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<br />taking if an Event of Default has occurred and is continuing. The proceeds of any award, payment, or
<br />claim for damages, direct or consequential, in connection with any condemnation or other taking, whether
<br />direct or indirect, of the Property, or part thereof, or for conveyances in lieu of condemnation, are hereby
<br />assigned to and shall be paid to Lender. Lender shall be entitled to participate in and be represented by
<br />attorneys of Lender's own choice in any such action. Grantor shall deliver, or cause to be delivered, to
<br />Lender such instruments as may be requested by it from time to time to permit such participation.
<br />(b) Grantor authorizes Lender to apply such awards, payments, proceeds, or
<br />damages, after the deduction of Lender's expenses incurred in the collection of such amounts, at Lender's
<br />option, to restoration or repair of the Property, or to payment of the sums secured by this Instrument,
<br />whether or not then due, in such order as Lender, in Lender's sole and absolute discretion, directs, with the
<br />balance, if any, to Grantor. Unless Grantor and Lender otherwise agree in writing, any application of
<br />proceeds to principal shall not extend or postpone the due date of the installments of principal and interest
<br />or of taxes and insurance escrows, or change the amount of such installments. Grantor agrees to execute
<br />such further evidence of assignment of any awards, proceeds, damages, or claims arising in connection
<br />with such condemnation or taking as Lender may require.
<br />ARTICLE VIII
<br />EVENTS OF DEFAULT
<br />The occurrence of any one of the following shall be a default under this Instrument and the Loan
<br />Documents ("Event of Default"):
<br />8.1 FAILURE TO PAY INDEBTEDNESS. Any of the Indebtedness is not paid when due,
<br />whether by acceleration or otherwise.
<br />8.2 NONPERFORMANCE OR BREACH OF COVENANTS. Any covenant in this
<br />Instrument or any of the other Loan Documents is not fully and timely performed or any negative
<br />covenant is breached, or the occurrence of any default or event of default under this Instrument, the Credit
<br />Agreement, or any other Loan Document.
<br />8.3 FALSE REPRESENTATION. Any statement, representation or warranty in this
<br />Instrument or any of the other Loan Documents, any financial statement, or any other writing delivered to
<br />Lender in connection with the Indebtedness is false, misleading, or erroneous in any material respect.
<br />8.4 BANKRUPTCY OR INSOLVENCY. Grantor, or any person obligated to pay any part
<br />of the Indebtedness:
<br />(a) does not pay its debts as they become due or admits in writing its inability to pay
<br />its debts or makes a general assignment for the benefit of creditors; or
<br />(b) commences any case, proceeding, or other action seeking reorganization,
<br />arrangement, adjustment, liquidation, dissolution, or composition of it or its debts under any law relating to
<br />bankruptcy, insolvency, reorganization, or relief of debtors; or
<br />(c) in any involuntary case, proceeding, or other action commenced against it which
<br />seeks to have an order for relief entered against it, as debtor, or seeks reorganization, arrangement,
<br />adjustment, liquidation, dissolution, or composition of it or its debts under any law relating to bankruptcy,
<br />insolvency, reorganization, or relief of debtors, (i) fails to obtain a dismissal of such case, proceeding or
<br />other action within thirty (30) days of its commencement, or (ii) converts the case from one chapter of the
<br />Federal Bankruptcy Code to another chapter, or (iii) is the subject of an order for relief; or
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