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ACCORDINGLY, in consideration of the foregoing, the Company does hereby assign <br /> to the Trustee all of its right, title and interest in and to a Management Agreement, dated as of <br /> November 1, 2001, between the Company and the Manager (the "Management Agreement"), <br /> providing for the day-to-day management of the Project. <br /> The Company agrees that the Trustee does not assume any of the obligations or duties of <br /> the Company under or with respect to the Management Agreement (the "Obligations") unless <br /> and until the Trustee shall have given the Manager written notice that it has affirmatively <br /> exercised its right to assume the Obligations following the occurrence of an Event of Default <br /> under the Loan Agreement, the Indenture, the Mortgage or the Subordinate Mortgage. In the <br /> event that the Trustee does not undertake to assume the Obligations, the Trustee shall have no <br /> liability whatsoever for the performance of any of the Obligations. <br /> The Company represents and warrants that there have been no prior assignments of the <br /> Management Agreement,that the Management Agreement is a valid,enforceable agreement,that <br /> none of the parties thereto are in default thereunder and that all covenants, conditions and <br /> agreements have been performed as required therein,except those not due to be performed until <br /> after the date hereof The Company agrees that no change in the terms in the Management <br /> Agreement shall be valid without the written approval of the Trustee. The Company agrees not <br /> to assign,sell,pledge,mortgage or otherwise transfer or encumber its interest in the Management <br /> Agreement so long as this Assignment is in effect. <br /> The Company hereby irrevocably appoints the Trustee as its attorney-in-fact to demand, <br /> receive,and enforce the Company's rights with respect to the Management Agreement,to make <br /> payments thereunder and give appropriate receipts, releases and satisfactions for and on behalf <br /> of and in the name of the Company or, at the option of the Trustee in the name of the Trustee, <br /> with the same force and effect as the Company could do if this Assignment had not been made. <br /> This Assignment shall constitute a perfected, absolute and present assignment provided <br /> that the Trustee shall have no right under this Assignment to enforce the provisions of the <br /> Management Agreement until an Event of Default shall occur under the Loan Agreement, the <br /> Indenture,the Mortgage or the Subordinate Mortgage. Upon the occurrence of any such default <br /> or Event of Default,the Trustee may, without affecting any of its rights or remedies against the <br /> Company under any other instrument, document or agreement, exercise its rights under this <br /> Assignment as the Company's attorney-in-fact in any manner permitted by law, and in addition, <br /> rights and remedies available after default to a secured party under the Uniform Commercial <br /> Code,as adopted in the State of Minnesota. If notice to the Company of any intended disposition <br /> of the collateral or any other intended action is required by law in a particular instance, such <br /> notice shall be deemed commercially reasonable if given at least ten days prior to the date of <br /> intended disposition or other action. <br /> The Company hereby agrees to pay all costs and expenses (including without limitation <br /> reasonable attorneys' fees)which the Trustee may incur in exercising any of its rights under this <br /> Assignment. <br /> 2 <br />