, or
made to the order of, bearer, nor may the Note be endorsed in blank. 

 (l)          Borrower’s
Waiver of Rights Under California Civil Code Section 2954.10. BY INITIALING BELOW, BORROWER EXPRESSLY WAIVES ANY RIGHT IT MAY HAVE UNDER APPLICABLE LAW TO PREPAY THIS NOTE, IN WHOLE OR IN PART, WITHOUT CHARGE, FEE OR PREMIUM, UPON
ACCELERATION OF THE MATURITY DATE OF THIS NOTE, AND AGREES THAT, IF FOR ANY REASON A PREPAYMENT OF ALL OR ANY PART OF THIS NOTE IS MADE, WHETHER VOLUNTARILY OR FOLLOWING ANY ACCELERATION OF THE MATURITY DATE OF THIS NOTE BY LENDER ON ACCOUNT OF THE
OCCURRENCE OF ANY EVENT OF DEFAULT ARISING FOR ANY REASON, INCLUDING, WITHOUT LIMITATION, AS A RESULT OF ANY PROHIBITED OR RESTRICTED TRANSFER, FURTHER ENCUMBRANCE OR DISPOSITION OF THE PROPERTY OR ANY PART THEREOF SECURING THIS NOTE, OR ANY
PROHIBITED DIRECT OR INDIRECT INTEREST IN BORROWER, THEN BORROWER SHALL BE OBLIGATED TO PAY, CONCURRENTLY WITH SUCH PREPAYMENT, THE EXIT FEE PROVIDED FOR IN THIS NOTE (OR, IN THE EVENT OF PREPAYMENT FOLLOWING ACCELERATION OF THE MATURITY DATE HEREOF
WHEN THIS NOTE IS CLOSED TO PREPAYMENT) AND ANY AND ALL OTHER CHARGES AND FEES DUE UNDER THE LOAN DOCUMENTS. BORROWER HEREBY EXPRESSLY WAIVES ANY RIGHT IT MAY HAVE UNDER CALIFORNIA CIVIL CODE SECTION 2954.10 OR ANY SUCCESSOR STATUTE THEREOF
WITH RESPECT TO THE FOREGOING, AND EXPRESSLY ACKNOWLEDGES AND UNDERSTANDS THAT AGENT AND LENDERS HAS MADE THE LOAN EVIDENCED HEREBY IN RELIANCE UPON SAID AGREEMENTS AND WAIVER OF BORROWER AND THAT AGENT AND LENDERS WOULD NOT HAVE MADE THIS LOAN
WITHOUT SUCH AGREEMENTS AND WAIVER OF BORROWER. BORROWER HEREBY DECLARES THAT AGENT’S AND LENDERS’ AGREEMENT TO MAKE THE LOAN AT THE INTEREST AND FOR THE TERM SET FORTH IN THIS NOTE CONSTITUTES ADEQUATE CONSIDERATION, GIVEN INDIVIDUAL
WEIGHT BY BORROWER, FOR THIS WAIVER AND AGREEMENT. 
  

			
		 	   /s/ Erik N. Pilegaard

		 	Borrower’s initials

 [remainder of this page left intentionally blank] 

 IN WITNESS WHEREOF, the undersigned has duly executed and delivered this
Note as of the date first set forth above. 
  

					
	 BORROWER:
	 	
	
	 CAMERON PARK SENIOR LIVING DELAWARE, LLC,

	 a Delaware limited liability company
	 	
			
	 By:
	 	 /s/ Erik N. Pilegaard
	 	
	 Name:
	 	 Erik N. Pilegaard
	 	
	 Title:
	 	 Authorized Signatory
	 	

  
 11Deed of Trust, Assignment of Leases and Rents Security Agreement

 EXHIBIT 10.56 
 RECORDING REQUESTED BY 
 AND WHEN RECORDED RETURN TO: 

Greenberg Traurig, LLP 
 3161 Michelson Drive,
Suite 1000 
 Irvine, California 92612 

Attention: Scott A. Morehouse, Esq. 
  

 
  

SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY 
 DEED OF TRUST ASSIGNMENT OF LEASES 
 AND RENTS, SECURITY AGREEMENT, FIXTURE FILING

 AND FINANCING STATEMENT 
 BY  
 CAMERON PARK SENIOR LIVING DELAWARE, LLC, a Delaware limited
liability 
 company, 
 as Grantor 
 TO 

LAWYERS TITLE COMPANY, a California corporation, 
 as Trustee 
 FOR THE BENEFIT OF 

KBS FINANCE LLC, a Delaware limited liability company, 
 as Beneficiary 

									
	I.	  	 COVENANTS AND AGREEMENTS OF THE GRANTOR
	  	 	8	  
				
		  	1.1	  	 Recitals and Grant
	  	 	8	  
				
		  	1.2	  	 Payment of Liabilities
	  	 	8	  
				
		  	1.3	  	 Payment of Taxes
	  	 	8	  
				
		  	1.4	  	 Maintenance and Repair
	  	 	8	  
				
		  	1.5	  	 Sales; Liens
	  	 	9	  
				
		  	1.6	  	 Delivery of Documents; Access by Beneficiary
	  	 	9	  
				
		  	1.7	  	 Stamp and Other Taxes
	  	 	10	  
				
		  	1.8	  	 Insurance
	  	 	10	  
				
		  	1.9	  	 Eminent Domain
	  	 	10	  
				
		  	1.10	  	 Governmental Requirements
	  	 	10	  
				
		  	1.11	  	 No Mechanics’ Liens
	  	 	11	  
				
		  	1.12	  	 Continuing Priority
	  	 	11	  
				
		  	1.13	  	 Utilities
	  	 	11	  
				
		  	1.14	  	 Third Party Agreements
	  	 	11	  
				
		  	1.15	  	 Assignment of Leases and Rents and Collections; Future Leases
	  	 	12	  
				
		  	1.16	  	 The Beneficiary’s Performance
	  	 	13	  
				
		  	1.17	  	 Subrogation Rights
	  	 	14	  
				
		  	1.18	  	 Grantor’s Right to Contest
	  	 	14	  
				
		  	1.19	  	 Reserve for Taxes, Assessments and Insurance
	  	 	14	  
				
		  	1.20    	  	 Transfer or Further Encumbrance of the Property
	  	 	14	  
			
	II.	  	 DEFAULT
	  	 	15	  
				
		  	2.1	  	 Loan Documents
	  	 	15	  
				
		  	2.2	  	 Provisions of this Deed of Trust
	  	 	15	  
				
		  	2.3	  	 Sales and Liens
	  	 	15	  
			
	III.    	  	 REMEDIES
	  	 	15	  
				
		  	3.1	  	 Acceleration
	  	 	15	  
				
		  	3.2	  	 Remedies Cumulative
	  	 	15	  
				
		  	3.3	  	 Power of Sale; Judicial Foreclosure; Receiver
	  	 	16	  
				
		  	3.4	  	 Possession of the Premises; Remedies for Leases and Rents
	  	 	18	  
				
		  	3.5	  	 Personal Property
	  	 	19	  
				
		  	3.6	  	 Performance of Third Party Agreements
	  	 	21	  
				
		  	3.7	  	 No Liability on Beneficiary
	  	 	21	  

  
 i 

									
	 IV.    
	  	 GENERAL
	  	 	21	  
				
		  	4.1	  	 Powers of Trustee
	  	 	21	  
				
		  	4.2	  	 Permitted Acts
	  	 	22	  
				
		  	4.3	  	 Indemnification
	  	 	23	  
				
		  	4.4	  	 Obligatory Future Advances
	  	 	23	  
				
		  	4.5	  	 Fixture Filing
	  	 	23	  
				
		  	4.6	  	 Security Agreement
	  	 	24	  
				
		  	4.7	  	 Full Reconveyance
	  	 	24	  
				
		  	4.8	  	 Notices
	  	 	24	  
				
		  	4.9	  	 Place of Organization
	  	 	24	  
				
		  	4.10	  	 Successors; Grantor; Gender
	  	 	24	  
				
		  	4.11	  	 Care by the Beneficiary
	  	 	25	  
				
		  	4.12	  	 Beneficiary Statements
	  	 	25	  
				
		  	4.13	  	 No Waiver; Writing
	  	 	25	  
				
		  	4.14	  	 Governing Law
	  	 	25	  
				
		  	4.15	  	 Attorneys’ Fees
	  	 	25	  
				
		  	4.16	  	 Waiver
	  	 	25	  
				
		  	4.17	  	 JURY TRIAL
	  	 	26	  
				
		  	4.18	  	 No Merger
	  	 	26	  
				
		  	4.19	  	 Time of Essence
	  	 	26	  
				
		  	4.20	  	 No Reliance by Others on the Premises; Single Zoning Lot and Tax Parcel
	  	 	26	  
				
		  	4.21	  	 Future Advances
	  	 	27	  
				
		  	4.22	  	 Beneficiary Not a Joint Venturer or Partner
	  	 	27	  
				
		  	4.23    	  	 Inconsistency With Loan Agreement
	  	 	27	  
			
	 V.
	  	 STATE LAW PROVISIONS
	  	 	27	  
				
		  	5.1	  	 Certain Matters Relating to Collateral Located in the State of California
	  	 	27	  

  
 ii 

					
	 RECORDING REQUESTED
BY
 AND WHEN RECORDED MAIL TO:
  

 
  
  

Greenberg Traurig, LLP
 3161 Michelson Drive, Suite 1000
 Irvine, California 92612

Attention: Scott A. Morehouse, Esq.

 
	 	 	 	 

 DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS  

SECURITY AGREEMENT, FIXTURE FILING AND FINANCING STATEMENT 

ATTENTION COUNTY RECORDER: THIS INSTRUMENT IS INTENDED TO BE EFFECTIVE AS A FINANCING STATEMENT FILED AS A FIXTURE FILING
PURSUANT TO SECTION 9502 OF THE CALIFORNIA COMMERCIAL CODE. PORTIONS OF THE GOODS COMPRISING A PART OF THE MORTGAGED PROPERTY ARE OR ARE TO BECOME FIXTURES RELATED TO THE LAND DESCRIBED IN EXHIBIT A HERETO. THIS INSTRUMENT IS TO BE FILED FOR RECORD
IN THE RECORDS OF THE COUNTY WHERE DEEDS OF TRUST ON REAL PROPERTY ARE RECORDED AND SHOULD BE INDEXED AS BOTH A DEED OF TRUST AND AS A FINANCING STATEMENT COVERING FIXTURES. THE ADDRESSES OF GRANTOR (DEBTOR) AND BENEFICIARY (SECURED PARTY) ARE
SPECIFIED IN THE FIRST PARAGRAPH ON PAGE 1 OF THIS INSTRUMENT. 

 DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS  

SECURITY AGREEMENT, FIXTURE FILING AND FINANCING STATEMENT 

THIS DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT, FIXTURE FILING AND FINANCING STATEMENT (this
“Deed of Trust”) is made as of September 13, 2012, by CAMERON PARK SENIOR LIVING DELAWARE, LLC, a Delaware limited liability company (herein, together with its successors and assigns, the “Grantor”), and
having its address at c/o Cameron Park Senior Living Delware, LLC, 2452 Bayview Avenue, Carmel, California 93923, Attention: Erik N. Pilegaard, to LAWYERS TITLE COMPANY, a California corporation (herein, together with its successors and
substitutes the “Trustee”) for the benefit of KBS FINANCE LLC, a Delaware limited liability company (herein, as Agent for itself and each of the other Lenders (as defined in the hereinafter defined Loan Agreement) together
with its successors and assigns, collectively, the “Beneficiary”) having its address at c/o KBS Capital Advisors LLC, 620 Newport Center Drive, Suite 1300, Newport Beach, California 92660. 

R E C I T A L S 
 A.         Loan Agreement and Promissory Notes.  Pursuant to that certain Loan Agreement (Senior Loan) dated as of even date herewith, by and among
Grantor, Beneficiary and Lenders (herein, as the same may be amended, modified, revised or restated from time to time, is called the “Loan Agreement”), Beneficiary has agreed to make, and Grantor has agreed to take from Beneficiary,
a loan (the “Loan”) in the original principal amount of Thirty Five Million Seven Hundred Fifty Thousand and No/100 Dollars ($35,750,000.00). Such Loan will be made pursuant to the terms and conditions set forth in the Loan
Agreement. The Loan is evidenced by that certain Promissory Note Secured by Deed of Trust (Senior Loan), dated of even date herewith, in the original principal amount of Thirty Five Million Seven Hundred Fifty Thousand and No/100 Dollars
($35,750,000.00) (as the same may be amended, modified or restated from time to time, the “Note” or “Notes”), executed by Grantor in favor of Beneficiary. 

The Loan shall bear interest and be payable as provided in the Notes and shall be due and payable in full on the date set
forth in the Notes, unless accelerated or prepaid pursuant to the terms of the Loan Agreement, the Notes or the other Loan Documents (as defined in the Loan Agreement). 

Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Loan Agreement. 

B.         Loan Documents.  The Loan Agreement, the Notes and any
other documents and instruments executed and delivered in connection with the Loan Agreement, the Notes or as security therefor, including, without limitation, this Deed of Trust, the Guaranty of Non-Recourse Carve-Outs, the Unsecured Environmental
Indemnity Agreement, the Consent and Subordination of Manager, the Pledge and Assignment of Reserve Accounts, the Clearing Account Agreement, the Cash Management Agreement, the Deposit Account Control Agreement, the Depository Bank Agreement, and
the Certificate of No Material Change or Damage (each as defined in the Loan Agreement) and each as the same may be amended, 

 
modified or restated from time to time, are hereinafter collectively referred to as the “Loan Documents”. 

C.         The Liabilities.  As used in this Deed of Trust, the term
“Liabilities” means and includes all of the following: 

(i)      all performance and payment obligations to the Beneficiary arising
under or in connection with the Loan Agreement, the Notes, this Deed of Trust or any of the other Loan Documents (as such term is defined in the Notes) other than the obligations under each of the Environmental Indemnity and the Guaranty,
which obligations are and shall remain, for as long as Beneficiary deems necessary, unsecured obligations; and 
 (ii)     all payment, reimbursement, indemnification and other obligations to the Beneficiary in each case howsoever created, arising or evidenced, whether direct or indirect, joint or
several, absolute or contingent, or now or hereafter existing, or due or to become due, arising out of or in connection with the Loan Agreement, the Notes, this Deed of Trust or any of the other Loan Documents; 

(iii)    all indebtedness of any kind arising under, and all amounts of any kind which at
any time become due or owing to the Beneficiary under or with respect to, all of the covenants, obligations and agreements in, under or pursuant to the Loan Agreement, the Notes, this Deed of Trust, and the other Loan Documents; 

(iv)    any and all advances, costs or expenses paid or incurred by the Beneficiary
(a) to protect any or all of the Collateral (hereinafter defined) and other collateral under the Loan Documents, (b) to perform any obligation of the Grantor hereunder and any obligation of the Grantor under the Loan Agreement, the Notes
or any other Loan Documents or collect any amount owing to the Beneficiary, which is secured hereby or under the Loan Documents; 
 (v)     all amounts that may hereafter be loaned to Borrower, or its successors or assigns, by Beneficiary when evidenced by a promissory note or notes executed by Borrower reciting
that they are secured by this Deed of Trust; 
 (vi)    interest on all of the
foregoing including, where applicable, interest at the Default Interest Rate (as defined in the Notes) as applicable to the Note Rate (as defined in the Notes); and 

(vii)   all costs of enforcement and collection (including, without limitation, reasonable
attorneys’ fees and court costs) of this Deed of Trust, the Loan Documents and any of the foregoing. 

D.        The Collateral.  For purposes of this Deed of Trust, the
term “Collateral” means and includes all right, title and interest of the Grantor, if any, in and to all of the following: 
 (i)      Real Estate.  All of the land described on Exhibit A attached hereto (the “Land”), together with all and singular the tenements,
rights, easements, hereditaments, rights of way, privileges, liberties, appendages and appurtenances now or hereafter belonging or in anyway appertaining to the Land (including, without limitation, all rights relating to storm and sanitary

 
sewer, water, gas, electric, railway and telephone services); all development rights, air rights, water, water rights, water stock, gas, oil, minerals, coal and other substances of any kind or
character underlying or relating to the Land; all estate, claim, demand, right, title or interest of the Grantor in and to any street, road, highway, or alley (vacated or otherwise) adjoining the Land or any part thereof; all strips and gores
belonging, adjacent or pertaining to the Land; and any after-acquired title to any of the foregoing (all of the foregoing is herein referred to collectively as the “Real Estate”); 

(ii)     Improvements and Fixtures. All buildings, structures, replacements,
furnishings, fixtures, fittings and other improvements and property of every kind and character now or hereafter located or erected on the Real Estate, together with all building or construction materials, equipment, appliances, machinery, plant
equipment, fittings, apparatus, fixtures and other articles of any kind or nature whatsoever now or hereafter found on, affixed to or attached to the Real Estate, including (without limitation) all motors, boilers, engines and devices for the
operation of pumps, and all heating, electrical, lighting, power, plumbing, air conditioning, refrigeration and ventilation equipment (all of the foregoing is herein referred to collectively as the “Improvements”); 

(iii)    Personal Property. All furniture, furnishings, equipment (including,
without limitation, telephone and other communications equipment, window cleaning, building cleaning, monitoring, garbage, air conditioning, pest control and other equipment), and all other tangible property of any kind or character now or hereafter
owned or purported to be owned by the Grantor and used or useful in connection with the Real Estate, regardless of whether located on the Real Estate or located elsewhere including, without limitation, all rights of the Grantor under any lease to
furniture, furnishings, fixtures and other items of personal property at any time during the term of such lease and all rights under and to the escrow accounts, if any, and all interest thereon established and maintained pursuant to the Loan
Documents (all of the foregoing is herein referred to collectively as the “Goods”); 
 (iv)     Intangibles. All licenses, permits and governmental approvals, goodwill, trademarks, trade names, option rights, purchase contracts, books and records and general
intangibles of the Grantor relating to the Premises (defined below) and all accounts, contract rights, instruments, chattel paper and other rights of the Grantor for payment of money to it for property sold or lent by it, for services rendered by
it, for money lent by it, or for advances or deposits made by it, and any other intangible property of the Grantor related to the Real Estate or the Improvements (all of the foregoing is herein referred to collectively as the
“Intangibles”); 
 (v)      Rents. All rents,
revenues, issues, profits, royalties, avails, income and other benefits derived or owned by the Grantor directly or indirectly from the Premises, including without limitation, judgments, settlements or bankruptcy claims for unpaid rents or damages
arising in connection with any rejection of a Lease (defined below) in bankruptcy as well as rental loss insurance proceeds and claims therefor (all of the foregoing is herein collectively called the “Rents”); 

(vi)     Leases. All rights of the Grantor under all leases, subleases,
licenses, occupancy agreements, concessions or other arrangements, whether written or oral, whether now existing 

 
or entered into at any time hereafter, whereby any person agrees to pay money or any consideration for the use, possession or occupancy of, or any estate in, the Premises or any part thereof, and
all rents, income, profits, benefits, avails, advantages and claims against guarantors under any thereof (all of the foregoing, as each of the same may be amended and modified from time to time, is herein referred to collectively as the
“Leases”); 
 (vii)   Plans. All rights of the Grantor, if
any, to plans and specifications, designs, drawings and other matters prepared in connection with the Premises (all of the foregoing, as each of the same may be amended and modified from time to time, is herein called the “Plans”);

 (viii)  Contracts for Services. All rights of the Grantor, if any, under any
contracts executed by the Grantor with any provider of goods or services for or in connection with any construction undertaken on, or services performed or to be performed in connection with, the Real Estate, including any architect’s contract
and any management agreement (all of the foregoing, as each of the same may be amended and modified from time to time, is herein referred to collectively as the “Contracts for Services”); 

(ix)    Contracts for Sale or Financing. All rights of the Grantor, if any, as
seller or borrower under any agreement, contract, understanding or arrangement pursuant to which the Grantor has or may hereafter have, with the prior written consent of the Beneficiary, obtained the agreement of any person to pay or disburse any
money for the Grantor’s sale (or borrowing on the security) of the Collateral or any part thereof (all of the foregoing, as each of the same may be amended and modified from time to time, is herein referred to collectively as the
“Contracts for Sale”); 
 (x)     Accounts. All
reserves, escrows and deposit accounts maintained by Grantor with respect to the Property, including, without limitation, all accounts established or maintained pursuant to the Cash Management Agreement, the Clearing Account Agreement and the Pledge
and Assignment of Reserve Accounts, together with all deposits or wire transfers made to such accounts and all cash, checks, drafts, certificates, securities, investment property, financial assets, instruments and other property held therein from
time to time and all proceeds, products, distributions or dividends or substitutions thereon and thereof; 
 (xi)    Other Property. All other property or rights of the Grantor of any kind or character related to the Real Estate or the Improvements, and all proceeds (including insurance and
condemnation proceeds) and products of any of the foregoing. (All of the Real Estate and the Improvements, and any other property which is real estate under applicable law, is sometimes referred to collectively herein as the
“Premises”; and all of the Collateral other than the Premises is sometimes referred to herein as the “Personal Property”); and 

(xii)   Additional Rights. 

   1.         All payments due, or received, from residents,
second party charges added to base rental income, base and/or additional meal sales, commercial operations located on the Property or provided as a service to the residents of the Property, rental from guest suites, seasonal lease charges, furniture
leases, and laundry services and any and all other services 

 
provided to residents in connection with the Property, excluding personal property belonging to residents of the Property (other than Personal Property belong to Grantor); 

   2.         Subject to applicable law and regulations, all
licenses and contracts relating to the operation and authority to operate the Property as a Seniors Housing Facility; and 
    3.         All third party payments arising from the operation of the Property as a Seniors Housing Facility, utility deposits, unearned premiums
accrued, accruing or to accrue under insurance policies now or hereafter obtained by the Grantor and all proceeds of any conversion of the Property or any part thereof including, without limitation, proceeds of hazard, property, flood and title
insurance and all awards and compensation for the taking by eminent domain, condemnation or otherwise, of all or any part of the Property or any easement therein. 
 G R A N T 
 NOW THEREFORE, for and in consideration of the
Beneficiary’s making any loan, advance or other financial accommodation to or for the benefit of the Grantor, including sums advanced and readvanced under the Loan Agreement or the Notes, and in consideration of the various agreements contained
herein, in the Loan Agreement, the Notes and in the Loan Documents, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Grantor, and in order to secure the full, timely and proper
payment and performance of each and every one of the Liabilities, 
 GRANTOR DOES HEREBY IRREVOCABLY AND
UNCONDITIONALLY GRANT, BARGAIN, TRANSFER, SELL, ASSIGN AND CONVEY TO TRUSTEE, AND ITS SUCCESSORS IN TRUST FOREVER, WITH POWER OF SALE, TOGETHER WITH THE RIGHT OF ENTRY AND POSSESSION, FOR THE BENEFIT AND SECURITY OF BENEFICIARY ALL OF THE COLLATERAL
AND THE GRANTOR DOES HEREBY GRANT, BARGAIN, TRANSFER, SELL, ASSIGN AND CONVEY TO THE TRUSTEE FOR THE BENEFIT OF THE BENEFICIARY A CONTINUING SECURITY INTEREST IN AND TO ALL OF THE COLLATERAL. 

TO HAVE AND TO HOLD the Premises unto the Trustee, its successors and substitutes in trust, forever, hereby expressly
waiving and releasing any and all right, benefit, privilege, advantage or exemption under and by virtue of any and all statutes and laws of the state or other jurisdiction in which the Real Estate is located providing for the exemption of homesteads
from sale on execution or otherwise. 
 The Grantor hereby covenants with and warrants to the Beneficiary and to
the purchaser at any foreclosure sale: that at the execution and delivery hereof it is well seized of the Premises, and of a good, indefeasible estate therein, in fee simple; that the Collateral is free from all encumbrances whatsoever (and any
claim of any other person thereto) other than (i) the security interest granted to the Beneficiary herein and pursuant to the Loan Documents and (ii) the encumbrances and other matters set forth in the title insurance policy insuring the
lien of this Deed of Trust in favor of the Beneficiary (collectively, the “Permitted Exceptions”); that it has good and lawful right to sell, mortgage and convey the Collateral; and that it and its successors and assigns will
forever warrant and defend the Collateral against all claims and demands 

 
whatsoever with the exception of the Permitted Exceptions. 
 I.
COVENANTS AND AGREEMENTS 
 OF THE GRANTOR 

Further to secure the payment and performance of the Liabilities, the Grantor hereby covenants, warrants and agrees with
the Beneficiary as follows: 
 1.1         Recitals and
Grant.  The Recitals and Grant set forth above are true and correct and are incorporated herein by reference. 
 1.2         Payment of Liabilities.  The Grantor agrees that it will pay, or will cause to be paid, timely and in the manner required in the appropriate
documents or instruments, all amounts due hereunder and under the Loan Documents and all other Liabilities (including fees and charges). All sums payable by the Grantor hereunder shall be paid without demand, counterclaim, offset, deduction or
defense. The Grantor waives all rights now or hereafter conferred by statute or otherwise to any such demand, counterclaim, offset, deduction or defense. 
 1.3         Payment of Taxes.  Subject to Section 1.18 hereof, the Grantor will pay or cause to be paid when due all taxes and assessments,
general or special, and any and all levies, claims, charges, expenses and liens, ordinary or extraordinary, governmental or non-governmental, statutory or otherwise, due or to become due, that may be levied, assessed, made, imposed or charged on or
against the Collateral or any property used in connection therewith. In addition, the Grantor will pay when due any tax or other charge on the interest or estate in lands created or represented by this Deed of Trust or by any of the Loan Documents,
whether levied against the Grantor or the Beneficiary or otherwise. Upon request of Beneficiary, Grantor will submit to the Beneficiary all receipts showing payment of all of such taxes, assessments and charges. 

1.4         Maintenance and Repair.  The Grantor will: 

(a)         not abandon the Premises; 

(b)         not do, or suffer anything to be done, which would depreciate or
impair the value of the Collateral or the security of this Deed of Trust; 

(c)         not remove or demolish any of the Improvement; 

(d)         pay promptly for all labor and materials for all construction,
repairs, demolition and improvements to or on the Premises; 

(e)         not make any changes, additions or alterations to the Premises or the
Improvements except as required by any applicable governmental requirement or as otherwise approved in writing by Beneficiary; 
 (f)          maintain, preserve and keep the Goods and the Improvements in good, safe and insurable condition and repair and promptly make any needful and
proper repairs, replacements, renewals, additions or substitutions required by wear, damage, obsolescence or destruction, all as 

 
promptly as possible under the circumstances but in all cases in compliance with any time period provided under applicable requirements of governmental authorities and insurance underwriters;

 (g)         not commit, suffer, or permit waste of any part of the
Premises; and 
 (h)         maintain all grounds and abutting streets
and sidewalks which it has an obligation to maintain in good and neat order and repair. 

1.5         Sales; Liens.  Without in any way limiting the provisions
of the Loan Agreement, and except as otherwise expressly permitted in the Loan Agreement, the Grantor will not: 

(a)         Sales: sell, contract to sell, assign, transfer or convey, or permit
to be transferred or conveyed, the Collateral or any part thereof or any interest or estate in any thereof (including any conveyance into a trust or any conveyance of the beneficial interest in any trust that may be holding title to the Premises) or
remove any of the Collateral from the Premises or from the state in which the Real Estate is located; or 

(b)         Liens: create, suffer or permit to be created or to exist any deed of
trust, mortgage, lien, claim, security interest, charge, encumbrance or other right or claim of any kind whatsoever (whether voluntarily or by operation of law) upon the Collateral or any part thereof or any of the Third Party Agreements (defined
below), except those of current taxes not then due and payable, the Permitted Exceptions and mechanic’s liens being diligently contested in good faith and continuing in accordance with Section 1.18 hereof. 

1.6         Delivery of Documents; Access by Beneficiary. 

(a)         Delivery of Documents.  The Grantor will at all times
deliver to the Beneficiary either all of its executed originals (in the case of chattel paper or instruments) or (in all other cases), if requested by Beneficiary, certified copies of all Leases, agreements creating or evidencing Intangibles, Plans,
Contracts for Services, Contracts for Sale, all amendments and supplements thereto, and any other document which is, or which evidences, governs, or creates, Collateral. 

(b)         Access by Beneficiary.  In accordance with the terms of
the Loan Agreement, Beneficiary shall have the right to, among other things, enter onto, inspect, perform tests (including environmental studies and assessments in connection with the preparation of, or enforcement of, its rights and remedies under
the Loan Documents) and investigate the Premises and the Collateral and the books, records and documents relating thereto. 
 1.7         Stamp and Other Taxes.  If the Federal, or any state, county, local, municipal or other government or any subdivision of any thereof having
jurisdiction, shall levy, assess or charge any tax (excepting therefrom any income tax on the Beneficiary’s receipt of interest payments on the principal portion of the Liabilities), assessment or imposition upon this Deed of Trust, any of the
other Liabilities, or any of the other Loan Documents, the interest of the Beneficiary in the Collateral, or any of the foregoing, or upon the Beneficiary by reason of or as holder of any of the foregoing, or shall at any time or times require
revenue stamps to be affixed to this Deed of Trust or any of the other Loan Documents, the Grantor shall pay, or cause to be paid, all such taxes and stamps to or for the Beneficiary as they become due and payable. If any

 
law or regulation is enacted or adopted permitting, authorizing or requiring any tax, assessment or imposition to be levied, assessed or charged, which law or regulation prohibits the Grantor
from paying the tax, assessment, stamp, or imposition to or for the Beneficiary, then such event shall constitute an Event of Default hereunder and all sums hereby secured shall become immediately due and payable at the option of the Beneficiary.

 1.8         Insurance.  The Grantor will at all times
maintain or cause to be maintained on the Goods, the Improvements and on all other Collateral, all insurance required pursuant to the terms of the Loan Agreement. All claims for insurance proceeds shall be settled, and the insurance proceeds
disbursed and applied, in accordance with the terms of the Loan Agreement. Grantor has assigned to Beneficiary all of its right, title and interest in, to and under all insurance proceeds as provided herein and in the Loan Agreement. 

1.9         Eminent Domain.  In case the Collateral, or any part or
interest in any thereof, is taken by condemnation or eminent domain, all Condemnation Awards (as defined in the Loan Agreement) are to be settled, assigned and applied in accordance with the terms of the Loan Agreement. Grantor has assigned to the
Beneficiary all of its right, title and interest in, to and under all Condemnation Awards as provided in the Loan Agreement. 
 1.10       Governmental Requirements. 
 (a)         Compliance With Laws.   The Grantor will at all times comply with, and cause the Collateral and the use and condition thereof to comply
with, all federal, state, county, municipal, local and other governmental statutes, ordinances, requirements, regulations, rules, orders and decrees of any kind whatsoever that apply or relate to the Grantor or the Collateral or the use thereof,
including, without limitation, all federal, state, county and local laws relating to handicapped access to the Premises. Notwithstanding the foregoing, the Grantor shall have the right to diligently contest any such governmental requirement so long
as (i) no Event of Default has occurred and is continuing, (ii) Grantor has provided Beneficiary with prior written notice of its intention to contest such governmental requirements, (iii) the contest is in good faith and by
appropriate legal proceedings, (iv) adequate reserves are being maintained and (v) forfeiture of any part of the Collateral will not result from the Grantor’s failure to comply with such governmental requirement during the period of
such contest. 
 (b)         Compliance With Permits.  
The Grantor further agrees that it will observe and comply with all conditions and requirements necessary to preserve and extend any and all rights, licenses, permits, privileges, franchises and concessions (including, without limitation, those
relating to land use and development, landmark preservation, construction, access, water rights and use, noise, environmental pollution and hazardous waste and substances) which are applicable to the Grantor or have been granted for the Collateral
or the use thereof. 
 (c)         Changes in Use;
Zoning.   Unless required by applicable law, or unless Beneficiary has otherwise first agreed in writing, the Grantor shall not make or allow any changes to be made in the nature of the occupancy or use of the Premises or any portion
thereof for which the Premises or such portion was intended at the time this Deed of Trust was delivered. The Grantor shall not initiate or acquiesce in any change in any zoning or other land use

 
classification now or hereafter in effect and affecting the Premises or any part thereof without in each case obtaining the Beneficiary’s prior written consent thereto. 

1.11       No Mechanics’ Liens.   Subject to Section 1.18
hereof, the Grantor will not suffer any mechanic’s, laborer’s or materialmen’s lien to be created or remain outstanding upon the Premises or any part thereof. In addition, it is further expressly made a covenant and condition hereof
that the lien of this Deed of Trust shall extend to any and all improvements and fixtures now or hereafter on the Premises, prior to any other lien thereon that may be claimed by any person, so that subsequently accruing claims for lien on the
Premises shall be junior and subordinate to this Deed of Trust. All contractors, subcontractors, and other parties dealing with the Premises, or with any parties interested therein, are hereby required to take notice of the above provisions. The
Grantor agrees to promptly deliver to the Beneficiary a copy of any notices that the Grantor receives with respect to any pending or threatened lien or the foreclosure thereof. 

1.12       Continuing Priority.   The Grantor will (a) pay such fees,
taxes and charges, execute and file (at the Grantor’s expense) such financing statements, obtain such acknowledgements or consents, notify such obligors or providers of services and materials and do all such other acts and things as the
Beneficiary may from time to time request to establish and maintain a valid and perfected lien on and security interest in the Collateral, subject only to the Permitted Exceptions; and (b) keep all tangible Collateral on the Real Estate except
as the Beneficiary may otherwise consent in writing. 
 1.13      
Utilities.   The Grantor will pay or cause to be paid all utility charges incurred in connection with the Collateral promptly when due and maintain all utility services available for use at the Premises. 

1.14       Third Party Agreements. 

(a)         Performance of Obligations.   The Grantor will, for
the benefit of the Beneficiary, fully and promptly keep, observe, perform and satisfy each obligation, condition, covenant, and restriction of the Grantor affecting the Premises or imposed on it under any “Third Party Agreements” so that
there will be no default thereunder and so that the persons (other than the Grantor) obligated thereon shall be and remain at all times obligated to perform for the benefit of the Beneficiary. The Grantor will not permit to exist any condition,
event or fact which could allow or serve as a basis or justification for any such person to avoid such performance. The Grantor shall promptly deliver to the Beneficiary copies of any demands or notices of default sent or received by the Grantor in
connection with any Third Party Agreement and allow the Beneficiary the right, but not the obligation, to cure any such default. For purposes hereof, “Third Party Agreements” shall mean all agreements between the Grantor (or its
predecessor(s) in title) relating to the Collateral or the Liabilities secured hereby, including, without limitation, all reciprocal easement agreements and covenants, conditions and restrictions affecting the Premises, the Management Agreement (as
defined in the Loan Agreement), the Contracts for Sale, Contracts for Services, the Intangibles and any other document imposing an obligation, covenant or restriction against the Collateral or Grantor. The term “Third Party
Agreement” shall not, however, include the Leases. 

 (b)        
Enforceability.   In addition, the Grantor will enforce, at its expense, each and every obligation of the parties (other than the Grantor) under the Third Party Agreements. Without the prior written consent of the Beneficiary, the
Grantor shall not (i) collect the proceeds of any Intangibles more than thirty (30) days before the same shall be due and payable; (ii) modify, amend, cancel or terminate any of the Third Party Agreements, or (iii) in any other
manner impair Beneficiary’s rights and interest with respect to the Third Party Agreements. 

1.15       Assignment of Leases and Rents and Collections; Future Leases.

 (a)         Assignment; License.   Grantor
irrevocably, absolutely and unconditionally assigns and transfers to Beneficiary all of Grantor’s right, title and interest (but not the obligations) in, to and under the Leases now existing or hereafter entered into, and all of the Rents,
whether now due, past due, or to become due, and including all prepaid rents and security deposits, and all other amounts due with respect to any of the other Collateral. Beneficiary shall hold and apply all such Leases and Rents in payment or
reimbursement of the Liabilities and all other sums payable under this Deed of Trust and the Loan Documents. So long as no Event of Default has occurred and is continuing, the Grantor shall have a license to collect and receive all Rents and other
amounts. Grantor shall hold any Rents received under the foregoing license in trust for the benefit of Beneficiary. Upon the occurrence of an Event of Default, Grantor’s right to collect and receive and obtain the Rents under the foregoing
license shall automatically be revoked without regard to the adequacy of Beneficiary’s security hereunder and without notice to or demand upon the Grantor. Thereafter, until an Event of Default no longer exists Beneficiary shall have the sole
right, with or without taking possession of the Premises, to collect all Rents. This is an absolute assignment and not an assignment for security only. 
 (b)         Mortgagee-in-Possession.   It is understood and agreed that neither the foregoing assignment to the Beneficiary nor the exercise by the
Beneficiary of any of its rights or remedies under Article III hereof shall be deemed to make the Beneficiary a “mortgagee-in-possession” or otherwise responsible or liable in any manner with respect to the Collateral or the
use, occupancy, enjoyment of any portion thereof, unless and until the Beneficiary, in person or by agent, assumes actual possession thereof. Nor shall appointment of a receiver for the Collateral by any court at the request of the Beneficiary or by
agreement with the Grantor, or the entering into possession of any part of the Collateral by such receiver, be deemed to make the Beneficiary a mortgagee-in-possession or otherwise responsible or liable in any manner with respect to the Collateral
or the use, occupancy, enjoyment or operation of all or any portion thereof. 
 (c)
        Notice to Tenants.   Upon the occurrence of any Event of Default, this Deed of Trust shall constitute a direction to and full authority to each lessee under any Leases, each guarantor
of any of the Leases and any other person obligated under any of the Collateral to pay all Rents and other amounts to the Beneficiary without proof of the Event of Default relied upon. The Grantor hereby irrevocably authorizes each such person to
rely upon and comply with any notice or demand by the Beneficiary for the payment to the Beneficiary of any Rents and other amounts due or to become due under such documents. 

(d)         Application of Rents; Future Assurance.   The
Grantor shall apply the Rents and other amounts to the payment of all necessary and reasonable operating costs and expenses of the Collateral, debt service on the Liabilities and otherwise in compliance with the provisions of the

 
Loan Documents. The Grantor shall at any time or from time to time, upon request of the Beneficiary, transfer and assign to the Beneficiary in such form as may be satisfactory to the Beneficiary,
the Grantor’s interest in any of the Leases. 
 (e)        
Assignment by Beneficiary.   The Beneficiary shall have the right to assign the Beneficiary’s right, title and interest in any Leases to any subsequent holder of this Deed of Trust or any participating interest therein or to
any person acquiring title to all or any part of the Collateral through foreclosure, deed-in-lieu or otherwise. Any subsequent assignee shall have all the rights and powers herein provided to the Beneficiary. 

(f)         Remedies.   Without limiting the remedies contained
in Article III, upon the occurrence and during the continuation of any Event of Default, the Beneficiary shall have the right to execute new leases of any part of the Collateral, including leases that extend beyond the term of this Deed of Trust. At
any time after the occurrence and during the continuation of an Event of Default, the Beneficiary shall have the authority, as the Grantor’s attorney-in-fact, such authority being coupled with an interest and irrevocable, to sign the name of
the Grantor and to bind the Grantor on all papers and documents relating to the operation, leasing and maintenance of the Collateral. 
 (g)         Future Leases.   From and after the date hereof, all Leases entered into in connection with the Premises shall be made in accordance
with the terms and conditions of the Loan Agreement. 
 1.16      The
Beneficiary’s Performance. If the Grantor fails to pay or perform any of its obligations herein contained (including payment of expenses of foreclosure and court costs), the Beneficiary may (but need not), as agent or attorney-in-fact
of the Grantor, after the expiration of any applicable notice or cure period (except in the case of an emergency affecting the Premises or the lien of this Deed of Trust, in which case no notice or cure period shall be applicable) make any payment
or perform (or cause to be performed) any obligation of the Grantor hereunder, in any form and manner deemed expedient by the Beneficiary, and any amount so paid or expended (plus reasonable compensation to the Beneficiary for its out-of-pocket and
other expenses for each matter for which it acts under this Deed of Trust), with interest thereon at the Default Interest Rate (as defined in the Notes) applicable to the Note Rate (as defined in the Notes), shall be added to the principal debt
hereby secured and shall be repaid to the Beneficiary upon demand. 
 By way of illustration and not in
limitation of the foregoing, the Beneficiary may (but need not) do all or any of the following, as applicable: (a) make payments of principal or interest or other amounts on account of any lien, encumbrance or charge on any of the Collateral;
(b) complete construction; (c) make repairs; (d) collect Rents; (e) prosecute collection of the Collateral or proceeds thereof; (f) purchase, discharge, compromise or settle any tax lien or any other lien, encumbrance, suit,
proceeding, title or claim thereof; (g) contest any tax or assessment; and (h) redeem from any tax sale or forfeiture affecting the Premises or any easement benefitting the Premises. 

In making any payment or securing any performance relating to any obligation of the Grantor hereunder, the Beneficiary
shall be the sole judge of the legality, validity and amount of 

 
any lien or encumbrance and of all other matters necessary to be determined in satisfaction thereof. No such action of the Beneficiary shall ever be considered as a waiver of any right accruing
to it on account of the occurrence of any matter which constitutes an Event of Default. 

1.17       Subrogation Rights.   To the extent that the proceeds of the
Loan are used, directly or indirectly, to pay off, satisfy or discharge, in whole or in part, any outstanding lien, charge or prior encumbrance against the Collateral or any part thereof, then as additional security hereunder, Beneficiary shall be
subrogated to any and all rights, superior titles and liens owned or claimed by any owner or holder of such outstanding liens, charges and prior encumbrances, however remote and irrespective of whether said liens, charges or encumbrances have been
released of record by the holder thereof upon payment. 
 1.18      
Grantor’s Right to Contest.   Grantor may contest or object to the legal validity or amount of any tax or any mechanics’ or materialmen’s lien on the Premises on and subject to the following conditions: (i) no
Event of Default has occurred and remains uncured, (ii) after having given Beneficiary at least five (5) Business Days’ prior written notice of its intention to institute such proceedings, Grantor shall in good faith have instituted
appropriate legal proceedings with respect thereto, the pendency of which shall have the legal effect of staying the effectiveness and enforcement of such taxes or lien (as the case may be) and any and all other remedies relating thereto which
may affect the Premises or the title thereto, and Grantor shall at all times thereafter prosecute such proceedings diligently and in good faith to completion; and (iii) Grantor shall either (A) have duly paid the full amount of the tax or
lien under protest or (B) have fully bonded over or title-insured over such tax or lien to Beneficiary’s full satisfaction (such title endorsement to affirmatively cover costs of defense). 

1.19       Transfer or Further Encumbrance of the Property.   Except as
otherwise specifically provided in the Loan Agreement, without Beneficiary’s prior written consent, which consent may be granted or withheld in Beneficiary’s sole and absolute discretion, Grantor shall not (i) sell, assign, convey,
transfer or otherwise dispose of any legal, beneficial or equitable interest in all or any part of the Property, (ii) permit or suffer any owner, directly or indirectly, of any beneficial interest in the Property or Grantor to transfer such
interest, whether by transfer of partnership, membership, stock or other beneficial interest in any entity or otherwise, or (iii) mortgage, hypothecate or otherwise encumber or permit to be encumbered or grant or permit to be granted a security
interest in all or any part of the Property or Grantor or any beneficial or equitable interest in either the Property or Grantor. 
 II. DEFAULT 
 Each of the following shall constitute an
event of default (an “Event of Default”) hereunder: 

2.1         Loan Documents.   The occurrence of an Event of
Default under the terms and provisions of the Loan Agreement or any of the other Loan Documents (as defined in the Loan Agreement or such other Loan Documents); or 

2.2         Provisions of this Deed of Trust.   Non-compliance
by the Grantor with, or failure by the Grantor to perform, any agreement contained herein (other than any non-compliance or 

 
failure which constitutes an Event of Default under Section 2.1 or 2.3) and continuance of such non-compliance or failure for five (5) days (after written notice) with
respect to the payment of any amounts required to be paid under this Deed of Trust (other than amounts required to be paid under the Notes) or for thirty (30) days after notice thereof to the Grantor from the Beneficiary with respect to all
other non-monetary defaults under this Deed of Trust; provided, however, that if such non-monetary default cannot, with diligence, be cured within such thirty (30) day period, then so long as Grantor is diligently pursuing a cure
for such default, Grantor shall have an additional thirty (30) days after the expiration of the initial thirty (30) days within which to cure such default. 

2.3         Sales and Liens.   A default by the Grantor under
Section 1.5 for which there is no notice or cure period. 
 III. REMEDIES 

3.1         Acceleration.   Upon the occurrence of any Event of
Default, the entire outstanding Liabilities together with interest thereon at the Default Interest Rate as applied to the Note Rate shall (a) automatically become immediately due and payable in the event of the occurrence of an Event of Default
under Section 16(a) of the Loan Agreement and (b) at the option of the Beneficiary, exercised at any time while such Event of Default is continuing, become immediately due and payable in the event of occurrence of any other Event of
Default. 
 3.2         Remedies Cumulative.   No
remedy or right of the Beneficiary hereunder or under any of the Loan Documents, or otherwise available under applicable law or in equity, shall be exclusive of any other right or remedy, but each such remedy or right shall be in addition to
every other remedy or right now or hereafter existing under any such document or under applicable law or in equity. No delay in the exercise of, or omission to exercise, any remedy or right accruing on any Event of Default shall impair any such
remedy or right or be construed to be a waiver of any such Event of Default or an acquiescence therein, nor shall it affect any subsequent Event of Default of the same or a different nature. Every such remedy or right may be exercised concurrently
or independently, and when and as often as may be deemed expedient by the Beneficiary. All obligations of the Grantor, and all rights, powers and remedies of the Beneficiary, expressed herein shall be in addition to, and not in limitation of, those
provided by law or in equity or in any of the Loan Documents or any other written agreement or instrument relating to any of the Liabilities or any security therefor. 

3.3         Power of Sale; Judicial Foreclosure; Receiver. 

(a)         Power of Sale.   Should Beneficiary elect to
foreclose by exercise of the power of sale herein contained, Beneficiary shall notify Trustee and shall deposit with Trustee this Deed of Trust and the Notes and such receipts and evidence of expenditures made and secured hereby as Trustee may
require. 
 i)         Upon receipt of such notice from Beneficiary,
Trustee shall cause to be recorded, mailed or delivered to Grantor such notice of default and election to sell as is then required by law and by this Deed of Trust. Trustee shall, without demand on Grantor, after lapse of such time as may then be
required by law and after recordation of such notice of default and 

 
after notice of sale has been given as required by law, sell the Premises at time and place of sale fixed by it in said notice of sale, either as a whole, or in separate lots or parcels or items
as Trustee shall deem expedient, and in such order as it may determine, at public auction, to the highest bidder for cash in lawful money of the United States payable at the time of sale. Trustee shall deliver to such purchaser or purchasers thereof
its good and sufficient deed or deeds conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person,
including without limitation Grantor, Trustee or Beneficiary, may purchase at such sale and Grantor hereby covenants to warrant and defend the title of such purchaser or purchasers. If allowed by law, Beneficiary, if it is the purchaser, may turn in
the Notes at the amount owing thereon toward payment of the purchase price (or for endorsement of the purchase price as a payment on the Notes if the amount owing thereon exceeds the purchase price). Grantor hereby expressly waives any right of
redemption after sale that Grantor may have at the time of sale or that may apply to the sale. 

ii)       After deducting all costs, fees and expenses of Trustee and of this Deed of
Trust, including costs of evidence of title in connection with sale and reasonable Trustee’s and attorneys’ fees for conducting the sale, Trustee shall apply the proceeds of sale to payment of all sums expended under the terms hereof and
not then repaid (with accrued interest at the Default Interest Rate as applied to the Note Rate), and to all other sums then secured hereby in such order as Beneficiary shall determine, and the remainder, if any, to the person or persons legally
entitled thereto. 
 iii)      Trustee may postpone sale of all or any portion of the
Premises by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement or by subsequently noticed sale, and without further
notice make such sale at the time fixed by the last postponement; or Trustee may, in its discretion, give a new notice of sale. Beneficiary may rescind any such notice of default at any time before Trustee’s sale by executing a notice of
rescission and recording the same. The recordation of such notice shall constitute a cancellation of any prior recorded declaration of default and demand for sale and of any acceleration of maturity of the indebtedness hereby secured effected by any
prior declaration or notice of default. The exercise by Beneficiary of the right of rescission shall not constitute a waiver of any default and demand for sale, or notices of default and of election to cause the Land to be sold, nor otherwise affect
the Notes or this Deed of Trust, or any of the rights, obligations or remedies of Beneficiary or Trustee hereunder. 
 (b)         Judicial Foreclosure.   Upon the occurrence of any Event of Default, Beneficiary shall have the right immediately to foreclose this
Deed of Trust by applicable judicial proceedings. 
 (c)        
Receiver; Beneficiary-in-Possession.   Upon the filing of any complaint for that purpose, the court in which such complaint is filed may, upon application of Beneficiary or Trustee or at any time thereafter, either before or after
foreclosure sale, and without notice to Grantor or to any party claiming under Grantor and without regard to the solvency or insolvency at the time of such application of any person then liable for the payment of any of the Liabilities,

 
without regard to the then value of the Premises or whether the same shall then be occupied, in whole or in part, as a homestead, by the owner of the equity of redemption, and without regarding
any bond from the complainant in such proceedings, appoint a receiver for the benefit of the Beneficiary, or permit Beneficiary or Trustee to take possession, charge, and control of the Premises, to lease the same, to keep the buildings thereon
insured and in good repair, and to collect all Rents during the pendency of such foreclosure suit, and, in case of foreclosure sale, during any period of redemption. 

(d)         Powers of Receiver, Beneficiary and Trustee.   The
court may, from time to time, authorize said receiver, Trustee or the Beneficiary, as mortgagee-in-possession, to apply the net amounts received by Trustee or the Beneficiary remaining in its hands, after deducting reasonable compensation for itself
and its counsel as allowed by the court, in payment (in whole or in part) of any or all of the Liabilities, including without limitation the following, in such order of application as Beneficiary may elect: (i) amounts due under the Loan
Documents, (ii) amounts due upon any decree entered in any suit foreclosing this Deed of Trust, (iii) costs and expenses (including, without limitation, attorneys fees and court costs) of foreclosure and litigation upon the Premises,
(iv) insurance premiums, repairs, taxes, special assessments, water charges and interest, penalties and costs, in connection with the Premises, (v) any other lien or charge upon the Premises that may be or become superior to the lien of
this Deed of Trust, or of any decree foreclosing the same and (vi) all moneys advanced by Beneficiary to cure or attempt to cure any Event of Default by Grantor in the performance of any obligation or condition contained in any Loan Documents
or this Deed of Trust or otherwise, to protect the security hereof provided herein, or in any Loan Documents, with interest on such advances at the Default Interest Rate applicable to the Note Rate, and any balance shall be applied by Beneficiary
toward the payment of the Indebtedness in such order and application as Beneficiary may from time to time elect. 
 (e)         Partial Foreclosure; Separate Sales.   This Deed of Trust may be foreclosed once against all, or successively against any portion or
portions, of the Premises, as Beneficiary may elect, until all of the Premises have been foreclosed against and sold. As part of the foreclosure, Beneficiary in its discretion may, with or without entry, personally or by attorney, cause Trustee to
sell to the highest bidder all or any part of the Premises, and all right, title, interest, claim and demand therein, and the right of redemption thereof, as an entirety, or in separate lots, as Beneficiary may elect, and in one sale or in any
number of separate sales held at one time or at any number of times, all in any manner and upon such notice as provided by applicable law. 
 (f)         Transfer of Title.   Upon the completion of any such sale or sales and any necessary confirmation thereof by the court, Trustee shall
transfer and deliver, or cause to be transferred and delivered, to the purchaser or purchasers the property so sold, in the manner and form as provided by applicable law. 

(g)         Beneficiary’s Right to Bid in Liabilities.   In
the case of any sale of the Premises pursuant to any judgment or decree of any court at public auction or otherwise, Beneficiary may become the purchaser, and for the purpose of making settlement for or payment of the purchase price, shall be
entitled to deliver over and use the Liabilities and any claims for the debt in order that there may be credited as paid on the purchase price the amount of such Liabilities and debt. In case of any foreclosure of this Deed of Trust (or the
commencement of or preparation 

 
therefor) in any court, all expenses of every kind paid or incurred by the Beneficiary for the enforcement, protection or collection of this security, including court costs, reasonable
attorneys’ fees, stenographers’ fees, costs of advertising, and costs of title insurance and any other documentary evidence of title, shall be paid by the Grantor. 

3.4         Possession of the Premises; Remedies for Leases and
Rents.   The Grantor hereby waives all right to the possession, income, and Rents of the Premises and other Collateral from and after the occurrence of any Event of Default, and the Beneficiary is hereby expressly authorized and
empowered, at and following any such occurrence and during the continuation of an Event of Default, to enter into and upon and take possession of the Premises and other Collateral or any part thereof. If any Event of Default shall occur, then,
whether before or after institution of legal proceedings to foreclose the lien of this Deed of Trust or before or after the sale thereunder, the Beneficiary shall be entitled, in its discretion, to do all or any of the following: (i) enter and
take actual possession of the Premises, the Rents, the Leases and other Collateral relating thereto or any part thereof personally, or by its agents or attorneys, and exclude the Grantor therefrom; (ii) with or without process of law, enter
upon and take and maintain possession of all of the documents, books, records, papers and accounts of the Grantor relating thereto; (iii) as attorney-in-fact or agent of the Grantor, or in its own name as mortgagee and under the powers herein
granted, hold, operate, manage and control the Premises, the Rents, the Leases and other Collateral relating thereto and conduct the business, if any, thereof either personally or by its agents, contractors or nominees, with full power to use such
measures, legal or equitable, as in its discretion or in the discretion of its successors or assigns may be deemed proper or necessary to enforce the payment of the Rents, the Leases and other Collateral relating thereto (including actions for the
recovery of rent, actions in forcible detainer and actions in distress of rent); (iv) cancel or terminate any Lease or sublease for any cause or on any ground which would entitle the Grantor to cancel the same; (v) elect to disaffirm any
Lease or sublease made subsequent hereto or subordinated to the lien hereof; (vi) make all necessary or proper repairs, decorations, renewals, replacements, alterations, additions, betterments and improvements to the Premises that, in its
discretion, may seem appropriate; (vii) complete any construction in progress thereon at the expense of Grantor and to continue any and all outstanding contracts for the erection and completion of the Improvements; (viii) insure and
reinsure the Collateral for all risks incidental to the Beneficiary’s possession, operation and management thereof; and (ix) receive all such Rents and proceeds, and perform such other acts in connection with the management and operation
of the Collateral, as the Beneficiary in its discretion may deem proper, the Grantor hereby granting the Beneficiary full power and authority to exercise each and every one of the rights, privileges and powers contained herein at any and all times
after and during the continuation of any Event of Default without notice to the Grantor or any other person. 

The Beneficiary, in the exercise of the rights and powers conferred upon it hereby, shall have full power to use and
apply the Rents to the payment, in such order as Beneficiary may determine, of or on account of any one or more of the following in such order as it may determine: (a) to the payment of the operating expenses of the Premises, including the cost
of management and leasing thereof (which shall include reasonable compensation to the Beneficiary and its agents or contractors, if management be delegated to agents or contractors, and it shall also include lease commissions and other compensation
and expenses of seeking and procuring tenants and entering into Leases), established claims for damages, if any, and 

 
premiums on insurance hereinabove authorized; (b) to the payment of taxes, charges and special assessments, the costs of all repairs, decorating, renewals, replacements, alterations,
additions, betterments and improvements of the Collateral, including the cost from time to time of installing, replacing or repairing the Collateral, and of placing the Collateral in such condition as will, in the judgment of the Beneficiary, make
it readily rentable; and (c) to the payment of any Liabilities. 
 The entering upon and taking possession
of the Premises, or any part thereof, and the collection of any Rents and the application thereof as aforesaid shall not cure or waive any Event of Default theretofore or thereafter occurring or affect any notice or Event of Default hereunder or
invalidate any act done pursuant to any such Event of Default or notice, and, notwithstanding continuance in possession of the Premises or any part thereof by the Beneficiary or a receiver and the collection, receipt and application of the Rents,
the Beneficiary shall be entitled to exercise every right provided for in this Deed of Trust or by law or in equity upon or after and during the continuation of the occurrence of an Event of Default. 

3.5         Personal Property. 

(a)         Remedies.   If any Event of Default shall occur, the
Grantor shall, promptly upon request by the Beneficiary, assemble the Collateral and make it available to the Beneficiary at such place or places, reasonably convenient for both the Beneficiary and the Grantor, as the Beneficiary shall designate.

 Without limiting the generality of the foregoing, whenever there exists an Event of Default hereunder, the
Beneficiary may, with respect to so much of the Collateral as is personal property under applicable law, to the fullest extent permitted by applicable law, without further notice, advertisement, hearing or process of law of any kind, (i) notify
any person obligated on the Collateral to perform directly for the Beneficiary its obligations thereunder, (ii) enforce collection of any of the Collateral by suit or otherwise, and surrender, release or exchange all or any part thereof or
compromise or extend or renew for any period (whether or not longer than the original period) any obligations of any nature of any party with respect thereto, (iii) endorse any checks, drafts or other writings in the name of the Grantor to
allow collection of the Collateral, (iv) take control of any proceeds of the Collateral, (v) enter upon any premises where any of the Collateral may be located and take possession of and remove such Collateral and render all or any part of
the Collateral unusable, all without being responsible for loss or damage, (vi) sell any or all of the Collateral, free of all rights and claims of the Grantor therein and thereto, at any lawful public or private sale, and (vii) bid for
and purchase any or all of the Collateral at any such public or private sale. Any proceeds of any disposition by the Beneficiary of any of the Collateral may be applied by the Beneficiary to the payment of expenses in connection with the Collateral,
including reasonable attorneys’ fees and legal expenses, and any balance of such proceeds shall be applied by the Beneficiary toward the payment of such of the Liabilities and in such order of application as the Beneficiary may from time to
time elect. Without limiting the foregoing, the Beneficiary may exercise from time to time any rights and remedies available to it under the Uniform Commercial Code as enacted in the State of California (the “Uniform Commercial
Code”) or other applicable law as in effect from time to time or otherwise available to it under applicable law. 

 (b)        
Notices.   The Grantor hereby expressly waives, to the fullest extent permitted by applicable law, except as otherwise expressly provided in this Deed of Trust or any of the other Loan Documents, any and all notices, advertisements,
hearings, or process of law in connection with the exercise by the Beneficiary of any of its rights and remedies after an Event of Default occurs. If any notification of intended disposition of any of the Collateral is required by law, such
notification, if mailed, shall be deemed reasonably and properly given if mailed by registered or certified mail, return receipt requested, at least ten (10) days before such disposition, postage prepaid, addressed to the Grantor at the address
shown above. The Grantor hereby expressly waives presentment, demand, notice of dishonor, protest and notice of protest in connection with the Notes, the Liabilities and, to the fullest extent permitted by applicable law, any and all other notices,
demands, advertisements, hearings or process of law in connection with the exercise by the Beneficiary of any of its rights and remedies hereunder, except as otherwise provided herein or in any of the other Loan Documents. 

(c)         Power of Attorney.   The Grantor hereby constitutes
the Beneficiary its attorney-in-fact with full power of substitution to take possession of the Collateral upon any Event of Default and, as the Beneficiary in its sole discretion deems necessary or proper, to execute and deliver all instruments
required by the Beneficiary to accomplish the disposition of the Collateral; this power of attorney is a power coupled with an interest and is irrevocable while any of the Liabilities are outstanding. 

3.6         Performance of Third Party Agreements.   The
Beneficiary may, in its sole discretion at any time after the occurrence and during the continuation of an Event of Default, notify any person obligated to the Grantor under or with respect to any Third Party Agreements of the existence of an Event
of Default, require that performance be made directly to the Beneficiary at the Grantor’s expense, and advance such sums as are necessary or appropriate to satisfy the Grantor’s obligations thereunder; and exercise, on behalf of the
Grantor, any and all rights of the Grantor under any Third Party Agreements as the Beneficiary in its sole discretion deems necessary or appropriate, and the Grantor agrees to cooperate with the Beneficiary in all ways reasonably requested by the
Beneficiary (including the giving of any notices requested by, or joining in any notices given by, the Beneficiary) to accomplish the foregoing. 
 3.7         No Liability on Beneficiary.   Notwithstanding anything contained herein, the Beneficiary shall not be obligated to perform or
discharge, and does not hereby undertake to perform or discharge, any obligation, duty or liability of the Grantor, whether hereunder, under any of the Third Party Agreements or otherwise. The Beneficiary shall not have responsibility for the
control, care, management or repair of the Premises or be responsible or liable for any negligence in the management, operation, upkeep, repair or control of the Premises resulting in loss, injury or death to any tenant, licensee, employee, stranger
or other person. No liability shall be enforced or asserted against the Beneficiary in its exercise of the powers granted to it under this Deed of Trust, and the Grantor expressly waives and releases any such liability. Should the Beneficiary incur
any such liability, loss or damage under any of the Third Party Agreements or under or by reason hereof, or in the defense of any claims or demands, the Grantor agrees to reimburse the Beneficiary immediately upon demand for the full amount thereof,
including costs, expenses and attorneys’ fees, except for any liability, loss or damage caused by the Beneficiary’s gross negligence or willful misconduct. 

 IV. GENERAL 

4.1         Powers of Trustee.   The following provisions apply
to Trustee: 
 (a)         Trustee accepts this trust when this Deed of
Trust, duly executed and acknowledged, is made a public record as provided by law, and by its acceptance hereof, Trustee covenants faithfully to perform and fulfill the trusts herein created, being liable, however, only for willful negligence or
misconduct, and Trustee hereby waives any statutory fee and agrees to accept reasonable compensation, in lieu thereof, for any services rendered by it in accordance with the terms hereof. 

(b)         At any time and from time to time, without liability therefor and
without notice, upon written request of Beneficiary, Trustee shall (i) consent in writing to the making of any map or plat of the Real Estate (ii) join in granting any easement thereon, (iii) join in any extension agreement or any
agreement subordinating the lien or charge hereof. 
 (c)        
Trustee may resign at any time upon giving thirty (30) days’ notice in writing to Grantor and to Beneficiary. 
 (d)         Beneficiary may, from time to time, by written instrument executed and acknowledged by Beneficiary, mailed to Grantor and recorded in the county in
which the Real Estate is located, and by otherwise complying with the provisions of the applicable law of the State of California, substitute a successor or successors to the person or persons then named herein or acting hereunder as Trustee.

 (e)         The Beneficiary, with or without cause, is authorized
either in its own name or through an attorney or attorney-in-fact appointed for the purpose by written instrument duly recorded and without any formality other than a designation in writing of a successor substitute trustee, to appoint a successor
or substitute trustee who shall thereupon become vested with and succeed to all the rights, title and powers given to Trustee herein named, the same as if the successor or substitute trustee had been named original Trustee herein. Such right to
appoint a successor or substitute trustee shall exist as often and whenever Beneficiary desires. 

(f)         Trustee, or anyone acting in its stead, shall have, in its
discretion, authority to employ all proper agents and attorneys in the execution of this trust and in the conducting of any sale made pursuant to the terms hereof, and to pay for such services rendered out of the proceeds of the sale of the
Premises, should any be realized. If no sale be made or if the proceeds of sale be insufficient to pay the same, then Grantor hereby undertakes and agrees to pay the costs of such services rendered to Trustee. 

(g)         If Trustee shall be made a party to or shall intervene in any action
or proceeding affecting the Premises or the title thereto, or the interest of Trustee or Beneficiary under this Deed of Trust, except for any action or proceeding arising out of the willful misconduct or, to the extent prohibited by law, the gross
negligence of Trustee or Beneficiary, Trustee and Beneficiary shall be reimbursed by Grantor, immediately and without demand, for all reasonable costs, charges and attorneys’ fees incurred by them or any of them in any case, and the same shall
become so much additional indebtedness secured hereby. 

 (h)         At any time and from
time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed of Trust for endorsement, and without affecting the personal liability of any person with respect to any of the
Liabilities or the effect of this Deed of Trust upon the remainder of the Collateral, Trustee may (i) reconvey any part of the Collateral, (ii) consent in writing to the making of any map or plat thereof, (iii) join in granting any
easement thereon, or (iv) join in any extension agreement, agreement subordinating the lien or charge hereof, or other agreement or document relating hereto or to the Collateral. 

4.2         Permitted Acts.   Grantor agrees that, without
affecting or diminishing in any way the liability of Grantor or any other person, except any person expressly released in writing by Beneficiary (with the consent of any pledgee of the Liabilities), for the payment or performance of any of the
Liabilities or for the performance of any obligation contained herein or affecting the lien hereof upon the Collateral or any part thereof, Beneficiary may at any time and from time to time, without notice to or the consent of any person:
(a) release any person liable for the payment or performance of the Liabilities or any guaranty given in connection therewith; (b) extend the time for, or agree with Grantor to alter the terms of payment, reimbursement or performance of
any of the Liabilities or any guaranty given in connection therewith; (c) modify or waive any obligation; (d) subordinate, modify or otherwise deal with the lien hereof; (e) accept additional security of any kind for repayment of the
Liabilities or any guaranty given in connection therewith; (f) release any Collateral or other property securing any or all of the Liabilities or any guaranty given in connection therewith; (g) make releases of any portion of the Premises;
(h) consent to the making of any map or plat of the Premises; (i) consent to the creation of any easements on the Premises or of any covenants restricting the use or occupancy thereof; or (j) exercise or refrain from exercising, or
waive, any right Beneficiary may have. 
 4.3        
Indemnification.   Without limiting any other indemnification contained in the Loan Documents, Grantor agrees to indemnify Beneficiary and Trustee, and hold Beneficiary and Trustee and each of their respective officers, directors,
employees and agents harmless, from and against any and all losses, damages, costs, expenses and claims of any kind whatsoever (including, without limitation, reasonable attorneys’ fees), except to the extent that such losses, damages, costs,
expenses and claims are caused by Beneficiary’s or Trustee’s gross negligence or willful misconduct, which Beneficiary or Trustee may pay or incur in connection with the Loan Agreement, the Notes, this Deed of Trust and the other Loan
Documents and any suit or proceeding in or to which Beneficiary or Trustee may be made or become a party, which suit or proceeding does or may affect all or any portion of the Collateral or the value, use or operation thereof or this Deed of Trust
or the validity, enforceability, lien or priority hereof or of any of the Liabilities or indebtedness secured hereby. 
 4.4         Obligatory Future Advances.   This Deed of Trust is granted to secure future advances and loans from Beneficiary to or for the benefit
of Grantor or their respective successors and assigns or the Premises, as provided in the Loan Agreement regardless of whether, at the time or times of such advances, Grantor is then the owner of the Collateral or any interest in any hereof, and
costs and expenses of enforcing Grantor’s obligations under this Deed of Trust, the Loan Documents and the Loan Agreement. All advances, disbursements or other payments required by the Loan Agreement are obligatory advances up to the credit
limits established therein and shall, to the fullest extent permitted by law, have priority over any and all mechanics’ liens and other liens and encumbrances arising after this Deed of Trust is recorded. 

 4.5         Fixture
Filing.   This Deed of Trust is intended to constitute a security agreement between Grantor and Beneficiary. The recording of this Deed of Trust shall be effective as a financing statement filed as a fixture filing within the purview
of the Uniform Commercial Code with respect to all fixtures and goods described herein, which goods are or may become fixtures relating to the Real Estate, and is to be recorded with the appropriate authority where the Real Estate (including said
fixtures) is situated. This Deed of Trust shall also be effective as a financing statement covering minerals or the like (including oil and gas) and is to be filed for record in the real property records of the county in which the Real Estate is
located. The mailing address of Grantor (debtor) is set forth above on the first page of this Deed of Trust and the address of Beneficiary (secured party) from which information concerning the security interest may be obtained is set forth above on
the first page of this Deed of Trust. 
 4.6         Security
Agreement.   This Deed of Trust shall be self-operative and constitute a security agreement pursuant to the Uniform Commercial Code with respect to the Collateral, and Beneficiary shall have all of the rights and remedies of a secured
party under the Uniform Commercial Code as well as all other rights and remedies available at law or in equity. Grantor shall, and irrevocably constitutes and appoints Beneficiary the attorney-in-fact of Grantor to, execute, deliver and, if
appropriate, to file with the appropriate filing officer or office such security agreements, financing statements, continuation statements or other instruments as Beneficiary may request or require in order to impose, perfect or continue the
perfection of the lien or security interest created hereby. Grantor shall pay (or reimburse Beneficiary for) all costs of filing such statements and renewals and releases thereof and shall pay all reasonable costs and expenses of any record searches
for financing statements that Beneficiary may reasonably require. 

4.7         Full Reconveyance.   Upon written request of
Beneficiary stating that all sums secured hereby have been paid and all obligations secured hereby have been performed, and upon surrender of this Deed of Trust and the Notes to Trustee for cancellation and retention and upon payment by Grantor of
Trustee’s fees, Trustee shall reconvey to Grantor, or the person or persons legally entitled thereto, without warranty, any portion of the Premises then held hereunder. The recitals in such reconveyance of any matters or facts shall be
conclusive proof of the truthfulness thereof. The grantee in any reconveyance may be described as “the person or persons legally entitled thereto.” 
 4.8         Notices.   Grantor hereby requests that a copy of any notice of default and any notice of sale hereunder be mailed to it at the address
set forth above in this Deed of Trust. All notices, demands and other communications hereunder to either party shall be given to the parties hereto at their addresses set forth above shall be deemed to have been given in accordance with the terms of
the Loan Agreement. 
 4.9         Place of
Organization.   Grantor represents and warrants that it is organized or registered under the laws of the state of its formation and Grantor agrees that it shall not change the jurisdiction in which it is organized or registered without
Beneficiary’s prior written approval. 
 4.10       Successors; Grantor;
Gender.   All provisions hereof shall bind Grantor and Beneficiary and their respective successors, vendees and assigns and shall inure to the benefit of 

 
the Beneficiary, its successors and assigns, and Grantor and its permitted successors and assigns. Grantor shall not have any right to assign any of its rights hereunder. Except as limited by the
preceding sentence, the word “Grantor” shall include all persons claiming under or through Grantor and all persons liable for the payment or performance by Grantor of any of the Liabilities whether or not such persons shall have executed
this Deed of Trust or the other Loan Documents. Wherever used, the singular number shall include the plural, the plural the singular, and the use of any gender shall be applicable to all genders. 

4.11       Care by the Beneficiary.   Beneficiary shall be deemed to have
exercised reasonable care in the custody and preservation of any of the Collateral assigned by Grantor to Beneficiary or in the Beneficiary’s possession if it takes such action for that purpose as Grantor requests in writing, but failure of
Beneficiary to comply with any such request shall not be deemed to be (or to be evidence of) a failure to exercise reasonable care, and no failure of Beneficiary to preserve or protect any rights with respect to such Collateral against prior
parties, or to do any act with respect to the preservation of such Collateral not so requested by Grantor, shall be deemed a failure to exercise reasonable care in the custody or preservation of such Collateral. 

4.12       Beneficiary Statements.   If Grantor requests a statement of
Beneficiary as to the Liabilities secured by this Deed of Trust, Grantor shall pay to Beneficiary for each such statement the maximum fee allowed by law, or if there be no maximum fee, then such reasonable fee as is charged by Beneficiary as of the
time said statement is furnished. Grantor shall also pay the charges of Beneficiary for any other service rendered to or on behalf of Grantor in connection with this Deed of Trust or the Liabilities, including the delivery to an escrow holder of a
request for full or partial reconveyance of this Deed of Trust, transmitting records pertaining to this Deed of Trust and the Liabilities and replacing any existing policy of insurance held hereunder with another such policy. 

4.13       No Waiver; Writing.   No delay on the part of Beneficiary in
the exercise of any right or remedy shall operate as a waiver thereof, and no single or partial exercise by Beneficiary of any right or remedy shall preclude other or further exercise thereof or the exercise of any other right or remedy. The
granting or withholding of consent by Beneficiary to any transaction as required by the terms hereof shall not be deemed a waiver of the right to require consent to future or successive transactions. 

4.14       Governing Law.   This Deed of Trust shall be a contract made
under and governed by the internal laws of the State of California. 
 4.15      
Attorneys’ Fees.   If any Event of Default occurs, Grantor shall pay all costs of enforcement and collection, including but not limited to, reasonable attorneys’ fees, whether or not such enforcement and collection
includes the filing of a lawsuit. As used in this Deed of Trust and in the other Loan Documents, the term “attorneys’ fees” or “attorneys’ fees and costs” shall mean the reasonable fees and expenses of counsel to the
parties hereto, which may include printing, Photostating, duplicating and other expenses, air freight charges, and fees billed for law clerks, paralegals, librarians and others not admitted to the bar but performing services under the supervision of
an attorney. The terms “attorneys’ fees” or “attorneys’ fees and costs” shall also include, without limitation, all such fees and expenses incurred with respect to appeals,

 
arbitrations, bankruptcy proceedings and any post-judgment proceedings to collect any judgment, and whether or not any action or proceeding is brought with respect to the matter for which said
fees and expenses were incurred. The provisions allowing for the recovery of post-judgment fees, costs and expenses are separate and several and shall survive the merger of the applicable Loan Document into any judgment. 

4.16       Waiver.   Grantor, on behalf of itself and all persons now or
hereafter interested in the Premises or the Collateral, voluntarily and knowingly hereby: waives, to the fullest extent permitted by applicable law, all rights under all appraisement, homestead, moratorium, valuation, exemption, stay, extension, and
redemption statutes, laws or equities now or hereafter existing, and hereby further waives the pleading of any statute of limitations as a defense to any and all Liabilities secured by this Deed of Trust, and Grantor agrees that no defense, claim or
right based on any thereof will be asserted, or may be enforced, in any action enforcing or relating to this Deed of Trust or any of this Collateral. Without limiting the generality of the preceding sentence, Grantor, on its own behalf and on behalf
of each and every person acquiring any interest in or title to the Premises subsequent to the date of this Deed of Trust, hereby irrevocably waives any and all rights of redemption from sale under any order or decree of foreclosure of this Deed of
Trust or under any power contained herein or under any sale pursuant to any statute, order, decree or judgment of any court. Grantor, for itself and for all persons hereafter claiming through or under it or who may at any time hereafter become
holders of liens junior to the lien of this Deed of Trust, hereby expressly waives and releases all rights to direct the order in which any of the Collateral shall be sold in the event of any sale or sales pursuant hereto and to have any of the
Collateral and/or any other property now or hereafter constituting security for any of the indebtedness secured hereby marshaled upon any foreclosure of this Deed of Trust or of any other security for any of said indebtedness. 

4.17       JURY TRIAL.   TO THE EXTENT NOW OR HEREAFTER PERMITTED BY
APPLICABLE LAW, GRANTOR HEREBY EXPRESSLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS DEED OF TRUST OR ANY LOAN DOCUMENTS TO WHICH IT IS A PARTY, OR UNDER ANY AMENDMENT, INSTRUMENT,
DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY RELATIONSHIP EXISTING IN CONNECTION WITH THIS DEED OF TRUST OR ANY RELATED DOCUMENT, AND AGREES THAT ANY SUCH ACTION OR
PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. 
 4.18      
No Merger.   It being the desire and intention of the parties hereto that this Deed of Trust and the lien hereof do not merge in fee simple title to the Premises, it is hereby understood and agreed that should Beneficiary
acquire an additional or other interests in or to the Premises or the ownership thereof, then, unless a contrary intent is manifested by Beneficiary as evidenced by an express statement to that effect in an appropriate document duly recorded, this
Deed of Trust and the lien hereof shall not merge in the fee simple title, toward the end that this Deed of Trust may be foreclosed as if owned by a stranger to the fee simple title. 

4.19       Time of Essence.   Time is declared to be of the essence in
this Deed of Trust, the Notes and the Loan Documents and of every part hereof and thereof. 

 4.20       No Reliance by Others on the
Premises; Single Zoning Lot and Tax Parcel.   Grantor covenants that it will not cause or permit any land, building or other improvement, or other property of any kind whatsoever which is not subject to the lien of this Deed of Trust
(regardless of whether such property is owned by Grantor) to rely on the Premises or any part thereof or any interest therein to fulfill any municipal or governmental requirement of any kind whatsoever, and Grantor hereby assigns to Beneficiary any
and all rights to give or withhold consent for all or any portion of the Premises or any interest therein to be so used. Grantor represents, warrants and covenants that no building or other improvement situated on or comprising part of the Premises
does, or at any time will, rely on any property not subject to the lien of this Deed of Trust to fulfill any governmental or municipal requirement of any kind whatsoever. Grantor shall not cause or permit to be impaired the integrity of the Premises
as a single zoning lot and one or more single tax parcels separate and apart from all other zoning lots and tax parcels. Any act or omission by Grantor which would result in a violation of any of the provisions of this Section shall be void
ab initio and of no force or effect for any purpose whatsoever. 

4.21       Future Advances.   This Deed of Trust secures all present and
future Liabilities of Grantor to the Beneficiary. The amount of present and future Liabilities includes interest, any disbursements and taxes and insurances on the Premises, plus interest thereon, and any other sums advanced in accordance with the
terms hereof or any of the Loan Documents to protect the security of this Deed of Trust or any of the Loan Documents. 
 4.22       Beneficiary Not a Joint Venturer or Partner.   Grantor and Beneficiary acknowledge and agree that in no event shall Beneficiary be deemed to be a
partner or joint venturer with Grantor. Without limitation of the foregoing, Beneficiary shall not be deemed to be such a partner or joint venturer on account of its becoming a Beneficiary in possession or exercising any rights pursuant to this Deed
of Trust or pursuant to any other instrument or document evidencing or securing any of the Liabilities secured hereby, or otherwise. 
 4.23       Inconsistency With Loan Agreement.   If there should be any irreconcilable inconsistency between the provisions of this Deed of Trust and the
provisions of the Loan Agreement, the terms and provisions of the Loan Agreement shall govern and control. 
 V. STATE LAW
PROVISIONS 
 5.1         Certain Matters Relating to Collateral
Located in the State of California.   With respect to the Collateral which is located in the State of California, notwithstanding anything contained herein to the contrary: 

(a)         Full Reconveyance.   Upon written request of
Beneficiary stating that all sums secured hereby have been paid, upon surrender to Trustee of the Notes and the original or a certified copy of this Deed of Trust for cancellation and retention, and upon payment of its fees, Trustee shall fully
reconvey, without warranty, the entire remaining Collateral then held hereunder. The recitals in such reconveyance of any matters of facts shall be conclusive proof of the truthfulness thereof. The grantee in such reconveyance may be described as
“the person or persons legally entitled thereto.” 

 (b)        
Dwellings.   No portion of the proceeds of the Loan shall be used by Grantor to finance the purchase or construction of real property containing four (4) or fewer residential units or on which four (4) or fewer residential
units are to be constructed. No portion of the Collateral is or will be a “dwelling” within the meaning of Section 10240.1 or Section 10240.2 of the California Business and Professions Code. 

(c)         Indemnity; Expenses.   The Grantor will pay or
reimburse the Trustee and the Beneficiary for all reasonable attorneys’ fees, costs and expenses incurred by either of them in any suit, action, legal proceeding or dispute of any kind in which either of them is made a party or appears as party
plaintiff or defendant, affecting the Liabilities, this Deed of Trust or the interest created herein, or the Collateral, or any appeal thereof, including, but not limited to, activities related to enforcement of the remedies of Beneficiary,
activities related to protection of Beneficiary’s collateral, any foreclosure action or exercise of the power of sale, any condemnation action involving the Collateral or any action to protect the security hereof, any bankruptcy or other
insolvency proceeding commenced by or against the Grantor, and any such amounts paid or incurred by the Trustee or the Beneficiary shall be added to the Liabilities and shall be secured by this Deed of Trust. The agreements of this subsection shall
expressly survive in perpetuity satisfaction of this Deed of Trust and repayment of the Liabilities, any release, reconveyance, discharge of foreclosure of this Deed of Trust, conveyance by deed in lieu of foreclosure, sale, and any subsequent
transfer by trustee’s conveyance of the Collateral. 
 (d)        
Supplemental Environmental Provisions.   In the event that any portion of the Collateral is determined to be “environmentally impaired” (as “environmentally impaired” is defined in California Code of Civil
Procedure Section 726.5(e)(3)) or to be an “affected parcel” (as “affected parcel” is defined in California Code of Civil Procedure Section 726.5(e)(1)), then, without otherwise limiting or in any way affecting
Beneficiary’s or Trustee’s rights and remedies under this Deed of Trust, Beneficiary may elect to exercise its right under California Code of Civil Procedure Section 726.5(a) to (i) waive its lien on such environmentally impaired
or affected portion of the Collateral, and (ii) exercise the rights and remedies of an unsecured creditor, including reduction of its claim against Grantor to judgment and any other rights and remedies permitted by law. For purposes of
determining Beneficiary’s right to proceed as an unsecured creditor under California Code of Civil Procedure Section 726.5(a), Grantor shall be deemed to have willfully permitted or acquiesced in a release or threatened release of
hazardous materials, within the meaning of California Code of Civil Procedure Section 726.5(d)(1), if the release or threatened release of hazardous materials was knowingly or negligently caused or contributed to by any lessee, occupant or user
of any portion of the Collateral and Grantor knew or should have known of the activity by such lessee, occupant or user which caused or contributed to the release or threatened release. Beneficiary shall have the right under this Deed of Trust to
allocate amounts recovered on the Liabilities first to those portions thereof other than damages and other amounts recoverable under California Code of Civil Procedure Section 736, and thereafter to damages and other amounts recoverable under
said Section. 
 (e)         Foreclosure By Power of
Sale.   Should Beneficiary elect to foreclose by exercise of the power of sale herein contained, Beneficiary shall deliver to Trustee a written declaration of default and demand for sale, and shall deposit with Trustee this Deed of
Trust and the Notes and such receipts and evidence of expenditures made and secured hereby as Trustee may require. 

 i)         Upon receipt of notice
from Beneficiary, Trustee shall cause to be recorded, published and delivered to Grantor such notice of default and election to sell as is then required by law. Trustee shall, without demand on Grantor, after lapse of such time as may then be
required by law and after recordation of such notice of default and after notice of sale having been given as required by law, sell the Collateral at the time and place of sale fixed by it in said notice of sale, either as a whole, or in separate
lots or parcels or items and in such order as Beneficiary may direct Trustee so to do, at public auction to the highest bidder for cash in lawful money of the United States payable at the time of sale. Trustee shall deliver to such purchaser or
purchasers thereof its good and sufficient deed or deeds conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matter or fact shall be conclusive proof of the truthfulness thereof.
Any person, including, without limitation, Grantor, Trustee or Beneficiary, may purchase at such sale, and Grantor hereby covenants to warrant and defend the title of such purchaser or purchasers. 

ii)        Subject to applicable law, Trustee may postpone the sale of all or any
portion of the Collateral by public announcement at the time and place of sale, and from time to time thereafter may postpone such sale by public announcement or subsequently noticed sale, and without further notice make such sale at the time fixed
by the last postponement, or may, in its discretion, give a new notice of sale. 

iii)       Trustee shall deliver to the purchaser at such sale a deed conveying the
Property or portion thereof so sold, but without any covenant or warranty, express or implied. The recitals in the deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Beneficiary shall have the right to become the
purchaser at any sale held by any Trustee or substitute or successor Trustee, or by any receiver or public officer. Any Beneficiary purchasing at any such sale shall have the right to credit the secured indebtedness owing to such Beneficiary upon
the amount of its bid entered at such sale to the extent necessary to satisfy such bid. Said Trustee may appoint an attorney-in-fact to act in its stead as Trustee to conduct sale as hereinbefore provided. Grantor authorizes and empowers the Trustee
to sell the Property, in lots or parcels or as a whole, and to execute and deliver to the purchaser or purchasers thereof good and sufficient deeds of conveyance thereto of the estate of title then existing on the Property and bills of sale with
covenants of general warranty. Grantor binds himself to warrant and forever defend the title of such purchaser or purchasers when so made by the Trustee, and agrees to accept proceeds of said sale, if any, which are payable to Grantor as provided
herein 
 (f)         Separate Sales.   The Collateral
may be sold in one or more parcels and in such manner and order as Beneficiary, in its sole discretion, may direct Trustee so to do. A sale of less than the whole of the Collateral or any defective or irregular sale made hereunder shall not exhaust
the power of sale provided for herein, and subsequent sales may be made hereunder until all obligations secured hereby have been satisfied, or the entire Collateral sold, without defect or irregularity. 

(g)         Release of and Resort to Collateral.   Beneficiary
may release, regardless of consideration and without the necessity for any notice to a consent by the holder of any subordinate lien on the Collateral, any part of the Collateral without, as to the remainder, in any way impairing, affecting,
subordinating or releasing the lien or security interests created in or 

 
evidenced by the Loan Documents or their stature as a first and prior lien and security interest in and to the Collateral. For payment of the Liabilities, Beneficiary may resort to any other
security in such order and manner as Beneficiary may elect. 

(h)         Waiver of Redemption, Notice and Marshalling of
Assets.   To the fullest extent permitted by law, Grantor hereby irrevocably and unconditionally waives and releases (i) all benefit that might accrue to Grantor by virtue of any present or future statute of limitations or law or
judicial decision exempting the Collateral from attachment, levy or sale on execution or providing for any appraisement, valuation, stay of execution, exemption from civil process, redemption or extension of time for payment, (ii) all notices
of any Event of Default or of Trustee’s election to exercise or his actual exercise of any right, remedy or recourse provided for under the Loan Documents, and (iii) any right to a marshalling of assets or a sale in inverse order of
alienation. 
 (i)         Discontinuance of
Proceedings.   If Beneficiary shall have proceeded to invoke any right, remedy or recourse permitted under the Loan Documents and shall thereafter elect to discontinue or abandon it for any reason, Beneficiary shall have the
unqualified right to do so and, in such an event, Grantor and Beneficiary shall be restored to their former positions with respect to the Indebtedness, the Obligations, the Loan Documents, the Collateral and otherwise, and the rights, remedies,
recourses and powers of Beneficiary shall continue as if the right, remedy or recourse had never been invoked, but no such discontinuance or abandonment shall waive any Event of Default which may then exist or the right of Beneficiary thereafter to
exercise any right, remedy or recourse under the Loan Documents for such Event of Default. 

(j)         No Mortgagee in Possession.   Neither the
enforcement of any of the remedies under this Deed of Trust nor any other remedies afforded to Beneficiary under the Loan Documents, at law or in equity, shall cause Beneficiary or Trustee to be deemed or construed to be a mortgagee in possession of
the Collateral, to obligate Beneficiary or Trustee to lease the Collateral or attempt to do so, or to take any action, incur any expense, or perform or discharge any obligation, duty or liability whatsoever under any of the Leases or otherwise.

 (k)         Border Zone Property.   To the best of
Grantor’s knowledge, the Collateral has not been designated as “border zone property” under the provisions of California Healthy and Safety Code, Sections 25220 et. seq. (“Border Zone Property”) and there has been no
occurrence or condition on any real property adjoining or in the vicinity of the Collateral that could cause the Collateral to be designated as Border Zone Property. 

(l)         Application of Foreclosure Sale Proceeds.   If any
foreclosure sale is effected, Trustee shall apply the proceeds of such sale in the following order of priority: First, to the costs, fees and expenses of exercising the power of sale and of sale, including, without limitation, the payment of the
Trustee’s fees and attorneys’ fees permitted pursuant to subdivision (b) of California Civil Code Section 2924d and subdivision (b) of Section 2924k; Second, to the payment of the Liabilities which are secured by this
Deed of Trust, in such order as Beneficiary shall determine in its sole discretion; Third, to satisfy the outstanding balance of obligations secured by any junior liens or encumbrances in the order of their priority; and Fourth, to the Grantor or
the Grantor’s successor in interest, or in the event the Collateral has been sold or transferred to another, to the vested owner of record at the time of the Trustee’s sale. 

 (m)         Separate and
Community Property.   Any married person who executes this Deed of Trust as a “Grantor” agrees that any money judgment which Beneficiary or Trustee obtains pursuant to the terms of this Deed of Trust or any other obligation
of that married person secured by this Deed of Trust may be collected by execution upon any separate property or community property of that person. 
 (n)         Setoff Claims.   For the avoidance of doubt, no portion of the Liabilities secured by this Deed of Trust shall be or be deemed to be
offset or compensated by all or any part of any claim, cause of action, counterclaim, or cross-claim, whether liquidated or unliquidated, that Grantor may have or claim to have against Beneficiary. Grantor hereby waives, to the fullest extent
permitted by applicable law, the benefits of California Code of Civil Procedure §431.70, which provides: 
 Where cross-demands for money have existed between persons at any point in time when neither demand was barred by the statute of limitations, and an action is thereafter commenced by one such person, the
other person may assert in the answer the defense of payment in that the two demands are compensated so far as they equal each other, notwithstanding that an independent action asserting the person’s claim would at the time of filing the answer
be barred by the statute of limitations. If the cross-demand would otherwise be barred by the statute of limitations, the relief accorded under this section shall not exceed the value of the relief granted to the other party. The defense provided by
this section is not available if the cross-demand is barred for failure to assert it in a prior action under Section 426.30. Neither person can be deprived of the benefits of this section by the assignment or death of the other. For the
purposes of this section, a money judgment is a “demand for money” and, as applied to a money judgment, the demand is barred by the statute of limitations when enforcement of the judgment is barred under Chapter 3 (commencing with
Section 683.010) of Division 1 of Title 9. 
 (p)        
Fixture Filing.   Some or all of the Collateral may be or become a fixture in which Beneficiary has a security interest under this Deed of Trust, and the purpose of this Section 5.1(p) is to create a fixture filing under
Sections 9313 and 9402 of the Uniform Commercial Code, as amended or recodified from time to time. The rights, remedies and interests of Beneficiary under this Deed of Trust and under other provisions of this Deed of Trust are independent and
cumulative, and there shall be no merger of any security interest created by the Deed of Trust with any lien created under the other provisions of this Deed of Trust. Beneficiary may elect to exercise or enforce any of its rights, remedies, or
interests under the provisions of this Deed of Trust as Beneficiary may from time to time deem appropriate. 

(q)         One Form of Action.   By exercising any of
Beneficiary’s rights or remedies under this Deed of Trust, Grantor acknowledges and agrees, to the maximum extent permitted by law, that Beneficiary shall not be deemed to have exercised any equitable right of setoff, foreclosed any statutory
banker’s lien, initiated or prosecuted any “action” to enforce the rights and obligations secured by this Deed of Trust, or the Loan Documents, as the term “action” is used in California Code of Civil Procedure
Section 726 (“Section 726”), or to have violated the “security first” principle of Section 726. Accordingly, the exercise of any or all of Beneficiary’s

 
rights and remedies under this Deed of Trust shall not in any way prejudice or affect Beneficiary’s right to initiate and complete a judicial or non-judicial foreclosure under this Deed of
Trust. This Deed of Trust evidences the consensual granting of a personal property security interest in the Reserve Accounts as permitted by the Uniform Commercial Code; the parties do not intend that the exercise by Beneficiary of any of its rights
or remedies hereunder shall have any different consequences under Section 726 than the exercise of rights or remedies under any other security agreement under which a secured party has been granted a security interest in other types of personal
property. 
 (the remainder of this page left intentionally blank) 

 IN WITNESS WHEREOF, the undersigned has duly executed and delivered this
Deed of Trust on the day and year first above written. 
  

					
	 CAMERON PARK SENIOR LIVING
 DELAWARE, LLC,
 a Delaware limited liability company

			
	 By:
	 	 /s/ Erik N. Pilegaard
	 	
	 Name:
	 	 Erik N. Pilegaard
	 	
	 Its:
	 	 Authorized Signatory
	 	

					
	 STATE OF California)
	  	
		  	)ss	  	
	 COUNTY OF El Dorado)
	  	

 On 9/12/2012, before me, Melissa Anne Billups, Notary Public personally appeared Erik N.
Pilegaard                                , personally known to me (or proved to me on
the basis of satisfactory evidence) to be the person(s) whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity(ies), and that by his signature(s) on the instrument the person(s)
or the entity upon behalf of which the person(s) acted, executed the instrument. 
 I certify under PENALTY OF PERJURY under the
laws of the State of California that the foregoing paragraph is true and correct. 
  

	
	 WITNESS my hand and seal.

	
	 /s/ Melissa A. Billups

	 Signature

	
	 Printed Name: Melissa Anne Billups

 (SEAL) 

 EXHIBIT A 
 Description of the Land 
 All that certain real property situated in the County of El
Dorado, State of California, described as follows: 
 Unincorporated Area 
 PARCEL ONE: 
 ALL THAT PORTION OF SECTIONS 2 AND 3, TOWNSHIP 09 NORTH, RANGE 09 EAST, M.
D.B.&M. DESCRIBED AS FOLLOWS: 
 PARCEL 2, AS SHOWN ON THAT CERTAIN PARCEL MAP FILED IN THE OFFICE OF THE COUNTY RECORDER, COUNTY OF EL
DORADO, STATE OF CALIFORNIA ON DECEMBER 28, 2006 IN BOOK 49 OF PARCEL MAPS AT PAGE 111. 
 EXCEPTING THEREFROM ALL THAT PORTION, CONVEYED TO THE
COUNTY OF EL DORADO IN THAT CERTAIN IRREVOCABLE OFFER OF DEDICATION AND ACCEPTANCE RECORDED JANUARY 16, 2009, AS SERIES NO. 2009-1669, OFFICIAL RECORDS. 
 ASSESSORS PARCEL NUMBER: 083-350-53-100 
 PARCEL TWO 

LOTS 1 THROUGH 64, INCLUSIVE, AS SHOWN ON THE MAP OF CAMERON PARK CONGREGATE CARE, THE DUETS, RECORDED ON SEPTEMBER 17, 2008 IN BOOK “J” OF
MAPS, AT PAGE 105, EL DORADO COUNTY RECORDS. 
 ASSESSORS PARCEL NUMBER: 083-620-01-100 THROUGH APN 083-620-64-100 INCLUSIVE 

PARCEL THREE 
 AN EASEMENT AS AN APPURTENANCE
TO PARCEL TWO ABOVE, FOR GENERAL USE, OVER LOT “R” AS SHOWN ON THE MAP OF CAMERON PARK CONGREGATE CARE, THE DUETS, RECORDED ON SEPTEMBER 17, 2008 IN BOOK “J” OF MAPS, AT PAGE 105, EL DORADO COUNTY RECORDS. 

Common Address: 3081 Ponte Morino Drive, Cameron Park, California

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