Exhibit 4.23
TAX PARCEL/GPIN #s: Brunswick County 31-48
Henrico County 775-736-6146
City of Hampton 7001267
City of Richmond N000-2003/015
THIS IS A CREDIT LINE DEED OF TRUST
The maximum aggregate amount of principal to be secured at any one time is
$125,000,000.*
Name of Beneficiary: Wells Fargo Bank Minnesota, National Association
Mailing Address of Beneficiary: 213 Court Street, Suite 902
Middleton, CT 06457
DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS,
SECURITY AGREEMENT AND FIXTURE FILING
BY
COLONIAL DOWNS, L.P.,
as Grantor,
TO
DAVID F. BELKOWITZ and JAMES L. WEINBERG,
as Trustees
for the benefit of
Wells Fargo Bank Minnesota, National Association,
as Beneficiary
Securing Principal Indebtedness of $125,000,000*
Dated as of June 14, 2002
Relating to Premises in:
Brunswick County, Virginia
Henrico County, Virginia
City of Hampton, Virginia
City of Richmond, Virginia
After recording, please return to:
David F. Belkowitz, Esquire
Hirschler Fleischer
701 East Byrd Street
Richmond, Virginia 23219
*1. The total principal indebtedness of the Grantor and its affiliates is
$125,000,000 (the "Indebtedness").
2. The total value of all properties in Virginia given as security for the
Indebtedness is $33,622,155 (the "Security Properties") or 26.9% of the
Indebtedness.
3. The Virginia state recordation tax to be paid on this and
other deeds of trust concurrently being recorded in Virginia is based on
$33,622,155 (26.9% of the Indebtedness) or $__________________.
4. The total value of the property in _____________ is $__________________ or
_____% of the indebtedness.
5. The local recordation tax to be paid on this deed of trust is based on
$________ (____% of the indebtedness) or $________________________.
TABLE OF CONTENTS
PREAMBLE .......................................................................... 1
RECITALS .......................................................................... 1
AGREEMENT ......................................................................... 2
ARTICLE I
DEFINITIONS AND INTERPRETATION
SECTION 1.1 Definitions ........................................................ 2
SECTION 1.2 Interpretation ..................................................... 6
SECTION 1.3 Resolution of Drafting Ambiguities ................................. 7
ARTICLE II
GRANTS AND SECURED OBLIGATIONS
SECTION 2.1 Grant of Mortgaged Property ........................................ 7
SECTION 2.2 Assignment of Leases and Rents ..................................... 8
SECTION 2.3 Secured Obligations ................................................ 8
SECTION 2.4 Future Advances .................................................... 8
SECTION 2.5 No Release ......................................................... 8
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF GRANTOR
SECTION 3.1 Authority and Validity ............................................. 9
SECTION 3.2 Warranty of Title .................................................. 9
SECTION 3.3 Condition of Mortgaged Property .................................... 10
SECTION 3.4 Leases ............................................................. 11
SECTION 3.5 Insurance .......................................................... 11
SECTION 3.6 Charges ............................................................ 12
SECTION 3.7 Environmental ...................................................... 12
SECTION 3.8 No Conflicts, Consents, etc. ....................................... 12
SECTION 3.9 Benefit to the Grantor ............................................. 13
ARTICLE IV
CERTAIN COVENANTS OF GRANTOR
SECTION 4.1 Preservation of Corporate Existence ................................ 13
SECTION 4.2 Title .............................................................. 13
SECTION 4.3 Maintenance and Use of Mortgaged Property; Alterations ............. 14
SECTION 4.4 Notices Regarding Certain Defaults ................................. 14
SECTION 4.5 Access to Mortgaged Property, Books and Records; Other Information . 15
SECTION 4.6 Limitation on Liens; Transfer Restrictions ......................... 15
SECTION 4.7 Environmental ...................................................... 15
SECTION 4.8 Estoppel Certificates.........................................16
ARTICLE V
LEASES
SECTION 5.1 Grantor's Affirmative Covenants with Respect to Leases........16
SECTION 5.2 Grantor's Negative Covenants with Respect to Leases...........17
SECTION 5.3 Additional Requirements with Respect to New Leases............17
ARTICLE VI
CONCERNING ASSIGNMENT OF LEASES AND RENTS
SECTION 6.1 Present Assignment; License to the Grantor....................18
SECTION 6.2 Collection of Rents by the Beneficiary........................18
SECTION 6.3 No Release....................................................18
SECTION 6.4 Irrevocable Interest..........................................18
SECTION 6.5 Amendment to Leases...........................................19
ARTICLE VII
TAXES AND CERTAIN STATUTORY LIENS
SECTION 7.1 Payment of Charges............................................19
SECTION 7.2 Escrow of Taxes...............................................19
SECTION 7.3 Certain Statutory Liens.......................................19
SECTION 7.4 Stamp and Other Taxes.........................................19
SECTION 7.5 Certain Tax Law Changes.......................................19
SECTION 7.6 Proceeds of Tax Claim.........................................20
ARTICLE VIII
INSURANCE
SECTION 8.1 Required Insurance Policies and Coverages.....................20
SECTION 8.2 Delivery After Foreclosure....................................20
ARTICLE IX
CONTESTING OF PAYMENTS
SECTION 9.1 Contesting of Taxes and Certain Statutory Liens...............20
SECTION 9.2 Contesting of Insurance.......................................20
ARTICLE X
DESTRUCTION, CONDEMNATION AND RESTORATION
SECTION 10.1 Destruction...................................................21
SECTION 10.2 Condemnation..................................................21
ARTICLE XI
EVENTS OF DEFAULT AND REMEDIES
SECTION 11.1 Events of Default.....................................................................21
SECTION 11.2 Remedies in Case of an Event of Default...............................................21
SECTION 11.3 Sale of Mortgaged Property if Event of Default Occurs; Proceeds of Sale...............22
SECTION 11.4 Additional Remedies in Case of an Event of Default....................................23
SECTION 11.5 Legal Proceedings After an Event of Default...........................................23
SECTION 11.6 Remedies Not Exclusive................................................................24
ARTICLE XII
SECURITY AGREEMENT AND FIXTURE FILING
SECTION 12.1 Security Agreement....................................................................25
SECTION 12.2 Fixture Filing........................................................................25
ARTICLE XIII
FURTHER ASSURANCES
SECTION 13.1 Recording Documentation To Assure Security............................................25
SECTION 13.2 Further Acts..........................................................................26
SECTION 13.3 Additional Security...................................................................26
ARTICLE XIV
MISCELLANEOUS
SECTION 14.1 Covenants To Run with the Land........................................................26
SECTION 14.2 No Merger.............................................................................26
SECTION 14.3 Concerning Beneficiary and Trustee....................................................27
SECTION 14.4 Beneficiary May Perform; Beneficiary Appointed Attorney-in-Fact.......................27
SECTION 14.5 Expenses..............................................................................28
SECTION 14.6 Indemnity.............................................................................28
SECTION 14.7 Continuing Security Interest; Assignment..............................................29
SECTION 14.8 Termination; Release..................................................................29
SECTION 14.9 Modification in Writing...............................................................29
SECTION 14.10 Notices...............................................................................29
SECTION 14.11 Governing Law; Service of Process; Waiver of Jury Trial...............................29
SECTION 14.12 Severability of Provisions............................................................30
SECTION 14.13 Limitation on Interest Payable........................................................30
SECTION 14.14 Business Days.........................................................................30
SECTION 14.15 Relationship..........................................................................30
SECTION 14.16 Waiver of Stay........................................................................30
SECTION 14.17 No Credit for Payment of Taxes or Impositions.........................................31
SECTION 14.18 No Claims Against the Beneficiary.....................................................31
SECTION 14.19 Obligations Absolute..................................................................31
SECTION 14.20 Last Dollars Secured..................................................................31
SECTION 14.21 Trustee Provisions....................................................................32
SIGNATURE
ACKNOWLEDGMENT
SCHEDULE A Legal Description
SCHEDULE B Prior Liens
SCHEDULE C Leases
Exhibit 1 Form of Subordination, Non-Disturbance and Attornment Agreement
DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, SECURITY
AGREEMENT AND FIXTURE FILING
DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE
FILING (as amended, amended and restated, supplemented, or otherwise modified
from time to time, the "Deed of Trust"), dated as of June __, 2002, made by
COLONIAL DOWNS, L.P., a Virginia limited partnership having an office at 10515
Colonial Downs Parkway, New Kent, Virginia 23124, as grantor, assignor and
debtor (in such capacities and together with any successors in such capacities,
the "Grantor"), to DAVID F. BELKOWITZ and JAMES L. WEINBERG, either of whom may
act, having an address at Hirschler Fleischer, 701 E. Byrd Street, 15th Floor,
Richmond, Virginia 23219, as trustee (together with any successors in such
capacity, the "Trustee") for the benefit of WELLS FARGO BANK MINNESOTA, NATIONAL
ASSOCIATION, a national banking association having an office at 213 Court
Street, Suite 902, Middletown, CT 06457, in its capacity as trustee pursuant to
the Indenture (as hereinafter defined), as beneficiary, assignee and secured
party (in such capacities and together with any successors in such capacities,
the "Beneficiary").
R E C I T A L S :
A. Gameco, Inc. (the "Issuer"), certain of its Subsidiaries (as hereinafter
defined), and the Beneficiary have entered into that certain indenture, dated as
of February 8, 2002 (as amended, amended and restated, supplemented, or
otherwise modified from time to time, the "Indenture"), pursuant to which the
Issuer has issued its 11 7/8% senior secured notes due 2009 (the "Senior Secured
Notes") in the aggregate principal amount of $125,000,000. It is contemplated
that the Issuer may, after the date hereof, issue Additional Notes (as defined
in the Indenture) and Exchange Notes (as defined in the Indenture); the Exchange
Notes, together with the Additional Notes and the Senior Secured Notes, the
"Notes"), in each case, pursuant to the provisions of the Indenture.
B. The Issuer owns, directly or through its Subsidiaries, all of the issued
and outstanding equity interests of the Grantor.
C. The Grantor has, pursuant to a Supplemental Indenture dated as of the
date hereof, among other things, unconditionally guaranteed (the "Guarantee")
the obligations of the Issuer under the Indenture and the Notes.
D. The Grantor will receive substantial benefits from the execution and
delivery of, and the performance of the obligations under, the Indenture and the
Notes, and is therefore willing to enter into this Deed of Trust.
E. The Grantor is the legal owner of the Mortgaged Property (as hereinafter
defined).
F. This Deed of Trust is given by the Grantor for the benefit of the
Beneficiary for the benefit of the Holders of the Notes (collectively, the
"Secured Parties") to secure the payment and performance of all of the Secured
Obligations (as hereinafter defined).
A G R E E M E N T:
NOW THEREFORE, in consideration of the foregoing premises and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Grantor hereby covenants and agrees with the Beneficiary as
follows:
ARTICLE I
DEFINITIONS AND INTERPRETATION
SECTION 1.1 Definitions. Capitalized terms used but not otherwise defined
herein shall have the meanings assigned to such terms in the Indenture. The
following terms used in this Deed of Trust shall have the following meanings:
"ACM" shall have the meaning assigned to such term in Section 4.7(ii)
hereof.
"Affiliate" shall have the meaning assigned to such term in the Indenture.
"Alteration" shall mean any and all alterations, installations,
improvements, additions, modifications or changes of a structural nature of or
to the Premises.
"Beneficiary" shall have the meanings assigned to such term in the Preamble
hereof.
"Business Day" shall have the meaning assigned to such term in the
Indenture.
"Charges" shall mean any and all real estate, property and other taxes,
assessments and special assessments, levies, fees, all water and sewer rents and
charges and all other governmental charges or Liens imposed upon or assessed
against, and all claims (including, without limitation, landlords', carriers',
mechanics', workmen's, repairmen's, laborers', materialmen's, suppliers' and
warehousemen's Liens and other claims arising by operation of law) against, all
or any portion of the Mortgaged Property.
"Collateral Account" shall have the meaning assigned to such term in the
Indenture.
"Collateral Documents" shall have the meaning assigned to such term in the
Indenture.
"Contested Liens" shall mean, collectively, any Liens incurred in respect
of any Charges to the extent that the amounts owing in respect thereof are not
yet delinquent or are being contested and otherwise comply with the provisions
of Section 9.1 hereof.
"Contracts" shall mean, collectively, any and all right, title and interest
of the Grantor in and to any and all contracts and other general intangibles
relating to the Mortgaged Property (including, without limitation, all
reciprocal easements and/or operating agreements, covenants, conditions and
restrictions and similar agreements affecting all or any portion of the
Mortgaged Property) and all reserves, deferred payments, deposits, refunds and
claims of every kind, nature or character relating thereto.
"Deed of Trust" shall have the meaning assigned to such term in the
Preamble hereof.
"Default Rate" shall mean the rate per annum equal to the highest rate then
payable under the Indenture.
"Destruction" shall mean any and all damage to, or loss or destruction of,
the Premises or any part thereof.
"Environmental Law" shall mean any applicable federal, state, local or
municipal statute, law, rule, regulation, ordinance, code, policy or rule of
common law and any judicial or administrative interpretation thereof, including
any judicial or administrative order, consent decree or judgment binding on the
Grantor, relating to pollution or protection of the environment, or health or
safety including, without limitation, any relating to the release or threatened
release of any Hazardous Materials.
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"Event of Default" shall have the meaning assigned to such term in the
Indenture.
"Fixture" shall mean all machinery, apparatus, equipment, fittings,
fixtures, improvements and articles of personal property of every kind,
description and nature whatsoever now or hereafter attached or affixed to the
Land or any other Improvement or used in connection with the use and enjoyment
of the Land or any other Improvement or the maintenance or preservation thereof,
which by the nature of their location thereon or attachment thereto are fixtures
under the UCC or any other applicable law including, without limitation, all
utility systems, fire sprinkler and security systems, drainage facilities,
lighting facilities, all water, sanitary and storm sewer, drainage, electricity,
steam, gas, telephone and other utility equipment and facilities, pipes,
fittings and other items of every kind and description now or hereafter attached
to or located on the Land which by the nature of their location thereon or
attachment thereto are real property under applicable law, HVAC equipment,
boilers, electronic data processing, telecommunications or computer equipment,
refrigeration, electronic monitoring, water or lighting systems, power,
sanitation, waste removal, elevators, maintenance or other systems or equipment
and all additions thereto and betterments, renewals, substitutions and
replacements thereof.
"GAAP" shall have the meaning assigned to such term in the Indenture.
"Governmental Authority" shall mean any federal, state, local, foreign or
other governmental, quasi-governmental or administrative (including
self-regulatory) body, instrumentality, department, agency, authority, board,
bureau, commission, office of any nature whatsoever or other subdivision
thereof, or any court, tribunal, administrative hearing body, arbitration panel
or other similar dispute-resolving body, whether now or hereafter in existence,
or any officer or official thereof, having jurisdiction over the Grantor or the
Mortgaged Property or any portion thereof.
"Grantor" shall have the meaning assigned to such term in the Preamble
hereof.
"Grantor's Interest" shall have the meaning assigned to such term in
Section 2.2 hereof.
"Guarantee" shall have the meaning assigned to such term in Recital C
hereof.
"Guarantors" shall have the meaning assigned to such term in the Indenture.
"Hazardous Materials" shall mean any substance, chemical, material,
pollutant, waste, contaminant or constituent, which is subject to regulation
under or could give rise to liability under any Environmental Law.
"Holder" shall have the meaning assigned to such term in the Indenture.
"Improvements" shall mean all buildings, structures and other improvements
of every kind or description and any and all Alterations now or hereafter
located, attached or erected on the Land including, without limitation (i) all
Fixtures, (ii) all attachments, railroad tracks, foundations, sidewalks, drives,
roads, curbs, streets, ways, alleys, passages, passageways, sewer rights,
parking areas, driveways, fences and walls and (iii) all materials now or
hereafter located on the Land intended for the construction, reconstruction,
repair, replacement, alteration, addition or improvement of or to such
buildings, Fixtures, structures and improvements, all of which materials shall
be deemed to be part of the Improvements immediately upon delivery thereof on
the Land and to be part of the improvements immediately upon their incorporation
therein.
"Indemnified Liabilities" shall have the meaning assigned to such term in
Section 14.6(i) hereof.
"Indemnitees" shall have the meaning assigned to such term in Section
14.6(i) hereof.
3
"Indenture" shall have the meaning assigned to such term in Recital A
hereof.
"Insurance Policies" means the insurance policies and coverages required to
be maintained by the Grantor with respect to the Mortgaged Property pursuant to
Section 4.19(b) of the Indenture and all renewals and extensions thereof.
"Insurance Requirements" means, collectively, all provisions of the
Insurance Policies, all requirements of the issuer of any of the Insurance
Policies and all orders, rules, regulations and any other requirements of the
National Board of Fire Underwriters (or any other body exercising similar
functions) binding upon the Grantor and applicable to the Mortgaged Property or
any use or condition thereof.
"Issuer" shall have the meaning assigned to such term in Recital A hereof.
"Land" shall mean those certain tracts or parcels of land described in
Schedule A annexed to this Deed of Trust, together with all of the Grantor's
reversionary rights therein and all of the Grantor's rights in and to any and
all easements, rights-of-way, strips and gores of land, waters, water courses,
water rights, mineral, gas and oil rights and all power, air, light and other
rights, estates, titles, interests, privileges, liberties, servitudes, licenses,
tenements, hereditaments and appurtenances whatsoever, in any way belonging,
relating or appertaining thereto, or any part thereof, or which hereafter shall
in any way belong, relate or be appurtenant thereto.
"Landlord" shall mean any landlord, lessor, franchisor, licensor or
grantor, as applicable.
"Leases" shall mean, collectively, any and all interests of the Grantor, as
Landlord, in all leases and subleases of space, tenancies, franchise agreements,
licenses, occupancy, rental, access or concession agreements and any other
agreements pursuant to which any Person is granted a possessory interest in or
right to use or occupy all or any portion of the Mortgaged Property, in each
case whether now existing or hereafter entered into, whether or not of record,
relating in any manner to the Premises or the use or occupancy thereof and any
and all amendments, modifications, supplements, replacements, extensions,
renewals and/or guarantees, if any thereof, whether now in effect or hereafter
coming into effect.
"Lien" shall have the meaning assigned to such term in the Indenture.
"Mortgaged Property" shall have the meaning assigned to such term in
Section 2.1 hereof.
"Net Loss Proceeds" shall have the meaning assigned to such term in the
Indenture.
"Net Proceeds" shall have the meaning assigned to such term in the
Indenture.
"Notes" shall have the meaning assigned to such term in Recital A hereof.
"Officers' Certificate" shall have the meaning assigned to such term in the
Indenture.
"Permit" shall mean any and all permits, certificates, approvals,
authorizations, consents, licenses, variances, franchises or other instruments,
however characterized, of any Governmental Authority (or any Person acting on
behalf of a Governmental Authority) now or hereafter acquired or held, together
with all amendments, modifications, extensions, renewals and replacements of any
thereof issued or in any way furnished in connection with the Mortgaged Property
including, without limitation, building permits, certificates of occupancy,
environmental certificates, industrial permits or licenses and certificates of
operation.
4
"Permitted Collateral Liens" shall have the meaning assigned to such term
in Section 4.6 hereof.
"Permitted Liens" shall have the meaning assigned to such term in the
Indenture.
"Person" shall have the meaning assigned to such term in the Indenture.
"Premises" shall mean, collectively, the Land and the Improvements.
"Prior Liens" shall mean, collectively, the Liens identified in Schedule B
annexed to this Deed of Trust.
"Proceeds" shall mean, collectively, any and all cash proceeds and noncash
proceeds and shall include, without limitation, all (i) proceeds of the
conversion, voluntary or involuntary, of any of the Mortgaged Property or any
portion thereof into cash or liquidated claims, (ii) proceeds of any insurance
(except payments made to a Person, other than the Issuer or any Subsidiary
thereof, that is not a party to this Deed of Trust), indemnity, warranty,
guaranty or claim payable to the Beneficiary or to the Grantor from time to time
with respect to any of the Mortgaged Property including, without limitation, all
Net Loss Proceeds relating thereto, (iii) payments (in any form whatsoever) made
or due and payable to the Grantor from time to time in connection with any
requisition, confiscation, condemnation, seizure or forfeiture of all or any
portion of the Mortgaged Property by any Governmental Authority (or any Person
acting on behalf of a Governmental Authority) including, without limitation, all
Net Loss Proceeds relating thereto, (iv) products of the Mortgaged Property and
(v) other amounts from time to time paid or payable under or in connection with
any of the Mortgaged Property including, without limitation, refunds of real
estate taxes and assessments, including interest thereon.
"Property Material Adverse Effect" shall mean, as of any date of
determination and whether individually or in the aggregate (a) any event,
circumstance, occurrence or condition which has caused or resulted in (or would
reasonably be expected to cause or result in) a material adverse effect on the
business or operations as presently conducted at the Mortgaged Property; (b) any
event, circumstance, occurrence or condition which has caused or resulted in (or
would reasonably be expected to cause or result in) a material adverse effect on
the value or utility of the Mortgaged Property; and (c) any event, circumstance,
occurrence or condition which has caused or resulted in (or would reasonably be
expected to cause or result in) a material adverse effect on the legality,
priority or enforceability of the Lien created by this Deed of Trust or the
rights and remedies of the Beneficiary or Trustee hereunder.
"Prudent Operator" shall mean the standard of care taken by a prudent
operator of property similar in use and configuration to the Premises and
located in the locality where the Premises are located.
"Records" shall mean, collectively, any and all right, title and interest
of the Grantor in and to any and all drawings, plans, specifications, file
materials, operating and maintenance records, catalogues, tenant lists,
correspondence, advertising materials, operating manuals, warranties,
guarantees, appraisals, studies and data relating to the Mortgaged Property or
the construction of any Alteration or the maintenance of any Permit.
"Rents" shall mean, collectively, any and all rents, additional rents,
royalties, issues, cash, guaranties, letters of credit, bonds, sureties or
securities deposited under any Lease to secure performance of the Tenant's
obligations thereunder, revenues, earnings, profits and income, advance rental
payments, payments incident to assignment, sublease or surrender of a Lease,
claims for forfeited deposits and claims for damages, now due or hereafter to
become due, with respect to any Lease, any indemnification against, or
reimbursement for, sums paid and costs and expenses incurred by the Grantor
under any Lease or otherwise, and any award in the event of the bankruptcy of
any Tenant under or guarantor of a Lease.
5
"Requirements of Law" shall mean, collectively, any and all requirements of
any Governmental Authority including, without limitation, any and all orders,
decrees, determinations, laws, treaties, ordinances, rules, regulations or
similar statutes or case law.
"Secured Obligations" shall mean all obligations (whether or not
constituting future advances, obligatory or otherwise) of the Issuer and any and
all of the Guarantors from time to time arising under or in respect of this Deed
of Trust, the Indenture, the Notes and the other Collateral Documents
(including, without limitation, the obligations to pay principal, interest and
all other charges, fees, expenses, commissions, reimbursements, premiums,
indemnities and other payments related to or in respect of the obligations
contained in this Deed of Trust, the Indenture, the Notes and the other
Collateral Documents), in each case whether (i) such obligations are direct or
indirect, secured or unsecured, joint or several, absolute or contingent, due or
to become due whether at stated maturity, by acceleration or otherwise, (ii)
arising in the regular course of business or otherwise, (iii) for payment or
performance and/or (iv) now existing or hereafter arising (including, without
limitation, interest and other obligations arising or accruing after the
commencement of any bankruptcy, insolvency, reorganization or similar proceeding
with respect to the Issuer, any Guarantor or any other Person, or which would
have arisen or accrued but for the commencement of such proceeding, even if such
obligation or the claim therefor is not enforceable or allowable in such
proceeding).
"Secured Parties" shall have the meaning assigned to such term in Recital F
hereof.
"Senior Secured Notes" shall have the meaning assigned to such term in
Recital A hereof.
"Subordination Agreement" shall mean a subordination, nondisturbance and
attornment agreement substantially in the form of Exhibit 1 annexed to this Deed
of Trust.
"Subsidiaries" shall have the meaning assigned to such term in the
Indenture.
"Taking" shall mean any taking of the Mortgaged Property or any part
thereof, in or by condemnation or other eminent domain proceedings pursuant to
any law, general or special, or by reason of the temporary requisition of the
use or occupancy of the Mortgaged Property or any part thereof, by any
Governmental Authority, civil or military.
"Tax Escrow Fund" shall have the meaning assigned to such term in Section
7.2 hereof.
"Tenant" shall mean any tenant, lessee, sublessee, franchisee, licensee,
grantee or obligee, as applicable.
"UCC" shall mean the Uniform Commercial Code as in effect on the date
hereof in the jurisdiction in which the Premises are located; provided, however,
that if by reason of mandatory provisions of law, the perfection or the effect
of perfection or non-perfection of the security interest in any item or portion
of the Mortgaged Property is governed by the Uniform Commercial Code as in
effect in a jurisdiction other than the jurisdiction in which the Premises are
located, "UCC" shall mean the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such perfection
or effect of perfection or non-perfection.
SECTION 1.2 Interpretation. In this Deed of Trust, unless otherwise
specified, (i) singular words include the plural and plural words include the
singular, (ii) words importing any gender include the other gender, (iii)
references to any Person include such Person's successors and assigns and in the
case of an individual, the word "successors" includes such Person's heirs,
devisees, legatees, executors, administrators and personal representatives, (iv)
references to any statute or other law include all applicable rules, regulations
and orders adopted or made thereunder and all statutes or other laws amending,
consolidating or replacing the statute or law referred to, (v) the words
"consent," "approve" and "agree," and derivations thereof or words of
6
similar import, mean the prior written consent, approval or agreement of the
Person in question not to be unreasonably withheld, (vi) the words "include" and
"including," and words of similar import, shall be deemed to be followed by the
words "without limitation," (vii) the words "hereto," "herein," "hereof" and
"hereunder," and words of similar import, refer to this Deed of Trust in its
entirety, (viii) references to Articles, Sections, Schedules, Exhibits,
subsections, paragraphs and clauses are to the Articles, Sections, Schedules,
Exhibits, subsections, paragraphs and clauses hereof, (ix) the Schedules and
Exhibits to this Deed of Trust, in each case as amended, amended and restated,
supplemented or otherwise modified from time to time in accordance with the
provisions hereof, are incorporated herein by reference, (x) the titles and
headings of Articles, Sections, Schedules, Exhibits, subsections, paragraphs and
clauses are inserted as a matter of convenience only and shall not affect the
constructions of any provisions hereof and (xi) all obligations of the Grantor
hereunder shall be satisfied by the Grantor at the Grantor's sole cost and
expense.
SECTION 1.3 Resolution of Drafting Ambiguities. The Grantor acknowledges
and agrees that it was represented by counsel in connection with the execution
and delivery hereof, that it and its counsel reviewed and participated in the
preparation and negotiation hereof and that any rule of construction to the
effect that ambiguities are to be resolved against the drafting party (i.e.,
Beneficiary) shall not be employed in the interpretation hereof.
ARTICLE II
GRANTS AND SECURED OBLIGATIONS
SECTION 2.1 Grant of Mortgaged Property. The Grantor hereby pledges, gives,
grants, bargains, sells, assigns and conveys to the Trustee, its successors and
assigns, in trust, with powers of sale, for the use and benefit of the
Beneficiary, and hereby grants to the Beneficiary (for its benefit and for the
benefit of the other Secured Parties), a security interest in and Deed of Trust
Lien upon all of the Grantor's estate, right, title and interest in, to and
under the following property, whether now owned or held or hereafter acquired
from time to time (collectively, the "Mortgaged Property"):
(i) Land;
(ii) Improvements;
(iii) Leases;
(iv) Rents;
(v) Permits;
(vi) Contracts;
(vii) Records; and
(viii) Proceeds.
Notwithstanding the foregoing provisions of this Section 2.1, Mortgaged
Property shall not include a grant of any of the Grantor's right, title or
interest in (i) any Contract to which the Grantor is a party or any of its
rights or interests thereunder (other than (x) the right to receive any payment
of money (including without limitation accounts, general intangibles and payment
intangibles (each as defined in the UCC) or any other rights referred to in
Sections 9-406(f), 9-407(a) or 9-408(a) of the UCC and (y) any proceeds,
substitutions or replacements thereof) to the extent, but only to the extent,
that such a grant would, under the
7
terms of such Contract, result in a breach or termination of the terms of, or
constitute a default under or termination of such Contract and (ii) any Permit
to the extent, but only to the extent that, such grant shall constitute or
result in abandonment, invalidation or rendering unenforceable any right, title
or interest of the Grantor therein; provided, however, that at such time as any
Contract or Permit described in clauses (i) and (ii) of this sentence is no
longer subject to such restriction, such applicable Contract or Permit shall
(without any act or delivery by any Person) constitute Mortgaged Property
hereunder.
TO HAVE AND TO HOLD the Mortgaged Property, together with the rights, privileges
and appurtenances thereto belonging unto (i) Trustee, his substitutes or
successors, forever, to the extent the same constitutes real property or an
interest therein and (ii) Beneficiary, to the extent the same does not
constitute real property or an interest therein, in either case for the benefit
of Beneficiary and Beneficiary's successors and assigns forever, for the purpose
of securing payment and performance by Grantor of the Secured Obligations, and
Grantor hereby binds itself and its successors and assigns to warrant and
forever defend the Mortgaged Property unto each of the Trustee and Beneficiary,
their substitutes, successors and assigns, as the case may be, against the claim
or claims of all persons claiming or to claim the same or any part thereof.
SECTION 2.2 Assignment of Leases and Rents. During the term hereof, the
Grantor absolutely, presently, unconditionally and irrevocably pledges, grants,
sells, conveys, delivers, hypothecates, assigns, transfers and sets over to the
Beneficiary, and grants to the Beneficiary, subject to the terms of Article VI
hereof, all of the Grantor's estate, right, title, interest, claim and demand,
as Landlord, under any and all of the Leases including, without limitation, the
following (such assigned rights, the "Grantor's Interest"):
(i) the immediate and continuing right to receive and collect Rents
payable by the Tenants pursuant to the Leases;
(ii) all claims, rights, powers, privileges and remedies of the
Grantor, whether provided for in the Leases or arising by statute or at law
or in equity or otherwise, consequent on any failure on the part of the
Tenants to perform or comply with any term of the Leases including damages
or other amounts payable to the Grantor as a result of such failure;
(iii) all rights to take all actions upon the happening of a default
under the Leases as shall be permitted by the Leases or by law including,
without limitation, the commencement, conduct and consummation of
proceeding at law or in equity; and
(iv) the full power and authority, in the name of the Grantor or
otherwise, to enforce, collect, receive and receipt for any and all of the
foregoing and to take all other actions whatsoever which the Grantor, as
Landlord, is or may be entitled to take under the Leases.
SECTION 2.3 Secured Obligations. This Deed of Trust secures, and the
Mortgaged Property is collateral security for, the payment and performance in
full when due of the Secured Obligations.
SECTION 2.4 Future Advances. This Deed of Trust shall secure future
advances. The maximum aggregate amount of all advances of principal under the
Indenture (which advances are obligatory to the extent the conditions set forth
in the Indenture relating thereto are satisfied) that may be outstanding
hereunder at any time is $125,000,000 plus interest thereon, collection costs,
sums advanced for the payment of taxes, assessments, maintenance and repair
charges, insurance premiums and any other reasonable costs incurred to protect
the security encumbered hereby or the Lien hereof, reasonable expenses incurred
by the Beneficiary by reason of any default by the Grantor under the terms
hereof, together with all other sums secured hereby.
SECTION 2.5 No Release. Nothing set forth in this Deed of Trust shall
relieve the Grantor from the performance of any term, covenant, condition or
agreement on the Grantor's part to be performed or
8
observed under or in respect of any of the Mortgaged Property or from any
liability to any Person under or in respect of any of the Mortgaged Property or
shall impose any obligation on the Beneficiary or any other Secured Party to
perform or observe any such term, covenant, condition or agreement on the
Grantor's part to be so performed or observed or shall impose any liability on
the Beneficiary or any other Secured Party for any act or omission on the part
of the Grantor relating thereto or for any breach of any representation or
warranty on the part of the Grantor contained in this Deed of Trust, the
Indenture, the Notes or the Collateral Documents, or under or in respect of the
Mortgaged Property or made in connection herewith or therewith. The obligations
of the Grantor contained in this Section 2.5 shall survive the termination
hereof and the discharge of the Grantor's other obligations under this Deed of
Trust and the Indenture, the Notes and the Collateral Documents.
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF GRANTOR
SECTION 3.1 Authority and Validity.
The Grantor represents and warrants that as of the date hereof:
(i) it is duly organized or formed, validly existing and, if applicable, in
good standing under the laws of the jurisdiction of its organization;
(ii) it is duly qualified to transact business and is in good standing in
the state in which the Mortgaged Property is located;
(iii) it has full corporate or other organizational power and lawful
authority to execute and deliver this Deed of Trust and to mortgage and grant a
Lien on and security interest in the Mortgaged Property and otherwise assign the
Grantor's Interest and otherwise perform its obligations as contemplated herein,
and all corporate and governmental actions, consents, authorizations and
approvals necessary or required therefor have been duly and effectively taken or
obtained; and
(iv) this Deed of Trust is a legal, valid and binding obligation of the
Grantor, enforceable against the Grantor in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency or similar
laws affecting the enforcement of creditors' rights generally or by equitable
principles relating to enforceability.
SECTION 3.2 Warranty of Title. The Grantor represents and warrants that:
(i) it has good fee simple title to the Premises and the Landlord's
interest and estate under or in respect of the Leases and good title to the
interest it purports to own or hold in and to each of the Permits, the Contracts
and the Records, in each case subject to no Liens, except for Permitted
Collateral Liens;
(ii) it has good title to the interest it purports to own or hold in and to
all rights and appurtenances to or that constitute a portion of the Mortgaged
Property, except for Permitted Collateral Liens;
(iii) it is in compliance with each term, condition and provision of any
obligation of the Grantor which is secured by the Mortgaged Property or the
noncompliance with which would result in a Property Material Adverse Effect; and
9
(iv) this Deed of Trust creates and constitutes a valid and enforceable
first priority Lien on the Mortgaged Property subject to Permitted Collateral
Liens, and, to the extent any of the Mortgaged Property shall consist of
Fixtures, a first priority security interest in the Fixtures, which first
priority Lien and first priority security interest are subject only to Permitted
Collateral Liens.
SECTION 3.3 Condition of Mortgaged Property. The Grantor represents and
warrants that:
(i) there has been issued and there remains in full force and effect
subject to no revocation, suspension, forfeiture or modification, each and every
Permit necessary for the present use, operation and occupancy of the Premises by
the Grantor and its Tenants and the conduct of their respective businesses and
all required zoning, building code, land use, environmental and other similar
Permits, except where the failure to be so issued and to be in full force and
effect would not result in a Property Material Adverse Effect;
(ii) the Premises and the present and contemplated use and occupancy
thereof comply with all applicable zoning ordinances, building codes, land use
laws, set back or other development and/or use requirements of Governmental
Authorities except where such noncompliance would not result in a Property
Material Adverse Effect;
(iii) the Premises are served by all utilities (including, without
limitation, water and sewer systems) necessary for the present use thereof, and
all utility services are provided by public or private utilities and the
Premises have accepted or are equipped to accept such utility services and the
Grantor has not received notice of termination of such utility service, except
where the failure to be so served would not result in a Property Material
Adverse Effect;
(iv) the Grantor has access to the Premises from roads sufficient to allow
the Grantor and its Tenants and invitees to conduct their respective businesses
at the Premises in accordance with sound commercial practices and the Grantor
has not received notice of termination of such access, except where the failure
to have such access would not result in a Property Material Adverse Effect;
(v) the Grantor has not received notice of any Taking or the commencement
or pendency of any action or proceeding therefor, other than such Takings as
would not result in a Property Material Adverse Effect;
(vi) there has not occurred any Destruction of the Premises or any portion
thereof as a result of any fire or other casualty that, as of the date hereof,
has not been repaired in all material respects, other than such Destruction as
would not have a Property Material Adverse Effect;
(vii) there are no disputes regarding boundary lines, location,
encroachments or possession of any portions of the Mortgaged Property and no
state of facts exists which could give rise to any such claim other than such
disputes as would not result in a Property Material Adverse Effect;
(viii) all liquid and solid waste disposal, septic and sewer systems
located on the Premises are in a good and safe condition and repair and in
compliance with all Requirements of Law, except where the failure to so comply
would not result in a Property Material Adverse Effect;
(ix) no portion of the Premises is located in an area identified by the
Federal Emergency Management Agency or any successor thereto as an area having
special flood hazards pursuant to the Flood Insurance Acts or, if any portion of
the Premises is located within such area, the Grantor has obtained the insurance
prescribed in Article VIII hereof;
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(x) the Premises are assessed for real estate tax purposes as one or more
wholly independent tax lot or lots, separate from any adjoining land or
improvements not constituting a portion of such lot or lots, and no other land
or improvements are assessed and taxed together with the Premises or any portion
thereof, other than such cases where the failure to be so assessed would not
result in a Property Material Adverse Effect; and
(xi) there are no options or rights of first refusal to purchase or acquire
all or any portion of the Mortgaged Property, other than such options or rights
of first refusal as would not result in a Property Material Adverse Effect.
SECTION 3.4 Leases. The Grantor represents and warrants that as of the date
hereof:
(i) the Leases identified in Schedule C attached hereto are the only Leases
in existence on the date hereof relating to the Premises;
(ii) true copies of such Leases have been previously delivered to the
Beneficiary and there are no agreements with any Tenant under such Leases other
than those agreements expressly set forth therein;
(iii) the Grantor is the sole owner of all of the Grantor's Interest in
such Leases;
(iv) each of such Leases is in full force and effect, constitutes a legal,
valid and binding obligation of the Grantor and the applicable Tenant
thereunder, and is enforceable against the Grantor and such Tenant in accordance
with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting the enforcement of creditors'
rights generally or by equitable principles relating to enforceability;
(v) there is no default under any of such Leases and there is existing no
condition which with the giving of notice or passage of time or both would cause
a default thereunder;
(vi) all Rents due under such Leases have been paid in full;
(vii) none of the Rents reserved under such Leases have been assigned or
otherwise pledged or hypothecated except in favor of the Beneficiary pursuant to
the provisions hereof;
(viii) none of the Rents (other than any security deposit collected in
accordance with the provisions of the applicable Lease) have been collected for
more than one (1) month in advance;
(ix) there exists no offsets or defenses to the payment of any portion of
the Rents and the Grantor owes no monetary obligation to any Tenant under any
such Lease;
(x) the Grantor has received no notice from any Tenant challenging the
validity or enforceability of any such Lease;
(xi) no such Lease contains any option to purchase, right of first refusal
to purchase, right of first refusal to relet, or any other similar provision;
and
(xii) each such Lease is subordinate to this Deed of Trust either pursuant
to its terms or pursuant to a recordable Deed of Trust.
SECTION 3.5 Insurance. The Grantor represents and warrants that, except
where the failure of clauses (i), (ii) or (iii) hereof to be true would not have
a Property Material Adverse Effect, (i) the Premises
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and the use, occupancy and operation thereof comply with all Insurance
Requirements and there exists no default under any Insurance Requirement, (ii)
all premiums due and payable with respect to the Insurance Policies have been
paid, (iii) all Insurance Policies are in full force and effect and the Grantor
has not received notice of violation or cancellation thereof and (iv) all
insurance certificates required pursuant to the Indenture have been delivered to
the Beneficiary.
SECTION 3.6 Charges. The Grantor represents and warrants that all Charges
imposed upon or assessed against the Mortgaged Property have been paid and
discharged except to the extent such Charges constitute a Lien not yet due and
payable or to the extent such Charges are being contested in accordance with
Section 9.1 hereof.
SECTION 3.7 Environmental. The Grantor represents and warrants that:
(i) it has obtained all Permits which are necessary with respect to
the ownership and operation of its business and the Mortgaged Property
under any and all applicable Environmental Laws and is in compliance with
all terms and conditions thereof, except where the failure so to obtain or
to be in compliance would not result in a Property Material Adverse Effect;
(ii) it is in compliance with any and all applicable Environmental
Laws including, without limitation, all other limitations, restrictions,
conditions, standards, prohibitions, requirements, obligations, schedules
and timetables contained in the Environmental Laws, except where the
failure so to be in compliance would not result in a Property Material
Adverse Effect;
(iii) there is no civil, criminal or administrative action, suit,
demand, claim, hearing, notice of violation, investigation, proceeding,
notice of demand letter pending or threatened against it or any Affiliate
under the Environmental Laws which would result in a fine, penalty or other
cost or expense other than such instances that would not result in a
Property Material Adverse Effect; and
(iv) there are no past or present events, conditions, circumstances,
activities, practices, incidents, actions or plans which may interfere with
or prevent compliance with the Environmental Laws, or which may give rise
to any common law or legal liability including, without limitation,
liability under the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended, or any other Environmental Law or
related common law theory or otherwise form the basis of any claim, action,
demand, suit, proceeding, hearing or notice of violation, study or
investigation, based on or related to the manufacture, processing,
distribution, use, generation, treatment, storage, disposal, transport or
handling, or the emission, discharge, release or threatened release into
the environment, of any Hazardous Materials which would result in a fine,
penalty or other cost or expense other than such instances that would not
result in a Property Material Adverse Effect .
SECTION 3.8 No Conflicts, Consents, etc. Neither the execution and delivery
hereof by the Grantor nor the consummation of the transactions herein
contemplated nor the fulfillment of the terms hereof (i) violates the terms of
any agreement, indenture, mortgage, deed of trust, equipment lease, instrument
or other document to which the Grantor is a party, or by which it may be bound
or to which any of its properties or assets may be subject, (ii) conflicts with
any Requirement of Law applicable to the Grantor or its property or (iii)
results in or requires the creation or imposition of any Lien (other than the
Lien contemplated hereby) upon or with respect to any of the Mortgaged Property,
except where such violation, conflict, creation or imposition would not have a
Property Material Adverse Effect. No consent of any party (including, without
limitation, equityholders or creditors of the Grantor) and no consent,
authorization, approval, license or other action by, and no notice to or filing
with, any Governmental Authority or regulatory body or other Person (other than
with respect to any required Permits) is required for (i) the granting of a
mortgage Lien on and security interest in the Mortgaged Property by the Grantor
granted by it pursuant to this Deed of Trust or for
12
the execution, delivery or performance hereof by the Grantor except for the
filing of this Deed of Trust and the other filings contemplated hereby or (ii)
the exercise by the Beneficiary of the remedies in respect of the Mortgaged
Property pursuant to this Deed of Trust other than those required by law in
connection with the exercise of the applicable remedy.
SECTION 3.9 Benefit to the Grantor. The Grantor represents and warrants
that it will receive substantial benefit as a result of the execution, delivery,
and performance of the Indenture, the Notes and the Collateral Documents.
ARTICLE IV
CERTAIN COVENANTS OF GRANTOR
SECTION 4.1 Preservation of Corporate Existence. The Grantor shall:
(i) preserve and maintain in full force and effect its existence and
good standing under the laws of the jurisdiction of its organization;
(ii) preserve and maintain in full force and effect its qualification
to transact business and good standing in the state in which the Mortgaged
Property is located; and
(iii) preserve and maintain in full force and effect all consents,
authorizations and approvals necessary or required of any Governmental
Authority or any other Person relating to the execution, delivery and
performance hereof, except where the failure to do so would not result in a
Property Material Adverse Effect.
SECTION 4.2 Title. The Grantor shall:
(i) (A) keep in effect all material rights and appurtenances to or
that constitute a part of the Mortgaged Property and (B) protect, preserve
and defend its interest in the Mortgaged Property and title thereto, except
against Permitted Collateral Liens (other than the Lien created by this
Deed of Trust);
(ii) (A) comply, in all material respects, with each of the terms,
conditions and provisions of any obligation of the Grantor which is secured
by the Mortgaged Property, except where the failure to so comply would not
result in a Property Material Adverse Effect, or the noncompliance with
which may result in the imposition of a Lien on the Mortgaged Property, (B)
forever warrant and defend to the Beneficiary the Lien and security
interests created and evidenced hereby and the validity and priority hereof
in any action or proceeding against the claims of any and all Persons
whomsoever affecting or purporting to affect the Mortgaged Property or any
of the rights of the Beneficiary hereunder, except against Permitted
Collateral Liens (other than the Lien of this Deed of Trust), and (C)
maintain a valid and enforceable first priority Lien, except for Permitted
Collateral Liens (other than the Lien of this Deed of Trust) on the
Mortgaged Property and, to the extent any of the Mortgaged Property shall
consist of Fixtures, a first priority security interest in the Mortgaged
Property, which first priority Lien and security interest shall be subject
only to Permitted Collateral Liens; and
(iii) immediately upon obtaining knowledge of the pendency of any
proceedings for the eviction of the Grantor from the Mortgaged Property or
any part thereof by paramount title or otherwise questioning the Grantor's
right, title and interest in, to and under the Mortgaged Property as
13
warranted in this Deed of Trust, or of any condition that could give rise
to any such proceedings, notify the Beneficiary thereof. The Beneficiary
may participate in such proceedings and the Grantor will deliver or cause
to be delivered to the Beneficiary all instruments requested by the
Beneficiary to permit such participation. In any such proceedings, the
Beneficiary may be represented by counsel reasonably satisfactory to the
Beneficiary at the reasonable expense of the Grantor. If, upon the
resolution of such proceedings, the Grantor shall suffer a loss of the
Mortgaged Property or any part thereof or interest therein and title
insurance proceeds shall be payable in connection therewith, such proceeds
are hereby assigned to and shall be paid to the Beneficiary for deposit
into the Collateral Account and shall be applied in the manner applicable
to Net Loss Proceeds in accordance with the provisions of Sections 4.16,
11.02, and 10.05(c) of the Indenture.
SECTION 4.3 Maintenance and Use of Mortgaged Property; Alterations.
(i) Maintenance. The Grantor shall cause the representations and
warranties set forth in Section 3.3 hereof to continue to be true in each and
every respect and shall pay or cause to be paid when due all Charges, costs and
expenses relating thereto, other than such Charges being contested in accordance
with Section 9.1 hereof.
(ii) Maintenance of Premises. The Grantor shall not commit or suffer
any waste on the Premises. The Grantor shall, at all times, maintain the
Premises in good working order, condition and repair, reasonable wear and tear
excepted, and shall use commercially reasonable efforts to make or cause to be
made all repairs, structural or nonstructural, which are necessary or
appropriate in the conduct of the Grantor's business. The Grantor shall not,
except as permitted in Section 4.3(iii) hereof, alter the occupancy or use of
all or any portion of the Premises without the prior written consent of the
Beneficiary, which consent shall not be unreasonably withheld. Except to the
extent permitted pursuant to the provisions of Section 4.3(iii) hereof, the
Grantor shall not remove, demolish or alter the structural character of any
Improvement now or hereafter erected upon all or any portion of the Premises, or
permit any such removal, demolition or alteration, without the prior written
consent of the Beneficiary, which consent shall not be unreasonably withheld.
(iii) Alterations. The Grantor shall not, without the prior written
consent of the Beneficiary, which consent shall not be unreasonably withheld,
make any Alteration to the Premises except as permitted by Sections 10.04 and
10.06 of the Indenture. Whether or not the making of any Alteration shall
require the consent of the Beneficiary pursuant to the immediately preceding
sentence, the Grantor shall (A) complete each Alteration promptly, in a good and
workmanlike manner and in compliance, in all material respects, with all
applicable local laws, ordinances and requirements and (B) pay when due all
claims for labor performed and materials furnished in connection with such
Alteration, unless contested in accordance with the provisions of Article IX
hereof.
(iv) Permits. The Grantor shall maintain, or cause to be maintained,
in full force and effect all Permits contemplated by and subject to Section
3.3(i) hereof. Unless and to the extent contested by the Grantor in accordance
with the provisions of Article IX hereof, the Grantor shall comply, in all
material respects, with all requirements set forth in the Permits and all
Requirements of Law applicable to all or any portion of the Mortgaged Property
or the condition, use or occupancy of all or any portion thereof or any recorded
deed of restriction, declaration, covenant running with the land or otherwise,
now or hereafter in force, subject to the provisions of Section 3.3 hereof.
(v) Zoning. The Grantor shall not initiate, join in, or consent to
any change in the zoning or any other permitted use classification of the
Premises without the prior written consent of the Beneficiary, which consent
shall not be unreasonably withheld.
SECTION 4.4 Notices Regarding Certain Defaults. The Grantor shall,
promptly upon receipt of any written notice regarding (i) any default by the
Grantor relating to the Mortgaged Property or any
14
portion thereof or (ii) the failure to discharge any of Grantor's obligations
with respect to the Mortgaged Property or any portion thereof described herein,
furnish a copy of such notice to the Beneficiary.
SECTION 4.5 Access to Mortgaged Property, Books and Records; Other
Information. Upon request to the Grantor, the Beneficiary, its agents,
accountants and attorneys shall have full and free access to visit and inspect,
as applicable, during normal business hours and such other reasonable time as
may be requested by the Beneficiary to all of the Mortgaged Property including,
without limitation, all of the books, correspondence and records of the Grantor
relating thereto. The Beneficiary and its representatives may examine the same,
take extracts therefrom and make photocopies thereof. The Grantor shall, at any
and all times, within a reasonable time after written request by the
Beneficiary, furnish or cause to be furnished to the Beneficiary, in such manner
and in such detail as may be reasonably requested by the Beneficiary, additional
information with respect to the Mortgaged Property.
SECTION 4.6 Limitation on Liens; Transfer Restrictions. The Grantor
may not, without the prior written consent of the Beneficiary, further mortgage,
encumber, hypothecate, sell, convey or assign all or any part of the Mortgaged
Property or suffer or allow any of the foregoing to occur by operation of law or
otherwise; provided, however, that the Grantor shall have the right to suffer to
exist the following Liens in respect of the Mortgaged Property: (i) Prior Liens
(but not extensions, amendments, supplements or replacements of Prior Liens
unless (A) extended, amended, supplemented or replaced in a manner permitted by
the Indenture or (B) consented to by the Beneficiary which consent shall not be
unreasonably withheld), (ii) the Lien and security interest created by this Deed
of Trust or any other Collateral Document, (iii) Contested Liens, (iv) Liens
described in clause (9) of the definition of Permitted Liens (provided, however,
that such Liens shall not extend to or cover any Mortgaged Property other than
equipment subject to Capital Leases, Obligations or Purchase Money Obligations
incurred in accordance with the provisions of the Indenture) or clause (4) of
the definition of Permitted Liens, and (v) Leases to the extent permitted
pursuant to the provisions of Article V hereof (the Liens described in clauses
(i) through (v) of this sentence, collectively, "Permitted Collateral Liens").
SECTION 4.7 Environmental.
(i) Hazardous Materials. The Grantor shall (A) comply with any and all
present and future Environmental Laws applicable to the Mortgaged Property, (B)
not release, store, treat, handle, generate, discharge or dispose of any
Hazardous Materials at, on, under or from the Mortgaged Property in violation of
or in a manner that could result in any material liability under any present and
future Environmental Law and (C) take all necessary steps to initiate and
expeditiously complete all remedial, corrective and other action to eliminate
any such effect. In the event the Grantor fails to comply with the covenants in
the preceding sentence, the Beneficiary may, in addition to any other remedies
set forth herein, as agent for the Grantor and at the Grantor's sole cost and
expense, cause any remediation, removal or response action relating to Hazardous
Materials required by applicable Environmental Laws to be taken and the Grantor
shall provide to the Beneficiary and its agents and employees access to the
Mortgaged Property for such purpose. Any reasonable costs or expenses incurred
by the Beneficiary for such purpose shall be immediately due and payable by the
Grantor and shall bear interest at the Default Rate. The Beneficiary shall have
the right at any time when an Event of Default shall have occurred and be
continuing and at such other times when a potential violation of any present or
future Environmental Law exists which in the Beneficiary's reasonable judgment
could result in any material liability or obligation under such Environmental
Law, at the sole cost and expense of the Grantor, to conduct an environmental
audit of the Mortgaged Property by such persons or firms appointed by the
Beneficiary, and the Grantor shall cooperate in all respects in the conduct of
such environmental audit, including, without limitation, by providing access to
the Mortgaged Property and to all records relating thereto. To the extent that
any such environmental audit identifies conditions which in the Beneficiary's
reasonable judgment would result in any material liability or obligation under
any present or future Environmental Law, the Grantor agrees to expeditiously
correct any such violation or respond to conditions giving rise to such
liability or obligations in a manner which complies in all material respects
with
15
the Environmental Laws and mitigates associated health and environmental risks.
The Grantor shall indemnify and hold the Beneficiary and each of the other
Secured Parties harmless from and against all loss, cost, damage or reasonable
expense (including, without limitation, reasonable attorneys' and consultants'
fees and disbursements) that the Beneficiary or any other Secured Party may
sustain by reason of the assertion against the Beneficiary or any Secured Party
by any party of any claim relating to such Hazardous Materials on, under or from
the Mortgaged Property or actions taken with respect thereto as authorized
hereunder, except to the extent arising from the gross negligence or willful
misconduct of the Beneficiary or any other Secured Party. The foregoing
indemnification shall survive repayment of all Secured Obligations and any
release or assignment hereof; and
(ii) Asbestos. The Grantor shall not install nor permit to be
installed in or removed from the Mortgaged Property, asbestos or any
asbestos-containing material (collectively, "ACM") except in compliance, in all
material respects, with all applicable Environmental Laws, and with respect to
any ACM currently present in the Mortgaged Property, the Grantor shall promptly
either (A) remove any ACM which such Environmental Laws require to be removed or
(B) otherwise comply, in all material respects, with such Environmental Laws
with respect to such ACM, all at the Grantor's sole cost and expense. If the
Grantor shall fail so to remove any ACM or otherwise comply, in all material
respects, with such laws or regulations, the Beneficiary may, in addition to any
other remedies set forth herein, take reasonable or necessary steps to eliminate
any ACM from the Mortgaged Property or otherwise comply, in all material
respects, with applicable law, regulations or orders and the Grantor shall
provide to the Beneficiary and its agents and employees access to the Mortgaged
Property for such purpose. Any reasonable costs or expenses incurred by the
Beneficiary for such purpose shall be immediately due and payable by the Grantor
and bear interest at the Default Rate. The Grantor shall indemnify and hold the
Beneficiary and the other Secured Parties harmless from and against all loss,
cost, damage and expense (including, without limitation, reasonable attorneys'
and consultants' fees and disbursements) that the Beneficiary or the other
Secured Parties may sustain, as a result of the presence of any ACM and any
removal thereof or compliance with all applicable Environmental Laws, except to
the extent arising from the gross negligence or willful misconduct of the
Beneficiary or any other Secured Party. The foregoing indemnification shall
survive repayment of all Secured Obligations and any release or assignment
hereof.
SECTION 4.8 Estoppel Certificates. The Grantor shall, from time to
time, upon thirty (30) days' prior written reasonable request of the
Beneficiary, execute, acknowledge and deliver to the Beneficiary an Officers'
Certificate stating that this Deed of Trust, the Indenture, the Notes and the
Collateral Documents are unmodified and in full force and effect (or, if there
have been modifications, that this Deed of Trust, the Indenture, the Notes and
the Collateral Documents, as applicable, is or are in full force and effect as
modified and setting forth such modifications) and stating the date to which
principal and interest have been paid on the Notes.
ARTICLE V
LEASES
SECTION 5.1 Grantor's Affirmative Covenants with Respect to Leases.
With respect to each Lease, the Grantor shall:
(i) observe and perform, in all material respects, all the
obligations imposed upon the Landlord under such Lease;
(ii) promptly send copies to the Beneficiary of all notices of default
which the Grantor shall send or receive thereunder; and
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(iii) enforce all of the terms, covenants and conditions contained in
such Lease upon the part of the Tenant thereunder to be observed or
performed to the extent it would be commercially reasonable to do so.
SECTION 5.2 Grantor's Negative Covenants with Respect to Leases. With
respect to each Lease, the Grantor shall not, without the prior written consent
of the Beneficiary, which consent shall not be unreasonably withheld:
(i) receive or collect, or permit the receipt or collection of, any
Rent under such Lease more than one (1) month in advance of the respective
period in respect of which such Rent is to accrue, except:
(A) in connection with the execution and delivery of such Lease
(or of any amendment to such Lease), Rent thereunder may be
collected and received in advance in an amount not in
excess of one (1) month's Rent;
(B) the amount held by Landlord as a reasonable security
deposit thereunder; and
(C) any amount received and collected for escalation and other
charges in accordance with the terms of such Lease;
(ii) assign, transfer or hypothecate (other than to the Beneficiary
hereunder) any Rent under such Lease whether then due or to accrue in the
future or the interest of the Grantor as Landlord under such Lease;
(iii) enter into any amendment or modification of such Lease which
would materially decrease the unexpired term thereof or decrease the amount
of the Rents payable thereunder or materially impair the value or utility
of the Mortgaged Property or the security provided by this Deed of Trust;
(iv) terminate (whether by exercising any contractual right of the
Grantor to recapture leased space or otherwise) or permit the termination
of such Lease or accept surrender of all or any portion of the space
demised under such Lease prior to the end of the term thereof or accept
assignment of such Lease to the Grantor unless:
(A) the Tenant under such Lease has not paid the equivalent of
two (2) months' Rent and the Grantor has made reasonable
efforts to collect such Rent; and
(B) it would be commercially reasonable to terminate such
Lease; or
(v) waive, excuse, condone or in any manner discharge or release any
Tenants of or from the material obligations of such Tenants under their
respective Leases or guarantors of Tenants from any material obligations
under any guarantees of the Leases except as the same would be done by a
Prudent Operator with due regard for the security afforded the Beneficiary
thereby.
SECTION 5.3 Additional Requirements with Respect to New Leases. In
addition to the requirements of Sections 5.1 and 5.2 hereof, the Grantor shall
not enter into any Lease after the date hereof unless the Tenant under such
Lease has entered into a Subordination Agreement and has otherwise complied with
the provisions of Section 10.06 of the Indenture.
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ARTICLE VI
CONCERNING ASSIGNMENT OF LEASES AND RENTS
SECTION 6.1 Present Assignment; License to the Grantor. Section 2.2 of
this Deed of Trust constitutes a present, absolute, effective, irrevocable and
complete assignment by the Grantor to the Beneficiary of the Leases and Rents
and the right, subject to applicable law, to collect all sums payable to the
Grantor thereunder and apply the same as the Beneficiary may, in its sole
discretion, determine to be appropriate (including the payment of reasonable
costs and expenses in connection with the maintenance, operation, improvement,
insurance, taxes and upkeep of the Mortgaged Property), which is not conditioned
upon the Beneficiary being in possession of the Premises. The Beneficiary hereby
grants to the Grantor, however, a license to collect and apply the Rents and to
enforce the obligations of Tenants under the Leases. Immediately upon the
occurrence of and during the continuance of any Event of Default or a Default,
the license granted in the immediately preceding sentence shall cease and
terminate, with or without any notice, action or proceeding or the intervention
of a receiver appointed by a court.
SECTION 6.2 Collection of Rents by the Beneficiary.
(i) From and after the occurrence and during the continuance of an
Event of Default or a Default, any Rents receivable by the Beneficiary
hereunder, after payment of all proper costs and expenses as Beneficiary may, in
its sole discretion, determine to be appropriate (including the payment of
reasonable costs and expenses in connection with the maintenance, operation,
improvement, insurance, taxes and upkeep of the Mortgaged Property), shall be
applied to the Secured Obligations or, at the option of the Beneficiary, shall
be held by the Beneficiary as additional collateral to secure the performance by
the Grantor of the Secured Obligations. The Beneficiary shall be accountable to
the Grantor only for Rents actually received by the Beneficiary. The collection
of such Rents and the application thereof shall not cure or waive any Event of
Default or a Default or waive, modify or affect notice of Event of Default or a
Default or invalidate any act done pursuant to such notice.
(ii) The Grantor hereby irrevocably authorizes and directs Tenant
under each Lease to rely upon and comply with any and all notices or demands
from the Beneficiary for payment of Rents to the Beneficiary and the Grantor
shall have no claim against Tenant for Rents paid by Tenant to the Beneficiary
pursuant to such notice or demand.
SECTION 6.3 No Release. Neither this Deed of Trust nor any action or
inaction on the part of the Beneficiary shall release any Tenant under any
Lease, any guarantor of any Lease or the Grantor from any of their respective
obligations under such Leases or constitute an assumption of any such obligation
on the part of the Beneficiary. No action or failure to act on the part of the
Grantor shall adversely affect or limit the rights of the Beneficiary under this
Deed of Trust or, through this Deed of Trust, under such Leases. Nothing
contained herein shall operate or be construed to (i) obligate the Beneficiary
to perform any of the terms, covenants or conditions contained in any Lease or
otherwise to impose any obligation upon the Beneficiary with respect to such
Lease (including, without limitation, any obligation arising out of any covenant
of quiet enjoyment contained in such Lease in the event that Tenant under such
Lease shall have been joined as a party defendant in any action by which the
estate of such Tenant shall be terminated) or (ii) place upon the Beneficiary
any obligation for the operation, control, care, management or repair of the
Premises.
SECTION 6.4 Irrevocable Interest. All rights, powers and privileges of
the Beneficiary herein set forth are coupled with an interest and are
irrevocable, subject to the terms and conditions hereof, and the Grantor shall
not take any action under the Leases or otherwise which is inconsistent with
this Deed of Trust or any of the terms hereof and any such action inconsistent
herewith or therewith shall be void.
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SECTION 6.5 Amendment to Leases. Each Lease, including, without limitation,
all amendments, modifications, supplements, replacements, extensions and
renewals thereof, shall continue to be subject to the provisions hereof without
the necessity of any further act by any of the parties hereto.
ARTICLE VII
TAXES AND CERTAIN STATUTORY LIENS
SECTION 7.1 Payment of Charges. Unless and to the extent contested by the
Grantor in accordance with the provisions of Article IX hereof, the Grantor
shall pay and discharge, or cause to be paid and discharged, from time to time
when the same shall become due (or within any applicable grace period) all
Charges, subject to this Article VII. The Grantor shall, upon the Beneficiary's
request, deliver to the Beneficiary receipts evidencing the payment of all such
Charges.
SECTION 7.2 Escrow of Taxes. From and after the occurrence and during the
continuance of an Event of Default or a Default, at the option and upon the
request of the Beneficiary, the Grantor shall deposit with the Beneficiary in an
account maintained by the Beneficiary (the "Tax Escrow Fund"), on the first day
of each month, an amount estimated by the Beneficiary to be equal to one-twelfth
of the annual real property taxes and other annual Charges required to be
discharged by the Grantor under Section 7.1 hereof. Such amounts shall be held
by the Beneficiary without interest to the Grantor and applied to the payment of
the obligations in respect of which such amounts were deposited, in such
priority as the Beneficiary shall determine, on or before the respective dates
on which such obligations or any part thereof would become delinquent. Nothing
contained in this Article VII shall (i) affect any right or remedy of the
Beneficiary under any provision hereof or of any statute or rule of law to pay
any such amount as provided above from its own funds and to add the amount so
paid, together with interest at the Default Rate during such time that any
amount remains outstanding, to the Secured Obligations or (ii) relieve the
Grantor of its obligations to make or provide for the payment of the annual real
property taxes and other annual Charges required to be discharged by the Grantor
under Section 7.1 hereof.
SECTION 7.3 Certain Statutory Liens. Unless and to the extent contested by
the Grantor in accordance with the provisions of Article IX hereof, the Grantor
shall timely pay, or cause to be paid, all lawful claims and demands of
mechanics, materialmen, laborers, government agencies administering worker's
compensation insurance, old age pensions and social security benefits and all
other claims, judgments, demands or amounts of any nature which, if unpaid,
would result in, or permit the creation of, a Lien on the Mortgaged Property or
any part thereof, or which would result in forfeiture of all or any part of the
Mortgaged Property.
SECTION 7.4 Stamp and Other Taxes. Unless and to the extent contested by
the Grantor in accordance with the provisions of Article IX hereof, the Grantor
shall pay any United States documentary stamp taxes, with interest and fines and
penalties, and any mortgage recording taxes, with interest and fines and
penalties, that may hereafter be levied, imposed or assessed under or upon or by
reason hereof or the Secured Obligations or any instrument or transaction
affecting or relating to either thereof and in default thereof the Beneficiary
may advance the same and the amount so advanced shall be payable by the Grantor
to the Beneficiary in accordance with the provisions of Section 14.5 hereof.
SECTION 7.5 Certain Tax Law Changes. In the event of the passage after the
date hereof of any law deducting from the value of real property, for the
purpose of taxation, amounts in respect of any Lien thereon or changing in any
way the laws for the taxation of mortgages or debts secured by mortgages for
state or local purposes or the manner of the collection of any Charges, and
imposing any Charges, either directly or indirectly, on this Deed of Trust, the
Indenture or any other Collateral Document, the Grantor shall promptly
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pay to the Beneficiary such amount or amounts as may be necessary from time to
time to pay any such Charges.
SECTION 7.6 Proceeds of Tax Claim. In the event that the proceeds of any
tax claim are paid after the Beneficiary has exercised its right to foreclose
the Lien hereof, such proceeds shall be paid to the Beneficiary to satisfy any
deficiency remaining after such foreclosure. The Beneficiary shall retain its
interest in the proceeds of any tax claim during any redemption period. The
amount of any such proceeds in excess of any deficiency claim of the Beneficiary
shall in a prompt manner be released to the Grantor.
ARTICLE VIII
INSURANCE
SECTION 8.1 Required Insurance Policies and Coverages. The Grantor shall
maintain in respect of the Premises the insurance policies and coverages
required under Section 4.19(b) of the Indenture.
SECTION 8.2 Delivery After Foreclosure. In the event that the proceeds of
any insurance claim are paid after the Beneficiary has exercised its right to
foreclose the Lien hereof, such proceeds shall be paid to the Beneficiary to
satisfy any deficiency remaining after such foreclosure. Beneficiary shall
retain its interest in the Insurance Policies required to be maintained pursuant
to this Deed of Trust during any redemption period. The amount of any such
proceeds in excess of any deficiency claim of the Beneficiary shall be released
to the Grantor.
ARTICLE IX
CONTESTING OF PAYMENTS
SECTION 9.1 Contesting of Taxes and Certain Statutory Liens. The Grantor
may at its own expense contest the validity, amount or applicability of any
Charges as long as the contest thereof shall be conducted in accordance with,
and permitted pursuant to the provisions of, the Indenture. Notwithstanding the
foregoing provisions of this Section 9.1, (i) no contest of any such obligations
may be pursued by the Grantor (A) if such contest would expose the Beneficiary
or any Holder to any possible criminal liability or (B) unless the Grantor shall
have furnished a bond or other security therefor reasonably satisfactory to the
Beneficiary or such Holder, as the case may be, any additional civil liability
for failure to comply with such obligations and (ii) if at any time payment or
performance of any obligation contested by the Grantor pursuant to this Section
9.1 shall become necessary to prevent the imminent imposition of remedies
because of non-payment, the Grantor shall pay or perform the same in sufficient
time to prevent the imposition of remedies in respect of such default or
prospective default.
SECTION 9.2 Contesting of Insurance. The Grantor shall not take any action
that would reasonably be expected to cause the termination, revocation or denial
of any insurance coverage required to be maintained under this Deed of Trust or
that would be the basis for a defense to any claim under any Insurance Policy
maintained in respect of the Premises and the Grantor shall otherwise comply in
all respects with all Insurance Requirements in respect of the Premises;
provided, however, that the Grantor may, at its own expense and after written
notice to the Beneficiary, (i) contest the applicability or enforceability of
any such Insurance Requirements by appropriate legal proceedings, prosecution of
which does not constitute a basis for cancellation or revocation of any
insurance coverage required under Article VIII hereof or (ii) cause the
Insurance Policy containing any such Insurance Requirement to be replaced by a
new policy complying with the provisions of Article VIII hereof.
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ARTICLE X
DESTRUCTION, CONDEMNATION AND RESTORATION
SECTION 10.1 Destruction. If there shall occur any Destruction,
individually or in the aggregate, in excess of $100,000, the Grantor shall
promptly send to the Beneficiary a written notice setting forth the nature and
extent of such Destruction. The Proceeds of any insurance payable in respect of
such Destruction are hereby assigned and shall be paid to the Beneficiary. The
Net Loss Proceeds arising out of such Destruction, shall be applied in
accordance with the provisions of Sections 4.16, 11.02, and 10.05(c) of the
Indenture.
SECTION 10.2 Condemnation. If there shall occur any Taking or the
commencement of any proceeding thereof, the Grantor shall immediately notify the
Beneficiary upon receiving notice of such Taking or commencement of proceedings
therefor. The Beneficiary may, at its option, participate in any proceedings or
negotiations which might result in any Taking, and the Grantor shall deliver or
cause to be delivered to the Beneficiary all instruments requested by it to
permit such participation. The Beneficiary may be represented by counsel
reasonably satisfactory to it at the reasonable expense of the Grantor in
connection with any such participation. The Grantor shall pay all reasonable
fees, costs and expenses incurred by the Beneficiary in connection with any
Taking and in seeking and obtaining any award or payment on account thereof. Any
proceeds, award or payment in respect of any Taking are hereby assigned and
shall be paid to the Beneficiary. The Grantor shall take all steps necessary to
notify the condemning authority of such assignment. The Net Loss Proceeds
arising out of such Taking, shall be applied in accordance with the provisions
of Sections 4.16, 11.02, and 10.05(c) of the Indenture.
ARTICLE XI
EVENTS OF DEFAULT AND REMEDIES
SECTION 11.1 Events of Default. It shall be an Event of Default
hereunder if there shall have occurred and be continuing an Event of Default
under the Indenture.
SECTION 11.2 Remedies in Case of an Event of Default. If any Event of
Default shall have occurred and be continuing, the Beneficiary or the Trustee
may at the Beneficiary's option, in addition to any other action permitted under
this Deed of Trust or the Indenture or by law, statute or in equity, take one or
more of the following actions to the greatest extent permitted by local law:
(i) by written notice to the Grantor, declare the entire unpaid
amount of the Secured Obligations to be due and payable immediately;
(ii) personally, or by its agents or attorneys, (A) enter into and
upon and take possession of all or any part of the Premises together with
the books, records and accounts of the Grantor relating thereto and,
exclude the Grantor, its agents and servants wholly therefrom, (B) use,
operate, manage and control the Premises and conduct the business thereof,
(C) maintain and restore the Premises, (D) make all necessary or proper
repairs, renewals and replacements and such useful Alterations thereto and
thereon as the Beneficiary may deem advisable, (E) manage, lease and
operate the Premises and carry on the business thereof and exercise all
rights and powers of the Grantor with respect thereto either in the name of
the Grantor or otherwise or (F) collect and receive all Rents. The
Beneficiary shall be under no liability for or by reason of any such taking
of possession, entry, removal or holding, operation or management except
that any amounts so received by the Beneficiary shall be applied in
accordance with the provisions of the Indenture;
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(iii) with or without entry, personally or by its agents or attorneys,
(A) sell the Mortgaged Property and all estate, right, title and interest,
claim and demand therein at one or more sales in one or more parcels, in
accordance with the provisions of Section 11.3 or (B) institute and
prosecute proceedings for the complete or partial foreclosure of the Lien
and security interests created and evidenced hereby; or
(iv) take such steps to protect and enforce its rights whether by
action, suit or proceeding at law or in equity for the specific performance
of any covenant, condition or agreement in the Indenture, the Notes and the
Collateral Documents, or in aid of the execution of any power granted in
this Deed of Trust, or for any foreclosure hereunder, or for the
enforcement of any other appropriate legal or equitable remedy or otherwise
as the Beneficiary shall elect.
SECTION 11.3 Sale of Mortgaged Property if Event of Default Occurs;
Proceeds of Sale.
(i) If any Event of Default shall have occurred and be continuing,
the Beneficiary or the Trustee may institute an action to foreclose this Deed of
Trust or take such other action as may be permitted and available to the
Beneficiary at law or in equity for the enforcement of the Indenture and the
Notes and realization on the Mortgaged Property and proceeds thereon through
power of sale or to final judgment and execution thereof for the Secured
Obligations, and in furtherance thereof the Trustee may sell the Mortgaged
Property at one or more sales (to the extent permitted by law), as an entirety
or in parcels (to the extent permitted by law), at such time and place, upon
such terms and after such notice thereof as may be required or permitted by law
or statute or in equity. The Trustee may execute and deliver to the purchaser at
such sale a conveyance of the Mortgaged Property in fee simple and an assignment
or conveyance of all the Grantor's Interest in the Leases and the Mortgaged
Property, each of which conveyances and assignments shall contain recitals as to
the Event of Default upon which the execution of the power of sale herein
granted depends, and the Grantor hereby constitutes and appoints the Trustee the
true and lawful attorney-in-fact of the Grantor to make any such recitals, sale,
assignment and conveyance, and all of the acts of the Trustee as such
attorney-in-fact are hereby ratified and confirmed. The Grantor agrees that such
recitals shall be binding and conclusive upon the Grantor and that any
assignment or conveyance to be made by the Trustee shall divest the Grantor of
all right, title, interest, equity and right of redemption, including any
statutory redemption, in and to the Mortgaged Property. The power and agency
hereby granted are coupled with an interest and are irrevocable by death or
dissolution, or otherwise, and are in addition to any and all other remedies
which the Beneficiary or the Trustee may have hereunder, at law or in equity. So
long as the Secured Obligations, or any part thereof, remain unpaid, the Grantor
agrees that possession of the Mortgaged Property by the Grantor, or any person
claiming under the Grantor, shall be as tenant, and, in case of a sale under
power or upon foreclosure as provided in this Deed of Trust, the Grantor and any
person in possession under the Grantor, as to whose interest such sale was not
made subject, shall, at the option of the purchaser at such sale, then become
and be tenants holding over, and shall forthwith deliver possession to such
purchaser, or be summarily dispossessed in accordance with the laws applicable
to tenants holding over. In case of any sale under this Deed of Trust by virtue
of the exercise of the powers herein granted, or pursuant to any order in any
judicial proceeding or otherwise, the Mortgaged Property may be sold as an
entirety or in separate parcels in such manner or order as the Beneficiary or
the Trustee in its sole discretion may elect. One or more exercises of powers
herein granted shall not extinguish or exhaust such powers, until the entire
Mortgaged Property is sold or all amounts secured hereby are paid in full.
(ii) In the event of any sale made under or by virtue of this
Article XI, the entire principal of, and interest in respect of the Secured
Obligations, if not previously due and payable, shall, at the option of the
Beneficiary, immediately become due and payable, anything in this Deed of Trust
to the contrary notwithstanding.
(iii) To the extent not inconsistent with the provisions of Section
55-59.4.A.3 of the Code of Virginia of 1950, as amended, the Proceeds of any
sale made under or by virtue of this Article XI, together
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with any other sums which then may be held by the Beneficiary or the Trustee
under this Deed of Trust, whether under the provisions of this Article XI or
otherwise, shall be applied in accordance with the provisions of the Indenture.
(iv) The Beneficiary may bid for and acquire the Mortgaged Property or any
part thereof at any sale made under or by virtue of this Article XI and, in lieu
of paying cash therefor, may make settlement for the purchase price by crediting
against the purchase price the unpaid amounts (whether or not then due and
owing) in respect of the Secured Obligations, after deducting from the sales
price the expense of the sale and the reasonable costs of the action or
proceedings and any other sums that the Beneficiary is authorized to deduct
under this Deed of Trust.
(v) The Beneficiary or the Trustee may adjourn from time to time any sale
by it to be made under or by virtue hereof by announcement at the time and place
appointed for such sale or for such adjourned sale or sales, and, the
Beneficiary or the Trustee, without further notice or publication, may make such
sale at the time and place to which the same shall be so adjourned.
(vi) If the Premises is comprised of more than one parcel of land, the
Beneficiary or the Trustee may take any of the actions authorized by this
Section 11.3 in respect of any or a number of individual parcels.
SECTION 11.4 Additional Remedies in Case of an Event of Default.
(i) The Beneficiary shall be entitled to recover judgment as aforesaid
either before, after or during the pendency of any proceedings for the
enforcement of the provisions hereof, and the right of the Beneficiary to
recover such judgment shall not be affected by any entry or sale hereunder, or
by the exercise of any other right, power or remedy for the enforcement of the
provisions hereof, or the foreclosure of, or absolute conveyance pursuant to,
this Deed of Trust. In case of proceedings against the Grantor in insolvency or
bankruptcy or any proceedings for its reorganization or involving the
liquidation of its assets, the Beneficiary shall be entitled to prove the whole
amount of principal and interest and other payments, charges and costs due in
respect of the Secured Obligations to the full amount thereof without deducting
therefrom any proceeds obtained from the sale of the whole or any part of the
Mortgaged Property; provided, however, that in no case shall the Beneficiary
receive a greater amount than the aggregate of such principal, interest and such
other payments, charges and costs (with interest at the Default Rate) from the
proceeds of the sale of the Mortgaged Property and the distribution from the
estate of the Grantor.
(ii) Any recovery of any judgment by the Beneficiary and any levy of any
execution under any judgment upon the Mortgaged Property shall not affect in any
manner or to any extent the Lien and security interests created and evidenced
hereby upon the Mortgaged Property or any part thereof, or any conveyances,
powers, rights and remedies of the Beneficiary hereunder, but such conveyances,
powers, rights and remedies shall continue unimpaired as before.
(iii) Any monies collected by the Beneficiary under this Section 11.4 shall
be applied in accordance with the provisions of Section 11.3(iii).
SECTION 11.5 Legal Proceedings After an Event of Default.
(i) After the occurrence and during the continuance of any Event of
Default and immediately upon the commencement of any action, suit or legal
proceedings to obtain judgment for the Secured Obligations or any part thereof,
or of any proceedings to foreclose the Lien and security interest created and
evidenced hereby or otherwise enforce the provisions hereof or of any other
proceedings in aid of the enforcement hereof, the Grantor shall enter its
voluntary appearance in such action, suit or proceeding.
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(ii) To the extent permitted by law, upon the occurrence and during the
continuance of an Event of Default, the Beneficiary shall be entitled forthwith
as a matter of right, concurrently or independently of any other right or remedy
hereunder either before or after declaring the Secured Obligations or any part
thereof to be due and payable, to the appointment of a receiver without giving
notice to any party and without regard to the adequacy or inadequacy of any
security for the Secured Obligations or the solvency or insolvency of any person
or entity then legally or equitably liable for the Secured Obligations or any
portion thereof. The Grantor hereby consents to the appointment of such
receiver. Notwithstanding the appointment of any receiver, the Beneficiary shall
be entitled as pledgee to the possession and control of any cash, deposits or
instruments at the time held by or payable or deliverable under the terms of the
Indenture to the Beneficiary.
(iii) The Grantor shall not (A) at any time insist upon, or plead, or in
any manner whatsoever claim or take any benefit or advantage of any stay or
extension or moratorium law, any exemption from execution or sale of the
Mortgaged Property or any part thereof, wherever enacted, now or at any time
hereafter in force, which may affect the covenants and terms of performance
hereof, (B) claim, take or insist on any benefit or advantage of any law now or
hereafter in force providing for the valuation or appraisal of the Mortgaged
Property, or any part thereof, prior to any sale or sales of the Mortgaged
Property which may be made pursuant to this Deed of Trust, or pursuant to any
decree, judgment or order of any court of competent jurisdiction or (C) after
any such sale or sales, claim or exercise any right under any statute heretofore
or hereafter enacted to redeem the property so sold or any part thereof. To the
extent permitted by applicable law, the Grantor hereby expressly (A) waives all
benefit or advantage of any such law or laws, including, without limitation, any
statute of limitations applicable to this Deed of Trust, (B) waives all rights
to have the Mortgaged Property marshalled on any foreclosure of this Deed of
Trust, (C) waives any and all rights to trial by jury in any action or
proceeding related to the enforcement hereof, (D) waives any objection which it
may now or hereafter have to the laying of venue of any action, suit or
proceeding brought in connection with this Deed of Trust and further waives and
agrees not to plead that any such action, suit or proceeding brought in any such
court has been brought in an inconvenient forum and (E) covenants not to hinder,
delay or impede the execution of any power granted or delegated to the
Beneficiary by this Deed of Trust but to suffer and permit the execution of
every such power as though no such law or laws had been made or enacted. The
Beneficiary shall not be liable for any incorrect or improper payment made
pursuant to this Article XI in the absence of gross negligence or willful
misconduct.
SECTION 11.6 Remedies Not Exclusive. No remedy conferred upon or reserved
to the Beneficiary by this Deed of Trust is intended to be exclusive of any
other remedy or remedies, and each and every such remedy shall be cumulative and
shall be in addition to every other remedy given under this Deed of Trust or now
or hereafter existing at law or in equity. Any delay or omission of the
Beneficiary to exercise any right or power accruing on any Event of Default
shall not impair any such right or power and shall not be construed to be a
waiver of or acquiescence in any such Event of Default. Every power and remedy
given by this Deed of Trust may be exercised from time to time concurrently or
independently, when and as often as may be deemed expedient by the Beneficiary
in such order and manner as the Beneficiary, in its sole discretion, may elect.
If the Beneficiary accepts any monies required to be paid by the Grantor under
this Deed of Trust after the same become due, such acceptance shall not
constitute a waiver of the right either to require prompt payment, when due, of
all other sums secured by this Deed of Trust or to declare an Event of Default
with regard to subsequent defaults. If the Beneficiary accepts any monies
required to be paid by the Grantor under this Deed of Trust in an amount less
than the sum then due, such acceptance shall be deemed an acceptance on account
only and on the condition that it shall not constitute a waiver of the
obligation of the Grantor to pay the entire sum then due, and the Grantor's
failure to pay the entire sum then due shall be and continue to be a default
hereunder notwithstanding acceptance of such amount on account.
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ARTICLE XII
SECURITY AGREEMENT AND FIXTURE FILING
SECTION 12.1 Security Agreement. To the extent that the Mortgaged Property
includes personal property or items of personal property which are or are to
become fixtures under applicable law, this Deed of Trust shall also be construed
as a security agreement under the UCC; and, upon and during the continuance of
an Event of Default, the Beneficiary shall be entitled with respect to such
personal property to exercise all remedies hereunder, all remedies available
under the UCC with respect to fixtures and all other remedies available under
applicable law. Without limiting the foregoing, such personal property may, at
the Beneficiary's option and upon and during the continuance of an Event of
Default, (i) be sold hereunder together with any sale of any portion of the
Mortgaged Property or otherwise, (ii) be sold pursuant to the UCC, or (iii) be
dealt with by the Beneficiary in any other manner permitted under applicable
law. The Beneficiary may require the Grantor to assemble such personal property
and make it available to the Beneficiary at a place to be designated by the
Beneficiary. The Grantor acknowledges and agrees that a disposition of the
personal property in accordance with the Beneficiary's rights and remedies in
respect to the Mortgaged Property as heretofore provided is a commercially
reasonable disposition thereof; provided, however, that the Beneficiary shall
give the Grantor not less than ten (10) days' prior notice of the time and place
of any intended disposition.
SECTION 12.2 Fixture Filing. To the extent that the Mortgaged Property
includes items of personal property which are or are to become fixtures under
applicable law, and to the extent permitted under applicable law, the filing
hereof in the real estate records of the county in which such Mortgaged Property
is located shall also operate from the time of filing as a fixture filing with
respect to such Mortgaged Property, and the following information is applicable
for the purpose of such fixture filing, to wit:
---------------------------------------------------------------------------
Name and Address of the debtor: Name and Address of the secured party:
The Grantor having the address The Beneficiary having the address
described in the Preamble hereof. described in the Preamble hereof.
---------------------------------------------------------------------------
This Financing Statement covers the following types or items of property:
The Mortgaged Property.
This instrument covers goods or items of personal property which are or
are to become fixtures upon the real property described in Schedule A
attached hereto.
The name of the record owner of the Property on which such fixtures
are or are to be located is the Grantor.
---------------------------------------------------------------------------
ARTICLE XIII
FURTHER ASSURANCES
SECTION 13.1 Recording Documentation To Assure Security. The Grantor shall,
forthwith after the execution and delivery hereof and thereafter, from time to
time, cause this Deed of Trust and any financing statement, continuation
statement or similar instrument relating to any thereof or to any property
intended to be subject to the Lien hereof to be filed, registered and recorded
in such manner and in such places as may be required by any present or future
law in order to publish notice of and fully to protect the validity
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and priority thereof or the Lien hereof purported to be created upon the
Mortgaged Property and the interest and rights of the Beneficiary therein. The
Grantor shall pay or cause to be paid all taxes and fees incident to such
filing, registration and recording, and all reasonable expenses incident to the
preparation, execution and acknowledgment thereof, and of any instrument of
further assurance, and all Federal or state stamp taxes or other taxes, duties
and charges arising out of or in connection with the execution and delivery of
such instruments.
SECTION 13.2 Further Acts. The Grantor shall, at the sole cost and expense
of the Grantor, do, execute, acknowledge and deliver all and every such further
acts, deeds, conveyances, mortgages, assignments, notices of assignment,
transfers, financing statements, continuation statements, instruments and
assurances as the Beneficiary shall from time to time reasonably request, which
may be necessary in the judgment of the Beneficiary from time to time to assure,
perfect, convey, assign, mortgage, transfer and confirm unto the Beneficiary,
the property and rights hereby conveyed or assigned or which the Grantor may be
or may hereafter become bound to convey or assign to the Beneficiary or for
carrying out the intention or facilitating the performance of the terms hereof
or the filing, registering or recording hereof. Without limiting the generality
of the foregoing, in the event that the Beneficiary desires to exercise any
remedies, consensual rights or attorney-in-fact powers set forth in this Deed of
Trust and determines it necessary to obtain any approvals or consents of any
Governmental Authority or any other Person therefor, then, upon the reasonable
request of the Beneficiary, the Grantor agrees to use its reasonable efforts to
assist and aid the Beneficiary to obtain as soon as practicable any necessary
approvals or consents for the exercise of any such remedies, rights and powers.
In the event the Grantor shall fail (i) within ten (10) Business Days after
demand, to execute or take any action required to be executed or taken by the
Grantor under this Section 13.2 to the extent same is necessary to maintain
perfection of the Lien granted to Beneficiary hereunder or (ii) such failure
shall constitute an Event of Default, to execute or take any action required to
be executed or taken by the Grantor under this Section 13.2 (other than the type
described in clause (i) of this sentence) then, in each of the cases described
in clauses (i) and (ii) of this sentence, the Beneficiary may execute or take
the same as the attorney-in-fact for the Grantor, such power of attorney being
coupled with an interest and is irrevocable.
SECTION 13.3 Additional Security. Without notice to or consent of the
Grantor and without impairment of the Lien and rights created by this Deed of
Trust, the Beneficiary may accept (but the Grantor shall not be obligated to
furnish) from the Grantor or from any other Person, additional security for the
Secured Obligations. Neither the giving hereof nor the acceptance of any such
additional security shall prevent the Beneficiary from resorting, first, to such
additional security, and, second, to the security created by this Deed of Trust
without affecting the Beneficiary's Lien and rights under this Deed of Trust.
ARTICLE XIV
MISCELLANEOUS
SECTION 14.1 Covenants To Run with the Land. All of the grants, covenants,
terms, provisions and conditions in this Deed of Trust shall run with the Land
and shall apply to, and bind the successors and assigns of, the Grantor. If
there shall be more than one grantor with respect to the Mortgaged Property, the
covenants and warranties hereof shall be joint and several.
SECTION 14.2 No Merger. The rights and estate created by this Deed of Trust
shall not, under any circumstances, be held to have merged into any other estate
or interest now owned or hereafter acquired by the Beneficiary unless the
Beneficiary shall have consented to such merger in writing, such consent not to
be unreasonably withheld.
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SECTION 14.3 Concerning Beneficiary and Trustee.
(i) The Beneficiary has been appointed as trustee pursuant to the
Indenture. The actions of the Beneficiary hereunder are subject to the
provisions of the Indenture. The Beneficiary shall have the right hereunder to
make demands, to give notices, to exercise or refrain from exercising any
rights, and to take or refrain from taking action (including, without
limitation, the release or substitution of the Mortgaged Property), in
accordance with this Deed of Trust and the Indenture. The Beneficiary may employ
agents and attorneys-in-fact in connection herewith and shall not be liable for
the negligence or misconduct of any such agents or attorneys-in-fact selected by
it in good faith. The Beneficiary may resign and a successor Beneficiary may be
appointed in the manner provided in the Indenture. Upon the acceptance of any
appointment as the Beneficiary by a successor Beneficiary, that successor
Beneficiary shall thereupon succeed to and become vested with all the rights,
powers, privileges and duties of the retiring Beneficiary under this Deed of
Trust, and the retiring Beneficiary shall thereupon be discharged from its
duties and obligations under this Deed of Trust. After any retiring
Beneficiary's resignation, the provisions hereof shall inure to its benefit as
to any actions taken or omitted to be taken by it under this Deed of Trust while
it was the Beneficiary.
(ii) The Beneficiary shall be deemed to have exercised reasonable care in
the custody and preservation of the Mortgaged Property in its possession if such
Mortgaged Property is accorded treatment substantially equivalent to that which
the Beneficiary, in its individual capacity, accords its own property consisting
of similar instruments or interests, it being understood that neither the
Beneficiary nor any of the Secured Parties shall have responsibility for taking
any necessary steps to preserve rights against any Person with respect to any
Mortgaged Property.
(iii) The Beneficiary shall be entitled to rely upon any written notice,
statement, certificate, order or other document or any telephone message
believed by it to be genuine and correct and to have been signed, sent or made
by the proper person, and, with respect to all matters pertaining to this Deed
of Trust and its duties hereunder, upon advice of counsel selected by it.
(iv) If any portion of the Mortgaged Property also constitutes collateral
granted to the Beneficiary under any other deed of trust, mortgage, security
agreement, pledge or instrument of any type, in the event of any conflict
between the provisions hereof and the provisions of such other deed of trust,
mortgage, security agreement, pledge or instrument of any type in respect of
such collateral, the Beneficiary, in its sole discretion, shall select which
provision or provisions shall control.
SECTION 14.4 Beneficiary May Perform; Beneficiary Appointed
Attorney-in-Fact. If the Grantor shall fail to perform any covenants contained
in this Deed of Trust, subject to any applicable grace periods or contest rights
permitted pursuant to Article IX hereof or as otherwise permitted by any
Collateral Document (including, without limitation, the Grantor's covenants to
(i) pay the premiums in respect of all required insurance policies hereunder,
(ii) pay Charges, (iii) make repairs, (iv) discharge Liens or (v) pay or perform
any obligations of the Grantor under any Mortgaged Property) or if any warranty
on the part of the Grantor contained herein shall be breached, the Beneficiary
may (but shall not be obligated to) do the same or cause it to be done or remedy
any such breach, and may expend funds for such purpose; provided, however, that
the Beneficiary shall in no event be bound to inquire into the validity of any
tax, Lien, imposition or other obligation which the Grantor fails to pay or
perform as and when required hereby and which the Grantor does not contest in
accordance with the provisions of Article IX hereof. Any and all amounts
reasonably so expended by the Beneficiary shall be paid by the Grantor in
accordance with the provisions of Section 14.5 hereof. Neither the provisions of
this Section 14.4 nor any action taken by the Beneficiary pursuant to the
provisions of this Section 14.4 shall prevent any such failure to observe any
covenant contained in this Deed of Trust nor any breach of warranty from
constituting an Event of Default. Upon the occurrence and during the continuance
of an Event of Default the Grantor hereby appoints the Beneficiary its
attorney-in-fact, with full authority in the place and stead of the Grantor and
in the name of the Grantor to take any action and to execute any instrument
consistent with the terms hereof and the other Collateral Documents which the
Beneficiary may
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deem necessary or advisable to accomplish the purposes hereof. The foregoing
grant of authority is a power of attorney coupled with an interest and such
appointment shall be irrevocable for the term hereof. The Grantor hereby
ratifies all that such attorney shall lawfully do or cause to be done by virtue
hereof.
SECTION 14.5 Expenses The Grantor will upon demand pay to the Beneficiary
the amount of any and all reasonable costs and expenses, including the
reasonable fees and expenses of its counsel and the reasonable fees and expenses
of any experts and agents which the Beneficiary may incur in connection with (i)
any action, suit or other proceeding affecting the Mortgaged Property or any
part thereof commenced, in which action, suit or proceeding the Beneficiary is
made a party or participates or in which the right to use the Mortgaged Property
or any part thereof is threatened, or in which it becomes necessary in the
judgment of the Beneficiary to defend or uphold the Lien hereof (including,
without limitation, any action, suit or proceeding to establish or uphold the
compliance of the Mortgaged Property with any Requirements of Law), (ii) the
collection of the Secured Obligations, (iii) the enforcement and administration
hereof, (iv) the custody or preservation of, or the sale of, collection from, or
other realization upon, any of the Mortgaged Property, (v) the exercise or
enforcement of any of the rights of the Beneficiary or any Secured Party
hereunder or (vi) the failure by the Grantor to perform or observe any of the
provisions hereof. All amounts expended by the Beneficiary and payable by the
Grantor under this Section 14.5 shall be due upon demand therefor (together with
interest thereon accruing at the Default Rate during the period from and
including the date on which such funds were so expended to the date of
repayment) and shall be part of the Secured Obligations. The Grantor's
obligations under this Section 14.5 shall survive the termination hereof and the
discharge of the Grantor's other obligations under this Deed of Trust.
SECTION 14.6 Indemnity.
(i) The Grantor agrees to indemnify, pay and hold harmless the
Beneficiary, the Trustee and each of the other Secured Parties and the officers,
directors, employees, agents and Affiliates of the Beneficiary, the Trustee and
each of the other Secured Parties (collectively, the "Indemnitees") from and
against any and all other liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, claims, costs (including, without limitation,
settlement costs), expenses or disbursements of any kind or nature whatsoever
(including, without limitation, the reasonable fees and disbursements of counsel
for such Indemnitees in connection with any investigative, administrative or
judicial proceeding, commenced or threatened, whether or not such Indemnitee
shall be designated a party thereto), which may be imposed on, incurred by or
asserted against that Indemnitee, in any manner relating to or arising out
hereof, the Indenture, the Notes, any other Collateral Document or any other
document evidencing the Secured Obligations (including, without limitation, any
misrepresentation by the Grantor in this Deed of Trust, the Indenture, the
Notes, any other Collateral Document or any other document evidencing the
Secured Obligations (the "Indemnified Liabilities"); provided, however, that the
Grantor shall have no obligation to an Indemnitee hereunder with respect to
Indemnified Liabilities to the extent it has been determined by a final decision
(after all appeals and the expiration of time to appeal) by a court of competent
jurisdiction that such Indemnified Liabilities arose from the gross negligence
or willful misconduct of that Indemnitee. To the extent that the undertaking to
indemnify, pay and hold harmless set forth in the preceding sentence may be
unenforceable because it is violative of any law or public policy, the Grantor
shall contribute the maximum portion which it is permitted to pay and satisfy
under applicable law, to the payment and satisfaction of all Indemnified
Liabilities incurred by the Indemnitees or any of them.
(ii) Survival. The obligations of the Grantor contained in this Section
14.6 shall survive the termination hereof and the discharge of the Grantor's
other obligations under this Deed of Trust, the Indenture and the other
Collateral Documents.
(iii) Reimbursement. Any amount paid by any Indemnitee as to which such
Indemnitee has the right to reimbursement shall constitute Secured Obligations
secured by the Mortgaged Property.
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SECTION 14.7 Continuing Security Interest; Assignment. This Deed of Trust
shall create a continuing Lien on and security interest in the Mortgaged
Property and shall (i) be binding upon the Grantor, its respective successors
and assigns and (ii) inure, together with the rights and remedies of the
Beneficiary and the Trustee hereunder, to the benefit of the Beneficiary and the
Trustee and the other Secured Parties and each of their respective successors,
transferees and assigns. No other Persons (including, without limitation, any
other creditor of Grantor) shall have any interest herein or any right or
benefit with respect hereto. Without limiting the generality of the foregoing
clause (ii), any Holder of the Notes may assign or otherwise transfer any
indebtedness held by it secured by this Deed of Trust to any other Person, and
such other Person shall thereupon become vested with all the benefits in respect
thereof granted to such Holder, herein or otherwise, subject however, to the
provisions of the Indenture.
SECTION 14.8 Termination; Release. The Mortgaged Property shall be released
from the Lien of this Deed of Trust in accordance with the provisions of Article
10 of the Indenture.
SECTION 14.9 Modification in Writing. No amendment, modification,
supplement, termination or waiver of or to any provision hereof, nor consent to
any departure by the Grantor therefrom, shall be effective unless the same shall
be done in accordance with the terms of the Indenture and unless in writing and
signed by the Beneficiary and Grantor. Any amendment, modification or supplement
of or to any provision hereof, any waiver of any provision hereof and any
consent to any departure by the Grantor from the terms of any provision hereof
shall be effective only in the specific instance and for the specific purpose
for which made or given. Except where notice is specifically required by this
Deed of Trust or any other Collateral Document, no notice to or demand on the
Grantor in any case shall entitle the Grantor to any other or further notice or
demand in similar or other circumstances.
SECTION 14.10 Notices. Unless otherwise provided herein or in the
Indenture, any notice or other communication herein required or permitted to be
given shall be given in the manner and become effective as set forth in the
Indenture, if to the Grantor, addressed to it at the address of the Issuer set
forth in the Indenture, and as to the Beneficiary, addressed to it at its
address set forth in the Indenture, and as to the Trustee, addressed to it at
the address set forth in the Preamble hereof, or in each case at such other
address as shall be designated by such party in a written notice to the other
party complying as to delivery with the terms of this Section 14.10.
SECTION 14.11 GOVERNING LAW; SERVICE OF PROCESS; WAIVER OF JURY TRIAL. THIS
DEED OF TRUST SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE LAWS OF THE STATE IN WHICH THE PREMISES ARE LOCATED,
WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS, EXCEPT TO THE EXTENT THAT THE
VALIDITY OR PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES
HEREUNDER, IN RESPECT OF ANY PARTICULAR ITEM OR TYPE OF MORTGAGED PROPERTY ARE
GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE. GRANTOR AGREES
THAT SERVICE OF PROCESS IN ANY PROCEEDING MAY BE EFFECTED BY MAILING A COPY
THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF
MAIL), POSTAGE PREPAID, TO THE ISSUER AT ITS ADDRESS SET FORTH IN THE INDENTURE
OR AT SUCH OTHER ADDRESS OF WHICH THE BENEFICIARY SHALL HAVE BEEN NOTIFIED
PURSUANT THERETO. IF ANY AGENT APPOINTED BY GRANTOR REFUSES TO ACCEPT SERVICE,
GRANTOR HEREBY AGREES THAT SERVICE UPON IT BY MAIL SHALL CONSTITUTE SUFFICIENT
NOTICE. NOTHING HEREIN SHALL AFFECT THE RIGHT TO SERVE PROCESS IN ANY OTHER
MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF BENEFICIARY TO BRING
PROCEEDINGS AGAINST GRANTOR IN THE COURTS OF ANY OTHER JURISDICTION. THE GRANTOR
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS DEED OF TRUST OR THE
TRANSACTIONS CONTEMPLATED HEREBY.
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SECTION 14.12 Severability of Provisions. Any provision hereof which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or affecting the validity or
enforceability of such provision in any other jurisdiction.
SECTION 14.13 Limitation on Interest Payable. It is the intention of the
parties to conform strictly to the usury laws, whether state or Federal, that
are applicable to the transaction of which this Deed of Trust is a part. All
agreements between the Grantor and the Beneficiary, whether now existing or
hereafter arising and whether oral or written, are hereby expressly limited so
that in no contingency or event whatsoever shall the amount paid or agreed to be
paid by the Grantor for the use, forbearance or detention of the money to be
loaned or advanced under the Indenture or any related document or for the
payment or performance of any covenant or obligation contained herein or in the
Indenture or any related document exceed the maximum amount permissible under
applicable Federal or state usury laws. If under any circumstances whatsoever
fulfillment of any such provision, at the time performance of such provision
shall be due, shall involve exceeding the limit of validity prescribed by law,
then the obligation to be fulfilled shall be reduced to the limit of such
validity. If under any circumstances the Grantor shall have paid an amount
deemed interest by applicable law, which would exceed the highest lawful rate,
such amount that would be excessive interest under applicable usury laws shall
be applied to the reduction of the principal amount owing in respect of the
Secured Obligations and not to the payment of interest, or if such excessive
interest exceeds the unpaid balance of principal and any other amounts due
hereunder, the excess shall be refunded to the Grantor. All sums paid or agreed
to be paid for the use, forbearance or detention of the principal under any
extension of credit by the Beneficiary shall, to the extent permitted by
applicable law, and to the extent necessary to preclude exceeding the limit of
validity prescribed by law, be amortized, prorated, allocated and spread from
the date hereof until payment in full of the Secured Obligations so that the
actual rate of interest on account of such principal amounts is uniform
throughout the term hereof.
SECTION 14.14 Business Days. In the event any time period or any date
provided in this Deed of Trust ends or falls on a day other than a Business Day,
then such time period shall be deemed to end and such date shall be deemed to
fall on the next succeeding Business Day, and performance herein may be made on
such Business Day, with the same force and effect as if made on such other day.
SECTION 14.15 Relationship. The relationship of the Beneficiary to the
Grantor hereunder is strictly and solely that of lender and borrower and grantor
and beneficiary and nothing contained in the Indenture, the Notes, this Deed of
Trust or any other document or instrument now existing and delivered in
connection therewith or otherwise in connection with the Secured Obligations is
intended to create, or shall in any event or under any circumstance be construed
as creating a partnership, joint venture, tenancy-in-common, joint tenancy or
other relationship of any nature whatsoever between the Beneficiary and the
Grantor other than as lender and borrower and grantor and beneficiary.
SECTION 14.16 Waiver of Stay.
(i) The Grantor agrees that in the event that the Grantor or any property
or assets of the Grantor shall hereafter become the subject of a voluntary or
involuntary proceeding under the Bankruptcy Code or the Grantor shall otherwise
be a party to any Federal or state bankruptcy, insolvency, moratorium or similar
proceeding to which the provisions relating to the automatic stay under Section
362 of the Bankruptcy Code or any similar provision in any such law is
applicable, then, in any such case, whether or not the Beneficiary has commenced
foreclosure proceedings under this Deed of Trust, the Beneficiary shall be
entitled to relief from any such automatic stay as it relates to the exercise of
any of the rights and remedies (including, without limitation, any foreclosure
proceedings) available to the Beneficiary as provided in this Deed of Trust, in
any other Collateral Document or any other document evidencing the Secured
Obligations.
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(ii) The Beneficiary shall have the right to petition or move any
court having jurisdiction over any proceeding described in Section 14.16(i)
hereof for the purposes provided therein, and the Grantor agrees (i) not to
oppose any such petition or motion and (ii) at the Grantor's sole cost and
expense, to assist and cooperate with the Beneficiary, as may be requested by
the Beneficiary from time to time, in obtaining any relief requested by the
Beneficiary, including, without limitation, by filing any such petitions,
supplemental petitions, requests for relief, documents, instruments or other
items from time to time requested by the Beneficiary or any such court.
SECTION 14.17 No Credit for Payment of Taxes or Impositions. The
Grantor shall not be entitled to any credit against the principal, premium, if
any, or interest payable under the Indenture or the Notes, and the Grantor shall
not be entitled to any credit against any other sums which may become payable
under the terms thereof or hereof, by reason of the payment of any Charge on the
Mortgaged Property or any part thereof.
SECTION 14.18 No Claims Against the Beneficiary. Nothing contained in
this Deed of Trust shall constitute any consent or request by the Beneficiary,
express or implied, for the performance of any labor or services or the
furnishing of any materials or other property in respect of the Premises or any
part thereof, nor as giving the Grantor any right, power or authority to
contract for or permit the performance of any labor or services or the
furnishing of any materials or other property in such fashion as would permit
the making of any claim against the Beneficiary in respect thereof or any claim
that any Lien based on the performance of such labor or services or the
furnishing of any such materials or other property is prior to the Lien hereof.
SECTION 14.19 Obligations Absolute. All obligations of the Grantor
hereunder shall be absolute and unconditional irrespective of:
(i) any bankruptcy, insolvency, reorganization, arrangement,
readjustment, composition, liquidation or the like of the Grantor, the
Issuer or any other Guarantor;
(ii) any lack of validity or enforceability of the Indenture, the
Notes or any other agreement or instrument relating thereto;
(iii) any change in the time, manner or place of payment of, or in any
other term of, all or any of the Secured Obligations, or any other
amendment or waiver of or any consent to any departure from the Indenture,
the Notes or any other agreement or instrument relating thereto;
(iv) any exchange, release or non-perfection of any other collateral,
or any release or amendment or waiver of or consent to any departure from
any guarantee, for all or any of the Secured Obligations;
(v) any exercise or non-exercise, or any waiver of any right,
remedy, power or privilege under or in respect hereof, the Indenture, the
Notes or any agreement or instrument relating thereto except as
specifically set forth in a waiver granted pursuant to the provisions of
Section 14.9 hereof; or
(vi) any other circumstances which might otherwise constitute a
defense available to, or a discharge of, the Grantor.
SECTION 14.20 Last Dollars Secured. This Deed of Trust secures only a
portion of the Indebtedness owing or which may become owing by the Grantor. The
parties agree that any payments or repayments of such Indebtedness by the
Grantor shall be and be deemed to be applied first to the portion of the
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Indebtedness that is not secured hereby, it being the parties' intent that the
portion of the Indebtedness last remaining unpaid shall be secured hereby.
SECTION 14.21 Trustee Provisions.
(a) No Required Action. Trustee shall not be required to take any action
toward the execution and enforcement of the trust hereby created or to
institute, appear in, or defend any action, suit, or other proceeding in
connection therewith where, in Trustee's opinion, such action would be likely to
involve Trustee in expense or liability, unless requested so to do by a written
instrument signed by Beneficiary and, if Trustee so requests, unless Trustee is
tendered security and indemnity satisfactory to Trustee against any and all
cost, expense, and liability arising therefrom. Trustee shall not be responsible
for the execution, acknowledgment, or validity of this Deed of Trust, or for the
proper authorization thereof, or for the sufficiency of the lien and security
interest purported to be created hereby, and Trustee makes no representation in
respect thereof or in respect of the rights, remedies, and recourses of
Beneficiary.
(b) Certain Rights. With the approval of Beneficiary, Trustee shall have
the right to take any and all of the following actions: (i) to select, employ,
and advise with counsel (who may be, but need not be, counsel for Beneficiary)
upon any matters arising hereunder, including the preparation, execution, and
interpretation of this Deed of Trust, and shall be fully protected in relying as
to legal matters on the advice of counsel, (ii) to execute any of the trusts and
powers hereof and to perform any duty hereunder either directly or through her
agents or attorneys, (iii) to select and employ, in and about the execution of
Trustee's duties hereunder, suitable accountants, engineers and other experts,
agents and attorneys-in-fact, either corporate or individual, not regularly in
the employ of Trustee, and Trustee shall not be answerable for any act, default,
negligence, or misconduct of any such accountant, engineer or other expert,
agent or attorney-in-fact, if selected with reasonable care, or for any error of
judgment or act done by Trustee in good faith, or be otherwise responsible or
accountable under any circumstances whatsoever, except for Trustee's gross
negligence or bad faith, and (iv) any and all other lawful action as Beneficiary
may instruct Trustee to take to protect or enforce Beneficiary's rights
hereunder. Trustee shall not be personally liable in case of entry by Trustee,
or anyone entering by virtue of the powers herein granted to Trustee, upon the
Mortgaged Property for debts contracted for or liability or damages incurred in
the management or operation of the Mortgaged Property. Trustee shall have the
right to rely on any instrument, document, or signature authorizing or
supporting any action taken or proposed to be taken by Trustee hereunder,
believed by Trustee in good faith to be genuine. Trustee shall be entitled to
reimbursement for reasonable expenses incurred by Trustee in the performance of
Trustee's duties hereunder and to reasonable compensation for such of Trustee's
services hereunder as shall be rendered. Grantor will, from time to time, pay
the reasonable compensation due to Trustee hereunder and reimburse Trustee for,
and save Trustee harmless against, any and all liability and reasonable expenses
which may be incurred by Trustee in the performance of Trustee's duties
hereunder.
(c) Substitution of Trustee. Subject to the restrictions regarding the
substitution of trustees in the Indenture, if, for any reason, with or without
cause, the Beneficiary shall elect to substitute for the trustee herein named
(or for any successor to said trustee), the Beneficiary shall have the right to
appoint successor Trustee(s) by duly acknowledged written instruments, and each
new Trustee immediately upon recordation of the instrument so appointing him
shall become successor in title to the Premises for the uses and purposes of
this Deed of Trust, with all the powers, duties and obligations conferred on the
Trustee in the same manner and to the same effect as though he were named herein
as the Trustee.
(d) Successor Trustees. Trustee may resign by the giving of notice of
such resignation in writing or verbally to Beneficiary. If Trustee shall die,
resign, or become disqualified from acting in the execution of this trust, or
if, for any reason, Beneficiary shall prefer to appoint a substitute trustee or
multiple substitute trustees, or successive substitute trustees or successive
multiple substitute trustees, to act instead of the aforenamed Trustee,
Beneficiary shall have full power to appoint a substitute trustee (or, if
preferred, multiple substitute trustees) in succession who shall succeed (and if
multiple substitute trustees are appointed,
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each of such multiple substitute trustees shall succeed) to all the estates,
rights, powers, and duties of the aforenamed Trustee. Such appointment may be
executed by any authorized agent of Beneficiary, and if such Beneficiary be a
corporation and such appointment be executed in its behalf by any officer of
such corporation, such appointment shall be conclusively presumed to be executed
with authority and shall be valid and sufficient without proof of any action by
the board of directors or any superior officer of the corporation. Grantor
hereby ratifies and confirms any and all acts which the aforenamed Trustee, or
her successor or successors in this trust, shall do lawfully by virtue hereof.
If multiple substitute Trustees are appointed, each of such multiple substitute
Trustees shall be empowered and authorized to act alone without the necessity of
the joinder of the other multiple substitute trustees, whenever any action or
undertaking of such substitute trustees is requested or required under or
pursuant to this Deed of Trust or applicable law.
(e) Perfection of Appointment. Should any deed, conveyance, or instrument
of any nature be required from Grantor by any Trustee or substitute Trustee to
more fully and certainly vest in and confirm to the Trustee or substitute
Trustee such estates, rights, powers, and duties, then, upon request by the
Trustee or substitute Trustee, any and all such deeds, conveyances and
instruments shall be made, executed, acknowledged, and delivered and shall be
caused to be recorded and/or filed by Grantor.
(f) Succession Instruments. Any substitute Trustee appointed pursuant to
any of the provisions hereof shall, without any further act, deed, or
conveyance, become vested with all the estates, properties, rights, powers, and
trusts of its or his predecessor in the rights hereunder with like effect as if
originally named as Trustee herein; but nevertheless, upon the written request
of Beneficiary or of the substitute Trustee, the Trustee ceasing to act shall
execute and deliver any instrument transferring to such substitute Trustee, upon
the trusts herein expressed, all the estates, properties, rights, powers, and
trusts of the Trustee so ceasing to act, and shall duly assign, transfer and
deliver any of the property and moneys held by such Trustee to the substitute
Trustee so appointed in the Trustee's place.
(g) No Representation by Trustee or Beneficiary. By accepting or
approving anything required to be observed, performed, or fulfilled or to be
given to Trustee or Beneficiary pursuant to the Collateral Documents, including
without limitation, any officer's certificate, balance sheet, statement of
profit and loss or other financial statement, survey, appraisal, or insurance
policy, neither Trustee nor Beneficiary shall be deemed to have warranted,
consented to, or affirmed the sufficiency, legality, effectiveness, or legal
effect of the same, or of any term, provision, or condition thereof, and such
acceptance or approval thereof shall not be or constitute any warranty or
affirmation with respect thereto by Trustee or Beneficiary.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
33
IN WITNESS WHEREOF, the Grantor has caused this Deed of Trust to be duly
executed and delivered under seal the day and year first above written.
COLONIAL DOWNS, L.P.,
Grantor
By: STANSLEY RACING CORP.
Its General Partner
By: /s/ Ian M. Stewart
--------------------------------
Its: President
34
ACKNOWLEDGMENT
COMMONWEALTH OF VIRGINIA)
) ss.:
City OF Richmond )
The foregoing document was acknowledged before me this 14th day of
June, 2002 by Ian M. Stewart, President of Stansley Racing Corp., general
partner of Colonial Downs, L.P., on behalf of the corporation in such capacity.
My commission expires: 9-30-2003
/s/ Brenda M. Holmes
----------------------------------------
Notary Public
Schedule A
PARCEL 1
ALL THOSE certain pieces or parcels of land, situate, lying and being in the
City of Hampton, Virginia, containing in the aggregate 4.880 Acres, identified
as "PARCEL F 4.730 Acres" and "PARCEL G 0.150 Acres", all as shown on that
certain plat entitled, "PLAT OF 2 PARCELS OF LAND OWNED BY THE WALNUT HOMES
COMPANY AND THE CITY OF HAMPTON, VIRGINIA, CITY OF HAMPTON, VIRGINIA", dated
December 11, 1996, prepared by Resource International, Ltd., Environmental
Consultants & Designers, Ashland, Virginia, a copy of which said plat is
recorded in Deed Book 1198, at page 1928.
BEING the same real estate conveyed to Colonial Downs L.P., a Virginia limited
partnership, by deed from Walnut Homes Co., L.C., a Virginia limited liability
company, dated March 24, 1997, recorded March 26, 1997, in the Clerk's Office,
Circuit Court, City of Hampton, Virginia, in Deed Book 1198, page 1926.
PARCEL 2
ALL that certain lot, piece or land, together with the improvements thereon and
the appurtenances thereunto belonging, situate, lying and being partly in the
City of Richmond and partly in the County of Henrico, Virginia, containing 3.726
Acres all as more particularly shown on a certain plat entitled, "No 4700 W.
Broad St. City of Richmond and Brookland Dist., Henrico Co., Va." dated May 20,
1996, revised June 5, 1996, made by LaPrade Bros., Civil Engineers & Surveyors,
a copy of which is recorded with the next hereinafter mentioned deeds.
BEGINNING at a cross marking the intersection of the northern line of West Broad
Street and the eastern line of Maywill Street; thence with the eastern line of
Maywill Street N. 39 38' 29" E. 95.34 feet to a point marked by a cross; thence
continuing with the eastern line of Maywill Street by a curve to the left, the
arc of the circle having a radius of 1176.00 feet, a distance of 436.93 feet to
a point marked by a cross; thence continuing along the eastern line of Maywill
Street N. 18 21' 16" E. 179.33 feet to a point marked by a railroad spike;
thence S. 72 57' 26" E. 5.84 feet to a point marked by a railroad spike; thence
by a curve to the right, the arc of the circle having a radius of 52.50 feet, a
distance of 36.46 feet to a point marked by a rod; thence S. 33 10' 06" E.
257.43 feet to a point marked by a rod; thence S. 34 13' 46" E. 69.02 feet to a
point marked by a rod; thence S. 39 38' 29" W. 66.90 feet to a point marked by a
rod; thence S. 50 21' 31" E. 1.38 feet to a point marked by a rod; thence S. 39
38' 29" W. 3.48 feet to a point marked by a rod; thence N. 43 54' 46" W. 1.39
feet to a point marked by a rod; thence S. 39 38' 29" W. 551.28 feet to a point
marked by a cross on the northern line of West Broad Street; thence with the
northern line of West Broad Street N. 43 54' 46" W. 209.32 feet to the point of
beginning.
BEING the same real estate conveyed to Colonial Downs L.P., a Virginia limited
partnership, by deed from George Pitsilides, Trustee of the Pitsilides Land
Trust, dated July 15, 1996, recorded July 16, 1996, in the Clerk's Office,
Circuit Court, City of Richmond, Virginia, as Instrument No. 96-14482, page 45,
and in the Clerk's Office of the Circuit Court of the County of Henrico,
Virginia in Deed Book 2662, page 77.
PARCEL 3
ALL those certain pieces or parcels of land lying and being in the County of
Brunswick, Virginia being Parcels A, B, C and D, as shown on plat of survey
prepared by Resource International, Ltd., dated May 19, 1997, entitled "Plat of
Four Parcels of Land, Red Oak District Brunswick County, Virginia", a copy of
which is recorded in Plat book 13, page 338, to which plat reference is hereby
made for a more particular description of the property hereby conveyed.
BEING the same real estate conveyed to Colonial Downs L.P., a Virginia limited
partnership, by two deeds: (1) from Marvin G. Foster and Jean M. Foster, husband
and wife, Ralph J. Rutledge, Jr., divorced, Sallie A. Rutledge, divorced, and
Lucy Holloman, dated May 28, 1997, recorded June 16, 1997, in the Clerk's
Office, Circuit Court, Brunswick County, Virginia in Deed Book 306, page 644;
and (2) from J. Howard Settle and R. B. Settle, III, Executors under the Will of
Robert B. Settle, Jr., dated May 28, 1997, recorded June 16, 1997, in the
Clerk's Office, Circuit Court, Brunswick County, Virginia, in Deed Book 306,
page 646.
Schedule B
Prior Liens
1. Each of the liens and other encumbrances excepted as being prior to the
Lien hereof as set forth in Schedule B-2 to the marked title insurance
commitment issued by Lawyers Title Insurance Corporation, dated as of the
date hereof and delivered to the Beneficiary on the date hereof, bearing
Lawyers Title Insurance Corporation reference numbers County of Brunswick
(020638), County of Henrico and City of Richmond (020636) and City of
Hampton (020639) relating to the real property described in Schedule A
attached hereto.
2. Zoning and building ordinances and regulations, to the extent they
constitute Permitted Liens of the type described in clause (4) of the
definition thereof.
Schedule C
NONE
Exhibit 1
FORM OF SUBORDINATION, NON-DISTURBANCE
AND ATTORNMENT AGREEMENT
THIS SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT (the
"Agreement") is made and entered into as of the ____ day of _______, ____ by and
between ________________________________, as trustee, having an office at
_________________ (in such capacity, "Trustee"), and _____________________,
having an office at __________________________ ("Tenant").
RECITALS:
A. Tenant is the tenant under a certain lease dated _____________, ____
between ________________________________, as landlord ("Landlord"), and Tenant,
as tenant (as amended through the date hereof, the "Lease"), pursuant to which
Tenant leased a portion (the "Leased Premises") of the property known as
_____________________________, located at _____________________________, as more
particularly described in Schedule A attached hereto (the "Property").
B. Landlord has or will grant a deed of trust lien on and security interest
in the Property to Trustee (for its benefit and for the benefit of the holders
of certain senior secured notes and notes issued in exchange therefor pursuant
to that certain indenture dated as of [________ ___, 2002]) pursuant to one or
more mortgages, deeds of trust, deeds to secure debt or similar security
instruments (collectively, the "Security Instruments").
C. Tenant has agreed to subordinate the Lease to the Security Instruments
and to the lien thereof and Trustee has agreed not to disturb Tenant's
possessory rights in the Leased Premises under the Lease on the terms and
conditions hereinafter set forth.
AGREEMENT:
NOW, THEREFORE, the parties hereto mutually agree as follows:
1. Subordination. Notwithstanding anything to the contrary set forth in the
Lease, the Lease and the leasehold estate created thereby and all of Tenant's
rights thereunder are and shall at all times be subject and subordinate in all
respects to the Security Instruments and the lien thereof, and to all rights of
Trustee thereunder, and to any and all advances to be made thereunder, and to
all renewals, modifications, consolidations, replacements and extensions
thereof.
2. Nondisturbance. So long as Tenant complies with the provisions of this
Agreement, pays all rents and other charges as specified in the Lease and is not
otherwise in default (beyond applicable notice and cure periods) of any of its
obligations and covenants pursuant to the Lease, Trustee agrees for itself and
its successors in interest and for any other person acquiring title to the
Property through a foreclosure (an "Acquiring Party"), that Tenant's possession
of the Leased Premises as described in the Lease will not be disturbed during
the term of the Lease by reason of a foreclosure. For purposes of this
Agreement, a "foreclosure" shall include (but not be limited to) a sheriff's or
trustee's sale under the power of sale contained in the Security Instruments,
the termination of any superior lease of the Property and any other transfer of
the Landlord's interest in the Property under peril of foreclosure, including,
without limitation to the generality of the foregoing, an assignment or sale in
lieu of foreclosure.
3. Attornment. Tenant agrees to attorn to, accept and recognize any
Acquiring Party as the landlord under the Lease pursuant to the provisions
expressly set forth therein for the then remaining balance of the term of the
Lease, and any extensions thereof as made pursuant to the Lease. The foregoing
provision
shall be self-operative and shall not require the execution of any further
instrument or agreement by Tenant as a condition to its effectiveness.
4. No Liability. Notwithstanding anything to the contrary contained
herein or in the Lease, it is specifically understood and agreed that neither
the Trustee, any receiver nor any Acquiring Party shall be:
(a) liable for any act, omission, negligence or default of any prior
landlord (including Landlord); or
(b) liable for any failure of any prior landlord (including Landlord)
to construct any improvements or bound by any covenant to construct any
improvement either at the commencement of the term of the Lease or upon any
renewal or extension thereof or upon the addition of additional space
pursuant to any expansion right contained in the Lease; or
(c) subject to any offsets, credits, claims or defenses which Tenant
might have against any prior landlord (including Landlord); or
(d) bound by any rent or additional rent which is payable on a monthly
basis and which Tenant might have paid for more than one (1) month in
advance to any prior landlord (including Landlord) or by any security
deposit or other prepaid charge which Tenant might have paid in advance to
any prior landlord (including Landlord); or
(e) liable to Tenant hereunder or under the terms of the Lease beyond
its interest in the Property; or
(f) bound by any assignment, subletting, renewal, extension or any
other agreement or modification of the Lease made without the written
consent of Trustee; or
(g) bound by any consensual or negotiated surrender, cancellation or
termination of the Lease, in whole or in part, agreed upon between Landlord
and Tenant unless effected unilaterally by Tenant pursuant to the express
terms of the Lease.
Notwithstanding the foregoing, Tenant reserves its right to any and
all claims or causes of action (i) against such prior landlord for prior losses
or damages and (ii) against the successor landlord for all losses or damages
arising from and after the date that such successor landlord takes title to the
Property.
5. Certain Acknowledgments and Agreements by Tenant. (a) Tenant has
notice that the Lease and the rents and all other sums due thereunder have been
assigned to Trustee as security for the notes secured by the Security
Instruments. In the event Trustee notifies Tenant of the occurrence of a default
under the Security Instruments and demands that Tenant pay its rents and all
other sums due or to become due under the Lease directly to Trustee, Tenant
shall honor such demand and pay its rent and all other sums due under the Lease
directly to Trustee or as otherwise authorized in writing by Trustee. Landlord
irrevocably authorizes Tenant to make the foregoing payments to Trustee upon
such notice and demand.
(b) Tenant shall send a copy of any and all notices or statements
under the Lease to Trustee at the same time such notices or statements are sent
to Landlord.
(c) This Agreement satisfies any and all conditions or requirements in
the Lease relating to the granting of a non-disturbance agreement.
6. Trustee to Receive Default Notices. Tenant shall notify Trustee of
any default by Landlord under the Lease which would entitle Tenant to cancel the
Lease, and agrees that, notwithstanding any pro-
visions of the Lease to the contrary, no notice of cancellation thereof shall be
effective unless Trustee shall have received notice of default giving rise to
such cancellation and shall have failed within sixty (60) days after receipt of
such notice to cure such default or, if such default cannot be cured within
sixty (60) days, shall have failed within sixty (60) days after receipt of such
notice to commence and thereafter diligently pursue any action necessary to cure
such default.
7. Estoppel. Tenant hereby certifies and represents to Trustee that as
of the date of this Agreement:
(a) the Lease is in full force and effect;
(b) all requirements for the commencement and validity of the Lease
have been satisfied and there are no unfulfilled conditions to Tenant's
obligations under the Lease;
(c) Tenant is not in default under the Lease and has not received any
uncured notice of any default by Tenant under the Lease; to the best of
Tenant's knowledge, Landlord is not in default under the Lease; no act,
event or condition has occurred which with notice or the lapse of time, or
both, would constitute a default by Tenant or Landlord under the Lease; no
claim by Tenant of any nature exists against Landlord under the Lease; and
all obligations of Landlord have been fully performed;
(d) there are no defenses, counterclaims or setoffs against rents or
charges due or which may become due under the Lease;
(e) none of the rent which Tenant is required to pay under the Lease
has been prepaid, or will in the future be prepaid, more than one (1) month
in advance;
(f) Tenant has no right or option contained in the Lease or in any
other document to purchase all or any portion of the Leased Premises;
(g) the Lease has not been modified or amended and constitutes the
entire agreement between Landlord and Tenant relating to the Leased
Premises;
(h) Tenant has not assigned, mortgaged, sublet, encumbered, conveyed
or otherwise transferred any or all of its interest under the Lease; and
(i) Tenant has full authority to enter into this Agreement, which has
been duly authorized by all necessary action.
8. Notices. All notices or other written communications hereunder
shall be deemed to have been properly given (i) upon delivery, if delivered in
person with receipt acknowledged by the recipient thereof, (ii) one (1) Business
Day (hereinafter defined) after having been deposited for overnight delivery
with any reputable overnight courier service, or (iii) three (3) Business Days
after having been deposited in any post office or mail depository regularly
maintained by the United States Postal Service and sent by registered or
certified mail, postage prepaid, return receipt requested, addressed to the
receiving party at its address set forth above or addressed as such party may
from time to time designate by written notice to the other parties. For purposes
of this Section 8, the term "Business Day" shall mean any day other than
Saturday, Sunday or any other day on which banks are required or authorized to
close in New York, New York. Either party by notice to the other may designate
additional or different addresses for subsequent notices or communications.
9. Successors. The obligations and rights of the parties pursuant to
this Agreement shall bind and inure to the benefit of the successors, assigns,
heirs and legal representatives of the respective parties; provided, however,
that in the event of the assignment or transfer of the interest of Trustee, all
obligations and
liabilities of Trustee under this Agreement shall terminate, and thereupon all
such obligations and liabilities shall be the responsibility of the party to
whom Trustee's interest is assigned or transferred; and provided, further, that
the interest of Tenant under this Agreement may not be assigned or transferred
without the prior written consent of Trustee. In addition, Tenant acknowledges
that all references herein to Landlord shall mean the owner of the landlord's
interest in the Lease, even if said owner shall be different from the Landlord
named in the Recitals.
10. Duplicate Original; Counterparts. This Agreement may be executed in any
number of duplicate originals and each duplicate original shall be deemed to be
an original. This Agreement may be executed in several counterparts, each of
which counterparts shall be deemed an original instrument and all of which
together shall constitute a single Agreement.
11. Limitation of Trustee's Liability. (a) Trustee shall have no
obligations nor incur any liability with respect to any warranties of any nature
whatsoever, whether pursuant to the Lease or otherwise, including, without
limitation, any warranties respecting use, compliance with zoning, Landlord's
title, Landlord's authority, habitability, fitness for purpose or possession.
(b) In the event that Trustee shall acquire title to the Leased Premises or
the Property, Trustee shall have no obligation, nor incur any liability, beyond
Trustee's then equity interest, if any, in the Leased Premises, and Tenant shall
look exclusively to such equity interest of Trustee, if any, in the Leased
Premises for the payment and discharge of any obligations imposed upon Trustee
hereunder or under the Lease, and Trustee is hereby released and relieved of any
other obligations hereunder and under the Lease.
12. Modification in Writing. This Agreement may not be modified except by
an agreement in writing signed by the parties hereto or their respective
successors in interest.
13. Lien of Security Instruments. Nothing contained in this Agreement shall
in any way impair or affect the lien created by the Security Instruments or the
provisions thereof.
14. Compliance with Lease. Tenant agrees that in the event there is any
inconsistency between the terms and provisions hereof and the terms and
provisions of the Lease, the terms and provisions hereof shall be controlling.
15. Governing Law; Severability. This Agreement shall be governed by the
laws of the State of [ ]. If any term of this Agreement or the application
thereof to any person or circumstances shall to any extent be invalid or
unenforceable, the remainder of this Agreement or the application of such terms
to any person or circumstances other than those as to which it is invalid or
unenforceable shall not be affected thereby, and each term of this Agreement
shall be valid and enforceable to the fullest extent permitted by law.
16. Further Actions. Tenant agrees at its own expense to execute and
deliver, at any time and from time to time upon the request of Trustee or any
Acquiring Party, such documents and instruments (in recordable form, if
requested) as may be necessary or appropriate, in the opinion of Trustee or any
Acquiring Party, to fully implement or to further evidence the understandings
and agreements contained in this Agreement. Moreover, Tenant hereby irrevocably
appoints and constitutes Trustee or any Acquiring Party as its true and lawful
attorney-in-fact to execute and deliver any such documents or instruments which
may be necessary or appropriate, in the opinion of Trustee or any Acquiring
Party, to implement or further evidence such understandings and agreements and
which Tenant, after thirty (30) days' notice from Trustee or any Acquiring
Party, has failed to execute and deliver.
IN WITNESS WHEREOF, Trustee and Tenant have duly executed this Agreement as
of the date first above written.
_______________________________________,
as Trustee
By: ____________________________________
Name:
Title:
_______________________________________,
as Tenant
By: ____________________________________
Name:
Title:
The undersigned, as the Landlord named in the Recitals, having duly
executed this Agreement as of the date first written above, and as grantor,
pledgor, assignor or debtor under the Security Instruments, hereby accepts and
agrees for itself and its successors and assigns, (i) to be bound by the
provisions of Section 5 hereof, (ii) that nothing contained in the foregoing
Agreement (x) shall in any way be deemed to constitute a waiver by Trustee of
any of its rights or remedies under the Security Instruments or (y) shall in any
way be deemed to release Landlord from its obligations to comply with the terms,
provisions, conditions, covenants and agreements set forth in the Security
Instruments and (iii) that the provisions of the Security Instruments remain in
full force and effect and must be complied with by Landlord.
________________________________, a
________________________________
By: ____________________________________
Name:
Title:
ACKNOWLEDGMENT
State of _______________)
) ss.:
County of ______________)
[Local counsel to provide appropriate acknowledgment]