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<br />ASSIGNMENT OF RENTS
<br />{ Continued}
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<br />200706073
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<br />Page 2
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<br />APPLICATION OF RENTS. All costs and expenses incurred by Lender in connection with the Property shall be for Grantor's account and
<br />Lender may pay such costs and expenses from the Rents. Lender, in its sole discretion, shall determine the application of any and all Rents
<br />received by it; however, any such Rents received by Lender which are not applied to such costs and expenses shall be applied to the
<br />Indebtedness. All expenditures made by Lender under this Assignment and not reimbursed from the Rents shall become a part of the
<br />Indebtedness secured by this Assignment, and shall be payable on demand, with interest at the Note rate from date of expenditure until
<br />paid.
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<br />FULL PERFORMANCE. If Grantor pays all of the Indebtedness when due and otherwise performs all the obligations imposed upon Grantor
<br />under this Assignment, the Note, and the Related Documents, Lender shall execute and deliver to Grantor a suitable satisfaction of this
<br />Assignment and suitable statements of termination of any financing statement on file evidencing Lender's security interest in the Rents and
<br />the Property. Any termination fee required by law shall be paid by Grantor, if permitted by applicable law.
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<br />lENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or if
<br />Grantor fails to comply with any provision of this Assignment or any Related Documents, including but not limited to Grantor's failure to
<br />discharge or pay when due any amounts Grantor is required to discharge or pay under this Assignment or any Related Documents, Lender
<br />on Grantor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to
<br />discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Rents or the
<br />Property and paying all costs for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lender for
<br />such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment
<br />by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (8) be
<br />added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either
<br />(1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (e) be treated as a balloon payment which will
<br />be due and payable at the Note's maturity. The Assignment also will secure payment of these amounts. Such right shall be in addition to
<br />all other rights and remedies to which Lender may be entitled upon Default.
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<br />DEFAULT. Each of the following, at Lender's option, shall constitute an Event of Default under this Assignment:
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<br />Payment Default. Grantor fails to make any payment when due under the Indebtedness.
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<br />Other Defaults. Grantor fails to comply with or to perform any other term, obligation, covenant or condition contained in this
<br />Assignment or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained
<br />in any other agreement between Lender and Grantor.
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<br />Default on Other Payments. Failure of Grantor within the time required by this Assignment to make any payment for taxes or
<br />insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien.
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<br />Default in Favor of Third Parties. Grantor defaults under any loan, extension of credit, security agreement, purchase or sales
<br />agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Grantor's property or
<br />Grantor's ability to perform Grantor's obligations under this Assignment or any of the Related Documents.
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<br />False Statements. Any warranty, representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under
<br />this Assignment or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished
<br />or becomes false or misleading at any time thereafter.
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<br />Defective Collateralization. This Assignment or any of the Related Documents ceases to be in full force and effect (including failure of
<br />any collateral document to create a valid and perfected security interest or lien) at any time and for any reason.
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<br />Death or Insolvency. The death of Grantor, the insolvency of Grantor, the appointment of a receiver for any part of Grantor's
<br />property, any assignment for the benefit of creditors, any type of creditor workout. or the commencement of any proceeding under
<br />any bankruptcy or insolvency laws by or against Grantor.
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<br />Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help,
<br />repossession or any other method, by any creditor of Grantor or by any governmental agency against the Rents or any property
<br />securing the Indebtedness. This includes a garnishment of any of Grantor's accounts, including deposit accounts, with Lender.
<br />However, this Event of Default shall not apply if there is a good faith dispute by Grantor as to the validity or reasonableness of the
<br />claim which is the basis of the creditor or forfeiture proceeding and if Grantor gives Lender written notice of the creditor or forfeiture
<br />proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by
<br />Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.
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<br />Property Damage or loss. The Property is lost, stolen, substantially damaged, sold, or borrowed against.
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<br />Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation
<br />party of any of the Indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or
<br />revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. In the event of a death, Lender, at its option,
<br />may, but shall not be required to, permit the guarantor's estate to assume unconditionally the obligations arising under the guaranty in
<br />a manner satisfactory to Lender, and, in doing so, cure any Event of Default.
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<br />Adverse Change. A material adverse change occurs in Grantor's financial condition, or Lender believes the prospect of payment or
<br />performance of the Indebtedness is impaired.
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<br />Insecurity. Lender in good faith believes itself insecure.
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<br />Cure Provisions. If any default, other than a default in payment is curable and if Grantor has not been given a notice of a breach of
<br />the same provision of this Assignment within the preceding twelve (12) months, it may be cured if Grantor, after receiving written
<br />notice from Lender demanding cure of such default: (1) cures the default within twenty (20) days; or (2) if the cure requires more
<br />than twenty (20) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default
<br />and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably
<br />practical.
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<br />RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of any Event of Default and at any time thereafter, Lender may exercise any
<br />one or more of the following rights and remedies, in addition to any other rights or remedies provided by law;
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<br />Accelerate Indebtedness. Lender shall have the right at its option to declare the entire Indebtedness immediately due and payable,
<br />including any prepayment penalty which Grantor would be required to pay.
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<br />Collect Rents. Lender shall have the right, without notice to Grantor, to take possession of the Property and collect the Rents,
<br />including amounts past due and unpaid, and apply the net proceeds, over and above Lender's costs, against the Indebtedness. In
<br />furtherance of this right. Lender shall have all the rights p_r:2vi~ed forin!h~__Lel1der's_ Right tCl ReCeive and Collect Rents Section,
<br />above. If The Rents are collected by Lender, then Grantor irrevocably designates Lender as Grantor's attorney-in-fact to endorse
<br />instruments received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds. Payments by
<br />tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made,
<br />whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in person,
<br />by agent. or through a receiver.
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<br />Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Property, with
<br />the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from
<br />the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve
<br />without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the
<br />Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a
<br />receiver.
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<br />Other Remedies. Lender shall have all other rights and remedies provided in this Assignment or the Note or by law.
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<br />Election of Remedies. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make
<br />expenditures or to take action to perform an obligation of Grantor under this Assignment. after Grantor's failure to perform, shall not
<br />affect Lender's right to declare a default and exercise its remedies.
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