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Loan No: 81000967
<br />DEED OF TRUST 2 � 12 0 6 3 6 �
<br />(Continued)
<br />Page 5
<br />law.
<br />EVENTS OF DEFAULT. Eech ot the following, at Lender's option, shall constitute an Event of Default under this Deed
<br />of Trust:
<br />Paymerrt Defeult. Borrower fails to make any payment when due under the Indebtedness.
<br />Other Defauks. Borrower or Trustor fails to comply with or to perform any other term, obligation, covenant or
<br />condition contained in this Deed of Trust or in any of the Related Documents or to comply with or to perform any
<br />term, obligation, covenant or condition contained in any other egreement between Lender and Borrower or Trustor.
<br />Compliance Default. Failure to comply with eny other term, obligation, covenant or condition contained in this
<br />Deed of Trust, the Note or in any of the Related Documents.
<br />Defauk on Other Paymerrts. Failure of Trustor within the time required by this Deed of Trust to make any payment
<br />for taxes or insurence, or any other payment necessary to prevent filing of or to effect discharge of any lien.
<br />Defauk in Favor of Third Parties. Should Borrower or any Grantor default under any toan, extension of credit,
<br />security agreement, purchase or sales agreement, or eny other agreement, in favor of any other creditor or person
<br />thet may materially affect any of Borrower's or any Grantor's property or Borrower's ability to repay the
<br />Indebtedness or Borrower's or Grantor's ability to perform their respective obligetions under this Deed of Trust or
<br />any of the Related Documents.
<br />False Statements. Any warranty, representetion or statement made or furnished to Lender by Borrower or Trustor
<br />or on Borrower's or Trustor's behalf under this Deed of Trust or the Releted Documents is false or misleading in
<br />any material respect, either now or at the time mede or furnished or becomes false or misleading at any time
<br />thereafter.
<br />Defective Collaterallzation. This Deed of Trust or any of the Related Documents ceases to be in tull force and
<br />effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any
<br />time and for any reason.
<br />Deeth or Insolvency. The dissolution of Trustor's (regardless of whether election to continue is madel, any
<br />member withdraws from the limited liability compeny, or any other termination of Borrower's or Trustor's existence
<br />as a going business or the death of any member, the insolvency of Borrower or Trustor, the appointment of a
<br />receiver for any part of Borrower's or Trustor's property, any essignment for the benefit of creditors, any type of
<br />creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against
<br />Borrower or Trustor.
<br />Creditor or Forfeiture Proceedings. Commencement of foreclosure or forteiture proceedings, whether by judicial
<br />proceeding, self-help, repossession or any other method, by any creditor of Borrower or Trustor or by any
<br />governmental agency against eny property securing the Indebtedness. This includes a garnishment of any of
<br />Borrower's or Trustor's accounts, including deposit accounts, with Lender. However, this Event of Default shall
<br />not apply if there is a good feith dispute by Borrower or Trustor as to the velidity or reasonableness of the claim
<br />which is the basis of the creditor or forfeiture proceeding and if Borrower or Trustor gives Lender written notice of
<br />the creditor or forfeiture proceeding end deposits with Lender monies or a surety bond for the creditor or forfeiture
<br />proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the
<br />dispute.
<br />Breach of Other Agreement. Any breach by Borrower or Trustor under the terms of eny other egreement between
<br />Borrower or Trustor and Lender that is not remedied within any grace period provided therein, including without
<br />limitation any agreement concerning any indebtedness or other obligation of Borrower or Trustor to Lender,
<br />whether existing now or later.
<br />Everrts Affecting Guarantor. Any of the preceding events occurs with respect to eny guarantor, endorser, surety,
<br />or accommodation party of eny of the Indebtedness or any guarantor, endorser, surety, or accommodation party
<br />dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the
<br />Indebtedness.
<br />Adverse Change. A material adverse change occurs in Borrower's or Trustor's financiel condition, or Lender
<br />believes the prospect of payment or performance of the Indebtedness is impaired.
<br />Insecurity. Lender in good faith believes itself insecure.
<br />Existing Indebtedness. The payment of any installment of principal or any interest on the Existing Indebtedness is
<br />not made within the time required by the promissory note evidencing such indebtedness, or a default occurs under
<br />the instrument securing such indebtedness and is not cured during any applicable grace period in such instrument,
<br />or any suit or other action is commenced to foreclose any existing lien on the Property.
<br />RIGHTS AND REMEDIES ON DEFAULT. If an Event of Defeult occurs under this Deed of Trust, at any time thereafter,
<br />Trustee or Lender may exercise any one or more of the following rights and remedies:
<br />Acceleration Upon Defeult; Addittonal Remedies. If any Event of Default occurs as per the terms of the Note
<br />secured hereby, Lender may declare all Indebtedness secured by this Deed of Trust to be due and payable and
<br />the same shatl thereupon become due and payable without any presentment, demand, protest or notice of any
<br />kind. Thereafter, Lender may:
<br />(a) Either in person or by egent, with or without bringing any ection or proceeding, or by a receiver
<br />appointed by a court and without regard to the adequacy of its security, enter upon and take possession
<br />of the Property, or any part thereof, in its own name or in the name of Trustee, end do any acts which it
<br />deems necessary or desirable to preserve the value, marketability or rentability of the Property, or part of
<br />the Property or interest in the Property; increase the income from the Property or protect the security of
<br />the Property; and, with or without teking possession of the Property, sue for or otherwise collect the
<br />rents, issues and profits of the Property, including those past due and unpaid, and apply the same, less
<br />costs and expenses of operation end collection attorneys' fees, to any indebtedness secured by this Deed
<br />of Trust, all in such order as Lender may determine. The entering upon and taking possession of the
<br />Property, the collection of such rents, issues and profits, and the epplication thereof shall not cure or
<br />waive any default or notice of defeult under this Deed of Trust or invalidate any act done in response to
<br />such default or pursuant to such notice of default; and, notwithstanding the continuence in possession of
<br />the Property or the collection, receipt and application of rents, issues or profits, Trustee or Lender shall
<br />be entitled to exercise every right provided for in the Note or the Related Documents or by law upon the
<br />occurrence of any event of default, including the right to exercise the power of sale;
<br />(b) Commence an action to foreclose this Deed of Trust as a mortgage, appoint a receiver or specifically
<br />enforce any of the covenants hereof; and
<br />(c) Deliver to Trustee a written declaration of default and demand for sele and a written notice of default
<br />and election to cause Trustor's interest in the Property to be sold, which notice Trustee shall cause to be
<br />duly filed for record in the appropriate offices of the County in which the Property is located; and
<br />(d) With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies
<br />r , "
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