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toizf.ioa 08:09 PAX l~009
<br />SUBORDINATION Ot= HEED OF TRUST O
<br />iContlnuedl Paga 2
<br />LENDER'S LIEN.- The Superior Indebtedness is Or will be secured by the Real Property and evldertced by a deed
<br />of trust, dared October 20, 2008, from Borrower to Lender Ithe "Lerdor's Lien') end recorded in Orange -
<br />Cvunty, State of North Caroline as follows:
<br />Orange County Registry RB ^, page _ on xx, 2006.
<br />As a condition to the granting of the requested financial accommodotione,• Lender has requked that the
<br />Lender'8 Lien be and remain superior to the Subordinated Oeed of Trust.
<br />REQUESTED FINANCIAL ACCOMMODATIONS. Beneficiary, who may Of may not ba the same person or• enthy
<br />as Truster, and Borrower each want Lender to provide financial accommodations to Borrower in the form of the
<br />superior lndebtedneae. Borrower and Beneficiary each represent end acknowledge to Lender that Beneficiary
<br />will benefit as a result of these financial accommodations from Lender to Borrower, and Beneficiary
<br />acknowledges receipt of vakrable consideration for entering into this Subordination.
<br />NOW THEREFORE TWE PARTIES TO THIS SUBORDINATION HEREBY AGREE AS'FOLLOWS:
<br />8UBORDtNATION. The Subordinated Deed of Trust and the Subordinated Indebtedness secured by the
<br />Sutwrdlnated Deed of Trust k and shah be subordinated in eM respects to Lender's Lien and the Superior
<br />lndebtednasa, and It is agreed that Lender's Lien obeli be end remain, at all times, prior and superior to the Aen
<br />of the Subordinated peed of Trust. 8eneficiery also subordinates to Lendar'a Lien all other Security Interests in
<br />the Real Property held by Barxrficiary, whether now extsttng a hereafter acquired. The words "Security
<br />Interest", mean and include without limitation any type of collateral aec-rcity, whether in the form of a lien,
<br />charge, mortgage, deed of trust, assignment, pledge, chattel mortgage, chattel treat, factor's Ilan, equipment
<br />trust, conditions! sale, trust receipt, Ilan or title ratentioh contract, lease of consignment intended as a security
<br />device, or any othei security ar Tien interest whatsoever, whether created by taw, contract, or otherwise.
<br />BENEFlCIARY'S REPRESENTATIONS AND WARRANTIES. Baneftclary represents and warrants to Lander that:
<br />IA1 no representations or agreements of any kind have been made to Beneftolary which would Ihnit ar qualify
<br />~in any way the forma of this Subordtnetion; IB) this Subortlinetion is executed at Borrower's request and not at
<br />the request of Lender; iC) Lender has a f+o representation to Beneficiary as to the creditworthiness of
<br />borrower; and (D) Beneficiary has est adequate means Of obtaining from Borrower on a continuing
<br />basis Information regarding Borrower' fin Ia~contliCron. eeneticlary agrees to keep adequetefy informed
<br />from such means of any facts, eve s, o r ilia ncea which Wright in any way aflect eeneflclary's risks
<br />under this Subordination, and Benefi ~ r e reel that Lander shall have no obNgetion to disclose to
<br />Beneficiary information or material acquired L in 1f voursa of its releYronshlp with ee»eficiary,
<br />BENEFICIARY WAIVERS. Beneficiary weivea r~ ' e Lender: (A1 to make, extend, renew, or
<br />modify any loan to Borrower or to grant any other insn ylal aucsc~o' dationa to Borrower whatsoever; (B) to
<br />make any pres~rtment,.protest, demand, or•notice ofr'BrLy'~k'im'~j, in 'ng notice of any nonpayment of any
<br />Superior Indebtedness secured by Lender's Lien, or notice•!of any a r nonactivn on the port of Borrower,
<br />Lender, any surety, endorser, or other guarantor in connection wit a superior indebtedness, or in connection
<br />with the creation of new or additional indabtadness; fCl to ref~rt for payment or to proceed directly or at
<br />once agalnat any person, includ+ng Borrower; ID) to proceed drectly against or exhaust arty collateral held by
<br />Lentler from Borrower, any other guarantor. or any other person; IE1 to give notice of the terms, lima, and
<br />place of any public or private sale of personal property security held by Lender from 8orrvwor or to corr~ly
<br />with any other applicable provisions of the Uniform Commercial Code; iF) to pursue any other remedy within
<br />Lender's power; or (G) to commit any act ar omission of any kind, at any time, with respect to any matter
<br />whatsoever.
<br />LENDER'S R1GH7S. Lender may take or omit any and all actions with respect to Lender's Llen without
<br />affecting whatsoever any of Lender's rights under this Subordination. In particular, without ('imitation, Lander
<br />may, wiUhout notice of any kind to Beneficiary, (A) make one or more additional secured or unsecured loans
<br />to Borrower; i6) repeatedly alter, compromise, renew, extend, accelerate, or otherwise change the time for
<br />payment or other terms of the Superior Indabtadnasa or any part of it, including Increases and decreases of the
<br />rata of interest on the Superior indabtadness; extensions may be repeated end may be for longer tha» the
<br />original loan term; tC- take and hold collateral for the payment of the Superior Indebtedness, end exchange,
<br />enforce, waive, and release any such eoHeteral, with or without the substitution of new cofleterel; (D) release,
<br />substitute, agree not to cue, or deal with any one or more of Borrower's sureties, endorsers, or guarantors on
<br />any terms or manner Lender chooses; IE1 determine how, when and what application of payments and
<br />credits, shall be made on the Superior Indebtedness; (FI apply such security arxf direct the order or manner of
<br />sate of the security, ea Lander in its discretion may determine; and IG) transfer this 5ubordinaton to another
<br />Pe-tY•
<br />DEFAULT BY BORROWER. If borrower becomes fisoNent or bankrupt, this Subordination shell remain in fttlt
<br />force and effect. Any de'tault by Borrower under the terms of the subordinated Indebtedness also shall
<br />constitute an event of default under the forma of the• Superior Indebtedness in favor of Lender.
<br />MISCELLANEOUS PROVISIONS. The following miscellaneous provtslona ere a part of this 8ubordlnstton:
<br />Amcndmants. This Subordlna[bn eonatitutes the entire understandlnp anti agreement of the parties es to
<br />the matters sat forth in this Subordinstioo. No alteration of or amendment to this Subordination shah be
<br />effective unless given in writing and signed by the party or parties sought to be charged or bound by the
<br />alteration or amendment.
<br />Attorneys' Fags; Exp9ncea. I! t_onper instituiea any suit a action Co on(ero• my of the terms oT thfa
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