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ASSIGNMENT OF RENTS 2 010 01613
<br />(Continued) Page 2
<br />No Requirement to Act. Lender shall not be required to do any of the foregoing acts or things, and the fact that Lender shall have
<br />performed one or more of the foregoing acts or things shall not require Lender to do any other specific act or thing.
<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 oat applied to such costs and expenses shall qe 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 6e payable on demand, with interest at the Nnte rate from date of expenditure until
<br />paid.
<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 foe required by law shall be paid by Grantor, if permitted by applicable law.
<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 tol 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 Lander for
<br />such purposes will than bear interest at the rate charged under the Note from the date incurred or paid by Lender to the data of repayment
<br />by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option, will IA- be payable on demand; (B/ 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 121 the remaining term of the Note; or ICl 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.
<br />DEFAULT. Each of the following, at Lender's option, shall constitute an Event of Defaul[ under this Assignment:
<br />Payment Default. 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 condition contained in
<br />this Assignment or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition
<br />contained in any other agreement between Lender and Borrower or Grantor.
<br />^efault 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.
<br />Default in Favor of Third Parties. Borrower, any guarantor or Grantor defaults under any Ivan, extension of credit, security agreement,
<br />purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of
<br />Borrower's, any guarantor's or Grantor's property or ability to perform their respective obligations under this Assignment or any of the
<br />Related Documents.
<br />False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or Grantor or nn Borrower's
<br />yr Grantor's behalf under this Assignment or the Related Documents is false or misleading in any material respect, either now or at
<br />the time made or furnished or becomes false or misleading at any time thereafter.
<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.
<br />Death or Insolvency. The dissolution or termination of 8arrower's or Grantor's existence as a going business, the insolvency of
<br />Borrower or Grantor, the appointment of a receiver for any part of 8nrrower's or Grantor's property, any assignment for the benefit of
<br />creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or
<br />against Borrower or Grantor.
<br />Creditor or Forfeiture Proceedings. Commencement of foreclosure nr forfeiture proceedings, whether by judicial proceeding, self-help,
<br />repossession or any other method, 6y any creditor of Borrower nr Grantor or by any governmental agency agai~ist the Rents or any
<br />property securing the Indebtedness. This includes a garnishment of any of Borrower's or Grantor's accounts, including deposit
<br />accounts, with Lender. However, this Event of Defaul[ shall not apply if there is a good faith dispute by Borrower yr Grantor as to the
<br />validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower or Grantor gives
<br />Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or
<br />forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.
<br />Property Damage or Loss. Tha Property is lost, stolen, substantially damaged, sold, ar borrowed against.
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<br />Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any
<br />Guarantor dies or becomes incompetent, or revokes ar disputes the validity of, or liability under, any Guaranty of the Indebtedness.
<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.
<br />Insecurity. Lender in good faith believes itself insecure.
<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 prevision of this Assignment within the preceding twelve 1121 months, it may be cured if Grantor, after Lender sends written
<br />notice to Borrower demanding cure of such default: 111 cures the default within twenty 120) 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.
<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:
<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 that Borrower would be required to pay.
<br />Collect Rents. Lender shall have the right, without notice to Borrower or Grantor, to take possession of the Property and collect the
<br />Rents, including amounts past due and unpaid, and apply the oat proceeds, over and above Lender's costs, against the Indebtedness.
<br />In furtherance of this right, Lender shall have all the rights provided for in the Lender's Right to 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, yr through a receiver.
<br />Other Remedies. Lender shall have all other rights and remedies provided in this Assignment or the Nnte or by law.
<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 nr 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.
<br />Attorneys' Fees; Expenses:. If Lender institutes any suit or action to enforce any of the terms of this Assignment, Lender shall be
<br />entitled to recover such sum as the court may adjudge.reasonable as attorneys' fees at trial and upon any appeal. Whether br not any
<br />court action is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are
<br />necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable
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