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the Obligation or aherwiu grant arty aapaurrodation to Bortowes, wLether before, aftes or u maturity, (v) take or release arty
<br />tollazeral u seariry for arty of the Obliguioat; (vi) add or release ury maker, guarantor, rndorser, orrery or ~xhes party to arty of the ,
<br />Collatrnl or Obligation; and (wit) notify any person obligated oa arty of the Collaeral of the seariry iuaesi of tLe Bank therein and '
<br />requea such person to make paymrnt duealy to the Bank. (e) The Bank tdull Lave no duty to esatase or to withhold the exercise of
<br />arty of Ne rights, power, privt7ega and options eiprasly or itnplidtly granted to the Bank in this Agrameat, and shall not be
<br />rtsporwb]e for arty failure to do so or delay in so doing.
<br />6. EVENIS OF DEFAULT. An Evem of Default undo this Agreemrnt tthall be doomed to eris upon ithe aavrrentx of awry of
<br />the following evenu or conditions (a) default by Pledgor or 8ortawer in the performarta m observance o1' pry term, provision or
<br />oondi[ion of this Agreement, (b) default by Borrower in the due and timely payment, perfortnana of observance of arty of the
<br />Obligation; (c) arty warranty, representation or aatemem of Pkdgor 6ereiry or otherwise made or furnished to the Bank by err on
<br />behalf o[ Pledgor or Borrower in wnneaion with arty of Ne Obligations, proves to have ban false or misleading in fury material
<br />tespta whrn made or furnished; (d) arty event whidf tauhs in the sooelention of maturfry of arty intYbtednas of Borttrwa or Ph:dgor
<br />to the Sank or to arty other person under arty searity or Loan agreement, indentttre, nde or other undertaking, (e) the seizure or
<br />taking of arty of the Collateral lry arty gwemmrntal or similar authority, or the iswance of a writ., order of anxdvnent or garnishmsnt
<br />with respect thaao, or the issuance of arty injunction or order of M' Coup purporting to prohtbk the Bank from aestisirtg any of its
<br />rightt with respect to arty of the Collateral; (f) death, dissolution,vtsolvenq (or oavrrrnce of anything fn tihe opinion of the Bank
<br />evidencing insoWrnry), termination of acstrna of, appointrnrnt of a receives of any pan of the property of, aatiggnmen for the benefit
<br />of aeditort by, or the mmmrncement of arty proceeding under arty tsanlwptq, reorganization, arnngcment, itrsolvenry or other law
<br />relating to the relic( of debtors by or against Pledgor or Borrower or ury guarantor or mttxy far Bornrara under a^Y of the
<br />Obligation; (g) sale or rnambrana of arty of the Collateral; (h) arty to levy, uvdtmrnt, garnirlvnetst, kvy of aavtion or cxher
<br />process is issued against Piedgor or Bortower or the Collateral; () rntry of arty judgment againa Pledgor or Borrower or any
<br />guarantor, indorses or Wray of ury of the Obligation; (j) fat~urc of Ple:dgor or Borrower or ury guarantor or orrery of Bortower to
<br />provide the Bank with fmancial information promptly whrn requested by the Bank; (k) daermination by thr. Bank that an saieru
<br />change has oceurted in the finanaal condition of Bortower from the andition of Boroower as therecoforc meat recerrtly elisdon;d to
<br />the Bank in arty manner, or (I) good faith belief by the Bank that the Obligation ue inadequately seared or thu the prospect of
<br />payment, perforrnance or obte;rvanx of arty o1 the Obligation is impaireQ even though Borrows u nor otherwise in default.
<br />7. REMEDIES. (a) Upon the oeaarrtence of arty Event of Default, the Sank entry, without rata or demand (acept for any
<br />notice of right to are to which Bortowes mry be rntitled), declare arty or aL of the Obligation immediately due and payable ands this
<br />Agreement in default, and thereafter the Bank shall Mve the remedies of • scarred party under the Uniform Commesdal Code
<br />('UCC) ss then in effect in Colorado, including, without limitation, the right (i) to take possession of ratty of the Collaterd not tht:n in
<br />its possession, (ii) to have Ptedgor or Borrower assemble the Collateral and make it available ro the Bank u a play to be designated by
<br />the Bank which is reasonably wnvcnient to both panics, and (ib) at the Bank's Cols discretion and option, tvithout notice to Pledger or
<br />Bortower and without liability arrpt to account for property aauaUy received by a, (A) transfer to or rcgiaer in its name or the name
<br />of its nominee any of the Collateral, with or without indiction of the seariry intesesu basin aateQ and whaher or not w
<br />transkrted or regiuereQ receive the interw, inwme, efrvidrnds and othes distnbution thereon and bold thrnt or apply them to the
<br />Obligation in any order of priority, and tB) to the anent appliable, 6erease Or tuft t0 lre Qexdsed all voting and CarpOlalt poweR
<br />with respect to any of the Collateral so regiaered or transferred, inducting all rights of cotnertion, achange, sulxaiption or airy other
<br />rights, prinleges or options penaining to wch Collateral, u if the Bank vese the abso]utc owner thereof. To take peatsestion of the
<br />Collateral, the Bank may rntes upon arty prcrrtiscs and remove the Collateral therefrom. if notice is requved Ity Inv, fm days' prim
<br />written rotten of tfie time and play of arty public ale or of Ne time af~es afiie>; arty private sale or arty othes intruded elispodtion of all
<br />or any part of the Collateral is to be made shag be reasonable notice to Pledgor, unleu otherwise spedfiailly :requued by appbcble
<br />law. No such notice u necessary if the Collateral 4 perishable, thrauns to decline speedily in value or is of a type aaomarily solcl on
<br />s rewgnized market. Proceeds of arty sale or other disposition of the Calluera] mry be applied to the Obligation fn arty order of
<br />priority. (D) if the Bank in good faith believes that the Searitia Aa of 1933 or arty other cue or federal law prolubiu or restricts the
<br />aaomary manner of aerie or efistnbution of arty of the Collateral, the Sank may sell arch Collateral privately or in arty other manner
<br />domed advisable by the Sault at such prig m prices at the Bank efaamina in its sole eliscretion. Pletlgor and $ortower recogrtae
<br />that such prohbition or restriction may cruse the Collateral to have less value than b otherwise would have and slut consequently, each
<br />vale or disposition by the Bank mry result in a lower axles prig than u eLe sale were otherwise held. (c) A,t arty tale conducted
<br />purtuam hesao, the Bank array fuel! purchase the whole or arty pan of the Colluenl ao1d. (d) As a ta+pphemerud or additional
<br />remedy, the Bank shall also be e;ntitleQ without aorta or demand (e=ceps for a^Y notice of right to an to tvkucL Borrower may be
<br />rntitled) and to the extent permitted by law, (t) to aesdu arty or all of tLc rigJtu granted to the Bank in Seaioa~ S ea! this Agramrnt,
<br />or (it) to have a receiver appointed to take Burge of all err any pan of the Collut:ral, e:ereising arty or all of Ne righu grw W to the
<br />Bank in Seaioa S. (e) Pledgor shall pay to the Bank aD t~rnsa (utdudiug, witlsout limitation, legal apettse; court coat and
<br />reasonable anorneyt' fees) of or iitddemal to retaking, holding preparing far sale, selling and the hYe; and k aherwise enforcing ratty
<br />tesm or condition of this Agramrnt. All wch expenses shall be a (acct indebtadness of Pkxlgor and Borrower to the Bank, seared try
<br />the Collucral. {~ All of the Bank's righu with rcspea to the Colateral array be aercised wheNer err as the Bank shall h:rve
<br />ewrnmrnced proceedings against Borrwrer, or for the foreclosure of arty lien the Hank mry have against arty property given or pledp;ed
<br />at collateral for the Obligations, it being understood thu the Bank shall Lave the fuL tight to aelea iu remuGa and the property
<br />against which it shall proceed, svitLout my obliguioa to tnartlul assay
<br />8. WAIVER. (a) The Bank shall nor be liable far failtue to demunq present for payment, praat, give notice of protest or
<br />nonpsymrnt or other notie>e, or ate fot fury Collateral deposited haeundes, but the Bank shall give credit only for what 6 aauelly
<br />collects or receives on socount thereof; and Ne Bank shall not lz required to samine into the validity of or to esehange or to mllt:a
<br />on arty Collateral subject to this Agreemrnt or to take arty action ne«:sary to 6o1d arty corporation, issuer, or other panic liable an
<br />the Collateral; and dtlgrna is looking after, prrscrvirtg m swing vitL rrspea to the Collateral m enllsaing Ne same 4 hereby
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