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ASSIGNMENT OF RENTS � 0� 2 Q� 4 9 0
<br />Loan No: 101257690 (Continued) Page 3
<br />APPLICATION OF RENTS. All costs end expenses incurred by Lender in connection with the Property shall be for
<br />Grantor's account and Lender may pay such costa and expenses from the Rents. Lender, in its sole diacretion, shell
<br />determine the application of any end all Rents received by it; however, any such Rents rece(ved by Lender which are
<br />not appUed to such costs end expenses shall be applied to the Indebtedness. All expenditures made by Lender under
<br />this Assignment end not reimbursed from the Rents shall become a part of the Indebtedness secured by this
<br />Assignment, and shall be payeble on demand, with interest at the Note rate from dete of expenditure until paid.
<br />FULL PERFORMANCE. If Grantor pays all of the Indebtedness when due and otherwise performs all the obligations
<br />imposed upon Grantor under this Assignment, the Note, and the Related Documents, Lender shell execute and deliver to
<br />Grantor a suitable setisfaction of this Assignment end suitable statements of termination of eny financing statement on
<br />file evidencing Lender's security interest in the Rents and the Property. Any terminetion fee required by law shall be
<br />paid by Grantor, if permitted by appliceble law.
<br />LENDER'S EXPENDITURES. If any ection or proceeding is commenced that would materially affect Lender's interest in
<br />the Property or if Grantor fails to comply with any provision of this Assignment or any Related Documents, including but
<br />not limited to Grantor's failure to discharge or pey when due any emounts Grentor is required to discherge or pay under
<br />this Assignment or any Related Documents, Lender on Grantor's behalf iney (but shall not be obligated to) take any
<br />ection that Lender deems appropriete, including but not Iimited to discharging or paying all taxes, liens, security
<br />interests, encumbrances and other claims, at eny time levied or placed on the Rents or the Property and peying all coats
<br />for insuring, mainteining end preserving the Property. All such expenditures incurred or paid by Lender for such
<br />purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the dete
<br />of repayment by Grantor. All such expenses will become a part of the Indebtedneas and, et Lender's option, wfll (A)
<br />be payable on demand; (B) be added to the belence of the Note and be epportfoned among end be payable with any
<br />installment payments to become due during either (1) the term of any applicable insurence policy; or (2) the
<br />remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's
<br />maturity. The Assignment also will secure payment of these emounts. Such right shall be in addition to all other rights
<br />and remedies to which Lender may be entitled upon Default.
<br />DEFAULT. Eech of the following, at Lender's option, shall constitute en Event of Default under this Assignment:
<br />Peyment Defeuk. Borrower fails to make any payment when due under the Indebtedness.
<br />Other Defaults. Borrower or Grantor fails to comply with or to perform any other term, obligation, covenant or
<br />condition contafned in this Assignment or in eny of the Related Documents or to comply with or to perform any
<br />term, obligation, covenant or condition conteined in any other agreement between Lender and Borrower or Grantor.
<br />Defauk on Other Paymerns. Failure of Grantor within the time required by this Assignment to make ariy payment
<br />for texes or insurance, or any other peyment necessary to prevent filing of or to effect discherge of any lien.
<br />Felse Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or Grentor
<br />or on Borrower's or Grentor's behalf under this Assignment or the Releted Documents is false or misleading in any
<br />material respect, either now or at the time made or furni�Fied or becomes false or misleading at any time
<br />thereafter. ' '
<br />Defective Collateralization. This Assignment or any of the 1 Relatad Documents ceases to be in full force and effect
<br />Oncluding failure of any collateral document to create a valid end perfected security interest or lien) et any time and
<br />for any reason.
<br />Death or Insolvency. The dissolution of Grentor's (regardless of whether election to continue is madel, any
<br />member withdraws from the limited liebility company, or any other termfnation of Borrower's or Grantor's
<br />existence as e going businesa or the death of any member, the insolvency of Borrower or Grantor, the appointment
<br />of a receiver for any part of Borrower's or Grantor's property, eny assignment for the benefit of creditors, eny type
<br />of creditor workout, or the commencement of any proceeding under any benkruptcy or insolvency laws by or
<br />against Borrower or Grantor,
<br />Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial
<br />proceeding, self-help, repossession or any other method, by any creditor of Borrower or Grantor or by eny
<br />governmental agency against the Rents or eny property securing the Indebtedness. This includes e gernishment of
<br />any of Borrower's or Grantor's eccounts, (ncluding depoait eccounts, with Lender. However, this Event of Defeult
<br />shall not epply if there is a good faith dispute by Borrower or Grantor as to the validity or reasonableness of the
<br />claim which is the basis of the creditor or forfeiture proceeding and if Borrower or Grantor gives Lender written
<br />notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or
<br />forfeiture proceeding, in en emount determined by Lender, in its aole discretion, as being en adequete reserve or
<br />bond for the dispute.
<br />Property Damage or Loss. The Property is lost, stolen, substantially damaged, sold, or borrowed against.
<br />Evants Affecting Guarantor. Any of the preceding events occurs witH respect to any guerantor, endorser, surety,
<br />or accommodation party of any of the Indebtedness or eny guarentor, endorser, surety, or accommodetion party
<br />dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the
<br />Indebtedness.
<br />Adversa Chenga. A material edverse chenge occurs in Grantor's tinanciel condition, or Lender believes the
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