Brian D.
Cunningham, Esq.
15 West South
Temple, Suite 1200
Salt Lake City,
Utah 84101
Tax Parcel No.
______________________
LEASEHOLD DEED OF TRUST,
ASSIGNMENT OF RENTS,
SECURITY AGREEMENT AND FIXTURE
FILING
(Leased Property)
THIS DEED OF
TRUST SECURES A PROMISSORY NOTE, THE INTEREST RATE UNDER WHICH MAY
VARY FROM TIME TO TIME ACCORDING TO CHANGES IN THE PRIME RATE
ANNOUNCED BY BENEFICIARY OR ACCORDING TO CHANGES IN THE LONDON
INTERBANK OFFERED RATE, IN ACCORDANCE WITH THE CREDIT AGREEMENT
BETWEEN TRUSTOR AND BENEFICIARY.
THIS DEED OF
TRUST CONSTITUTES A SECURITY AGREEMENT, AND IS FILED AS A FIXTURE
FILING, WITH RESPECT TO ANY PORTION OF THE TRUST ESTATE IN WHICH A
PERSONAL PROPERTY SECURITY INTEREST OR LIEN MAY BE GRANTED OR
CREATED PURSUANT TO THE UTAH UNIFORM COMMERCIAL CODE OR UNDER
COMMON LAW, AND AS TO ALL REPLACEMENTS, SUBSTITUTIONS, AND
ADDITIONS TO SUCH PROPERTY AND THE PROCEEDS THEREOF. FOR
PURPOSES OF THE SECURITY INTEREST OR LIEN CREATED HEREBY,
BENEFICIARY IS THE “SECURED PARTY” AND TRUSTOR IS THE
“DEBTOR.” TRUSTOR IS THE OWNER OF THE PROPERTY
DESCRIBED HEREIN.
This LEASEHOLD DEED OF TRUST, ASSIGNMENT OF
RENTS, SECURITY AGREEMENT AND FIXTURE FILING (as it may be amended
and modified from time to time, the “ Deed of Trust
”) is made as of March 17, 2011, by and among UTAH MEDICAL
PRODUCTS, INC., a Utah corporation (“ Trustor
”), whose mailing address is 7043 South 300 West, Midvale,
Utah 84047, FIRST AMERICAN TITLE INSURANCE COMPANY (“
Trustee ”), whose mailing address is 201 South Main
Street, Suite 300, Salt Lake City, Utah 84111, and JPMORGAN CHASE
BANK, N.A., a national banking association (“
Beneficiary ”), whose mailing address is 201 South
Main Street, Suite 300, Salt Lake City, Utah 8411.
FOR GOOD AND VALUABLE CONSIDERATION, including
the indebtedness herein recited and the trust herein created, the
receipt of which is hereby acknowledged, Trustor hereby irrevocably
grants, transfers, conveys and assigns to Trustee, IN TRUST, WITH
POWER OF SALE, for the benefit and security of Beneficiary, under
and subject to the terms and conditions hereinafter set forth, all
of Trustor’s right, title and interest, whether fee,
leasehold or otherwise, in and to that certain real property
located in the County of Salt Lake County, State of Utah, more
particularly described in Exhibit A to this Deed of Trust
(the “ Property ”);
TOGETHER WITH all right, title, or interest of
Trustor in any and all buildings and other improvements now or
hereafter erected on the Property including, without limitation,
fixtures, attachments, appliances, equipment, machinery, and other
personal property attached to such buildings and other improvements
(collectively, the “ Improvements ”), all of
which shall be deemed and construed to be a part of the real
property;
TOGETHER WITH all right, title or interest of
Trustor in all rents, subrents, issues, profits, damages,
royalties, income and other benefits now or hereafter derived from
the Property and the Improvements (collectively, the “
Rents ”), subject to the terms and provisions of
Article 2 of this Deed of Trust with respect to all leases
and subleases of the Property or Improvements now or hereafter
existing or entered into, or portions thereof, granted by Trustor,
and further subject to the right, power and authority hereinafter
given to Trustor to collect and apply such Rents;
TOGETHER WITH all leasehold estate, right, title
and interest of Trustor in and to that certain Lease dated August
28, 1991 from Nobuzo Endo and Michiye Endo, as landlords, to
Trustor, as tenant (the “ Parking Lease ”), and
all other leases, or subleases covering the Property or the
Improvements or any portion thereof now or hereafter existing or
entered into, and all right, title and interest of Trustor
thereunder, including, without limitation, all rights of Trustor
against guarantors thereof, all cash or security deposits, advance
rentals, and deposits or payments of similar nature (collectively,
the “ Leases ”);
TOGETHER WITH all interests, estates or other
claims, both in law and in equity, which Trustor now has or may
hereafter acquire in the Property or the Improvements;
TOGETHER WITH all right, title or interest of
Trustor in all easements, rights-of-way and other rights now owned
or hereafter acquired by Trustor used in connection with the
Property or the Improvements, or as a means of access thereto
(including, without limitation, all rights pursuant to any trackage
agreement and all rights to the nonexclusive use of common drive
entries, and all tenements, hereditaments and appurtenances thereof
and thereto) and all water and water rights and shares of stock
evidencing the same;
TOGETHER WITH all right, title or interest of
Trustor now owned or hereafter acquired by Trustor in and to any
greater estate in the Property or the Improvements;
TOGETHER WITH all right, title, or interest of
Trustor now owned or hereafter acquired by Trustor in all licenses,
permits, approvals, or other authorizations (federal, state, and
local) used or useful in connection with or in any way relating to
the Property or Improvements, including any building permits
relating to the development of the Property and
Improvements;
TOGETHER WITH all right, title, and interest of
Trustor in (i) all other personal property now or hereafter owned
by Trustor that is now or hereafter located on or used in
connection with the Property or the Improvements, including,
without limitation, the property and interests in property
described on Exhibit B attached hereto, (ii) all other
rights and interests of Trustor now or hereafter held in personal
property that is now or hereafter located on or used in connection
with the Property or the Improvements, including, without limiting
the foregoing, all of Trustor’s present and future
“Accounts”, “Cash Proceeds”, “Chattel
Paper”, “Collateral”, “Deposit
Accounts”, “Electronic Chattel Paper”,
“Equipment”, “Fixtures”, General
Intangibles”, “Goods”, “Instruments”,
“Inventory”, “Investment Property”,
“Letter-of-credit Rights”, “Noncash
Proceeds”, and “Tangible Chattel Paper”, (as such
terms are defined in the Utah Uniform Commercial Code ,
U.C.A. §§ 70A-1-1 et seq. ), (iii) all personal
property and rights and interests in personal property of similar
type or kind hereafter acquired by Trustor, (iv) all present and
future right, title and interest of Trustor in and to all
inventory, equipment, fixtures and other goods, as those terms as
defined in Utah Uniform Commercial Code, and whether existing now
or in the future located at, upon or about, or affixed or attached
to or installed in, the Property or the Improvements, or used or to
be used in connection with tor otherwise relating to the Property
or the Improvements or the ownership, use, development,
construction, maintenance, management, operation, marketing,
leasing or occupancy of the Property or Improvements, including
furniture, furnishings, machinery, appliances, building materials
and supplies, generators, boilers, furnaces, water tanks, heating,
ventilating and air conditioning equipment and all other types of
tangible personal property of any kind or nature, and
all accessories, additions, attachments, parts, proceeds, products,
repairs, replacements and substitutions of or to any of such
property, (v) all of Trustor’s right, title and interest in
and to all deposit accounts maintained with Beneficiary or any
affiliate of Beneficiary and (vi) all appurtenances and additions
thereto and substitutions or replacements thereof (such personal
property, together with proceeds (as hereinafter provided), are
referred to herein collectively as the “ Personal
Property ”);
TOGETHER WITH all right, title, and interest of
Trustor, now owned or hereafter acquired, in and to any land lying
within the right-of-way of any street, open or proposed, adjoining
the Property, and any and all sidewalks, alleys, and strips and
gores of land adjacent to or used in connection with the
Property;
TOGETHER WITH all right, title or interest of
Trustor in all of the estate, interest, right, title, other claim,
or demand, both in law and in equity (including, without
limitation, claims or demands with respect to the proceeds of
insurance, indemnities, performance or redemption bonds, judgments,
awards of damages, and settlements with respect thereto) that
Trustor now has or may hereafter acquire in the Property, the
Improvements, the Personal Property, or any other part of the Trust
Estate (as defined below), and any and all awards made for the
taking by eminent domain, or by any proceeding or purchase in lieu
thereof, of the whole or any part of the Trust Estate (including,
without limitation, any awards resulting from a change of grade of
streets and awards for severance damages); and
TOGETHER WITH all right, title or interest of
Trustor in all accessions to, substitutions for, and replacements,
products, and proceeds of any of the foregoing, including, without
limitation, the conversion, voluntary or involuntary, into cash or
liquidated claims, of any of the foregoing.
The entire estate, property, right, title, and
interest hereby conveyed to Trustee may hereafter be collectively
referred to as the “ Trust Estate .”
TO HAVE AND TO HOLD the Trust Estate unto the
Trustee and Trustee’s successors, substitutes and assigns, IN
TRUST, however, upon the terms, provisions, and conditions herein
set forth.
FOR THE PURPOSE OF SECURING (in such order of
priority as Beneficiary may elect) the following (the “
Obligations ”):
(a) payment
of indebtedness of Trustor in the total principal amount of
FOURTEEN MILLION AND NO/100 DOLLARS ($14,000,000.00)
(the “ Loan ”), with interest thereon, evidenced
by that certain Secured Promissory Note of even date herewith
evidencing the Loan (as it may be amended, modified, extended, and
renewed from time to time, the “ Note
”), executed by Trustor, pursuant to that certain Credit
Agreement between Trustor and Beneficiary of even date herewith (as
it may be amended, modified, extended, and renewed from time to
time, the “ Loan Agreement ”) pursuant to which
Beneficiary may make advances of Loan proceeds from time to time
subject to the conditions and limitations therein. The
Loan Agreement contains a provision providing for a variable rate
of interest;
(b) payment
of all sums advanced by Beneficiary to protect the Trust Estate,
with interest thereon equal to the default interest rate set forth
in the Note and/or the Loan Agreement (which rate of
interest is hereinafter referred to as the “ Agreed
Rate ”);
(c) payment
of all other sums, with interest thereon, that may hereafter be
loaned to Trustor, or its successors or assigns, by Beneficiary, or
its successors or assigns when evidenced by a promissory note or
notes reciting that they are secured by this Deed of
Trust;
(d) performance
of every obligation of Trustor contained in the Loan Agreement and
other Loan Documents (as defined below);
(e) performance
of every obligation of Trustor contained in any agreement,
document, or instrument now or hereafter executed by Trustor
reciting that the obligations thereunder are secured by this Deed
of Trust;
(f)
for the benefit of
Beneficiary, compliance with and performance of each and every
provision of any declaration of covenants, conditions and
restrictions, any maintenance, easement and party wall agreement,
or any other agreement, document, or instrument by which the Trust
Estate is bound or may be affected;
(g) the
full and prompt payment and performance of any and all obligations
of Trustor, Femcare Group Limited or any other Loan Party arising
pursuant to the terms and conditions of the Parent Guaranty or the
UK Loan Documents
(h) all
Banking Services Obligations,
(i)
any and all obligations, contingent or otherwise,
whether now existing or hereafter arising, of Trustor to
Beneficiary or its Affiliates arising under or in connection with
Rate Management Transactions;
(j)
all modifications, extensions and renewals
of any of the obligations secured hereby, however evidenced,
including, without limitation: (i) modifications of the required
principal payment dates or interest payment dates or both, as the
case may be, deferring or accelerating payment dates wholly or
partly; or (ii) modifications extensions or renewals at a different
rate of interest whether or not, in the case of a note, the
modification, extension or renewal is evidenced by a new or
additional promissory note.
This Deed of
Trust, the Note, the Loan Agreement, and any other deeds of trust,
mortgages, security agreements, pledge agreements, guaranties or
other instruments given to evidence or further secure the payment
and performance of any or all of the Obligations, as the foregoing
may be amended, modified, extended, or renewed from time to time
may hereinafter be collectively referred to as the “ Loan
Documents .” Notwithstanding anything in this
Deed of Trust to the contrary, the term “Obligations”
does not include any obligations or liabilities under the
Environmental Indemnity (as defined in the Loan Agreement) and the
obligations and liabilities under the Environmental Indemnity are
not secured by this Deed of Trust. As used herein,
“ Rate Management Transaction ” means (i) any
transaction (including an agreement with respect thereto) now
existing or hereafter entered into between Trustor and JPMorgan
Chase Bank, N.A. and/or its affiliates which is a rate swap, swap
option, basis swap, forward rate transaction, commodity swap,
commodity option, equity or equity index swap, equity or equity
index option, bond option, interest rate option, foreign exchange
transaction, cap, floor, collar, currency swap, cross-currency rate
swap, currency option, credit protection transaction, credit swap,
credit default swap, credit default option, total return swap,
credit spread, repurchase transaction, reverse repurchase
transaction, buy/sell-back transaction, securities lending
transaction, weather index transaction or forward purchase or sale
of a security, commodity or other financial instrument or interest
(including an option with respect to any of these transactions), or
(ii) any type of transaction that is similar to any transaction
referred to in clause (i) above that is currently, or in the future
becomes, recurrently entered into in the financial markets and
which is a forward, swap, future, option or other derivative on one
or more rates, currencies, commodities, equity securities or other
equity instruments, debt securities or other debt instruments,
economic indices or measures of economic risk or value, or other
benchmarks against which payments or deliveries are to be made, or
any combination of the foregoing transactions.
The provisions
of this Deed of Trust supplement the provisions of any other real
estate mortgage or deed of trust, any pledge agreement with regard
to Equity Interests, and any other security agreement or similar
agreement creating a lien or security interest in property of
Trustor which are granted by Trustor to Beneficiary and which
secures the payment or performance of any of the Obligations.
Nothing contained in any such document shall derogate from any of
the rights or remedies of the Beneficiary hereunder.
TRUSTOR HEREBY COVENANTS AND AGREES AS
FOLLOWS:
ARTICLE 1
COVENANTS AND AGREEMENTS OF
TRUSTOR
1.1
Payment and Performance of Secured Obligations
. Trustor shall pay when due and/or perform each of the
Obligations.
1.2
Maintenance, Repair, Alterations . Trustor shall
keep the Trust Estate in good condition and
repair. Trustor shall not remove, demolish, or
substantially alter any of the Improvements, except with the prior
written consent of Beneficiary. Trustor shall complete
promptly and in a good and workmanlike manner any Improvement that
may be now or hereafter constructed on the Property and promptly
restore in like manner any Improvements that may be damaged or
destroyed from any cause whatsoever and pay when due all claims for
labor performed and materials furnished
therefor. Trustor shall comply with all Requirements (as
defined below) and shall not suffer to occur or exist any violation
of any Requirement. Trustor shall not commit or permit
any waste or deterioration of the Trust Estate, and, to the extent
allowed by law, shall keep and maintain abutting grounds,
sidewalks, roads, parking and landscape areas in good and neat
order and repair. Trustor shall perform its obligations
under each Lease. “ Requirement ” and “
Requirements ” mean, respectively, each and all
obligations and requirements now or hereafter in effect by which
Trustor or the Trust Estate are bound or which are otherwise
applicable to the Trust Estate, construction of any Improvements on
the Trust Estate, or operation, occupancy or use of the Trust
Estate (including, without limitation (a) such obligations and
requirements imposed by common law or any law, statute, ordinance,
regulation, or rule (federal, state, or local), and (b) such
obligations and requirements of, in, or in respect of (i) any
consent, authorization, license, permit, or approval relating to
the Trust Estate, (ii) any condition, covenant, restriction,
easement, or right-of-way reservation applicable to the Trust
Estate, (iii) any Lien or Encumbrance, (iv) any other agreement,
document, or instrument to which Trustor is a party or by which
Trustor or the Trust Estate is bound or affected, and (v) any
order, writ, judgment, injunction, decree, determination, or award
of any arbitrator, other private adjudicator, court, government, or
governmental authority (federal, state, or local) to which Trustor
is a party or by which Trustor or the Trust Estate is bound or
affected).
1.3
Required Insurance . Trustor shall at all times
provide, maintain and keep in force or cause to be provided,
maintained and kept in force with respect to the Trust Estate, at
no expense to Trustee or Beneficiary, policies of insurance in
forms and amounts and issued by companies reasonably satisfactory
to Beneficiary covering such casualties, risks, perils, liabilities
and other hazards as is required under the Loan
Agreement. All such policies of insurance required by
the terms of this Deed of Trust or the Loan Agreement shall contain
an endorsement or agreement by the insurer that any loss shall be
payable in accordance with the terms of such policy notwithstanding
any act or negligence of Trustor or any party holding under Trustor
that might otherwise result in forfeiture of said insurance and the
further agreement of the insurer waiving all rights of setoff,
counterclaim or deductions against Trustor.
1.4
Delivery of Policies, Payment of Premiums .
(a) At
Beneficiary’s option all policies of insurance shall either
have attached thereto a lender’s loss payable endorsement for
the benefit of Beneficiary in form satisfactory to Beneficiary or
shall name Beneficiary as an additional insured. Trustor
shall furnish Beneficiary with certificates of insurance for each
required policy setting forth the coverage, the limits of
liability, the name of the carrier, the policy number and the
period of coverage. If Beneficiary consents, Trustor may
provide any of the required insurance through blanket policies
carried by Trustor and covering more than one location, or by
policies procured by a tenant or other party holding under Trustor;
provided, however, all such policies shall meet the requirements
referred to in Section 1.3 . At least thirty
(30) days prior to the expiration of each required policy, Trustor
shall deliver to Beneficiary evidence reasonably satisfactory to
Beneficiary of the payment of premium and the renewal or
replacement of such policy continuing insurance in form as required
by this Deed of Trust. All such policies shall contain a
provision that, notwithstanding any contrary agreement between
Trustor and insurance company, such policies will not
be canceled, allowed to lapse without renewal,
surrendered or materially amended, which term shall include any
reduction in the scope or limits of coverage, without at least
thirty (30) days’ prior written notice to
Beneficiary.
(b) If
Trustor fails to obtain, maintain, or deliver to Beneficiary the
policies of insurance with respect to the Trust Estate required by
this Deed of Trust, Beneficiary may, at Beneficiary’s
election, but without any obligation so to do, procure such
insurance or single-interest insurance for such risks covering
Beneficiary’s interest, and Trustor will pay all premiums
thereon promptly upon demand by Beneficiary, and until such payment
is made by Trustor, the amount of all such premiums shall bear
interest at the Agreed Rate. Upon the occurrence and
during the continuation of an Event of Default and request by
Beneficiary, Trustor shall deposit with Beneficiary in monthly
installments, an amount equal to one-twelfth (1/12) of the
estimated aggregate annual insurance premiums on all policies of
insurance required by this Deed of Trust (funds deposited for this
purpose are referred to as “ Insurance Impounds
”). In such event Trustor further agrees to cause
all bills, statements, or other documents relating to the foregoing
insurance premiums to be sent or mailed directly to
Beneficiary. Upon receipt of such bills, statements, or
other documents evidencing that a premium for a required policy is
then payable, and provided there are sufficient Insurance Impounds,
Beneficiary shall timely pay such amounts as may be due thereunder
out of the Insurance Impounds. If at any time and for
any reason the Insurance Impounds are or will be insufficient to
pay such amounts as may be then or subsequently due, Beneficiary
shall notify Trustor and Trustor shall immediately deposit an
amount equal to such deficiency with
Beneficiary. Notwithstanding the foregoing, nothing
contained herein shall cause Beneficiary to be deemed a trustee of
Insurance Impounds or to be obligated to pay any amounts in excess
of the amount of the Insurance Impounds, nor shall anything
contained herein modify the obligation of Trustor set forth in
Section 1.3 to obtain and maintain
insurance. Beneficiary may commingle Insurance Impounds
with its own funds, and Trustor shall not be entitled to interest
thereon. Beneficiary may reserve for future payments of
premiums such portion of Insurance Impounds as Beneficiary in its
absolute and sole discretion deems proper. If Trustor
fails to deposit with Beneficiary sums sufficient to pay fully such
premiums at least thirty (30) days before delinquency thereof,
Beneficiary may, at Beneficiary’s election, but without any
obligation so to do, advance any amounts required to make up the
deficiency, which advances, if any, shall be secured hereby and
shall be repayable to Beneficiary upon demand with interest from
the date advanced at the Agreed Rate, or at the option of
Beneficiary the latter may, without making any advance whatever,
apply any Insurance Impounds to payment of the Obligations in such
order as Beneficiary may determine, notwithstanding that such
Obligations may not yet be due. Upon the occurrence of
an Event of Default, Beneficiary may, at any time, at
Beneficiary’s option, apply any Insurance Impounds or
Impositions Impounds under this Section 1.4 or
Section 1.8 , any funds paid as Rents, and any other
funds of Trustor held by Beneficiary to payment of any of the
Obligations, in such manner and order as Beneficiary may elect,
notwithstanding that such Obligations may not yet be
due.
1.5
Casualties; Insurance Proceeds.
(a) Trustor
shall give prompt written notice thereof to Beneficiary after the
happening of any casualty to or in connection with the Trust Estate
or any part thereof, whether or not covered by
insurance. All of Trustor’s rights to receive any
proceeds of insurance are hereby assigned to Beneficiary, and
Trustor hereby authorizes and directs any affected insurance
company to make payment of such proceeds directly to
Beneficiary. If Trustor receives any proceeds of
insurance resulting from such casualty, Trustor shall promptly pay
over such proceeds to Beneficiary. Except as provided in
Section 1.4 hereof, all proceeds of insurance will be
applied by Beneficiary to payment of the Obligations in such order
as Beneficiary shall determine.
(b) Trustor
shall not be excused from repairing or maintaining the Trust Estate
as provided in Section 1.2 hereof or restoring all damage or
destruction to the Trust Estate, regardless of whether or not there
are insurance proceeds available to Trustor or whether any such
proceeds are sufficient in amount, and the application or release
by Beneficiary of any insurance proceeds shall not cure or waive
any default or notice of default under this Deed of Trust or
invalidate any act done pursuant to such default or notice of
default.
1.6
Assignment of Policies Upon Foreclosure . In the
event of foreclosure of this Deed of Trust as a mortgage, a sale
under the power of sale, or any other transfer of title or
assignment of the Trust Estate in extinguishment, in whole or in
part, of the Obligations, all right, title and interest of Trustor
in and to all policies of insurance required by Section 1.3
shall inure to the benefit of and pass to the successor in interest
to Trustor or the purchaser or grantee of the Trust Estate, to the
extent such policies are assignable pursuant to the terms
thereof.
1.7
Indemnification; Subrogation; Waiver of Offset .
(a) If
Beneficiary is made a party to any litigation concerning the Note,
this Deed of Trust, any of the Loan Documents, the Trust Estate or
any part thereof or interest therein, or the occupancy of the Trust
Estate by Trustor, then Trustor shall indemnify, defend and hold
Beneficiary harmless for, from and against all liability by reason
of said litigation, including reasonable attorneys’ fees and
expenses incurred by Beneficiary as a result of any such
litigation, whether or not any such litigation is prosecuted to
judgment, excepting such matters arising solely from the gross
negligence or willful misconduct of the
Beneficiary. Beneficiary may employ an attorney or
attorneys to protect its rights hereunder, and in the event of such
employment following any breach by Trustor, Trustor shall pay
Beneficiary reasonable attorneys’ fees and expenses incurred
by Beneficiary, whether or not an action is actually commenced
against Trustor by reason of its breach.
(b) Trustor
waives any and all right to claim or recover against Beneficiary,
its successors and assigns, their directors, officers, employees,
agents and representatives, for loss of or damage to Trustor, the
Trust Estate, Trustor’s property or the property of others
under Trustor’s control from any cause insured against or
required to be insured against by this Deed of Trust.
(c) All
sums payable by Trustor pursuant to this Deed of Trust shall be
paid without notice (except for such notice as may be expressly
required hereunder or under the other Loan Documents), demand,
counterclaim, setoff, deduction or defense and without abatement,
suspension, deferment, diminution or reduction, and the obligations
and liabilities of Trustor hereunder shall in no way be released,
discharged or otherwise affected (except as expressly provided
herein) by reason of: (i) any damage to or destruction
of or any condemnation or similar taking of the Trust Estate or any
part thereof; (ii) any restriction or prevention of or interference
by any Person (as defined below) with any use of the Trust Estate
or any part thereof; (iii) any title defect or encumbrance or any
eviction from the Property or the Improvements or any part thereof
by title paramount or otherwise; (iv) any bankruptcy, insolvency,
reorganization, composition, adjustment, dissolution, liquidation
or other like proceeding relating to Beneficiary, or any action
taken with respect to this Deed of Trust by any trustee or receiver
of Beneficiary, or by any court, in any such proceeding; (v) any
claim that Trustor has or might have against Beneficiary; (vi) any
default or failure on the part of Beneficiary to perform or comply
with any of the terms of the Loan Documents or of any other
agreement with Trustor; or (vii) any other occurrence whatsoever,
whether similar or dissimilar to the foregoing; in each case,
whether or not Trustor shall have notice or knowledge of any of the
foregoing. Except as expressly provided herein, Trustor
waives all rights now or hereafter conferred by statute or
otherwise to any abatement, suspension, deferment, diminution or
reduction of any sum secured hereby and payable by
Trustor. “ Person ” means any natural
person, any unincorporated association, any corporation, any
partnership, any joint venture, limited liability company, limited
liability partnership, any trust, any other legal entity, or any
governmental authority (federal, state, local or
foreign).
(a) Trustor
shall pay, or cause to be paid, prior to delinquency, all real
property taxes and assessments, general and special, and all other
taxes and assessments of any kind or nature whatsoever, (including,
without limitation, non-governmental levies or assessments such as
maintenance charges, levies, or charges resulting from covenants,
conditions and restrictions affecting the Trust Estate) that are
assessed or imposed upon the Trust Estate or become due and payable
and that create, may create, or appear to create a lien upon the
Trust Estate (the above are sometimes referred to herein
individually as an “ Imposition ” and
collectively as “ Impositions ”), provided,
however, that if by law any Imposition is payable, or may at the
option of the taxpayer be paid, in installments, Trustor may pay
the same or cause it to be paid, together with any accrued interest
on the unpaid balance of such Imposition, in installments as the
same becomes due and before any fine, penalty, interest, or cost
may be added thereto for the nonpayment of any such installment and
interest.
(b) If
at any time after the date hereof there shall be assessed or
imposed a fee, tax, or assessment on Beneficiary which is measured
by or based in whole or in part upon this Deed of Trust or the
outstanding amount of the Obligations, then all such taxes,
assessments or fees shall be deemed to be included within the term
“Impositions” as defined in Section 1.8(a) and
Trustor shall pay and discharge the same as herein provided with
respect to the payment of Impositions. If Trustor fails
to pay such Impositions prior to delinquency, Beneficiary may, at
its option, declare all or part of the Obligations, immediately due
and payable. If Trustor is prohibited by law from paying
such Impositions, Beneficiary may, at its option, declare all or
part of the Obligations due and payable on a date which is not less
than six (6) months from the date such prohibition is imposed on
Trustor.
(c) Subject
to the provisions of Section 1.8(d) and upon request by
Beneficiary, Trustor shall deliver to Beneficiary within thirty
(30) days after the date upon which any Imposition is due and
payable by Trustor official receipts of the appropriate taxing
authority, or other proof satisfactory to Beneficiary, evidencing
the payment thereof.
(d) Trustor
shall have the right before any delinquency occurs to contest or
object to the amount or validity of any Imposition by appropriate
proceedings, but this shall not be deemed or construed in any way
as relieving, modifying, or extending Trustor’s covenant to
pay any such Imposition at the time and in the manner provided in
this Section 1.8 , unless Trustor has given prior
written notice to Beneficiary of Trustor’s intent to so
contest or object to an Imposition, and unless, in
Beneficiary’s absolute and sole discretion, (i) Trustor shall
demonstrate to Beneficiary’s satisfaction that the
proceedings to be initiated by Trustor shall conclusively operate
to prevent the sale of the Trust Estate or any part thereof or
interest therein to satisfy such Imposition prior to final
determination of such proceedings, (ii) Trustor shall furnish a
good and sufficient bond or surety as requested by and satisfactory
to Beneficiary, or (iii) Trustor shall demonstrate to
Beneficiary’s satisfaction that Trustor has provided a good
and sufficient undertaking as may be required or permitted by law
to accomplish a stay of any such sale.
(e) Upon
the occurrence and during the continuation of an Event of Default
and upon request by Beneficiary, Trustor shall pay to Beneficiary
an initial cash deposit in an amount adequate to pay all
Impositions for the ensuing tax fiscal year and shall thereafter
continue to deposit with Beneficiary, in monthly installments, an
amount equal to one-twelfth (1/12) of the sum of the annual
Impositions reasonably estimated by Beneficiary, for the purpose of
paying the installment of Impositions next due (funds deposited for
this purpose are referred to as “ Impositions Impounds
”). In such event, Trustor further agrees to cause
all bills, statements, or other documents relating to Impositions
to be sent or mailed directly to Beneficiary. Upon
receipt of such bills, statements, or other documents, and
providing there are sufficient Impositions Impounds, Beneficiary
shall timely pay such amounts as may be due thereunder out of the
Impositions Impounds. If at any time and for any reason
the Impositions Impounds are or will be insufficient to pay such
amounts as may then or subsequently be due, Beneficiary may notify
Trustor and upon such notice Trustor shall deposit immediately an
amount equal to such deficiency with
Beneficiary. Notwithstanding the foregoing, nothing
contained herein shall cause Beneficiary to be deemed a trustee of
Impositions Impounds or to be obligated to pay any amounts in
excess of the amount of funds deposited with Beneficiary pursuant
to this Section 1.8(e) Beneficiary may commingle
Impositions Impounds with its own funds and shall not be obligated
to pay any interest on any Impositions
Impounds. Beneficiary may reserve for future payment of
Impositions such portion of Impositions Impounds as Beneficiary may
in its absolute and sole discretion deem proper. If
Trustor fails to deposit with Beneficiary sums sufficient to fully
pay such Impositions at least thirty (30) days before delinquency
thereof, Beneficiary may, at Beneficiary’s election, but
without any obligation so to do, advance any amounts required to
make up the deficiency, which advances, if any, shall be secured
hereby and shall be repayable to Beneficiary upon demand together
with interest thereon at the Agreed Rate from the date of such
advance, or at the option of Beneficiary the latter may, without
making any advance whatever, apply any Impositions Impounds held by
it upon any of the Obligations in such order as Beneficiary may
determine, notwithstanding that such Obligations may not yet be
due.
(f) Trustor
shall not initiate or suffer to occur or exist the joint assessment
of any real and personal property included in the Trust Estate or
any other procedure whereby the lien of real property taxes and the
lien of personal property taxes shall be assessed, levied, or
charged to the Trust Estate as a single lien.
1.9
Utilities . Trustor shall pay when due all
charges that are incurred by Trustor for the benefit of the Trust
Estate or that may become a charge or lien against the Trust Estate
for gas, electricity, water, sewer, or other services furnished to
the Trust Estate.
1.10
Actions Affecting Trust Estate . Trustor shall
appear in and contest any action or proceeding purporting to affect
the security hereof or the rights or powers of Beneficiary or
Trustee; and shall pay all costs and expenses (including, without
limitation, costs of evidence of title, litigation, and
attorneys’ fees) in any such action or proceeding in which
Beneficiary or Trustee may appear.
1.11
Actions By Trustee or B

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